Lake Forest City Council
June 4, 2024

Attachment CC Page 5 of 11

2. Allocation Methodology for Cross-Jurisdictional Commercial/Multi-family Cart Collection Route

For cross-jurisdictional Commercial/Multi-family Cart collection routes where businesses are serviced using Carts in both Cities, the Contractor shall use the following allocation methodology to accurately allocate tonnage between the two cities and collection sectors (commercial and multi-family). The allocation shall factor in City-specific and sector-specific densities of various material streams, as described below. Note:

Allocations will not be needed for multi-jurisdictional or cross-sector materials collected in Bins since there will be on-board scales used to measure the net weight of all Bins collected.

1. Calculate the average density for the following Commercial and Multi-family Cart streams using city-specific data:

a. Lake Forest specific Commercial MSW Cart lbs. per cubic yard b. Laguna Hills specific Commercial MSW Cart lbs. per cubic yard c. Lake Forest specific Multi-family MSW Cart lbs. per cubic yard d. Laguna Hills specific Multi-family MSW Cart lbs. per cubic yard e. Lake Forest specific Commercial Recycling Cart lbs. per cubic yard f. Laguna Hills specific Commercial Recycling Cart lbs. per cubic yard g. Lake Forest specific Multi-family Recycling Cart lbs. per cubic yard h. Laguna Hills specific Multi-family Recycling Cart lbs. per cubic yard i. Lake Forest specific Commercial Food Scrap Cart lbs. per cubic yard j. Laguna Hills specific Commercial Food Scrap Cart lbs. per cubic yard k. Lake Forest specific Multi-family Food Scrap Cart lbs. per cubic yard l. Laguna Hills specific Multi-family Food Scrap Cart lbs. per cubic yard m. Lake Forest specific Commercial Yard Trimming Cart lbs. per cubic yard n. Laguna Hills specific Commercial Yard Trimming Cart lbs. per cubic yard o. Lake Forest specific Multi-family Yard Trimming Cart lbs. per cubic yard p. Laguna Hills specific Multi-family Yard Trimming Cart lbs. per cubic yard q. Lake Forest specific Commercial Co-collected Yard Trimming and Food Scrap Cart lbs. per cubic yard
r. Laguna Hills specific Commercial Co-collected Yard Trimming and Food Scrap Cart lbs. per cubic yard
s. Lake Forest specific Multi-family Co-collected Yard Trimming and Food Scrap Cart lbs. per cubic yard
t. Laguna Hills specific Multi-family Co-collected Yard Trimming and Food Scrap Cart lbs. per cubic yard

2. To calculate the average densities shown above, prior to initiating operations, the Contractor shall complete the following analysis:
a. Calculate total monthly tonnage collected for each of the streams noted above as items 1a-1t using the data provided in the background section Item: 13
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ATTACHMENT CC
Allocation Methodology for Multi-Jurisdictional Residential Routes and Cross-Sector Cart Collection

Attachment CC Page 6 of 11

and appendices to the RFP or more recent data provided by the incumbent hauler.
b. Calculate number of monthly cubic yards for each of the streams noted above as items 1a-1t using the data provided in the background section and appendices to the RFP or more recent data provided by the incumbent hauler.
c. Divide the total weight collected for each of the streams noted above as items 1a-1t by the number of cubic yards collected to determine the average weight density.

3. In addition to calculating the average density using tonnage and service data as noted above, Contractor shall also conduct a field study to weigh Commercial and Multi-family containers that are set out for service using a platform scale.

Contractor shall collect the net weight (i.e. gross weight minus container weight) for 5-10 containers that are over 70% full from each of the categories shown above (1a-1t) for containers on routes that are targeted for cross-jurisdictional collection to identify the field weight of containers.
a. The field weight shall be divided by the volume of the container to determine the field density of the material.
i. If the 90-gal MSW container weighed 50 lbs., the density would be calculated as follows:

1. 50 lbs. / (90 gal/ 202 gal per cubic yard) = 111 lbs. per cubic yard

4. The average of the two density values (calculated density identified in Step 2 above and the field-identified density identified in Step 3 above) shall be used to determine the density factor for the Commercial and Multi-family Cart sector. The average density values for each City and each stream are included as bolded values in Table 6 below.

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ATTACHMENT CC
Allocation Methodology for Multi-Jurisdictional Residential Routes and Cross-Sector Cart Collection

Attachment CC Page 7 of 11

Table 6. Average Density Values
LF LH Density Factor
Calculated Field Average Calculated Field Average LF LH Commercial MSW Cart 90 100 95 80 90 85 53% 47%
Multi-family MSW Cart 95 105 100 70 67 68.5 59% 41%
Commercial Recycling
Cart 20 25 22.5 15 27 21 52% 48%
Multi-family Recycling
Cart 12 15 13.5 50 28 39 26% 74%
Commercial Food
Scraps Cart 150 200 175 175 250 212.5 45% 55%
Multi-family Food
Scraps Cart 125 180 152.5 180 150 165 48% 52%
Commercial Yard
Trimmings Cart 110 105 107.5 125 100 112.5 49% 51%
Multi-family Yard
Trimmings Cart 90 80 85 80 90 85 50% 50%
Commercial Co-
collected Food Scraps
and Yard trimmings Cart 80 100 90 100 90 95 49% 51%
Multi-family Co-
collected Food Scraps
and Yard trimmings Cart 75 90 82.5 80 75 77.5 52% 48%

5. The density factor for each City for each of the streams noted above as items 1a- 1t shall be calculated by dividing the average density for each City calculated in Step 3 by the two cities’ average densities added together. The density factors calculated for the commercial and multi-family streams are included on the right column in Table 6 above. An example density calculation is included below.

a. Density factor for LF Commercial Cart MSW (using data in the table above):
i. LF average Commercial MSW density (95 lbs./CY) / (LF average MSW density (95 lbs./CY) plus LH average MSW density (85 lbs./CY)) = 53%

1. LF Commercial MSW Cart Density Factor = 53%

b. Density factor for LH Commercial Cart MSW (using data in the table above):
i. LH average Commercial Cart MSW density (85 lbs./CY) / LH average Commercial Cart MSW density (85 lbs./CY) plus LF average Commercial MSW Cart density (95 lbs./CY) = 47%

1. LH Commercial MSW Cart Density Factor = 47%

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ATTACHMENT CC
Allocation Methodology for Multi-Jurisdictional Residential Routes and Cross-Sector Cart Collection

Attachment CC Page 8 of 11

6. The percentage of Cart volume collected on the route between each City shall be calculated as a percentage. For example, if the cross-jurisdictional Commercial MSW Cart collection route collected 20 cubic yards from Lake Forest Cart accounts and 30 cubic yards from Laguna Hills cart accounts, the percentage volume allocation between the route would be 40% (20/(20+30)) Lake Forest volume and 60% (30/(30+20)) Laguna Hills volume. Complete the volume percentage allocation calculation for each cross-jurisdictional Cart route as shown in Columns B and C in Table 7.

Table 7. Volume Allocation for Cross-jurisdictional and Cross-Sector Cart Routes

A B C D E F

LF CART
VOLUME
(CY)

LH CART
VOLUME

LF CART
VOLUME
%

LH CART
VOLUME
%
LF
COM/MF
VOL
LH
COM/MF
VOL
Commercial MSW Carts 20 30 40% 60% 80% 20%
Multi-family MSW Carts 15 25 38% 63% 20% 80%
Commercial Recycling Carts 10 40 20% 80% 40% 60%
Multi-family Recycling Carts 20 32 38% 62% 60% 40%
Commercial Food Scraps Carts 15 12 56% 44% 20% 80%
Multi-family Food Scraps Carts 23 12 66% 34% 80% 20%
Commercial Yard Trimmings Carts 5 4 56% 44% 50% 50%
Multi-family Yard Trimmings Carts 8 12 40% 60% 50% 50%
Commercial Co-collected Food
Scraps and Yard trimmings Carts 9 11 45% 55% 55% 35%
Multi-family Co-collected Food
Scraps and Yard trimmings Carts 11 9 55% 45% 45% 65%

7. Calculate the sector allocation for Cart service between Commercial and Multi- family volumes for each City and Stream.
a. For example, if there were 10 cubic yards of MSW cart service in LF and 8 cubic yards were from Commercial Cart Customers and 2 cubic yards were from Multi-family Cart customers, the sector allocation would be 80% Commercial and 20% Multi-family. These sector volume values are shown in columns E and F of Table 7 above.

8. Average the Density Factor calculated in Step 5 with the volume allocation percentage calculated in step 6 to determine the weighted-average allocation factor for each City and each stream, as shown in Table 8. a. For Lake Forest, the Commercial Cart MSW weighted-average allocation factor is 46% ((53% Commercial MSW Cart Density Factor + 40% Commercial MSW Cart Volume Allocation) / 2 )
b. For Laguna Hills, the Commercial MSW Cart weighted-average allocation factor is 54% ((47% MSW Density Factor + 60% MSW Volume Allocation) / 2 )
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ATTACHMENT CC
Allocation Methodology for Multi-Jurisdictional Residential Routes and Cross-Sector Cart Collection

Attachment CC Page 9 of 11

Table 8 Average of Density Factor and Weighted Average Allocation Percentage

LF Avg
Density
Factor +
Volume
LH Avg
Density
Factor +
Volume
Commercial MSW Cart 46% 54%
Multi-family MSW Cart 48% 52%
Commercial Recycling Cart 36% 64%
Multi-family Recycling Cart 32% 68%
Commercial Food Scraps Cart 50% 50%
Multi-family Food Scraps Cart 57% 43%
Commercial Yard Trimmings Cart 52% 48%
Multi-family Yard Trimmings Cart 45% 55%
Commercial Co-collected Food Scraps and
Yard trimmings Cart 47% 53%
Multi-family Co-collected Food Scraps and
Yard trimmings Cart 53% 47%

9. Multiply the total tons collected on the cross-jurisdictional route by the sector allocation calculated in Step 7 by the weighted average allocation percentage calculated in Step 8 to determine the amount of tons of each commodity collected on cross-jurisdictional and cross-sector routes in each City as shown in Table 9 below. Note: Cart-specific tonnage collected on each route may be calculated by subtracting the total load weight for the route minus the aggregate weights of materials collected in bins measured using on-board scales. a. If 4 tons of Cart-collected MSW were collected on a cross-jurisdictional route that also mixed sectors (Commercial and Multi-family), the following calculations would apply:
i. To calculate LF Commercial MSW Cart tonnage, multiply the 4 tons of Cart-collected materials for the entire route by the 80% Commercial sector allocation and by the 46% weighted average allocation percentage to obtain 1.49 tons.
ii. To calculate LF Multi-family MSW Cart tonnage, multiply the 4 tons of Cart-collected materials for the entire route by the 20% Multi-family sector allocation and by the 48% weighted average allocation percentage to obtain 0.39 tons.
iii. To calculate LH Commercial MSW Cart tonnage, multiply the 4 tons of Cart-collected materials for the entire route by the 20% Commercial sector allocation and by the 54% weighted average allocation percentage to obtain 0.43 tons.

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ATTACHMENT CC
Allocation Methodology for Multi-Jurisdictional Residential Routes and Cross-Sector Cart Collection

Attachment CC Page 10 of 11

iv. To calculate LH Multi-family MSW Cart tonnage, multiply the 4 tons of Cart-collected materials for the entire route by the 80% Multi- family sector allocation and by the 52% weighted average allocation percentage to obtain 1.66 tons.
v. Due to the application of several percentages to the Cart-collected tonnage value, summing the four allocated weights may not add up to exactly the original Cart-collected tonnage amount. Contractor may round to the nearest tenth of a ton to achieve mass conservation between the four allocations. Any rounding or calculations to achieve mass balance must be noted in the Contractors’ allocation report to the City.

Table 9. Cross-jurisdictional Tonnage Allocation

LF Avg
Density
Factor +
Volume
LF Com VS
MF
Allocation
LH Avg
Density
Factor +
Volume
LH Com vs
MF
Allocation
Cart Tons
Collected on
Cross-
jurisdictional
Route
LF Tonnage
Allocations
LH Tonnage
Allocations
Commercial
MSW Cart 46% 80% 54% 20% 4.00 1.49 0.43 Multi-family
MSW Cart 48% 20% 52% 80% 0.39 1.66
Commercial
Recycling Cart 36% 40% 64% 60% 2.00 0.29 0.8 Multi-family
Recycling Cart 32% 60% 68% 40% 0.39 0.5 Commercial
Food Scraps
Cart 50% 20% 50% 80% 5.00 0.50 2.0 Multi-family
Food Scraps
Cart 57% 80% 43% 20% 2.27 0.4
Commercial
Yard Trimmings
Cart 52% 50% 48% 50% 3.00 0.78 0.7 Multi-family
Yard Trimmings
Cart 45% 50% 55% 50% 0.68 0.8
Commercial Co-
collected Food
Scraps and Yard
trimmings Cart 47% 55% 53% 35% 3.50 0.90 0.7 Multi-family Co-
collected Food
Scraps and Yard
trimmings Cart 53% 45% 47% 65% 0.84 1.1

10. Prior to initiating operation, and no later than May 1, 2025, Contractor shall submit the allocation calculations shown in this Attachment CC to the City for review. The City, in its sole discretion, may require the Contractor to gather Item: 13
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ATTACHMENT CC
Allocation Methodology for Multi-Jurisdictional Residential Routes and Cross-Sector Cart Collection

Attachment CC Page 11 of 11

additional data from the field or perform additional analysis to further refine the allocation.

11. Contractor shall repeat Steps above 1 – 10 above annually and submit results to the City no later than May 1, 2025 and each May 1 thereafter.

12. Contractor shall provide quarterly calculations to the City showing how tonnage is allocated to each City as described in Attachment k.

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1. Which brand of on-board scales are you proposing to use on vehicles that are servicing accounts in both Cities?
CR&R has extensive experience utilizing Ai r-Weigh BinMaxx Front Loader Scales and recommends their use to accurately report tonnage collected on Commercial and Multi-Family Cross-Jurisdictional Routes.

2. How will each account being serviced be linked to the scale records? Will the Proposer use RFID tags? Barcodes? Geo-fencing? Manual processes using the on- board CRM system?
CR&R’s CRM system is fully integrated with Air-Weigh with our Mobile-Pak tablets automatically registering service and communicating directly with the scales through Bluetooth.

3. How much will it cost to purchase and install the on-board scales? Each unit costs approximately $7,000 with installation handled onsite by our specialty maintenance staff. CR&R also has a strong work ing relationship with Air-Weigh and has direct access to company staff for guidance and support.

4. What is the software licensing cost, if any, for the on-board scales? There are no monthly fees beyond the hardware (scales) and Bluetooth receiver (approximately $300).

5. How often will the scales need to be calibrated and maintained in order to be accurate?
CR&R works directly with Air-Weigh to certify our onsite calibration procedures, which occur no less than every six (6) months with the ability to monitor accuracy and scale condition daily if additional adjustments are required.

6. What level of precision is anticipated with the on-board scales (i.e., plus or minus 10 lbs. or 100 lbs.)?
All on-board scales work best with heavier loads, with anticipated precision of plus or minus twenty (20) pounds.

PROPOSAL FORM 30: USE OF ONBOARD SCALES
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This Proposal Form 30 will become Attachment DD to the final Agreement.

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ATTACHMENT EE
List of City Facilities – City of Lake Forest

Attachment EE-1 Page 1 of 1

Lake Forest City Facili0es - Current Services:

Name Street# Street Suffix City
# of
bins
Size
of
Bins Bin Type
Pick-
ups per
Week

CITY OF LAKE

FOREST - SPL EVNT

SPECIAL
EVENTS
ACCT

LAKE
FOREST 1
40 yard Recycling On-call

CITY OF LAKE

FOREST - SPL EVNT

SPECIAL
EVENTS
ACCT

LAKE
FOREST 1
40 yard Recycling On-call

CITY OF LAKE
FOREST 28000 RANCHO PKWY
LAKE
FOREST 4
3-
yard Trash Bin 3

CITY OF LAKE
FOREST 28000 RANCHO PKWY
LAKE
FOREST 2
3-
yard
Recycling
Bin 2

CITY OF LAKE
FOREST CIVIC CTR 100
CIVIC

CENTER DR
LAKE
FOREST 3
35-
gal
Food
Scrap
Cart
1 CITY OF LAKE
FOREST CIVIC CTR 100
CIVIC

CENTER DR
LAKE
FOREST 2
3-
yard Trash Bin 3

CITY OF LAKE
FOREST CIVIC CTR 100
CIVIC

CENTER DR
LAKE
FOREST 1
3-
yard Trash Bin 2

CITY OF LAKE
FOREST CIVIC CTR 100
CIVIC

CENTER DR
LAKE
FOREST 3
3-
yard RM 1

Item: 13
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ATTACHMENT FF
City of Lake Forest Bus Shelter and Bench Locations

Attachment FF Page 1 of 4

City of Lake Forest Bus Shelter and Bench Locations

Count ID# Location
Bench
1 LFBN001 EB ROCKFIELD FS LAKE FOREST
2 LFBN003 EB MUIRLANDS FS LAKE FOREST
3 LFBN005 EB MUIRLANDS FS ENTRADOS
4 LFBN007 NB LAKE FOREST FS OVERLAKE
5 LFBN010 WB MUIRLANDS FS ENTRADOS
6 LFBN012 WB JERONIMO FS RIDGE ROUTE DR
7 LFBN014 WB JERONIMO FS PARKWOOD
8 LFBN015 NB RIDGE ROUTE FS TOLEDO
9 LFBN017 NB RIDGE ROUTE NS SERRANO
10 LFBN018 SB RIDGE ROUTE FS SERRANO
11 LFBN021 EB TRABUCO FS LAKE FOREST
12 LFBN022 NB LAKE FOREST FS BUFFWOOD
13 LFBN023 EB TRABUCO NS RIDGE ROUTE
14 LFBN024 NB LAKE FOREST FS NEWVALE
15 LFBN025 WB TRABUCO FS RED RIVER
16 LFBN028 NB LAKE FOREST FS VINTAGE WOODS
17 LFBN030 NB LAKE FOREST FS REGENCY
18 LFBN033 WB BAKE PARKWAY WO LAKE FOREST
19 LFBN034 WB BAKE PRKWY FS RUE DEFORTUNA
20 LFBN038 NB BAKEPKWY FS RUE DEFORTUNA
21 LFBN040 SB LAKE FOREST FS BAKEPKWY
22 LFBN045 SB LAKE FOERST OPP REGENCY
23 LFBN047 SB LAKE FOREST FS VINTAGE WOODS
24 LFBN049 SB LAKE FOREST FS STERLING
25 LFBN050 SB LAKE FOREST FS CANADA
26 LFBN051 WB TRABUCO FS PEACHWOOD
27 LFBN053 WB TRABUCO NS PASEO SOMBRA
28 LFBN054 EB TRABUCO OPP PEACHWOOD
29 LFBN056 SB LAKE FOREST OPP BUFFWOOD
30 LFBN058 SB LAKE FOREST FS TOLEDO
31 LFBN061 SB LAKE FOREST NS OVERLAKE
32 LFBN062 NB LOS ALISOS FS FORDVIEW
33 LFBN065 EB MUIRLANDS FS EL TORO 1 of 2
34 LFBN065 EB MUIRLANDS FS EL TORO 2 of 2
Item: 13
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Attachment FF Page 2 of 4

Count ID# Location
35 LFBN066 WB MUIRLANDS FS ALISOS
36 LFBN071 EB JERONIMO FS CHERRY
37 LFBN073 WB JERONIMO FS CHERRY
38 LFBN080 NB EL TORO NS SERRANO
39 LFBN081 NB EL TORO NS SANTA MARGARITA
40 LFBN083 NB EL TORO NS ALISO PARK
41 LFBN085 NB EL TORO FS RAINTREE
42 LFBN087 WB MUIRLANDS FS EL TORO
43 LFBN090 SB EL TORO FS MUIRLANDS
44 LFBN091 NB EL TORO FS CORNELIUS
45 LFBN092 NB EL TORO RD FS MUIRLANDS
46 LFBN093 WB MUIRLANDS FS TULIP ST
47 LFBN096 EB ROCKFIELD VNS 23781 EL TORO BLVD
48 LFBN097 SB LOS ALISOS BL FS MUIRLANDS BL
49 NVTR004 23730 EL TORO
50 NVTR005 23718 EL TORO
51 NVTR008 23632 EL TORO
52 NVTR009 23621 EL TORO
53 NVTR010 23515 EL TORO
54 NVTR011 23572 EL TORO
Shelter
1 LFBS002 EB MUIRLANDS FS RIDGE ROUTE DR
2 LFBS008 EB JERONIMO FS LAKE FOREST DR
3 LFBS009 NB LAKE FOREST FS MUIRLANDS
4 LFBS013 WB MUIRLANDS FS RIDGE ROUTE DR
5 LFBS016 NB LAKE FOREST FS JERONIMO
6 LFBS019 NB LAKE FOREST FS TOLEDO
7 LFBS020 NB LAKE FOREST NS SERRANO
8 LFBS026 NB LAKE FOREST FS TRABUCO
9 LFBS027 NB LAKE FOREST FS PITTSFORD
10 LFBS029 NB LAKE FOREST OPP DIMENSION
11 LFBS031 NB LAKE FOREST FS VISTA TERRACE
12 LFBS032 NB LAKE FOREST OPP BURBANK
13 LFBS035 NB MARKET PLACE FS TOWN CENTER
14 LFBS036 EB TOWN CENTER FS ALTON
15 LFBS037 EB PORTOLA FS MARKET PLACE
16 LFBS039 NB BAKE PARKWAY FS PORTOLA
17 LFBS041 SB LAKE FOREST FS BURBANK
Item: 13
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Attachment FF Page 3 of 4

Count ID# Location
18 LFBS042 SB LAKE FOREST FS PORTOLA
19 LFBS043 SB LAKE FOREST FS RANCHO
20 LFBS044 SB LAKE FOREST OPP VISTA TERRACE
21 LFBS046 SB LAKE FOREST FS DIMENSION
22 LFBS048 SB LAKE FOREST FS PITTSFORD
23 LFBS052 EB TRABUCO FS BAKE PARKWAY
24 LFBS055 SB LAKE FOREST FS TRABUCO
25 LFBS057 SB LAKE FOREST FS SERRANO
26 LFBS059 SB LAKE FOREST FS JERONIMO
27 LFBS060 WB JERONIMO FS LAKE FOREST
28 LFBS067 EB MUIRLANDS FS PARKVIEW
29 LFBS069 WB MUIRLANDS FS PARKVIEW
30 LFBS070 EB JERONIMO FS EL TORO
31 LFBS072 WB JERONIMO FS LOS ALISOS
32 LFBS074 NB EL TORO FS JERONIMO
33 LFBS075 NB EL TORO NS TOLEDO
34 LFBS076 SB EL TORO FS PORTOLA
35 LFBS077 SB EL TORO FS NORMANDALE
36 LFBS078 SB EL TORO FS SERRANO
37 LFBS079 SB EL TORO FS TRABUCO
38 LFBS082 NB EL TORO NS TRABUCO
39 LFBS084 NB EL TORO FS NORMANDALE
40 LFBS086 WB JERONIMO FS EL TORO
41 LFBS088 SB EL TORO FS JERONIMO
42 LFBS089 SB EL TORO FS NORTHCREST
43 NVTR001 23501 EL TORO
44 NVTR002 23562 EL TORO
45 NVTR003 NB EL TORO NS ROCKFIELD
46 NVTR006 23647 EL TORO
47 NVTR007 23653 EL TORO

TRASHCAN
ONLY
1 LFTR001 WB ROCKFIELD BL FS 24251 EL TORO RD
2 LFTR002 EB ROCKFIELD BEFORE ORCHARD LANE
3 LFTR003 WB TRABUCO FS MANALASTAS ON BIKE TRAIL
4 LFTR004 WB TRABUCO FS MANALASTAS ON BIKE TRAIL
5 LFTR005 NB ORANGE BEHIND 23302 EL TORO
6 LFTR006 SB ORANGE BEHIND 23302 EL TORO
Item: 13
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Attachment FF Page 4 of 4

Count ID# Location
7 LFTR007 NB ORANGE BEHIND 232 EL SEGUNDO
8 LFTR008 NB LAKE FOREST FS RANCHO
9 LFTR009 NB EL TORO @ NORTHCREST (No Bench)

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Residential Kitchen Food Scraps Container Specifications:

CR&R proposes the use of Sure-Close Food Scrap Pails for kitchen food scraps.

Specification of Container:

Volume: 1.9 gallons (7.1 liters)
Weight: 1.1 lbs. (0.5 kg)
Dimensions:

Width 11”
Height 9.5“
Depth 8.5”
Lid: Aerated
Dishwasher Safe: Yes
Label:

Yes – will include images of acceptable
and non-acceptable items, including a QR
code and weblink for educational video.

Unit Price: $5.46
Shipping Price Per Unit: Included

Odor and Pest Mitigation Features and Labeling Detail for the Proposed Containers:

Sure-Close Food Scrap Pails are made with recycled content and UV protected material with a hinged, “stay-open” ventilated lid and odor, fruit-fly and insect mitigating seals. Further, customized decals will be created, highlighting acceptable and non-acceptable items, including a QR code and weblink for educational videos. Please see the below for further details.

One handed, single motion
open and close with audible
latch feedback.

Positive stop (90 degree) lid –
durable molded stop points
allow lid to stay open and open
flush to the rear.

Rim and lid easy to clean –
smooth top edge and
removable lid allows easy
cleaning in dishwasher or
sink.

PROPOSAL FORM 23: KITCHEN FOOD SCRAPS CONTAINER
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Letterbox style opening -
wide top opening facilitates
easy scraping of food
scraps into the container.

Multiple means to carry - can
be transported using the
folding handle, under the lip
grip or back grip.

Shape / Smaller footprint -
well suited for corner
placement and lid can be
opened under most upper
cabinets.

Multiple means to grip when
emptying - smooth top edge
and removable lid allows
easy cleaning in dishwasher
or sink.

Quick release lid - interlocking
seal and superior lid clasp
ensure positive lid closure.

Feet - four feet lift the
container off the counter
surface for increased
hygiene.

Kitchen Food Scraps Container Public Education and Distribution CR&R’s dedicated Sustainability Specialist will distribute kitchen pails door to door with customized public education and outreach that highlights best practices for in-home use. Additionally, a customized video will be created that is accessible via QR code or weblink that will demonstrate how to use and answer frequently asked questions. Examples of the flyers are found on the next page for reference.

Customers may request replacements to be delivered to their home via emailing the dedicated Sustainability Specialist email address for Lake Forest or Laguna Hills or by placing a request for a replacement via our Customer Service Department.
practices for
ed that is
o use and
e found on
home
ress for
acement
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Examples of CR&R’s Kitchen Food Scrap Pail educational materials are shown below.

This Proposal Form 23 will become Attachment GG to the final Agreement.

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TOTER 13 GALLON COMMERCIAL FOOD SCRAPS CONTAINER

Specification of Container
Width: 12 Inches
Depth: 14 Inches
Height: 30 Inches
Capacity: 13 Gallon
Color: Green
Lid Type: Hinged
Material: High Density Polyethylene (HDPE)
Shape: Rectangle
Unit Price: $28.80
Ship Price: $30.80 ($28.80 + $2.00)
CR&R proposes the use of Toter's Organics Bins to make it easy to collect and transport organics materials within commercial facilities. Made with durable high-density polyethylene (HDPE), they are built to last. The 13-Gallon Organics Bin is designed for collection with large handles at a comfortable height and heavy-duty wheels for easy transport to the curb. Featuring a latch and animal lock, it keeps away annoying predators.

PROPOSAL FORM 24: COMMERCIAL INTERNAL FOOD

SCRAPS CONTAINER
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TOTER 32 GALLON COMMERCIAL FOOD SCRAPS CONTAINER
Specification of Container
Width: 19 Inches
Depth: 24 Inches
Height: 40 Inches
Capacity: 32 Gallon
Color: Green
Lid Type: Hinged
Material: Recycled Plastic with Antibacterial Lining
Shape: Rectangle
Unit Price: $48.33
Ship Price: $50.33 ($48.33 + $2.00)
CR&R proposes the use of Toter’s custom 32-gallon cart to consolidate and transport organic waste which comes with a lid and 4-wheels; two casters and two heavy-duty rear wheels on a molded-in axel to facilitate maneuvering over most surfaces. The wheels are made with a quiet cap design to reduce noise during transport. The lid is designed to stay in place for safe, secure transport, and it opens fully when desired for complete access to the container when adding or removing.

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The cart is constructed to securely contain wet, heavy organic waste and is made with Toter's Advanced Rotational Molding™ technology. Designed for curbside collection, this organic waste container can easily be rolled to the curb on collection day.

Features:
x Toter Organics trash can come with a molded, sealed stop-bar that prevents leakage. x C o n s t r u c t e d u s i n g T o t e r ' s A d v a n c e d R o t a t i o n a l M o l d i n g , t h e c o n t a i n e r s a r e b u i l t f o r toughness and maximum impact resistance.
x Gasketed lid and thumb turn latch help contain odors and waste within the cart. x T o t e r d u r a b l e o r g a n i c s c a r t s a r e e q u i p p e d w i t h t w o s m o o t h r u b b e r w h e e l s o n a m o l d e d - i n axle and two casters that make transporting waste easy. x Rugged Rim technology and reinforced material in critical wear areas adds rigidity and extends the service life of our 2-wheel carts.

Commercial Internal Food Scrap Container Public Education and Distribution CR&R’s dedicated Sustainability Specialists alongside our Operational staff will distribute the containers with customized public education and outreach that highlights best practices for use.

Additionally, a customized video will be created that is accessible via QR code or weblink that will demonstrate use and answer frequently asked questions.

Customers may request replacements to be delivered via emailing the dedicated Sustainability Specialist email address for Lake Forest or Laguna Hills or can place a request for a replacement via our Customer Service Department.

This Proposal Form 24 will become Attachment HH to the final Agreement.

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ATTACHMENT JJ
Self-Certification Form for Yard Trimmings Recycling

Attachment JJ Page 1 of 1

Property Name:

Business Address:

Management Address:

Contact/Title:

Contact Phone: E-mail:

Instructions: Please confirm that the information provided in previous years is still correct. Please use the subsequent fields to explain any changes. This will be used to report your property’s compliance status to the State and thus all information must be accurate and reflective of the activities happening on-site. Please complete and return this form by December 31, 2025. All fields below are required to complete.

It was previously reported by the hauler that your property’s landscapers take Yard Trimmings. Please answer the following questions to help the City understand how your property disposes of Yard Trimmings.

Yard Trimmings materials being recycled include (check all that apply):
____ Wood waste
____ Grass clippings/leaves/weeds
____ None/Other - please explain: ___________________________________________________ ___________________________________________________________________________

Our property currently recycles and/or disposes of Yard Trimmings as described:
____ On-site processing through chipping or composting, and re-use on site ____ Self-haul; we deliver Yard Trimmings to a compost, recycling or agricultural facility directly ____ Our landscape maintenance contractor delivers Yard Trimmings to a compost or recycling facility ____ Our Yard Trimmings is collected by the hauler.
____ None/Other - please describe: ___________________________________________________ ___________________________________________________________________________ Green/wood waste is collected by the following haulers/landscapers:

1. _____________________________________________________________________________ Business Name City Phone #

2. _____________________________________________________________________________ Business Name City Phone #

Yard Trimmings is taken to the following locations for recycling or disposal (Must include):

3. ____________________________________________________________________________ Business Name City Phone #

4. ____________________________________________________________________________ Business Name City Phone #

Signature of person filling out this form Date

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217

1. Does the Proposer’s fleet meet or exceed the 50 collection vehicle threshold to require a 100% ZEV fleet by 2042?
Yes.

2. If the Proposer operates a fleet of 50+ vehicles, what is the Proposer’s plan to meet the 10% ZEV requirement by 2030? How many vehicles and fueling or charging stations would be needed to achieve this initial 10% ZEV milestone? CR&R has developed timelines for compliance with California’s Advance Clean Fleets Program (ACF) based on the legislative requirements as written today. CR&R has agreed to the “milestones” compliance pathway with ACF which will require the procurement of over 100 zero- emissions vehicles by 2030, across Groups 1 th rough 3 as established by CR&R’s total current vehicle count in operations. This plan is dependent on commercial availability, actual successful in-field vehicle operations (compared to manufac turer model specifications) and any legislative amendments enacted by California.

3. If the Proposer operates a fleet of 50+ vehicles, what is the Proposer’s plan to meet the 25% ZEV requirement by 2033? How many vehicles and fueling or charging stations would be needed to achieve this 25% electrification milestone? CR&R has developed timelines for compliance with California’s Advance Clean Fleets Program (ACF) based on the legislative requirements as written today. CR&R has agreed to the “milestones” compliance pathway with ACF which will require the procurement of over 100 additional zero-emissions vehicles by 2033, across Groups 1 through 3 as established by CR&R’s total current vehicle count in operations. This plan is dependent on commercial availability, actual successful in-field vehicle operations (compared to manufacturer model specifications) and any legislative amendments enacted by California.

This Proposal Form 32 will become Attachment KK to the final Agreement.

PROPOSAL FORM 32: PROPOSER’S PLAN TO COMPLY WITH

CALIFORNIA AIR RESOURCES BOARD ADVANCED CLEAN

FLEETS PROGRAM DURING TERM OF THE AGREEMENT
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ATTACHMENT LL

Attachment LL Page 1 of 1

NOT USED
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ATTACHMENT MM - Map of Lake Forest Saguaro Ave and Alley Sweeps Saguaro
Alley
Dumpster
Locations
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ATTACHMENT NN
Projected New Developments

Attachment NN Page 1 of 1

The following development projects are anticipated to occur in the City of Lake Forest:

Projects with approved entitlements as of 10/1/23:

• The Meadows Residential Community – total of 541 single-family residences and 65 unit senior housing apartment project. Currently under construction. Estimated completion:
2024
• The Oaks Residential Community (Northeast) – Total of 223 single -family residences.

Currently under construction. Estimated completion: 2024. • Ascension Cemetery (24754 Trabuco Road). Expansion of Ascension Cemetery to include new burial areas and new 5,428 sf maintenance building. Estimated completion: 2024 • New Industrial building (25121 Arctic Ocean) - New 12,500 sg industrial building.

Estimated completion unknown. Project paused.
• Kingdom Hall Expansion (23016 and 23071 El Toro Road) Construction of two new religious facility buildings for a total of 6,624 sf. Estimated completion: 2024.

Projects under entitlement (not approved and no estimated date for completion) as of 10/1/23:

• 26200 Enterprise Way. Proposal for demolition of existing 144,906 s building and construction of new 165,803 sf industrial building
• 26220-26160 Enterprise Way. Proposal for demolition of 3 existing office buildings and reconstruction of a new 164,300 sg industrial building to accommodate multiple tenants. • 26250 Enterprise Way. Proposal for demolition of a 76,978 sf two-story office building and construction of a 77,000 sf industrial building.
• 25650 Baffin Bay Drive. Proposal for expansion of an existing Extra Space Storage self storage facility. Includes construction of a new 90,621 sf thee story self storage building. • 29865 Canada Road. Proposal to rehabilitate one existing single- family residence to be used for a tree service’s administrative functions and remove a second residence and structures related to animal keeping; create parking areas for tree service vehicles and equipment and create concrete drying pad for wood chips. Add new 2,475 sf shade structure.

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129
Number of Call Centers Operated by
Proposer One (1)
Location(s) of Call Center(s) that Will be
Used to Field Customer Calls in Lake
Forest and Laguna Hills
Our CR&R Customer Service Call Center is
centrally located at the corporate headquarters
in Stanton and will be used to field customer
calls in Lake Forest and Laguna Hills.

Number of Cities the Proposed Call Center
Currently Services
56 municipal contracts, including Cities,
County Areas, and Service Districts
Aggregate Residential Population of All of
the Cities Serviced by the Proposed Call
Center
Approximately 3,100,000

FTE
Lake Forest
FTE
Laguna Hills
Total
FTE
Total Number of Customer Service
Representatives at each Call Center and
Number of Customer Service
Representatives Allocated to the Cities (in
FTE)

1.083 0.456 1.539
Total Number of Customer Service
Managers at each Call Center and Number
of Managers Allocated to the Cities (in FTE)

0.017 0.017 0.033
Total Number of Customer Service
Supervisors at each Call Center and
Number of Supervisors Allocated to the
Cities (in FTE)
.069 .069 .138

Proposed Telephone System
Our CR&R Customer Service Call Center will continue to service the Cities of Lake Forest and Laguna Hills out of our Orange County Call Center. CR&R is able to meet all of the requirements of the Franchise Agreement. CR&R uses the NICE CXone Expert system, a cloud native system that optimizes City-specific information to improve the customer experience for each City we serve. This customization enhances the customer’s ability to conduct effortless self-service, if preferred, for most callers.

PROPOSAL FORM 28: PROPOSED CUSTOMER SERVICE
SYSTEM
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Customers with complex needs, or who prefer to
speak directly with a customer service
representative (CSR) are able to access
representatives more quickly. As a result, all
customers have a much faster, easier and more
successful customer service experience. Additional
information regarding the NICE CXone Expert
system is attached at the end of this Form 28.

CR&R Customer Service Team
Our Customer Service Staff are critical members of
our service team, and their importance to the
company is demonstrated by the location of the
Customer Service Department, which is situated
within the CR&R Corporate Office in Stanton,
directly across from the Executive Team. Our
Customer Service Team is available on regular
collection days (Monday through Friday) from 8:00 a.m. until 5:00 p.m. and on Saturdays from 8:00 a.m. until 12:00 p.m. CR&R will have a local number available for Cities of Lake Forest and Laguna Hills as well as a toll-free number for customer service.

The CR&R Customer Service team is
overseen and led by Elisa Bené, our
Customer Service Manager. As Manager,
Ms. Bené is responsible for policy
development and deployment, employee
training and development, and customer
relations, ensuring effective and long-
term problem resolution. Additionally, Ms.

Bené is responsible for overseeing the
customer service department and trains,
mentors, and coaches our employees, ensuring the company delivers the highest level of customer service possible.

CR&R’S COMMITMENT TO

OUR CUSTOMERS
99 Orange County-based call center.
9 Multi-language customer service
representatives.
9 Ability to monitor all required
metrics.
9 Ability to monitor response time to
complete a work order from time
of request.
9 Proven ability to provide accurate,
City-specific information.
9 Commitment to satisfy the
customer at any cost.

CR&R CSR’s celebrate Customer Service Week.

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An attitude of respect and concern for our cu stomer is the benchmark used to develop our customer service protocols. It is our shared c o m m i t m e n t a t C R & R a n d r e s u l t s i n e x c e l l e n t customer feedback achieved in customer service satisfaction surveys. This passion for “Excellence in Customer Service” is a core value. Our Customer Service Department is managed with a pledge to “Satisfy the Customer at any Cost.” CR&R understands that customer service is of utmost importance to the Cities. When residents and businesses have a request regarding solid waste and recycling services, the CR&R Call Center serves as their first point of contact. Our team is committed to continue providing a timely response, accurate information, and reliable service to our City of Lake Forest and City of Laguna Hills customers.

Each component of our customer service system and approach is designed to achieve these key objectives. Combined, this timely, accurate and reliable service facilitates our performance and enhances customer satisfaction. Additionally, effective customer service systems will result in decreased use of City staff time and resources. Customers can easily communicate with CR&R, and our system ensures accurate and reliable follow through by our Customer Service and Operations team, while minimizing the amount of time staff would need to follow up on hauler service issues.

Timely Response: A prompt
answer, with minimal hold times
Accurate Information: Correct
answers, provided on the first call
Reliable Service:Dependable
completion of work order
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JURISDICTION CLOUD-BASED LIBRARIES
Our Call Center uses Microsoft SharePoint as our electronic knowledge center to house information such as policies, rates, and procedure documentation which provides quick, easy, and controlled access for our CSR’s. This same tool is used to store customer communications such as new customer brochures, billing inserts, flyers, marketing letters, and special events.

Each CSR has dual monitors so that our CRM software and SharePoint library with the City- specific folder can be displayed simultaneously.

CR&R also can create detailed reports using the information stored in CR&R’s Customer Relationship Management and Routing System. This information includes data such as route, container size, violations, type of service, street names, driver’s name, etc. This data is readily accessible through electronic format and can be made available upon request by CR&R’s contracted cities. Proper steps are taken to ensure the integrity of the Company’s data systems.

To protect this information from loss or corruption, all system data is updated at the end of each day onto a back-up system and stored in an off-site fireproof electronic safe and in the cloud.

Any information from our billing management or telephone system may be downloaded into Excel or Word documents for review by each City. All information tracking requests for service, missed collection, complaints, and billing inquiries are stored in real-time. Standard reports include a customer service list of accounts with service and billing information, complaint log, missed collection log, requests for additional service, and other valuable tracking information. Customized reports may be produced upon request by each City.

INFORMATION CATEGORIES
• Name, account number, service address, and billing location of each account. • Service notes pertaining to specifics of a customer account, including the time and date of phone calls, items discussed during the phone conversations, and the CSR’s who responded to the calls.
• Dates of bulky item pickups, missed pickups , and types of driver or CSR notifications. • Container identification numbers linked to the service address where container was assigned.
• Customer billing history, type of service, and scheduled collection days.

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CUSTOMER SERVICE SOFTWARE
CR&R is equipped with Soft-Pak, a premier, industry
specific CRM software program which allows ease of
operation by CSR’s, operations, and management
personnel. This real-time Windows-based system is used
company-wide and provides current information allowing
CSR’s and operations personnel to respond quickly to
requests for service. It also allows for the prompt
resolution of customer concerns in a timely manner.

These programs are fully integrated throughout the CR&R organization at all operating sites. In addition, we have custom software that applies City-specific business rules to changes and orders being entered to ensure accuracy
.

PROCEDURES
Communication and the use of technology are vital to resolving customer inquiries, requests, and complaints that may arise. As such our systems allow for communication between departments accurately and in real-time. Operations personnel, CSR’s and Management may access account information with the most up to date service and note information. This system provides access to a multitude of information as it relates to CR&R's service and our customers.

For example, notes are added into the CRM system
which automatically generates emails to the Operations
team for research and to Customer Service with the
answers. This process enables us to document each
customer account with any issues and the resolutions
while eliminating the need to also send manual emails
to communicate those issues. Once the responses are
received by Customer Service, the customer is
contacted and provided with the update.

Real-time data is also provided through our On Board Computers (OBC) for our commercial and temporary services routes, with drivers using tablets to provide service updates which are Reliable
Service
The Soft-Pak program
allows Customer Service
Representatives and
Operations personnel to
respond quickly to
requests for service,
promptly resolve
complaints, and address
the concerns in a timely
manner.

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available in our CRM system as another tool for CSR’s to reference. This data provides date and time the location of service by route and indicates if there was any reason service was not provided, such as a blocked bin.

Our goal is to address inquiries at the initial point of contact while the customer is on the phone.

If research is needed, the CSR turns the issue over to a lead representative for resolution. When customers contact us with a request, the CSR’s enter a work order into our CRM system to initiate the action that needs to be taken. This work order is used by Operations to perform the requested action and then routed to Data Entry to update the account with the service that has been requested and to close out the Work Order

WORK ORDER SYSTEM
The Work Order system is essential to daily operations at CR&R. All jobs performed by Operations are dispatched, tracked, and billed by Work Orders except for scheduled services. The following sections cover a brief and condensed outline of our Work Order System.

Work Order Flow

1. Service requested by customer.

2. Work Order created by CSR.

3. Dispatch prints/downloads Work Order.

4. Dispatch routes Work Order to driver.

5. Driver performs job and updates/returns Work Order to Dispatch.

6. Dispatch reviews and forwards the work orders to Data Entry.

7. Data Entry updates and posts all completed Work Orders.

8. If Driver does NOT complete the job, driver either.
a. Returns Work Order to Dispatch for Rerouting.
b. Returns Work Order to Dispatch with explanation of why job could not be completed.
c. In each of these scenarios, the work order is noted, and customer service is notified to contact customer of change in service date.

9. Data Entry closes the Work Order.

10. Completed Work Order is filed by Data Entry.

11. Operations forwards incomplete Work Orders to Customer Service.

12. Customer Service contacts customer to reschedule job with new Work Order if needed.

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The work order process is used for a variety of action related items such as requests for cart exchanges, bulky item collection, e-waste collection, report of missed collection, courtesy pickups, bin exchanges and other items requiring an operation action.

COMPLAINT RESOLUTION - SATISFY THE CUSTOMER AT ANY COST At CR&R customer complaints receive the highest level of attention from customer service, operations, and management staff. Complaints are noted on the customer’s account and sent to the responsible department by email. The department that receives the email also notes the customer’s account with the action taken to resolve the complaint. Customers with unusual circumstances are always managed with consideration to meet their individual needs. Complaints and missed collections are reported weekly to management so that any unusual problems or trends can be identified, reviewed, and addressed. The Customer Service Manager and Director review and sign off the reports prior to sending it to senior management each week.

Quality Assurance Process
CR&R understands that the quality of our customer service program not only impacts residents and businesses, but also City staff. When we provide professional, courteous service that is accurate and dependable, customers do not feel the need to contact staff or officials with questions or concerns.

To ensure that our team of CSR’s is providing the highest level of service, the Customer Service Manager and Leads conduct monitoring, which includes the following:
x Three monitoring/coaching sessions per month per agent. x CSR’s are expected to achieve a monthly score of 91% and above. x C u s t o m e r S e r v i c e L e a d s r o t a t e t h e i r m o n i t o r i n g t e a m m o n t h l y . x Customer Service Manager conduct the quarterly sessions. x CSR’s and Leads receive Quality Assurance Monitoring for on-going training process. x A n y C S R w i t h a m o n t h l y s c o r e b e l o w 8 5 % i s p l a c e d o n a P e r f o r m a n c e I m p r o v e m e n t Action Plan.

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CR&R WEBSITE
CR&R’s website serves as an educational portal for all communities we service. The website, www.crrinc.com, is designed to offer a range of educational information for our customers including instructions on proper usage of containers and holiday schedules as well as the ability to contact customer service through emails. Emails received are routed and managed through the same Cisco CJP system. The website also provides the ability for customers to make a payment or set up recurring payment options and chat online to live customer service agents. In addition, CR&R has created on-line videos to inform customers about recycling and showcase the process needed to conserve resources. These videos are also accessible by QR codes and printed on our materials distributed for ease of access.

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For each community we serve, CR&R provides a dedicated page providing information about services, cart reminders, what is acceptable in the carts, links to residential and commercial program guides for downloading as well as information about any unique jurisdictional programs such as hazardous waste events or sharps services. The community page also provides a link to the designated City page about environmental programs. CR&R’s skilled informational technical staff ensures the site is continually updated and maintains its ease of use.

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MONTHLY REPORTS
CR&R is able to fully comply with all reporti ng required in the Franchise Agreement, including average hold time for the month, number of abandoned calls, and other metrics. An example of our current monthly report template is shown below.

Data is available in real-time and allows for im mediate adjustments to ensure customer service requirements are met. Daily, weekly and monthly reports can be generated to monitor and track key metrics. An example of the dashboard provided through CR&R’s NICE CXone Expert system is shown in the graphic below.

This Proposal Form 28 will become Attachment OO to the final Agreement.

Start Time Total Number
of Calls
Total Number of
Calls Answered
Longest Wait
Time
(seconds)
Average Wait
Time
(seconds)
- - - - -
Total Number
of Calls
Abandoned
% of Calls
Abandoned
Average
Abandon Time
(s)
Abandoned
Call <=5 secs
% Adjusted
Abandoned Calls
- - - - -
Average Talk
Time (s)
% Service
Level Working Days Average
Calls/ Day FTE
Avg.

Calls/
FTE
- - - - - -
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140

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141

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142
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/4/2024
DEPARTMENT: Finance
SUBJECT:

FISCAL YEAR 2024-25 BUDGET APPROPRIATION
RECOMMENDED ACTION(S):

1. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2023-2025 OPERATING BUDGET; AMENDING APPROPRIATIONS FOR FISCAL
YEAR 2023-24

2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LAKE FOREST, CALIFORNIA, APPROPRIATING FUNDS FOR FISCAL YEAR 2024-25 ONLY AND AUTHORIZING CERTAIN

ACTIONS WITH APPROPRIATIONS
EXECUTIVE SUMMARY:

The 2023-2025 Operating Budget only established the appropriations for Fiscal Year 2023-24. To establish appropriations for Fiscal Year 2024-25, the City Council must authorize funding through a resolution. Staff presented proposed changes to the Fiscal Year 2024-25 of the 2023-2025 Operating Budget and the 2023-2030 Capital Improvement Plan to the Council on May 7, 2024.

The proposed Fiscal Year 2024-25 Operating Budget maintains municipal services at current levels and continues providing services that address the priorities of the community. Total revenues are projected to be $80.2 million.

Total cost estimates are $76.8 million. General Fund Revenues are projected to be $65.5 million. General Fund cost estimates are projected to be $60.8 million.

The 2023-2030 Capital Improvement Plan includes 11 new projects in Fiscal Year 2024-25 totaling $8,950,000 and additional funding for nine ongoing projects totaling $1,395,000, resulting in a total infrastructure investment of $10,345,000. These projects include 12 park improvement projects, four street improvement projects, two traffic improvement projects, one facility improvement project, and one environmental project.

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4 1
Staff recommends the City Council adopt the attached resolution appropriating $4,400,589 to meet the targeted funding status in the City‘s pension plan in Fiscal Year 2023-24 (Attachment 1). The target 95% funding status for the pension plan is identified in the City’s Financial Management and Budgetary Policy. This strategic allocation would result in interest savings totaling $4,056,537, positively impacting the Fiscal Year 2024-25 financial outlook, aligning with the proposed budget for the upcoming fiscal year.

Adopting the attached resolution for Fiscal Year 2024-25 (Attachment 2) would approve the funding for Fiscal Year 2024-25 of the 2023-2025 Operating Budget and Fiscal Year 2024-25 of the 2023-2030 Capital Improvement Plan (“CIP”).

BACKGROUND:

In accordance with the Financial Management and Budgetary Policy (“Policy”), the City Manager presented the City’s 2023-2025 Operating Budget to the City Council on June 20, 2023. At the meeting, Council adopted a Budget Resolution approving the 2023-2025 Operating Budget, appropriating funds for Fiscal Year 2023-24 only, and adopting the following:
•Update to the 2021-2028 Strategic Business Plan (” Strategic Plan”), •The 2023-2030 Capital Improvement Plan,
•The 2023 General Fund Reserve Risk Analysis, and
•The 2023-2030 Master Financial Plan and Financial Forecast.

DISCUSSION:

The 2023-2025 Operating Budget included appropriations for Fiscal Year 2023-

24. As a result, the City Council must approve the appropriation of funds for Fiscal Year 2024-25 through a City Council resolution. Staff presented proposed changes for Fiscal Year 2024-25 of the 2023-2025 Operating Budget to the City Council on May 7, 2024.

Based on input and direction provided by the City Council, the final-proposed Mid-Cycle adjustments have been included in the Resolution for Fiscal Year 2024-25 for City Council consideration (Attachment 2).

The proposed Fiscal Year 2023-2025 Operating Budget maintains municipal services at current levels and continues providing services that address the priorities of the community. General Fund Revenues are projected to be $65.5 Item: 14
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3 1
4 1
million for Fiscal Year 2024-25. General Fund cost estimates are projected to be $60.8 million for the Fiscal Year 2024-25.

Since the proposed Fiscal Year 2024-25 Budget was presented at the May 7, 2024, City Council meeting, staff continued to review and analyze revenue and expenditure estimates based on additional information and have made a minor adjustment based on updated or improved projections. Table 1 shows the adjustments made to the Fiscal Year 2024-25 budget. All changes have been incorporated in Tables 2-5 below.

Table 1: Budget Adjustments since May 7, 2024
Item Description Fund Revenue
Adjustment
Appropriation
Adjustment
CDBG Funding CDBG $13,153 $13,153
Actuarial Pension
Contribution General Fund - ($155,000)
As referenced in Table 1 above, the Community Development Block Grant (“CDBG “) revenue and estimated cost has been increased by $13,153 due to increased grant funding from the US Department of Housing and Urban Development.

The Actuarial Pension Contribution adjustment involves a decrease in the estimated cost for the actuarial pension contribution in Fiscal Year 2024-25. It is important to note that this reduction reflects the anticipated impact if the City Council adopts staff's recommended action for addressing the unfunded actuarial liability payment in Fiscal Year 2023-24.

The following tables illustrate the City’s revenues and expenditures for Fiscal Year 2024-25 and reflect the aforementioned information.

Table 2: Revenues by Fund
Fund Name FY 2024-25
General Fund $65,541,150
Low- and Moderate-Income Housing Asset $81,800
State Gas Tax (HUTA) $2,437,354
Road Maintenance Rehab Account (RMRA) $2,269,785
SCAQMD AB2766 Subvention $112,700
Measure M2 Local Fair Share $2,107,419
Measure M2 Senior Mobility $125,495
Supplemental Law Enforcement Services $230,000
Franchise Agreement Recycling $67,000
Beverage Recycling $21,000
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Fund Name FY 2024-25
Certified Access Specialist CASP $5,000
Permanent Local Housing Allocation Program $189,521
CDBG $608,753
City Facilities Improvement $3,900,000
City Facilities Capital Improvement $1,200,000
Lake Forest Traffic Mitigation $478,200
Foothill Circulation Phasing Plan $800,000
Park Development $23,100
Total $80,198,277
Table 3: Expenditures by Fund
Fund Name FY 2024-25
General Fund $60,771,894
General Fund (Capital) $2,505,000
Neighborhood Park Reserve $950,000
Low- and Moderate-Income Housing Asset $108,300
Gas Tax (HUTA) $2,883,199
Road Maintenance Rehab Account (RMRA) $4,173,730
SCAQMD AB2766 Subvention $45,000
Measure M2 Local Fair Share $2,186,270
Measure M2 Senior Mobility $125,495
Supplemental Law Enforcement Services $700,000
Franchise Agreement Recycling $67,000
SB1383 Organics Waste Recycling $233,869
Beverage Recycling $34,000
Certified Access Specialist CASP $5,000
Permanent Local Housing Allocation Program $911,365
CDBG $608,753
City Facilities Improvement $310,000
Lake Forest Traffic Mitigation $130,000
Total $76,748,875
Table 4: General Fund Revenues
Revenue Type FY 2024-25
Taxes
Property Taxes $26,440,100
Sales and Use Taxes $18,800,000
Franchise Fees $2,756,250
Transient Occupancy Taxes $5,610,000
Real Property Tax $675,000
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Revenue Type FY 2024-25
Licenses and Permits $2,234,500
Charges for Services $3,185,300
Intergovernmental $260,000
Use of Money and Property $5,060,000
Fines and Forfeitures $350,000
Developer Contributions $85,000
Other $85,000
Total $65,541,150
Table 5: General Fund Expenditures
General Fund/ Expenditure Program FY 2024-25
Legislative $505,282
Management and Support $9,842,211
Public Safety $23,998,633
Infrastructure Maintenance Service $12,170,997
Planning, Engineering, Building and Safety $6,260,793
Transportation $415,500
Environmental Services $1,221,980
Culture, Leisure, & Recreation $4,625,733
Community Vitality & Engagement $1,730,765
Total $60,771,894
Adopting the attached FY 2024-25 Resolution would approve the funding for Fiscal Year 2024-25 of the 2023-2025 Operating Budget.
2023-2030 Capital Improvement Plan
Although the City Council approved the 2023-2030 Capital Improvement Plan, only one year of the CIP plan is recommended for funding each year. The 2023- 2030 CIP will be routinely revised and updated to maintain an accurate and up to date plan. Staff has revisited the prioritization process to allow for further adjustments based on dynamic project needs, funding availability, and other factors. Therefore, staff is recommending the authorization of funding for the second year of the CIP plan, Fiscal Year 2024-25. Estimated funding and cost estimates have been updated based on the prioritization of projects and updated projected revenues.

The proposed Fiscal Year 2024-25 plan includes 11 new projects totaling $8,950,000 and additional funding for nine ongoing projects totaling $1,395,000, resulting in a total infrastructure investment of $10,345,000. These projects include 12 park improvement projects, four street improvement projects, two traffic improvement projects, one facility improvement project, and one Item: 14
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environmental project. These 20 projects, presented to City Council on May 7, 2024, include two new supplemental projects to the plan: Civic Center Meeting Room Improvements (Attachment 4), and the Normandale Open Space Renovations (Attachment 5)
Table 6 below includes the project summary.

Table 6: Summary of 2024-25 CIP Projects
Project
Fiscal Year 2024-25 BudgetAliso Creek Drainage Repairs 30,000Civic Center Meeting Room Improvements* 310,000Lake Forest Sports Park Renovations 280,000Foothill Ranch Box Lacrosse Installation Project 175,000Pickleball Analysis and Court Installation Project 135,000Neighborhood Park Renovations - Vintage Park 170,000Neighborhood Park Renovations - Peachwood Park 180,000Heroes Park Sports Field Renovations 110,000Normandale Open Space Renovations* 375,000LFSP Existing Synthetic Field Replacement 1,100,000Etnies Skate Park Improvements 100,000Nature Park and Lake Forest Park 60,000Cavanaugh Park 50,000Citywide Park Restroom Painting/Renovations 150,000Accessible Pedestrian Signals 175,000Non Functional Turf Removal Study and Replacement 70,000Arterial Wall Enhancements in Southwest Lake F. 100,000Road Rehab FY25 6,360,000Bake Pkwy Rockfield TSSP 370,000Irvine Trabucco TSSP 45,000TOTAL 10,345,000$ *Additional projects presented to City Council May 7, 2024 Adopting the attached resolution would approve the funding for Fiscal Year 2024- 25 of the 2023-2030 Capital Improvement Plan.

Reserve Level Analysis
In developing the 2024-25 Mid Cycle Proposed Budget, staff conducted an analysis of the City’s reserve levels. In accordance with the Policy, the City maintains several reserves, each maintained at a minimum threshold. Adequate Item: 14
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reserve levels are a necessary component of the City’s overall financial management strategy and a key factor in external agencies’ measurement of the City’s financial strength.

Staff has verified that the City’s proposed Fiscal Year 2024-25 budget meets the minimum reserve level for each of the following categories:
•General Fund Risk Reserve – meets the target reserve set at $56.6 million with a minimum reserve level set at $53.77 million (5% below the Target Reserve amount)
•Gas Tax HUTA Fund – meets the minimum reserve level of $400,000 which is set aside as a reserve for street repair emergencies and other unanticipated traffic safety projects.
•Measure M Local Fair Share Fund – exceeds the minimum reserve level of $250,000 to be used as a reserve for street repair emergencies and other unanticipated traffic safety projects.
•The Other Post-Employment Benefits Trust (“OPEB”) Fund – exceeds the City’s target level of 100% funding status which is set aside to fund the required health care costs of retirees.

In this analysis staff noted the following minimum reserve would not be met in the Fiscal Year 2024-25:
•The Pension Employer Contribution Stabilization Trust Fund requires the City’s target of 95% funding status for the pension plan.

Staff proceeded to evaluate the implications of the unfunded actuarial liability (“UAL”) on the City’s financial outlook. The City's Policy includes specific triggers that would impact the payment of the UAL. The Policy targets maintaining the funding status at 95% and ensuring that the required pension liability payment remains below 10% of the normal cost. The most recent CalPERS actuarial evaluation prompted these thresholds and required staff to evaluate available options. Specifically, the Policy states:
k) The City shall maintain a Pension Employer Contribution Stabilization Trust Fund to reduce volatility in the employer contribution rates set by CalPERS. The City shall target a 95% funding status for the pension plan and a required pension liability payment of less than 10% of the annual pension contribution within the seven-year financial forecast. Funding status will be based on the most recent actuarial valuation of the pension plan. The operating budget presented by the City Manager will provide an update on the balance of the available resources and any recommendations for the budget period.

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Currently, the City's Classic plan maintains a funding status of 91%, while the City's PEPRA Plan stands at 89%. A funding status below 100% indicates the necessity of additional payments towards the unfunded actuarial liability, in addition to normal costs. CalPERS provides a default amortization schedule for this required payment, which dictates the employer contribution. As of June 4th, 2024, the total outstanding amount for both plans is $4,400,589. Under the default schedule, this sum is repaid with interest over a 20-year period, amounting to a total payment of $8,457,126. Alternatively, the City has the option to make a lump sum payment, resulting in interest savings totaling $4,056,537.

On April 23, 2024, the Audit Committee was presented with multiple options regarding the payment of the UAL. Following careful consideration, the Audit Committee endorsed the recommendation to appropriate funding to fully address the UAL.

Staff recommends the City Council adopt the Resolution for Fiscal Year 2023-24, appropriating $4,400,589 to meet the targeted funding status in Fiscal Year 2023-24 (Attachment 1). This strategic allocation will positively impact the Fiscal Year 2024-25 financial outlook, aligning with the proposed budget for the upcoming fiscal year.

This funding request is within the City’s resources, as there are sufficient funds available from existing balances prior to utilizing reserves. This approach preserves reserve funds for future contingencies and avoids the need to utilize funds from the pension trust, while addressing our critical financial obligations effectively. The attached fund balance statement (Attachment 3) provides an overview of the City’s financial health by detailing the amount of projected funds available at a specific point in time. The General Fund fund-balance in the attached serves as a representation of available funds after payment of the unfunded actuarial liability and serves as a foundation for building the Fiscal Year 2024-25 Operating Budget.

Conclusion
In formulating the revenue estimates and cost projections for Mid-Cycle Fiscal Year 2024-25, staff ensured a continual adherence to the Policy to preserve the City's long-term, conservative financial vision. Staff believe the revisions made since the May 7, 2024, budget presentation are consistent with direction provided by the City Council and will result in a reasonable estimate of the City’s financial position. The resolution to adopt the funding for Fiscal Year 2024-25 is attached (Attachment 2).

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FISCAL IMPACT:

The fiscal impact of the recommended actions establishes the revenue estimates and authorizes the appropriations for Fiscal Year 2024-25 and increases General Fund expenditures in Fiscal Year 2023-24 by $4,400,589 to meet the targeted funding status in the City’s pension plan.

ATTACHMENTS:

1. Resolution 2024-XX

2. Resolution 2024-XX

3. Fund Balance Projections

4. CIP Normandale Site Renovations

5. CIP Civic Center Meeting Room Upgrade
Initiated By: Amy Lewis, Assistant Director of Finance
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager
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ATTACHMENT 1
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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA, AMENDING
THE 2023-2025 OPERATING BUDGET; AMENDING
APPROPRIATIONS FOR FISCAL YEAR 2023-24
WHEREAS, the 2023-2025 Operating Budget and the appropriations for Fiscal Year 2023-24 were adopted by the City Council on June 20, 2023; and WHEREAS, modifications are now required as a result of changes during Fiscal Year 2023-24.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE

FOREST DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:

Section 1. The City Council’s adoption of this Resolution is not a project within the meaning of the California Environmental Quality Act. Specifically, the City’s adoption of the Resolution is an administrative and fiscal function of the City that does not commit the City to any specific project or course of action. (State CEQA Guidelines, sections 15378(b)(4) & (b)(5).) Thus, no environmental review of the Resolution is required. The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the adoption of this Resolution.

Section 2. The General Fund is amended to increase appropriations for Fiscal Year 2023-24 as demonstrated in Exhibit A.

Section 3. The Director of Finance is hereby authorized to move appropriations between programs within program area budgets in concurrence with Department Directors.

Section 4. The City Manager is hereby authorized to transfer appropriations from one program area to another or between funds within the Operating Budget with notification to the City Council Audit Committee.

Section 5. The City Manager is hereby authorized to transfer appropriations from a capital improvement project to another existing project within the adopted Capital Improvement Plan with notification to the City Council Audit Committee.

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Section 6. The City Clerk shall attest as to the adoption and execution of this Resolution and cause the same to be maintained in the permanent records of the City.

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

ATTEST:

MARK TETTEMER
MAYOR

LISA BERGLUND

CITY CLERK
APPROVED AS TO FORM:

MATTHEW RICHARDSON

CITY ATTORNEY
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STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No. 2024- was duly passed and adopted at a regular meeting of the Lake Forest City Council on the 4th day of June 2024, by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

LISA BERGLUND

CITY CLERK
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EXHIBIT A
AMENDMENT TO 2023-2025

OPERATING BUDGET
FISCAL YEAR 2023-24

APPROPRIATIONS
General Fund Operating Appropriations
Expenditure
Major Program
Area
Current
Budget
Increase
(Decrease) Amended
Budget
Management and
Support 10,614,340 4,400,589 $15,014,929
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9 ATTACHMENT 2
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9 RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA,

APPROPRIATING FUNDS FOR FISCAL
YEAR 2024-25 ONLY AND AUTHORIZING

CERTAIN ACTIONS WITH APPROPRIATIONS
WHEREAS, on June 20, 2023 the City Council adopted a Budget Resolution approving the 2023-2025 Operating Budget, appropriating funds for Fiscal Year 2023-2024 only; and
WHEREAS, the City Manager of the City of Lake Forest presented to the City Council on May 7, 2024, a Proposed Budget allocation for Fiscal Year 2024-25.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE

FOREST DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:

Section 1. The City Council’s adoption of this Resolution is not a project within the meaning of the California Environmental Quality Act. Specifically, the City’s adoption of the Resolution is an administrative and fiscal function of the City that does not commit the City to any specific project or course of action. (State CEQA Guidelines, sections 15378(b)(4) & (b)(5).) Thus, no environmental review of the Resolution is required. The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the adoption of this Resolution.

Section 2. The appropriations are hereby authorized, and revenue estimates confirmed for Fiscal Year 2024-25 only, in accordance with the Proposed Budget Adjustments dated May 7, 2024, as may be further modified by Council and staff on June 4, 2024, as reflected on Exhibit A to this Resolution.

Section 3. The Director of Finance is hereby authorized to move appropriations between programs within program area budgets in concurrence with Department Directors.

Section 4. The City Manager is hereby authorized to transfer appropriations from one program area to another or between funds within the Operating Budget with notification to the City Council Audit Committee.

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9 Section 5. The City Manager is hereby authorized to transfer appropriations from a capital improvement project to another existing project within the adopted Capital Improvement Plan with notification to the City Council Audit Committee.

Section 6. The City Clerk shall attest as to the adoption and execution of this Resolution and cause the same to be maintained in the permanent records of the City.

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

ATTEST:

MARK TETTEMER
MAYOR

LISA BERGLUND

CITY CLERK
APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

CITY ATTORNEY
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STATE OF CALIFORNIA

COUNTY OF ORANGE

CITY OF LAKE FOREST
)
) SS
)
I, Lisa Berglund, City Clerk of the City of Lake Forest, California, does hereby certify that the foregoing Resolution No. 2024- was duly passed and adopted at a regular meeting of the Lake Forest City Council on the 4th day of June 2024, by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

LISA BERGLUND

CITY CLERK
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EXHIBIT A
Revenue Estimates
Fund Name FY 2024-25
General Fund $65,541,150
Low- and Moderate-Income Housing Asset $81,800
State Gas Tax (HUTA) $2,437,354
Road Maintenance Rehab Account (RMRA) $2,269,785
SCAQMD AB2766 Subvention $112,700
Measure M2 Local Fair Share $2,107,419
Measure M2 Senior Mobility $125,495
Supplemental Law Enforcement Services $230,000
Franchise Agreement Recycling $67,000
Beverage Recycling $21,000
Certified Access Specialist CASP $5,000
Permanent Local Housing Allocation Program $189,521
CDBG $608,753
City Facilities Improvement $3,900,000
City Facilities Capital Improvement $1,200,000
Lake Forest Traffic Mitigation $478,200
Foothill Circulation Phasing Plan $800,000
Park Development $23,100
Total $80,198,277
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General Fund Revenue Estimates by Type
General Fund Operating Appropriations
Revenue Type FY 2024-25
Taxes
Property Taxes $26,440,100
Sales and Use Taxes $18,800,000
Franchise Fees $2,756,250
Transient Occupancy Taxes $5,610,000
Real Property Tax $675,000
Licenses and Permits $2,234,500
Charges for Services $3,185,300
Intergovernmental $260,000
Use of Money and Property $5,060,000
Fines and Forfeitures $350,000
Developer Contribution Maintenance Fee $85,000
Other $85,000
Total $65,541,150
General Fund/ Expenditure Program FY 2024-25
Legislative $505,282
Management and Support $9,842,211
Public Safety $23,998,633
Infrastructure Maintenance Service $12,170,997
Planning, Engineering, Building and Safety $6,260,793
Transportation $415,500
Environmental Services $1,221,980
Culture, Leisure, & Recreation $4,625,733
Community Vitality & Engagement $1,730,765
Total $60,771,894
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All Other Funds Operating Appropriations
Fund Name FY 2024-25
General Fund $60,771,894
General Fund (Capital) $2,505,000
Neighborhood Park Reserve $950,000
Low- and Moderate-Income Housing Asset $108,300
Gas Tax (HUTA) $2,883,199
Road Maintenance Rehab Account (RMRA) $4,173,730
SCAQMD AB2766 Subvention $45,000
Measure M2 Local Fair Share $2,186,270
Measure M2 Senior Mobility $125,495
Supplemental Law Enforcement Services $700,000
Franchise Agreement Recycling $67,000
SB1383 Organics Waste Recycling $233,869
Beverage Recycling $34,000
Certified Access Specialist CASP $5,000
Permanent Local Housing Allocation Program $911,365
CDBG $608,753
City Facilities Improvement $310,000
Lake Forest Traffic Mitigation $130,000
Total $76,748,875
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Capital Improvement Plan Appropriations
Funding Source Project FY 2024-25
General Fund CIP Foothill Ranch Box Lacrosse
Installation $175,000
General Fund CIP Pickleball Analysis and Court
Installation $135,000
General Fund CIP
Non Functional Turf
Removal Study and
Replacement
$70,000
General Fund CIP Arterial Wall Enhancements in
Southwest Lake Forest $100,000
General Fund CIP Aliso Creek Drainage Repairs $30,000
General Fund CIP Normandale Open Space
Renovations $375,000
General Fund CIP
Lake Forest Sports Park
Existing Synthetic Field
Replacement
$1,100,000
General Fund CIP Citywide Park Restroom
Painting and Renovations $150,000
General Fund CIP
Bake Parkway and Rockfield
Traffic Signal
Synchronization
$370,000
Neighborhood Park Reserve Lake Forest Sporks Park
Renovations $280,000
Neighborhood Park Reserve Vintage Park Renovations $170,000 Neighborhood Park Reserve Peachwood Park $180,000
Neighborhood Park Reserve Heroes Park Sports Field
Renovations $110,000
Neighborhood Park Reserve Etnies Skate Park Improvement Project $100,000
Neighborhood Park Reserve Nature Park and Lake Forest
Park $60,000
Neighborhood Park Reserve Cavanaugh Park
Renovations $50,000
State Gas Tax RMRA Road Rehab $4,173,730
Measure M2 Local Fair Share Road Rehab $2,186,270
SCAQMD AB2766 Subvention Irvine Blvd-Trabuco Road
Traffic Signal Synchronization $45,000
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Program
CDBG Acesible Pedestrian Signals $175,000
City Facilities Improvement Civic Center Meeting Room
Upgrades $310,000
Total $10,345,000
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ATTACHMENT 3
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Projected Available
Fund Revenues Fund Reserve Available
Balances Budgeted less Balances level Fund
July 1, 2024 Revenues Expenditures CIP Plan Total Expenditures June 30, 2025 Balance General Fund
General Fund 85,697,588$ 65,541,150$ 60,771,894$ 2,505,000$ 63,276,894$ 2,264,256$ 87,961,844$ 56,600,000$ 31,361,844$ Assigned
Infrastructure Reserve Fund 4,662,625 - - - - - 4,662,625 - 4,662,625 Neighborhood Park Improvement Reserve Fund 1,585,000 - - 950,000 950,000 (950,000) 635,000 - 635,000 Strategic Economic Investment Program 3,914,406 - - - - 3,914,406 - 3,914,406 Restricted
Pension Rate Stabilization 3,117,364 - - - - - 3,117,364 - 3,117,364 Total General Fund: 98,976,983$ 65,541,150$ 60,771,894$ 3,455,000$ 64,226,894$ 1,314,256$ 100,291,239$ 56,600,000$ 43,691,239$ Special Revenue Funds:

Low- and Moderate-Income Housing Asset 281,053$ 81,800$ 108,300$ -$ 108,300$ (26,500)$ 254,553$ -$ 254,553$ Gas Tax Fund (HUTA) 853,686 2,437,354 2,883,199 - 2,883,199 (445,845) 407,841 400,000 7,841 Road Maintenance & Rehabilitation Account Fund (RMRA SB1) 2,265,778 2,269,785 - 4,173,730 4,173,730 (1,903,945) 361,833 - 361,833 South Coast Air Quality Management District (SCAQMD) (34,419) 112,700 - 45,000 45,000 67,700 33,281 - 33,281 Measure M2 Local Fairshare 328,851 2,107,419 - 2,186,270 2,186,270 (78,851) 250,000 250,000 - Measure M2 Senior Mobility 200,943 125,495 125,495 - 125,495 - 200,943 - 200,943 Suppl. Law Enforcement Services 483,058 230,000 700,000 - 700,000 (470,000) 13,058 - 13,058 Franchise Agreement - Recycling 12,143 67,000 67,000 - 67,000 - 12,143 - 12,143 Organics Waste Recycling 233,869 - 233,869 - 233,869 (233,869) 0 - 0 Beverage Recycling 21,779 21,000 34,000 - 34,000 (13,000) 8,779 - 8,779 Certified Access Specialist (CASp) 35,072 5,000 5,000 - 5,000 - 35,072 - 35,072 Permanent Local Housing Allocation Program 721,844 189,521 911,365 - 911,365 (721,844) - - - Community Development Block Grant Fund (CDBG) - 608,753 433,753 175,000 608,753 - - - - Special Revenue Subtotal 5,403,657$ 8,255,827$ 5,501,981$ 6,580,000$ 12,081,981$ (3,826,154)$ 1,577,503$ 650,000$ 927,503$ Total Operating Budget 104,380,640$ 73,796,977$ 66,273,875$ 10,035,000$ 76,308,875$ (2,511,898)$ 101,868,742$ 57,250,000$ 44,618,742$ Capital Project Funds:

City Facilities Fees 47,463,240$ 5,100,000$ -$ 310,000$ 310,000$ 4,790,000$ 52,253,240$ -$ 52,253,240$ Park Development 976,394 23,100 - - - 23,100 999,494 - 999,494 Lake Forest Transportation Mitigation 2,734,554 478,200 130,000 - 130,000 348,200 3,082,754 - 3,082,754 Foothill Circulation Phasing Plan 9,662,128 800,000 - - - 800,000 10,462,128 - 10,462,128 Meadows Traffic Improvement 66,387 - - - - - 66,387 - 66,387 Affordable Housing 6,942,246 - - - - - 6,942,246 - 6,942,246 Subtotal 67,844,948$ 6,401,300$ 130,000$ 310,000$ 440,000$ 5,961,300$ 73,806,248$ -$ 73,806,248$ Grand Total All Funds 172,225,588$ 80,198,277$ 66,403,875$ 10,345,000$ 76,748,875$ 3,449,402$ 175,674,990$ 57,250,000$ 118,424,990$ Fiscal Year 2024-25 Projected Fund Balance Summary
Budgeted Expenditures
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ATTACHMENT 4
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PROJECT DESCRIPTION:

This project makes slope and basin area improvements to reduce erosion. The project also removes dead brush and debris from the area. The slopes and basin require restablization to prevent excessive runoff and damage to the natural ecosystem. The project restores the Normandale site back to a natural environment and open space area.

Strategic Plan Goal: A. Our Livable City is well planned, attractive, and safe.

Strategic Plan Priority Area: 2. Attractive: Investment and maintenance in public facilities, infrastructure, and natural resources that enhance the visual character of the City and supports quality neighborhoods
Strategic Plan Strategy: a) Proactively enhance the visual character of the City and plan for maintenance of all City assets.

CATEGORY: Slopes/Open Space/Lake Forest Sports Park
PURPOSE:

Strategic Plan Initiative: N/A
PROJECT NUMBER:

PROJECT NAME: Normandale Open Space Area Renovations
RESPONSIBLE DEPARTMENT: Public Works (Operating)
Project
Location
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FY FY FY FY FY
2023/24 2024/25 2025/26 2026/27 2027/28
Acquisition R/W
Pre-Design
Design
Const. Support
Construction 375,000$
Miscellaneous
Contingency
Total Estimate -$ 375,000$ -$ -$ -$

FY FY FY FY FY
2023/24 2024/25 2025/26 2026/27 2027/28
City Facilities -$ 375,000$ -$
Total Revenue -$ 375,000$ -$ -$ -$ FY FY
2028/29 2029/30
Acquisition R/W $ -
Pre-Design $ -
Design $ -
Const. Support $ -
Construction $ 375,000
Miscellaneous $ -
Contingency $ -
Total Estimate -$ -$ 375,000$ FY FY
2028/29 2029/30
City Facilities $ 375,000
$ -
$ -
Total Revenue -$ -$ 375,000$ Funding Source

PROJECT

ESTIMATE TOTAL
Funding Source TOTAL

PROJECT

ESTIMATE
ESTIMATED ANNUAL COST IMPACT OF PROJECT ON CITY OPERATING BUDGET:

This project would provide preventative maintenance and/or rehabilitation, which would reduce annual maintenance costs for erosion control and safety concerns.

NO PRIOR YEAR FUNDING

CURRENT AND FUTURE FUNDING
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ATTACHMENT 5
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PROJECT NUMBER: 25F01
PROJECT NAME: Conference Room Teams Upgrade Project
RESPONSIBLE DEPARTMENT: Information Technology (City Manager) CATEGORY: Technology
PURPOSE:

Strategic Plan Initiative: #64: Microsoft 365 Full Integration Strategic Plan Goal: B: Our Connected City is engaged, informed, and technologically current.

Strategic Plan Priority Area: 3. Technologically Current: Innovative technologies enhance organizational efficiency and help our community.

Strategic Plan Strategy: (a) Enhance efficiencies and services through technology.

PROJECT DESCRIPTION:

The Video Conference System upgrade project includes installing modern video converence technology based on Microsoft Teams into multiple conference rooms of the CivicCenter. Installation will use existing infrastructure to save costs where possible. Seven existing Lifesize video-conference room systems will be upgraded to Teams; Three rooms which do not currently have a video conference system will have a Teams system installed; and three rooms will be "optional" adds to the Project, based on the overall cost and budget.

Admin Floor 1
Admin Floor 2
Conference/Community Center
"Teams" Videoconference System Features:

1. Microsoft has embedded modern video
conference technology into the Office 365
platform the City already uses.

2. Teams is an integrated, easy-to-use product
which has "click to join" capability.

3. Teams rooms provide better "future-proofing" of
city technology due to integration with Office 365
and software enhancements.

5. The Teams upgrade can utilize many of the
existing conference room components.

6. Teams is a popular platform used by many other
agencies, unlike the Lifesize system.

7. Multiple options for certified devices - not
locked into a single manufacturer.

Rooms included in Project shown in Red (PAC is not shown):

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FY FY FY FY FY
2023/24 2024/25 2025/26 2026/27 2027/28
Design
Procurement
Installation 310,000$
Miscellaneous
Contingency
Total Estimate -$ 310,000$ -$ -$ -$

FY FY FY FY FY
2023/24 2024/25 2025/26 2026/27 2027/28
City Facilities
Improvement -$ 310,000$ -$
Total Revenue -$ 310,000$ -$ -$ -$ FY FY
2028/29 2029/30
0 $ -
0 $ -
Design $ -
Procurement $ -
Installation $ 310,000
Miscellaneous $ -
Contingency $ -
Total Estimate -$ -$ 310,000$ FY FY
2028/29 2029/30
City Facilities
Improvement $ 310,000
$ -
$ -
Total Revenue -$ -$ 310,000$

PROJECT

ESTIMATE
ESTIMATED ANNUAL COST IMPACT OF PROJECT ON CITY OPERATING BUDGET:

Lifesize Video System software will no longer be necessary, for a net savings of $19,000 annually beginning in FY2025/26.

Information technology and audio-visual maintenance costs will see negligible impact.

NO PRIOR YEAR FUNDING

CURRENT AND FUTURE FUNDING
Funding Source

PROJECT

ESTIMATE TOTAL
Funding Source TOTAL

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CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/4/2024
DEPARTMENT: Finance
SUBJECT:

CALIFORNIA CONSITUTION ARTICLE XIIIB APPROPRIATIONS LIMIT RECOMMENDED ACTION(S):

Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA, APPROVING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-25 IN THE AMOUNT OF $166,646,632 EXECUTIVE SUMMARY:

The Fiscal Year 2024-25 appropriations limit is $166,646,632 based on the calculation method traditionally used by the City; the limit will remain significantly above appropriations in the proposed budget subject to the limit. These appropriations are derived from the City’s “proceeds from taxes,” less eligible exclusions, such as unfunded mandates and qualified capital outlay. The factors used in the calculation of the limit were the growth in the City’s population and the change in California per capita income.

BACKGROUND:

The appropriations limit imposed by Proposition 4, known commonly as the “Gann Limit” and its subsequent ballot initiative, Proposition 111, create a restriction on the amount of revenue which can be appropriated by the City in any fiscal year. The limit is based on actual appropriations during the 1978-79 Fiscal Year and is increased each year using growth of population and inflation factors.

For cities that incorporated after Fiscal Year 1978-79, the initial limit is set pursuant to legislation that implemented Propositions 4 and 111. The controlling statute that governs this appropriations limit is Article XIIIB of the California State Constitution.

DISCUSSION:

Staff calculated the Fiscal Year 2024-25 appropriations limit based on uniform guidelines consistent with State law prepared by the League of California Cities.

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The City uses these guidelines each year. By law, the City Council is required to adopt the appropriations limit by resolution.

Adjustment Factors
Using the guidelines, staff computed the appropriations limit for Fiscal Year 2024-25 by applying two adjustment factors for the prior year’s limit: inflation and population. Staff selected and calculated these factors independently of each other to arrive at the City’s new appropriations limit for the upcoming fiscal year.

Inflation
The City can select either the percentage change in the California per capita personal income or the percentage change in assessed valuation due to non- residential new construction. For Fiscal Year 2024-25, the California per capita personal income change factor is 3.62%. The assessed valuation factor based on non-residential new construction as a percentage of the total value increases was 0.57%. The adjustment used in calculating the Fiscal Year 2024-25 appropriations limit was the change in per capita personal income.

Population
Each year, the City selects either the City’s population growth or population growth in the entire County of Orange. For the Fiscal Year 2024-25 calculation, staff selected the County‘s population growth (-0.24% for the City versus 0.44% for the County). This factor selection may change in future years if the City’s population grows at a higher rate than the County’s.

Appropriations Limit for Fiscal Year 2024-25
In preparing the appropriations limit calculation, staff used the amounts contained in the 2023-2025 Operating Budget for Fiscal Year 2024-25. Based on selected components of the two adjustment factors and the previous year’s limit, the appropriations limit for Fiscal Year 2024-25 is $166,646,632. The City’s appropriations subject to the limit are $53,279,604. These appropriations are derived from the City’s “proceeds from taxes” less eligible exclusions, such as unfunded mandates and qualified capital outlay. The City’s appropriations limit continues to be significantly in excess of annual appropriations subject to the limit.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

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ATTACHMENTS:

Draft Resolution Approving Appropriations Limit for Fiscal Year 2024-25 Initiated By: Amy Lewis, Assistant Director of Finance
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager
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ATTACHMENT
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3 RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA, APPROVING

THE APPROPRIATIONS LIMIT FOR FISCAL YEAR
2024-25 IN THE AMOUNT OF $166,646,632
WHEREAS, Article XIIIB of the California Constitution requires public entities in the State of California to calculate an annual appropriations limit; and
WHEREAS, Article XIIIB of the California Constitution and Government Code Section 7910 require the City Council to select the population and inflation factors for the year’s appropriations limit calculation; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE

FOREST, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:

Section 1. That the appropriations limit for the City of Lake Forest for Fiscal Year 2024-25 shall be $166,646,632.

Section 2. That the inflation factor being utilized to calculate the Fiscal Year 2024-25 appropriations limit is the growth in per capita personal income.

Section 3. That the population factor being utilized to calculate the Fiscal Year 2024-25 appropriations limit is the County’s population growth.

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

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3 MARK TETTEMER
MAYOR
ATTEST:
____

LISA BERGLUND

CITY CLERK
APPROVED AS TO FORM:
____
MATTHEW E. RICHARDSON

CITY ATTORNEY

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California, does hereby certify that the foregoing Resolution No. 2024-___ was duly passed and adopted at a regular meeting of the Lake Forest City Council on the 4th day of June 2024, by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

LISA BERGLUND

CITY CLERK
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