AGENDA
KINGSBURG CITY COUNCIL
REGULAR MEETING Council Chamber, 1401 Draper Street, Kingsburg, CA 93631 (559) 897-5821 www.cityofkingsburg-ca.gov
Wednesday, March 20, 2024 at 6pm
Invocation to be given by Pastor Mark Thompson, First Baptist Church, followed by the Pledge of Allegiance led by Mayor Pro Tem Vince Palomar.
6 P.M. REGULAR SESSION MEETING:
1. Call to Order and Roll Call
2. Approve Agenda: Action by the Council to approve the agenda or to make modifications. Items that can be added to the agenda is constrained by State law.
3. Presentations:
None
4. Public Comments: This is the time for any citizen to come forward and address the City Council on any issue within its jurisdiction that is not listed on the Agenda. A maximum of five (5) minutes is allowed for each speaker.
5. Consent Calendar: Items considered routine in nature are to be placed on the Consent Calendar.
They will be considered as one item and voted upon in one vote unless individual consideration is requested. Each vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Approval of the Consent Calendar items include recitals reading ordinance(s) by titles(s) only and adoption of recommended action(s) contained in Staff Reports.
5.1 Approval of City Council Minutes: Approve the minutes from the March 6, 2024 Regular Council Meeting as prepared by City Clerk Abigail Palsgaard.
Sponsor: City Clerk’s Office
5.2 Check Register: Ratify/approve payment of bills listed on the check register for the period February 27, 2024 through March 11, 2024 as prepared by Accounts Payable Clerk Marsha Alves.
Sponsor: Finance Department
City of Kingsburg
1401 Draper Street, Kingsburg, CA 93631-1908
Phone (559)897-5821 Fax (559)897-5568
Mayor Brandon Pursell, Jr.
Mayor Pro Tem Vince Palomar
Council Member Laura North
Council Member Staci Smith
Council Member David M. Silva
City Manager Alexander J. Henderson
Kingsburg City Council Agenda
March 20, 2024
5.3 Approve the Emergency Medical Services Agreement with Fresno County.- Staff report by Fire Chief Daniel Perkins
Sponsor: Fire Department
5.4 Adopt Resolution 2024-018 declaring Fire Engine 143 Surplus.- Staff report by Fire Chief Daniel Perkins
Sponsor: Fire Department
5.5 Approve sale of Fire Engine 143 to Laton Volunteer Fire Department.- Staff report by Fire Chief Daniel Perkins
Sponsor: Fire Department
5.6 Approve the Requested Closure of Ellis Street for the Youth Ministries Auction/Dinner on April 19, 2024.- Staff Report prepared by Community Services Director Adam Castaneda.
Sponsor: Community Services Department
5.7 Approve the Requested Closure of Smith Street for the VBS Block Party on August 1, 2024.- Staff Report prepared by Community Services Director Adam Castaneda.
Sponsor: Community Services Department
5.8 Approve the Requested Closure of Smith Street for the Costume Carnival on October 27, 2024.- Staff Report prepared by Community Services Director Adam Castaneda.
Sponsor: Community Services Department
5.9 Adopt Resolution 2024-019 authorizing submission of an application to the Fresno Council of Governments for funding under the Measure C Transit Oriented Development (TOD) Grant; the execution of a standard agreement if selected for such funding; and any related documents necessary to participate in the Fresno County Measure C Transit Oriented Development (TOD) Program.- Staff Report prepared by City Engineer Dave Peters
Sponsor: City Engineer’s Office
6. Regular Calendar
6.1 Solar Project Update – Wells 13 & 16, Police Department & Public Works Yard- Staff Report by Public Works Director Daniel Galvez Possible Action(s):
a. Presentation by Public Works Director Daniel Galvez
b. Public Comment
c. Council Discussion
d. Informational- No Action Needed.
6.2 Measure C - Golden State Boulevard Project Update- Staff Report by City Manager Alexander Henderson.
Sponsor: City Manager & Finance Department
Possible Action(s):
a. Presentation by City Manager Alexander Henderson.
Kingsburg City Council Agenda
March 20, 2024
b. Public Comment
c. Council Discussion
d. Informational- No Action Necessary
6.3 City CalPERS Update- Report by City Manager Alexander Henderson.
Sponsor: City Manager & Finance Department
Possible Action(s):
a. Presentation by City Manager Alexander Henderson.
b. Public Comment
c. Council Discussion
d. Informational- No Action Necessary
7. Council Reports and Staff Communications
7.1 Community Services Commission
7.2 Public Safety Committee
7.3 Chamber of Commerce
7.4 Economic Development
7.5 Finance Committee
7.6 Planning Commission
7.7 South Kings Groundwater Sustainability Agency Joint Powers Authority (SKGSA)
7.8 Downtown Business Improvement District
7.9 Council of Governments
7.10 Council Member Reports
7.11 City Manager’s Report
8. Future Agenda Items: None.
These items will be added to a future agenda with a motion from Council and majority voice vote.
9. Adjourn the Regular Kingsburg City Council Meeting into Closed Session:
9.1 CONFERENCE WITH LABOR NEGOTIATORS
California Government Code Section 54957.6
City Designated Representative: Alexander Henderson
Employee Organization: Public Service Employees Association (KPSEA) Employee Organization: Kingsburg Police Officer Association (KPOA) Employee Organization: Kingsburg Professional Firefighters Association (KPFA)
Employee Organization: Non-represented Employees
9.2 CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(d)(2); facts and circumstances potentially known under Section 54956.9(e)(2) – potential claims under ADA and FEHA
10. Adjourn out of Close Session into Regular Kingsburg City Council Meeting and report out of Closed Session.
11. Adjourn Regular Kingsburg City Council Meeting.
Kingsburg City Council Agenda
March 20, 2024
Any writings or documents provided to a majority of the Governing Body regarding any item on this agenda will be made available for public inspection at City Hall, in the City Clerk’s office, during normal business hours. In addition, such writings and documents may be posted on the City’s website at www.cityofkingsburg-ca.gov.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (559) 897-6520. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35 .102.35.104 ADA Title II].
Title VI of the Civil Rights Act of 1964 provides that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.
I hereby certify, under penalty of perjury under the laws of the State of California that the foregoing Agenda was posted at the front entrance of City Hall not less than 72 hours prior to the meeting. Dated this 1st day of March 2024.
____________________________________
Abigail Palsgaard, City Clerk
KINGSBURG CITY COUNCIL
REGULAR MEETING MINUTES
March 6, 2024
1401 Draper Street, Kingsburg, CA 93631
Invocation was given by Pastor Ricky Chambers, The Community Church, followed by the Pledge of Allegiance led by Mayor Pro Tem Vince Palomar.
Call to Order and Roll Call: Mayor Pro Tem Vince Palomar called the regular meeting of the Kingsburg City Council to order at 6:02 PM.
Council Members Present: David Silva, Staci Smith and Vince Palomar.
Council Member Absent: Laura North and Mayor Brandon Pursell Jr as previously approved by council on 11/15/2023.
Approve Agenda: A motion was made by Council Member Smith seconded by Council Member Silva, to approve the agenda, as published. The motion carried by an unanimous voice vote of those present.
Presentations:
Community Emergency Response Team (CERT) Member Swearing In By Fire Chief Daniel Perkins
Public Comments:
Carmen Santa Maria, a resident, asked to get a speed sign or a stop sign 14th Ave, between Tulare St and Ventura St.
Consent Calendar: A motion was made by Council Member David Silva, seconded by Council Member Staci Smith, to approve the items appearing on the Consent Calendar. The motion carried by an unanimous voice vote of those present.
5.1 Approval of City Council Minutes: Approve the minutes from the February 21, 2024, Regular Council Meeting as prepared by City Clerk Abigail Palsgaard.
Sponsor: City Clerk’s Office
5.2 Check Register: Ratify/approve payment of bills listed on the check register for the period February 13, 2024, through February 26, 2024, as prepared by Accounts Payable Clerk Marsha Alves.
Sponsor: Finance Department
5.3 Waive the second reading and adopt Ordinance No. 2024-001, An Ordinance Of The City Of Kingsburg Approving And Adopting the Kingsburg Police Department Military Equipment Use Policy 708 and pass the Ordinance to a second reading and adoption at the City Council with the following recital constituting reading the title of the Ordinance:
“An Ordinance Of The City Of Kingsburg Approving And Adopting the Kingsburg Police Department Military Equipment Use Policy 708.”– Staff report by Police Chief Neil Dadian
Sponsor: Police Department
5.4 Kingsburg Chamber of Commerce Annual Dinner Awards.
Kingsburg City Council Minutes
February 21, 2024
Sponsor: City Clerk’s Office
5.5 Adopt resolution No. 2024-017 which establishes compensation for Interim Fire Chief Mr. John Binaski in accordance with CalPERS regulations. – Staff report by Assistant City Manager/Admin. Services Director Christina Windover Sponsor: Assistant City Manager/Admin. Services Director’s Department
5.6 Award FY 23-24 Water Main Project Alternative 1 Bid Schedule B to RT Nelson Construction in the amount of $353,830. – Staff report by City Engineer Dave Peters Sponsor: City Engineer’s Office
Regular Calendar:
Drone Inspection Program Update – Staff report by Building Official AJ O’Connell Sponsor: Community Development Department
Building Official AJ O’Connell presented his staff report to the council members. He was able to entertain questions regarding his inspections using the drone. He also showed how the drone is used to assist in inspections.
FY2024 Capital Improvement Project Update and FY25 Introduction – Staff Report by City Manager Alexander Henderson
Sponsor: City Manager & Finance Department
City Manager Alexander Henderson presented his staff report to the council members and summarized the current improvement projects for 2023-2024.
Council Member Silva asked if there is a way to pivot the Air Pollution District Grant that we cannot use for the Police Department to Public Works. City Manager Henderson said that staff are working on possibly utilizing it for other departments that do need new work vehicles.
City Engineer Project Progress Report – Report by City Engineer Dave Peters Sponsor: City Engineer’s Office
City Engineer Dave Peters gave his progress report to the council members regarding the recent capital improvement projects. He was able to answer any questions that the council members had regarding the projects.
Council Reports and Staff Communications:
Community Services Commission – Have not met.
Public Safety Committee – Will meet in a couple of weeks.
Chamber of Commerce – Will meet next week.
Economic Development – Have not met.
Finance Committee – Have not met.
Planning Commission – Have not met.
Kingsburg City Council Minutes
February 21, 2024
South Kings Groundwater Sustainability Agency Joint Powers Authority (SKGSA) – They met in Sanger. One of the key takeaways is there is a mitigation measure that the state is attempting to impose when it comes to wells going dry within a GSA. The GSA then will have to remedy that.
There are still a lot of unknowns and still in their initial stage and keep an eye on it and will give reports.
Downtown Business Improvement District – Met last week, but Council Member North is absent to give a report.
Council of Governments - Council Member North is absent to give a report.
Council Member Reports – Mayor Pro Tem Palomar talked about how Kingsburg High Wrestling won two state medals. Council Member Silva wanted to welcome Interim Fire Chief John Binaski to his new role in the city.
City Manager’s Report – City Manager Henderson also mentioned that a formal introduction to Mr.
Binaski will take place in a future meeting and introduce him to the community. He also publicly thanked Fire Chief Perkins for the time he provided, and he appreciates his enthusiasm and leadership for leading that department and getting them into the spot where they are at. The other item that City Manager Henderson mentioned is the conversation he had with Housing Element consultants. We had initial direction from the HCD, the initial reviewer. The initial reviewer’s boss looked at it and has changed the formula as it relates to our housing numbers. Now we have to find a location for another 150ish units, which will prove relatively difficult with the type of vacant sites that we have available.
Future Agenda Items: None.
At 6:58 P. M. Mayor Pro Tem Palomar adjourned the meeting.
Submitted by:
____________________________________
Karyl Bartel, Community Development Admin. Assist.
Accounts Payable
User:
Printed:
marshaa
3/13/2024 4:23 PM
Checks by Date - Detail by Check Date
Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
ACH 4789 US BANKCORP SERVICE CENTER 03/01/2024
Colado2-16-2024 Grand Calif Hotel-City of Sanger Reimbursed 1,271.79 Colado2-16-2024 Staples-Finance Supplies 56.24
Colado2-16-2024 CSMFO- South San Joaquin Chapter Meeting 30.00 Colado2-16-2024 Staples-Finance Supplies 56.23
Colado2-16-2024 Grand Calif Hotel-CSMFO Jan. 29- Feb. 2, 2024 2,041.65 Colado2-16-2024 Grand Calif Hotel-CSMFO Jan. 29- Feb. 2, 2024 Credit -769.86 Colado2-16-2024 Amazon-Desktop Calculator- C. Windover 27.21 Colado2-16-2024 Grand Calif Hotel-Parking refund -117.00 Cstnda2-16-2024 Senior Center repairs/bathroom door locks 130.74 Cstnda2-16-2024 Senior Center Meal Supplies Amazon 77.42 Cstnda2-16-2024 Comm services vehicle fuel charge 35.89 Cstnda2-16-2024 FMAAA shortage -reimburse senior meals 47.95 Cstnda2-16-2024 FMAAA shortage-senior meals reimbursement 61.08 Cstnda2-16-2024 Senior Inc. Banners, Vista Print 89.49
Cstnda2-16-2024 Senior Center repairs/storage Home Depot 566.74 Hndrsn2-16-2024 ICMA Annual Dues 1,200.00
Hndrsn2-16-2024 Leadership Lunch- KFD 47.00
Hrndez2-16-2024 Costco-coffee/snacks- CERT training Stn 2 84.95 Hrndez2-16-2024 SaveMart-Pastry,hosted Kingsburg Task Force 45.74 Hrndez2-16-2024 Savemart-sodas(meetings/training)stn2 CVFCA 27.22 Hrndez2-16-2024 Career Source subscription - Ro 19.00
Hrndez2-16-2024 Savemart-sodas(meetings/training-CERT,Trench) Stn2 25.04 Hrndez2-16-2024 Subway-lunch foe CVFCA/dept-reimbursed 224.75 323.64 Owen2-16-2024 ICC- Membership-AJ 300.00
Owen2-16-2024 California Building Officials Membership-AJ 245.00 Owen2-16-2024 Janitorial Supplies 133.12
Owen2-16-2024 Amazon-Air Freshner 34.85
Owen2-16-2024 Janitorial Supplies 59.49
Owens 2-16-2024 Industrial scientific- screws for gas cylinders 32.24 Owens 2-16-2024 Hotel Booking- Hampton Inn: Sergio Paramedic skills test 134.88 Plsgrd2-16-2024 Refund-Ordinance 2023-002 Notice of Adoption 1/17/2024 -474.72 Plsgrd2-16-2024 Print Theory-Name Plaques for council 106.80 Plsgrd2-16-2024 International Institute of Municipal Clerks Memb 210.00 Plszaj2-16-2024 IACP membership (Salinas) 190.00
Plszaj2-16-2024 Ace Office- Partition Clips 15.08
Plszaj2-16-2024 WLLE 2024 Early Bird Registration x7 3,675.00 Plszaj2-16-2024 SIRCHIE-syringe collection tubes/12 each x2 80.52 Plszaj2-16-2024 Ballistic Helmet (Ramirez) 1,654.18
Plszaj2-16-2024 TLO Training Hotel (Gong) 120.11
Plszaj2-16-2024 ICI sexual assault training Hotel (Villanueva) 1,060.60 Prkins2-16-2024 Tom's Donuts-CVFCA meeting 36.75
Prkins2-16-2024 Paypal- subscription CPR (booking/payments) 25.10 Prkins2-16-2024 Dropbox Annual- renewal/canceled 2/21/24 119.88 Wndver2-16-2024 Ease Enrollment 468.00
Wndver2-16-2024 ID Creator-ID and Badge Holders 44.99
Wndver2-16-2024 SaveMart- Lifeguard Interviews 44.82
Wndver2-16-2024 Print Theory-Lanyards 561.22
AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 1 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for this ACH Check for Vendor 4789: 14,256.07
85185 4910 ADVENTIST HEALTH TULARE 03/01/2024
2144 Specimen Collection Tox Lab 45.00
2144 Coca confirmation Blood Tox Lab 93.00
2144 Amphetamines Blood Tox Lab 93.00
2144 Cannabinoids confirmation Blood Tox Lab 93.00
2144 Drug Screen Blood Tox 85.00
2144 Alcohol Blood Tox Lab 55.00
Total for Check Number 85185: 464.00
85186 3006 AIRGAS NCN 03/01/2024
9146882 Oxygen 2/9/24 125.60
9146983516 Oxygen 2/14/24 204.54
Total for Check Number 85186: 330.14
85187 4730 ALL HAZARD EHS, INC 03/01/2024
2414 INV#2414- City hall Viable and Non Viable Sampling 4,400.00 Total for Check Number 85187: 4,400.00
85188 3565 AMAZON CAPITAL SERVICES 03/01/2024
13JY-7TJN-YXGT TRASH BAGS,DISH SOAP,DEPT SUPPLIES 291.19 13YD-6K7M-MYYX DEPT SUPPLIES DAYROOM 176.37
14LY-QKJF-F13W BATHROOM CLEANER,SHOWER HOOKS 29.16
161G-PMCD-WJFV FIRE PREVENTION/DICTIONARY'S 54.00
1CDF-61JW-6YFX EXT CORD,HEAT SHRINKING TUBING 36.46
1GFP-CRR3-71TK HEAT SHRINKING TUBING CABLE 10.89
1NW7-YRPT-GQQN BATTERIES FOR SMOKE DETECTORS 36.63
1QFN-73C7-WK6H SHOWER LINERS/LIVING QUARTERS 38.01
1QPC-HW9D-X3QW SAW BLADES 106.26
1X1H-KCVV-G6J3 PAPER FOR VISA MACHINE,NOTEBOOKS 50.68
IPWW-DYLF-Q1NX MOUSE PAD, DEPT SUPPLIES 308.79
Total for Check Number 85188: 1,138.44
85189 4545 AMAZON.COM SALES, INC. 03/01/2024
14WY KPRJ CXMV Surefire LED Flashlights (Meza/Esquibel) 170.88 1QKR-917D-LV4F Evidence Room Signage (Zimmerman) 26.14
Total for Check Number 85189: 197.02
85190 3858 ASSOCIATED COMPRESSOR EQUIP. 03/01/2024
166748 Reciprocating Compressor 490.47
Total for Check Number 85190: 490.47
85191 3029 AT&T CALNET 3 03/01/2024
21199236 Fresno County Line 524.72
Total for Check Number 85191: 524.72
85192 4875 BOUND TREE MEDICAL LLC 03/01/2024
85252333 Medical Supplies 2/15/24 82.81
85257914 Medical Supplies 2/21/24 122.89
Total for Check Number 85192: 205.70
85193 3054 BSK ASSOCIATES 03/01/2024
AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 2 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
AH03962 Well Treatment Bact 2/13/2024 114.00
AH03974 Well Treatment Bact 2/13/2024 171.00
Total for Check Number 85193: 285.00
85194 4952 CAL-OSHA PENALTIES 03/01/2024
April 1, 2024 City of Kingsburg Citation #1647073 Payment #2 1,350.00 Total for Check Number 85194: 1,350.00
85195 4429 CANON FINANCIAL SERVICES, INC 03/01/2024
3208314 Canon Copier fire admin 87.51
3208314 Monthly + Overage (Feb) 152.26
Total for Check Number 85195: 239.77
85196 3831 ADAM CASTANEDA 03/01/2024
March 2024 Cell Phone Reimb. March 2024 75.00
Total for Check Number 85196: 75.00
85197 3551 CENTRAL VALLEY TOXICOLOGY 03/01/2024
332454 Ethyl alcohol case #22-2185 242.00
332607 Ethyl alcohol case #23-1260 300.00
Total for Check Number 85197: 542.00
85198 3918 CINTAS 03/01/2024
Feb 2024 Uniforms-MC-Public Works 2/1/24-2/29/24 629.34 Feb 2024 Uniforms-MC-Public Works 2/1/24-2/29/24 98.96
Feb 2024 Uniforms-MC-Public Works 2/1/24-2/29/24 457.87 Feb 2024 Uniforms-MC-Public Works 2/1/24-2/29/24 134.84 Feb 2024 Uniforms-MC-Public Works 2/1/24-2/29/24 137.49 Total for Check Number 85198: 1,458.50
85199 3822 ALMA COLADO 03/01/2024
March 2024 Cell Phone Reimb. March 2024 75.00
Total for Check Number 85199: 75.00
85200 3146 DINUBA FIRE 03/01/2024
28 2/20/2024 Invoice 28 23/24 FireMed Enrollment (mailers, brochure 4,857.31 Total for Check Number 85200: 4,857.31
85201 3152 E C N POLYGRAPH & INVEST 03/01/2024
KINGPD-FEB-2024 Pre-Employment Polygraph Police Officer (Meza) 250.00 KINGPD-FEB-2024 Pre-Employment Polygraph Police Officer (Esquibel) 250.00 Total for Check Number 85201: 500.00
85202 4615 EMERALD TEXTILES SERVICES 03/01/2024
EFRE-00129287 Laundry Services 2/1/24-2/10/24 473.44
EFRE-00130926 Laundry Services 2/11/24-2/17/24 216.29
Total for Check Number 85202: 689.73
85203 3158 ENER POWER 03/01/2024
73080 Electrict Energy Charges for 12/27/23-1/25/24 7543447613 305.00 73081 Electrict Energy Charges for 12/27/23-1/25/24 7543447336 165.00 73082 Electrict Energy Charges for 12/27/23-1/25/24 7547167697 899.00 AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 3 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for Check Number 85203: 1,369.00
85204 4958 FRESNO COUNTY RURAL TRANSIT AGENCY 03/01/2024 109 One way bus pass to Fresno 25.00
Total for Check Number 85204: 25.00
85205 3188 FRESNO COUNTY SHERIFF 03/01/2024
SO21381 Crime scene assist (44 hrs) 3,219.48
SO21381 Other Agency Assist/Case 23-1260 311.96
Total for Check Number 85205: 3,531.44
85206 3747 C/O JOE GARZA FRESNO MADERA CO. POLICE CHIEF'S ASSOC. 03/01/2024 1061 Chief Dadian membership dues for Chief's Association 350.00 Total for Check Number 85206: 350.00
85207 3206 GLACIER REFRIGERATION AND AIR 03/01/2024
54964 Ice Machine service: clean,sanitiize&water filter 861.34 Total for Check Number 85207: 861.34
85208 4492 MONIQUE GONZALES 03/01/2024
3182024 Per Diem- Arrest and Control Intsr 3/17-3/20 258.75 Total for Check Number 85208: 258.75
85209 4433 SERGIO GONZALES 03/01/2024
reimbursement Reimbursement for Paramedic Skills testing 380.00 Total for Check Number 85209: 380.00
85210 3994 GUARDIAN 03/01/2024
3/1-3/31/2024 Monthly Ins. Premium-3/2024 Life- Employee 209.35 3/1-3/31/2024 Monthly Ins. Premium-3/2024 Vol Ins Plans 1,479.63 3/1-3/31/2024 Monthly Ins. Premium-3/2024 Ameritas-Dental 6,273.24 3/1-3/31/2024 Monthly Ins. Premium-3/2024 VSP Vision 1,035.47 3/1-3/31/2024 Monthly Ins. Premium-3/2024 Vol Life Ins. 1,464.87 Total for Check Number 85210: 10,462.56
85211 4472 MIGUEL GUZMAN 03/01/2024
3182024 Per Diem- Arrest and Control 3/17-3/20 258.75
Total for Check Number 85211: 258.75
85212 3222 HENRY SCHEIN, INC. 03/01/2024
74719619 Medical Supplies 2/21/24 970.91
Total for Check Number 85212: 970.91
85213 3999 IRON MOUNTAIN 03/01/2024
JGWN898 Shred Services 1/24/24-2/20/24 101.85
Total for Check Number 85213: 101.85
85214 3983 JIM CRAWFORD CONSTRUCTION 03/01/2024
02/23/2024 Hydrant Meter Refund #160322 less water usage and meter fees 1,658.31 02/23/2024 #2 Hydrant Meter Refund #19470766 less water usage and meter fees 1,632.09 AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 4 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for Check Number 85214: 3,290.40
85215 4826 CHRISTIAN JIMENEZ 03/01/2024
3182024 Per Diem - Arrest and Control Instr 3/17-3/20 258.75 Total for Check Number 85215: 258.75
85216 3329 JOLENE POLYACK MARKETING 03/01/2024
3262 Econ Dev Feb 2024 3,300.00
Total for Check Number 85216: 3,300.00
85217 3887 KINGS INDUSTRIAL OCC. MED CTR., INC. 03/01/2024 221292 Employment Physical-B. Ralls 180.93
221292 Employment Physical-L. Vasquez 36.00
222265 Employment Physical-J. Salinas 552.00
222265 Employment Physical-J. Lomeli 310.00
222265 Employment Physical-B. Ralls 617.00
222265 Employment Physical-A. Salinas 797.93
Total for Check Number 85217: 2,493.86
85218 3686 KINGSBURG AUTO CARE 03/01/2024
18001 Install new battery PD #2035 458.00
Total for Check Number 85218: 458.00
85219 3253 KINGSBURG CHAMBER OF COMMERCE03/01/2024
March 2024 Monthly Budget Allowance March 2024 2,500.00 Total for Check Number 85219: 2,500.00
85220 3625 KINGSBURG MEDIA FOUNDATION 03/01/2024
CWM11033 870 EVO SSD w 5 year warranty. 65.39
Total for Check Number 85220: 65.39
85221 3266 BRENT KROEGER 03/01/2024
3042024 Per Diem - DOJ Tabacco Enforcement Training 129.50 Total for Check Number 85221: 129.50
85222 3269 LAW & ASSOCIATES INVESTIGATION 03/01/2024
24-032 Background Investigation (Salinas) 700.00
Total for Check Number 85222: 700.00
85223 3271 LEAGUE OF CALIFORNIA CITIES 03/01/2024
02/15/2024 General Membership Meeting- D. Silva 25.00
02/15/2024 General Membership Meeting- V. Palomar 25.00 8085 South San Joaquin Valley Division Membership Dues 2024 168.55 Total for Check Number 85223: 218.55
85224 3275 LIEBERT, CASSIDY, WHITMORE 03/01/2024
261034 LCW General Legal Jan 2024 3,952.00
Total for Check Number 85224: 3,952.00
85225 3276 LIFE ASSIST INC 03/01/2024
1407227 Medical Supplies 2/15/24 132.56
AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 5 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for Check Number 85225: 132.56
85226 3277 LINCOLN AQUATICS 03/01/2024
Q2026160 Pool Chlorine 2/6/2024 915.71
Total for Check Number 85226: 915.71
85227 4957 BRANDON LUM 03/01/2024
reimbursement Reimbursement for EMT Recertification 82.00 Total for Check Number 85227: 82.00
85228 4329 MCI COMM SERVICES 03/01/2024
Feb 2024 Acct. #7DL61514 Fax Long Distance Feb 2024 35.37 Total for Check Number 85228: 35.37
85229 3997 MID VALLEY DISPOSAL RECYCLING & TRANSFER STATION 03/01/2024 2873477 Street Sweeping REfuse 2/13/24-2/14/24 1,754.50 Total for Check Number 85229: 1,754.50
85230 3466 NAPA AUTO PARTS 03/01/2024
660121 2 Stroke Mix PW 32.63
660515 Motor Oil PW 47.67
Total for Check Number 85230: 80.30
85231 4849 NAPA AUTO PARTS 03/01/2024
1185-871367 Panel Filter/Ambulance Overstock 65.69
Total for Check Number 85231: 65.69
85232 3307 NELSON'S ACE HARDWARE-SELMA 03/01/2024
145787 Drain Cleaner 23.52
2/25/2024 Hardware Supplies Feb 2024 173.62
2/25/2024 Hardware Supplies Feb 2024 83.14
2/25/2024 Hardware Supplies Feb 2024 63.23
2/25/2024 Hardware Supplies Feb 2024 122.31
2/25/2024 Hardware Supplies Feb 2024 39.03
2/25/2024 Hardware Supplies Feb 2024 72.77
2/25/2024 Hardware Supplies Feb 2024 26.09
2/25/2024 Hardware Supplies Feb 2024 16.50
2/25/2024 Hardware Supplies Feb 2024 71.20
Total for Check Number 85232: 691.41
85233 3312 O'REILLY AUTO PARTS 03/01/2024
4445448455 Wiper & Cabin Filter PD 2039 54.69
4445-452006 Wiper Blades 116.76
Total for Check Number 85233: 171.45
85234 3611 HOLLY OWEN 03/01/2024
March 2024 Cell Phone Reimb. March 2024 75.00
Total for Check Number 85234: 75.00
85235 3315 P G & E 03/01/2024
02/14/2024 Electricity 01/07/2024-02/14/2024 #2493668675-7 31.31 02/14/2024 Electricity 01/07/2024-02/14/2024 #2493668675-7 31.32 AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 6 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
02/14/2024 #2 Electricity 01/07/2024-02/14/2024 #2493668675-7 5,941.03 02/14/2024 #2 Electricity 01/07/2024-02/14/2024 #7502184272-1 5,941.03 Total for Check Number 85235: 11,944.69
85236 3450 ABIGAIL PALSGAARD 03/01/2024
March 2024 Cell Phone Reimb. March 2024 75.00
Total for Check Number 85236: 75.00
85237 3321 PETERS ENGINEERING GROUP 03/01/2024
11238 Mariposa St CDBG Project 22391 14,340.00
Total for Check Number 85237: 14,340.00
85238 3327 PITNEY BOWES GLOBAL FINANCIAL SVC'S. LLC 03/01/2024 310654114 Lease Agreement-12-30-3/29/24 222.40
Total for Check Number 85238: 222.40
85239 4706 POWER DMS, INC. 03/01/2024
46878 PlanIt Fire 1 year subscription 1/2 FIRE 3/1/24-2/28/25 1,291.88 46878 PlanIt Fire 1 year subscription 1/2 EMS 3/1/24-2/28/25 1,291.87 Total for Check Number 85239: 2,583.75
85240 3333 PRICE PAIGE&COMPANY, CERTIFIED PUBLIC ACCOUNTANT 03/01/2024 32566 Audit Work in Progress FY ending June 30,2023 1,694.00 32566 Audit Work in Progress FY ending June 30,2023 1,331.00 32566 Audit Work in Progress FY ending June 30,2023 3,025.00 Total for Check Number 85240: 6,050.00
85241 4667 DARIUSS RODRIGUEZ 03/01/2024
reimbursement Reimbursement for Instructor 3 class Feb 12-16/24 425.00 Total for Check Number 85241: 425.00
85242 3903 SHADOW LOCKSMITH 03/01/2024
003355 Department Keys made (41) Master pinning (28) 2,217.50 3361 Pick open Safe (Warrant 24-0000236) 120.00
Total for Check Number 85242: 2,337.50
85243 3369 SILVAS OIL COMPANY, INC. 03/01/2024
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 38.47
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 38.47
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 126.82
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 266.36
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 127.31
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 82.20
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 157.15
190077CT PW & CH Gas Card Chrgs 2/1/24-2/15/24 511.45
190078CT SRO HS Fuel 150.25
190078CT SRO ELEM Fuel 150.62
190078CT GF Fuel 1,597.95
190078CT Act Fuel 291.20
190078CT ME Fuel 1,210.25
190079CT Measure E Fuel 651.56
190079CT Fire Fuel 651.55
190079CT Ambulance Fuel 651.56
AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 7 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for Check Number 85243: 6,703.17
85244 4887 SOCIAL VOCATIONAL SERVICES INC. 03/01/2024
46A2403-IN Landscape Services 899.55
46A2403-IN Landscape Services-HASH 900.00
Total for Check Number 85244: 1,799.55
85245 3441 TCSO JAIL INDUSTRIES ENGRAVING PROG. 03/01/2024 20372 Engraving-Retirement Plaque (Pendley) 77.04
Total for Check Number 85245: 77.04
85246 4334 TELSTAR 03/01/2024
120235 SCADA- Downtown Com 330.00
Total for Check Number 85246: 330.00
85247 4631 JAD TURNER 03/01/2024
02/16/2024 Replace lost uniform allowance check #21006 137.02 Total for Check Number 85247: 137.02
85248 3416 VERIZONWIRELESS 03/01/2024
9956761975 Cellular Svc. 1-16-2/15/2024 52.14
9956761975 Cellular Svc. 1-16-2/15/2024 24.69
9956761975 Cellular Svc. 1-16-2/15/2024 20.42
9956761975 Cellular Svc. 1-16-2/15/2024 95.31
9956761975 Cellular Svc. 1-16-2/15/2024 104.65
9956761975 Cellular Svc. 1-16-2/15/2024 23.78
9956761975 Cellular Svc. 1-16-2/15/2024 78.07
9956761975 Cellular Svc. 1-16-2/15/2024 20.78
9956761975 Cellular Svc. 1-16-2/15/2024 61.79
9956761976 Wireless bill for Fire/Ambulance 1/16-2/15 1,072.27 Total for Check Number 85248: 1,553.90
85249 3419 VIKING CLEANING SERVICE 03/01/2024
March 2024 Janitorial Services March 2024 3,641.40
Total for Check Number 85249: 3,641.40
85250 3493 VILLAGE TIRE SALES INC 03/01/2024
19386 Tire Repair FD #503 30.00
19414 Tire Balance FD #C-140 34.00
19497 Front Suspension Pw #741 713.12
19615 Tire Repair on PD #2035 25.00
19678 Tire Repair PW #741 25.00
19823 Tire Repair PD #2216 25.00
19871 2 tires, front suspension, brakes 1,151.38
Total for Check Number 85250: 2,003.50
85251 3421 VINCENT COMMUNICATIONS, INC. 03/01/2024
87342 Repair BK mobile radios/unit C140 371.71
87781 Inv 87781 2/12/2024 8 BKR 9000 radios, all band antennas, batter 15,706.67 87782 Color Display TFT Replacement/Tech Labor 266.39
87784 Connector SMA Jack/Tech Labor 221.04
87810 Inv 87810 2/15/24 8 heavy duty speaker MIC's 2,496.67 AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 8 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for Check Number 85251: 19,062.48
85252 3975 WIGH PROPERTIES 03/01/2024
02/22/2024 Facade Grant: Lejon 1525 Draper St. 5,000.00 Total for Check Number 85252: 5,000.00
85253 3448 CHRISTINA WINDOVER 03/01/2024
02/15/2024 LCW Legal Update Conference Per Diem 197.50
March 2024 Cell Phone Reimb. March 2024 75.00
Total for Check Number 85253: 272.50
85254 3430 BETTY WONG, 03/01/2024
March 2024 Wong Bldg. Leases March 2024 2,600.00
Total for Check Number 85254: 2,600.00
85255 4468 FER YANG 03/01/2024
02/16/2024 Educational Assistance Program Reimb 599.00
reimbursement Reimbursement for EMT Recertification 82.00 Total for Check Number 85255: 681.00
Total for 3/1/2024: 153,858.81
ACH 3231 ICMA RETIREMENT CORP - WIRE 457 03/08/2024
PR Batch 00001.03.2024 457 Mission Square PR Batch 00001.03.2024 457 Mission Square 2,504.94 Total for this ACH Check for Vendor 3231: 2,504.94
ACH 3470 Internal Revenue Service - ACH 03/08/2024
PR Batch 00001.03.2024 Medicare Employee Portion PR Batch 00001.03.2024 Medicare Employee Portion 4,003.68 PR Batch 00001.03.2024 FICA Employer Portion PR Batch 00001.03.2024 FICA Employer Portion 17,119.15 PR Batch 00001.03.2024 Federal Income Tax PR Batch 00001.03.2024 Federal Income Tax 23,039.13 PR Batch 00001.03.2024 Medicare Employer Portion PR Batch 00001.03.2024 Medicare Employer Portion 4,003.68 PR Batch 00001.03.2024 FICA Employee Portion PR Batch 00001.03.2024 FICA Employee Portion 17,119.15 Total for this ACH Check for Vendor 3470: 65,284.79
ACH 3471 Employment Development Department - ACH03/08/2024 PR Batch 00001.03.2024 State Income Tax PR Batch 00001.03.2024 State Income Tax 9,533.49 PR Batch 00001.03.2024 CA SDI PR Batch 00001.03.2024 CA SDI 2,686.98 Total for this ACH Check for Vendor 3471: 12,220.47
ACH 3472 CalPERS - ACH 03/08/2024
PR Batch 00001.03.2024 PERS Misc. Classic ER PR Batch 00001.03.2024 PERS Misc. Classic ER 4,703.02 PR Batch 00001.03.2024 PERS Safety Police PEPRPR Batch 00001.03.2024 PERS Safety Police PEPR A ER A ER 8,214.77 PR Batch 00001.03.2024 PERS Misc. PEPRA ER PR Batch 00001.03.2024 PERS Misc. PEPRA ER 4,879.54 PR Batch 00001.03.2024 PERS Safety Fire PEPRAPR Batch 00001.03.2024 PERS Safety Fire PEPRA 5,537.90 PR Batch 00001.03.2024 PERS Safety Police ER PR Batch 00001.03.2024 PERS Safety Police ER 3,482.44 PR Batch 00001.03.2024 PERS Safety Police PEPRAPR Batch 00001.03.2024 PERS Safety Police PEPRA 8,762.60 PR Batch 00001.03.2024 PERS Safety Fire -ClassicPR Batch 00001.03.2024 PERS Safety Fire -Classic 1,168.30 PR Batch 00001.03.2024 PERS Misc. Classic PR Batch 00001.03.2024 PERS Misc. Classic 2,728.80 PR Batch 00001.03.2024 PERS Safety Police PR Batch 00001.03.2024 PERS Safety Police 1,350.68 PR Batch 00001.03.2024 PERS Safety Fire PEPRA ER PR Batch 00001.03.2024 PERS Safety Fire PEPRA ER 5,867.34 PR Batch 00001.03.2024 PERS Safety Fire ER PR Batch 00001.03.2024 PERS Safety Fire ER 3,019.79 PR Batch 00001.03.2024 PERS Misc. PEPRA PR Batch 00001.03.2024 PERS Misc. PEPRA 4,923.99 AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 9 Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
Total for this ACH Check for Vendor 3472: 54,639.17
ACH 3475 Empower 03/08/2024
PR Batch 00001.03.2024 457 Plan-Empower PR Batch 00001.03.2024 457 Plan-Empower 3,463.07 PR Batch 00001.03.2024 457 Percent-Empower PR Batch 00001.03.2024 457 Percent-Empower 64.37 Total for this ACH Check for Vendor 3475: 3,527.44
ACH 3476 CHILD SUPPORT STATE DISBURSEMENT UNIT - ACH 03/08/2024 PR Batch 00001.03.2024 Child Support PR Batch 00001.03.2024 Child Support 240.46 Total for this ACH Check for Vendor 3476: 240.46
ACH 3526 Public Employees Retirement System 457 Plan-Deferred Comp - ACH 03/08/2024 PR Batch 00001.03.2024 CalPERS 457 Percent PR Batch 00001.03.2024 CalPERS 457 Percent 327.55 PR Batch 00001.03.2024 CalPERS 457 Plan PR Batch 00001.03.2024 CalPERS 457 Plan 50.00 Total for this ACH Check for Vendor 3526: 377.55
ACH 4707 ICMA-WIRE 401(A) 03/08/2024
PR Batch 00001.03.2024 Def Comp 401(a) ICMAPR Batch 00001.03.2024 Def Comp 401(a) ICMA 250.00 Total for this ACH Check for Vendor 4707: 250.00
85256 4960 FRESNO LOCAL AGENCY FORMATION COMMISSION 03/08/2024 3/6/2024 Matoian Annexation Processing Fee 7,200.00
Total for Check Number 85256: 7,200.00
85257 3660 KPFA 03/08/2024
PR Batch 00001.03.2024 Professional Firefighters Asc. PR Batch 00001.03.2024 Professional Firefighters Asc. 640.00 Total for Check Number 85257: 640.00
85258 3525 Kingsburg Police KPOA 03/08/2024
PR Batch 00001.03.2024 KPOA Union Dues PR Batch 00001.03.2024 KPOA Union Dues 1,110.00 Total for Check Number 85258: 1,110.00
Total for 3/8/2024: 147,994.82
Report Total (83 checks): 301,853.63
AP Checks by Date - Detail by Check Date (3/13/2024 4:23 PM) Page 10
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Brandon Pursell, Jr. & City Council
REPORT FROM: Daniel Perkins, Fire Chief REVIEWED BY: AJH AGENDA ITEM: Fire Department Emergency Medical Services Agreement with Fresno County.
ACTION REQUESTED: ___Ordinance ____Resolution √ Motion ______Receive/File
EXECUTIVE SUMMARY
This is a standard and customary agreement between the City of Kingsburg Fire Department and the County of Fresno Emergency Medical Authority that is executed every 5 years. It specifically defines the areas of service by geographical boundary, length of contract and all contract issues that deal with specific hours of operation, response times, certification levels of providers, availability of records of response and responsibility of providers to provide indemnity insurances to specific minimum amounts for vehicles as well as personnel. Additionally, the agreement specifies staffing of ambulances, communication functions, reserve unit availability as well as fees that are paid by the County to the Contract agency to off -set indigent patients - a total of $6,000 per year throughout the contract.
RECOMMENDED ACTION BY CITY COUNCIL
1. Approve the Emergency Medical Services Agreement with Fresno County.
POLICY ALTERNATIVE(S)
1. Council could choose to not support the proposed agreement; however, this would halt all ability for the Fire Department to continue transporting until an alternate agreement was agreed upon.
REASON FOR RECOMMENDATION/KEY METRIC
1. Community Safety.
FINANCIAL INFORMATION
FINANCIAL SUMMARY
Positive Financial Impact
PRIOR ACTION/REVIEW
These agreements have been in place for more than 25 years and are renewed every 5 years.
BACKGROUND INFORMATION
These agreements are usual and customary throughout the Fire and Emergency Services.
Meeting Date: 03/20/2024
Agenda Item: 5.3
FISCAL IMPACT:
1. Is There A Fiscal Impact? Yes
2. Is it Currently Budgeted? Yes
3. If Budgeted, Which Line? 320 – Ambulance Fund
ATTACHMENTS
1. Emergency Medical Services Agreement with Fresno County 1 2
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1 EMERGENCY MEDICAL SERVICES AGREEMENT
This Service Agreement (“Agreement”) is dated ___________________ and is between City of Kingsburg, a Municipal Corporation, (“Contractor”), and the County of Fresno, a political subdivision of the State of California (“County”).
Recitals
A. County, through its Department of Public Health, has been designated as the Local EMS Agency of the County of Fresno pursuant to California Health and Safety Code Section 1797.200.
B. Contractor has previously provided emergency ambulance services to persons needing such services within the boundaries of Fresno County Ambulance Zone K.
C. Contractor desires to continue to provide prehospital emergency medical services as authorized by law within said Zone K.
The parties therefore agree as follows:
EMS Agency
1.1 The parties acknowledge that the County’s Department of Public Health has been designated as the Local EMS Agency of the County with authority to plan, implement and evaluate an emergency medical services system in Fresno County pursuant to California Health and Safety Code Sections 1797.200 and 1797.204. The parties also acknowledge that the Local EMS Agency has implemented County EMS Policy #200 (Authorization of Ambulance Provider Agencies in Fresno County). The parties further acknowledge that the EMS Medical Director of the County’s Department of Public Health has the authority set forth in Health and Safety Code Section 1798. Contractor shall operate its prehospital emergency medical care services program in conformity with the medical policies, procedures and standards issued, and amended, by the Local EMS Agency (hereinafter collectively referred to as the “County EMS Policies and Procedures,” and individually referred to as “County EMS Policy #”).
1.2 Neither the fact that this Agreement is entered into nor anything contained in this Agreement shall be construed as an admission by either party hereto regarding Contractor’s 1 2
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2 legal authority, if any, to plan, implement, and operate within or without its corporate boundaries a system of prehospital emergency medical services (including, but not limited to, ambulance services) independent of County’s authorization or approval.
Contractor’s Services
2.1 Scope of Services. The Contractor shall perform all of the services provided in Exhibit A to this Agreement, titled “Scope of Services.”
2.2 Representation. The Contractor represents that it is qualified, ready, willing, and able to perform all of the services provided in this Agreement.
2.3 Compliance with Laws. The Contractor shall, at its own cost, comply with all applicable federal, state, and local laws and regulations in the performance of its obligations under this Agreement, including but not limited to workers compensation, labor, and confidentiality laws and regulations.
County’s Responsibilities
3.1 The County shall operate a central dispatching facility and shall provide the primary dispatch of all calls for prehospital emergency medical care and ambulance services within the area set forth in Exhibit B-1 to Contractor in accordance with County EMS Policies and Procedures.
(A) County will assist Contractor in developing, implementing, and maintaining an internal field supervision system to provide evaluation of personnel providing service under this Agreement according to the standards established by the County EMS Policies and Procedures.
(B) County will do periodic and annual inspections of Contractor’s emergency ambulance service personnel certifications, records, vehicles, equipment, and facilities required by law and this Agreement.
3.2 Notwithstanding the foregoing provisions of Section 3.1 of this Agreement, County is not restricted by reason of this Agreement from entering into an agreement for services that are 1 2
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3 the same as or similar to these provided by Contractor pursuant to this Agreement with an entity other than Contractor for the provision of prehospital emergency medical services within the same geographic area as shown in Exhibit B-1. County shall notify Contractor of any proposal to enter into such an agreement with any other entity prior to award of such agreement.
3.3 The County shall provide the use of County communications infrastructure for EMS Med Channels, as provided herein during the term of this Agreement.
Compensation
4.1 County shall not be obligated to raise taxes, or to adopt or approve any tax measures to provide funds, in order to compensate Contractor in connection with this Agreement. The only compensation payable by County to Contractor for Contractor’s satisfactory performance of its services under this Agreement is as follows in section 4.2 below.
4.2 Compensation to Contractor. County shall provide compensation to Contractor for the satisfactory performance of its services as provided herein. (A) County shall pay to Contractor a monthly lump-payment of Five Hundred and No/100 Dollars ($500.00) for estimated dry runs and uncollectible charges. The total maximum compensation payable under this agreement for each year shall not exceed Six Thousand and No/100 Dollars ($6,000.00).
(B) The total maximum compensation payable under the Agreement, for the period of July 1, 2024 through June 30, 2029, shall not exceed Thirty Thousand and No/100 Dollars ($30,000.00).
4.3 County shall have no obligation to compensate Contractor for services under this Agreement other than as stated above. The parties agree that the amounts stated above are inclusive of and fulfill any obligation County may have, if any, presently or at any time during the term of this Agreement, to compensate, reimburse, or otherwise pay Contractor for prehospital emergency medical services provided to medically-indigent persons. 1 2
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4 Term of Agreement
5.1 Term. This Agreement is effective on July 1, 2024 and terminates on June 30, 2027, except as provided in section 5.2, “Extension,” or Article 7, “Termination and Suspension,” below.
5.2 Extension. The term of this Agreement may be extended for no more than two, oneyear periods only upon written approval of both parties at least 30 days before the first day of the next one-year extension period. The Director of the Department of Public Health or his or her designee is authorized to sign the written approval on behalf of the County based on the Contractor’s satisfactory performance. The extension of this Agreement by the County is not a waiver or compromise of any default or breach of this Agreement by the Contractor existing at the time of the extension whether or not known to the County.
Notices
6.1 Contact Information. The persons and their addresses having authority to give and receive notices provided for or permitted under this Agreement include the following:
For the County:
Director, Department of Public Health
County of Fresno
P.O. Box 11867
Fresno, CA 93775
[email protected]
For the Contractor:
City of Kingsburg
City Manager
1401 Draper Street
Kingsburg, CA 93631
6.2 Change of Contact Information. Either party may change the information in section
5.1 by giving notice as provided in section 5.3.
6.3 Method of Delivery. Each notice between the County and the Contractor provided for or permitted under this Agreement must be in writing, state that it is a notice provided under this Agreement, and be delivered either by personal service, by first-class United States mail, by 1 2
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5 an overnight commercial courier service, by telephonic facsimile transmission, or by Portable Document Format (PDF) document attached to an email.
(A) A notice delivered by personal service is effective upon service to the recipient. (B) A notice delivered by first-class United States mail is effective three County business days after deposit in the United States mail, postage prepaid, addressed to the recipient.
(C) A notice delivered by an overnight commercial courier service is effective one County business day after deposit with the overnight commercial courier service, delivery fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient.
(D) A notice delivered by telephonic facsimile transmission or by PDF document attached to an email is effective when transmission to the recipient is completed (but, if such transmission is completed outside of County business hours, then such delivery is deemed to be effective at the next beginning of a County business day), provided that the sender maintains a machine record of the completed transmission.
6.4 Claims Presentation. For all claims arising from or related to this Agreement, nothing in this Agreement establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810).
Termination and Suspension
7.1 Termination for Non-Allocation of Funds. The terms of this Agreement are contingent on the approval of funds by the appropriating government agency. If sufficient funds are not allocated, then the County, upon at least 30 days’ advance written notice to the Contractor, may:
(A) Modify the services provided by the Contractor under this Agreement; or (B) Terminate this Agreement.
7.2 Termination for Breach.
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6 (A) Upon determining that a breach (as defined in paragraph (C) below) has occurred, the County may give written notice of the breach to the Contractor. The written notice may suspend performance under this Agreement, and must provide at least 30 days for the Contractor to cure the breach.
(B) If the Contractor fails to cure the breach to the County’s satisfaction within the time stated in the written notice, the County may terminate this Agreement immediately. (C) For purposes of this section, a breach occurs when, in the determination of the County, the Contractor has:
(1) Obtained or used funds illegally or improperly;
(2) Failed to comply with any part of this Agreement;
(3) Submitted a substantially incorrect or incomplete report to the County; or (4) Improperly performed any of its obligations under this Agreement.
7.3 Termination without Cause. In circumstances other than those set forth above, the County may terminate this Agreement by giving at least 30 days advance written notice to the Contractor.
7.4 No Penalty or Further Obligation. Any termination of this Agreement by the County under this Article 7 is without penalty to or further obligation of the County.
7.5 County’s Rights upon Termination. Upon termination for breach under this Article 7, the County may demand repayment by the Contractor of any monies disbursed to the Contractor under this Agreement that, in the County’s sole judgment, were not expended in compliance with this Agreement. The Contractor shall promptly refund all such monies upon demand. This section survives the termination of this Agreement.
Confidentiality
8.1 Confidentiality. All services performed by the Contractor under this Agreement shall be in strict conformance with all applicable Federal, State of California and/or local laws and regulations relating to confidentiality, including all Health Insurance Portability Accounting Act (HIPAA) Regulations.
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7 Independent Contractor
9.1 Status. In performing under this Agreement, the Contractor, including its officers, agents, employees, and volunteers, is at all times acting and performing as an independent contractor, in an independent capacity, and not as an officer, agent, servant, employee, joint venturer, partner, or associate of the County.
9.2 Verifying Performance. The County has no right to control, supervise, or direct the manner or method of the Contractor’s performance under this Agreement, but the County may verify that the Contractor is performing according to the terms of this Agreement.
9.3 Benefits. Because of its status as an independent contractor, the Contractor has no right to employment rights or benefits available to County employees. The Contractor is solely responsible for providing to its own employees all employee benefits required by law. The Contractor shall save the County harmless from all matters relating to the payment of Contractor’s employees, including compliance with Social Security withholding and all related regulations.
9.4 Services to Others. The parties acknowledge that, during the term of this Agreement, the Contractor may provide services to others unrelated to the County.
Mutual Indemnity and Defense
10.1 Contractor’s Indemnity to County. The Contractor shall indemnify and hold harmless and defend the County (including its officers, agents, employees, and volunteers) against all claims, demands, injuries, damages, costs, expenses (including attorney fees and costs), fines, penalties, and liabilities of any kind to the County, the Contractor, or any third party that arise from or relate to the performance or failure to perform by the Contractor (or any of its officers, agents, subcontractors, or employees) under this Agreement. The County may conduct or participate in its own defense without affecting the Contractor’s obligation to indemnify and hold harmless or defend the County.
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8 10.2 County’s Indemnity to Contractor. The County shall indemnify and hold harmless and defend the Contractor (including its officers, agents, employees, and volunteers) against all claims, demands, injuries, damages, costs, expenses (including attorney fees and costs), fines, penalties, and liabilities of any kind to the Contractor, the County, or any third party that arise from or relate to the performance or failure to perform by the County (or any of its officers, agents, subcontractors, or employees) under this Agreement. The Contractor may conduct or participate in its own defense without affecting the County’s obligation to indemnify and hold harmless or defend the Contractor.
10.3 Survival. This Article 10 survives the termination of this Agreement.
Insurance
11.1 The Contractor shall comply with all the insurance requirements in Exhibit C to this Agreement.
Inspections, Audits, and Public Records
12.1 Inspection of Documents. The Contractor shall make available to the County, and the County may examine at any time during business hours and as often as the County deems necessary, all of the Contractor’s records and data with respect to the matters covered by this Agreement, excluding attorney-client privileged communications. The Contractor shall, upon request by the County, permit the County to audit and inspect all of such records and data to ensure the Contractor’s compliance with the terms of this Agreement.
12.2 State Audit Requirements. If the compensation to be paid by the County under this Agreement exceeds $10,000, the Contractor is subject to the examination and audit of the California State Auditor, as provided in Government Code section 8546.7, for a period of three years after final payment under this Agreement. This section survives the termination of this Agreement. Additional Federal audit requirements may apply if any portion of the compensation to be paid by the County under this Agreement is also provided by Federal funding. 1 2
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9 12.3 Public Records. The County is not limited in any manner with respect to its public disclosure of this Agreement or any record or data that the Contractor may provide to the County. The County’s public disclosure of this Agreement or any record or data that the Contractor may provide to the County may include but is not limited to the following:
(A) The County may voluntarily, or upon request by any member of the public or governmental agency, disclose this Agreement to the public or such governmental agency.
(B) The County may voluntarily, or upon request by any member of the public or governmental agency, disclose to the public or such governmental agency any record or data that the Contractor may provide to the County, unless such disclosure is prohibited by court order.
(C) This Agreement, and any record or data that the Contractor may provide to the County, is subject to public disclosure under the Ralph M. Brown Act (California Government Code, Title 5, Division 2, Part 1, Chapter 9, beginning with section 54950). (D) This Agreement, and any record or data that the Contractor may provide to the County, is subject to public disclosure as a public record under the California Public Records Act (California Government Code, Title 1, Division 7, Chapter 3.5, beginning with section 6250) (“CPRA”).
(E) This Agreement, and any record or data that the Contractor may provide to the County, is subject to public disclosure as information concerning the conduct of the people’s business of the State of California under California Constitution, Article 1, section 3, subdivision (b).
(F) Any marking of confidentiality or restricted access upon or otherwise made with respect to any record or data that the Contractor may provide to the County shall be disregarded and have no effect on the County’s right or duty to disclose to the public or governmental agency any such record or data.
12.4 Public Records Act Requests. If the County receives a written or oral request under the CPRA to publicly disclose any record that is in the Contractor’s possession or control, 1 2
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10 and which the County has a right, under any provision of this Agreement or applicable law, to possess or control, then the County may demand, in writing, that the Contractor deliver to the County, for purposes of public disclosure, the requested records that may be in the possession or control of the Contractor. Within five business days after the County’s demand, the Contractor shall (a) deliver to the County all of the requested records that are in the Contractor’s possession or control, together with a written statement that the Contractor, after conducting a diligent search, has produced all requested records that are in the Contractor’s possession or control, or (b) provide to the County a written statement that the Contractor, after conducting a diligent search, does not possess or control any of the requested records. The Contractor shall cooperate with the County with respect to any County demand for such records. If the Contractor wishes to assert that any specific record or data is exempt from disclosure under the CPRA or other applicable law, it must deliver the record or data to the County and assert the exemption by citation to specific legal authority within the written statement that it provides to the County under this section. The Contractor’s assertion of any exemption from disclosure is not binding on the County, but the County will give at least 10 days’ advance written notice to the Contractor before disclosing any record subject to the Contractor’s assertion of exemption from disclosure. The Contractor shall indemnify the County for any court-ordered award of costs or attorney’s fees under the CPRA that results from the Contractor’s delay, claim of exemption, failure to produce any such records, or failure to cooperate with the County with respect to any County demand for any such records.
General Terms
13.1 Modification. Except as provided in Article 7, “Termination and Suspension,” this Agreement may not be modified, and no waiver is effective, except by written agreement signed by both parties. The Contractor acknowledges that County employees have no authority to modify this Agreement except as expressly provided in this Agreement.
13.2 Non-Assignment. Neither party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party. 1 2
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11 13.3 Governing Law. The laws of the State of California govern all matters arising from or related to this Agreement.
13.4 Jurisdiction and Venue. This Agreement is signed and performed in Fresno County, California. Contractor consents to California jurisdiction for actions arising from or related to this Agreement, and, subject to the Government Claims Act, all such actions must be brought and maintained in Fresno County.
13.5 Construction. The final form of this Agreement is the result of the parties’ combined efforts. If anything in this Agreement is found by a court of competent jurisdiction to be ambiguous, that ambiguity shall not be resolved by construing the terms of this Agreement against either party.
13.6 Days. Unless otherwise specified, “days” means calendar days.
13.7 Headings. The headings and section titles in this Agreement are for convenience only and are not part of this Agreement.
13.8 Severability. If anything in this Agreement is found by a court of competent jurisdiction to be unlawful or otherwise unenforceable, the balance of this Agreement remains in effect, and the parties shall make best efforts to replace the unlawful or unenforceable part of this Agreement with lawful and enforceable terms intended to accomplish the parties’ original intent.
13.9 Nondiscrimination. During the performance of this Agreement, the Contractor shall not unlawfully discriminate against any employee or applicant for employment, or recipient of services, because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, military status or veteran status pursuant to all applicable State of California and federal statutes and regulation.
13.10 No Waiver. Payment, waiver, or discharge by the County of any liability or obligation of the Contractor under this Agreement on any one or more occasions is not a waiver of performance of any continuing or other obligation of the Contractor and does not prohibit enforcement by the County of any obligation on any other occasion. 1 2
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12 13.11 Force Majeure.
(A) If either party hereto is rendered unable, wholly or in part, by Force Majeure to carry out its obligations under this Agreement, that party shall give to the other party hereto prompt written notice of the Force Majeure with full particulars relating thereto.
Thereupon, the obligation of the party giving the notice, so far as they are affected by the Force Majeure, shall be suspended during, but no longer than, the continuance of the Force Majeure, except for a reasonable time thereafter required to resume performance. (B) During any period in which either party hereto is excused from performance by reason of the occurrence of an event of Force Majeure, the party so excused shall promptly, diligently, and in good faith take all reasonable action required in order for it to be able to promptly commence or resume performance of its obligations under this Agreement. Without limiting the generality of the foregoing, the party so excused from performance shall, during any such period of Force Majeure, take all reasonable action necessary to terminate any temporary restraining order or preliminary or permanent injunctions to enable it to so commence or resume performance of its obligations under this Agreement.
(C) The party whose performance is excused due to the occurrence of an event of Force Majeure shall, during such period, keep the other party hereto notified of all such actions required in order for it to be able to commence or resume performance of its obligations under this Agreement.
(D) “Force Majeure” is defined as an Act of God, act of public enemy, war, and other extraordinary causes not reasonably within the control of either of the parties hereto.
13.12 Entire Agreement. This Agreement, including its exhibits, is the entire agreement between the Contractor and the County with respect to the subject matter of this Agreement, and it supersedes all previous negotiations, proposals, commitments, writings, advertisements, publications, and understandings of any nature unless those things are expressly included in this Agreement. If there is any inconsistency between the terms of this Agreement without its exhibits and the terms of the exhibits, then the inconsistency will be resolved by giving 1 2
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13 precedence first to the terms of this Agreement without its exhibits, and then to the terms of the exhibits.
13.13 No Third-Party Beneficiaries. This Agreement does not and is not intended to create any rights or obligations for any person or entity except for the parties.
13.14 Authorized Signature. The Contractor represents and warrants to the County that:
(A) The Contractor is duly authorized and empowered to sign and perform its obligations under this Agreement.
(B) The individual signing this Agreement on behalf of the Contractor is duly authorized to do so and his or her signature on this Agreement legally binds the Contractor to the terms of this Agreement.
13.15 Electronic Signatures. The parties agree that this Agreement may be executed by electronic signature as provided in this section.
(A) An “electronic signature” means any symbol or process intended by an individual signing this Agreement to represent their signature, including but not limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or (3) an electronically scanned and transmitted (for example by PDF document) version of an original handwritten signature.
(B) Each electronic signature affixed or attached to this Agreement (1) is deemed equivalent to a valid original handwritten signature of the person signing this Agreement for all purposes, including but not limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and effect as the valid original handwritten signature of that person.
(C) The provisions of this section satisfy the requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3, Part 2, Title 2.5, beginning with section 1633.1).
(D) Each party using a digital signature represents that it has undertaken and satisfied the requirements of Government Code section 16.5, subdivision (a), 1 2
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14 paragraphs (1) through (5), and agrees that each other party may rely upon that representation.
(E) This Agreement is not conditioned upon the parties conducting the transactions under it by electronic means and either party may sign this Agreement with an original handwritten signature.
13.16 Counterparts. This Agreement may be signed in counterparts, each of which is an original, and all of which together constitute this Agreement. [SIGNATURE PAGE FOLLOWS]
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15 The parties are signing this Agreement on the date stated in the introductory clause.
CITY OF KINGSBURG
Vince Palomar, Mayor of the City of Kingsburg
Attest:
Abigail Palsgaard
City Clerk of the City of Kingsburg
By: _______________________
COUNTY OF FRESNO
_________________________________
Nathan Magsig, Chairman of the Board of
Supervisors of the County of Fresno
Attest:
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
By: _______________________
Deputy
For accounting use only:
Org No.: 56201695
Account No.: 7295
Fund No.: 0001
Subclass No.: 10000
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Exhibit A
A-1
Scope of Services
1. Duties of Contractor
A. Contractor shall be responsible for furnishing equipment and materials, as hereinafter set forth, in order to provide prehospital emergency medical services to persons in need thereof within the incorporated boundaries of the City of Kingsburg and that certain portion of the unincorporated area of Fresno County, all known as Fresno County Ambulance Service Zone K, as shown in Exhibit B-1.
B. Contractor shall maintain automatic vehicle locators in each authorized emergency ambulance unit and authorized disaster response unit.
C. Contractor shall assure that all calls received by the City of Kingsburg PSAP (Public Safety Answering Point) for medical assistance are transferred directly to the County’s centralized ambulance dispatch facility.
D. Contractor agrees to meet performance standards and requirements as further discussed in Section 6 of this Agreement.
2. Qualification of Contractor
Contractor shall at all times meet the requirements set forth by the California Highway Patrol, the California Health and Safety Code, the California Vehicle Code, the State Department of Health, the California Code of Regulations, the County’s Department of Public Health with respect to medical standards, and any other applicable statute or regulation with respect to the services, equipment, and materials which are the subject matter of this Agreement. In the event of conflicting statutes or regulations, the statute or regulation setting forth the most stringent requirements shall be adhered to by Contractor.
3. Area Served
Contractor shall provide prehospital emergency medical services, on a nonexclusive basis, upon dispatch by County and upon direct call to Kingsburg’s Police Department to any location or incident within the territory of Fresno County Ambulance Service Zone Area K as shown in Exhibit B-1. In addition, upon request of the County EMS Communications Center, Contractor shall, to the extent consistent with its primary responsibility to provide prehospital 1 2
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Exhibit A
A-2
emergency medical services in the area of Exhibit B-1, render all reasonable “mutual aid” to those providers of emergency medical services operating within the adjacent Service Zone Areas in order to ensure that timely emergency medical services are rendered to persons in need of such services within those areas.
4. Staffing and Wages in Conformance with H&S Code 1797.230 A. Contractor shall provide for the payment of comparable wages and benefits to all ambulance service employees that are generally consistent with those provided to ambulance service employees in the County of Fresno and surrounding counties.
B. Contractor shall maintain staffing levels consistent with staffing levels outlined in previous contracts between the parties.
5. Services to be Provided and Performance Standards
A. Contractor shall provide appropriate ambulance, paramedic, and medical equipment and personnel, except as set forth in this Agreement, in order to furnish “Advanced Life Support” (ALS) and “Basic Life Support” (BLS) services to persons within the area defined in Exhibit B-1 on a non-exclusive, on-call basis, twenty-four (24) hours per day, seven (7) days per week.
“Advanced Life Support” services shall mean special services designed to provide definitive prehospital emergency medical care, including, but not limited to, cardiopulmonary resuscitation, cardiac monitoring, cardiac defibrillation, advanced airway management, intravenous therapy, administration of specified drugs and other medical preparations, and other specified techniques and procedures administered by authorized personnel under direct supervision of a base station hospital or according to approved written protocols.
“Basic Life Support” services shall mean emergency first aid and cardiopulmonary resuscitation procedures which, as a minimum, includes recognizing respiratory and cardiac arrest and starting the proper application of cardiopulmonary resuscitation to maintain life without invasive techniques until the patient may be transported or until advanced life support is available.
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Exhibit A
A-3
B. Response Areas and Performance Standards
1) Metropolitan Response Area
The Metropolitan Response Area is defined as that area within the corporate limits of the City of Kingsburg plus an area within one (1) statutory mile of said corporate limits, which is shown in Exhibit B-2, attached hereto and incorporated herein by this reference.
2) Rural Response Area
The Rural Response Area is defined as that area beyond the Metropolitan Response Area limits, which is shown in Exhibit B-3, attached hereto and incorporated herein by this reference.
3) Response Time Performance Standards
Response time standards for the abovementioned areas are shown in Exhibit D, attached hereto and by this reference incorporated herein. 4) The required response times under this Agreement are measured from the time Contractor is alerted for a response to the time that Contractor arrives at scene in a fully staffed and equipped emergency ambulance unit. County provides Contractor with significant flexibility in Contractor’s methods of providing said services in order to achieve minimum results required under this Agreement. This is based upon Contractor’s commitment to perform to the response time standards required under this Agreement.
Therefore, a deficiency or an error by Contractor in one or more phases of its operations (e.g., vehicle deployment plan and basing model, and vehicle maintenance) shall not be the basis for the EMS Agency granting an exception to Contractor for its performance in another phase of its operation (e.g., response time performance). Required response times shall be measured in minutes and seconds, and shall be time stamped by the EMS Agency’s computer aided dispatch (CAD) system consistent with the requirements herein.
County and the EMS Agency recognizes that dispatch
operations are not a responsibility or under the control of Contractor. County and the EMS Agency acknowledge that Contractor is not to be held responsible for delays that may occur due 1 2
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Exhibit A
A-4
to dispatching, and the Contractor acknowledges that the County EMS Communications Center requires adequate time to process each request (e.g., time from request received to the time of unit alert). County agrees to monitor the County EMS Communications Center to ensure that its dispatch performance remains within the standards developed by County and the local EMS Agency.
The EMS Agency may grant exemptions from response time
performance requirements stated herein, on case-by-case basis, for calls where weather conditions, multi-casualty incidents, or other situations beyond the Contractor’s control cause unavoidable delay. All such calls shall be individually examined by the EMS Agency as to system status plan and staffing levels, dispatch and in-service times, and other influencing factors (e.g., weather conditions), and if the circumstances warrant, the EMS Agency may authorize the exclusion of such calls when measuring performance requirements. Exclusion of a call under this paragraph means that a late call which has received approval for an appeal will not count as an on-time response. Therefore, it is excluded from the database for the purpose of fractile performance calculation (i.e., performance measured by fractions of a minute or hour).
In order to be eligible for such exemption, the Contractor shall notify the EMS Agency within a reasonable amount of time of the occurrence. Equipment failure, personnel error, or lack of a nearby ambulance does not constitute grounds for exemption from response time performance requirements.
a. “At Scene”
Shall be defined as the moment when the assigned
emergency ambulance unit is physically at or within one hundred (100) feet of the scene. In instances where the emergency ambulance unit responds to a location other than the scene (e.g., staging area), arrival “at scene” shall be the time such unit arrives at, or is within one hundred (100) feet of, the designated staging location
b. Failure to Report “At Scene”
In instances when emergency ambulance units fail to report “at scene,” the time of the next communications by those units with the County EMS 1 2
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Exhibit A
A-5
Communications Center shall be used as the “at scene” time. However, Contractor may appeal such instances when it can document the actual arrival time through another means (e.g., nonContractor first responder communication recording and automatic vehicle locator). c. Unit Cancelled Prior to Arrival “At Scene”
Required response time standards do not apply to instances where Contractor is cancelled prior to arrival “at scene”. 5) Performance Indicators for Alerting and Initiating Response The following performance indicators shall be used to evaluate the timeliness of Contractor’s field operations (from time of unit alert to time “at scene”) in response to requests that require an immediate dispatch (Priorities 1 and 2) or an urgent dispatch (Priorities 3 and 4). Such performance indicators are not used as standards for enforcing Contractor’s compliance with required response time standards under this Agreement.
Rather, they are utilized as a means of determining whether Contractor meets the criteria for an exception to response time standards and for evaluating the need for more in-depth Quality Improvement review by the EMS Agency and/or Contractor of Contractor’s services. a. Crew Response Phase (Priorities 1,2,3, and 4)
For requests for immediate responses (Priorities 1 and 2) and urgent responses (Priorities 3 and 4), the “Chute Time” is the measurement of elapsed time from “unit alert” to the time that all crewmembers are in the ambulance unit, begin response, and report on radio to the County EMS Communications Center of “unit enroute.” For Contractor’s primary ambulance units, the maximum permissible Chute Time shall be one hundred twenty (120) seconds or less. This performance indicator is a performance measurement of Contractor’s performance separate from any other performance standard in this Agreement. “Unit Alert” shall be defined as the moment the County EMS Communications Center alerts Contractor’s emergency ambulance unit for a response. 6) Ambulances shall be staffed and equipped at the appropriate response level for the response incident (Advanced Life Support or Basic Life Support). The Contractor may utilize its own discretion on resource management with regard to advanced life 1 2
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Exhibit A
A-6
support (paramedic) ambulance units. The Contractor may operate a single-tiered system - utilizing advanced life support (paramedic) ambulance units for all responses or the Contractor may operate a multi-tiered system - staffing different types of units with different staffing levels in order to service the various types of responses. The Contractor has the operational flexibility to operate under either model in order to provide a cost-effective system. However, the Contractor’s obligation to perform its minimum performance requirements under this Agreement to the reasonable satisfaction of the County and the EMS Agency shall not be lessened if Contractor elects to operate a multi-tiered system - that is, the Contractor shall in any event be responsible to provide an appropriately staffed and equipped ambulance unit, as defined in the EMS Agency Policy and Procedures.
The EMS Agency requirement for staffing of advanced life support (paramedic) units is a minimum of one (1) currently California-licensed and locallyaccredited paramedic and one (1) currently trained and locally certified EMT. The minimum staffing for a BLS unit is two (2) locally certified EMTs.
The utilization of BLS ambulances as a part of a multi-tiered system, and, in the case of incidents which require the response of an advanced life support (paramedic) ambulance unit, the Contractor utilizes BLS ambulances in conjunction with nontransport advanced life support (paramedic) units, the following standards shall apply:
a. Rendezvous between BLS ambulance units and advanced
life support (paramedic) units shall be initiated according to the standards described in EMS Policy #510; and
b. Such BLS ambulance personnel shall adhere to EMS
Agency Policy and Procedures regarding treatment and the urgency of transport. Patient transport shall not be inappropriately delayed, contrary to EMS Agency Policy and Procedures, in order to wait for the arrival of a non-transport advanced life support (paramedic) unit in order to prevent the levy of liquidated damages regarding a BLS response. c. BLS level ambulances for services under this Agreement shall be equipped and staffed at the BLS-defibrillation level. 1 2
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Exhibit A
A-7
7) Contractor shall make (and shall maintain for 180 days) a digitally recorded copy of all requests for medical aid through the designated public service answering point.
8) Contractor shall, consistent with County EMS Policies and Procedures, develop, collect, maintain and transmit to County data regarding its delivery of services hereunder.
9) Contractor shall utilize and maintain an electronic patient care reporting (ePCR) system and provide data to the EMS Agency and the California EMS Information System (CEMSIS) in accordance with H&S code 1797.227. 10) Contractor shall notify the County EMS Communications Center immediately upon receipt of calls for medical aid and/or transportation and attempt to forward medical 911 calls to the County EMS Communications Center to allow for telephone medical pre-arrival instructions.
11) Contractor shall make and maintain radio contact with the County EMS Communications Center on the County EMS Med-Net System for the purpose of tracking and data collection.
12) Contractor agrees to provide an internal quality improvement program, which adheres to the County EMS System and is consistent with the minimum standards of the County EMS Policies and Procedures.
6. Equipment and Personnel
Contractor shall furnish, operate, maintain and replace, as necessary, any and all items of equipment, apparatus and supplies, whether real, personal, or otherwise, and qualified personnel as may be necessary to fulfill its obligations under this Agreement. As between the County and Contractor, title to all such equipment, apparatus and supplies furnished by Contractor shall remain at all times in Contractor and personnel assigned to the performance of this Agreement are and shall remain employees or volunteers or contractors of Contractor.
Exhibit C
C-1
Insurance Requirements
1. Required Policies
Without limiting the County’s right to obtain indemnification from the Contractor or any third parties, Contractor, at its sole expense, shall maintain in full force and effect the following insurance policies throughout the term of this Agreement. (A) Commercial General Liability. Commercial general liability insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and an annual aggregate of Four Million Dollars ($4,000,000). This policy must be issued on a per occurrence basis.
Coverage must include products, completed operations, property damage, bodily injury, personal injury, and advertising injury. The Contractor shall obtain an endorsement to this policy naming the County of Fresno, its officers, agents, employees, and volunteers, individually and collectively, as additional insureds, but only insofar as the operations under this Agreement are concerned. Such coverage for additional insureds will apply as primary insurance and any other insurance, or self-insurance, maintained by the County is excess only and not contributing with insurance provided under the Contractor’s policy.
(B) Automobile Liability. Automobile liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence for bodily injury and for property damages.
Coverage must include any auto used in connection with this Agreement. (C) Workers Compensation. Workers compensation insurance as required by the laws of the State of California with statutory limits.
(D) Employer’s Liability. Employer’s liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence for bodily injury and for disease. (E) Professional Liability. Professional liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence and an annual aggregate of Three Million Dollars ($3,000,000). If this is a claims-made policy, then (1) the retroactive date must be prior to the date on which services began under this Agreement; (2) the Contractor shall maintain the policy and provide to the County annual evidence of insurance for not less than five years after completion of services under this Agreement; and (3) if the policy is canceled or not renewed, and not replaced with another claims-made policy with a retroactive date prior to the date on which services begin under this Agreement, then the Contractor shall purchase extended reporting coverage on its claims-made policy for a minimum of five years after completion of services under this Agreement. (F) Molestation Liability. Sexual abuse / molestation liability insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence, with an annual aggregate of Four Million Dollars ($4,000,000). This policy must be issued on a per occurrence basis. (G) Technology Professional Liability (Errors and Omissions). Technology professional liability (errors and omissions) insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and in the aggregate. Coverage must encompass all of the Contractor’s obligations under this Agreement, including but not limited to claims involving Cyber Risks.
Exhibit C
C-2
(H) Cyber Liability. Cyber liability insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence. Coverage must include claims involving Cyber Risks. The cyber liability policy must be endorsed to cover the full replacement value of damage to, alteration of, loss of, or destruction of intangible property (including but not limited to information or data) that is in the care, custody, or control of the Contractor.
Definition of Cyber Risks. “Cyber Risks” include but are not limited to (i) Security Breach, which may include Disclosure of Personal Information to an Unauthorized Third Party; (ii) data breach; (iii) breach of any of the Contractor’s obligations under [identify the Article, section, or exhibit containing data security obligations] of this Agreement; (iv) system failure; (v) data recovery; (vi) failure to timely disclose data breach or Security Breach; (vii) failure to comply with privacy policy; (viii) payment card liabilities and costs; (ix) infringement of intellectual property, including but not limited to infringement of copyright, trademark, and trade dress; (x) invasion of privacy, including release of private information; (xi) information theft; (xii) damage to or destruction or alteration of electronic information; (xiii) cyber extortion; (xiv) extortion related to the Contractor’s obligations under this Agreement regarding electronic information, including Personal Information; (xv) fraudulent instruction; (xvi) funds transfer fraud; (xvii) telephone fraud; (xviii) network security; (xix) data breach response costs, including Security Breach response costs; (xx) regulatory fines and penalties related to the Contractor’s obligations under this Agreement regarding electronic information, including Personal Information; and (xxi) credit monitoring expenses.
If the Contractor is a governmental entity, it may satisfy the policy requirements above through a program of self-insurance, including an insurance pooling arrangement or joint exercise of powers agreement.
2. Additional Requirements
(A) Verification of Coverage. Within 30 days after the Contractor signs this Agreement, and at any time during the term of this Agreement as requested by the County’s Risk Manager or the County Administrative Office, the Contractor shall deliver, or cause its broker or producer to deliver, to the County of Fresno, Department of Public Health, P.O.
Box 11867, Fresno, CA 93775, Attention: Contracts Section – 6th Floor, or email, [email protected], certificates of insurance and endorsements for all of the coverages required under this Agreement.
(i) Each insurance certificate must state that: (1) the insurance coverage has been obtained and is in full force; (2) the County, its officers, agents, employees, and volunteers are not responsible for any premiums on the policy; and (3) the Contractor has waived its right to recover from the County, its officers, agents, employees, and volunteers any amounts paid under any insurance policy required by this Agreement and that waiver does not invalidate the insurance policy.
(ii) The commercial general liability insurance certificate must also state, and include an endorsement, that the County of Fresno, its officers, agents, employees, and volunteers, individually and collectively, are additional insureds insofar as the operations under this Agreement are concerned. The commercial general liability Exhibit C
C-3
insurance certificate must also state that the coverage shall apply as primary insurance and any other insurance, or self-insurance, maintained by the County shall be excess only and not contributing with insurance provided under the Contractor’s policy.
(iii) The automobile liability insurance certificate must state that the policy covers any auto used in connection with this Agreement.
(iv) The professional liability insurance certificate, if it is a claims-made policy, must also state the retroactive date of the policy, which must be prior to the date on which services began under this Agreement.
(v) The technology professional liability insurance certificate must also state that coverage encompasses all of the Contractor’s obligations under this Agreement, including but not limited to claims involving Cyber Risks, as that term is defined in this Agreement.
(vi) The cyber liability insurance certificate must also state that it is endorsed, and include an endorsement, to cover the full replacement value of damage to, alteration of, loss of, or destruction of intangible property (including but not limited to information or data) that is in the care, custody, or control of the Contractor. (B) Acceptability of Insurers. All insurance policies required under this Agreement must be issued by admitted insurers licensed to do business in the State of California and possessing at all times during the term of this Agreement an A.M. Best, Inc. rating of no less than A: VII.
(C) Notice of Cancellation or Change. For each insurance policy required under this Agreement, the Contractor shall provide to the County, or ensure that the policy requires the insurer to provide to the County, written notice of any cancellation or change in the policy as required in this paragraph. For cancellation of the policy for nonpayment of premium, the Contractor shall, or shall cause the insurer to, provide written notice to the County not less than 10 days in advance of cancellation. For cancellation of the policy for any other reason, and for any other change to the policy, the Contractor shall, or shall cause the insurer to, provide written notice to the County not less than 30 days in advance of cancellation or change. The County in its sole discretion may determine that the failure of the Contractor or its insurer to timely provide a written notice required by this paragraph is a breach of this Agreement.
(D) County’s Entitlement to Greater Coverage. If the Contractor has or obtains insurance with broader coverage, higher limits, or both, than what is required under this Agreement, then the County requires and is entitled to the broader coverage, higher limits, or both. To that end, the Contractor shall deliver, or cause its broker or producer to deliver, to the County’s Risk Manager certificates of insurance and endorsements for all of the coverages that have such broader coverage, higher limits, or both, as required under this Agreement.
(E) Waiver of Subrogation. The Contractor waives any right to recover from the County, its officers, agents, employees, and volunteers any amounts paid under the policy of worker’s compensation insurance required by this Agreement. The Contractor is solely Exhibit C
C-4
responsible to obtain any policy endorsement that may be necessary to accomplish that waiver, but the Contractor’s waiver of subrogation under this paragraph is effective whether or not the Contractor obtains such an endorsement. (F) County’s Remedy for Contractor’s Failure to Maintain. If the Contractor fails to keep in effect at all times any insurance coverage required under this Agreement, the County may, in addition to any other remedies it may have, suspend or terminate this Agreement upon the occurrence of that failure, or purchase such insurance coverage, and charge the cost of that coverage to the Contractor. The County may offset such charges against any amounts owed by the County to the Contractor under this Agreement.
(G) Subcontractors. The Contractor shall require and verify that all subcontractors used by the Contractor to provide services under this Agreement maintain insurance meeting all insurance requirements provided in this Agreement. This paragraph does not authorize the Contractor to provide services under this Agreement using subcontractors. (H) Contractor’s Personnel. The insurance requirements of this Exhibit C shall apply to Contractor’s personnel during their performance of any activity which is the subject of this Agreement hereto, including, but not limited to, their participation in clinical education programs and prehospital experience while assigned to a separate paramedic ground ambulance provider.
Exhibit D
D-1
Response Time Standards
Zone Priority Minimum
Response Time
Cumulative
Standard Frequency
Metro Zone 1 & 2 9 minutes 90% Monthly
Metro Zone 3 & 4 20 minutes 90% Monthly
Metro Zone 5 30 minutes 90% Monthly
Rural Zone 1 & 2 20 minutes 90% Quarterly
Rural Zone 3 & 4 30 minutes 90% Quarterly
Rural Zones 5 40 Minutes 90% Quarterly
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Pursell, Jr. & City Council
REPORT FROM: Daniel Perkins, Fire Chief REVIEWED BY: AP AGENDA ITEM: Surplus of E-143, a 2001 Ferrara 1000 GPM Fire pumper to be sold to Laton Volunteer Fire Department.
ACTION REQUESTED: ___Ordinance __√__Resolution √ Motion ______Receive/File
EXECUTIVE SUMMARY
The Fire Department has utilized a 2001 Ferrara Fire engine for the past 23 years with great effect for the community. However, with the transition to professional service and Measure E proceeds, 3 newer Fire Engines have been acquired. Operational necessity and lack of space have made E-143 expendable. In addition, the engine is unable to respond to Code 3 emergencies (lights and sirens) due to issues with the emergency lighting system. The repairs needed have been estimated at ~$40,000. It’s millage is at 77,651.
Staff has determined the best course of action for this equipment is to surplus and sell the engine. The Laton Volunteer Fire Department has approached the city regarding a need for equipment. Kingsburg Fire has had a long-standing relationship with Laton as they share a Mutual-Aid area that we have supported.
While KFD has transitioned into a career based professional agency, Laton has remained 100% volunteer with a limited budget. In the summer of 2023, Laton was dealt a blow to their volunteer fire agency when vandals poured dirt into the fuel tank of their only Fire Engine while attending a brush fire. This resulted in severe damage to the fuel system and motor of the only fire engine for the community.
Given these circumstances, staff recommends that engine 143 be surplused and sold to the Laton Volunteer Fire Department. KFD recently purchased a surplus Fire engine from the City of Fresno in 2023 for $3,500.
Staff recommends the council authorize the sale of E-143 for the same amount ($3,500).
RECOMMENDED ACTION BY CITY COUNCIL
1. Adopt Resolution 2024-018 finding Fire Engine 143 as surplus.
2. Approve the sale of Fire Engine 143 to Laton Volunteer Fire Department
POLICY ALTERNATIVE(S)
1. Council could choose to not support the surplus of the Fire engine and reject the sale of the engine which would cause a decrease in mutual aid received by Laton on larger fires emergency incidents experienced in Kingsburg
REASON FOR RECOMMENDATION/KEY METRIC
1. Financial Stability
FINANCIAL INFORMATION
Meeting Date: 03/20/2023
Agenda Item: 5.4 & 5.5
FISCAL IMPACT:
1. Is There A Fiscal Impact? Yes (Positive)
2. Is it Currently Budgeted? No
3. If Budgeted, Which Line? N/A
FINANCIAL SUMMARY
None
PRIOR ACTION/REVIEW
None
BACKGROUND INFORMATION
Inter-agency sales of equipment are common to help alleviate financial burden and assist communities in need.
ATTACHMENTS
1. Resolution 2024-018
2. Letter from General Manager, Daniel Chapa- Laton Community Facilities District
RESOLUTION NO. 2024-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KINGSBURG DECLARING A CERTAIN FIRE VEHICLE AS SURPLUS WHEREAS, from time to time the City has vehicles that are no longer in use; and WHEREAS, the Fire Department has declared this vehicle surplus and ready for appropriate disposal; and
WHEREAS, the surplus vehicle is identified as follows:
Item VIN#:
2001 Ferrara Fire Engine 4S7CT2395YC032509
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Kingsburg does hereby approve the request to declare afore mentioned vehicle surplus and approves disposal as appropriate.
*******
I, Abigail Palsgaard, City Clerk of the City of Kingsburg, do hereby certify that the foregoing resolution was duly passed and adopted at a regular meeting of the Kingsburg City Council held on the 20th day of March, 2024, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Abstain: Councilmembers:
Abigail Palsgaard, City Clerk
City of Kingsburg
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Pursell, Jr. & City Council
REPORT FROM: Community Services Director Adam Castaneda REVIEWED BY: CW AGENDA ITEM: Special Event Street Closure Requests for Kingsburg Community Church ACTION REQUESTED: ___Ordinance ___Resolution ___Motion _____Receive/File
EXECUTIVE SUMMARY
On October 5, 2022, the City Council approved the updated Special Event Application and the street closure policy update. The policy states that all closures of central commercial streets must be approved by the Council unless there is a pre-approved agreement.
Under this policy, local non-profit organizations can request the closure of central commercial streets for community-based events. Applications must be received at least forty-five (45) days before the proposed event date for Council approval. Administrative approval must be sought and granted for event rescheduling due to inclement weather forecasts or emergencies.
Kingsburg Community Church is submitting three requests for partial street closures for their upcoming community events.
1) Closure of Ellis Street between Smith Street and Lincoln Street for their “Youth Ministries Auction/Dinner” event on April 19, 2024, from 2 p.m. to 9 p.m. (Closure to take place after Washington school release time) 2) Closure of Smith Street between Ellis Street and Draper Street for their “VBS Block Party” event on August 1, 2024, from 12 p.m. to 9 p.m.
3) Closure of Smith Street between Ellis Street and Draper Street for their “Costume Carnival” event on October 27, 2024, from 2 p.m. to 9 p.m. (Closure to take place after Washington school release time) This event will be open to the public and will consist of live music, community fellowship, and food. Staff believes the proposed event meets most current policy guidelines and is eligible for street closure consideration by the Council. The application has been distributed internally for departmental input and has received several conditions of approval.
Additional conditions of approval:
• Fire lane to be maintained between vendors in case of an emergency. • No vehicle access allowed within the street closure during event hours. • Additional trash receptacles and restrooms to be ordered based on attendance projections. • At least one (1) green organic trash cart on site for food vendors to discard food waste. • Certificate of liability insurance listing the City of Kingsburg as additionally insured. • Street closures on weekdays are to take place after Washington school release times.
Meeting Date: 03/20/2024
Agenda Item: 5.6, 5.7 & 5.8
RECOMMENDED ACTION BY CITY COUNCIL
1. Staff has evaluated the application for policy compliance and has no pending concerns regarding the application.
POLICY ALTERNATIVE(S)
1. The council could choose not to approve the requested closures.
STRATEGIC INITIATIVE
1. Preserve the Kingsburg Experience
FINANCIAL INFORMATION
PRIOR ACTION/REVIEW
None.
ATTACHED INFORMATION
1. Completed Special Event Applications
FISCAL IMPACT:
1. Is There A Fiscal Impact? No
2. Is it Currently Budgeted? N/A
3. If Budgeted, Which Line? N/A
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Pursell, Jr. & City Council
REPORT FROM: David Peters, City Engineer REVIEWED BY: AJH AGENDA ITEM: Transit Oriented Development (TOD) Program Application ACTION REQUESTED: ___Ordinance __√ __Resolution √ Motion Receive/File
EXECUTIVE SUMMARY
The city has been working with Fresno County Rural Transit Agency to select a location for a partnership project to install a resiliency hub that supports carport solar & battery infrastructure and EV charging. Council previously has provided direction to staff to pursue these efforts based upon funding availability. Given the timing of already planned (and now completed) city parking lot improvements on Marion St. and Smith St. locations, as well as some physical limitations of those locations (trees, second story living, etc.), it was determined the remaining Smith St parking lot (behind Los Pepes and Model Drug) would be the best candidate for these improvements. As part of the FY24 budget, the council approved funding in the Capital Improvement Program to improve this parking lot. Concurrently, Fresno County Rural Transit Agency allocated funding to partner with the city on eligible improvements. In discussing the partnership, it was determined the city would seek funding via the Measure C Transit Oriented Development (TOD) Program to supplement/replace city funds with grant funding and to help enhance the project benefits via battery backup, additional EV chargers and to pay for necessary panel and transformer upgrades (if necessary).
Total project cost = $987,028
FCRTA Contribution = $600,000
TOD Grant Funds = $387,028
On January 12, 2024, the Fresno Council of Governments (FCOG) Policy Board officially initiated the Cycle XII Measure C Transit Oriented Development Program Call for Projects. A grant application package for these funds was submitted by the City of Kingsburg on February 27, 2024. The grant application project includes reconstruction of the Smith Street parking lot located between Draper Street and Lewis Street including installation of a photovoltaic (solar) system and electrical vehicle charging stations.
The program requires a Council resolution authorizing submission of the project application.
RECOMMENDED ACTION BY CITY COUNCIL
1. Adopt Resolution 2024-019 authorizing submission of an application to the Fresno Council of Governments for funding under the Measure C Transit Oriented Development (TOD) Grant; the execution of a standard agreement if selected for such funding; and any related documents necessary to participate in the Fresno County Measure C Transit Oriented Development (TOD) Program.
POLICY ALTERNATIVE(S)
1. The City could choose to withdraw the project application.
Meeting Date: 3/20/2024
Agenda Item: 5.9
REASON FOR RECOMMENDATION/KEY METRIC
1. Financial Stability
FINANCIAL INFORMATION
FINANCIAL SUMMARY
Projects will be included in the FY 24-25 Budget.
PRIOR ACTION/REVIEW
The City provided staff direction to submit the grant application.
BACKGROUND INFORMATION
See executive summary.
ATTACHED INFORMATION
1. Resolution 2024-019.
2. Submitted TOD Grant
Application
FISCAL IMPACT:
1. Is There A Fiscal Impact? No
2. Is it Currently Budgeted? Yes
3. If Budgeted, Which Line? N/A
RESOLUTION NO. 2024-019
A RESOLUTION OF THE CITY COUNCIL OF KNGSBURG AUTHORIZING
SUBMISSION OF AN APPLICATION TO THE FRESNO COUNCIL OF
GOVERNMENTS FOR FUNDING UNDER THE MEASURE C TRANSIT
ORIENTED DEVELOPMENT (TOD) GRANT; THE EXECUTION OF A STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING; AND ANY RELATED
DOCUMENTS NECESSARY TO PARTICIPATE IN THE FRESNO COUNTY MEASURE C TRANSIT ORIENTED DEVELOPMENT (TOD) PROGRAM.
WHERAS, the Fresno County TOD Program was created by the 2006 Measure C Extension Plan; and
WHEREAS, in January 2024, the Fresno Council of Governments released a call for projects to be funded under the Measure C TOD Program; and WHEREAS, in response to the call for projects, the City of Kingsburg, a political subdivision of the State of California, wishes to apply for an receive an allocation of funds through the Measure C TOD Program.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Kingsburg that the City of Kingsburg shall submit to the Fresno Council of Governments an application to receive funding under the Measure C TOD Program in the amount of $387,028.
BE IT FURTHER RESOLVED, the City Council of the City of Kingsburg authorizes the City Manager to execute in the name of the City of Kingsburg, the application, the Standard Agreement, and all other documents required by the Fresno Council of Governments in the event that a successful grant award is made to the City. ******
I, Abigail Palsgaard, City Clerk of the City of Kingsburg, do hereby certify that the foregoing resolution was duly passed and adopted at a regular meeting of the Kingsburg City Council held on the 20th day of March, 2024, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Abstain: Councilmembers:
Abigail Palsgaard, City Clerk
City of Kingsburg
City of Kingsburg
1 Capital Improvement Project Application
Project Title: Smith Street Parking Lot Smith Street Parking Lot Electric Vehicle Charging Facility and Infrastructure Improvements
Sponsoring Jurisdiction: City of Kingsburg
Application Checklist:
One reproducible hard copy and 1 CD/flash drive of the complete application Completed application form
Board/Council resolution authorizing project application (due prior to Fresno COG Policy Board meeting on April 25, 2024)
Vicinity maps showing project locations, and local/regional streets, bicycle, transit and highway facilities within and near the project area
Documentation of support for the project from community groups or individuals (highly encourage)
Aerial photo and/or other photographs depicting existing conditions in the project area Person Authorized to Submit Application:
I certify that I have reviewed the TOD Capital Improvement Projects Program Guidelines and the information submitted in this application is accurate and in accordance with the guidelines.
Name: David Peters Title: City Engineer
Signature: Date: February 27, 2024
`
`
2 Project Summary
1. Project Title: Smith Street Parking Lot Smith Street Parking Lot Electric Vehicle Charging Facility and Infrastructure Improvements
2. Project description: Through a Fresno COG Transit Oriented Development Grant, the City has developed a Downtown Specific Plan that presents opportunities to promote multi-modal transportation, including, walking, biking, transit, and sustainable parking opportunities within the downtown area.
The proposed project will construct electric vehicle (EV) charging stations in an existing downtown parking lot that would integrate into the City’s alternative modes of travel such as shared mobility devices, transit, and pedestrian travel. The project will also upgrade and existing contained within the parking lot.
The City has a unique opportunity to partner with Fresno County Rural Transit Agency (FRCTA) on this joint project to develop electric vehicle charging facilities which will be partially served via a photovoltaic (solar) system. The charging facilities will not only provide EV drivers the opportunity to charge with the ability to access the various multi-model transportation opportunities in the downtown area, the facilities will also be available to FRCTA for use in fleet charging. The improvements will require infrastructure upgrades to the existing parking lot to accommodate the EV charging and photovoltaic facilities including the upgrading of a transit stop contained within the parking lot.
A project location map is attached as Figure 1. Figures 2-1 through 2-4 present photos of the project areas.
3. Total project cost: $987,028
4. Total TOD fund request: $387,028
5. Sponsoring jurisdiction: City of Kingsburg
6. Primary contact person: David Peters
7. Title: City Engineer
8. Address: 1401 Draper Street, Kingsburg, CA 93631
9. Phone: (559) 299-1544 x 111
10. E-mail: [email protected]
11. Other project partners: Fresno County Rural Transit Agency Kingsburg Chamber of Commerce
Kingsburg Business Improvement District
3 Capital Improvement Project Description
1. Introduction
Downtown Kingsburg is a unique destination for both residents of the City as well as travelers passing through the area. The Swedish-themed architecture and atmosphere is a cultural attraction for many visitors. Although the downtown area is occupied by several successful businesses as well as City Hall, there are opportunities to incorporate new and revitalized development within this area. To capture the opportunity to pursue economically robust, pedestrian friendly, bicycle friendly, transit-oriented development, the City of Kingsburg has adopted a Strategic Plan, which as funded through the FCOG’s Transit Oriented Development Grant Program, to guide staff and developers towards these goals.
The downtown area is also the central commercial district of the city. The land uses surrounding the downtown area are a mixture of residential and commercial developments which gradually transitions to mostly residential development further away from the downtown area. The downtown district is adjacent to the Union Pacific Railroad tracks and its history and development is directly tied to historic railroad operations. The historic Kingsburg Train Depot recently was completely renovated and currently has a vibrant visitor base and active historical society managing the facility and events. The City is currently experiencing significant interest in developing mixed use project within the downtown area including the recent completion of the Apotek mixed use project which constructed approximately 5,000 square feet of residential units above 5,500 square feet of commercial space, and the proposed Stone Plaza which proposes 10 residential units above 8,500 square feet of commercial space.
As more development is directed downtown, the need to provide mobility through alternate transportation modes becomes essential. The Strategic Plan identified several improvements that will support transit and other alternate modes of transportation including development of electrical vehicle (EV) charging facilities and parking facilities to serve as a multi-modal hub for access to alternative modes of transportation such as shared mobility devices, transit, and pedestrian travel. Additionally, the facilities will also be available to serve as fleet charging for FRCTA which will promote transit use in the City.
The proposed project would rehabilitate an existing parking lot on Smith Street between Draper Street and Lewis Street to include new EV charging stations with an associated photovoltaic system. The project will also modernize and reconstruct a transit stop integrated into the parking lot. This will meet the goals of providing sustainable parking facilities that serve as multi-mode hubs per the Strategic Plan. These improvements will be accomplished by partnering with FCRTA. FCRTA has secured funding for the EV charging and photovoltaic systems, however the City is seeking funding for the remaining infrastructure improvements to accommodate the installation of the EV and photovoltaic facilities. This project will support multi-modal transportation opportunities including pedestrian and bicycle mobility within the downtown area 4 which will result in increased transit use as well as other travel modes such as trolly and ride share services.
2. Nexus to Transit Oriented Development
Downtown Kingsburg has recently had the opportunity to advance mixed use and other progressive projects in the downtown area. As these developments have been proposed, staff has recognized the importance of addressing the needs of residents by providing multi-modal, walkable, and transit-oriented development improvements. The City realizes that the attractiveness of these types of mixed use projects is increased when diverse transportation opportunities are provided. The proposed improvements identified in the City’s Downtown Strategic Plan implement strategies and policy changes that will support these sustainable transportation strategies within the downtown area in the form of infrastructure improvements. Specifically, the proposed project will allow visitors to the City’s downtown area to more easily traverse the downtown area while vehicles are being charged, via walking, biking, transit, ride share or other modes of travel. Based on multiple public presentations of the Strategic Plan, citizen feedback provided a high level of support for these improvements and conveyed a higher likelihood of accessing the downtown area via transit or alternate modes of travel once the improvements are completed.
3. Land Use Characteristics of the Project Area
According to the California Department of Finance, Kingsburg has an approximate population of 12,460. The median household income for the city is $73,349 and sixty seven percent of Kingsburg housing is owner occupied.
In the downtown area residential housing currently is less than 10 percent of existing building area. The City’s goal is to increase that percentage to approximately 25 precent.
Kingsburg possesses a robust downtown including major employment centers such as Kingsburg City Hall, RPS Real Estate, Kingsburg Insurance, Van Beurden Insurance, and Payality Payroll Services. There are also numerous vibrant restaurants and boutique shops that support the Swedish Village tourist industry. There are not currently any industrial oriented businesses or affordable housing developments in the downtown area.
4. Transportation Characteristics of the Project Area
Employers, employees, residents, and visitors have traditionally relied upon passenger car related transportation to access the downtown area. The City recognizes the multiple benefits of transitioning to a more robust multi-model transportation model including access, health, climate, and numerous social benefits. The City’s Strategic Plan identified deficiencies in the downtown infrastructure that can serve as a barrier to accessing alternate transportation modes.
Currently there are no public facilities for charging electric vehicles in the 5 downtown area. EV charging facilities will allow for visitors to charge vehicles via the Smith Street parking lot which will serve as a hub for access to various multi-modal transportation alternatives such as biking, walking, transit or ride sharing. The charging facilities will also be available for FCRTA transit fleet charging.
The proposed project is expected to promote pedestrian, bicycle and transit modes of travel within the downtown Kingsburg area and will allow residents to adopt a lifestyle relying upon alternate modes of travel which will have health, climate and other benefits.
There is not currently bus rapid transit service in Kingsburg.
5. Urban Design & Parking Policy
The City has adopted a Form Based Code for development in the downtown core area of the city. The Form Based Code includes policies which emphasizes alternative modes of travel, including transit. The parking requirements were developed to encourage residents and visitors to the downtown area to travel within the downtown area absent the access to a passenger car. Some of the infrastructure characteristics include wide sidewalks, bus stops, pedestrian friendly intersections, and relaxed parking requirements.
The City’s recently adopted the Downtown Strategic Plan which was developed through a Fresno COG Transit Oriented Development Grant. This plan identifies and recommends development of additional facilities to support transit-oriented developments, including the addition of EV charging stations with links to multimodal transportation opportunities.
The proposed project will continue the momentum of converting downtown Kingsburg into a more walkable, multi-modal, and transit-oriented development area. It is expected that the project improvements will increase visitor traffic into the downtown area enhancing the already robust downtown activities, attracting new multi-use and transitoriented developments, and highlighting already popular attractions such as the Historic Train Depot and numerous Swedish Village activities and events.
6. Green Building
The project improvements will provide a link between EV use and multi-modal travel opportunities which will promote walking, bicycling and use of transit and other alternate modes of travel.
7. Quality of Project and Additional Information
The City’s Strategic Plan was presented to numerous groups including the following:
6 • Kingsburg City Council
• Kingsburg Planning Commission
• Kingsburg Economic Development Committee
• Chamber of Commerce
• Business Improvement District
• Friends of the Kingsburg Depot
After formally presenting the plans in public meetings, there was resounding community support for the project by both visitors and business owners. There was a consensus from the public that implementing the improvements described in the plan will increase visitors into the downtown area and would be a valuable attractant for new businesses and mixed development projects. As the City has met with perspective developers, they have strongly agreed that upgrading and providing alternative modes of travel in the downtown area would provide significant advantages to delivering successful commercial and retail projects in downtown Kingsburg. The additional of EV charging facilities and upgrading transit stops were robustly supported by the community.
Several letters of support for the proposed project are attached to this application.
There are not currently any identifiable obstacles to this project.
8. Project Schedule and Scope of Work
The following is the proposed Scope of Work for completion of the proposed project.
Workplan
Task 100 Kickoff Meeting
▪ Meet with staff and discuss project objectives, schedules, reviews, and obtain available record information.
Task 200 Preliminary Engineering
▪ Develop schematic design drawing and cost estimates.
▪ Conduct review with City staff and stakeholders.
Task 300 Final Design
▪ Provide final engineering drawings, specifications, estimate and contract documents for construction.
▪ Review contract documents with City staff and stakeholders. ▪ Conduct advertising and bidding of project.
7 Task 400 Construction Phase
▪ Hold pre-construction meeting with Contractor.
▪ Provide inspection and oversight during construction including preparing request for information, change orders, etc.
▪ Conduct final inspection and closeout of construction contract.
A preliminary schedule for completion of the project is presented as Figure 3.
Project expenses (TOD fund)
Item Amount
Engineering $41,443
Environmental Documentation $5,000
Right of Way $0
Construction $340,585
A detailed cost estimate is included as Figure 4.
Project Revenue (all sources)
Source Year
Year 1 ($) Year 2 ($) Year 3 ($) Year 4 ($)
TOD 46,443 340,585
Local 50,000 550,000
State
Federal
Private
Total 96,443 890,585
CITY OF KINGSBURG
Smith Street Parking Lot EV Charging
Facility Improvements
FIGURE 2-1
View of parking lot from Smith Street
View of parking lot looking toward Smith Street
CITY OF KINGSBURG
DRAPER STREET BIKE LANES
FIGURE 2-2
View of parking lot looking toward Smith Street
View of parking lot from Smith Street showing transit stop City Hall anchors the
downtown corridor.
Opportunities for trolleys or
other modes of transit exist in
downtown.
Swedish themed architecture
is consistent within the
downtown corridor.
FIGURE 2-3
Art displays are destination
pieces and prominent in
downtown Kingsburg.
Improved pedestrian and bicycle
access will bring even more visitors
to downtown.
Vibrant businesses exist within
the downtown area.
FIGURE 2-4
ID Task Name Duration Start Finish
1 Task 100 - Kickoff meeting 1 day Mon 7/1/24 Mon 7/1/24 2 Task 200 - Preliminary Engineering 60 days Tue 7/2/24 Mon 9/23/24 3 Task 300 - Final Design 60 days Tue 9/24/24 Mon 12/16/24 4 Task 400 - Construction Phase 80 days Tue 12/17/24 Mon 4/7/25 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2022 2023
SMITH STREET PARKING LOT EV CHARGING FACILITIES
PROJECT SCHEDULE
FIGURE 3
Tue 2/27/24 PETERS ENGINEERING GROUP
City of Kingsburg
2/27/2024
FIGURE 4
No. Item Description Quantity Unit Unit Cost Cost
1 Mobilization 1 LS $15,000 $15,000
2 Traffic Control 1 LS $2,000 $2,000
3 Dust Control 1 LS $1,000 $1,000
4 Clearing and Grubbing 1 LS $16,000 $16,000
5 Hot Mix Asphalt Concrete(F) 275 TN $185 $50,875
6 Valley Gutter 320 LF $30 $9,600
7 Misc Concrete Improvements 1 LS $55,000 $55,000
8 Pavement Delineation 1 LS $12,000 $12,000
9 Trash Enclosure 1 EA $15,000 $15,000
10 Lighting 1 LS $65,000 $65,000
11 Miscellaneous Facilities and Operations 1 LS $40,000 $40,000 (F) - Final Pay Quantity Subtotal= $281,475
10% Contingency = $28,148
Construction Costs = $309,623
Design Engineering (15%) = $46,443
Construction Engineering & Testing (10%) = $30,962
FCRTA Funds = $600,000
TOTAL = $987,028
Smith Street Parking Lot Smith Street Parking Lot Electric Vehicle Charging Facility and Infrastructure Improvements
S:\2024\24-002\TOD Grant App\Smith Street Parking Lot - Cost Estimate 1 of 1
February 26, 2024
Mr. David Peters, PE
City Engineer
City of Kingsburg
1401 Draper Street
Kingsburg, California 93631
Subject: Fresno Council of Governments – Measure C TOD Program Cycle XII Application Smith Street Parking Lot Smith Street Parking Lot Electric Vehicle Charging Facility and Infrastructure Improvements
I am sending you this letter expressing my support for the subject project. Downtown Kingsburg is a unique destination for both residents of the city as well as travelers passing through the area. The Swedish-themed architecture and atmosphere is a cultural attraction for many visitors. Although the downtown area is occupied by several successful businesses and City Hall, there are opportunities to incorporate new and revitalized development within this area. In order to capture the opportunity to pursue economically robust, pedestrian and bicycle friendly, and transit oriented development, the City of Kingsburg has identified the need for the infrastructure improvements identified in the recently completed strategic plan to serve these alternative transportation modes in the downtown area.
The City’s application request to fund these infrastructure improvements for the downtown area is very important and will serve as a valuable tool to assist in the progressive redevelopment attraction of new and diverse business in this area.
I am exciting about this funding opportunity and look forward to the award of the grant.
Sincerely,
Jolene Polyack
Jolene Polyack
Economic Development Coordinator
City of Kingsburg
1401 Draper Street, Kingsburg, CA 93631-1908
(559)897-5821 Fax: (559)897-5568
Mayor Brandon Pursell, Jr.
Mayor Pro Tem Vince Palomar.
Council Member Laura North
Council Member Staci Smith
Council Member David M. Silva
City Manager Alexander J. Henderson
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Pursell, Jr. & City Council
REPORT FROM: Daniel Galvez- Public Works Director REVIEWED BY: AJH AGENDA ITEM: Solar Project Update – Wells 13 & 16, Police Department & Public Works Yard ACTION REQUESTED: ___Ordinance ___Resolution ____Motion ____Receive/File
EXECUTIVE SUMMARY
City Staff has continued to work with SiteLogic on the Solar Project for Wells 13 & 16, Police Department and Public Works Yard. Since the award date minor design changes have occurred for the Police Department, the change has a few panels moving to the north side of the police department parking lot. Site logic has surveyed and performed geo technical analysis of each project locations. The structural CAD blocks and architectural backgrounds for all four sites have also been completed. Work on the electrical design is ongoing; some of the equipment has also been submitted for review to PG&E. Plan submittal and review has also been initiated with the building department and is anticipated to occur in late June or early July. The Public Works Department has a few tasks to complete prior to construction starting. African Fern Pines will be planted along Skansen at Erling Park in addition to either Texas Ranger shrub or Carpentieria California for the fence along the turtle pond. Public Works Staff will also be removing the trees at the Police Department that will interfering with the Solar installation. The installation of plants at Erling will take place over the next two weeks and will be completed by the end of March. The tree removal will take place through the Spring at the Police Department.
Tentative Construction to start dates:
Police Department: October 7, 2024
Public Works Yard: October 21, 2024
Well 13: October 14, 2024
Well 16: October 28, 2024
RECOMMENDED ACTION BY CITY COUNCIL
1. Informational only.
POLICY ALTERNATIVE(S)
1. None
STRATEGIC GOAL(S) MET:
1. Financial Stability
2. Community Engagement
FINANCIAL INFORMATION
Meeting Date: 03/20/2024
Agenda Item: 6.1
FISCAL IMPACT:
1. Is There A Fiscal Impact? Yes
2. Is it Currently Budgeted? No
3. If Budgeted, Which Line? N/A
PRIOR ACTION/REVIEW
N/A
BACKGROUND INFORMATION
Net Energy Metering (NEM) - governs how rates are calculated for rooftop solar customers as their panels interact with the grid throughout the day. The NEM tariff allows customers to receive a financial credit on their electricity bills when their rooftop solar system sends excess electricity to the electric grid.
The California Public Utilities Commission (CPUC) unanimously voted to approve NEM 3.0. Under NEM 3.0, customers of PG&E, SCE, and SDG&E with solar systems will receive an average of 8 cents per kWh for the excess power they push onto the grid. This is roughly 75% less than the average export rate of 30 cents per kWh under NEM
2.0. IOU customers have until April 14, 2023, to grandfather a new solar system into NEM 2.0 by submitting a complete interconnection application. The biggest change between NEM 2.0 and NEM 3.0 is the value of export rates — or the price of excess electricity produced by solar systems. Under NEM 3.0, residential solar export rates will be based on an “Avoided Cost Calculator” instead of retail rates (what customers pay for electricity).
NEM 3.0 key takeaways:
• Current solar owners will remain under their existing net metering policy. • Solar owners under NEM 3.0 will earn around 75% less for the excess electricity they push onto the grid. • UnderNEM 3.0,the payback period for solar and battery storage systems will be roughly equalto the payback period of solar only systems.
ATTACHED INFORMATION
1. Estimated Schedule
ID Task ModeTask Name Duration Start Finish 1 PUBCAL000565 City of Kingsburg 414 days Tue 10/17/23 Fri 5/16/25 8 Kingsburg Solar - 4 Sites 380 days Mon 12/4/23 Fri 5/16/25 9 Engineering 380 days Mon 12/4/23 Fri 5/16/25 10 Survey 2 days Mon 12/4/23 Tue 12/5/23 11 Receive Survey Reports 10 days Wed 12/6/23 Tue 12/19/23 12 Geotech 2 days Thu 12/7/23 Fri 12/8/23 13 Receive Geotech Reports 10 days Mon 12/11/23 Fri 12/22/23 14 Equipment Submittal Review 4 days Mon 12/25/23 Thu 12/28/23 15 Submit PW Service Upgrade Application to PG&E 1 day Fri 2/23/24 Fri 2/23/24 16 PG&E Review of PW Service Upgrade Application 37 wks Mon 2/26/24 Fri 11/8/24 17 Receive CAD Blocks 33 days Tue 1/9/24 Thu 2/22/24 18 Architectural Backgrounds 8 days Fri 2/23/24 Tue 3/5/24 19 Electrical Site Plan / SLD's 20 days Wed 3/6/24 Tue 4/2/24 20 50P Customer Reviews 10 days Wed 4/3/24 Tue 4/16/24 21 50P Revisions 10 days Wed 4/17/24 Tue 4/30/24 22 90P Compilation 4 days Wed 5/1/24 Mon 5/6/24 23 90P Customer Review 6 days Tue 5/7/24 Tue 5/14/24 24 Development of Final Permit Sets 9 days Wed 5/15/24 Mon 5/27/24 25 Submit to AHJ for Review 15 days Thu 6/6/24 Wed 6/26/24 26 AHJ Approval 25 days Thu 6/27/24 Wed 7/31/24 27 Steel/Inverter Procurement 8 wks Thu 8/1/24 Wed 9/25/24 28 Construction - Police Station 124 days Mon 10/7/24 Thu 3/27/25 29 USA / GPR 5 days Mon 10/7/24 Fri 10/11/24 30 Lightpole Removal 2 days Mon 10/7/24 Tue 10/8/24 31 System Layout 3 days Mon 10/7/24 Wed 10/9/24 32 Site Services (Temp Fence Installation, Toilet/Handwash Station) 1 day Mon 10/7/24 Mon 10/7/24 33 Drill, Set, Pour 5 days Mon 10/14/24 Fri 10/18/24 34 Steel Erection 5 days Mon 10/21/24 Fri 10/25/24 35 Horizontal Boring 13 days Mon 10/28/24 Wed 11/13/24 36 Mount Modules 6 days Mon 10/28/24 Mon 11/4/24 37 DC Electrical 7 days Tue 11/5/24 Wed 11/13/24 38 AC Electrical 21 days Thu 11/14/24 Thu 12/12/24 39 Request Utility Shutdown 25 days Fri 12/13/24 Thu 1/16/25 40 Utility interconnection (Tentative) 1 day Fri 1/17/25 Fri 1/17/25 41 City Final Inspection Approval 1 day Mon 1/20/25 Mon 1/20/25 42 PTO Inspection 15 days Tue 1/21/25 Mon 2/10/25 43 Receive PTO 1 day Tue 2/11/25 Tue 2/11/25 44 Commissioning 10 days Wed 2/12/25 Tue 2/25/25 45 Request Final PTO Inspection 1 day Wed 2/26/25 Wed 2/26/25 46 Final PTO Inspection 1 day Thu 2/27/25 Thu 2/27/25 47 Substantial Completion 6 days Fri 2/28/25 Fri 3/7/25 48 Punch List 7 days Mon 3/10/25 Tue 3/18/25 49 Performance Test 6 days Wed 3/19/25 Wed 3/26/25 50 Final Completion 1 day Thu 3/27/25 Thu 3/27/25 51 Construction - Well Site #13 125 days Mon 10/14/24 Fri 4/4/25 52 USA / GPR 5 days Mon 10/14/24 Fri 10/18/24 53 System Layout 5 days Mon 10/14/24 Fri 10/18/24 54 Site Services (Temp Fence Installation, Toilet/Handwash Station) 1 day Mon 10/14/24 Mon 10/14/24 55 Drill, Set, Pour 5 days Mon 10/21/24 Fri 10/25/24 56 Steel Erection 5 days Mon 10/28/24 Fri 11/1/24 57 Horizontal Boring 2 days Mon 11/4/24 Tue 11/5/24 58 Mount Modules 6 days Mon 11/4/24 Mon 11/11/24 59 DC Electrical 13 days Tue 11/12/24 Thu 11/28/24 60 AC Electrical 18 days Fri 11/29/24 Tue 12/24/24 61 Request Utility Shutdown 25 days Wed 12/25/24 Tue 1/28/25 62 Utility Interconnection (Tentative) 1 day Wed 1/29/25 Wed 1/29/25 63 Mechanical Completion 1 day Thu 2/6/25 Thu 2/6/25 64 Demobilization 1 day Wed 2/12/25 Wed 2/12/25 65 PTO Inspection (SCE) 15 days Thu 2/13/25 Wed 3/5/25 66 Receive PTO 1 day Thu 3/6/25 Thu 3/6/25 67 Commissioning/Testing 6 days Thu 3/6/25 Thu 3/13/25 68 Substantial Completion 7 days Fri 3/14/25 Mon 3/24/25 69 Punch List 6 days Tue 3/25/25 Tue 4/1/25 70 Performance Test 1 day Wed 4/2/25 Wed 4/2/25 71 Final Completion 2 days Thu 4/3/25 Fri 4/4/25 72 Construction - Public Works 150 days Mon 10/21/24 Fri 5/16/25 73 USA / GPR 5 days Mon 10/21/24 Fri 10/25/24 74 System Layout 5 days Mon 10/21/24 Fri 10/25/24 75 Site Services (Temp Fence Installation, Toilet/Handwash Station) 3 days Mon 10/21/24 Wed 10/23/24 76 Drill, Set, Pour 5 days Mon 10/28/24 Fri 11/1/24 77 Steel Erection 5 days Mon 11/4/24 Fri 11/8/24 78 Horizontal Boring 3 days Mon 11/11/24 Wed 11/13/24 79 Mount Modules 6 days Thu 11/14/24 Thu 11/21/24 80 DC Electrical 13 days Fri 11/22/24 Tue 12/10/24 81 AC Electrical 48 days Wed 12/11/24 Fri 2/14/25 82 PG&E Places Mitigation Work on Construction Schedule 1 day Mon 11/11/24 Mon 11/11/24 83 Wait on Schedule for PG&E Mitigations to Be Completed 3 mons Tue 11/12/24 Mon 2/3/25 84 PG&E Mitigations Completed 5 days Tue 2/4/25 Mon 2/10/25 85 Request Utility Shutdown 25 days Mon 2/17/25 Fri 3/21/25 86 Interconnection and Service Upgrade 3 days Mon 3/24/25 Wed 3/26/25 87 Mechanical Completion 1 day Mon 3/24/25 Mon 3/24/25 88 Demobilization 1 day Tue 3/25/25 Tue 3/25/25 89 PTO Inspection 15 days Wed 3/26/25 Tue 4/15/25 90 Receive PTO 1 day Wed 4/16/25 Wed 4/16/25 91 Commissioning/Testing 6 days Thu 4/17/25 Thu 4/24/25 92 Substantial Completion 7 days Fri 4/25/25 Mon 5/5/25 93 Punch List 6 days Tue 5/6/25 Tue 5/13/25 94 Performance Test 1 day Wed 5/14/25 Wed 5/14/25 95 Final Completion 2 days Thu 5/15/25 Fri 5/16/25 96 Construction - Well Site #16 129 days Mon 10/28/24 Thu 4/24/25 97 USA / GPR 5 days Mon 10/28/24 Fri 11/1/24 98 System Layout 5 days Mon 10/28/24 Fri 11/1/24 99 Site Services (Temp Fence Installation, Toilet/Handwash Station) 2 days Mon 10/28/24 Tue 10/29/24 100 Drill, Set, Pour 3 days Wed 10/30/24 Fri 11/1/24 101 Mount Modules 4 days Mon 11/4/24 Thu 11/7/24 102 Horizontal Boring 5 days Fri 11/8/24 Thu 11/14/24 103 DC Electrical 11 days Fri 11/15/24 Fri 11/29/24 104 AC Electrical 14 days Mon 12/2/24 Thu 12/19/24 105 Request Utility Shutdown 25 days Fri 12/20/24 Thu 1/23/25 106 Utility Interconnection (Tentative) 1 day Fri 1/24/25 Fri 1/24/25 107 Mechanical Completion 1 day Mon 1/27/25 Mon 1/27/25 108 Demobilization 1 day Tue 1/28/25 Tue 1/28/25 109 PTO Inspection 15 days Wed 1/29/25 Tue 2/18/25 110 Receive PTO 1 day Wed 2/19/25 Wed 2/19/25 111 Commissioning/Testing 18 days Thu 2/20/25 Mon 3/17/25 112 Substantial Completion 9 days Tue 3/18/25 Fri 3/28/25 113 Punch List 9 days Mon 3/31/25 Thu 4/10/25 114 Performance Test 9 days Fri 4/11/25 Wed 4/23/25 115 Final Completion 1 day Thu 4/24/25 Thu 4/24/25 D J F M A M J J A S O N D J F M A M J Half 1, 2024 Half 2, 2024 Half 1, 2025 Task Split Milestone Summary Project Summary
Inactive Task
Inactive Milestone
Inactive Summary Manual Task Duration-only Manual Summary Rollup Manual Summary Start-only Finish-only External Tasks External Milestone Deadline Progress Manual Progress Page 1 Project: City of Kingsburg Solar Date: Fri 3/15/24
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor Pursell, Jr. & Council Members
REPORT FROM: Alexander J. Henderson, City Manager; ICMA-CM REVIEWED BY: CW AGENDA ITEM: Measure C - Golden State Boulevard Project Update ACTION REQUESTED: ___Ordinance ___Resolution ___Motion _____Receive/File
EXECUTIVE SUMMARY
This item is intended to provide an update regarding the ongoing Golden State Boulevard Project. This “complete streets” project is located on Golden State Boulevard, a 14.1 mile stretch of historic Highway 99, generally from American Avenue in Fresno County south to Mission Street in the City of Kingsburg. The project area will pass through the cities of Fowler, Selma, and Kingsburg, as well as unincorporated areas of Fresno County, but within the sphere of influence of one of the three cities.
The reconstruction of Golden State Blvd. has been programmed in the Measure C program for over a decade, with preliminary designs beginning in 2010. The project has been in the construction phase for several months. Prior to beginning construction, the project management team (Fresno County) made the decision to break the construction into phases, driven by improvement requests of railroad facilities from Union Pacific Railroad.
Because the project includes several jurisdictions and twenty (20) railroad crossings, the railroad has treated revisions as one large project, essentially halting any approvals for individual crossings until all crossing locations meet their satisfaction.
These requests, if met, would significantly increase total project costs, so much so that the Fresno County Transportation Agency is concerned that too much of the Measure C funds would be used to improve the railroad facilities, as opposed to meeting the objectives as described above. For Kingsburg, this includes six crossing locations (Earl St., Draper St., Sierra St., Stroud Ave., Kamm Ave., and Mountain View). This has had implications on overall construction progress, including:
• Segmentation of paving improvements at/near railroad crossings. For example, motorist will notice that Simpson St. has received pavement reconstruction, but portions of the roadway near crossing were not reconstructed during the original project (Earl St. Draper St., Stroud Ave, and Kamm Ave.). - This was a cost-saving decision to avoid ripping out newly constructed pavement as a part of a later phase of construction, assuming final railroad approvals. - Note: Due to the condition of the Kamm/Bethel intersection and unknown timing of the next phase of construction, city staff pushed to have the intersection repaved, which was completed. • Delays in construction of at-grade crossings for two main locations in Kingsburg. Those two locations are the Stroud Ave. and Kamm/Bethel intersections. Both locations are scheduled to receive significant reconstruction, including:
- Stroud Ave.: Realignment of Stroud Ave. to align with the K-Corporate Center entrance, traffic light signalization, pavement reconstruction and railroad safety upgrades. - Kamm/Bethel: Grade change that raises the intersection to match the current railroad grade, traffic light signalization, pavement reconstruction and railroad safety upgrades. • We are going to coordinate pavement improvements that exist entirely in the city’s right-of-way, thus giving the railroad ability to delay this progress. For example, reconstructing the portion of Simpson St. at the Draper St. crossing.
Meeting Date: 03/20/2024
Agenda Item: 6.2
Addressing Union Pacific Railroad Comments
Over the past several months, project representatives from all parties have been meeting to discuss options for addressing the railroad’s requests and still delivering the intended project. The most recent plans are:
• One additional attempt to coordinate with the railroad because of the work that has been put in to get to a final resolution with them on all the rail crossings. • The estimated time frame is approximately three months from now to have the first construction & maintenance (C&M) agreements with UPRR. The strategy is to begin with the more comprehensive crossing(s) first. The C&M Agreement would be one per grade crossing. • Once the C&M Agreement(s) are approved, each rail crossing location can be bid by the respective city to better plan the work that is highly dependent on the schedule of UPRR. • Each crossing will require an operations & maintenance (O&M) agreement with each respective city and there will be a yearly cost associated with each crossing. A request was to get information from the American Avenue location with Fresno County to get an understanding of potential language and a rough cost.
• Next steps are to process an amendment for additional design costs for separating out the “gaps” and rail crossings from the plan set; provide revised plans to Fresno County and their contractor to price the “gaps” to process change order to complete the “gap” work by Fresno County’s current contractor. • The anticipated date to meet with UPRR is two weeks. Another meeting with the city/county working group will be scheduled after the meeting with UPRR to provide update.
If efforts are not successful in our discussion with UPRR, then FCTA/FCOG will move forward with the 2 rail crossing locations per City. This methodology has more impact on Selma and Fowler than Kingsburg, given we have 2 main crossing improvements of priority. Essentially, Fresno COG would allocate funding from Measure C so that each community could complete improvements at two (2) priority locations. For Kingsburg, this would be the Stroud Ave. and Kamm/Bethel locations. The theory behind this potential strategy would be to break out the improvements, thus limiting UPRR’s claim that they are all one connected project.
This item is information, and staff is happy to answer questions and take council and community input.
RECOMMENDED ACTION BY CITY COUNCIL
1. Informational only. Council may choose to provide direction.
POLICY ALTERNATIVE(S)
1. N/A
STRATEGIC INITIATIVE
1. Financial Stability
2. Community Safety
FINANCIAL INFORMATION
PRIOR ACTION/REVIEW
Council has provided necessary approvals as required since project inception.
BACKGROUND INFORMATION
This “complete streets” project is located on Golden State Boulevard, a 14.1 mile stretch of historic Highway 99, generally from American Avenue in Fresno County south to Mission Street in the City of Kingsburg. The project area will pass through the cities of Fowler, Selma, and Kingsburg, as well as unincorporated areas of Fresno County, but within the sphere of influence of one of the three cities.
FISCAL IMPACT:
1. Is There A Fiscal Impact? N/A
2. Is it Currently Budgeted? N/A
3. If Budgeted, Which Line? Measure C (Non-City)
The project objectives include:
• Rehabilitate pavement on Golden State Boulevard and cross-street intersections to preserve assets and minimize life-cycle costs
• Provide safe and convenient transportation access and circulation for motorized vehicles, bicyclists and pedestrians
• Increase motorist and pedestrian safety through improvements at twenty at-grade railroad crossings • Unify the corridor through roadway and landscape design consistency, while still preserving the unique character of each city
• Improve economic development opportunities through corridor enhancements.
This project is being delivered using the traditional design-bid-build model. Because it encompasses four different local agencies jurisdictions, FCTA and Fresno COG have taken responsibility for project delivery.
1. Phase 1 - Preliminary Engineering [Includes Preliminary Design/Engineering (PS&E) and Environmental] Fresno COG preformed the PA&ED and final design phases.
2. Phase 2 - Right-of-Way Acquisition - The local agencies are performing right-of-way acquisition as required.
3. Phase 3 - Construction (Includes Project Construction & Construction Management) Fresno County will be responsible for awarding and administering the construction contract and will perform construction management through this cooperative agreement.
ATTACHED INFORMATION
1. Golden St. Blvd. Project Phasing (Revised)
2. Golden St. Blvd. Project Scope
3. Golden St. Blvd. Project Schedule
4. Golden St. Blvd. Project Funding
Measure “C” Short-Range Regional Transportation Program | Project Scope – Exhibit A EXHIBIT A – PROJECT SCOPE
Golden State Boulevard
Responsible Agency
County of Fresno
Project Limits
The Project limits are Golden State Boulevard between American Avenue and Mission Street.
Project Phase
Phase 1 - Preliminary Engineering [Includes Preliminary Design/Engineering (PS&E) and Environmental] Phase 2 - Right-of-Way Acquisition
Phase 3 - Construction (Includes Project Construction & Construction Management) Project Phase(s) Scope (Provide detail to describe the Phase(s) that is the subject of this Agreement as checked above) The construction of the project and Construction Management Complete Project Scope (Provide detail to describe all phases of the Project - It is important for the Authority to understand the scope of the entire Project; not just the Project phase(s) that is described above).
This “complete streets” project is located on Golden State Boulevard, a 14.1 mile stretch of historic Highway 99, generally from American Avenue in Fresno County south to Mission Street in the City of Kingsburg. The project area will pass through the cities of Fowler, Selma, and Kingsburg, as well as some unincorporated areas of Fresno County, but within the sphere of influence of one of the three cities.
The project objectives include:
• Rehabilitate pavement on Golden State Boulevard and cross-street intersections to preserve assets and minimize life-cycle costs
• Provide safe and convenient transportation access and circulation for motorized vehicles, bicyclists and pedestrians
• Increase motorist and pedestrian safety through improvements at twenty at-grade railroad crossings • Unify the corridor through roadway and landscape design consistency, while still preserving the unique character of each city
• Improve economic development opportunities through corridor enhancements.
To meet these objectives, improvements will include pavement rehabilitation, intersection signalization and channelization, fifty thousand square feet of sidewalks, crosswalks and median improvements including 90 ADA ramps, street lighting, drainage facilities, bicycle lanes, including upgrading 13.6 miles to buffered bike lanes, landscaping, and provisions for connectivity to potential future ATP projects. All four local agencies have been fully involved and in support of this project and its various features.
Phases
This project is being delivered using the traditional design-bid-build model. Because it encompasses four different local agencies jurisdictions, FCTA and Fresno COG have taken responsibility for project delivery.
Phase 1 - Preliminary Engineering [Includes Preliminary Design/Engineering (PS&E) and Environmental] Fresno COG preformed the PA&ED and final design phases.
Phase 2 - Right-of-Way Acquisition
The local agencies are performing right-of-way acquisition as required.
Phase 3 - Construction (Includes Project Construction & Construction Management) Fresno County will be responsible for awarding and administering the construction contract and will perform construction management through this cooperative agreement.
Attachment 1
Measure “C” Short-Range Regional Transportation Program | Project Scope—Exhibit A Throughout all project phases, the four jurisdictions have played an integral role in developing the project scope and final design.
Project Purpose
This project will improve Golden State Boulevard’s condition, safety and its cross streets, as well as numerous crossings of the Union Pacific Railroad. It will eliminate roadway and sidewalk flooding during rain events, and it will improve bicycle and pedestrian safety. It will help to stimulate affordable housing and economic development along the corridor by beautifying key entry points into the communities, and by softening the industrial nature of Old Highway 99.
These benefits will result in quality-of-life improvements and create increased economic opportunities for area residents.
All users will benefit from the improved pavement condition. Safety for vehicles and pedestrians is enhanced by the intersection and shoulder widenings, signalizations, and 60 additional turn pockets. The project includes a wide range of facilities to mitigate potential air quality impacts, including pavement rehabilitation, intersection signalization and channelization, sidewalk, crosswalk and median improvements, street lighting, drainage facilities, bicycle lanes, landscaping. This project will improve safety for motorized and non-motorized users and promote alternative modes of transportation, including active modes.
Transportation Benefit
Roadway improvements include pavement rehabilitation, drainage, and intersection widening, intersection signalization, shoulder widening and striping, and drainage improvements. Pedestrian safety and convenience will also benefit from fifty thousand square feet of sidewalks, 90 ADA ramps, and curb and gutter improvements. Bicyclists will benefit from 13.6 miles of bike lanes upgraded to buffered bike lanes, pavement rehabilitation and new pavement markings.
One of the project’s primary goals is to improve transportation safety along the corridor. A total of 137 collisions were reported from January 1, 2015 through December 31, 2019. Ten fatalities occurred in nine of the 137 collisions, and 195 people were injured in 128 of the 137 collisions. Forty-two percent of the accidents were rear-end collisions. This portion of Golden State Boulevard has accident rates approximately four times higher than the statewide average for similar facilities.
There are 20 at-grade crossings with Union Pacific Railroad (UPRR) in the project area. The project implements multiple safety countermeasures to enhance safety for trucks, vehicles, and trains. The project includes multiple right- and left-turn pockets, moving turning vehicles out of the traveled way and mitigating rear-end collisions. Guardrail will protect blunt objects within the clear recovery zone, mitigating hit-object collisions. Widening the inside shoulders to a minimum of four feet is an additional safety improvement. The widened shoulder will help mitigate hit objects and sideswipes. Additional signs and pavement markings will be used to warn drivers of upcoming intersections. Street lighting along the southbound lanes will help illuminate the roadway. Safety lighting will also be added near railroad grade crossings. The project also implements safety enhancements at the roadway intersections, as well as the crossings with UPRR. Additional signage and pavement markings will be used to notify drivers of the railroad crossings.
There will be new signalized intersections at Bethel Avenue/GSB, South Avenue/GSB, Stroud Avenue/GSB, Dinuba Avenue/GSB, and Temperance Avenue/GSB, which will help control traffic movements, improve safety, and help reduce pollution from cars idling at stop signs. Additionally, five traffic signals will be modified for preemptive timing for train crossings.
Golden State Boulevard will be slightly realigned at the intersections of Bethel, Dinuba, and Stroud Avenues. The northbound lanes are being shifted west into the existing median. Improvement will also include raised medians at the Earl Street and Stroud Avenue at-grade crossings. The raised medians will stop vehicles from going around the down gate arms when trains are approaching. Sidewalks across the at-grade crossings will be added to Earl Street, Adams Avenue, and McCall Avenue.
Additional safety measures include adding buffered Class II bike lanes along both the northbound and southbound lanes.
The newly reconstructed bike lanes will encourage active transportation. The Class II bike lanes will be a minimum of five feet wide and will include a two-foot-wide buffer zone that will separate vehicle traffic from bicycle traffic.
Implications of Not Doing the Project
If this project is not completed, the improvements will not be made at this time. We would also lose $7m in awarded statewide funding through the Local Partnership Program.
Measure “C” Short-Range Regional Transportation Program | Project Scope—Exhibit A Community Engagement
A 2003 community vision for the Golden State Corridor included a robust community participation component including surveys and focus groups in each of the three cities.
In 2018, officials held public outreach meetings in each city, including two in the City of Fowler. Because of the proposed realignment of Golden State through the downtown, a special meeting was held for the businesses that would be affected by the realignment in addition to a public meeting. Each business was informed in person about the project and the upcoming meeting. This project has support from local entities, state elected officials and businesses.
Before construction begins, city council presentations will be held to inform local elected officials and the public of the construction schedule, traffic interruptions, and temporary lane configurations to be expected during construction.
Residents and local businesses have been and continue to be enthusiastic about the project.
Construction Staging
Once the project is awarded, work at the various locations will need to be coordinated with the three cities and Fresno County.
Detours
SR 99 parallels GSB and can serve as an alternative route during construction activities. Caltrans is also working on major rehabilitation projects on SR 99 in the project vicinity therefore it is critical that construction staging be coordinated so that both routes are not impacted simultaneously.
Current Status
Right of Way is nearing completion and two railroad crossings and signals will be redesigned to accommodate new requirements from UPRR. Fresno County will be responsible for awarding and administering the construction contract and will perform construction management through the completion of the project.
Contact
For inquiries, you may contact Mohammad Alimi, Design Engineer with the County of Fresno, Department of Public Works and Planning, at (559) 600-4505.
Measure “C” Short-Range Regional Transportation Program | Project Schedule – Exhibit B EXHIBIT B – PROJECT SCHEDULE
Golden State Boulevard
Replace information below with information for subject project phase Responsible Agency
County of Fresno
Project Limits
The Project limits are Golden State Boulevard between American Avenue and Mission Street.
Project Phase
Phase 1 - Preliminary Engineering [Includes Preliminary Design/Engineering (PS&E) and Environmental] Phase 2 - Right-of-Way Acquisition
Phase 3 - Construction (Includes Project Construction & Construction Management) Contact
For inquiries, you may contact Mohammad Alimi, Design Engineer with the County of Fresno, Department of Public Works and Planning, at (559) 262-4505.
Project Schedule (Double click on Table below to complete for all Project phases – It is important for the Authority to understand the schedule for the entire Project; not just the Project phase(s) that is checked above and the subject of this Agreement. Revise Fiscal Years in table below to reflect the schedule for all phases of the Project)
10 11 12 13 14 15 16 17 18 19 20 J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J Prelim. Eng.*1
1. Prelim. Design 2010 2016
2. PS&E 2016 Jan-22
3. Environ. Doc. 2010 Nov-21
Right-of-Way *2
1. Parcel Research 2016 2016
2. Appraisal 2016 2016
3. Acquisition 2016 Jul-21
4. Utility relocation 2016 Nov-21
Construction *3
1. Bid Devel., Road Jan-22 Mar-22
2. Construction, Road Apr-22 Jan-25
3. Const. Engineering Mar-22 Jan-25
*1 Preliminary Engineering: Preliminary Design/Engineering (PS&E), Environmental *2 Right-of-Way Acquisition
*3 Project Construction & Construction Management
2023/24 2024/25
SHORT-TERM PROGRAM FY 2010/11 - 2024/25
PROJECT PHASE START END 2010-2020 2020/21 2021/22 2022/23 Attachment 2
Measure C Short-Range Regional Transportation Program | Project Funding Program – Exhibit C
RURAL PROJECT F EXHIBIT C - PROJECT FUNDING
PROGRAM
Golden State Boulevard
Responsible Agency
County of Fresno
Project Limits
The Project limits are Golden State Boulevard between American Avenue and Mission Street.
Project Phase
Phase 1 - Preliminary Engineering [Includes Preliminary Design/Engineering (PS&E) and Environmental] Phase 2 - Right-of-Way Acquisition
Phase 3 - Construction (Includes Project Construction & Construction Management) Contact
For inquiries, you may contact Mohammad Alimi, Design Engineer with the County of Fresno, Department of Public Works and Planning, at (559) 600-4505.
Funding Program ($47,085,000)
(Double click on Table on the following page to complete for all Project phases – It is important for the Authority to understand the funding program for the entire Project; not just the Project phase(s) that is checked above and the subject of this Agreement).
Attachment 3
Measure C Short-Range Regional Transportation Program | Project Funding Program – Exhibit C 2020/21 2021/22 2022/23 2023/24 2024/25
Preliminary Engineering *1 2010 2021 $5,708,864 $0 $240,133 $0 $0 $0 $5,948,997
FUNDING PROGRAM
Measure "C" Original Program $0.000
Measure "C" Extension $5,708,864.00 $240,133 $5,948,997 RTMF $0
STIP $0
TCRP $0
Local Development Fees $0
Federal Aid $0
Other State (Specify) $0
Other Local (Specify) $0
Other Local (Specify) $0
Other Local (Specify) $0
TOTAL FUNDING PHASE 1: $5,708,864 $0 $240,133 $0 $0 $0 $5,948,997 2020/21 2021/22 2022/23 2023/24 2024/25
Right-of-Way *2 2016 2021 $0 $100,000 $0 $0 $0 $0 $100,000
FUNDING PROGRAM
Measure "C" Original Program $0
Measure "C" Extension $100,000 $100,000
RTMF $0
STIP $0
TCRP $0
Local Development Fees $0
Federal Aid $0
Other State (Specify) $0
Other Local (Specify) $0
Other Local (Specify) $0
Other Local (Specify) $0
TOTAL FUNDING PHASE 2: $0 $100,000 $0 $0 $0 $0 $100,000 2020/21 2021/22 2022/23 2023/24 2024/25
Construction *3 2021 2025 $0.000 $0 $7,272,000 $47,252,000 $0 $0 $54,524,000
FUNDING PROGRAM
Measure "C" Original Program $0
Measure "C" Extension $47,252,000 $47,252,000
RTMF $0
STIP $0
TCRP $0
Local Development Fees $0
Federal Aid $0
Other State (Local Partnership Program) $7,272,000 $7,272,000 Other Local (Specify) $0
Other Local (Specify) $0
Other Local (Specify) $0
TOTAL FUNDING PHASE 3: $0 $0 $7,272,000 $47,252,000 $0 $0 $54,524,000 TOTAL FUNDING ALL PHASES: 5,708,864 $100,000 $7,512,133 $47,252,000 $0 $0 $60,572,997 *1 Preliminary Engineering: Preliminary Design/Engineering (PS&E), Environmental *2 Right-of-Way Acquisition
*3 Project Construction & Construction Management
TOTAL COST &
FUNDING
TOTAL COST &
FUNDING
PRIOR COST &
FUNDING
PROJECT PHASE START
YEAR END YEAR PRIOR COST & FUNDING
PROJECT PHASE START
YEAR END YEAR
PROJECT PHASE START
YEAR END YEAR PRIOR COST & FUNDING TOTAL COST &
FUNDING
March 20, 2024
Pension Funding
Contributions
(Employer and
Employee, calc’d by
Actuary)
Interest Earnings
(estimated by
CalPERS – can be
extremely volatile)
What Goes into Employer Contribution Requirements
Contribution Requirements
3 Member
Information
Benefit Provisions
Calculations
Actuarial Assumptions
and Methods
$
qx
Actual Experience
Contribution
Requirements
PERS Activity • Financial crisis saw total funded status drop from 101% in FY07 to 61% in FY09. • January 1, 2013 – Pension Reform (PEPRA) takes effect for all new hires. • Dec 2016 – CalPERS board lowers discount rate to 7.0%, phased in over 3 years. • FY21 – 21.3% ROI triggers automatic discount rate reduction; adds ~$85B in value, funded status jumps ~10%. • CalPERS Board affirms 6.8% discount rate.
• Fund loses 6.1% in FY2022; first loss since Great Recession. • CalPERS reports initial return of 5.8% in FY23.
How Did We Get Here?
• Investment losses (Great Recession)
• CalPERS Contribution Policy
• Enhanced Benefits
• Demographics & Assumption Changes
Kingsburg CalPERS
Pension Plans
The City maintains six pensions plans for its
employees
• Classic Miscellaneous Employees
• Classic Police Safety Employees
• Classic Fire Safety Employees
• PEPRA Miscellaneous Employees
• PEPRA Safety Police Employees
• PEPRA Safety Fire Employees
Pension Reform
• CA Public Employee’s Pension Reform (PEPRA) approved in 2012, into effect 1/1/13
• Reduced benefits for new members (non-safety): 2% @ 62 • Created new maximum benefit for safety
• Lower cap of salary that is pensionable ($151,446 for 2024; $345,000 Classic) • Required employees to share equally in cost
• Disallowed Employer-Paid Member Contributions
• Required Three-Year Final Compensation Calculation (No 1 year bump) • Placed restrictions on retirees returning to work for CalPERS agency; Max. hours worked, etc.
Employer Contributions
Normal Cost
(% of Payroll)
Normal Cost is percentage of salaries
Designed to cover current employees cost of future retirement. Unfunded Actuarial Liability (UAL)
Market value of plan assets is less than the present value of accrued benefits (i.e. liability).
Total Contribution
UAL Amortization Payment
($ Amount)
Normal Costs (Payroll of Active Employees)
Employee Contributions (Normal Costs):
1. Implemented Pension Reform: All PEPRA Employees are required to pay 50% of their normal cost per law. For FY24, employee contribution rates increased 1% for MISC. and .75% for Public Safety (PEPRA employees only).
2. Police CLASSIC members are currently paying 12% of their contribution. This is the highest allowed amount without additional concessions through future MOU negotiations. Safety Police normal cost for FY22 is 31.99% of payroll, meaning employees pay ~37% of normal contribution rate (city picks up 63%).
3. Fire CLASSIC members are currently paying 12% of their contribution. This is the highest allowed amount without additional concessions through future MOU negotiations. Safety Fire normal cost for FY22 is 31.99% of payroll, meaning employees pay ~37% of normal contribution rate (city picks up 63%).
4. Misc. CLASSIC members contribute ~7% of normal cost rate (total percentage of payroll is ~18.81%); equates to ~37% of normal contribution rate (city picks up 63%). - These numbers have been shifting toward more contributions from the employer, the split had been closer to 40/60.
Unfunded Accrued Liability
• UAL Annual Payment
o Calculated annually by CalPERS
o Changes each year based upon actuarial factors
Investment Return
Mortality Rates
Number of Retirees
o Mortgage balance with a moving target.
o Annual payments made in July of each year or monthly. Lump sum prepayment saves one month of interest.
The highlighted columns are what we would have paid in those years without making the Additional Discretionary Payments (ADPs).
FY 21/22 FY 21/22 FY 22/23 FY 22/23 FY 22/23 FY 23/24 FY 23/24 FY 24/25 FY 24/25 Lump Sum ADPs Dec 27, 2021 Lump Sum w/out ADPs Lump Sum Payments Lump Sum Payments Lump Sum Payments $ 238,928.00 $ 300,000.00 $ 218,363.00 $ 192,471.00 $ 199,094.04 $ 182,144.00 $ 188,235.00 $ 227,305.00 $ 234,906.00 5,385.00 $ 5,891.00 5,891.00 6,093.96 - - 3,263.00 3,372.00 119,505.00 $ 150,000.00 $ 136,201.00 121,616.00 125,801.04 119,805.00 123,810.96 143,126.00 147,912.00 4,621.00 $ 5,213.00 5,213.00 5,391.96 - - 5,199.00 5,373.00 298,696.00 $ 300,000.00 $ 338,009.00 307,581.00 318,164.04 306,874.00 317,136.00 355,538.00 367,427.00 9,731.00 $ 10,859.00 10,859.00 11,232.96 - - 7,981.00 8,248.00 $ 676,866.00 $ 750,000.00 $ 714,536.00 $ 643,631.00 $ 665,778.00 $ 608,823.00 $ 629,181.96 $ 742,412.00 $ 767,238.00 Steps to Address
Council Policy of 70% of surplus funding to be allocated to the UAL Fund
CalPERS Unfunded Accrued Liability (UAL) Fund (70%)
• Fund will be used to help pay down existing pension
liability. Council can decide to use the fund to help
stabilize future budgets, provide additional payments to lower long-term liability, or to invest in a 115 Trust.
Employee Cost Sharing
• Safety employees pay 12% of their share (9% is normal cost)
• Offsets a portion of employer costs
• Provides internal equity between bargaining groups of overall contribution percentages (CLASSIC)
Prepay UAL in July each year
• ~$25K savings in FY24
Steps to Address
Additional Discretionary Payments – similar to making an additional mortgage payment on your home
Made Additional Discretionary Payment (ADP) for UAL:
• $850,000 in Oct. 2019
• $750,000 in Dec. 2021
Payments made from UAL waterfall account.
Payment made to long-term plans (largest savings)
$1.6M total ADPs provides estimated interest savings totaling $1.8M (including payments).
16 Next Steps…
• Await Updated June 30, 2023, Actuarial Documents (Aug. 2024). • Continue to monitor CalPERS returns (2023 much better year than 2022). • FY 2022-23 estimated 5.8% total fund annual investment rate of return. • Utilize ADPs and fund savings to offset rising contributions.
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2023
PEPRA Miscellaneous Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2022
Dear Employer,
Attached to this letter is the June 30, 2022 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2024-25. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.
Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2022.
Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk Pool Actuarial Valuation Report for June 30, 2022.
Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.
Required Contributions
The table below shows the minimum required employer contributions and the PEPRA member contribution rate for FY 2024-25 along with estimates of the required contributions for FY 2025-26. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Contribution Rate
2024-25 7.87% $3,372 7.75%
Projected Results
2025-26 7.9% $5,600 TBD
PEPRA Miscellaneous Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2022
The actual investment return for FY 2022-23 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2022- 23 differs from 6.8%, the actual contribution requirements for FY 2025-26 will differ from those shown above.
For additional details regarding the assumptions and methods used for these projections,please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section. This section also contains projected required contributions through FY2029-30.
Changes from Previous Year’s Valuations
There are no significant changes in actuarial assumptions or policies in the 2022 actuarial valuation. There may be changes specific to the plan such as contract amendments and funding changes.
Further descriptions of general changes are included in “Highlights and Executive Summary” and in Appendix A of the Section 2 report in “Actuarial Methods and Assumptions.” The effects of any changes on the required contributions are included in “Reconciliation of Required Employer Contributions,” also in the Section 2 report.
Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact Center at (888)-CalPERS or (888-225-7377).
Sincerely,
SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
RANDALL DZIUBEK, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Actuarial Valuation
as of June 30, 2022
for the
PEPRA Miscellaneous Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2024 - June 30, 2025
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
CAL I F O RNI A P UBL I C EM P L O YEES ’ RET I REM ENT S YS T EM Plan Specific Information
for the
PEPRA Miscellaneous Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 26913)
Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Funded Status – Funding Policy Basis 6
Projected Employer Contributions 7
Other Pooled Miscellaneous Risk Pool Rate Plans 8
Cost 9
Changes Since the Prior Year’s Valuation 10
Subsequent Events 10
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 12
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 12 Development of Plan’s Share of Pool’s Market Value of Assets 12 Schedule of Amortization Bases 13
Amortization Schedule and Alternatives 14
Employer Contribution History 16
Funding History 16
Risk Analysis
Future Investment Return Scenarios 18
Discount Rate Sensitivity 19
Mortality Rate Sensitivity 19
Maturity Measures 20
Maturity Measures History 21
Funded Status – Termination Basis 22
Participant Data 23
List of Class 1 Benefit Provisions 23
Plan’s Major Benefit Options 24
PEPRA Member Contribution Rates 25
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
To the best of our knowledge, this report, compris ed of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Miscellaneous Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2022 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.
As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the Miscellaneous Risk Pool has been performed in accordance with generally accepted actuarial principles , in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.
Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the rate plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability amortization bases as of June 30, 2022 and employer contribution as of July 1, 2024 have been properly and accurately determined in accordance with the principles and standards stated above.
The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.
TONY CUNY, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Funded Status – Funding Policy Basis
• Projected Employer Contributions
• Other Pooled Miscellaneous Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2022 actuarial valuation of the PEPRA Miscellaneous Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2024-25.
Purpose of Section 1
This Section 1 report for the PEPRA Miscellaneous Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2022. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2022; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2024 through June 30, 2025;
• Determine the required member contribution rate for FY July 1, 2024 through June 30, 2025 for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2022 to the CalPERS Board of Administration (board) and other interested parties.
The pension funding information presented in this report should not be used in financial reports subje ct to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).
The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact the plan actuary before disseminating any portion of this report for any reason that is not explicitly described above.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic as sumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of Actuarial Standard of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Required Contributions
Fiscal Year
Required Employer Contributions 2024-25
Employer Normal Cost Rate 7.87%
Plus
Required Payment on Amortization Bases1 $3,372
Paid either as
1) Monthly Payment $281.00
Or
2) Annual Prepayment Option* $3,263
Required PEPRA Member Contribution Rate 7.75%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).
For additional detail regarding the determination of the required contribution rate for PEPRA members, see “PEPRA Member Contribution Rates” section.
Fiscal Year Fiscal Year
2023-24 2024-25
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 15.43% 15.62%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Phase out of Normal Cost Difference3 0.00% 0.00%
Plan’s Total Normal Cost 15.43% 15.62%
Offset Due to Employee Contributions 7.75% 7.75%
Employer Normal Cost Rate 7.68% 7.87%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 28, 2023.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 When a rate plan joins the pool, the difference in normal cost betw een the pool and the rate plan is phased out over a fiveyear period in accordance with the CalPERS contribution allocation policy.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2024-25 is $3,372. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.
Provided below are select ADP options for consideration. Making such an ADP during FY 2024-25 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.
Agencies considering making an ADP should contact CalPERS for additional information.
Minimum Required Employer Contribution for Fiscal Year 2024-25 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$102,577 $3,372 $0 $3,372 $105,949
The minimum required contribution above is less than interest on the UAL. With no ADP the UAL is projected to increase over the following year. If the minimum UAL payment were split between interest and principal, the principal portion would be negative. This situation is referred to as negative amortization. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the “Amortization Schedule and Alternatives” section of the report (see columns labeled “Current Amortization Schedule”).
Fiscal Year 2024-25 Employer Contribution Necessary to Avoid Negative Amortization Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
$102,577 $3,372 $4,274 $7,646 $110,223
Alternative Fiscal Year 2024-25 Employer Contributions for Greater UAL Reduction Funding
Horizon
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
20 years $102,577 $3,372 $7,078 $10,450 $113,027
15 years $102,577 $3,372 $8,818 $12,190 $114,767
10 years $102,577 $3,372 $12,490 $15,862 $118,439
5 years $102,577 $3,372 $23,906 $27,278 $129,855
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year w ould have to be less or more than the amount show n to have the same effect on the UAL amortization.
Note that the calculations above are based on the projected UAL as of June 30, 2024 as determined in the June 30, 2022 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions , and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100 % funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years .
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 6 Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valuation date. The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.
A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies .
Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual average future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:
The “Risk Analysis” section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.
June 30, 2021 June 30, 2022
1. Present Value of Benefits $1,933,424 $2,576,431
2. Entry Age Accrued Liability 604,498 797,447
3. Market Value of Assets (MVA) 635,253 702,030
4. Unfunded Accrued Liability (UAL) [(2) – (3)] ($30,755) $95,417
5. Funded Ratio [(3) / (2)] 105.1% 88.0%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%
1. Entry Age Accrued Liability $1,009,254 $797,447 $634,915
2. Market Value of Assets (MVA) 702,030 702,030 702,030
3. Unfunded Accrued Liability (UAL) [(1) – (2)] $307,224 $95,417 ($67,115)
4. Funded Ratio [(2) / (1)] 69.6% 88.0% 110.6%
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2022-23 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2022-23 and Beyond) Fiscal Year 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Rate Plan 26913 Results
Normal Cost % 7.87% 7.9% 7.9% 7.9% 7.9% 7.9%
UAL Payment $3,372 $5,600 $7,800 $10,000 $12,000 $12,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.
The required contribution for FY 2024-25 is less than interest on the UAL, a situation referred to as negative amortization, as explained in the “Additional Discretionary Employer Contributions” section earlier in this report.
If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the “Amortization Schedule and Alternatives” section of the report (see columns labelled “Current Amortization Schedule”).
For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section. Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 26913. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the total employer payroll within the Miscellaneous Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. In a refinement since the prior year’s report, Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.
Fiscal Year Fiscal Year
2023-24 2024-25
Estimated Combined Employer Contributions for all Pooled Miscellaneous Rate Plans Projected Payroll for the Contribution Year $1,875,538 $2,102,915 Estimated Employer Normal Cost $185,380 $197,560
Required Payment on Amortization Bases $188,235 $238,278 Estimated Total Employer Contributions $373,615 $435,838 Estimated Total Employer Contribution Rate (illustrative only) 19.92% 20.73% CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2015-16, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2015-16, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There is an option to prepay this amount during July of each fiscal year.
The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.
The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.
We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2022, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 10 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.
This valuation generally reflects plan amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge.
The impact on the unfunded liability is included in the pool’s (gain)/loss.
Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2022 actuarial valuation.
Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2022 and statutory/regulatory changes and board actions through January 2023.
During the time period between the valuation date and the publication of this report, inflation has been significantly higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements and downward pressure on the funded status in the June 30, 2023 valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists. At this time, we continue to believe the long-term inflation assumption of 2.3% is appropriate.
To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.
Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Breakdown of Entry Age Accrued Liability
Active Members $763,150
Transferred Members 10,761
Separated Members 23,536
Members and Beneficiaries Receiving Payments 0
Total $797,447
Allocation of Plan’s Share of Pool’s Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:
1. Plan’s Accrued Liability $797,447
2. Projected UAL Balance at 6/30/2022 (25,763)
3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0
4. Adjusted UAL Balance at 6/30/2022 for Asset Share (25,763)
5. Pool’s Accrued Liability1 22,021,735,002
6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20221 2,453,954,297
7. Pool’s 2021-22 Investment (Gain)/Loss1 2,614,071,182
8. Pool’s 2021-22 Non-Investment (Gain)/Loss1 309,490,972
9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 109,973
10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 11,207
11. Plan’s New (Gain)/Loss as of 6/30/2022:(9) + (10) 121,180
12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0
13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0
14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0
15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0
16. Offset due to Funding Risk Mitigation 0
17. Plan’s Investment (Gain)/Loss: (9) – (16) 109,973
18. Partial Fresh Start Base: (2) + (17) 84,210
1 Does not include plans that transferred to Pool on the valuation date.
Development of the Plan’s Share of Pool’s Market Value
of Assets
19. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $95,417
20. Plan’s Share of Pool’s MVA: (1) - (19) $702,030
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2022. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2024-25.
This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.
The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.
Reason for Base
Date
Est.
Ramp
Level
2024-25
Ramp
Shape
Escalation
Rate
Amort.
Period
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Minimum
Required
Payment
2024-25
Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 20 11,207 0 11,969 0 12,783 1,149 Partial Fresh Start 6/30/22 20% Up Only 0.00% 20 84,210 (6,677) 96,837 0 103,422 2,223 Total 95,417 (6,677) 108,806 0 116,205 3,372
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allo cation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.
The partial fresh start base established June 30, 2022 is the sum of the UAL balance from the June 30, 2021 valuation (projected to June 30, 2022) and the June 30, 2022 investment loss, as shown on the previous page.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 14 Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.
Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact the plan actuary.
The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.
In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.
The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 15 Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 20 Year Amortization 15 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2024 116,205 3,372 116,205 10,450 116,205 12,190
6/30/2025 120,622 5,596 113,307 10,449 111,509 12,190
6/30/2026 123,041 7,818 110,213 10,449 106,494 12,190
6/30/2027 123,328 10,042 106,909 10,450 101,138 12,190
6/30/2028 121,336 12,264 103,379 10,449 95,418 12,191
6/30/2029 116,913 12,265 99,610 10,449 89,308 12,190
6/30/2030 112,188 12,265 95,585 10,449 82,783 12,191
6/30/2031 107,142 12,265 91,286 10,450 75,814 12,191
6/30/2032 101,752 12,264 86,694 10,449 68,371 12,190
6/30/2033 95,997 12,264 81,791 10,450 60,423 12,191
6/30/2034 89,850 12,264 76,553 10,449 51,933 12,191
6/30/2035 83,285 12,265 70,960 10,449 42,866 12,190
6/30/2036 76,273 12,264 64,987 10,450 33,183 12,191
6/30/2037 68,786 12,264 58,607 10,450 22,841 12,190
6/30/2038 60,789 12,265 51,793 10,450 11,797 12,192
6/30/2039 52,247 12,265 44,515 10,449
6/30/2040 43,125 12,264 36,744 10,449
6/30/2041 33,383 12,265 28,444 10,450
6/30/2042 22,978 12,264 19,579 10,450
6/30/2043 11,866 12,263 10,111 10,449
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 223,058 208,989 182,858
Interest Paid 106,853 92,784 66,653
Estimated Savings 14,069 40,200
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 16
Employer Contribution History
The table below provides a recent history of the required and discretionary employer contributions for the plan.
The required amounts are based on the actuarial valuation from two years prior without subsequent adjustments, if any. Additional discretionary payments before July 1, 2019 or after April 28, 2023 are not included. [
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 6.555% $31 N/A
2017 - 18 6.533% 86 N/A
2018 - 19 6.842% 273 N/A
2019 - 20 6.985% 3,711 0
2020 - 21 7.732% 5,275 0
2021 - 22 7.59% 5,570 0
2022 - 23 7.47% 6,094 0
2023 - 24 7.68% 0
2024 - 25 7.87% 3,372
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.
Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $7,729 $8,073 ($344) 104.5% $169,924
06/30/2015 28,554 26,698 1,856 93.5% 216,805
06/30/2016 61,363 54,111 7,252 88.2% 301,493
06/30/2017 112,173 104,925 7,248 93.5% 432,566
06/30/2018 199,160 181,143 18,017 91.0% 463,113
06/30/2019 288,803 260,380 28,423 90.2% 514,098
06/30/2020 401,078 361,023 40,055 90.0% 671,341
06/30/2021 604,498 635,253 (30,755) 105.1% 811,722
06/30/2022 797,447 702,030 95,417 88.0% 1,096,040
Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Funded Status – Termination Basis
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 18 Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.
The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2042.
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.
The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.
The following table shows the effect of a one or two standard deviation investment loss in FY 2022-23 on the FY 2025-26 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5 - year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2025-26.
Assumed Annual Return for
Fiscal Year 2022-23
Required
Employer
Contributions
Projected
Employer
Contributions
2024-25 2025-26
(17.2)% (2 standard deviation loss)
Normal Cost Rate 7.87% 7.9%
UAL Contribution $3,372 $9,700
(5.2)% (1 standard deviation loss)
Normal Cost Rate 7.87% 7.9%
UAL Contribution $3,372 $7,700
• Without investment gains (returns higher than 6.8%) in FY 2023-24 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2022-23.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2025-26 as well as to model other investment return scenarios .
Assumed Annual Return
FY 2022-23
through 2041-42
Projected Employer Contributions
2025-26 2026-27 2027-28 2028-29 2029-30
3.0% (5th percentile)
Normal Cost Rate 7.9% 7.9% 7.9% 7.9% 7.9%
UAL Contribution $6,200 $9,800 $14,000 $19,000 $22,000
10.8% (95th percentile)
Normal Cost Rate 8.1% 8.3% 8.5% 8.7% 8.4%
UAL Contribution $5,000 $6,100 $6,500 $0 $0
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 19 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2022 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of
5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.
Sensitivity to the Real Rate of Return Assumption
As of June 30, 2022 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 19.53% 15.62% 12.65%
b) Accrued Liability $1,009,254 $797,447 $634,915
c) Market Value of Assets $702,030 $702,030 $702,030
d) Unfunded Liability/(Surplus) [(b) - (c)] $307,224 $95,417 ($67,115) e) Funded Ratio 69.6% 88.0% 110.6%
Sensitivity to the Price Inflation Assumption
As of June 30, 2022 1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 16.48% 15.62% 14.20%
b) Accrued Liability $841,657 $797,447 $719,663
c) Market Value of Assets $702,030 $702,030 $702,030
d) Unfunded Liability/(Surplus) [(b) - (c)] $139,627 $95,417 $17,633 e) Funded Ratio 83.4% 88.0% 97.5%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2022 plan costs and funded status under two different longevity scenarios, namely assuming post-retirementrates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.
As of June 30, 2022 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 15.89% 15.62% 15.37%
b) Accrued Liability $812,099 $797,447 $783,887
c) Market Value of Assets $702,030 $702,030 $702,030
d) Unfunded Liability/(Surplus) [(b) - (c)] $110,069 $95,417 $81,857 e) Funded Ratio 86.4% 88.0% 89.6%
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 20 Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables , and changes in longevity or other demographic assumptions.
Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2021 June 30, 2022
1. Retired Accrued Liability $0 $0
2. Total Accrued Liability 604,498 797,447
3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.00 0.00 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.
To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.
For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2021, was 0.78 and was calculated consistently with how it is for the individual rate plan. Note that to cal culate the support ratio for all public agency plans, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.
Support Ratio June 30, 2021 June 30, 2022
1. Number of Actives 14 18
2. Number of Retirees 0 0
3. Support Ratio [(1) / (2)] N/A N/A
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a yearto-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next.
Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.
Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.
Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.
Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.
Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with LVR of 8 is expected to have twice the contribution volatility of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.
Contribution Volatility June 30, 2021 June 30, 2022
1. Market Value of Assets $635,253 $702,030
2. Payroll 811,722 1,096,040
3. Asset Volatility Ratio (AVR) [(1) / (2)] 0.8 0.6
4. Accrued Liability $604,498 $797,447
5. Liability Volatility Ratio (LVR) [(4) / (2)] 0.7 0.7 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.00 N/A 0.2 0.3
06/30/2018 0.00 N/A 0.4 0.4
06/30/2019 0.00 N/A 0.5 0.6
06/30/2020 0.00 N/A 0.5 0.6
06/30/2021 0.00 N/A 0.8 0.7
06/30/2022 0.00 N/A 0.6 0.7
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2022. The accrued liability on a termination basis (termination liability) is calculated differently compared to the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.
A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19 -month period from 12 months before the valuation date to seven months after.
Discount Rate: 1.75%
Price Inflation: 2.50%
Discount Rate: 4.50%
Price Inflation: 2.75%
Market
Value of
Assets (MVA)
Termination
Liability1,2
Funded
Ratio
Unfunded
Termination
Liability
Termination
Liability1,2
Funded
Ratio
Unfunded
Termination
Liability
$702,030 $1,815,548 38.7% $1,113,518 $791,898 88.7% $89,868 1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report. 2 The discount rate used for termination valuations is a w eighted average of the 10-year and 30-year U.S. Treasury yields w here the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield w as 3.38% on June 30, 2022, the valuation date.
In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to provide a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. Before beginning this process, please consult with the plan actuary.
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:
June 30, 2021 June 30, 2022
Active Members
Counts 14 18
Average Attained Age 41.9 40.2
Average Entry Age to Rate Plan 38.1 36.6
Average Years of Credited Service 3.9 3.7
Average Annual Covered Pay $57,980 $60,891
Annual Covered Payroll $811,722 $1,096,040
Present Value of Future Payroll $9,079,400 $11,908,426
Transferred Members 1 2
Separated Members 4 7
Retired Members and Beneficiaries*
Counts 0 0
Average Annual Benefits $0 $0
Total Annual Benefits $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.
List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.
Benefit Group
Member Category Misc
Demographics
Actives Yes
Transfers/Separated Yes
Receiving No
Benefit Group Key 111995
Benefit Provision
Benefit Formula 2% @ 62
Social Security Coverage Yes
Full/Modified Full
Employee Contribution Rate 7.75%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2000
Survivor Allowance (PRSA) No
COLA 2%
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 PEPRA Member Contribution Rates
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost for the plan is dependent on the benefit levels, actuarial assumptions, and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate change by more than 1% from the base total normal cost rate, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.
The table below shows the determination of the PEPRA member contribution rates effective July 1, 2024, based on 50% of the total normal cost rate as of the June 30, 2022 valuation.
Basis for Current Rate Rates Effective July 1, 2024
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
26913 Miscellaneous PEPRA Level 15.43% 7.75% 15.62% 0.19% No 7.75% CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 26 Section 2
CAL I F O RNI A P UBL I C EM P L O YEES ’ RET I REM EN T S YS T EM Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms and Publications section
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2023
Miscellaneous Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2022
Dear Employer,
Attached to this letter is the June 30, 2022 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2024-25. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.
Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2022.
Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk Pool Actuarial Valuation Report for June 30, 2022.
Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.
Required Contributions
The table below shows the minimum required employer contributions for FY 2024-25 along with estimates of the required contributions for FY 2025-26. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2024-25 11.88% $234,906
Projected Results
2025-26 11.9% $257,000
Miscellaneous Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2022
The actual investment return for FY 2022-23 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2022- 23 differs from 6.8%, the actual contribution requirements for FY 2025-26 will differ from those shown above.
For additional details regarding the assumptions and methods used for these projections,please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section. This section als o contains projected required contributions through FY2029-30.
Changes from Previous Year’s Valuations
There are no significant changes in actuarial assumptions or policies in the 2022 actuarial valuation. There may be changes specific to the plan such as contract amendments and funding changes.
Further descriptions of general changes are included in “Highlights and Executive Summary” and in Appendix A of the Section 2 report in “Actuarial Methods and Assumptions.” The effects of any changes on the required contributions are included in “Reconciliation of Required Employer Contributions,” also in the Section 2 report.
Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact Center at (888)-CalPERS or (888-225-7377).
Sincerely,
SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
RANDALL DZIUBEK, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Actuarial Valuation
as of June 30, 2022
for the
Miscellaneous Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2024 - June 30, 2025
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
CAL I F O RNI A P UBL I C EM P L O YEES ’ RET I REM ENT S YS T EM Plan Specific Information
for the
Miscellaneous Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 1347)
Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Funded Status – Funding Policy Basis 6
Projected Employer Contributions 7
Other Pooled Miscellaneous Risk Pool Rate Plans 8
Cost 9
Changes Since the Prior Year’s Valuation 10
Subsequent Events 10
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 12
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 12 Development of Plan’s Share of Pool’s Market Value of Assets 12 Schedule of Amortization Bases 13
Amortization Schedule and Alternatives 15
Employer Contribution History 17
Funding History 17
Risk Analysis
Future Investment Return Scenarios 19
Discount Rate Sensitivity 20
Mortality Rate Sensitivity 20
Maturity Measures 21
Maturity Measures History 22
Funded Status – Termination Basis 23
Participant Data 24
List of Class 1 Benefit Provisions 24
Plan’s Major Benefit Options 25
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
To the best of our knowledge, this report, compris ed of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Miscellaneous Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2022 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.
As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the Miscellaneous Risk Pool has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.
Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the rate plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability amortization bases as of June 30, 2022 and employer contribution as of July 1, 2024 have been properly and accurately determined in accordance with the principles and standards stated above.
The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.
TONY CUNY, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Funded Status – Funding Policy Basis
• Projected Employer Contributions
• Other Pooled Miscellaneous Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2022 actuarial valuation of the Miscellaneous Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2024-25.
Purpose of Section 1
This Section 1 report for the Miscellaneous Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2022. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2022; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2024 through June 30, 2025;
• Determine the required member contribution rate for FY July 1, 2024 through June 30, 2025 for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2022 to the CalPERS Board of Administration (board) and other interested parties.
The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).
The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact the plan actuary before disseminating any portion of this report for any reason that is not explicitly described above.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of Actuarial Standard of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Required Contributions
Fiscal Year
Required Employer Contributions 2024-25
Employer Normal Cost Rate 11.88%
Plus
Required Payment on Amortization Bases1 $234,906
Paid either as
1) Monthly Payment $19,575.50
Or
2) Annual Prepayment Option* $227,305
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).
Fiscal Year Fiscal Year
2023-24 2024-25
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 18.76% 18.81%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Phase out of Normal Cost Difference3 0.00% 0.00%
Plan’s Total Normal Cost 18.76% 18.81%
Offset Due to Employee Contributions 6.92% 6.93%
Employer Normal Cost Rate 11.84% 11.88%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 28, 2023.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 When a rate plan joins the pool, the difference in normal cost betw een the pool and the rate plan is phased out over a fiveyear period in accordance with the CalPERS contribution allocation policy.
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2024-25 is $234,906. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.
Provided below are select ADP options for consideration. Making such an ADP during FY 2024-25 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.
Agencies considering making an ADP should contact CalPERS for additional information.
Minimum Required Employer Contribution for Fiscal Year 2024-25 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$94,983 $234,906 $0 $234,906 $329,889
Alternative Fiscal Year 2024-25 Employer Contributions for Greater UAL Reduction Funding
Horizon
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
20 years $94,983 $234,906 $34,124 $269,030 $364,013
15 years $94,983 $234,906 $78,941 $313,847 $408,830
10 years $94,983 $234,906 $173,468 $408,374 $503,357
5 years $94,983 $234,906 $467,369 $702,275 $797,258
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year w ould have to be less or more than the amount show n to have the same effect on the UAL amortization.
Note that the calculations above are based on the projected UAL as of June 30, 2024 as determined in the June 30, 2022 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions , and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100 % funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years .
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 6 Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valuation date. The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.
A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.
Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual average future returns are less than the expected return, calculated normal costs and UAL contributions will not be s ufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:
The “Risk Analysis” section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.
June 30, 2021 June 30, 2022
1. Present Value of Benefits $13,161,059 $13,588,139
2. Entry Age Accrued Liability 11,746,104 12,243,907
3. Market Value of Assets (MVA) 9,949,216 9,271,718
4. Unfunded Accrued Liability (UAL) [(2) – (3)] $1,796,888 $2,972,189
5. Funded Ratio [(3) / (2)] 84.7% 75.7%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%
1. Entry Age Accrued Liability $13,860,131 $12,243,907 $10,918,483
2. Market Value of Assets (MVA) 9,271,718 9,271,718 9,271,718
3. Unfunded Accrued Liability (UAL) [(1) – (2)] $4,588,413 $2,972,189 $1,646,765
4. Funded Ratio [(2) / (1)] 66.9% 75.7% 84.9%
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2022-23 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2022-23 and Beyond) Fiscal Year 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Rate Plan 1347 Results
Normal Cost % 11.88% 11.9% 11.9% 11.9% 11.9% 11.9%
UAL Payment $234,906 $257,000 $279,000 $295,000 $337,000 $343,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.
For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section. Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 1347. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the total employer payroll within the Miscellaneous Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. In a refinement since the prior year’s report, Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.
Fiscal Year Fiscal Year
2023-24 2024-25
Estimated Combined Employer Contributions for all Pooled Miscellaneous Rate Plans Projected Payroll for the Contribution Year $1,875,538 $2,102,915 Estimated Employer Normal Cost $185,380 $197,560
Required Payment on Amortization Bases $188,235 $238,278 Estimated Total Employer Contributions $373,615 $435,838 Estimated Total Employer Contribution Rate (illustrative only) 19.92% 20.73% CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2015-16, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2015-16, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There is an option to prepay this amount during July of each fiscal year.
The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.
The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.
We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2022, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 10 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.
This valuation generally reflects plan amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge.
The impact on the unfunded liability is included in the pool’s (gain)/loss.
Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2022 actuarial valuation.
Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2022 and statutory/regulatory changes and board actions through January 2023.
During the time period between the valuation date and the publication of this report, inflation has been significantly higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements and downward pressure on the funded status in the June 30, 2023 valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists. At this time, we continue to believe the long-term inflation assumption of 2.3% is appropriate.
To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.
Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Breakdown of Entry Age Accrued Liability
Active Members $2,829,428
Transferred Members 727,331
Separated Members 128,821
Members and Beneficiaries Receiving Payments 8,558,327
Total $12,243,907
Allocation of Plan’s Share of Pool’s Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:
1. Plan’s Accrued Liability $12,243,907
2. Projected UAL Balance at 6/30/2022 1,367,966
3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0
4. Adjusted UAL Balance at 6/30/2022 for Asset Share 1,523,471
5. Pool’s Accrued Liability1 22,021,735,002
6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20221 2,453,954,297
7. Pool’s 2021-22 Investment (Gain)/Loss1 2,614,071,182
8. Pool’s 2021-22 Non-Investment (Gain)/Loss1 309,490,972
9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 1,432,149
10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 172,074
11. Plan’s New (Gain)/Loss as of 6/30/2022:(9) + (10) 1,604,223
12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0
13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0
14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0
15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0
16. Offset due to Funding Risk Mitigation 0
17. Plan’s Investment (Gain)/Loss: (9) – (16) 1,432,149 1 Does not include plans that transferred to Pool on the valuation date.
Development of the Plan’s Share of Pool’s Market Value
of Assets
18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $2,972,189
19. Plan’s Share of Pool’s MVA: (1) - (18) $9,271,718
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2022. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2024-25.
This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.
The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two year s from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.
Reason for Base
Date
Est.
Ramp
Level
2024-25
Ramp
Shape
Escalation
Rate
Amort.
Period
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Minimum
Required
Payment
2024-25
Side Fund
2013 or
Prior No Ramp 2.80% 0 (55) 0 (59) (61) 0 0
Investment (Gain)/Loss 6/30/13 100% Up/Dow n 2.80% 21 1,000,212 71,938 993,883 72,138 986,917 74,158 Non-Investment (Gain)/Loss 6/30/13 100% Up/Dow n 2.80% 21 (10,060) (724) (9,996) (726) (9,925) (746) Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.80% 13 605,822 54,748 590,439 55,203 573,540 56,748 Assumption Change 6/30/14 100% Up/Dow n 2.80% 12 457,343 49,014 437,789 49,557 416,344 50,944 Investment (Gain)/Loss 6/30/14 100% Up/Dow n 2.80% 22 (800,217) (55,895) (796,868) (56,003) (793,179) (57,571) Non-Investment (Gain)/Loss 6/30/14 100% Up/Dow n 2.80% 22 889 62 885 62 881 64 Investment (Gain)/Loss 6/30/15 100% Up/Dow n 2.80% 23 507,783 34,513 506,645 34,551 505,390 35,518 Non-Investment (Gain)/Loss 6/30/15 100% Up/Dow n 2.80% 23 (41,778) (2,840) (41,684) (2,843) (41,580) (2,922) Assumption Change 6/30/16 100% Up/Dow n 2.80% 14 184,988 17,625 179,353 17,786 173,168 18,284 Investment (Gain)/Loss 6/30/16 100% Up/Dow n 2.80% 24 36,280 2,343 36,326 2,409 36,307 2,476 Non-Investment (Gain)/Loss 6/30/16 100% Up/Dow n 2.80% 24 (78,259) (5,185) (78,222) (5,186) (78,182) (5,332) Assumption Change 6/30/17 100% Up/Dow n 2.80% 15 213,121 15,712 211,376 19,803 205,284 20,358 Investment (Gain)/Loss 6/30/17 100% Up/Dow n 2.80% 25 (320,034) (16,771) (324,464) (20,953) (324,874) (21,540) Non-Investment (Gain)/Loss 6/30/17 100% Up/Dow n 2.80% 25 (16,761) (878) (16,993) (1,097) (17,015) (1,128) Assumption Change 6/30/18 100% Up/Dow n 2.80% 16 352,297 19,217 356,394 25,807 353,959 33,162 Investment (Gain)/Loss 6/30/18 100% Up/Dow n 2.80% 26 (99,145) (3,904) (101,852) (5,197) (103,407) (6,678) Method Change 6/30/18 100% Up/Dow n 2.80% 16 96,769 5,279 97,894 7,089 97,225 9,109 Non-Investment (Gain)/Loss 6/30/18 100% Up/Dow n 2.80% 0 1 0 1 1 0 0 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 17 46,625 4,370 45,279 4,293 43,921 4,293 CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 14 Schedule of Amortization Bases (continued)
Reason for Base
Date
Est.
Ramp
Level
2024-25
Ramp
Shape
Escalation
Rate
Amort.
Period
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Minimum
Required
Payment
2024-25
Investment (Gain)/Loss 6/30/19 80% Up Only 0.00% 17 46,519 1,946 47,671 2,866 47,951 3,822 Investment (Gain)/Loss 6/30/20 60% Up Only 0.00% 18 223,294 4,891 233,423 9,595 239,380 14,393 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 18 39,739 3,633 38,687 3,568 37,630 3,568 Assumption Change 6/30/21 No Ramp 0.00% 19 43,620 (7,139) 53,964 4,853 52,618 4,853 Net Investment (Gain) 6/30/21 40% Up Only 0.00% 19 (1,063,285) 0 (1,135,588) (24,409) (1,187,583) (48,818) Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 19 (50,723) 0 (54,172) (4,871) (52,822) (4,871) Risk Mitigation 6/30/21 No Ramp 0.00% 0 306,017 (7,253) 334,322 345,502 0 0 Risk Mitigation Offset 6/30/21 No Ramp 0.00% 0 (313,036) 0 (334,322) (345,502) 0 0 Investment (Gain)/Loss 6/30/22 20% Up Only 0.00% 20 1,432,149 0 1,529,535 0 1,633,543 35,113 Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 20 172,074 0 183,775 0 196,272 17,649 Total 2,972,189 184,702 2,983,421 188,235 2,991,763 234,906 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 15 Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.
Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact the plan actuary.
The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that d ecrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.
In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.
The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 16 Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 15 Year Amortization 10 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2024 2,991,763 234,906 2,991,763 313,847 2,991,763 408,374 6/30/2025 2,952,444 257,100 2,870,861 313,847 2,773,173 408,374 6/30/2026 2,887,512 278,503 2,741,737 313,847 2,539,718 408,374 6/30/2027 2,796,047 295,265 2,603,833 313,847 2,290,388 408,374 6/30/2028 2,681,039 336,609 2,456,551 313,847 2,024,104 408,374 6/30/2029 2,515,483 343,015 2,299,254 313,847 1,739,713 408,374 6/30/2030 2,332,047 349,606 2,131,261 313,847 1,435,983 408,374 6/30/2031 2,129,327 356,374 1,951,844 313,847 1,111,599 408,373 6/30/2032 1,905,830 350,627 1,760,227 313,847 765,158 408,373 6/30/2033 1,673,074 344,365 1,555,580 313,847 395,159 408,373 6/30/2034 1,430,962 332,741 1,337,017 313,846
6/30/2035 1,184,400 314,761 1,103,593 313,847
6/30/2036 939,652 283,827 854,295 313,846
6/30/2037 710,230 184,324 588,046 313,847
6/30/2038 568,038 162,648 303,691 313,847
6/30/2039 438,578 145,232
6/30/2040 318,315 133,130
6/30/2041 202,377 101,288
6/30/2042 111,465 68,577
6/30/2043 48,176 49,787
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 4,922,685 4,707,703 4,083,737
Interest Paid 1,930,922 1,715,940 1,091,974
Estimated Savings 214,982 838,948
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 17
Employer Contribution History
The table below provides a recent history of the required and discretionary employer contributions for the plan.
The required amounts are based on the actuarial valuation from two years prior without subsequent adjustments, if any. Additional discretionary payments before July 1, 2019 or after April 28, 2023 are not included. [
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 8.377% $121,132 N/A
2017 - 18 8.418% 141,952 N/A
2018 - 19 8.892% 172,062 N/A
2019 - 20 9.680% 204,262 300,000
2020 - 21 10.484% 228,972 0
2021 - 22 10.34% 247,149 300,000
2022 - 23 10.32% 218,363 0
2023 - 24 11.84% 188,235
2024 - 25 11.88% 234,906
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.
Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2013 $7,653,045 $5,945,775 $1,707,270 77.7% $1,254,808 06/30/2014 8,535,818 7,002,321 1,533,497 82.0% 1,101,402 06/30/2015 8,902,740 6,993,380 1,909,360 78.6% 1,167,387 06/30/2016 9,177,231 6,676,215 2,501,016 72.7% 915,930
06/30/2017 9,649,186 7,186,597 2,462,589 74.5% 800,536
06/30/2018 10,435,403 7,620,771 2,814,632 73.0% 926,700 06/30/2019 10,837,660 7,909,737 2,927,923 73.0% 954,655 06/30/2020 11,114,874 8,270,678 2,844,196 74.4% 814,085 06/30/2021 11,746,104 9,949,216 1,796,888 84.7% 914,698 06/30/2022 12,243,907 9,271,718 2,972,189 75.7% 839,680 Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Funded Status – Termination Basis
CalPERS Actuarial Valuation – June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 19 Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.
The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2042.
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.
The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.
The following table shows the effect of a one or two standard deviation investment loss i n FY 2022-23 on the FY 2025-26 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5 - year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2025-26.
Assumed Annual Return for
Fiscal Year 2022-23
Required
Employer
Contributions
Projected
Employer
Contributions
2024-25 2025-26
(17.2)% (2 standard deviation loss)
Normal Cost Rate 11.88% 11.9%
UAL Contribution $234,906 $311,000
(5.2)% (1 standard deviation loss)
Normal Cost Rate 11.88% 11.9%
UAL Contribution $234,906 $284,000
• Without investment gains (returns higher than 6.8%) in FY 2023-24 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2022-23.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2025-26 as well as to model other investment return scenarios .
Assumed Annual Return
FY 2022-23
through 2041-42
Projected Employer Contributions
2025-26 2026-27 2027-28 2028-29 2029-30
3.0% (5th percentile)
Normal Cost Rate 11.9% 11.9% 11.9% 11.9% 11.9%
UAL Contribution $266,000 $305,000 $348,000 $425,000 $476,000
10.8% (95th percentile)
Normal Cost Rate 12.1% 12.4% 12.6% 12.9% 13.1%
UAL Contribution $249,000 $255,000 $247,000 $253,000 $214,000 CalPERS Actuarial Valuation – June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 20 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2022 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of
5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.
Sensitivity to the Real Rate of Return Assumption
As of June 30, 2022 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 23.67% 18.81% 15.11%
b) Accrued Liability $13,860,131 $12,243,907 $10,918,483 c) Market Value of Assets $9,271,718 $9,271,718 $9,271,718 d) Unfunded Liability/(Surplus) [(b) - (c)] $4,588,413 $2,972,189 $1,646,765 e) Funded Ratio 66.9% 75.7% 84.9%
Sensitivity to the Price Inflation Assumption
As of June 30, 2022 1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 19.74% 18.81% 17.15%
b) Accrued Liability $12,685,887 $12,243,907 $11,275,894 c) Market Value of Assets $9,271,718 $9,271,718 $9,271,718 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,414,169 $2,972,189 $2,004,176 e) Funded Ratio 73.1% 75.7% 82.2%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2022 plan costs and funded status under two different longevity scenarios, namely assuming post-retirementrates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.
As of June 30, 2022 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 19.13% 18.81% 18.51%
b) Accrued Liability $12,490,524 $12,243,907 $12,017,434 c) Market Value of Assets $9,271,718 $9,271,718 $9,271,718 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,218,806 $2,972,189 $2,745,716 e) Funded Ratio 74.2% 75.7% 77.2%
CalPERS Actuarial Valuation – June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables , and changes in longevity or other demographic assumptions.
Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2021 June 30, 2022
1. Retired Accrued Liability $7,618,527 $8,558,327
2. Total Accrued Liability 11,746,104 12,243,907
3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.65 0.70 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.
To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.
For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2021, was 0.78 and was calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.
Support Ratio June 30, 2021 June 30, 2022
1. Number of Actives 14 12
2. Number of Retirees 38 40
3. Support Ratio [(1) / (2)] 0.37 0.30
CalPERS Actuarial Valuation – June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a yearto-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next.
Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.
Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.
Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.
Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.
Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with LVR of 8 is expected to have twice the contribution volatility of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.
Contribution Volatility June 30, 2021 June 30, 2022
1. Market Value of Assets $9,949,216 $9,271,718
2. Payroll 914,698 839,680
3. Asset Volatility Ratio (AVR) [(1) / (2)] 10.9 11.0
4. Accrued Liability $11,746,104 $12,243,907
5. Liability Volatility Ratio (LVR) [(4) / (2)] 12.8 14.6 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.58 0.44 9.0 12.1
06/30/2018 0.56 0.44 8.2 11.3
06/30/2019 0.56 0.43 8.3 11.4
06/30/2020 0.65 0.35 10.2 13.7
06/30/2021 0.65 0.37 10.9 12.8
06/30/2022 0.70 0.30 11.0 14.6
CalPERS Actuarial Valuation – June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2022. The accrued liability on a termination basis (termination liability) is calculated differently compared to the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.
A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to seven months after.
Discount Rate: 1.75%
Price Inflation: 2.50%
Discount Rate: 4.50%
Price Inflation: 2.75%
Market
Value of
Assets (MVA)
Termination
Liability1,2
Funded
Ratio
Unfunded
Termination
Liability
Termination
Liability1,2
Funded
Ratio
Unfunded
Termination
Liability
$9,271,718 $25,273,612 36.7% $16,001,894 $16,151,649 57.4% $6,879,931 1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report. 2 The discount rate used for termination valuations is a w eighted average of the 10-year and 30-year U.S. Treasury yields w here the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield w as 3.38% on June 30, 2022, the valuation date.
In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to provide a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. Before beginning this process, please consult with the plan actuary.
CalPERS Actuarial Valuation – June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:
June 30, 2021 June 30, 2022
Active Members
Counts 14 12
Average Attained Age 51.8 50.8
Average Entry Age to Rate Plan 36.7 36.5
Average Years of Credited Service 15.4 14.6
Average Annual Covered Pay $65,336 $69,973
Annual Covered Payroll $914,698 $839,680
Present Value of Future Payroll $7,354,079 $7,011,683
Transferred Members 19 18
Separated Members 12 13
Retired Members and Beneficiaries*
Counts 38 40
Average Annual Benefits $15,476 $16,649
Total Annual Benefits $588,091 $665,962
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.
List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.
Benefit Group
Member Category Misc Misc
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 100555 207855
Benefit Provision
Benefit Formula 2% @ 55
Social Security Coverage Yes
Full/Modified Modified
Employee Contribution Rate 7.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2000 $2000
Survivor Allowance (PRSA) No No
COLA 2% 2%
CALPERS ACTUARIAL VALUATION - June 30, 2022
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 26 Section 2
CAL I F O RNI A P UBL I C EM P L O YEES ’ RET I REM ENT S YS T EM Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms and Publications section
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2023
PEPRA Safety Fire Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2022
Dear Employer,
Attached to this letter is the June 30, 2022 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2024-25. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.
Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2022.
Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Safety Risk Pool Actuarial Valuation Report for June 30, 2022.
Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.
Required Contributions
The table below shows the minimum required employer contributions and the PEPRA member contribution rate for FY 2024-25 along with estimates of the required contributions for FY 2025-26. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Contribution Rate
2024-25 13.76% $5,373 13.75%
Projected Results
2025-26 13.8% $9,000 TBD
PEPRA Safety Fire Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2022
The actual investment return for FY 2022-23 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2022- 23 differs from 6.8%, the actual contribution requirements for FY 2025-26 will differ from those shown above.
For additional details regarding the assumptions and methods used for these projections,please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section. This section also contains projected required contributions through FY2029-30.
Changes from Previous Year’s Valuations
There are no significant changes in actuarial assumptions or policies in the 2022 actuarial valuation. There may be changes specific to the plan such as contract amendments and funding changes.
Further descriptions of general changes are included in “Highlights and Executive Summary” and in Appendix A of the Section 2 report in “Actuarial Methods and Assumptions.” The effects of any changes on the required contributions are included in “Reconciliation of Required Employer Contributions,” also in the Section 2 report.
Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact Center at (888)-CalPERS or (888-225-7377).
Sincerely,
SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
RANDALL DZIUBEK, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Actuarial Valuation
as of June 30, 2022
for the
PEPRA Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
Required Contributions
for Fiscal Year
July 1, 2024 - June 30, 2025
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
CAL I F O RNI A P UBL I C EM P L O YEES ’ RET I REM ENT S YS T EM Plan Specific Information
for the
PEPRA Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 25614)
Rate Plan belonging to the Safety Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Funded Status – Funding Policy Basis 6
Projected Employer Contributions 7
Other Pooled Safety Risk Pool Rate Plans 8
Cost 9
Changes Since the Prior Year’s Valuation 10
Subsequent Events 10
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 12
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 12 Development of Plan’s Share of Pool’s Market Value of Assets 12 Schedule of Amortization Bases 13
Amortization Schedule and Alternatives 14
Employer Contribution History 16
Funding History 16
Risk Analysis
Future Investment Return Scenarios 18
Discount Rate Sensitivity 19
Mortality Rate Sensitivity 19
Maturity Measures 20
Maturity Measures History 21
Funded Status – Termination Basis 22
Participant Data 23
List of Class 1 Benefit Provisions 23
Plan’s Major Benefit Options 24
PEPRA Member Contribution Rates 25
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
To the best of our knowledge, this report, compris ed of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Safety Fire Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2022 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.
As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the Safety Risk Pool has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.
Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the rate plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability amortization bases as of June 30, 2022 and employer contribution as of July 1, 2024 have been properly and accurately determined in accordance with the principles and standards stated above.
The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.
TONY CUNY, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Funded Status – Funding Policy Basis
• Projected Employer Contributions
• Other Pooled Safety Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2022 actuarial valuation of the PEPRA Safety Fire Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2024-25.
Purpose of Section 1
This Section 1 report for the PEPRA Safety Fire Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2022. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2022; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2024 through June 30, 2025;
• Determine the required member contribution rate for FY July 1, 2024 through June 30, 2025 for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2022 to the CalPERS Board of Administration (board) and other interested parties.
The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).
The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact the plan actuary before disseminating any portion of this report for any reason that is not explicitly described above.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of Actuarial Standard of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Required Contributions
Fiscal Year
Required Employer Contributions 2024-25
Employer Normal Cost Rate 13.76%
Plus
Required Payment on Amortization Bases1 $5,373
Paid either as
1) Monthly Payment $447.75
Or
2) Annual Prepayment Option* $5,199
Required PEPRA Member Contribution Rate 13.75%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).
For additional detail regarding the determination of the required contribution rate for PEPRA members, see “PEPRA Member Contribution Rates” section.
Fiscal Year Fiscal Year
2023-24 2024-25
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 27.29% 27.51%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Phase out of Normal Cost Difference3 0.00% 0.00%
Plan’s Total Normal Cost 27.29% 27.51%
Offset Due to Employee Contributions 13.75% 13.75%
Employer Normal Cost Rate 13.54% 13.76%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 28, 2023.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 When a rate plan joins the pool, the difference in normal cost betw een the pool and the rate plan is phased out over a fiveyear period in accordance with the CalPERS contribution allocation policy.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2024-25 is $5,373. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.
Provided below are select ADP options for consideration. Making such an ADP during FY 2024-25 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.
Agencies considering making an ADP should contact CalPERS for additional information.
Minimum Required Employer Contribution for Fiscal Year 2024-25 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$167,047 $5,373 $0 $5,373 $172,420
The minimum required contribution above is less than interest on the UAL. With no ADP the UAL is projected to increase over the following year. If the minimum UAL payment were split between interest and principal, the principal portion would be negative. This situation is referred to as negative amortization. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the “Amortization Schedule and Alternatives” section of the report (see columns labeled “Current Amortization Schedule”).
Fiscal Year 2024-25 Employer Contribution Necessary to Avoid Negative Amortization Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
$167,047 $5,373 $6,992 $12,365 $179,412
Alternative Fiscal Year 2024-25 Employer Contributions for Greater UAL Reduction Funding
Horizon
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
20 years $167,047 $5,373 $11,525 $16,898 $183,945
15 years $167,047 $5,373 $14,340 $19,713 $186,760
10 years $167,047 $5,373 $20,278 $25,651 $192,698
5 years $167,047 $5,373 $38,738 $44,111 $211,158
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year w ould have to be less or more than the amount show n to have the same effect on the UAL amortization.
Note that the calculations above are based on the projected UAL as of June 30, 2024 as determined in the June 30, 2022 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions , and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100 % funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years .
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 6
Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valuation date. The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.
A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.
Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual average future returns are less than the expected return, calculated normal costs and UAL contributions will not be s ufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:
The “Risk Analysis” section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.
June 30, 2021 June 30, 2022
1. Present Value of Benefits $3,702,702 $5,909,245
2. Entry Age Accrued Liability 770,915 1,146,990
3. Market Value of Assets (MVA) 802,586 994,142
4. Unfunded Accrued Liability (UAL) [(2) – (3)] ($31,671) $152,848
5. Funded Ratio [(3) / (2)] 104.1% 86.7%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%
1. Entry Age Accrued Liability $1,451,110 $1,146,990 $918,328
2. Market Value of Assets (MVA) 994,142 994,142 994,142
3. Unfunded Accrued Liability (UAL) [(1) – (2)] $456,968 $152,848 ($75,814)
4. Funded Ratio [(2) / (1)] 68.5% 86.7% 108.3%
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2022-23 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2022-23 and Beyond) Fiscal Year 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Rate Plan 25614 Results
Normal Cost % 13.76% 13.8% 13.8% 13.8% 13.8% 13.8%
UAL Payment $5,373 $9,000 $13,000 $16,000 $20,000 $20,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.
The required contribution for FY 2024-25 is less than interest on the UAL, a situation referred to as negative amortization, as explained in the “Additional Discretionary Employer Contributions” section earlier in this report.
If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the “Amortization Schedule and Alternatives” section of the report (see columns labelled “Current Amortization Schedule”).
For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section. Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 25614. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Safety Risk Pool are shown below and assume that the total employer payroll within the Safety Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. In a refinement since the prior year’s report, Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.
Fiscal Year Fiscal Year
2023-24 2024-25
Estimated Combined Employer Contributions for all Pooled Safety Rate Plans Projected Payroll for the Contribution Year $2,654,762 $3,368,196 Estimated Employer Normal Cost $435,428 $530,975
Required Payment on Amortization Bases $440,947 $528,960 Estimated Total Employer Contributions $876,375 $1,059,935 Estimated Total Employer Contribution Rate (illustrative only) 33.01% 31.47% CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2015-16, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2015-16, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There is an option to prepay this amount during July of each fiscal year.
The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.
The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.
We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2022, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 10
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.
This valuation generally reflects plan amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge.
The impact on the unfunded liability is included in the pool’s (gain)/loss.
Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2022 actuarial valuation.
Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2022 and statutory/regulatory changes and board actions through January 2023.
During the time period between the valuation date and the publication of this report, inflation has been significantly higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements and downward pressure on the funded status in the June 30, 2023 valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists. At this time, we continue to believe the long-term inflation assumption of 2.3% is appropriate.
To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.
Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Breakdown of Entry Age Accrued Liability
Active Members $788,285
Transferred Members 251,890
Separated Members 106,815
Members and Beneficiaries Receiving Payments 0
Total $1,146,990
Allocation of Plan’s Share of Pool’s Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:
1. Plan’s Accrued Liability $1,146,990
2. Projected UAL Balance at 6/30/2022 (20,977)
3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0
4. Adjusted UAL Balance at 6/30/2022 for Asset Share (20,977)
5. Pool’s Accrued Liability1 28,855,988,965
6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20221 4,262,073,817
7. Pool’s 2021-22 Investment (Gain)/Loss1 3,300,630,707
8. Pool’s 2021-22 Non-Investment (Gain)/Loss1 429,637,362
9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 156,747
10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 17,078
11. Plan’s New (Gain)/Loss as of 6/30/2022:(9) + (10) 173,825
12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0
13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0
14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0
15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0
16. Offset due to Funding Risk Mitigation 0
17. Plan’s Investment (Gain)/Loss: (9) – (16) 156,747
18. Partial Fresh Start Base: (2) + (17) 135,770
1 Does not include plans that transferred to Pool on the valuation date.
Development of the Plan’s Share of Pool’s Market Value
of Assets
19. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $152,848
20. Plan’s Share of Pool’s MVA: (1) - (19) $994,142
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 13
Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2022. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2024-25.
This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.
The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.
Reason for Base
Date
Est.
Ramp
Level
2024-25
Ramp
Shape
Escalation
Rate
Amort.
Period
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Minimum
Required
Payment
2024-25
Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 20 17,078 0 18,239 0 19,479 1,752 Partial Fresh Start 6/30/22 20% Up Only 0.00% 20 135,770 (12,301) 157,715 0 168,440 3,621 Total 152,848 (12,301) 175,954 0 187,919 5,373
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allo cation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.
The partial fresh start base established June 30, 2022 is the sum of the UAL balance from the June 30, 2021 valuation (projected to June 30, 2022) and the June 30, 2022 investment loss, as shown on the previous page.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 14
Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.
Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact the plan actuary.
The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.
In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.
The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 15
Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 20 Year Amortization 15 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2024 187,919 5,373 187,919 16,898 187,919 19,713
6/30/2025 195,145 8,993 183,234 16,898 180,325 19,713
6/30/2026 199,121 12,614 178,231 16,898 172,215 19,713
6/30/2027 199,626 16,234 172,888 16,898 163,553 19,713
6/30/2028 196,424 19,854 167,181 16,898 154,302 19,713
6/30/2029 189,263 19,855 161,086 16,899 144,422 19,714
6/30/2030 181,614 19,855 154,576 16,898 133,869 19,713
6/30/2031 173,445 19,855 147,624 16,899 122,600 19,713
6/30/2032 164,720 19,854 140,198 16,898 110,565 19,714
6/30/2033 155,403 19,855 132,268 16,898 97,710 19,714
6/30/2034 145,452 19,855 123,799 16,898 83,981 19,713
6/30/2035 134,824 19,854 114,754 16,899 69,319 19,713
6/30/2036 123,474 19,854 105,093 16,898 53,660 19,713
6/30/2037 111,352 19,854 94,776 16,898 36,937 19,714
6/30/2038 98,406 19,853 83,758 16,899 19,075 19,713
6/30/2039 84,581 19,855 71,989 16,898
6/30/2040 69,814 19,855 59,421 16,899
6/30/2041 54,042 19,853 45,998 16,899
6/30/2042 37,200 19,854 31,662 16,898
6/30/2043 19,212 19,854 16,352 16,899
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 360,883 337,967 295,699
Interest Paid 172,964 150,048 107,780
Estimated Savings 22,916 65,184
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 16
Employer Contribution History
The table below provides a recent history of the required and discretionary employer contributions for the plan.
The required amounts are based on the actuarial valuation from two years prior without subsequent adjustments, if any. Additional discretionary payments before July 1, 2019 or after April 28, 2023 are not included. [
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 12.082% $0 N/A
2017 - 18 11.990% 168 N/A
2018 - 19 12.141% 413 N/A
2019 - 20 13.034% 5,051 0
2020 - 21 13.044% 4,462 0
2021 - 22 13.13% 4,780 0
2022 - 23 12.78% 5,392 0
2023 - 24 13.54% 0
2024 - 25 13.76% 5,373
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.
Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2013 $5,855 $8,593 ($2,738) 146.8% $155,537
06/30/2014 40,461 45,388 (4,927) 112.2% 167,666
06/30/2015 79,143 78,402 741 99.1% 177,754
06/30/2016 124,084 112,578 11,506 90.7% 267,787
06/30/2017 184,498 172,145 12,353 93.3% 212,135
06/30/2018 272,305 246,194 26,111 90.4% 296,984
06/30/2019 353,045 315,252 37,793 89.3% 539,403
06/30/2020 529,051 476,774 52,277 90.1% 667,016
06/30/2021 770,915 802,586 (31,671) 104.1% 685,221
06/30/2022 1,146,990 994,142 152,848 86.7% 1,082,919
Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Funded Status – Termination Basis
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 18
Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.
The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2042.
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.
The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.
The following table shows the effect of a one or two standard deviation investment loss in FY 2022-23 on the FY 2025-26 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5 - year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2025-26.
Assumed Annual Return for
Fiscal Year 2022-23
Required
Employer
Contributions
Projected
Employer
Contributions
2024-25 2025-26
(17.2)% (2 standard deviation loss)
Normal Cost Rate 13.76% 13.8%
UAL Contribution $5,373 $15,000
(5.2)% (1 standard deviation loss)
Normal Cost Rate 13.76% 13.8%
UAL Contribution $5,373 $12,000
• Without investment gains (returns higher than 6.8%) in FY 2023-24 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2022-23.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2025-26 as well as to model other investment return scenarios .
Assumed Annual Return
FY 2022-23
through 2041-42
Projected Employer Contributions
2025-26 2026-27 2027-28 2028-29 2029-30
3.0% (5th percentile)
Normal Cost Rate 13.8% 13.8% 13.8% 13.8% 13.8%
UAL Contribution $9,900 $15,000 $22,000 $29,000 $34,000
10.8% (95th percentile)
Normal Cost Rate 14.1% 14.5% 14.3% 14.7% 15.0%
UAL Contribution $8,200 $10,000 $11,000 $11,000 $0
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 19
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2022 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of
5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.
Sensitivity to the Real Rate of Return Assumption
As of June 30, 2022 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 34.63% 27.51% 22.13%
b) Accrued Liability $1,451,110 $1,146,990 $918,328
c) Market Value of Assets $994,142 $994,142 $994,142
d) Unfunded Liability/(Surplus) [(b) - (c)] $456,968 $152,848 ($75,814) e) Funded Ratio 68.5% 86.7% 108.3%
Sensitivity to the Price Inflation Assumption
As of June 30, 2022 1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 29.07% 27.51% 24.85%
b) Accrued Liability $1,210,552 $1,146,990 $1,036,092
c) Market Value of Assets $994,142 $994,142 $994,142
d) Unfunded Liability/(Surplus) [(b) - (c)] $216,410 $152,848 $41,950 e) Funded Ratio 82.1% 86.7% 96.0%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2022 plan costs and funded status under two different longevity scenarios, namely assuming post-retirementrates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.
As of June 30, 2022 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 27.87% 27.51% 27.17%
b) Accrued Liability $1,165,140 $1,146,990 $1,130,118
c) Market Value of Assets $994,142 $994,142 $994,142
d) Unfunded Liability/(Surplus) [(b) - (c)] $170,998 $152,848 $135,976 e) Funded Ratio 85.3% 86.7% 88.0%
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 20
Maturity Measures
As pension plans mature they become more sensitive to risks . Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables , and changes in longevity or other demographic assumptions.
Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2021 June 30, 2022
1. Retired Accrued Liability $0 $0
2. Total Accrued Liability 770,915 1,146,990
3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.00 0.00 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.
To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.
For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2021, was 0.78 and was calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.
Support Ratio June 30, 2021 June 30, 2022
1. Number of Actives 11 17
2. Number of Retirees 0 0
3. Support Ratio [(1) / (2)] N/A N/A
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a yearto-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next.
Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.
Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.
Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.
Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.
Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with LVR of 8 is expected to have twice the contribution volatil ity of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.
Contribution Volatility June 30, 2021 June 30, 2022
1. Market Value of Assets $802,586 $994,142
2. Payroll 685,221 1,082,919
3. Asset Volatility Ratio (AVR) [(1) / (2)] 1.2 0.9
4. Accrued Liability $770,915 $1,146,990
5. Liability Volatility Ratio (LVR) [(4) / (2)] 1.1 1.1 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.00 N/A 0.8 0.9
06/30/2018 0.00 N/A 0.8 0.9
06/30/2019 0.00 N/A 0.6 0.7
06/30/2020 0.00 N/A 0.7 0.8
06/30/2021 0.00 N/A 1.2 1.1
06/30/2022 0.00 N/A 0.9 1.1
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2022. The accrued liability on a termination basis (termination liability) is calculated differently compared to the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.
A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to seven months after.
Discount Rate: 1.75%
Price Inflation: 2.50%
Discount Rate: 4.50%
Price Inflation: 2.75%
Market
Value of
Assets (MVA)
Termination
Liability1,2
Funded
Ratio
Unfunded
Termination
Liability
Termination
Liability1,2
Funded
Ratio
Unfunded
Termination
Liability
$994,142 $2,847,395 34.9% $1,853,253 $1,253,759 79.3% $259,617 1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report. 2 The discount rate used for termination valuations is a w eighted average of the 10-year and 30-year U.S. Treasury yields w here the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield w as 3.38% on June 30, 2022, the valuation date.
In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to provide a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. Before beginning this process, please consult with the plan actuary.
CalPERS Actuarial Valuation – June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:
June 30, 2021 June 30, 2022
Active Members
Counts 11 17
Average Attained Age 34.9 33.3
Average Entry Age to Rate Plan 32.5 30.7
Average Years of Credited Service 2.4 2.4
Average Annual Covered Pay $62,293 $63,701
Annual Covered Payroll $685,221 $1,082,919
Present Value of Future Payroll $10,885,471 $18,080,738 Transferred Members 5 9
Separated Members 4 4
Retired Members and Beneficiaries*
Counts 0 0
Average Annual Benefits $0 $0
Total Annual Benefits $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.
List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.
Benefit Group
Member Category Fire
Demographics
Actives Yes
Transfers/Separated Yes
Receiving No
Benefit Group Key 109972
Benefit Provision
Benefit Formula 2.7% @ 57
Social Security Coverage Yes
Full/Modified Full
Employee Contribution Rate 13.75%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2000
Survivor Allowance (PRSA) No
COLA 2%
CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
PEPRA Member Contribution Rates
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost for the plan is dependent on the benefit levels, actuarial assumptions, and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate change by more than 1% from the base total normal cost rate, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.
The table below shows the determination of the PEPRA member contribution rates effective July 1, 2024, based on 50% of the total normal cost rate as of the June 30, 2022 valuation.
Basis for Current Rate Rates Effective July 1, 2024
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
25614 Safety Fire PEPRA Level 27.29% 13.75% 27.51% 0.22% No 13.75% CALPERS ACTUARIAL VALUATION - June 30, 2022
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 26
Section 2
CAL I F O RNI A P UBL I C EM P L O YEES ’ RET I REM EN T S YS T EM Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms and Publications section
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2023
Safety Fire Plan of the City of Kingsburg (CalPERS ID: 1210886769) Annual Valuation Report as of June 30, 2022
Dear Employer,
Attached to this letter is the June 30, 2022 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2024-25. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.
Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2022.
Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Safety Risk Pool Actuarial Valuation Report for June 30, 2022.
Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.
Required Contributions
The table below shows the minimum required employer contributions for FY 2024-25 along with estimates of the required contributions for FY 2025-26. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2024-25 23.00% $147,912
Projected Results
2025-26 23.0% $160,000
Safety Fire Plan of the City of Kingsburg
(CalPERS ID: 1210886769)
Annual Valuation Report as of June 30, 2022