Mammoth Lakes City Council
March 16, 2022

Town Council Agenda

Wednesday, March 16, 2022, 2:30 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members of the Town Council:

Mayor Lynda Salcido, Mayor Pro Tem John Wentworth, Councilmember Sarah Rea, Councilmember Bill Sauser, Councilmember Kirk Stapp
NOTE: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (760) 965-3602. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 13.102-35.104 ADA Title II)
NOTE: Materials related to an item on this agenda submitted after distribution of the agenda packet are available for public inspection in the Town Offices located at 437 Old Mammoth Road, Suite 230 during normal business hours. Such documents are also available on the Town of Mammoth Lakes website at www.townofmammothlakes.ca.gov subject to staff’s ability to post the documents before the meeting.

NOTE: All comments will be limited to a speaking time of five minutes.

NOTE: This meeting will be conducted pursuant to the provisions of Assembly Bill 361 which amends certain requirements of the Ralph M. Brown Act. While Suite Z is still open to the public, it is strongly encouraged that you watch the Town Council meetings on the Town of Mammoth Lakes' website at www.townofmammothlakes.ca.gov , on the local government cable channel 18, or via Zoom. Public comments can be submitted to the Town Clerk at [email protected]. before and during the meeting.

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1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. PUBLIC COMMENTS
The Public Comment portion of the agenda provides the public with an opportunity to address the Town Council on matters not otherwise listed on the agenda. Under California law the Town Council is prohibited from generally discussing or taking action on items not included in the agenda; however, the Town Council may briefly respond to comments or questions from members of the public. Therefore, the Town Council will listen to all public comment, but will not generally discuss the matter or take action on it. Requests for service from the Town may also be made at the Town offices during regular business hours.

Members of the public desiring to speak on a matter appearing on the agenda should ask the Mayor for the opportunity to be heard when the item comes up for Council consideration.

4. ADDITIONS TO THE AGENDA
Opportunity to add urgency items pursuant to Government Code Section 54954.2(b)2, if necessary.

5. REPORTS FROM COMMISSIONS AND/OR DEPARTMENTS (AS NEEDED)

6. WORKSHOP

6.1. Joint Workshop with the Recreation Commission.

7. COUNCIL PRESENTATIONS

7.1. Introduce newly promoted Engineering Manager Amy Callanan.

8. STAFF PRESENTATIONS

8.1. Bird presentation on implementing service.

8.2. 2022-23 Capital Improvement Plan (CIP) Update.

9. CONSENT AGENDA

9.1. Approve the minutes of the regular meeting of March 2, 2022.

9.2. Approve the resolution re-authorizing the Town Council to meet virtually during the COVID-19 pandemic declared emergency.

9.3. Authorize a Lease Agreement with Mammoth Disposal for use of 312 Industrial Circle in the Industrial Park..

9.4. Authorize a professional services agreement with Lisa Wise Consulting Inc. for Mammoth Mountain Main Lodge Redevelopment project management.

9.5. Approve and adopt the Resolution establishing delegation of authority as a contracting agency of the California Public Employees’ Retirement System (CalPERS) to the office/position of Town Manager.

9.6. Accept the Town’s 2020-21 Independent Auditor’s Report.

9.7. Accept Payment Approval Report No. 22-35 in the amount of $202,422.42. Accept Payment Approval No. 22-36 in the amount of $595,780.23.

10. PUBLIC HEARINGS
Public Hearing Procedure.

The Mayor will open the public hearing and then: Statement and presentation by staff.

Statement and presentation by property owner or appellant. Questions from the Town Council. Call for testimony. Rebuttal to previous testimony by property owner or appellant.

Close the public hearing, terminating public testimony. The Town Council will deliberate the matter and arrive at a decision.

10.1. Adopt Resolution of Intent to Establish an Undergrounding Utility District (UUD).

10.2. 2022/23 Parks and Recreation Department Fee Schedule Amendments.

10.3. Public hearing to consider authorizing additional scope of work for the CDBG CV1 and CV2/3 Grants to provide funding towards the new public park and playground at The Parcel.

11. POLICY MATTERS

11.1. Consider Final Draft Mobility Hub Study and Program.

11.2. Policy Discussion on Mammoth Lakes Recreation Contract.

11.3. Amend Chapter 2.40 – Town of Mammoth Lakes Recreation Commission of the Town of Mammoth Lakes Municipal Code.

11.4. Adopt Resolution Supporting an Independent and Democratic Ukraine and Condemning the Russian Invasion of Ukraine.

11.5. Fiscal Year 22-23 Budget – Preliminary Revenue Projections.

12. COUNCILMEMBER REPORTS
Informational reports from Councilmember representatives on committees, commissions, and organizations; general reports on Councilmember activities

13. ADJOURNMENT
The Town Council will adjourn to a special meeting to be held jointly with the Board of Mammoth Lakes Recreation on Wednesday, March 30, 2022 at 5:00 p.m.

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Joint Workshop with the Recreation Commission.

Council Meeting Date: 3/16/2022
Prepared by: Stuart Brown, Parks and Recreation Director Recommended Motion: Workshop only.

Summary: The Recreation Commission annually schedules a joint workshop with Town Council to review the alignment of Town Council strategies with those of the Recreation Commission’s and the Parks and Recreation Department. Discussion items also include any projects, items, or activities that the advisory body is currently working on or has been directed by Town Council to complete. At the request of the Recreation Commission, staff scheduled a joint workshop with the Town Council on Wednesday, March 16, 2022 at 2:30pm. To prepare for the joint workshop, the Commission met on March 1, 2022 to finalize the agenda.

Meeting agenda:

1. Introductions and review of agenda

2. Revision of Chapter 2.40, Powers and Duties of the Parks and Recreation Commission

3. The annual work program of the Recreation Commission and the Parks and Recreation Department 2022 Strategic Workplan. Recreation Commission strategies include:
a. Enhanced Recreation Amenities
i. Community Recreation Center
ii. Deferred Maintenance Program
iii. Recreation Amenities

1. Whitmore Track and Sports Field Improvements – GRANT

DEPENDENT

2. Mammoth Lakes Community Dog Park

3. Park at the Parcel

4. Mammoth Arts and Cultural Center (MACC)

5. Shady Rest DiscGolfPark®

6. Whitmore Recreation Area Planning

7. Outdoor Multi-use Courts (Tennis/Pickleball)

8. Bike Park/Pump Track Concept

9. Mammoth Lakes Bouldering Park
b. Community Programming
i. Advocacy
ii. Community Engagement
iii. Youth Sports
c. Engagement with Mammoth Lakes Recreation (MLR), Office of Outdoor Recreation and other entities
i. Communication and Engagement
ii. Funding

d. Engagement with Industry Associations
i. Education and Networking
ii. Industry Associations
e. Better Planning = Stronger Community
i. Advocate
ii. Communicate
iii. Evaluate
iv. Innovate
v. Collaborate

4. Youth Sports Funding
a. Program sustainability and increasing demand for funding

5. Vision for community recreation in the next 1-3 years. a. Open discussion.

6. Wrap-up
Attachments:

A. 2022 Parks and Recreation Department Strategic Workplan

2022

STRATEGIC WORKPLAN
Parks & Recreation
Department

2022 PARKS & RECREATION DEPARTMENT STRATEGIC WORKPLAN
Vision: “To be the best alpine recreation community in the country.” Mission: “To provide multi-purpose, year-round, indoor and outdoor recreation opportunities accessible to all residents and visitors.”
Strategic Initiatives (pillars):

1. Excellence: We are committed to continually improve the delivery of our community programs and facilities by holding each other accountable to the high standards of excellence our departmental culture expects and demands.

2. Teamwork: We value our employees and the power of a team culture aligned with a single vision and unifying purpose by communicating, connecting, collaborating, committing and celebrating with each other to achieve extraordinary results.

3. Sustainability: We help to protect and preserve our natural, developed and finite resources by implementing sustainable best practices in our programs, parks, pools, fields and facilities.

4. Health, Safety and Social Equity: We build stronger, healthier and happier communities by promoting health, wellness and physical activity and work to ensure our parks, programs, and facilities are safe and inclusive for all people.

Excellence Teamwork
Sustainability
Health, Safety
and Social
Equity

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 3
The Strategies for 2022 are aligned with the following Town Council adopted documents:

A. Town Council Strategic Priorities and Key Objectives1 Strategic Priority: Expand availability and affordability of Community Housing • Initiate construction on Phase 1 and approve development plans for Phase 2 of The Parcel • Implement diverse housing solutions working with private sector and other agencies both locally and regionally including a review of housing related guiding documents • Identify and pursue sustainable funding source(s) for community housing • Collect and analyze data on short-term rental for compliance with Town codes and impact on local housing market and review Town code for updates
Strategic Priority: Enhance a sustainable recreation economy with partnerships & investment
• Establish and staff an Office of Outdoor Recreation to coordinate with federal land managers on recreational investments, experiences and planning related to federal lands • Enhance public recreational and community service experience through focused destination management strategies
• Finalize Agreement with MLF for MACC project; complete Community Recreation Center project; and identify options for a permanent outdoor events venue • Engage with partners on amenity improvements on federal lands, reduce fire risk and improve forest health
Strategic Priority: Investment in infrastructure improvements, and maintenance • Invest in pavement and facilities rehabilitation, replacement, expansion and maintenance (Roads, MUPs, Sidewalks, Offices, Parks, and Equipment) • Participate in regional Airport plan with FAA, Caltrans, and local partners and set local strategic vision for Mammoth Yosemite Airport (MMH)
• Develop prioritized 5-year Capital Improvement Plan (CIP) with funding plan for annual implementation
• Finalize mobility master plan and initiate work program including micro-mobility, EV capacity and transit improvements including integration with regional air service connectivity Strategic Priority: Implementation of enhanced and required municipal services • Define and implement technology-based systems for customer service improvement • Initiate Phase 1 of selected communications system and finalize decision on regional dispatch facility
• Enhance Town’s public outreach/engagement/information strategies, tools and tactics • Maintain long-term financial stability (reserves, revenue and expenditure management) to support strategic investment and flexibility to respond to opportunities and needs B. Parks and Recreation Master Plan
Parks and recreation facilities in Mammoth Lakes should advance the following six goals:
1 Adopted: May 19, 2021

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 4
• Goal 1: Maintain parks and open space within and adjacent to town for outdoor recreation and contemplation.
• Goal 2: Provide additional parks within town.
• Goal 3: Create a Master Plan for an integrated trail system that will maintain and enhance convenient public access to public lands from town.
• Goal 4: Provide and encourage a wide variety of outdoor and indoor recreation readily accessible to residents and visitors of all ages.
• Goal 5: Link parks and open space with a well-designed year-round network of public corridors and trails within and surrounding Mammoth Lakes.
• Goal 6: Provide parks and recreational facilities and programs that foster a sense of community and nurture the emotional connection people have with each other and Mammoth Lakes.

C. Parks and Recreation Department Organizational Chart D. Chapter 2.40 - Town of Mammoth Lakes Recreation Commission Within the limitations provided by law, the Town of Mammoth Lakes Recreation Commission shall have the following powers and duties to:

A. Establish a schedule of regular meeting times and places B. Make recommendations to the department director (or designee) on funding priorities related to the departmental budget
C. Serve as a liaison between the Town of Mammoth Lakes Recreation Commission and the recreation service providers and users, and the town

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D. Advise the town council and the town manager in all matters pertaining to parks, recreation, facilities, trails, special events and all other associated activities as prescribed by ordinances or by town council action
E. Aid and participate in advancement and coordination of recreation services and events with other governmental agencies, non-governmental organizations, civic groups, volunteer organizations, and the private sector
F. Formulate rules and regulations with respect to use and conduct in parks and other recreation areas
G. Regularly review surveys provided by the department director (or designee) of the population of Mammoth Lakes, to ensure that parks, recreation, facilities, trails, and special event needs are being met
H. Determine the recreational capital needs of the community, after review of recommendations by the department director (or designee), for consideration in the town's master facility and capital improvement program process I. Conduct public hearings relating to land acquisition for recreation purposes, subject to town council approval
J. Conduct public hearings and make decisions, subject to appeal to council, relating to park and facility design and development
K. Provide input to contract professionals, in conjunction with the department director (or designee), to assist in the design of facilities approved for construction through the budget process, subject to appeal to council
L. Review and provide recommendations to the town council on Measure R applications pursuant to the adopted regulations pertaining to the measure

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STRATEGY ONE:

Work Program of the Recreation
Commission

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Work Program of the Recreation Commission
A. ENHANCED RECREATION AMENITIES
GOAL: Provide strong, informed and effective advocacy for the completion of new recreation amenities and the enhancement of existing recreation amenities.

No. Task PRIORITY
1 Community Recreation Center
• Continue to advocate, communicate, and engage with the community on the benefits of the facility and associated programs.
• Review department prepared seasonal (winter/summer) operational plans for the first year of operations aligned with the Playbooks, facility amenities and financial resources of the Town.
• Support department efforts to develop and implement a comprehensive sponsorship/fundraising plan.
• Coordinate with staff on the launch of the Community Recreation Center to the public.
1 2
Deferred Maintenance Program
• Prioritize staff recommended Deferred Maintenance projects with available funds.
• Advocate for additional funds for staff presented and Recreation Commission endorsed deferred maintenance projects.
2 3
Recreation Amenities
• Support department efforts to provide multi-purpose, year-round, indoor and outdoor recreation amenities in Mammoth Lakes.
• Department prioritized recreation amenities include:
• Whitmore Track and Sports Field Improvements – GRANT DEPENDENT • Mammoth Lakes Community Dog Park
• Park at the Parcel
• Mammoth Arts and Cultural Center (MACC)
• Shady Rest DiscGolfPark®
• Whitmore Recreation Area Planning
• Outdoor Multi-use Courts (Tennis/Pickleball)
• Bike Park/Pump Track Concept
• Mammoth Lakes Bouldering Park
3 B. COMMUNITY PROGRAMMING
GOAL: Continue to seek innovative ways to aid, advocate and participate in the advancement, coordination and delivery of community recreation services through partner organizations, civic groups, volunteers, youth sports programs, other municipalities and the private sector.

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No. Task PRIORITY
1 Advocacy
• Demonstrate strong leadership and effective advocacy throughout the community to enhance community programs and amenities with an emphasis on inclusion, equity and capacity building.
1 2
Community Engagement
• Engage with the public to determine recreation needs by conducting community outreach events, activities or other methods. 2 3
Youth Sports
• Conduct Youth Sports Funding Recommendations.
• Advocate for additional funding for youth sports organizations. • Increase engagement with youth sports organizations by hosting two annual meetings.
3 4
Regulatory Oversight
• Formulate/evaluate rules and regulations with respect to use and conduct in parks and other recreation areas.
• Amend Chapter 2.40 of the Town of Mammoth Lakes Municipal Code. 4 C. ENGAGEMENT WITH MAMMOTH LAKES RECREATION (MLR), OFFICE OF OUTDOOR

RECREATION AND OTHER ENTITIES
GOAL: Engagement with Mammoth Lakes Recreation (MLR), Office of Outdoor Recreation and other entities to enhance and augment community recreation.

No. Task PRIORITY
1 Communication and Engagement
• Engage with MLR, Office of Outdoor Recreation and other entities by participating in regular meetings, joint workshops, recreation events, community meetings and other.
• Advocate for community/regional recreation facilities and amenities. 1 2
Funding
• Support Measure R/U funding recommendations for department programs or new recreation amenities.
• Grant programs – Support department efforts to source, evaluate and apply for grant funding.
2

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D. ENGAGEMENT WITH INDUSTRY ASSOCIATIONS
GOAL: Increase industry knowledge and emerging trends by participating in and networking with California Parks and Recreation Society (CPRS) and the California Association of Park and Recreation Commissioners and Board Members (CAPRCBM) conferences or events.

No. Task PRIORITY
1 Education and Networking
• Participate in industry educational and networking conferences and events.
• Participate in facilitated Commission training sessions • Participate in Town-wide mandatory training programs and sessions
1 2
Industry Associations
• Engagement with industry associations.
• Embrace emerging trends
2 E. BETTER PLANNING = STRONGER COMMUNITY
GOAL: Build stronger, healthier and happier communities by strategically integrating the California Action Plan (CAP) into our planning and project work processes.

No. Task PRIORITY
1 Advocate
• Influence public policy at the local, state, and federal level to advocate for parks and recreation.

Communicate
• Communicate the vision and value of parks and recreation to staff, community leaders, stakeholders, and partners to raise awareness of park and recreation services and benefits.

Evaluate
• Research and document successes and track performance across the profession to measure outcomes and influence public opinion and policy.

Innovate
• Evolve approaches and practices to respond to emerging trends and meet the needs of our changing communities.
1

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Collaborate
• Engage allied professionals, citizens, educators, policymakers, interest groups, corporate sponsors and service providers in collaborative efforts to leverage resources, meet broader community needs and maximize outcomes.

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STRATEGY TWO:

Maintain and Enhance the Town’s
Recreation Infrastructure

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Maintain and Enhance the Town’s Recreation Infrastructure A. ENHANCED RECREATION AMENITIES
GOAL: Launch, program and operate the Community Recreation Center (CRC) No. Task PRIORITY
1 Operations and Management Plan
• Finalize seasonal (winter/summer) operational plans for the first year of operations aligned with the Playbooks, facility amenities and financial resources of the Town.
1 2
Fundraising and Communication
• Develop and implement a comprehensive fundraising plan. Includes:
o Convene a community working group to assist in the
development of the plan.
o Identify and provide sponsorship opportunities for individual donors, local business/organizations and corporate sponsors o Identify and secure a fundraising platform
o Schedule community fundraising events/programs
o Identify and submit grant applications
o Coordinate with other local/regional organizations and partners to identify and secure funding opportunities.
• Implement a communication and public outreach plan
2 3
Facility Launch
• Coordinate with the Town Council, Recreation Commission and stakeholders on a Ribbon Cutting Ceremony for the Community Recreation Center.
3 GOAL: Lead and/or support efforts to provide multi-purpose, year-round, indoor and outdoor recreation amenities in Mammoth Lakes.

No. Task PRIORITY
1 Whitmore Track and Sports Field Improvements – GRANT DEPENDENT • This project is dependent on a successful grant award from the Prop 68 Regional Park Program (RPP) $3,000,000.
• Proposed improvements include:
• 3,000 sq. ft. Whitmore Recreation Center
• 2,000, linear foot multi-use trail with 10 fitness stations located in in 3 clusters.
• Grant award made in Spring/Summer 2022
1 2 Mammoth Lakes Community Dog Park 2

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• Determine and secure a financially feasible, sustainable, and visible site(s) for a community dog park.
• Work with community organizations, local businesses, and jurisdictional partners to foster community pride, fundraise for park amenities and support maintaining a dog park.
3 Park at The Parcel
• Develop a site plan for an 0.8 acre community park for The Parcel residents and community residents/visitors.
• Investigate funding options for the Park that includes: childcare uses, playground, BBQ/picnic area and open play area maximizing the existing trees.
• Work with Parks Maintenance, PW/Engineering and the Community and Economic Development Department on the required tasks to construct, operate and maintain The Park at the Parcel.
3 4
Mammoth Arts and Cultural Center (MACC)
• Coordinate with the Mammoth Lakes Foundation to execute and fund a contract with AMS Planning and Research to complete an Operating Forecast for the proposed MACC.
• Convene a community working group to assist AMS Planning and Research complete the contact deliverables of the Operating Forecast. 4 5
Shady Rest DiscGolfPark®
• Host a community event promoting the completion of the Pro/Recreational Tee pads, Tee signs and Adopt a Hole Sponsor stickers. • Manage the Adopt-a-Hole donor program to ensure the long-term sustainability of the amenity.
5 6
Whitmore Recreation Area Planning
• Work with the Los Angeles Department of Water and Power (LADWP) on securing additional leased area (total 112.75 acres) and the execution of a new 50-year lease for both the ball fields and pool (BL#1423). • Develop a conceptual site plan for expanded recreation amenities at the Whitmore Recreation Area.
6 7
Outdoor Multi-use Courts (Tennis/Pickleball)
• Draft outline of a scope of work for outdoor multi-use courts. • Evaluate feasible, sustainable, and visible site(s) for outdoor multi-use courts.
8 Bike Park/Pump Track Concept
• Draft outline of concept and required tasks to construct, operate and maintain a community bike park/pump track.
• Determine a financially feasible, sustainable and visible site for a bike park/pump track.
7 9 Mammoth Lakes Bouldering Park 8

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• Draft outline of a concept and required tasks to construct, operate and maintain a community bouldering park.
• Determine a financially feasible, sustainable and visible site for a community bouldering park.

B. ENHANCED RECREATION INFRASTRUCTURE
GOAL: Enhance recreation infrastructure utilizing a variety of funding sources to improve the safety, operations and guest experience of the amenities.

No. Task PRIORITY
1 Deferred Maintenance
• Implement the Deferred Maintenance Program as prioritized by the Recreation Commission with available funds.
• 2022 work program includes:
▪ Whitmore Recreation Area Softball/Baseball Field Maintenance ▪ Whitmore Recreation Area bleacher replacement (2)
▪ Community Tennis Courts crack repair
▪ Shady Rest Park irrigation system
▪ Whitmore Pool
1 2
Parks and Recreation Amenities Enhancement Program
• Launch program to provide opportunities for donors to enhance our parks and facilities for the enjoyment of all users.
• Includes water fountains, benches, trees, BBQ’s, etc. 2 3
Asset Management
• Complete GIS inventory of parks and facilities to build the foundation for an asset management plan and further the Parks and Recreation enhancement program.
• Coordinate with Public Works on asset management capabilities and a platform for implementation.
3 4
Signage and Wayfinding
• Assist in the enhancement of signage and wayfinding for parks, trails, and facilities, and Shady Rest Park winter OHV turnaround.
• Includes regulatory signs with the goal of increasing user access and public safety (dog waste).
4

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C. SUSTAINABILITY
GOAL: Develop and Implement sustainable best and NEXT practices to enhance Town owned or managed pools, parks, fields, and facilities.

No. Task PRIORITY
1 Maintenance Best Practices
• Integrate parks maintenance industry best practicesinto daily operations (Whitmore Ball Field Maintenance, in partnership with MUSD). • Determine parks maintenance next practices that are not rooted in the past, but are forward focused on the future.
• Engage with industry vendors for educational/training opportunities • Coordinate with municipal agencies on best practices, preferred vendors, and other staff/work opportunities.
1 2
Winter Snow Removal
• Review/prioritize snow removal routes/facilities based on available snow removal equipment and staffing capacity.
• Create system and products for communicating cleared routes/facilities to the public and recreation users:
• Digital map
• Weekly update (website/social/Newsletter)
• Link to www.mammothtrails.org
2

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STRATEGY THREE:

Deliver High-Quality, Innovative, and
Affordable Recreation Programming

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Deliver High-Quality, Innovative, and Affordable Recreation Programming A. COMMUNITY-CENTRIC PROGRAMMING
GOAL: Provide recreation users with high-quality, innovative, and affordable programming in the specified NEW age groups that can lead to an improved quality of life.

NEW RECREATION PROGRAM AGE GROUPS
Toddler 2 years
Preschool 3-4 years
Grade TK-2 5-7 years
Grade 3-5 8-11 years
Middle School 12-14 years
High School 15-18 years
Adult 16+ years
Active Adult 55+ years
Senior 65+ years
B. ENHANCED COMMUNITY PROGRAMMING
GOAL: Provide enhanced community programming by partnering with local organizations, youth sporting groups, individuals or jurisdictions.

No. Task PRIORITY
1 Additional/Enhanced Recreation Programs
• Develop and deliver additional programs provided by individuals, professional recreation providers or jurisdictional partner. Includes:
• Mono County, Mammoth Hospital, MUSD/MCOE, etc.
• Schedule regular communication/meetings with recreation providers to discuss, plan and schedule community programs.
1 C. PROGRAM DELIVERY
GOAL: Create and deliver scalable and sustainable signature summer camps, programs and community events aligned with the core program areas and the resource capacity and capabilities of the Parks and Recreation Department.

No. Task PRIORITY
1 Core Program Areas:

A. Summer Youth2 Camps and Programs
1 2 Youth: Ages 5-14

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• Deliver signature summer camps (1), CRC Sport Camps (2) and partner camps/programs (3).
• Aquatic programs (swim lessons/water polo)
B. Youth3 After-School Programs
• Develop and provide skill-based instructional sport/athletic and STEAM programs in non-summer seasons.

C. Adult4 Activities
• Expand programs, leagues, and tournaments for adults aged 16+, Active Adults and Seniors.

D. Community Events/Activities
• Easter Egg Hunt at SRP – April 15
• Parks and Recreation Month – July
• Fourth of July Fireworks Spectacular
• Haunted Rink and Skate Party at CRC – October 28
• Community Tree Lighting Ceremony at MCP – December 2
• Skate with Santa at CRC – December 15
E. Diverse, Inclusive and Equitable Programs
• Community members utilizing our facilities, programs or services will have equitable access, regardless of ability, race, age, sexual orientation, gender identity, religion, or country of origin. 3 Youth: Ages 5-14
4 Adult: 16+

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STRATEGY FOUR:

Strengthen Organizational Systems,
Structures and Operations

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Strengthen Organizational Systems, Structures and Operations A. OPERATIONAL EXCELLENCE5
GOAL: Develop and implement a standardized department-wide system that describes what operational excellence is, how it will be implemented, who will implement it, and how it will be measured.

No. Task PRIORITY
1 Top 3 Core Standards of Excellence
• Identify, implement and measure the Top 3 core standards of excellence for each major operational area of responsibility.
o Summer Camps
o Recreation Programs
o Community Recreation Center
o Whitmore Pool
o Facility / Activity Reservations
o Parks Maintenance
o Special Event Administration
o Signature Community Events
1 B. CONTINUAL IMPROVEMENT
GOAL: Continually improve the delivery of community events, camps, activities, programs, facility operations and parks maintenance efforts by constantly measuring, evaluating and improving performance.

No. Task PRIORITY
1 Recreation Program Evaluation and Improvement
• Measure and evaluate each recreation camp/program as it pertains to their efficiency, effectiveness, success and opportunities for improvement.
o Internal: Staff evaluation - Keep, Stop or Start
o External:
i. Collect a min. 200 completed customer satisfaction surveys ii. Conduct annual focus groups for youth, teen and adult participants.
1 2 Park/Facility Evaluation and Improvement 2
5 Operational Excellence is an element of organizational leadership that stresses the application of a variety of principles, systems, and tools toward the sustainable improvement of key performance metrics. “Systems run your business, people run your systems.”

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• Measure and evaluate each park and facility as it pertains to their efficiency, effectiveness, success and opportunities for improvement. o Internal: Staff evaluation - Keep, Stop or Start
o External:
i. Coordinate with PlayCore on a program to collect, analyze and utilize data to meet the needs of the department.
ii. Collect a min. 50 Facility Rental Satisfaction surveys 3 Enhanced Reservation Platform
• Conduct research and analyze online registration and facility reservation software that meets and/or exceeds the current and future needs of the department.
• Goal is to improve the online customer reservation experience and administrative functionality for the department.
• Present recommendations to the Recreation Commission for potential implementation in 2023.
3 C. FACILITY OPERATIONS
GOAL: Update program/facility policies and procedures, promote social equity throughout our facilities, and deploy sufficient staffing levels and standards to maintain a safe, clean, accessible and welcoming environment.

No. Task PRIORITY
1 Parks and Recreation Department Manual
• Annually review and update the Parks and Recreation Department Manual.
o Present annual Fee Schedule amendment to Recreation
Commission and Town Council for approval.
o Review additional amendments from Park/Facility use and Special Events sections as needed and prepare ordinance amendments for review and approval.
1 2
Social Equity
• Ensure that all people regardless of income level, ability, race or gender have access to the benefits of parks and recreation.
o Tony Colasardo Scholarship Fund
▪ Actively promote the scholarship program throughout
the community and integrate into seasonal preregistration information. ▪ Provide annual scholarship update to donors.
▪ Continue to solicit community donations for the
program.
▪ Provide a min. of two (2) scholarships for local youth sporting organizations to increase participation.
2

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▪ Work with MUSD on providing scholarships to those
youth in need.

D. ENHANCED INTEGRATED COMMUNICATION AND ENGAGEMENT
GOAL: Implement a fully integrated communication plan that effectively and in a cost-effective manner, disseminates information and encourages engagement about ‘core’ community parks and recreation programs, services and facilities.

No. Task PRIORITY
1 Recreation This Week
• Expand the reach of the weekly e-newsletter: “Recreation This Week” by 10%. Current subscribers: 916 -> Goal 1008 (+10%)
1 2
Communication Plan
• Implement and measure the use of the annual Communication Plan through the Customer Satisfaction Survey.
• Strategically utilize communication channels (social media, print, radio, podcasts, signage, etc.) to expand the awareness of departmental programs.
• Increase the use of video to promote the diverse range of recreation programs and services provided by the department.
2 3
Social Media
• Utilize social media platforms to increase awareness of programs and services.
• Implement and measure the effectiveness of a social media for the following sites:
o Mammoth Ice Rink: Current followers 452 -> Goal 497 (+10%) o Whitmore Pool: Current followers 582 -> Goal 640 (+10%) o Mammothparksnrec: Current followers 2,760-> Goal 3,036 (+10%)
3 4
Accessible and Informative Outreach
• The Department will collaborate with our community and county partners to ensure that messages are accessible and informative. • Includes:
• Distributing bilingual communication for programs and services • Participate in Hispanic community events to solicit input and seek feedback of outreach efforts and programming needs.
4

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 23
STRATEGY FIVE:

Advance Team Capacity and
Organizational Culture

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 24
Advance Team Capacity and Strengthen Organizational Culture A. STRENGTHEN ORGANIZATIONAL CULTURE
GOAL: Integrate the Town’s culture into the Parks and Recreation Department where both year-round and seasonal staff are valued, recognized and appreciated for their efforts.

No. Task PRIORITY
1 Celebrate our High Achievement
• Accomplish great things
• Celebrate opportunities
• Remain dynamic and positive
• Flexible and fast reacting
• Constant improvement
• Responsive and responsible
• Remove obstacles
Develop Efficient and Effective Teams
• Understand challenges
• Provide excellent service
• Know and understand
• One team atmosphere
• Engaged teams
• Ethical actions and decisions
• Fix what is broken
• Work/life balance
Communicate and Promote Respect
• Explain decisions
• Disseminate information
• Share thoughts and skills
• Provide feedback
• Develop each other
• Trust must be built
1 2
Culture ‘Integration’ Evaluation
• Evaluate the effectiveness of the integration of the Town’s culture into our daily operations with our seasonal and year-round employees.

Includes:
o On-boarding
o In-Service Training
o Staff Meetings
o Employee evaluations/Exit interviews (what are we doing well? What areas can we improve?)
2

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 25
B. TEAMWORK
GOAL: Integrate a TEAM culture aligned with a single vision and unifying purpose by integrating the 5 C’s into daily operations to achieve extraordinary results.

No. Task PRIORITY
1 Integrate the 5 C’s into daily operations
• Communicate (the what…)
o Create shared understanding and awareness by frequent and effective vertical communication - establishes a shared vision, focus, common purpose and enduring connection.
• Connect (the why…)
o Build genuine relationships and trust by positive interactions, shared experiences and honesty with each other that furthers and reinforces collaboration.
• Collaboration (the how…)
o The team is better, stronger and more productive together by working together. Seek synergistic relationships, innovation and partnerships in all directions (internally and externally). Think WE before me…
• Commit (the do…)
o It is each individual’s unwavering commitment and
accountability to the team that leads to extraordinary results.

Goal is to empower team members to act with confidence and with the support of the entire team (empowered execution). • Celebrate (All!)
o Recognition and acknowledgement of an individual’s and the team’s accomplishments needs to be celebrated!
1 C. PROFESSIONAL DEVELOPMENT
GOAL: Provide valuable and relevant job-specific education, training and certification opportunities for employees to improve productivity, efficiency and job satisfaction.

No. Task PRIORITY
2 Professional Development Plans
• Develop a personalized professional development plan for every fulltime Parks and Recreation Department employee. Includes:
o On the job training programs: webinars, industry subscriptions o Certification: CPR/AED, Playground Safety, WSI, AFO, Class B, Maintenance Management School, Food Safety Class, NRPA, etc. 2

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 26
3 Education and Networking
• Department representation at annual CPRS Conference and Expo • Department representation at annual CJPIA Conferences or Academies (i.e. Parks and Recreation Academy)
• Department representation at California Aquatic Management School • Department representation at CPRS Parks Maintenance School, Academy or educational sessions.
3 4
Customer Service Training
• Build a culture of guest service excellence throughout the department by participating in relevant programs, classes or webinars. Includes:
o CJPIA Customer Service Session
o Chamber of Commerce Peak Performance Program
o Other…
4 D. RECRUIT, RETAIN AND RECOGNIZE THE BEST
GOAL: Strategically recruit, retain and recognize our employees to sustain recreation programs No. Task PRIORITY
1 Build Team Capacity
• Develop and implement programs that train youth as Sports Officials, Counselors in Training (CIT’s), recreation facility staff and junior lifeguards to enhance program delivery.
• Recruit and train community volunteers
• Develop quality programming that allows for larger group sizes • Facilitate completion of Class B licenses for full-time and seasonal staff
1 2
Recruitment Plan
• Outreach: Partner with HR to develop and implement a recruitment plan for parks and recreation professionals. Includes skilled and mature/experienced employees, parks maintenance workers, contract instructors or volunteers for the delivery of enhanced programming.

Markets include:
o Regional school districts
o College activation
o Industry conferences/publications (CPRS/NRPA)
o Mammoth Resorts
o Inyo/Mono Counties
• Hiring Process: Develop a plan for the recruitment of staff for facility operations, camps and programs. Includes: identification of employee needs (staff roster), ad placement and schedule, interviews, offer letters and on-boarding.
2 3 Recognition Plan 3

2022 STRATEGIC WORKPLAN_RC APPROVED: 2/1/2022 27
• Implement a department-wide recognition plan for all employees o Spontaneous – recognize excellence as it happens
o Planned – schedule recognition events
▪ Weekly/Monthly awards
▪ Scheduled recognition events
E. EMBRACE EMERGING TRENDS
GOAL: The department will embrace emerging recreation trends, including product, program, amenity and facility innovations within the Parks and Recreation industry and broader Outdoor Recreation Industry.

No. Task PRIORITY
1 Trend Implementation
• Integrate relevant and sustainable industry trends into parks and recreation programs and facility operations and best practices. 1 Evaluation Methodology:

Rating Explanation
A Accomplished strategy/task and/or integrated into annual workplan/operations B
Partially completed strategy/task and/or in process of integrating into annual workplan/operations
C
Little or no action with completion of strategy/task and/or integrating into annual workplan/operations

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Bird presentation on implementing service.

Council Meeting Date: 3/16/2022
Prepared by: Haislip Hayes, PE Public Works Director
Recommended Motion: Council may provide comments on presentation from Bird Scooters.

Summary: In January of 2022 the Town and Bird Scooters entered into an agreement permitting Bird to operate a fleet of scooters as a pilot project in the Town. Bird seeks to begin operations this spring weather permitting. In advance of commencing operations Bird will present their proposed program and provide an opportunity for the Council and the public to ask questions.

1 TOWN COUNCIL STAFF REPORT
Title: 2022-23 Capital Improvement Plan (CIP) Update.

Meeting Date: March 16, 2022
Prepared by: Haislip Hayes, PE Public Works Director
Dan Holler, Town Manager
Rob Patterson, Finance Director
RECOMMENDATION:

Receive a presentation from Staff on updates to the 2022/23 5-year CIP and development of the Long-range CIP. Provide consensus direction and comments to Staff on the proposed plans.

BACKGROUND:

On September 1, 2022, the Town Council adopted the current 5-year Capital Improvement Plan (CIP). The 5-year CIP is proposed to be updated annually and to be reviewed and adopted in conjunction with the annual budget process. The first year of the 5-yar CIP represents the budgeted (funded) projects for the coming Fiscal Year along with carryover projects. This is an evolving process with changes made during year based on changes in funding, council priorities, changing conditions or new opportunities. In December of 2022 Staff presented to Council a plan to develop a Long-range (20 year) CIP. Council provided consensus direction to Staff to proceed with the development of this document in order to support the ongoing Development Impact Fee (DIF) work and better align long term strategic goals.

As proposed in the December Staff report. Staff met to discuss and organize a list of projects for the Long-range CIP. Staff reviewed all of the existing adopted plans and compiled a list of all of the projects identified in these plans. The list of well over 200 projects was trimmed down by the Town Manager, Executive Staff, and key Department Managers. The recommendation by this group to add projects to the Long-range CIP was based on many variables. Considerations included constructability system deficiencies, strategic priorities, council direction and expressed community need. There were several factors weighed placing projects on the list. Many of the projects on the list are place holders that don’t include specifics. Staff believes these concept projects will be further considered and refined on a 20-year horizon. Staff presented the project lists for both changes to the 5-year CIP and the Long-range CIP to the Recreation Commission (February 9, 2022) and the Planning and Economic Development Commissions (March 2, 2022).

2 ANALYSIS:

The purpose of this review is to look at potential revisions to the CIP in advance of Staff making funding recommendations as part of the budget cycle. Some incorporations will be included based on previous allocations other based on community needs and recent developments. Since the 5-year CIP was adopted in September of 2021 the Town Council has authorized a number of budget changes that need to be reflected in the 22/23 CIP.

During the October 20, 2021, Town Council meeting allocations were made to the following projects:
 Main Street Landscaping $200,000
 Community Recreation Center (CRC)
o Interior Improvements $350,000
o Mobility Hub $900,000
 Fuel Island $600,000
 Communication System $250,000
 Parcel Infrastructure $1,200,000
 Housing $1,000,000
In December of 2021 the Town was awarded a $50,000 T-Mobile grant for the Dog Park.

This funding advances the timing of the construction of the Dog Park and reinforces the need to identify a location. New projects to support the Parcel have been added, along with projects to support the programming at the CRC. Staff recommends inclusion of a Community Center for a future Phase and Park programming for Phase 1 of the Parcel. The Park specifically is a component of Phase 1 and while the space has been set aside the park improvements remain unfunded. The projected cost of the park improvements is nearly $1M. Other adjustments to 22/23 5-year CIP include removing the Town Hall Improvements (170k) and rescheduling the reconstruction of the Old Mammoth Road Bus Shelter to 23/24 to provide more time to address right-of-way concerns. An additional ask of $500,000 for the Communications System is needed to properly budget for estimated forthcoming improvements.

Recent developments have encouraged Staff to take a closer, more creative look at providing opportunities to meet a number of community and strategic goals. Staff has engaged the Mammoth Lakes Foundation on a potential lease partnership that could see the advancement of a number of projects. These include a Child Care Facility, location for the Dog Park, a new temporary, limited Snow Pit location, re-opening of the Edison Theater, and stronger partnership on the Mammoth Arts and Cultural Center (MACC). A number of these projects are critical community needs and if a partnership agreement is finalized, funding for these projects will need to be allocated for projects in 22/23. The financial structure for supporting these potential projects is under review. If approved, Staff would initiate work to develop scopes, budgets, and schedules for these projects in advance of adopting the budget for consideration by Town Council.

3 After developing the draft Long-range CIP Staff provided the Recreation Commission and Planning and Economic Development Commissions the opportunity to comment on the plan. At each meeting there was an opportunity for public comment. The Recreation Commission had the following comments:
 Wayfinding to include Town Loop signs on Main Street
 Prioritize the Old Mammoth Road MUP (Waterford to Mill City)  Development of Bell-Shaped Parcel (Housing and Park)
 Creation of an Urban Snow Play area
 Outdoor Events Center
The Recreation Commission had no additions to the list, nor did they recommend any projects be removed. Likewise, the Planning and Economic Development Commission made no recommendations on additions or removals. The PEDC comments were as follows:

The PEDC felt that the Intelligent Transportation System and a Transit Shelter to support the Lakes Basin Trolley were critical needs and needed to be funded as soon as possible.

These were the only comments the group had on the 5-year CIP. The commission had consensus on prioritizing Child Care, an Events Site, Wayfinding, Mobility Improvements, specifically offsite long term and overnight parking, Sidewalks and Storm Drains.

4 STAFFING CONSIDERATIONS:

The FY22-23 CIP represent a significant workload that is much larger than most years driven by the CRC and the Parcel. While no changes to current public works staffing was proposed in the FY22-23 budget. It is very likely that additional contract resources will need to be acquired to help manage these projects. Where permitted the cost of these resources will be billed to the grant or incorporated into the budget. If the Council desires additional projects be initiated, staffing will have to be carefully considered as part of the effort. Additionally, if such a workload is expected to continue for more than a season, permanent staffing changes and restructuring should be considered.

FINANCIAL CONSIDERATIONS:

A number of projects for FY22-23 are funded, there are some projects that will need additional funding and some that remain unfunded. Funding beyond 22/23 is less certain.

Staff recommends that Council evaluate the projects and provide comments based on need.

Staff will then provide project budgets and for these projects and recommendations for funding at the April 27, 2022, meeting. Based on Council input, further staff refinement a final proposed 5-year CIP document will be presented to the Planning and Economic Development Commission to confirm that the CIP is consistent with the General Plan. The CIP will come back to the Town Council for a public hearing and adoption.

DRAFT
Page Project # Description Carry Over 22/23 23/24 24/25 25/26 26/27 Total Affordable Housing
AF1 Affordable Housing Project $1,500,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $7,000,000 AF2 MLH 238 Sierra Manor Road $1,500,000 $1,500,000
AF3 60 Joaquin Affordable Housing Project $3,200,000 $3,200,000 AF4 IIG Parcel Infrastructure (Town Infrastructure) $7,500,000 $3,500,000 $3,000,000 $3,000,000 $3,000,000 $20,000,000 AF5 Affordable Housing Site Development (Bell Shape / MLF / USFS / Other) $0 AF6 Home Key Project $1,000,000 $1,000,000
AF7 Parcel Phase 2 $5,100,000 $5,100,000
Airport
AP2 8 bay ARFF/Snow Removal Maint Facility, Utilities, Access Road, & Apron $5,125,000 $5,125,000 AP3 Wildlife Security Fence $2,142,000 $2,142,000
AP4 Rehabilitate Tee-Hangar Taxilanes $918,750 $918,750 AP5 Runway RSA and OFA Grading $3,500,000 $3,500,000
General Facilities
GF3 ADA Specific Improvements $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 GF4 Snow Pit Land Acquisition $0
GF5 USFS Small Parcel Land Acquisition (MCP-East, CC, Forest Trail) $0 GF6 Fuel Island Replacement $655,000 $655,000
GF7 Biomass Facility $0
GF8 Communications System (1M in reserve) $1,000,000 $500,000 $1,500,000 GF9 MACC $70,000 $1,000,000 $1,500,000 $2,570,000
GF10 Community Center at Parcel
GF11 Edison Theater Improvements XX
GF12 Foundation Child Care Facility $150,000
GF13 Snow Pit Improvements XX
GF14 Town Hall $500,000
GF15 Parking at Parcel (50+ Spaces) XX
GF16 Parcel Child Care Facility Support $250,000 $250,000 Police Department
PD1 $0
Parks and Recreation
PR1 Community Recreation Center $14,015,000 $14,015,000 PR1a Community Recreation Center & Mob Hub $1,680,000
PR2 Community Recreation Center Interior Improvements $350,000 $350,000 PR3 Parks Maintenance & Improvements $150,000 $200,000 $150,000 $150,000 $650,000 PR7 Dog Park $150,000 $150,000
PR7a Dog Park Parking / Ped / Water / Shade XX
PR8 Whitmore Park Improvements (Restrooms, Locker Rooms, Trails) - Grant Pending $3,000,000 $3,000,000 PR9 Pump Track $0
PR10 Municipal Bouldering Park $0
PR11 Outdoor Amphitheater $0
PR12 Park at the Parcel $1,000,000 $1,000,000
Storm Drain
SD1 Storm Drain Construction Plans (John Muir and Davison) $0 Streetscape and Signage
SS1 Old Mammoth Road Beautification $650,000 $650,000
SS2 Main Street Landscaping $200,000 $45,000 $45,000 $45,000 $335,000 SS3 Trail and Municipal Signage Updates $25,000 $25,000 $25,000 $25,000 $100,000 SS4
Winter Animation and Decorations (Purchase Additional Décor and Install/Remove Annually) $80,000 $35,000 $35,000 $35,000 $185,000
Streets
ST2 Streets and MUP Rehabilitation Projects $1,400,000 $500,000 $500,000 $2,400,000 ST6 SB1 Projects $160,000 $160,000 $320,000
ST10 2021 SB1 Project (Meridian Curb and Gutter Replacement P3) $444,400 $444,400 ST11 Bluffs Assessment District Maintenance Project - Slurry Seal $40,000 $40,000 ST12 Bluffs Assessment District Maintenance Project - Fog Seal $10,000 $10,000 ST13 Chapparel Rd Construction $1,300,000 $1,300,000
Sidewalks
SW1 Laurel Mountain Sidewalks (Storm Drain, Streetlights) $2,300,000 $2,300,000 Trails
TR1 Minaret MUP $3,500,000 $3,500,000
TR2 Main Street South Side MUP Gap Closure (Town Loop) $3,000,000 $3,000,000 TR3 Sherwin Trail Head $250,000 $250,000
TR4 Lakes Basin Connector Trails $50,000 $50,000
TR5 Sherwin Area Trails $0
TR6 Shady Rest / Inyo Craters OHV Planning $200,000 $200,000 Transit and Mobility
TT4 Old Mammoth Road Transit Shelter (Replacement of CJ/Vons) $160,000 $160,000 TT5 Intelligent Transit System Improvements - Real Time Transit Information $0 TT6 Mobility Master Plan (LTC) $100,000 $100,000 $200,000 TT7 Village Parking and Pedestrian Improvements $0
TT8 SR203 (Main Street) Pedestrian Beacons (HSIP Grant) $191,400 $191,400 TOTALS $29,135,000 $26,971,400 $16,976,400 $5,958,750 $11,550,000 $1,125,000 $89,386,550 TABLE 3 - 22/23 5 year CIP

DRAFT
Page Project # Description Carry Over 22/23 23/24 24/25 25/26 26/27 Total Affordable Housing
AF1 Affordable Housing Project (Min. Annual Commitmentment) $1,500,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $7,000,000 AF2 MLH 238 Sierra Manor Road $1,500,000 $1,500,000
AF3 60 Joaquin Affordable Housing Project $3,200,000 $3,200,000 AF4 IIG Parcel Infrastructure (Town Infrastructure) $7,500,000 $3,500,000 $3,000,000 $3,000,000 $3,000,000 $20,000,000 AF5 Affordable Housing Site Development (Bell Shape / MLF / USFS / Other) $0 AF6 Home Key Project $1,000,000 $1,000,000
AF7 Parcel Phase 2 $5,100,000 $5,100,000
Airport
AP2 8 bay ARFF/Snow Removal Maint Facility, Utilities, Access Road, & Apron $5,125,000 $5,125,000 AP3 Wildlife Security Fence $2,142,000 $2,142,000
AP4 Rehabilitate Tee-Hangar Taxilanes $918,750 $918,750 AP5 Runway RSA and OFA Grading $3,500,000 $3,500,000
General Facilities
GF3 ADA Specific Improvements $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 GF4 Snow Pit Land Acquisition/New Permit $0
GF5 USFS Small Parcel Land Acquisition (MCP-East, CC, Forest Trail) $0 GF6 Fuel Island Replacement $600,000 $600,000
GF7 Biomass Facility $0
GF8 Communications System (1M in reserve) $1,000,000 $500,000 $1,500,000 GF9 MACC $70,000 $1,000,000 $1,500,000 $2,570,000
GF10 Community Center at Parcel (Future Phase Addition) GF11 Edison Theater Improvements XX
GF12 Foundation Child Care Facility (not fully funded) $100,000 GF13 Snow Pit Improvements XX
GF14 Town Hall XX
GF15 Parking at Parcel (50+ Spaces) XX
GF16 Parcel Child Care Facility Support $250,000 $250,000 Police Department
PD1 $0
Parks and Recreation
PR1 Community Recreation Center & Mob Hub $14,831,040 $14,831,040 PR2 Community Recreation Center Interior Improvements $0 PR3 Parks Maintenance & Improvements $150,000 $200,000 $150,000 $150,000 $650,000 PR7 Dog Park $150,000 $150,000
PR7a Dog Park Parking / Ped / Water / Shade XX
PR8 Whitmore Park Improvements (Restrooms, Locker Rooms, Trails) - Grant Pending $3,000,000 $3,000,000 PR9 Pump Track $0
PR10 Municipal Bouldering Park $0
PR11 Outdoor Amphitheater $0
PR12 Park at the Parcel $1,000,000 $1,000,000
Storm Drain
SD1 Storm Drain Construction Plans (John Muir and Davison) $0 Streetscape and Signage
SS1 Old Mammoth Road Beautification $833,000 $833,000
SS2 Main Street Landscaping $200,000 $45,000 $45,000 $45,000 $335,000 SS3 Trail and Municipal Signage Updates $25,000 $25,000 $25,000 $25,000 $100,000 SS4
Winter Animation and Decorations (Purchase Additional Décor and Install/Remove Annually) $80,000 $35,000 $35,000 $35,000 $185,000
Streets
ST2 Streets and MUP Rehabilitation Projects $1,400,000 $500,000 $500,000 $2,400,000 ST6 SB1 Projects $160,000 $160,000 $320,000
ST10 2021 SB1 Project (Meridian Curb and Gutter Replacement P3, Street Rehab, etc.) $444,400 $444,400 ST11 Bluffs Assessment District Maintenance Project - Slurry Seal $40,000 $40,000 ST12 Bluffs Assessment District Maintenance Project - Fog Seal $10,000 $10,000 Sidewalks
SW1 Laurel Mountain Sidewalks/Street Rehab (Storm Drain, Streetlights Sidewalks) $1,685,000 $1,685,000 Trails
TR1 Minaret MUP (SR203 to OMR) $3,500,000 $3,500,000
TR2 Main Street South Side MUP Gap Closure (Town Loop) $3,000,000 $3,000,000 TR3 Sherwin Trail Head Improvements $250,000 $250,000
TR4 Lakes Basin Connector Trails $50,000 $50,000
TR5 Sherwin Area Trails $0
TR6 Shady Rest / Inyo Craters OHV Planning $200,000 $200,000 Transit and Mobility
TT4 Old Mammoth Road Transit Shelter (Replacement of CJ/Vons) $160,000 $160,000 TT5 Intelligent Transit System Improvements - Real Time Transit Information $0 TT6 Mobility Master Plan (LTC) $100,000 $100,000 $200,000 TT7 Village Parking and Pedestrian Improvements - Pending Grant/Other Fudning $500,000 $3,250,000 $3,750,000 TT8 SR203 (Main Street) Pedestrian Beacons (HSIP Grant) $191,400 $191,400 TOTALS $29,951,040 $23,104,400 $20,226,400 $5,958,750 $11,550,000 $1,125,000 $91,815,590 TABLE 3 - 22/23 5 year CIP

1 Jamie Gray
From: Sandy Hogan <[email protected]>
Sent: Thursday, March 17, 2022 3:48 PM
To: Haislip Hayes
Cc: Jamie Gray; Stuart Brown
Subject: Comments on CIP
[EXTERNAL EMAIL]
Jamie: please forward these comments to the Town Council, Planning Commission, and Recreation Commission, thanks!
Hayes: unfortunately, I couldn't give my comments on Zoom last night, so here are they are. Most concern Parks and Recreation projects, although the last one is more general..

Additions: Recreation Commissioner O'Connell noted several times that the Community Center tennis courts replacement should be either on the 5 year, or at least somewhere on the long-term plan. 5-year plan: You noted that the tennis courts were included in either the maintenance or deferred maintenance category, and would be "resurfaced" this year. Please clarify if all courts would be resurfaced, 1-4, or 5-6, which are closed due to being unsafe for public use.
20-year horizon: There were a number of suggestions for use of the Community Center Park (not "parcel"), ranging from a rebuild of the Community Center, using it for housing, a mobility hub, and others. Our adopted plans note that we have a shortage of developed parks. This is the only developed park in this part of town, and Dan noted that it is our policy to "protect our facilities". To use it for other purposes runs counter to our General Plan/Update, and Parks and Recreation Master Plan. Also, the professional recreation consultants in our "Plan Your Parks" plan stated that the location of our tennis courts is preferable to the Bell parcel, or any other Town-owned/leased property.

After Town Council had an excellent discussion of the need to look at all plans and studies before doing even more studies, I stated that for this part of town, it was time to update the "North Village Plan", which is almost 25 years old. I feel that improving the current "transit hub" on Canyon Blvd. in the Village, including the approved plans for a 300 space garage (mobility hub) on Town-owned property, would help resolve some of the summertime Lakes Basin traffic situation, with more buses (and fewer bike trailers). Also, it would offer the opportunity for those businesses currently operating to offer their comments, as well as undeveloped property owners. The proposal for a bridge spanning Canyon to the gondola is a good one and would serve both the Westin and the Limelight development year-round. This was on the PEDC program of work several years ago, but was taken off that priority list. Perhaps this is the time to show it as a Town priority, rather than hire consultants who leave us with only incomplete draft studies.

Thanks for your consideration of my comments. I hope that some may be reflected on the approved CIP.

Respectfully, Sandy Hogan

Town Council of Mammoth Lakes
Minutes of Regular Meeting
March 2, 2022, 4:00 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members Present: Mayor Lynda Salcido, Mayor Pro Tem John Wentworth, Councilmember Sarah Rea, Councilmember Bill Sauser,
Councilmember Kirk Stapp
_____________________________________________________________________

1. CALL TO ORDER
The Mayor called the meeting to order at 4:00 p.m. in the Council Chamber, 437 Old Mammoth Road, Suite Z, Mammoth Lakes.

2. PLEDGE OF ALLEGIANCE
Amy Callanan led the flag salute.

3. PUBLIC COMMENTS
Lara Kaylor, Mammoth Lakes Tourism (MLT) Director of Content, Communication, and PR, announced that members of the MLT Board and staff would be attending Council meetings to give updates. She gave an update regarding current air service and marketing activities.

Kevin Bessenbacher, Ormat Pipeline Coordinator, introduced himself to the Council and the community.

4. ADDITIONS TO THE AGENDA
There were no additions to the agenda.

Town Council Minutes
March 2, 2022

5. REPORTS FROM COMMISSIONS AND/OR DEPARTMENTS (AS NEEDED) Town Manager Daniel C. Holler announced that staff would be bringing forward a resolution at the next meeting regarding Russian aggression in Ukraine. There was discussion among members of Council and staff.

Community and Economic Development Director Sandra Moberly gave an update regarding today's Planning and Economic Development Commission meeting. There was discussion among members of Council and staff regarding the appointment of a Council representative to the Local Transportation Commission (LTC).

Parks and Recreation Director Stuart Brown gave an update regarding current parks and recreation activities. There was discussion among members of Council and staff.

Administrative Services/Finance Director Rob Patterson gave an air service update. There was discussion among members of Council and staff.

Ms. Moberly announced that the Housing Now! page had been developed and was available on the Town's website. There was discussion among members of Council and staff.

6. STAFF PRESENTATIONS

6.1 Report on Mammoth Lakes Chamber of Commerce Work Program.

Town Manager Daniel C. Holler introduced Executive Director of the Mammoth Lakes Chamber of Commerce Ken Brengle. Mr. Brengle and Briana Goico, Mammoth Lakes Chamber of Commerce Membership and Marketing Manager, outlined the information in the staff report. There was discussion among members of Council and Chamber staff.

6.2 Final Report on Sierra Nevada Conservancy (SNC) Grant 1148-RT Sustainable Recreation and Tourism Initiative.

Town Manager Daniel C. Holler introduced Kristy Williams, Mammoth Lakes Trails and Public Access Project Management Specialist. Ms.

Williams gave a presentation outlining the Sustainable Recreation and Tourism Initiative.

Town Council Minutes
March 2, 2022

6.3 Pension Funding Discussion and Town of Mammoth Lakes Funding Status.

Administrative Services/Finance Director Rob Patterson introduced Dan Matusiewicz, GovInvest. Mr. Matusiewicz gave a presentation regarding the pension funding update. There was discussion among members of Council and Mr. Matusiewicz.

6.4 Quarterly TOT Enforcement Update – Second Quarter Fiscal Year 21-

22. Administrative Services/Finance Director Rob Patterson gave a presentation regarding the enforcement update. There was discussion among members of Council and staff.

7. CONSENT AGENDA
Moved by Councilmember Bill Sauser
Seconded by Mayor Pro Tem John Wentworth
Approve the Consent Agenda.

For (5): Mayor Lynda Salcido, Mayor Pro Tem John Wentworth, Councilmember Sarah Rea, Councilmember Bill Sauser, and Councilmember Kirk Stapp Carried (5 to 0)

7.1 Approve the minutes of the regular meeting of February 16, 2022.

7.2 Approve the resolution re-authorizing the Town Council to meet virtually during the COVID-19 pandemic declared emergency.

7.3 Adopt a resolution approving a grant application of up to $1,000,000 to the Home Investment Partnership Program (HOME) for the FirstTime Homebuyer program to provide down payment assistance.

7.4 Project Closeout Report for the Transit Shelter Project.

7.5 Project Closeout Report for the Sierra Business Park Project.

7.6 Accept Payment Approval Report No. 22-33 in the amount of $1,283,307.53. Accept Payment Approval Report No. 22-34 in the amount of $195,894.62.

Town Council Minutes
March 2, 2022

8. PUBLIC HEARINGS

8.1 Conduct the Special Election for Formation of Community Facilities District No. 2021-1 (Juniper Ridge Maintenance Services).

The Mayor opened the public hearing at 6:55 p.m.

Deputy Airport Manager Sierra Shultz outlined the information in the staff report.

With no members of the public coming forward to speak, the Mayor closed the public hearing at 6:59 p.m.

The Mayor called a recess at 6:59 p.m. and the Council reconvened at 7:10 p.m.

The Town Clerk announced the election results.

Moved by Councilmember Bill Sauser
Seconded by Councilmember Kirk Stapp
Adopt the Resolution Declaring the Election Results.

For (5): Mayor Lynda Salcido, Mayor Pro Tem John Wentworth, Councilmember Sarah Rea, Councilmember Bill Sauser, and Councilmember Kirk Stapp
Carried (5 to 0)

9. POLICY MATTERS

9.1 Comment and discussion on Ormat plowing and related NEPA requirements in Shady Rest.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

PUBLIC COMMENT:

Stacy Corless, Mono County Board of Supervisors, spoke about the lack of concern from Ormat and the Forest Service regarding the impacts to our community.

Town Attorney Andrew Morris advised that he would communicate with Mono County about the conditions, and Mr. Holler suggested that the

Town Council Minutes
March 2, 2022

Town Council discuss the issue at their joint meeting with the Mono County Board of Supervisors on March 15th.

9.2 Update on COVID 19 Management and Operations.

Town Manager Daniel C. Holler gave an update regarding the pandemic.

There was discussion among members of Council and staff.

10. COUNCILMEMBER REPORTS
Councilmember Stapp reported on the Mammoth Lakes Housing wait list and the ridership for the Eastern Sierra Transit Authority.

Councilmember Sauser attended the Sub Part C meeting, the Local Transportation Commission meeting, and the Mammoth Lakes Tourism Board meeting.

Mayor Pro Tem Wentworth attended the monthly Secretary Speaker Series event and the Local Transportation Commission meeting.

Mayor Salcido attended the Town County Liaison Committee meeting and the Chamber of Commerce Women in Business meeting.

11. CLOSED SESSION
At 7:51 p.m. the Mayor announced that the Council would be entering into closed session for the purposes as stated in the agenda.

11.1 Pursuant to Government Code Section 54956.8, the Town Council will hold a conference with its representatives in regard to lease negotiations pertaining to:

11.2 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9 : (One potential case).

11.3 Pursuant to Government Code Section 54956.8, the Town Council will hold a conference with its representatives in regard to lease negotiations pertaining to:

12. ANNOUNCEMENT OF ACTION TAKEN AFTER CLOSED SESSION
The Council reconvened from closed session at 9:00 p.m. and the Town Manager announced that no reportable action was taken.

Town Council Minutes
March 2, 2022

13. ADJOURNMENT
The Council adjourned the meeting at 9:00 p.m.

Jamie Gray, Town Clerk

RESOLUTION NO. 22-

RESOLUTION OF THE TOWN COUNCIL

OF THE TOWN OF MAMMOTH LAKES, STATE OF CALIFORNIA,

RE-AUTHORIZING THE TOWN COUNCIL TO MEET VIRUTALLY DURING THE COVID-19 PANDEMIC DECLARED EMERGENCY
WHEREAS, the Town of Mammoth Lakes supports transparency in government, and meetings of the Town Council and other legislative bodies of the Town are conducted in compliance with the Brown Act (Government Code Section 54950 et seq), so that members of the public may attend, observe, and participate; and WHEREAS, Government Code Section 54953(e) is a provision of the Brown Act establishing special rules that apply under specific circumstances to meetings of local government legislative bodies that are conducted remotely via teleconference; and
WHEREAS, using the special rules will facilitate continuing to conduct meetings remotely during the COVID-19 pandemic; and
WHEREAS, the Town Council does hereby find that allowing for conducting public meetings virtually will support social distancing and reduces the potential risk to the public, elected officials and employees to be infected by or to spread COVID-19; and
WHEREAS, a required condition for the use of the Section 54953(e) rules is the existence of a state of emergency declared by the Governor pursuant to Government Code Section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code Section 8558; and WHEREAS, an additional required condition is that state or local officials have imposed or recommended measures to promote social distancing, or that the legislative body meeting in person would present imminent risks to the health and safety of attendees; and
WHEREAS, the Governor of California declared a Statewide state of emergency due to the COVID-19 virus on Wednesday, March 4; and
WHEREAS, on March 15, 2020 the Mono County Health Officer declared a local health emergency, including finding “that there is an imminent and proximate threat to public health from the introduction of COVID-19 in Mono County;” and WHEREAS, the Mono County Director of Public Health has recently issued a memorandum recommending that social distancing be used as one means of reducing the spread of COVID-19; and
WHEREAS, on October 6, 2021, the Town Council adopted a resolution finding that pursuant to Government Code Section 54953(e), the legislative bodies of the

Resolution No. 22-

Town of Mammoth Lakes shall conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code Section 54953, as authorized by subdivision (e) of Section 54953, and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of Section 54953; WHEREAS, as a condition of extending the use of the provisions found in Section 54953(e), the Town Council must reconsider the circumstances of the state of emergency that exists in the Town of Mammoth Lakes, and the Town Council has done so; and
WHEREAS, emergency conditions continue to exist in the Town of Mammoth Lakes, as reflected by the ongoing state of emergency declared by the Governor; and
WHEREAS, requiring the meetings of the Town Council and other legislative bodies of the Town of Mammoth Lakes to be conducted entirely in person would create a risk to the health and safety of the members of the public who might attend, the members of the Town Council, Town staff, and other persons attending meetings; and
WHEREAS, the Town of Mammoth Lakes continues to comply with the requirements of Section 54953(e) to ensure public access to meetings of Town legislative bodies, including by providing notice and posting meeting agendas, allowing members of the public to access the meeting and provide comments via an Internet-based service option, and providing an opportunity for the public to address legislative bodies and offer comment in real time.

NOW, THEREFORE, BE IT RESOLVED that the recitals set forth above are true and correct and are incorporated into this resolution by this reference; and IT IS FURTHER RESOLVED that the Town Council of the Town of Mammoth Lakes hereby declares that a State and County emergency continues to exist due to the existence or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the Town of Mammoth Lakes due to the COVID-19 virus; and
IT IS FURTHER RESOLVED that the Mono County Director of Public Health has issued a memorandum recommending the continued use of social distancing as a means to reduce the spread of COVID-19, and that the COVID-19 state of emergency impacts the ability of the Town Council to safely meet in person; and IT IS FURTHER RESOLVED that the Mammoth Lakes Town Council finds the use of virtual meetings, as provided for under AB 361 as approved by the State Legislature and signed by the Governor, continues to be a prudent and safe means to conduct the Town’s business respecting the recommendation to use social distancing as a precaution to reduce the spread of COVID-19; and IT IS FURTHER RESOLVED that the Town staff and legislative bodies are hereby authorized and directed to continue taking all actions necessary to carry out the

Resolution No. 22-

intent and purpose of this Resolution including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act; and
IT IS FURTHER RESOLVED that this Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) April 16, 2022, or such time the Town Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the Town of Mammoth Lakes may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

APPROVED AND ADOPTED THIS 16th day of March 2022.
________________________________
LYNDA SALCIDO, Mayor
ATTEST:
________________________________
JAMIE GRAY, Town Clerk

1 TOWN COUNCIL STAFF REPORT
Title: Lease Agreement with Mammoth Disposal.

Meeting Date: March 16, 2022
Prepared by: Haislip Hayes, PE Public Works Director
Dan Holler, Town Manager
RECOMMENDATION:

Staff recommends that the Town Council authorize the Town Manager to execute a lease agreement with Mammoth Disposal Company for use of 312 Industrial Circle in the Sierra Business Park.

BACKGROUND:

The Town of Mammoth Lakes is the owner of two lots in the Sierra Business Park located off HWY 395 across from the Mammoth Yosemite Airport. Lots 36 and 37 (312 & 294 South Industrial Circle) were purchased by the Town to provide storage of Town equipment and bins owned by Mammoth Disposal. The Town developed plans and specifications for the improvement of these lots to accommodate these uses. In May of 2021 the Town Council awarded a contract for these improvements. Work was completed in the fall of 2021.

2 ANALYSIS:

The two Sierra Business Park lots were purchased by the Town and improved for the storage of equipment owned by Town of Mammoth Lakes and Mammoth Disposal. The Town has determined that one lot is sufficient for the needs of the Town. The Town in consultation with Mammoth Disposal has determined the easterly lot, 312 Industrial Circle, is better for Mammoth Disposal’s needs. The Town will retain and use the westerly lot, 294 Industrial Circle, for its storage needs. A chain link fence currently separates the lots, and each lot has its own access gate and utility connections. The site improvements the Town recently completed support the uses proposed in the draft lease agreement.

The proposed lease would permit Mammoth Disposal to use the lot for the following:
 Storage of waste and recycling bins and containers and parts.  Maintenance and repair of waste and recycling bins and containers.  Storage of vehicles and equipment.
 Interior storage of paint, oils, fuels, and other materials used to service bins.

Uses and conditions that are explicitly not permitted on the leased site include:
 Committing or allowing any waste, nuisance, or other such act or omission to occur on the property.
 Activity which may disturb the quiet enjoyment of those occupying the surrounding properties.
 Storage of solid waste, refuse, recyclable materials, or hazardous materials on the property.
 Permitting water or other runoff from washing bins, cans, or other receptables for solid waste, refuse, or recyclable materials to leave the property. All such water or other runoff shall be contained within systems or structures on the property.  Permitting odors from its operations on the property to escape from the Property.

The term of the lease agreement is proposed to include an initial term of eight (8) years and automatic renewals of five (5) years in order to align with the termination of the franchise agreement in 2040. During this term Mammoth Disposal will be responsible for maintenance, repairs, and any Town approved improvements to the site. Any improvements will be at Mammoth Disposals cost. A draft lease agreement has been drafted and generally reviewed by both sides. The final agreement will be substantially similar however, final approval by the Town Manager and Town Attorney is required. The recommendation in this report would allow the Town Manager to take the necessary steps to facilitate the execution of the lease.

FINANCIAL CONSIDERATIONS:

The draft lease proposes a monthly rent of $1,200 and includes a cost escalator of between 2-5% per year based on the consumer price index (CPI) for Los Angeles. Mammoth Disposal would be required to pay for any and all utility costs. Mammoth Disposal would provide a $5,000 security deposit and be required to maintain the site at their costs. The rent amount is set to cover the Town’s HOA fees and other incidental admirative costs.

ATTACHMENTS:

Attachment A – Draft Lease Agreement

TOWN OF MAMMOTH LAKES

LEASE AGREEMENT
This Lease Agreement ("Lease") is entered into on December 16, 2021 by and between the Town of Mammoth Lakes, a municipal corporation ("Lessor"), and Mammoth Disposal Company, a California corporation ("Lessee"). Lessee and Lessor may be referred to in this Lease individually as "Party" or collectively as "Parties."

RECITALS
A. Lessor is the owner of certain real property located at 312 Industrial Circle, in the County of Mono, State of California, bearing APN 037-260-037-000 ("the Property").

The Property is depicted in Exhibit “A” attached hereto and incorporated herein by reference.

B. On or about October 1, 2020, Lessor and Lessee entered into a Solid Waste Disposal Agreement for the collection and disposal of municipal solid waste (the “Franchise Agreement”).

C. Upon the terms and conditions set forth hereinafter, Lessor desires to lease the Property to Lessee, and Lessee desires to lease the Property from Lessor for the purposes set forth herein.

CONDITIONS

1. Term. The term of this Lease shall commence on January 1, 2022 ("Commencement Date"). Subject to Section 21, the lease provided herein shall continue through September 30, 2030, at 11:59 p.m. and shall automatically renew for two (2) additional five (5) years as set forth below unless either party provides the other party at least ninety (90) days’ written notice of its intent to terminate this Lease prior to the end of the initial term or any subsequent extension thereafter. After expiration of the term of this Lease, and in the case where Lessee has not vacated the Property prior to expiration, tenancy shall continue on a month-to-month basis, for a rental amount equal to one hundred fifty percent (150%) of the rental amount paid by Lessee prior to expiration of this Lease, until either party terminates this Lease in accordance with Section 22 herein.

1.1 Option to Renew: Provided Lessee is not then in default under this Lease and further provided Lessee gives Lessor at least 90 days written notice prior to the end of this Lease, Lessee may request to extend the term of the Lease for two (2) separate periods of five (5) years each. Lessor may grant or deny Lessee’s request for an extension in Lessor’s sole discretion. If agreed to by the Parties, an extension shall be upon all the terms and conditions of the Lease, provided that the initial rent shall be the then-current lease payment, as adjusted pursuant to Section 2.2 herein.

2. Payments.

2.1 Base Lease Payments. Lessee shall pay to Lessor, as rent, the sum of one thousand two hundred dollars ($1,200) per month (the "Base Lease Payment"). The first lease

payment shall be due on the Commencement Date. Subsequent lease payments shall be due and payable on the first day of each calendar month.

2.2 Rent Increase. Commencing on the first anniversary of the date Lessee is obligated to pay rent under this Lease, and continuing on each subsequent anniversary during the term of this Lease, the Base Lease Payments shall be increased by a percentage equal to the percent change in the Consumer Price Index for All Urban Consumers, Los Angeles-Long Beach-Anaheim statistical area in the most recent 12-month period for which data are then available. Notwithstanding the foregoing, no annual increase shall be less than two percent (2.0%) or greater than five percent (5.0%).

2.2 Security Deposit. Not later than the Commencement Date, Lessee shall tender to Lessor a security deposit in the amount of five thousand dollars ($5,000) (the "Security Deposit"). Lessee agrees that Lessor may (but shall not be required to) apply the Security Deposit in whole or in part to remedy any damage to the Property caused by Lessee, its agents or invitees or any failure of Lessee to perform any other terms, covenants or conditions contained herein, without waiving any of Lessor's other rights and remedies hereunder or at law or in equity and without any obligations. Should Lessor use any portion of the Security Deposit to cure any default by Lessee hereunder, Lessee shall immediately replenish the Security Deposit to the original amount. Lessor's obligations with respect to the Security Deposit are solely that of creditor and not of trustee. Lessor shall not be required to account for the Security Deposit separately from other funds under Lessor’s control, and Lessee shall not be entitled to interest on the Security Deposit. The amount of the Security Deposit shall in no way limit the liabilities of Lessee under any provisions of this Lease.

2.3 Late Charges. Lessee hereby acknowledges that late payment by Lessee to Lessor of any payment under this Lease, or any other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any payment, or any other sum due from Lessee to Lessor is not received by Lessor within ten (10) days after such amount is due, whether or not any notice of default or another notice has been given, Lessee shall pay to Lessor interest on all delinquent amounts from the date such payment was due, without regard to any grace period, at the compounded annual rate of ten percent (10%) of the overdue amount. The parties hereby agree that such interest charges represent a fair and reasonable estimate of the costs Lessor will incur by reason of late payment by Lessee.

3. Use. Lessee shall: (i) observe and comply with all local, state, and federal laws and regulations, including any Town, County and State restrictions, laws and ordinances affecting the Property or occupancy thereof; (ii) not knowingly commit any waste or suffer any waste to be committed on the Property; and (iii) only use the Property for one or more permitted uses, as defined herein.

3.1 Permitted Uses. For purposes of this Lease, Lessee shall use the Property only for the following:
• Storage of waste and recycling bins and containers and parts • Maintenance and repair of waste and recycling bins and containers • Storage of vehicles and equipment
• Interior storage of paint, oils, fuels and other materials used to service bins • Any other legal purpose ancillary or related to the other Permitted Uses above

All uses of the Property by Lessee shall comply with all local, state, and federal laws and regulations. To the extent that Lessee’s operations require an industrial stormwater permit under applicable law, Lessee shall obtain such a permit prior to commencing operations or any aspect of its operations which requires such permit.

3.2 Prohibited Uses. Lessee shall not knowingly commit or allow any waste, nuisance, or other such similar act or omission to occur in the Property, and shall not knowingly do any act or allow in the Property any condition which may disturb the quiet enjoyment of those occupying the surrounding properties, including without limitation any other tenants or occupants in the Property or in the Property. Lessee shall not store material amounts of solid waste, refuse, recyclable materials, or hazardous materials on the Property.

Lessee shall not allow water or other runoff from washing bins, cans, or other receptables for solid waste, refuse, or recyclable materials to leave the Property. All such water or other runoff shall be contained within systems or structures on the Property. No such systems or structures shall be installed without Lessor’s written consent pursuant to Section 12 herein.

Lessee shall not allow odors from its operations on the Property to escape from the Property.

4. Common Areas. For purposes of this Lease, the “Common Areas," shall be all areas and facilities outside the Property which are designated for the use of all owners or occupants of the industrial park within which the Property is located. Lessee, its agents, customers, employees and invitees shall have the non-exclusive right in common with Lessor and all others to whom Lessor or the industrial park property owners’ association have granted or may hereafter grant rights to use the Common Areas subject to such reasonable rules and regulations as Lessor or the property owners’ association may from time to time impose.

5. Discrimination. Lessee herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, use, occupancy, tenure, or enjoyment of the Property, nor shall Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of Lessees, sub lessees, or vendees in the Property.

6. Utilities. Lessee shall make all arrangements for and pay for its own utility services, including without limitation telephone service, internet service if required, water service, electric service, and snow removal.

7. Vehicle Parking. Customers, employees, guests and invitees of Lessee may park on the Property.

8. Possessory InterestTax.

8.1 Lease Subject to Possessory Interest Tax. Lessee hereby recognizes and understands that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject to the payment of property taxes levied on such

interest. Any such imposition of a possessory interest tax shall be a tax liability of Lessee solely, notwithstanding any provision of this Lease to the contrary. In addition, Lessee shall pay any personal property taxes that may become due for equipment, fixtures, inventory, or other personal property installed, maintained, or present in theProperty.

8.2 Payment of Possessory Interest Tax. Lessee shall promptly notify Lessor of any possessory interest tax imposed against Lessee's interest in the Property, and shall provide Lessor with a copy of any bill or assessment imposing the possessory interest tax. Lessor shall remit to the taxing agency the amount of the possessory interest tax imposed against Lessee, shall promptly notify Lessee in writing of the payment, and Lessee shall pay Lessor the amount paid by Lessor within 45 days of receiving Lessor's notice. Lessee's failure to timely pay Lessor this amount within 45 days after receiving Lessor’s notice shall constitute a material breach of this Lease for purposes of Section 22.

9. RepairsandMaintenance. Lessee shall, at Lessee's expense, maintain, repair and replace, and keep in good and safe condition, all portions of the Property, normal wear and tear excepted. To the extent that Lessee makes alterations, additions, or improvements pursuant to Section 12 below, Lessee shall be solely responsible for maintaining and keeping in a state of good repair all such alterations, additions, and improvements.

10. Conditions of Property and Disclaimer of Liability.

10.1 Condition of Property. Lessee has examined the Property and any Common Areas to which Lessee and its employees, customers, or visitors will have access, and agrees to take possession of the Property in an "as is" condition. Lessee acknowledges and agrees that Lessor has made absolutely no representations, guarantees or warranties regarding the Property or any Common Areas, nor has Lessor made representations, guarantees or warranties regarding whether the Property and Common Areas and improvements thereon comply with applicable covenants and restrictions of record, building codes, ordinances or statutes in effect at the commencement date of this Lease.

10.2 Disclaimer of Liability for Conditions of Property. Lessor shall have no liability to Lessee or any owner, officer, employee, customer, vendor, guest, or visitor of Lessee arising out of or due to the use of the Property or the Property by any person, unless such liability arises from the Lessor’s fraud, negligence or intentional unlawful act. The indemnification and hold harmless provisions of Section 16 of this Lease are applicable to claims and causes of action arising out of the condition of the Property and the Property.

11. Damage or Destruction of Property. Unless as the result of negligence or intentional unlawful act of Lessee, if during the term of this Lease, any portion of the Property shall be damaged by fire or other catastrophic cause, so as to render such portion of the Property untenable, the obligations under this Lease may be suspended while such portion of the Property remains untenable. In the event of such damage, Lessee shall give Lessor notice of such untenable conditions and the Lessor shall elect in its sole discretion, whether to repair the Property or to cancel this Lease with respect thereto. In the event that Lessor elects not to repair the Property or portion thereof, this Lease shall be deemed canceled as of the date the damage occurred with respect to the applicable portion(s). In the event such damage is not repaired within forty-five (45) days and that such damage impairs Lessee's ability to conduct its business, Lessee shall have the option to terminate the Lease. If such

repairs are untenable, then Lessee may abate rent.

12. Alterations, Additions and Improvements. Lessee may not make any alterations, improvements or additions in, on or about any of the Property, including but not limited to Lessee's occupied portion, without first obtaining the prior written consent of Lessor’s Town Manager and Public Works Director, the prior written consent of the industrial park property owners’ association, and any permits or approvals customarily required for such work by Mono County., The Town Manager’s and Public Works Director’s consent shall not be unreasonably withheld, conditioned or delayed. Lessee, its customers, employees, vendors, invitees, contractors, and maintenance workers shall take all precautionary measures not to leak, spill, or release a hazardous substance in or on the Property or the Property, and to immediately notify Lessor if any leakage, spillage or release of a hazardous substance occurs.

12.1 Any and all alterations which become fixtures under California law shall at once become a part of the realty and belong to Lessor. However, Lessor may, in its sole discretion, require Lessee to remove any alterations, fixtures, or other tenant improvements prior to vacating the Property. Lessee shall be responsible for repair for any damage caused by said removal.

12.2 Lessee shall keep the Property free from any liens arising out of any work performed, materials furnished or obligations incurred by Lessee, and Lessee shall be responsible for the removal of any such liens and all costs to remove same. Failure to remove any such liens within thirty (30) calendar days of written request by Lessor shall constitute a default of thisLease.

12.3 At its election, but without having any obligation to do so, Lessor may pay such liens not so removed by Lessee and Lessee shall, within ten (10) days following the receipt of written request from Lessor, reimburse Lessor for all such costs incurred by Lessor with respect to the removal of such liens.

13. Subordination. This Lease is and shall be subordinate to any reciprocal easement agreement, ground lease, facilities lease or other underlying lease and the lien of any mortgage or deed of trust and all renewals, modifications, consolidations, replacements and extensions of any of the foregoing, that may now exist or hereafter be executed by Lessor affecting the Property, or any part thereof, or Lessor's interest therein, without the necessity of executing any instrument to effectuate such subordination; provided, however, upon Lessor's request, Lessee, or Lessee's successor-in-interest, shall execute and deliver any and all commercially reasonable instruments evidencing such subordination in the manner requested by Lessor. Notwithstanding the foregoing, Lessor or the holder shall in its respective discretion, have the right to subordinate any such interests to this Lease. If any ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed or conveyance in lieu of foreclosure is made for any reason, Lessee shall attorn to the successor-in-interest to Lessor, at the option of such successor-ininterest. Lessee agrees however, to execute and deliver, upon demand by Lessor and in the form requested by Lessor, any additional documents evidencing the priority or subordination of this Lease.

14. Estoppel Certificates. Within twenty (20) days after request by Lessor, Lessee will deliver an estoppel certificate duly executed (and acknowledged, if required by any lender), to any proposed mortgagee, or purchaser. Lessee's failure to deliver this statement in that time period will be an Event of Default under this Lease.

15. Access by Lessor. Lessor reserves for itself and any of its designated agents the

right to enter the Property as follows:
(a) on a regular basis without advance notice to supply any necessary or agreedupon service to be provided by Lessor hereunder; (b) on an occasional basis, at all reasonable times after giving Lessee 24 hours' advance written notice, to show the Property to prospective lessees or other interested parties within the last twelve (12) months of the then-current term, to post notice of non-responsibility, to verify Lessee’s compliance with this Lease and applicable laws, to repair, alter or improve any part of the Property, and or any other lawful purpose; and (c) on an emergency basis without notice whenever Lessor reasonably believes that emergency access is required. Lessor shall have the right to use any means that it deems proper to open doors in an emergency in order to obtain access to any part of the Property, and any such entry shall not be construed or deemed to be a forcible or unlawful entry into or a detainer of, the Property, or an eviction, actual or constructive, of Lessee from the Premises or any portion thereof. Lessee shall not alter any lock or install any new or additional locking devices without the prior written consent of Lessor.

16. Indemnity. Lessee agrees to indemnify, defend, and hold Lessor, its elected and appointed officials, employees, agents, successors and assigns, volunteers, and guests, and the personal property of the Lessor, including the Property, free and harmless of any and all claims, liability, loss, damage, or expenses resulting from Lessee's occupation and/or use of the Property, specifically including, without limitation, any claim liability, loss or damage to the extent arising by reason of:
(a) The death or injury of any person or persons, including Lessee or any person who is an employee, agent, guest, or customer of Lessee, or by reason of the damage or destruction of any property, including property owned by Lessee or any person who is an employee, agent, guest, or customer of Lessee, and caused by either the defective condition of said premises, or some negligent act or omission of Lessee or of some agent, contractor, employee, servant, sub lessees, guest, or customer of Lessee on theProperty;
(b) Any work negligently performed on the Property by Lessee or materials furnished to the Property at the insistence or request of Lessee;and (c) Lessee's failure to perform any provision of this Lease, or to comply with any requirement of local, state or federal law or any requirement imposed on Lessor or the leased Property by any duly authorized governmental agency or political subdivision.

17. Hazardous Materials Prohibited. The use, generation, storage or disposal of Hazardous Materials on the Property is strictly prohibited, and any such use, generation, storage, or disposal shall result in a default and termination of this Lease. For the purpose of this Section, Hazardous Materials shall include, without limitation, substances defined as "hazardous substances", "hazardous materials", "toxic substances", "hazardous wastes", "extremely hazardous wastes", or "restricted hazardous wastes", or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, '42 U.S.C. sections 9601, et seq; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seq; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501

of the California Health & Safety Code; or any substances so defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time.

18. Insurance.

18.1 Lessee shall obtain insurance in the amounts described below unless specifically altered or waived by Lessor ("Required Insurance"). If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Lease or be no less than two times the specified occurrence limit.
(i) General Liability Insurance. Lessee shall maintain occurrence version general liability insurance, or an equivalent form, with a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence, which limit may be satisfied by a combination of primary and umbrella policies.
(ii) Workers' Compensation Insurance. Licensee shall maintain Workers' Compensation insurance in compliance with all applicable statutes.

18.2 The general liability insurance policy shall name Lessor, its elected officials, officers, employees, agents, and volunteers as additional insureds. The Required Insurance shall be primary as to Lessee's operations with respect to any insurance or selfinsurance programs covering Lessor, its elected officials, officers, employees, agents, and volunteers, or if in excess stand in an unbroken chain of coverage in excess of Lessee's scheduled underlying coverage. The Required Insurance shall contain standard separation of insureds provisions, and shall contain no special limitations on the scope of its protection to Lessor, its elected officials, officers, employees, agents, and volunteers.

18.3 Prior to the Commencement Date, Lessee shall furnish to Lessor properly executed certificates of insurance which evidence all Required Insurance. Licensee shall maintain the Required Insurance at all times while this Lease is in effect, and shall replace any certificate, policy, or endorsement which will expire or does expire, within ten (10) business days thereof without a lapse in coverage. Lessee shall forward any notice of cancellation to Lessor within two (2) business days from date of receipt by Lessee. Lessee's failure to forward Lessor any notice of cancellation issued to Lessee shall be considered a breach of this Lease. Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to Lessor, its directors, officials, officers, employees, agents, and volunteers.

Unless approved in writing by Lessor, Lessee shall place the Required Insurance with insurers licensed or authorized to do business in the State of California and with a current AM. Best rating of at least A-:VII.

19. Attorneys' Fees. Should any action or proceeding be commenced by Lessor or Lessee to enforce the provisions provided in this Lease, or should any litigation be commenced between the parties to this Lease concerning the Property, this Lease, or the rights and duties of either in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted as the result of said litigation, to a reasonable sum for its attorneys' fees. In determining which party is the “prevailing party,” the Court: (a) must take into account the claims pursued, the claims on which the pursuing party was successful, the claims on which the defending party was successful, the amount of money sought, the amount of money awarded, and offsets or counterclaims pursued (successfully or unsuccessfully) by the other party; and (b) must not take into account any other factors, except to the extent required by law.

20. Assignment and Subletting. Other than to a subsidiary or an entity under common ownership with Lessee, Lessee agrees not to convey, assign, sublet or encumber any interest in the Property during the term of this Lease without first obtaining Lessor's prior written approval, which may be granted or refused in Lessor's sole and absolute discretion, notwithstanding sections 1995.260 and 1995.270 of the California Civil Code as they may be amended. Any attempted sale, conveyance, assignment, sublet, or encumbrance shallbe void where prior written approval has not first been obtained from Lessor. Any assignment or subletting approved by Lessor shall not relieve Lessee of any of its obligations or liabilities under this Lease for the term of this Lease, and both Lessee and any subsequent assignor(s} and lessor(s) will be deemed to be bound by this Lease.

21. Termination. Without limiting its ability to seek other remedies, either at law or in equity, either party may terminate this Lease and all of the obligations herein, at its option, upon the other party's breach of any of its obligations under this Lease and failure to cure such breach within thirty (30) days after receipt of written notice from the non-breaching party or, if such cure cannot be completed within thirty (30) days, the breaching party's failure to commence such cure within thirty (30) days after its receipt of written notice and thereafter failing to diligently prosecute such cure to completion.

Notwithstanding anything contained herein to the contrary, this Lease shall automatically terminate in the event the Franchise Agreement is terminated, canceled, or otherwise not in full force and effect. ·

22. Default. Any of the following events or occurrences shall constitute a material breach of this Lease by Lessee, and shall constitute an event of default. (a) A default by Lessee in the payment when due of any rent or other sum payable under this Lease and the continuation of this default for ten (10) or more days after notice of the default from Lessor, provided that if Lessee has failed two (2) or more times in any twelve (12) months to pay any rent or other sum when due and notice of this default has been given by Lessor in each instance, no further notice shall be required after such instances until theexpiration of twelve (12} months in which all rental and other sums payable under this Lease have been paid on or before the date due;
(b) Abandonment, vacation, or surrender of the Property by Lessee without Lessor's prior written consent. Failure to occupy and/or operate the Property for thirty (30) consecutive days shall be deemed an abandonment and vacation (unless at least ten (10) days before failing to occupy or operate the Property Lessee gives Lessor written notice that Lessee intends to continue using the Property and will continue maintaining the Property while it is vacant), or the dispossession of Lessee from the Property (other than by Lessor by process of law or otherwise);
(c) The failure by Lessee to perform any other obligation under this Lease, if the failure has continued for a period of thirty (30) days after Lessor demands in writing that Lessee cure the failure. If, however, by its nature, the failure cannot be cured within thirty (30) days, Lessee may have a longer period as is necessary to cure the failure, but this is conditioned upon Lessee's promptly commencing to cure within the ten (10) day period and thereafter diligently completing the cure; or
(d) The bankruptcy or insolvency of Lessee, a transfer by Lessee in fraud

of creditors, an assignment by Lessee for the benefit of creditors, or the commencement of proceedings of any kind by or against Lessee under the Federal Bankruptcy Act or under any other insolvency, bankruptcy, or reorganization act, unless Lessee is discharged from voluntary proceedings within ninety (90) days.

Notices given under this Section shall specify the alleged default and the applicable Section(s), and shall demand that Lessee perform as provided under the applicable Section(s) or pay the amount that is in arrears, as the case may be, within the applicable period of time, or quit the premises. No such notice shall be deemed a forfeiture or a termination of this Lease unless Lessor so elects in the notice.

23. Notice. All notices or other communications required or permitted hereunder shall be in Writing, and shall be personally delivered or sent by registered or certified mail, return receipt requested, telegraphed, delivered or sent by telex, telecopy or email and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, or (ii) if mailed, three (3) business days after the date of posting by the United States post office.

To Lessor:

With a copy to:

To Lessee:

With a copy to:

Town of Mammoth Lakes
P.O. Box 1609
Mammoth Lakes, CA 93546
Attn: Town Manager
[email protected]
Town of Mammoth Lakes
P.O. Box 1609
Mammoth Lakes, CA 93546
Attn: Town Attorney
[email protected]
Mammoth Disposal Company
59 Commerce Dr.

Mammoth Lakes, CA 93546
Attn: District Manager
3 Waterway Square Pl., Suite 110
The Woodlands, TX 77380
Attn: Legal Department
Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request or communication sent.

24. No Right to Holdover. Lessee has no right to retain possession of the Property or any part thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over, the lease payment amount specified in Section 2 of this Lease shall be increased

to one hundred fifty percent (150%) of the applicable amount immediately preceding the expiration or termination of this Lease.

25. Sale and Use of Alcohol. Lessee agrees that it shall not allow for the sale of alcoholic beverages on the Property at any time, or in any manner. Public intoxication and possession of open alcoholic containers on the Property and outside the Property, including within the Common Areas is prohibited. Lessee's failure to strictly adhere to this provision shall result in Lessee immediately being declared in material breach of this Lease by Lessor, and shall result in an event of default as provided in Section 22 herein.

26. Force Majeure. Whenever a period of time is herein prescribed for action to be taken by either party hereto, such party shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, terrorist acts or activities, governmental laws, regulations, or restrictions, or any other causes of any kind whatsoever which are beyond the control of such party

27. Compliance with Laws. Lessee shall comply with all applicable Federal, State and local laws, regulations and standards that are or may become applicable to Lessee's occupancy and/or activities on the Property. The judgment of any court of competent jurisdiction, or the admission of Lessee in a proceeding brought against it by any governmental entity, that Lessee has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between the Lessor and the Lessee and shall constitute grounds for declaration of default, material breach, forfeiture, and termination of this Lease by Lessor.

28. Cumulative Remedies. No remedy or election contained herein shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

29. Signs. All signs and graphics of every kind visible from the exterior of the Property will be subject to Lessor's prior written approval in its sole discretion, and will be subject to any applicable laws and ordinances of Mono County.

30. [Reserved].

31. Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

32. Captions. Any captions to, or headings of, the sections or subsections of this Lease are solely for the convenience of the parties hereto, are not a part of this Lease, and shall not be used for the interpretation or determination of the validity of this Lease or any provision hereof.

33. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Lease shall not be deemed to confer any rights upon, nor obligate any of the parties thereto, to any person or entity other than the parties hereto.

34. Amendment of Lease. The terms of this Lease may not be modified or amended except by an instrument in writing executed by each of the parties hereto.

35. Waiver. The waiver or failure to enforce any provision of this Lease shall not operate as a waiver of any future breach of any such provision or any other provision hereof.

36. Applicable Law and Venue. This Lease shall be governed by and construed in accordance with the laws of the State of California. Any action to interpret or enforce this Lease shall be brought and maintained exclusively in the Mono County Superior Court.

37. Fees and Other Expenses. Except as otherwise provided herein, each of the parties shall pay its own fees and expenses in connection with this Lease, including any permit or license fees which Lessee may be required to obtain pursuant to its occupancy.

38. Authority to Execute Lease. Lessor and Lessee warrant that the individuals who have signed this Lease have the legal power, right and authority to enter into this Lease so as to bind each party for whom they sign to perform as provided herein.

39. Successors and Assigns. This Lease shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto, Lessee shall be responsible for the acts or omissions of its sublessee(s), if any.

40. Incorporation of Recitals and Exhibits. Each and all of the Recitals and Exhibits to this Leaseareincorporated by reference as though fully set forth herein.

41. Entire Agreement. This Lease supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between Lessee and Lessor as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to any employees, officer, agent or representative of either party shall be of any effect unless it is in writing and executed by the party to be bound thereby. [signatures on following page]

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first-above written.

LESSOR AND LESSEE(S) HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND

EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES

HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS

AGREEMENT ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PROPERTY.

LESSOR
Town of Mammoth Lakes, a municipal
corporation
By: __________________________
Daniel C. Holler,
Town Manager

Date: ___________________________
LESSEE
Mammoth Disposal Company
By: ____________________________
Name: _________________________
Title: ___________________________
Date: __________________________
By: ____________________________
Name: _________________________
Title: ___________________________
Date: __________________________

EXHIBIT “A”

THE PROPERTY
Lease Area
Lot 37
312 Industrial Circle

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Authorize a professional services agreement with Lisa Wise Consulting Inc. for Mammoth Mountain Main Lodge Redevelopment project management.

Council Meeting Date: 3/16/2022
Prepared by: Sandra Moberly, Community and Economic Development Director Recommended Motion: Staff recommends that the Town Council authorize the execution of a professional services agreement with Lisa Wise Consulting Inc., for the Main Lodge Redevelopment project management subject to the Town Attorney’s approval and finalization of the agreement.

Summary: See attached staff report.

1 TOWN COUNCIL STAFF REPORT
Subject: Authorize a professional services agreement with Lisa Wise Consulting Inc. for Mammoth Mountain Main Lodge Redevelopment project management
Meeting Date: March 16, 2022
Written by: Sandra Moberly, Community and Economic Development Director RECOMMENDATION:

Authorize the professional services agreement with Lisa Wise Consulting, Inc., subject to the Town Attorney’s approval and finalization of the agreement, for project management support as described in the agreement which is included as Attachment A.

BACKGROUND/ANALYSIS:

In 2019, approximately 35.7 acres of land was transferred from the United States Forest Service to Mammoth Main Lodge Redevelopment LLC (MMLR). The land is currently located within the municipal boundary limits of the Town of Mammoth Lakes (Town). In January 2021, MMLR submitted a Pre-Application to the Town that included a conceptual land use plan and project description. The project includes two hotels, for-sale residential, club amenities, retail, dining, and skier services.

On May 13, 2021, the Town received a Concept Review Application from MMLR. Staff presented the MMLR Concept Review Application and provided detailed information about the entitlement process at a joint Town Council/Planning and Economic Development Commission meeting on June 16, 2021. Since June, staff has been working with the applicant on the preliminary CEQA/NEPA analysis that will inform the formal entitlement application. Staff anticipates that submittal in the next several months.

This project was previously managed by Senior Planner Chandler Van Schaack who resigned in December 2021. The Town is currently working to backfill the senior planner position but anticipates the need for outside project management support for this project due to current entitlement workload. Staff reached out to Lisa Wise Consulting, Inc. to procure the services of Jen Murillo (Daugherty) who worked for the Town for over 10 years and is familiar with the Town’s planning policies, zoning code, and permit review procedures. Bringing Ms. Murillo in to manage the project will allow Town staff to focus on the current entitlement/workload while still providing a high level of project management for the MMLR project.

2 OPTIONS ANALYSIS
Option 1: Authorize the execution of a professional services agreement with Lisa Wise Consulting Inc., for the Main Lodge Redevelopment project management subject to the Town Attorney’s approval and finalization of the agreement.

Option 2: Do not authorize the execution of a consulting agreement with Lisa Wise Consulting Inc.

FINANCIAL CONSIDERATIONS:

The costs will be billed on a time/materials basis and the project applicant will cover all costs related to this contract. The Town will track and invoice costs on a monthly basis.

LEGAL CONSIDERATIONS:

The Town Attorney has reviewed the attached consulting agreement and will work with staff and the consultant to finalize the agreement.

ATTACHMENTS
Attachment 1: Draft Consulting Agreement: Lisa Wise Consulting, Inc.

TOWN OF MAMMOTH LAKES

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 16th day of March 2022, by and between the Town of Mammoth Lakes, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 437 Old Mammoth Rd., Suite 230, Mammoth Lakes, California, 93546 (“Town”) and Lisa Wise Consulting, Inc., a California Corporation, with its principal place of business at 983 Osos Street, San Luis Obispo, CA 93401 (“Consultant”).

Town and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional planning consulting services required by the Town on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional planning consulting services to public clients, is licensed in the State of California, and is familiar with the plans of Town.

2.2 Project.

Town desires to engage Consultant to render such professional planning consulting services for the Mammoth Mountain Main Lodge Redevelopment Project as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the Town all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional planning consulting services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from March 17, 2022 to March 17, 2025 unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The

Lisa Wise Consulting Inc. – March 16, 2022
2 Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. Town retains Consultant on an independent contractor basis and not as an employee.

Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of Town and shall at all times be under Consultant's exclusive direction and control. Neither Town, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Reserved.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of Town.

3.2.4 Substitution of Key Personnel. Consultant has represented to Town that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of Town. In the event that Town and Consultant cannot agree as to the substitution of key personnel, Town shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the Town, or who are determined by the Town to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the Town. The key personnel for performance of this Agreement are as follows: Jennifer Murillo, Director.

3.2.5 Town's Representative. The Town hereby designates Sandra Moberly, Community and Economic Development Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement (“Town's Representative”). Town's Representative shall have the power to act on behalf of the Town for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The Town Manager shall be authorized to act on Town's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the Town Manager, Town's Representative or his/her designee.

3.2.6 Consultant's Representative. Consultant hereby designates Jennifer Murillo, Director, or his/her designee, to act as its representative for the performance of this Agreement (“Consultant's Representative”). Consultant's Representative shall have full authority

Lisa Wise Consulting Inc. – March 16, 2022
3 to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with Town staff in the performance of Services and shall be available to Town's staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the Town, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the Town to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the Town, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom.

Consultant shall defend, indemnify and hold Town, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.

3.2.10.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the Town that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the Town that the subconsultant has secured all insurance required under this section.

Lisa Wise Consulting Inc. – March 16, 2022
4 3.2.10.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, or the exact equivalent, and shall be no less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities shall be in an amount of not less than $1,000,000 combined limit for each occurrence. (C) Workers’ Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
(D) Professional Liability: Professional Liability insurance with minimum limits of $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claimsmade basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.

3.2.10.3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the Town for approval.
(A) The policy or policies of insurance required by Section 3.2.10.2(A), Commercial General Liability, shall be endorsed to provide the following:
(1) Additional Insured: Consultant agrees to endorse the third party general liability coverage required herein to include as additional insureds Town, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition date of 2010.

Lisa Wise Consulting Inc. – March 16, 2022
5 Consultant also agrees to require all contractors, subcontractors, and anyone else involved in any way with the Project contemplated by this Agreement to do likewise.
(B) The policy or policies of insurance required by Section 3.2.10.2(C), Workers' Compensation, shall be endorsed to provide the following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.

3.2.10.4 Primary and Non-Contributing Insurance. All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.10.5 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

3.2.10.6 Deductible. Any deductible or self-insured retention must be approved in writing by the Town and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.10.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the Town. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the Town. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the Town evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.10.8 Failure to Maintain Coverage. Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the Town. The Town shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement. In the event that the Consultant's operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.

Contractor shall provide immediate written notice if: (i) any of the required insurance policies is

Lisa Wise Consulting Inc. – March 16, 2022
6 terminated; (ii) the limits of any of the required policies are reduced; or (iii) the deductible or selfinsured retention is increased.

3.2.10.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.10.10 Insurance for Subconsultants. All Subconsultants shall be included as additional insureds under Consultant's policies, or Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the Town as an Additional Insured to the Subconsultant's policies. Consultant shall provide to Town satisfactory evidence as required under Section 3.2.10.1 of this Agreement.

3.2.10.11 Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Agreement are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If Consultant maintains higher limits than the minimums shown above, Town requires and shall be entitled to coverage for the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Town.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "A” attached hereto and incorporated herein by reference.

3.3.2 Payment of Compensation. Consultant shall submit monthly invoices.

Town shall pay all undisputed amounts within 30 days of the receipt of each invoice.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by Town, or included in Exhibit "A" of this Agreement.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Town during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

Lisa Wise Consulting Inc. – March 16, 2022
7 3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. Town may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to Town, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, Town may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, Town may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Lisa Wise Consulting Inc.
983 Osos Street
San Luis Obispo, CA 93401
ATTN: Jennifer Murillo, Director
Town: Town of Mammoth Lakes
PO Box 1609
437 Old Mammoth Road, Suite 230
Mammoth Lakes, CA 93546
ATTN: Sandra Moberly, Community and Economic
Development Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

Lisa Wise Consulting Inc. – March 16, 2022
8 3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for Town to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that Town is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the Town.

Town shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at Town's sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of Town, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Town's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of Town.

3.5.3.3 Confidential Information. The Town shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the Town's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the Town shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give Town written notice of Consultant's objection to the Town's release of Proprietary Information.

Consultant shall indemnify, defend and hold harmless the Town, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. Town shall not release the Proprietary Information after receipt of the Objection Notice unless either:
(1) Consultant fails to fully indemnify, defend (with Town's choice of legal counsel), and hold Town harmless from any legal action brought to compel such release; and/or (2) a final and nonappealable order by a court of competent jurisdiction requires that Town release such information.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

Lisa Wise Consulting Inc. – March 16, 2022
9 3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.

3.5.6 Indemnification.

3.5.6.1 Scope of Indemnity. To the fullest extent permitted by law, Consultant shall defend, indemnify and hold the Town, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

3.5.6.2 Additional Indemnity Obligations. Consultant shall defend, with counsel of Town’s choosing and at Consultant's own cost, expense and risk, any and all claims, suits, actions or other proceedings of every kind covered by Section 3.5.6.1 that may be brought or instituted against Town or its directors, officials, officers, employees, volunteers and agents. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against Town or its directors, officials, officers, employees, volunteers and agents as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse Town for the cost of any settlement paid by Town or its directors, officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for Town's attorney's fees and costs, including expert witness fees. Consultant shall reimburse Town and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Town, its directors, officials officers, employees, agents, or volunteers.

3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Mono County.

Lisa Wise Consulting Inc. – March 16, 2022
10 3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.10 Town's Right to Employ Other Consultants. Town reserves the right to employ other consultants in connection with this Project.

3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the Town. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days.

All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to Town include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration

Lisa Wise Consulting Inc. – March 16, 2022
11 contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, Town shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of Town, during the term of his or her service with Town, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of Town's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of Town. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

TOWN OF MAMMOTH LAKES LISA WISE CONSULTING, INC.

By: By:

Daniel C. Holler, Town Manager Lisa Wise, President
Attest:

By:

Henry Pontarelli, Secretary

Lisa Wise Consulting Inc. – March 16, 2022
12 By:

Jamie Gray
Town Clerk
Approved as to Form:

By:

Andrew Morris
Town Attorney

Lisa Wise Consulting Inc. – March 16, 2022

A-1
EXHIBIT "A"

SCOPE OF SERVICES

SCHEDULE

COMPENSATION

TOWN OF MAMMOTH LAKES SCOPE OF WORK - 2022 | LISA WISE CONSULTING, INC. | 1 Town of Mammoth Lakes

MAIN LODGE ON-CALL/CONTRACT PLANNER ASSISTANCE

SCOPE OF WORK
Lisa Wise Consulting, Inc. (LWC)
February 15, 2022
This on-call/contract planner assistance scope of work is based on LWC’s understanding of the Town of Mammoth Lakes’ (Town’s) temporary need for additional staff capacity, specifically related to the Mammoth Mountain Ski Area (MMSA) Main Lodge development project. LWC is uniquely qualified to provide this assistance because Jen Murillo, Director, worked for the Town’s Community and Economic Development Department (CEDD) for over 10 years and is familiar with the Town’s planning policies, zoning code, and permit review procedures.

MAMMOTH MOUNTAIN SKI AREA (MMSA) MAIN LODGE DEVELOPMENT LWC will provide project management services for the MMSA Main Lodge development, including:
• Coordinate and participate in regular meetings with the USFS, MMSA team, and Town team, including the Town’s other consultants for this project (e.g., public works/engineering, financial, etc.).
• Review submittal materials including CEQA/NEPA consultant deliverables, route to appropriate parties, and prepare comment letters.
• Prepare for and conduct review of the project with the Development Review Committee (DRC).
• Prepare a community engagement plan/process outlining engagement tasks/events and responsible parties (i.e., Town versus applicant).
• Prepare materials and assist in the facilitation of any community outreach meetings on the project.
• Prepare staff reports and presentations for any Planning and Economic Development Commission (PEDC) and Town Council workshops, meetings, or hearings on the project.
• Prepare staff reports and presentations for any Advisory Design Panel (ADP) meetings on the project.
• Coordinate via teleconference and email with the applicant and Town staff.

TOWN OF MAMMOTH LAKES SCOPE OF WORK – 2022 | LISA WISE CONSULTING, INC. | 2

ASSUMPTIONS
• LWC’s attendance at meetings will be virtual. In person meetings may be scheduled as mutually agreed upon by both LWC and the Town. For in person meetings, LWC travel expenses will be charged in addition to time spent (see attached billable rates). • LWC will have access to the CEDD file server.
• The Town will be responsible for public noticing.
• Jen Murillo, LWC Director, will be assigned to this work.

2022 RATES
The table below lists hourly rates per staff level.

Staff Level Hourly Rate
Principal $285
Director $245
Senior Associate $195
Lead Associate $165
Associate $155
983 OSOS STREET, SAN LUIS OBISPO, CA 93401 | (805) 595 1345 | LISAWISECONSULTING.COM | 1

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Approve and adopt the Resolution establishing delegation of authority as a contracting agency of the California Public Employees’ Retirement System (CalPERS) to the office/position of Town Manager.

Council Meeting Date: 3/16/2022
Prepared by: Amanda Pelham, Human Resources Manager
Recommended Motion: Approve the Resolution establishing delegation of authority as a contracting agency of CalPERS to the office/position of Town Manager.

Summary: The Town has a need to establish a delegation of authority in order to expedite the process of responding to inquiries, pending retirement applications, and other requests as necessary as a contracting agency of the California Public Employees’ Retirement System. Under Government Code section(s) 21173, 21152 (c), and 21156, it is therefore necessary and appropriate to establish delegation of authority to the office/position of Town Manager.

RESOLUTION NO. 22--XX

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF MAMMOTH

LAKES, STATE OF CALIFORNIA, ESTABLISHING DELEGATION OF AUTHORITY AS A CONTRACTING AGENCY OF THE CALIFORNIA PUBLIC EMPLOYEES’

RETIREMENT SYSTEM
WHEREAS, the Town of Mammoth Lakes (herein referred to as Agency) is a contracting agency of the California Public Employees’ Retirement System (CalPERS); and WHEREAS, the Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which they are classified as a local safety member, is disabled for purposes of the Public Employees’ Retirement Law and such disability is “industrial” within the definition of such Law; and WHEREAS, the Town of Mammoth Lakes has determined upon legal advice that it may delegate authority under Government Code section 21173 to make such determinations to the incumbent of the office/position of Town Manager.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF MAMMOTH LAKES AS FOLLOWS:

The Town Council does hereby delegate to the incumbent of the office/position of Town Manager, authority to make application on behalf of the Agency pursuant to Government Code section 21152 (c) for disability retirement of all employees and to initiate requests for reinstatement of such employees who are retired for disability; and BE IT FURTHER RESOLVED that the Town Council does hereby delegate to the incumbent of the office/position of Town Manager authority to make determinations of disability on behalf of the Agency under Government Code section 21156 and whether such disability is industrial and to certify such determination and all other necessary information to the California Public Employees’ Retirement System.

APPROVED AND ADOPTED THIS 16TH DAY OF MARCH 2022.
_________________________________
LYNDA SALCIDO, Mayor
ATTEST:
__________________________
JAMIE GRAY, Town Clerk

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Accept the Town’s 2020-21 Independent Auditor’s Report.

Council Meeting Date: 3/16/2022
Prepared by: Rob Patterson, Administrative Services / Finance Director Recommended Motion: Accept the Town’s 2020-21 Independent Auditor’s Report. as presented.

Summary: Each year the Town is required to have its financial records audited by an outside, independent auditor. Our audit has been completed and the auditor has issued an unqualified opinion on our financial reports. An unqualified opinion is an independent auditor’s judgement that an entity’s financial statements are fairly and appropriately presented, without any identified exceptions, and in compliance with generally accepted accounting principles (GAAP). The audit is an important part of the Town’s financial reporting process. The Audit is filed with required reporting agencies and is a source of information used by outside agencies such as Standard & Poor’s in review of the Town’s credit worthiness, our current bond ratings, and any future debt issuances. The Audit complies with the federal requirements to provide a “Single Audit Report” regarding compliance with defined federal grant awards. The audit report for fiscal year ending June 30, 2021 is presented for Town Council review, comment, and acceptance.

TOWN OF MAMMOTH LAKES
California
Annual Financial Report
June 30, 2021

TOWN OF MAMMOTH LAKES
Table of Contents
INDEPENDENT AUDITOR’S REPORT .................................................................................................... 1-2 MANAGEMENT’S DISCUSSION AND ANALYSIS (unaudited)
Required Supplementary Information, as prepared by management .................................................... 3-9

GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position.........................................................................................................................10 Statement of Activities ..............................................................................................................................11

FUND FINANCIAL STATEMENTS
Governmental Funds
Balance Sheet - Governmental Funds .....................................................................................................12 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ...........................................................................................................13 Statement of Revenue, Expenditures, and Change
in Fund Balances - Governmental Funds .............................................................................................14 Reconciliation of the Statement of Revenue, Expenditures, and Change in Fund Balances of Governmental Funds to the Statement of Activities.................................................15 Proprietary Funds
Statement of Net Position.........................................................................................................................16 Statement of Revenue, Expenses, and Change in Net Position..............................................................17 Statement of Cash Flows .........................................................................................................................18 Agency Funds
Statement of Fiduciary Assets and Liabilities - Agency Funds ................................................................19 NOTES TO FINANCIAL STATEMENTS .............................................................................................. 20-51 REQUIRED SUPPLEMENTARY INFORMATION (unaudited)
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan ........................................................ 52-53 Single Employer Defined Benefit Pension Plan ................................................................................. 54-55 Other Postemployment Benefits Plan (OPEB).........................................................................................56 Budgetary Comparison Information.................................................................................................... 57-62

OTHER SUPPLEMENTARY INFORMATION
Nonmajor Funds Financial Statements
Combining Balance Sheet .................................................................................................................. 63-64 Combining Statement of Revenue, Expenditures, and Change in Fund Balances............................ 65-66 SINGLE AUDIT REPORT ............................................................................................................Appendix A

1 MARCELLO & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS
__________________________________________________________________________________ 8715 Seville Circle / Granite Bay, California 95746-5823

INDEPENDENT AUDITOR'S REPORT
Honorable Mayor
Members of the Town Council
Town of Mammoth Lakes, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mammoth Lakes, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents.

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

Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mammoth Lakes, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

2 Honorable Mayor
Members of the Town Council
Town of Mammoth Lakes, California
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that (1) management’s discussion and analysis, (2) pension plan liability and contributions schedules, (3) other postemployment benefits plan total liability, net position, and net liability schedules, and (4) the respective budgetary comparison information of the major funds, as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historic context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Town of Mammoth Lakes’ basic financial statements. The combining nonmajor governmental funds financial statements are presented for purposes of additional analysis and are not a required part of the financial statements. The combining nonmajor funds financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor funds financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our reports dated November 5, 2021 on our consideration of the internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of those reports are to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance.

Marcello & Company
Certified Public Accountants
Granite Bay, California
November 5, 2021

MANAGEMENT’S DISCUSSION & ANALYSIS
As Prepared by Management
(unaudited)

3 MANAGEMENT’S DISCUSSION AND ANALYSIS
The Discussion and Analysis of the Town of Mammoth Lakes’ financial performance for the fiscal year ending June 30, 2021, provides an analysis of the Town’s overall financial position and municipal operations. It is intended to assist readers in evaluating the Town’s finances and provides a discussion of significant changes that affected various funding sources, including significant variances from the approved budget. In addition, it describes the activities during the year related to capital assets and long-term debt. We end our Discussion and Analysis with a description of currently known facts, decisions, and conditions that are expected to have a significant effect on our financial position and operations. This document is intended to be read in conjunction with the Town’s financial statements.

The Statement of Net Position and the Statement of Activities A frequently asked question about the Town’s finances: “Is the Town as a whole better or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the Town as a whole and about its activities in a way that answers this question. These statements include all the Town’s assets and liabilities using the accrual basis of accounting; this is similar to the accounting used by most private sector companies.

These two statements report the Town’s net position at fiscal year-end and financial activities for the fiscal year. The net position is the difference between assets and liabilities, which is one way to measure the Town’s financial health or position. Over time, increases or decreases in the Town’s net position is an indication of whether its financial health is improving or deteriorating. It is important to remember this measure of financial health considers all the Town’s assets, including street infrastructure, storm drainage, and streetlights. While these assets are valuable to the Town, they are not always available for immediate sale to fund other Town priorities. Furthermore, the depreciation of these assets is recorded as a non-cash expense in the Statement of Activities and can be confusing if the goal of the reader is to follow the flow of cash and expenditures. Hence why the Fund Financial Statements continue to be an important part of the Town’s financial overview and are presented after the Statement of Activities.

In both the Statement of Net Position and the Statement of Activities, the Town’s activities are separated as follows:

Governmental Activities: Almost all of the Town’s services are reported in this category, including general administration (Town Manager, Town Clerk, personnel, finance, etc.), police protection, public works, tourism and recreation, and community and economic development.

Transient occupancy tax, sales tax, property taxes, other taxes, interest income, grants, intergovernmental revenue and service charges provide the financing for these activities. The Statement of Net Position also includes the value of capital assets (historic cost net of depreciation, and future debt payments) and the assets and liabilities of the internal service funds. The Statement of Activities includes depreciation expense and records the activity in the internal service funds on the accrual basis of accounting. Therefore, significant differences from the Fund Financial Statements exist.

Office of Administrative Services /
Finance Director
P.O. Box 1609, Mammoth Lakes, CA, 93546
(760) 965-3661
www.townofmammothlakes.ca.gov

4 Business-Type Activities: The Town’s Airport charges fees to customers to cover certain services the Airport provides.

The Town also operates the Long Valley Mineral Pit as a business-type activity, charging customers for the cost of services (disposal of clean materials).

Fund Financial Statements
The Fund Financial Statements provide detailed information only about the most significant funds, rather than the Town as a whole. Some funds are required to be established by state law and by bond covenants. In addition, management established several other funds to help control and manage money for purposes and to show that we are meeting legal requirements in the use of certain taxes, grants, and other resources. The Town’s two types of funds are governmental and proprietary.

Governmental Funds: Most of the Town’s basic services are reported in governmental funds, which focus on the flow of money in and out and the balances left at year-end that are available for spending. These funds are reported using an accounting method called “modified accrual accounting” which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Town’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the Town’s programs.

There is a reconciliation of the significant differences between the Governmental Funds Balance Sheet and the Statement of Net Position. These differences are unavoidable because by definition, the reports are looking at different financial activities. The two reports provide different perspectives on the Town’s finances, both of which are considered beneficial to financial statement users.

Proprietary (Enterprise) Funds: When the Town manages a functional area on a business basis with specific charges to customers for services and accounts for all revenue, assets, and liabilities separately, this activity is generally reported in proprietary funds. Proprietary funds, such the Town’s enterprise funds (Airport and Long Valley Mineral Pit) are reported in the Statement of Net Position and the Statement of Activities as business-type activities. Other reports, such as the Statement of Cash Flows, provide more detail and additional information.

Reporting the Town’s Fiduciary Responsibilities
The Town is the trustee, or fiduciary, for certain funds held on behalf of developers and assessment districts. The Town’s Statement of Fiduciary Assets and Liabilities reflects these fiduciary activities which are excluded from the Town’s other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring the assets reported in these funds are used for their intended purposes.

Financial Analysis of the Town as a Whole
Net Position: A condensed presentation of the Town’s net position as shown in the following table totals $90.1 million as of June 30, 2021.

5 By far, the largest portion of the net position reflects the Town’s investment in capital assets (e.g., land, buildings, streets, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. These capital assets are used to provide services to citizens and are therefore not available for future spending.

6 General Government Functions
The revenue and expenditures for the governmental and business-type activities are summarized in the following table:

Internal Service Funds
Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town, or to other government units on a cost reimbursement basis.

1. The Town garage motor pool is operated as an internal service fund. Services provided by the garage are charged to other governmental agencies that have contracted with the Town to receive garage motor pool services such as fuel and vehicle maintenance, in addition to services the garage provides to individual Town departments.

7 2. The internal service fund is also used to account for purchases of vehicles and equipment when adequate funds have been accumulated and replacement is necessary. The Town also uses an internal service fund to account for certain insurance and benefit programs offered to employees. Premiums are collected from the employee or the department, depending on the benefit, and paid to the internal service fund, which, in turn, processes certain medical reimbursements and premiums.

Enterprise Funds
Enterprise funds are used to finance and account for the acquisition, operation, and maintenance of Town facilities and services that are entirely or predominantly self-supporting from user charges. Enterprise operations are accounted for in such a manner as to show a profit or loss as is reported in comparable private enterprises. As of June 30, 2021, the Town operated two enterprise funds, the Mammoth Yosemite Airport, and the Long Valley Mineral Pit on behalf of the US Forest Service.

Debt Administration
The Town issued Lease Revenue Bonds in the amount of $3,550,000 replacing the existing Certificates of Participation ($1,430,000) in order to construct a new Public Safety facility ($2,120,000) in 2015. Construction of the new Public Safety facility was completed in 2017. The debt is scheduled to mature in fiscal year 2029-30 and had an outstanding balance of $2,411,000 as of June 30, 2021.

In 2010, the Town lost their final appeal before the State Supreme Court related to litigation with a real estate developer for alleged breach of contract. The award for damages was $30 million plus attorney’s fees. The Town reached a settlement with the developer in November 2012 in the amount of $29,500,434 payable over 24 years. In October 2018, the Town refunded the award by issuing Obligation Bonds at a reduced interest rate. The outstanding balance on June 30, 2021 was $20,905,000.

In 2017, the Town entered into an installment sales agreement in the amount of $5,550,000 for the initial phase of construction for a new Community Recreation Center. The outstanding balance on June 30, 2021 was $3,975,000.

Outlook for the Future
The Town is looking to rebuild and enhance core services which were reduced in the prior fiscal year due to the COVID-19 pandemic. Much of the budget process for the coming year is built around a return to full scale programming and a focus on enhanced visitor experience. On an annual basis, the Town sets budget expenditure to meet identified needs that will provide improved amenities or adjust our core services where impacts are being felt.

Last year the Town Council approved a set of Strategic Priorities and Key Objectives that were designed to address the needs of our community. Funding directed at achieving these priorities was provided in the coming fiscal year budget and staff work program is aligned with these directives.

The biggest challenge that faces the town of Mammoth Lakes is a shortage of affordable housing to support our residents and workers. This is one of the strategic priorities of Town Council and this year the Town allocated funding for housing efforts. “The Parcel” project grant funding and Town provided infrastructure funding, combined $20.6 million will be used to move the infrastructure development forward. A joint effort between Town and our development partner was successful in securing $38.1 million from the California Housing Accelerator Award to be used for phase 1 of “The Parcel Affordable Housing Project” for the construction of 80 units with a goal to have new affordable housing available in 2023. The Parcel project is envisioned to be developed with up to 450 permanently affordable housing units, to be constructed over multiple phases. In addition to The Parcel project, the Town has numerous residential and commercial projects that have been approved by the Planning and Economic Development Commission. Below is a summary of the projects that have recently been submitted, approved, or completed.

Commercial Projects:

8 Five-Forty – The Five-Forty project includes a two-story vertical mixed-use commercial and residential building fronting Old Mammoth Road with six residential units behind, for a total of 13 residential units. The plan was approved in June 2019 and 12 of 13 units have been completed to date.

Mammoth Hotel – The Mammoth Hotel project is a complete renovation and remodel of the existing three-story Sierra Center Mall building to create a new four-story, 164 room boutique luxury hotel. The plan was approved in November 2019 with construction to tentatively begin summer 2022.

Limelight Hotel – The proposed condominium hotel project consists of 6 levels of hotel guest rooms and managed residences located above one level of subterranean / understructure parking. The project includes 151 hotel rooms and 15 residential units. The concept review was submitted December 2020 and is currently working through the entitlement application process. No estimated construction date has been set.

Residence Inn – The proposed project “Residence Inn boutique hotel by Marriot”, consists of a four-story, condominium hotel with 101 guest rooms, and two levels of understructure parking. An Entitlement Application for the condominium hotel use was submitted in September 2021 and is currently working through the approval process.

No estimated construction date has been set
Sierra Nevada Resort Redevelopment – The proposed project includes interior and exterior improvements to the existing 149-unit hotel and Rafters restaurant, the construction of 30 new resort cabin units, an expanded event / meeting space. The Entitlement Application was submitted in January 2022 and is currently working through the approval process. No estimated construction date has been set.

Residential Projects:

Hillside Highlands – The Hillside Highlands project consists of three triplex structures; each unit will have approximately 3,000 square feet of habitable area and 3-4 bedrooms. This project was approved in May 2016 and the construction was completed in 2021.

Obsidian – The project calls for 20 townhome lots (10 duplexes). There are two designs approved and each unit will be three-stories tall with approximately 2,300 square feet of habitable area. The project was approved in February 2016 and 6 of 10 duplexes were completed as of November 2021. Construction began for the remaining four duplexes in 2021.

Snowcreek VII – The Snowcreek VII project consists of 118 condominium units within four different building designs.

The project is broken up into three phases and Phase 1 has been completed and included 8 units within three multi-unit buildings. Phase II has been completed and includes 17 units within 6 multi-unit buildings. Phase III is under construction and includes 32 units within 11 multi-unit buildings.

Gray Bear I, II, III – The Gray Bear residential subdivision includes 45 single-family residential lots adjacent to the Sierra Star Golf Course. The project was approved July 2014 – January 2017 and to date 40 lots have been completed with 3 lots under construction.

Lakeview Townhomes – The proposed Lakeview Townhomes project is a six-unit multi-family planned unit development to be constructed in the Specialty Lodging zone of the North Village Specific Plan area. All three duplex structures are three stories in height and each unit features three bedrooms and three bathrooms. The project was approved in July 2020 and construction began in 2021.

Chaparral Townhomes – The proposed Chaparral Townhomes project is a six-unit multi-family planned unit development. The units are three stories high with garages on the first level. The project was approved in May 2020 with Entitlement through May 2022. No estimated date of construction has been set.

The Town has committed a substantial investment in recreational amenities and long-term coordination with federal, state, and other partners. The Town’s Parks and Recreation Department provides a wide variety of municipal/community recreational programs and facilities. The department coordinates with numerous community sports organizations, provides direct services and programs, supports contracted programs, works with volunteer groups to enhance facilities and services, and maintains all Town recreational facilities. Programs and services extend through the year. This year represents the first year of full operation of the new DiscGolf Course put in place in partnership with local groups and Inyo National Forest. The CIP includes the ongoing construction of the Community Recreation Center which will enhance and expand the Town’s recreational programs and services. The program of work includes the reconstruction of a significant portion of the Town Loop Multi Use Path (MUP) system, and design work for new MUP segments. Plans for a new “dog park” are proceeding. The Town is working with LADWP to expand the Whitmore Park lease area to at least 50 acres to support a Prop 68 grant to improve this regional park. The

9 CIP continues funding to invest in deferred maintenance of our recreational facilities. The Town’s Parks and Recreation programs, services and facilities are coordinated through the Town Council’s appointed Recreation Commission.

The budget for FY21-22 includes the creation of a new Town Office of Outdoor Recreation. The Office is proposed to be staffed with a new position. The primary focus is to improve the planning, coordination, and engagement with the Inyo National Forest and other partners. The Town’s economic base is directly tied to the attraction of visitors to our public lands. The coordination between the Town and federal land managers has grown to the point of out stripping the Town’s current capacity. At the same time the importance of the relationship has grown substantially. The need for management level ongoing engagement to address visitor-based improvements, information and services is becoming a critical community need. This is reflected in discussions on fire concerns, trash, impacts on trails and other amenities, snow management, expanded Town amenities on Forest Service lands, transit connections and services, housing, overall land management, and partner opportunities for capital investments.

The Town Council continues to remain conservative in its budgeting approach, with the goal of long-term fiscal sustainability. The Town is committed to maintaining current service levels, increasing reserve levels tied to sustainable funding, identifying funds for current and future capital projects, and investing in one-time strategic planning processes. The Town also remains committed to the reserve policy updated last year. The update included establishing a baseline revenue that is updated on an annual basis. This baseline would prevent a reduction in expected reserve amounts, should there be an economic downturn and lower revenue expectations. The baseline is updated as a part of the budget process and the current rate is $24,500,000. In addition to establishing a baseline revenue, Town Council adjusted the rates for each reserve element. The Reserve for Economic Uncertainty (REU) was raised from 16% of baseline revenue to 20% of baseline revenue and for FY21-22 bringing the required balance to $4,900,000.

The Operating Reserve (OR) was subsequently lowered from 9% of baseline revenue to 5% or $1,125,000. These adjustments retained the 25% of baseline revenue of the previous policy but moved more of the reserve to the more secure REU. Both of these reserve elements are fully funded for FY21-22. The Town also added a new reserve that will cover 50% of the debt service payments covered by the General Fund. This enhancement was done to provide additional security in the event of an economic downturn and to provide a source to cover the Town’s debts. This new Debt Reserve (DR) is fully funded for FY21-22 with $1,100,000 in this reserve element. The Town retained the annual $100,000 of contingency funding as part of the FY21-22 budget. All these reserve elements add security to the Town’s financial position as $7.225M are available for continuing operation of Town services In conclusion, the Town continues to position itself in a strong financial position through proven fiscal policy that will enable it to meet the needs of our community and deliver the core services provided by the Town. We anticipate keeping our reserves intact for future needs and while the duration and ultimate level of impact is undetermined, we are confident we have adequate funding to meet debt obligations, meet current level of operations, and to respond to our current health emergency while we return to normal operations.

Respectfully submitted,
Rob Patterson
Administrative Services/Finance Director

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Governmental Business-type
ASSETS Activities Activities Total
Current Assets
Cash and investments $ 52,413,494 $ 1,139,888 $ 53,553,382 Receivables 3,915,097 255,652 4,170,749
Prepaid expenses 614,352 3,858 618,210
Restricted cash 317,008 - 317,008
Total current assets 57,259,951 1,399,398 58,659,349
Noncurrent Assets
Notes receivable 11,476,816 - 11,476,816
Capital assets not being depreciated 20,613,294 544,316 21,157,610 Capital assets, net of depreciation 48,629,780 4,857,189 53,486,969 Total noncurrent assets 80,719,890 5,401,505 86,121,395 Total assets 137,979,841 6,800,903 144,780,744
Deferred Outflows of Resources
Deferred pension outflows 4,456,178 335,051 4,791,229
Deferred OPEB outflows - 12,734 12,734
Total assets and deferred outflows of resources 142,436,019 7,148,688 149,584,707

LIABILITIES
Current Liabilities
Payables 3,777,529 58,857 3,836,386
Accrued interest 133,773 - 133,773
Total current liabilities 3,911,302 58,857 3,970,159
Noncurrent liabilities
Due within one year 2,002,671 10,535 2,013,206
Due in more than one year 49,445,590 1,800,531 51,246,121 Total noncurrent liabilities 51,448,261 1,811,066 53,259,327 Total liabilities 55,359,563 1,869,923 57,229,486
Deferred Inflows of Resources
Deferred pension inflows 529,041 39,821 568,862
Deferred OPEB inflows 1,572,049 114,501 1,686,550
Total liabilities and deferred inflows of resources 57,460,653 2,024,245 59,484,898 Net Position
Net investment in capital assets 62,744,074 5,401,505 68,145,579 Restricted 24,067,189 - 24,067,189
Unrestricted (1,835,897) (277,062) (2,112,959)
Total net position $ 84,975,366 $ 5,124,443 $ 90,099,809 The accompanying notes to financial statements are an integral part of this financial statement

TOWN OF MAMMOTH LAKES
Government-wide Financial Statements
Statement of Net Position
June 30, 2021
Primary Government

Operating Capital
Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total Governmental Activities
$ 3,404,252 $ 596,111 $ 357,196 $ - $ (2,450,945) $ (2,450,945) 4,487,298 99,531 160,360 - (4,227,407) (4,227,407)
7,319,243 107,419 - - (7,211,824) (7,211,824)
3,671,043 165,304 675,520 - (2,830,219) (2,830,219)
3,202,125 228,816 2,604,319 303,567 (65,423) (65,423)
701,908 185,556 - - (516,352) (516,352)
1,301,238 - - - (1,301,238) (1,301,238)
5,396,912 - - - (5,396,912) (5,396,912)
1,070,278 - - - (1,070,278) (1,070,278)
3,851,394 - - - (3,851,394) (3,851,394)
34,405,691 1,382,737 3,797,395 303,567 (28,921,992) (28,921,992) Business-type Activities
Airport 1,878,434 152,995 780,979 1,312,047 $ 367,587 367,587 Landfill management 3,529 14,690 - - 11,161 11,161
1,881,963 167,685 780,979 1,312,047 378,748 378,748
$ 36,287,654 $1,550,422 $ 4,578,374 $ 1,615,614 (28,921,992) 378,748 (28,543,244) General Revenue
16,945,645 - 16,945,645
4,572,245 - 4,572,245
2,513,299 - 2,513,299
4,449,153 - 4,449,153
1,640,496 - 1,640,496
856,613 - 856,613
527,862 - 527,862
984,344 - 984,344
Licenses & permits 957,809 - 957,809
146,028 - 146,028
231,162 4,624 235,786
534,652 6,325 540,977
(125,825) 100,000 (25,825)
34,233,483 110,949 34,344,432
5,311,491 489,697 5,801,188
79,663,875 4,634,746 84,298,621
$ 84,975,366 $ 5,124,443 $ 90,099,809
Net (Expense) Revenue and Change in Net Position

TOWN OF MAMMOTH LAKES
Government-wide Financial Statements
Statement of Activities
Year Ended June 30, 2021
Program Revenue
Net Position - end of year
Change in Net Position
The accompanying notes to financial statements are an integral part of this financial statement Transient occupancy
Business taxes
Measure R tax
Measure U tax
Other revenue
Transfers in (out)
Investment earnings
Sales tax
Tourism tax
Property tax
Franchise fees
Fines & forfeitures
Functions/Programs
Net Position - beginning
Transportation and transit
Capital projects
Interest expense
Depreciation expense
General gov/Community support
Public safety
Tourism, parks and recreation
Community development
Public works / streets
Total business-type activities
Total primary government
Total governmental activities
Community support

FUND FINANCIAL STATEMENTS

Tourism Housing &
Capital Business Community Gas Other Total
General Projects Improvement Development Tax Governmental Governmental Fund Fund District Fund Fund Funds Funds
Assets
Cash and investments $ 17,982,578 $ 12,681,097 $ - $ 2,410,147 $ 2,758,029 $ 7,337,017 $ 43,168,868 Receivables 2,820,273 20,835 351,149 1,134 16,927 604,030 3,814,348 Notes receivable - - - 11,476,816 - - 11,476,816
Interfund loans - - - - - - -
- - - - - 317,008 317,008
Total assets $ 20,802,851 $ 12,701,932 $ 351,149 $ 13,888,097 $ 2,774,956 $ 8,258,055 $ 58,777,040 Liabilities
Payables $ 3,719,408 $ 15,994 $ 52 $ 69 $ 8,649 $ 9,245 $ 3,753,417 Cash overdraft - - 322,584 - - 77,865 400,449
Deferred revenue - - - 11,476,816 - - 11,476,816
2,491,207 - - - - - 2,491,207
Total liabilities 6,210,615 15,994 322,636 11,476,885 8,649 87,110 18,121,889 Fund Balances
Restricted - 12,685,938 28,513 2,411,212 2,766,307 6,175,219 24,067,189 Committed 10,794,758 - - - - 2,012,917 12,807,675
Assigned 534,041 - - - - - 534,041
Unassigned 3,263,437 - - - - (17,191) 3,246,246
Total fund balances 14,592,236 12,685,938 28,513 2,411,212 2,766,307 8,170,945 40,655,151 Total liabilities and
$ 20,802,851 $ 12,701,932 $ 351,149 $ 13,888,097 $ 2,774,956 $ 8,258,055 $ 58,777,040

TOWN OF MAMMOTH LAKES
Balance Sheet
Governmental Funds
June 30, 2021
fund balances
The accompanying notes to financial statements are an integral part of this financial statement Interfund loans
Restricted cash

$ 40,655,151
are different because of the following:
not financial resources and therefore, are not reported in the funds balance sheet. 69,243,074 funds financial statements until collected, but is recognized in the government-wide financial statements the year incurred. 11,476,816
therefore, are not reported in the governmental funds balance sheet:

Debt and obligations (51,448,261)
Accrued interest (133,773)
employee benefits activities to individual funds. Those assets and liabilities are included in the statement of net position governmental activities. 15,597,945 financial statements but are recognized in the government-wide financial statements. (415,586) Net Position of governmental activities (page 10) $ 84,975,366 The accompanying notes to financial statements are an integral part of this financial statement (5) Deferred inflows and outflows of resources are not recognized in the governmental funds

TOWN OF MAMMOTH LAKES
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2021
Amounts reported in the governmental activities column in the statement of net position Total fund balances of governmental funds (page 12)
(1) Capital asset acquisitions, dispositions and depreciation used in governmental activities are (3) Long-term debt and obligations are not due and payable in the current period and (2) Deferred revenue related to long-term notes receivable is not recognized in the governmental (4) Internal service funds are used by management to charge the cost of the motor pool and

Tourism Housing &
Capital Business Community Gas Other Total
General Projects Improvement Development Tax Governmental Governmental Fund Fund District Fund Fund Funds Funds
Revenue
Taxes and assessments $ 25,543,395 $ - $ 4,449,153 $ - $ - $ 2,497,109 $ 32,489,657 Licenses and permits 957,809 - - - - - 957,809
Intergovernmental 546,939 303,567 - 675,520 2,534,600 40,336 4,100,962 Charge for services 683,693 - - - 48,455 650,588 1,382,736 Fines and forfeitures 146,028 - - - - - 146,028
Use of money and property 140,474 - 1,748 2,712 5,416 80,812 231,162 Other revenue 31,466 132,246 - 243,873 16,602 110,466 534,653 Total revenue 28,049,804 435,813 4,450,901 922,105 2,605,073 3,379,311 39,843,007 Expenditures
Current -
General government 4,629,269 - - - - - 4,629,269
Public safety 5,070,267 - - - - - 5,070,267
Tourism, parks and recreation 3,616,240 - 4,445,936 - - 927,357 8,989,533 Community development 3,021,455 - - 651,359 - 316,379 3,989,193 Public works / streets - - - - 3,973,819 143,962 4,117,781 Transportation and transit 954,723 - - - - - 954,723
Community support 1,301,238 - - - - - 1,301,238
- 2,843,471 - - - - 2,843,471
- - - - - 2,799,938 2,799,938
Total expenditures 18,593,192 2,843,471 4,445,936 651,359 3,973,819 4,187,636 34,695,413 9,456,612 (2,407,658) 4,965 270,746 (1,368,746) (808,325) 5,147,594 Other Financing Sources (Uses)
Transfers in 1,705,807 1,840,278 - 1,661,000 2,695,390 4,871,119 12,773,594 Transfers (out) (9,387,681) (181,080) - - (126,367) (3,204,292) (12,899,420) Total other sources (uses) (7,681,874) 1,659,198 - 1,661,000 2,569,023 1,666,827 (125,826) Change in Fund Balances 1,774,738 (748,460) 4,965 1,931,746 1,200,277 858,502 5,021,768 Fund Balances - beginning 12,817,498 13,434,398 23,548 479,466 1,566,030 7,312,443 35,633,383 Fund Balances - end of year $ 14,592,236 $ 12,685,938 $ 28,513 $ 2,411,212 $ 2,766,307 $ 8,170,945 $ 40,655,151 The accompanying notes to financial statements are an integral part of this financial statement Excess Revenue over (under)

TOWN OF MAMMOTH LAKES
Governmental Funds
Year Ended June 30, 2021
Expenditures
Debt service
Statement of Revenue, Expenditures, and Change in Fund Balances Capital projects

$ 5,021,768
Amounts reported for governmental activities in the statement of activities are different because of the following:
of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense in the current year. (1,223,626)
(2) Proceeds from new long-term debt provide current resources in the funds financial statements but have no effect on net position in the government-wide financials. - resources of government funds. However, in the government-wide financials these transactions have no effect on net position. 1,720,000
(4) Certain deferred revenue and deferred expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as revenue or expenditures in governmental funds. (206,651) $ 5,311,491

TOWN OF MAMMOTH LAKES
Reconciliation of the Statement of Revenue, Expenditures, and Change in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2021
(1) Governmental funds report capital outlays as expenditures. However, in the statement Change in net position of governmental activities (page 11) (3) The repayment of the principal portion of long-term debt consumes the current financial Change in fund balances - governmental funds (page 14)
The accompanying notes to financial statements are an integral part of this financial statement

Total Total
Landfill Enterprise Vehicle Self- Internal
Assets and Deferred Outflows Airport Management Funds Service Insurance Service Current assets:

Cash and investments $ 967,321 $ 172,567 $ 1,139,888 $ 8,797,580 $ 847,495 $ 9,645,075 Receivables 255,534 118 255,652 100,749 - 100,749
Prepaid expenses 3,858 - 3,858 614,352 - 614,352
- - - 2,491,207 - 2,491,207
Total current assets 1,226,713 172,685 1,399,398 12,003,888 847,495 12,851,383 Noncurrent assets:

Capital assets not being depreciated 544,316 - 544,316 - - - Capital assets, net of depreciation 4,857,189 - 4,857,189 2,820,661 - 2,820,661 Total noncurrent assets 5,401,505 - 5,401,505 2,820,661 - 2,820,661 Total assets 6,628,218 172,685 6,800,903 14,824,549 847,495 15,672,044 Deferred outflows of resources:

Deferred pension outflows 335,051 - 335,051 - - -
Deferred OPEB outflows 12,734 - 12,734 - - -
Total deferred outflows 347,785 - 347,785 - - -
Total assets and deferrals 6,976,003 172,685 7,148,688 14,824,549 847,495 15,672,044 Liabilities and Deferred Inflows
58,781 76 58,857 20,400 3,712 24,112
Noncurrent liabilities:

Due in one year 10,535 - 10,535 12,496 - 12,496
Due after one year 1,800,531 - 1,800,531 37,491 - 37,491 Total noncurrent liabilities 1,811,066 - 1,811,066 49,987 - 49,987 Total liabilities 1,869,847 76 1,869,923 70,387 3,712 74,099 Deferred inflows of resources:

Deferred pension inflows 39,821 - 39,821 - - -
Deferred OPEB inflows 114,501 - 114,501 - - -
Total deferred inflows 154,322 - 154,322 - - -
Total liabilities and deferrals 2,024,169 76 2,024,245 70,387 3,712 74,099 Net Position
5,401,505 - 5,401,505 2,820,661 - 2,820,661
(449,671) 172,609 (277,062) 11,933,501 843,783 12,777,284 Total net position $ 4,951,834 $ 172,609 $ 5,124,443 $ 14,754,162 $ 843,783 $ 15,597,945

TOWN OF MAMMOTH LAKES
Business-type Activities
Statement of Net Position
Proprietary Funds
June 30, 2021
Internal Service Funds
Governmental Activities
The accompanying notes to financial statements are an integral part of this financial statement Net investment in capital assets
Unrestricted
Interfund loans
Current liabilities: Payables

Total Total
Landfill Enterprise Vehicle Self- Internal
Airport Management Funds Service Insurance Service
Operating Revenue
Charge for services $ 152,995 $ 14,690 $ 167,685 $ 1,916,810 $ 322,335 $ 2,239,145 Operating grant 780,979 - 780,979 - - -
Total revenue 933,974 14,690 948,664 1,916,810 322,335 2,239,145 Operating Expenses
Personnel costs 978,726 3,529 982,255 874,760 - 874,760 Operations and maintenance 465,394 - 465,394 642,736 - 642,736 Benefit claims - - - - 219,880 219,880
Depreciation 215,691 - 215,691 477,879 - 477,879
Total operating expenses 1,659,811 3,529 1,663,340 1,995,375 219,880 2,215,255 (725,837) 11,161 (714,676) (78,565) 102,455 23,890
Nonoperating Revenue (Expenses)
Capital grants 1,312,047 - 1,312,047 - - -
Capital projects (218,623) - (218,623) - - -
Investment earnings 3,800 824 4,624 40,326 - 40,326
Other nonoperating revenue 6,325 - 6,325 4,294 - 4,294
1,103,549 824 1,104,373 44,620 - 44,620
Income before Transfers 377,712 11,985 389,697 (33,945) 102,455 68,510 Transfers in 100,000 - 100,000 - - -
Transfers (out) - - - (75,404) - (75,404)
477,712 11,985 489,697 (109,349) 102,455 (6,894)
4,474,122 160,624 4,634,746 14,863,511 741,328 15,604,839 $ 4,951,834 $ 172,609 $ 5,124,443 $ 14,754,162 $ 843,783 $ 15,597,945 Internal Service Funds
Governmental Activities
The accompanying notes to financial statements are an integral part of this financial statement

TOWN OF MAMMOTH LAKES
Statement of Revenue, Expenses, and Change in Net Position Proprietary Funds
Year Ended June 30, 2021
Business-type Activities
Change in Net Position
Net position - beginning
Net position - end of year
Operating Income (Loss)
Total nonoperating

Total Total
Landfill Enterprise Vehicle Self- Internal
Airport Management Funds Service Insurance Service
Cash received: customers/operating grants $ 1,174,985 $ 15,075 $ 1,190,060 $ 1,958,780 $ 351,292 $ 2,310,072 Cash paid for personnel costs (978,726) (3,453) (982,179) (799,356) - (799,356) Cash paid for operations and maintenance (546,662) - (546,662) (713,369) - (713,369) Cash paid for benefit claims - - - - (216,677) (216,677) (350,403) 11,622 (338,781) 446,055 134,615 580,670
100,000 - 100,000 - - -
- - - (75,404) - (75,404)
100,000 - 100,000 (75,404) - (75,404)
Capital & Related Financing Activities
Capital grants received 1,312,047 - 1,312,047 - - -
Other cash received 6,325 - 6,325 4,294 - 4,294
Purchase of capital assets (930,207) - (930,207) - - -
388,165 - 388,165 4,294 - 4,294
Investment earnings 3,800 824 4,624 40,326 - 40,326
141,562 12,446 154,008 415,271 134,615 549,886
Cash and cash equivalents - beginning 825,759 160,121 985,880 8,382,309 712,880 9,095,189 Cash and cash equivalents - end of year $ 967,321 $ 172,567 $ 1,139,888 $ 8,797,580 $ 847,495 $ 9,645,075 Operating Income (Loss) (page 17) $ (725,837) $ 11,161 $ (714,676) $ (78,565) $ 102,455 $ 23,890 Reconciliation adjustments:

Add Depreciation, a noncash expense 215,691 - 215,691 477,879 - 477,879 241,011 385 241,396 75,404 28,957 104,361
(27,883) 76 (27,807) (28,663) 3,203 (25,460)
Net change in pension & OPEB balances (53,385) - (53,385) - - - $ (350,403) $ 11,622 $ (338,781) $ 446,055 $ 134,615 $ 580,670 Transfers (out) to other funds
Transfers in from other funds

TOWN OF MAMMOTH LAKES
Statement of Cash Flows
Proprietary Funds

CASH FLOWS PROVIDED BY (USED FOR)
The accompanying notes to financial statements are an integral part of this financial statement Internal Service Funds
Year Ended June 30, 2021 Governmental Activities
(Increase) decrease in receivables
Increase (decrease) in payables
Business-type Activities
Net Increase (Decrease) in Cash
Net cash provided (used)
Net cash provided (used)
Net cash provided (used)
Operating Activities
Noncapital Financing Activities
Investing Activities
Operating Activities Analysis
Net cash provided (used)

Assets
Cash and investments $ 4,206,383
Accounts receivables 86,327
Cash with fiscal agent 130,137
Total assets $ 4,422,847
Liabilities
Accounts payable $ -
Assets held as agency for others 4,422,847
Total liabilities $ 4,422,847
The accompanying notes to financial statements are an integral part of this financial statem Statement of Fiduciary Assets and Liabilities

TOWN OF MAMMOTH LAKES
Agency Funds
June 30, 2021

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
20 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the Town.

Note 1 - Defining the Financial Reporting Entity
Note 2 - Significant Accounting Policies
Note 3 - Stewardship, Compliance, and Accountability
Note 4 - Cash and Investments
Note 5 - Commitments and Contingencies
Note 6 - Assessment District Debt
Note 7 - Capital Assets
Note 8 - Long-term Obligations
Note 9 - Interfund Balances
Note 10 - Interfund Transfers
Note 11 - Other Postemployment Benefits Plan (OPEB)
Note 12 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Note 13 - Single Employer Defined Benefit Pension Plan
Note 14 - Risk Management
Note 15 - Subsequent Events
Note 16 - New Pronouncements
Note 17 - Fund Balance Designations Section of the Balance Sheet

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
21 Note 1 - Defining the Financial Reporting Entity
The Town of Mammoth Lakes (the Town) was incorporated in 1985 under the laws of the State of California. Mammoth Lakes operates under a Council-Manager form of government. The Town provides municipal services to its citizens including police, public works, airport facilities, community development and general administrative support. These financial statements present the financial status of the Town.

The Town of Mammoth Lakes and the Mammoth Lakes Municipal Service Corporation comprise the reporting entity. Although these entities are legally separate from each other, they are presented on a blended basis as part of the primary government because their governing boards consist exclusively of all five members of the Town Council. These entities meet the Governmental Accounting Standards Board (GASB) criteria for inclusion within the Town's financial reports. The Corporation does not issue separate financial statements. Financial information for the Mammoth Lakes Municipal Service Corporation is blended with the Town of Mammoth Lakes’ financial statements. The Town has no discretely presented component units.

Mammoth Lakes Municipal Service Corporation was organized on August 1, 1989, pursuant to the Nonprofit Public Benefit Corporations Law of the State of California, solely for the purpose of providing assistance to the Town by acquiring, constructing, improving, developing and installing certain real and personal property together with appurtenances and appurtenant work for the use, benefit and enjoyment of the public. The Corporation was formed at the request of the Town to assist in lease financing of certain capital improvement projects. The Corporation's financial data and transactions are included within the Debt Service Fund. Oversight responsibility is determined by such criteria as financial interdependency, selection of governing authority and designation of management, budget control and the ability to significantly influence operations. Separate financial statements are not issued.

Note 2 - Significant Accounting Policies
The accounting policies of the Town conform to accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the Town are described as follows:

Financial Statements
The Town’s basic financial statements consist of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenue, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenue. Direct expenses are those that are clearly

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
22 identifiable with a specific function or segment. Program revenue includes (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenue are reported instead as general revenue. Expenses reported for functional activities include allocated indirect expenses.

Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Fund Accounting
The accounting system of the Town is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenue, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories.

A fund is considered major if it is the primary operation fund of the Town, or the government has determined that a fund is important to the financial statement user, or it meets the following criteria:
 Total assets, liabilities, revenue, or expenditures/expenses of that individual governmental fund or enterprise fund are at least 10% of the corresponding total for all funds of that category or type.  Total assets, liabilities, revenue, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.

The funds of the financial reporting entity are described below:

Governmental Fund Types
Governmental funds are those through which most general government functions typically are financed.

The Town maintains the following fund types:
• The General Fund is the Town’s primary operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes.
• Debt Service Funds are used to account for the accumulation of resources for, and the repayment of general long-term debt obligation payments for principal, interest and related costs. • Capital Projects Funds are used to account for financial resources to be used for the acquisition, improvements or construction of streets, infrastructure and major capital projects. • Proprietary Fund Types are used to account for activities that are similar to those found in the private sector. The measurement focus is upon determination of net income and capital maintenance. The following are the Town's two proprietary fund types:

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
23 (1) Enterprise Funds are established to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the Town is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Mammoth Yosemite Airport and the Long Valley Landfill are reported as enterprise funds. (2) Internal Service Funds are established to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town, and to other government units on a cost reimbursement basis. The Town’s purchasing of vehicles and equipment, maintenance of transportation vehicles, and the self-insurance employee benefit program, are reported as internal service funds. • Fiduciary Fund Types are used to account for assets held by the Town as a trustee or agent for individuals, private organizations, and other units of governments. The Town's funds included in this category are as follows:
(1) Expendable Trust Funds are accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting.

Expendable trust funds account for assets where both the principal and interest may be spent. (2) Agency Funds account for assets held by the Town as trustee or agent for individuals, private organizations, assessment districts, or other governmental units and/or other funds.

Major Funds
The following are the Town’s major funds this year:
 General Fund - this fund is the Town’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.  Capital Projects Fund - this fund is used to account for the acquisition, improvements or construction of the government’s streets, infrastructure, and major capital facilities, other than those financed by proprietary funds.
 Tourism Business Improvement District - this fund is used to account for restricted-use financial resources received from a voter approved tax, to help fund marketing and sales promotion efforts for Mammoth Lakes’ tourism businesses.
 Housing and Community Development Fund - this fund is used to account for restricted-use financial resources received from federal, state and county governments, for the purpose of providing affordable housing within the community.
 Gas Tax Fund – this fund is used to account for the proceeds of the state-wide voter approved tax on gasoline, which is collected by the State, and passed through to local governments for the purpose of streets and sidewalk construction and maintenance.

Measurement Focus
Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. The government-wide statement of net position and the statement of activities, and both governmental and business-type activities are presented using the economic resources measurement focus. The accounting objectives of the economic measurement focus are the

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
24 determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported.

In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used, as appropriate. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use “fund balance” as their measure of available spendable financial resources at the end of the period.

The proprietary fund utilizes an “economic resources” measurement focus. Proprietary fund equity is classified as net position.

Agency funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them.

Basis of Accounting
In the government-wide statement of net position, and in the statement of activities, both governmental and business-like activities are presented using the “accrual basis of accounting.” Under the accrual basis of accounting, revenue is recognized when earned, and expenses are recorded when the liability is incurred and the amount of obligation is ascertainable. Revenue, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

In the fund financial statements, governmental funds are presented on the “modified accrual basis of accounting.” Under this modified accrual basis of accounting, revenue is recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. Revenue which is susceptible to accrual includes property taxes and special assessments that are levied for and due for the fiscal year and collected within 60 days after year-end. Licenses, permits, fines, penalties, charges for services, and miscellaneous revenue are recorded as governmental fund type revenue when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to finance expenditures of the fiscal period. Grant revenue, which is normally reimbursements of expenses under contractual agreements, is recorded as a receivable when earned rather than when susceptible to accrual. Generally, this occurs when authorized expenditures are made under the grant program or contractual agreement. Expenditures are recognized when the fund liability is incurred, if measurable, except for unmatured interest on long-term debt in the governmental funds, which is recognized when due.

Proprietary funds use the “accrual basis of accounting” which records the financial effect on an enterprise of transactions and other events and circumstances that have cash consequences for an enterprise in the periods in which those transactions, events and circumstances occur rather than only when cash is received or paid by the enterprise.

Budgetary Data
General Budget Policies: the Town maintains budgetary controls of which the objective is to ensure compliance with legal provisions embodied in the annual budget approval by the Town Council.

Budgetary control for operations is maintained at the department level by individual funds. Budgetary control for capital improvement projects (i.e., project-length financial plans) is maintained at the individual

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
25 project level by fund. The Town’s budgeted expenditure authority lapses at the end of each fiscal year.

However, outstanding purchase order commitments or capital improvement projects may be reappropriated for the subsequent fiscal year upon Town Council approval.

Budget Basis of Accounting: budgets for governmental funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America as prescribed by the GASB and the AICPA. The Budgetary Comparison Schedule of the general fund presents comparisons of legally adopted budget amounts (both the original budget and final budget), and actual amounts, on the budgetary basis. The budgeting basis is substantially equivalent to the Town's accounting basis; thus no reconciliation between the two is considered necessary.

Other Accounting Policies
Cash and Investments
Cash and investments held in the Town’s investment pool are reported as cash and investments since “funds” can spend cash at any time without prior notice or penalty. All investments with fiscal agents are also considered cash equivalents if they are liquid. Investments are stated at fair value.

Cash and Cash Equivalents
For purposes of the statement of cash flows, the Town considers all highly liquid investments either: (1) with a maturity of three months or less when purchased to be cash equivalents or (2) collected within sixty days of the fiscal year end. Cash and cash equivalents are reported under the caption “cash and investments” on the statement of net position and balance sheet.

Receivables and Payables
Internal balances representing lending/borrowing transactions between funds outstanding at the end of the fiscal year are reported as either “due to/due from other funds” (amounts due within one year), “advances to/from other funds” (noncurrent portions of interfund lending/borrowing transactions), or “interfund loans to/from other funds” (long-term lending/borrowing transactions as evidenced by loan agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable governmental funds to indicate they are not available for appropriation, and are not expendable available financial resources. Property, sales, use, TOT, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable, and considered available if received within 60 days of year end. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net assets.

The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and available. The Town considers these taxes available if they are received during the period when settlement of prior fiscal year accounts payable and payroll charges normally occur. Grants, entitlements or shared revenue is recorded as receivables and revenue in the general, special revenue and capital projects funds when they are received or susceptible to accrual.

Allowance for Uncollectible Accounts
Management has elected to record bad debts using the direct write-off method. Accounting principles generally accepted in the United States of America require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed.

Prepaid Expenses
Prepaid expenses consist of fuel, vehicle parts and expendable supplies which are valued at cost on the weighted average method, which approximates fair value.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
26 Notes Receivable - Economic and Community Development Loans The majority of these loans consist of deferred repayment loans under the Town’s housing and economic development programs. These programs were funded from government grant awards to the Town, which were reported as grant revenue in the year received, and expenditures in the year the loans were made. A deferred loan is required to be repaid in full when the secured property is sold or transferred.

Prior to the sale or transfer, loan payments are generally not required. Principal and interest payments which are receivable at year end are offset by an equal amount of deferred revenue. Such payments are recognized as program revenue when received.

Capital Assets
Capital assets used in governmental fund type operations are accounted for on the statement of net position. Public domain general capital assets (infrastructure) consisting of certain improvements other than buildings, such as roads, sidewalks and bridges are capitalized prospectively starting July 1, 2003.

Town policy has set the capitalization threshold for reporting capital assets starting at $5,000. Capital outlay is recorded as expenditures of the general, special revenue and capital project funds financial statements, and as capital assets in the government-wide financial statements to the extent the Town’s capitalization threshold is met. Donated assets are recorded at estimated fair value at the date of donation.

Property, plant and equipment acquired for proprietary funds are capitalized in the respective fund to which it applies and are stated at their cost. Where cost could not be determined from the available records, estimated historical cost was used to record the estimated value of the assets.

Depreciation is recorded on a straight-line basis over the estimated useful lives of the capital assets which range from 4 to 20 years for equipment and vehicles, and 20 to 50 years for buildings and improvements. Land, art and treasures are not considered exhaustible, therefore are not being depreciated.

Deferred Revenue
The Town reports deferred revenue on its governmental funds balance sheet. Deferred revenue arises when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Deferred revenue also arises when resources are received by the Town before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures.

In subsequent periods, when both revenue recognition criteria are met, or when the Town has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.

Compensated Absences
The Town utilizes the general fund and proprietary funds to account for its compensated absences.

Resources have been set aside to cover this liability. The Town's method of calculating the liability is in accordance with GASB Statement No. 16, except that additional accruals for salary-related payments associated with the payment of compensated absences, for example, the required employer contribution to a pension plan or medicare taxes, have not been accrued as that amount is not considered significant or material to the financial statements taken as a whole. The Town accrues a liability for compensated absences which meet the following criteria:
• The Town’s obligation relating to employees’ rights to receive compensation for future absences is attributable to employees’ services already rendered. • The obligation relates to rights that vest or accumulate.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
27 • Payment of the compensation is probable.
• The amount can be reasonably estimated.

Long-term Obligations
In the government-wide financial statements, long-term debt and obligations are reported as liabilities in the applicable column on the statement of net position. For the most part, 75% of compensated absences are generally considered due after one year.

Net Position and Fund Balances
The Town’s Net Position is classified as follows on the government-wide statement of net position:
 Net Investment in Capital Assets - represents the Town’s total investment in capital assets less accumulated depreciation, reduced by any outstanding debt used to acquire such assets.  Restricted Net Position - includes resources that the Town is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties.  Unrestricted Net Position - represents resources derived from sources without spending restrictions, are used for transactions relating the general operations of the Town, and may be used at the discretion of those charged with governance to meet current expenses or obligations for any purpose.

Fund Balance designations are classified on the governmental funds balance sheet as follows:
 Nonspendable - amounts that cannot be spent because they are either (a) legally or contractually required to be maintained intact or (b), not in spendable form such as long-term notes receivable.  Restricted - amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.  Committed - amounts that can be used only for the specific purposes determined by a formal action of the Town Council, to establish, modify or rescind a fund balance commitment.  Assigned - amounts that are constrained by the government’s intent to be used for specific purposes but do not meet the criteria to be classified as restricted or committed, as determined by a formal action or policy of the Town Council or its appointed official.  Unassigned - the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.

The Town has set aside amounts for emergency situations, revenue shortages or budgetary imbalances, commonly referred to as revenue stabilization or reserve for economic uncertainty. The authority to set aside those amounts generally comes from statue, ordinance, resolution, constitution or policy.

Stabilization amounts may be expended with Council approval only when certain specific circumstances exist as determined by Council at that time.

When expenditures are incurred for purposes for which both restricted and unrestricted amounts are available, it is the Town’s policy to expend restricted fund balances first. When expenditures are incurred

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
28 for purposes for which committed, assigned, or unassigned amounts are available, it is the Town’s policy to expend committed, then assigned, then unassigned amounts in that order.

Other Postemployment Benefits Plan (OPEB)
In government-wide financial statements, as required by GASB Statement No. 75, OPEB plans are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as OPEB expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

The Town recognizes a net OPEB liability, which represents the excess of the total OPEB liability over the fiduciary net position (plan assets owned) as reflected in the actuarial report provided by the plan actuarial analyst. The net OPEB liability is measured as of the Town’s prior fiscal year‐end. Changes in the net OPEB liability are recorded, in the period incurred, as OPEB expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net OPEB liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective OPEB plan and are recorded as a component of OPEB expense beginning with the period in which they are incurred.

Pension Plan
In government-wide financial statements, as required by GASB Statement No. 68, retirement plans are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

The Town recognizes a net pension liability, which represents the Town’s proportionate share of the excess of the total pension liability over the fiduciary net position (plan assets owned) of the pension reflected in the actuarial report provided by the California Public Employees Retirement System (CalPERS). The net pension liability is measured as of the Town’s prior fiscal year‐end. Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.

Property Tax Revenue
Property taxes in the State of California are administered for all local agencies at the County level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
 Property Valuations - are established by the Assessor of Mono County for the secured and unsecured property tax rolls; the utility property tax roll is valued by the California State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13, adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%.

However, increase to full value is allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
29  Tax Levies - are limited to 1% of full assessed value which results in a tax rate of $1.00 per $100 assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.
 Tax Levy Dates - are attached annually on January 1, preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.  Tax Collections - are the responsibility of the County's tax collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments: The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.
 Tax Levy Apportionments - due to the nature of the Town-wide maximum levy, it is not possible to identify general-purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by each County auditor-controller based primarily on the ratio that each agency represented of the total Town-wide levy for the three fiscal years prior to fiscal year 1979.  Property Tax Administration Fees - the State of California fiscal year 1990-91 Budget Act authorized Counties to collect an administrative fee for its collection and distribution of property taxes.

Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Note 3 - Stewardship, Compliance, and Accountability
Budgetary Information
The Town follows these annual procedures in establishing the budgetary data reflected in the financial statements:
• The Town Manager submits to the Town Council a proposed draft budget for the fiscal year commencing the following July 1 which includes proposed expenditures and the means of financing them.
• The Town Council reviews the proposed budget at special scheduled sessions which are open to the public.
• The Council also conducts a public hearing on the proposed budget to obtain comments from interested persons.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
30 • Prior to July 1, the budget is adopted by resolution action of the Town Council. • From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein as proposed expenditures become appropriations to the various Town departments.
• The Town Council may amend the budget by resolution action during the fiscal year. • The Town Manager is authorized to transfer budget amounts within and between funds as deemed desirable and necessary in order to meet the Town’s needs; however, revisions that alter the total expenditures must be approved by the Town Council. Formal budgetary integration is employed as a management control device during the year for the governmental type funds. • All appropriations lapse at year end.

Revenue Limitations Imposed by California Proposition 218 Proposition 218, which was approved by the voters in November 1996, regulates the Town’s ability to impose, increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters.

Dependence Upon Tourism Industry
The Town is economically dependent on tourism generated tax dollars for providing revenue to its general fund, the primary operating fund of the Town. Property tax revenue is also a main contributor to the general fund. The tourism industry accounts for all the transient occupancy taxes collected and a significant portion of all sales taxes collected. Consequently, a downturn in the tourism industry for the Town would result in a substantial reduction in general fund revenue. In the event of such a downturn, the Town may have insufficient resources in its general fund to pay all of its obligations or provide services to its citizens at the current level.

The following table shows what percentage these three revenue sources provide to the Town’s general fund:
2017 2018 2019 2020 2021
Transient Occupancy tax 67% 64% 66% 61% 61%
Property tax 12% 13% 12% 15% 16%
Sales tax (excludes Meas R) 9% 9% 9% 9% 9%
88% 86% 87% 85% 86%
Cash Deficit Balances by Fund
The following governmental activity funds reported year-end cash deficit balances:

Tourism Business Improvement District $ 322,584
LTC Planning, Transportation & Transit 77,865
$ 400,449

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
31 Tourism Business Improvement District
Mammoth Lakes Tourism Business Improvement District (TBID) is a benefit assessment district that provides funds solely dedicated to tourism marketing and sales promotion efforts to attract visitors to the Town of Mammoth Lakes. The TBID ordinance was voted and approved by qualifying businesses and implemented on August 1, 2013 with a Sunset provision date of August 31, 2023. As a separate Improvement District, all funds except those retained by the Town for cost reimbursement are passed through to the District. The Town withholds 2% of the amount collected as reimbursement for administrative costs associated with the processing, collection, and enforcement of the TBID. The District is governed by and through Mammoth Lakes Tourism (a separate non-profit organization) with their own board of directors, which governs the appropriation of TBID funds in accordance with the adopted management plan.

The TBID assessment is broken down into 3 Tiers, as follows:
 Tier 1 represents all businesses that have annual sales in excess of $150,000 and can show that more than 50% of their sales revenue is provided by tourists. The assessment is 1% of gross room revenue for lodging, 1.5% of gross retail/restaurant sales or equipment rentals, and 2% of ski lift ticket and ski school sales.
 Tier 2 represents retail businesses and restaurants with gross annual revenue between $50,000 and $150,000, and can show that more than 50% of their sales revenue comes from local businesses or residents. The assessment is a $500 annual fee.  Tier 3 represents retail businesses and restaurants with gross revenue under $50,000, and can show that more than 50% of their sales revenue comes from local businesses or residents. The assessment is a $50 annual fee.

Voter Approved Initiatives:

Measure R - In 2010 the Town Council approved a ballot measure titled the “Mammoth Lakes Recreation, Trails and Parks Investment Initiative” that would seek voter approval to increase the sales and use tax rate, one-half of one percent, if two-thirds of the electors approve the measure, which was passed by the voters. The revenue from this measure is restricted for expenditures related to recreation, trails and parks funding for planning, construction, operation, maintenance, programming, and administration of all Town recreation facilities and programs, trails and parks, managed by the Town, without supplanting existing parks and recreation facility maintenance funds. There is no Sunset provision of this ordinance.

Measure U - In 2010 the Town Council approved a ballot measure titled the “Mammoth Lakes Mobility, Recreation, and Arts & Culture Utility Users Tax Ordinance” that would seek voter approval to establish a utility users tax of 2.5%, if two-thirds of the electors approve the measure, which was passed by the voters. The revenue from this measure is restricted for expenditures for planning, construction, operation, maintenance, programming and administration of facilities and projects for mobility, recreation, and arts & culture. A supplanting policy adopted February 15, 2012 allows Measure U funds to be used to enhance and improve existing efforts including planning, construction, operations, maintenance, programming and administration of facilities and projects for mobility, recreation and arts & culture.

There is no Sunset provision of this ordinance.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
32 Note 4 - Cash and Investments
The Town follows the practice of pooling cash and investments of all funds except for restricted funds required to be held by outside custodians, fiscal agents, or trustees under the provisions of bond agreements. Cash and investments are classified in the accompanying financial statements as follows:

Collateral and Categorization Requirements
At fiscal year end, the Town’s carrying amount of demand deposits was $2,226,791 and the bank account balances were $2,233,486. The difference represented outstanding checks and deposits in transit. Of the total bank deposit balance, $376,503 was insured by the Federal Depository Insurance Corporation (FDIC) and $1,856,983 was collateralized in accordance with California Government Code Sections 53600 - 53609.

Investment Policy
The table below identifies the investment types that are authorized under provisions of the Town’s investment policy adopted for fiscal year 2020-21, and in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address concentration or maximum percentages and maturity.

Maximum Maximum
Permitted Investments/Deposits Percentages Maturity
Investment Type A:

Securities of the US Government Unlimited 5 years
Certificates of Deposit Unlimited 5 years
Commercial Paper (A-1, P-1 only) 30% 180 days
Local Agency Investment Fund (LAIF) $40,000,000 n/a
Mono County Investment Pool $5,000,000 n/a
Passbook Deposits n/a n/a
Statement of Net Position
Cash and investments $ 53,553,382
Restricted cash with fiscal agent 317,008
Total Town cash 53,870,390
Statement of Fiduciary Assets and Liabilities
Cash and investments 4,206,383
Restricted cash with fiscal agent 130,137
Total Agency cash 4,336,520
Total cash and investments $ 58,206,910
Cash and Investments are comprised of the following:

Demand deposits with financial institutions $ 2,178,750 Investment with County Investment Pool 3,866,327
Investment with Local Agency Investment Fund 51,714,688 Investments by fiscal agents 447,145
Total $ 58,206,910

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
33 Investment Type B:

Negotiable Certificates of Deposit 30% 5 years
Bankers Acceptances 40% 270 days
Repurchase Agreements n/a 1 year
Mutual Funds 15% 5 years
Medium Term Notes 30% 5 years
 Type A investments do not require any specific approval of the Town Council.  Type B investments require a specific resolution of the Town Council prior to the investment purchase/deposit.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Town manages its exposure to interest rate risk is by investing with LAIF, who purchases a combination of short-term and medium-term investments which provide cash flow and liquidity needed for operations.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Town’s investment policy limits credit risk by requiring compliance with the California Government Code for investment of public funds.

Concentration of Credit Risk
The investment policy of the Town contains no limitations on the amount that can be invested in any single issuer beyond that stipulated by the California government code.

Investment Type Fair Value Maturity Yield Concentration Local Agency Investment Fund $ 51,714,688 on demand 0.22% 89% Mono County Investment Pool 3,866,327 on demand 1.09% 7% Demand Deposits 2,176,550 on demand 0.00% 4%
Money Market (with fiscal agent) 447,145 on demand 0.01% 0% Custodial Credit Risk
The credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California government code and the Town’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: “The California government code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Town deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.”

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
34 The credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California government code and the Town’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

Participation in External Investment Pools:

State Pool - The Town is a voluntary participant in the California State Local Agency Investment Fund (LAIF). LAIF, established in 1977, is regulated by California Government Code Section 16429 and under the day to day administration of the California State Treasurer. There is a five member Local Investment Advisory Board that is chaired by the State Treasurer. LAIF determines fair value of its investment portfolio based on market quotations for those securities where market quotations are readily available, and on amortized cost or best estimate for those securities where market value is not readily available.

LAIF is part of the Pooled Money Investment Account (PMIA) and under the control of the State Treasurer’s Office, which is audited by the Bureau of State Audits. As of June 30, 2021, PMIA had approximately $196 billion in investments. Audited financial statements of PMIA may be obtained from the California State Treasurer’s website at www.treasurer.ca.gov. The fair value of the Town’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Town’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

County Pool - The Town is a voluntary participant in Mono County’s Investment Pool (the Pool). As of June 30, 2021, the Pool had approximately $152 million in investments. Audited financial statements may be obtained from the Mono County Treasury Oversight Committee, Post Office Box 556, Bridgeport, California 93517. The fair value of the Town’s investment in this Pool is reported in the accompanying financial statements at amounts based upon the Town’s pro-rata share of the fair value provided by the County’s finance department for the entire Investment Pool portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the Pool, which are recorded on an amortized cost basis.

Note 5 - Commitments and Contingencies
In the normal course of municipal operations, there are various legal claims and legal actions pending against the Town for which no provision has been made in the financial statements because the amount of liability, if any, is unknown. In the opinion of the town attorney and town management, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.

The Town has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.

At June 30, 2021, the Town was in several contracts for grant funded street and airport projects which are expected to be completed by December 31, 2021.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
35 Note 6 - Assessment District Debt
The Town acts as an agent for collection of property taxes and repayment of several special assessment improvement bonds issued by Assessment Districts located within the Town. Since the Town is not obligated in the event of any manner for these special assessment bonds, the debt is not recorded in these financial statements. The outstanding balance of the bond obligations at year end was as follows:

CFD No. 2001-1 (North Village Area) 2016 Special Tax Refunding Bonds $ 5,405,875 Bluffs Reassessment District 1993-4R 591,688
Note 7 - Capital Assets
Governmental-type capital asset activity for the year was as follows:

Beginning Additions/ Retirements/ Ending
Balance Completions Adjustments Balance
Non-depreciable Assets
Land $ 16,840,808 $ - $ - $ 16,840,808
Construction-in-progress 9,039,589 - (5,267,103) 3,772,486 subtotals 25,880,397 - (5,267,103) 20,613,294
Depreciable Assets
Buildings and structures 26,116,615 69,376 - 26,185,991 Vehicles and equipment 1,498,367 533,543 - 2,031,910
Streets and roads 191,058,440 7,281,952 - 198,340,392
Storm drains 16,141,809 - - 16,141,809
subtotals 234,815,231 7,884,871 - 242,700,102
Accumulated Depreciation (193,039,589) (3,851,394) - (196,890,983) Depreciable assets, net 41,775,642 4,033,477 - 45,809,119 Total capital assets, net $ 67,656,039 $ 4,033,477 $ (5,267,103) $ 66,422,413 Internal Service Fund capital asset activity for the year was as follows:

Beginning Additions/ Retirements/ Ending
Balance Completions Adjustments Balance
Depreciable Assets
Vehicles and equipment $ 11,432,070 $ - $ - $ 11,432,070 Accumulated depreciation (8,133,530) (477,879) - (8,611,409) Total capital assets, net $ 3,298,540 $ (477,879) $ - $ 2,820,661

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
36 Business-type capital asset activity of the Mammoth Yosemite Airport for the year was as follows:

Beginning Additions/ Retirements/ Ending
Balance Completions Adjustments Balance
Non-depreciable Assets
Land $ 544,316 $ - $ - $ 544,316
Construction-in-progress 52,549 (52,549) - -
subtotals 596,865 (52,549) - 544,316
Depreciable Assets
Buildings and runway 13,660,032 1,198,447 - 14,858,479
Vehicles and equipment 2,608,671 - - 2,608,671
subtotals 16,268,703 1,198,447 - 17,467,150
Accumulated Depreciation (12,394,270) (215,691) - (12,609,961) Depreciable assets, net 3,874,433 982,756 - 4,857,189
Total capital assets, net $ 4,471,298 $ 930,207 $ - $ 5,401,505 Note 8 - Long-term Obligations
The following summarizes the change in long-term debt and obligations for the year:

Beginning Ending Due Within
Governmental Activities Balance Reductions Additions Balance One Year Lease Revenue Bonds Agreement $ 2,635,000 $ (111,000) $ - $ 2,524,000 $ 228,000 Installment Sales Agreement 4,495,000 (520,000) - 3,975,000 530,000 Taxable Judgment Obligation Bds 21,995,000 (1,090,000) - 20,905,000 1,075,000 Net pension liability (CalPERS) 19,383,314 - 2,073,364 21,456,678 - Net pension liability (PARS) 90,208 (226,067) - (135,859) - Net OPEB liability 944,256 - 1,100,501 2,044,757 -
Compensated absences 653,093 - 25,592 678,685 169,671
$ 50,195,871 $ (1,947,067) $ 3,199,457 $ 51,448,261 $ 2,002,671 Business-type Activities
Net pension liability (CalPERS) $ 1,535,296 $ - $ 79,723 $ 1,615,019 $ - Net OPEB liability 135,610 - 18,296 153,906 -
Compensated absences 35,774 - 6,367 42,141 10,535
$ 1,706,680 $ - $ 104,386 $ 1,811,066 $ 10,535

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
37 Lease Revenue Bonds Agreement
In 2015, the Town issued $3,550,000 in Revenue Bonds to refinance existing Certificates of Participation ($1,430,000) and construct a new public safety facility ($2,120,000) which was completed in 2017.

Principal and Interest payments are due semi-annually on June 1 and December 1. Total annual payments are approximately $315,000, with a fixed interest rate of 3.51% per annum. The debt is scheduled to mature in fiscal year 2029-30.

Future debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 228,000 $ 86,609 $ 314,609
2023 236,000 78,536 314,536
2024 244,000 70,182 314,182
2025 254,000 61,530 315,530
2026 262,000 52,545 314,545
2027-2030 1,300,000 116,708 1,416,708
$ 2,524,000 $ 466,110 $ 2,990,110
Lease Revenue Bonds
Installment Sales Agreement
In 2017, the Town entered into an Installment Sales Agreement in the amount of $5,550,000 for phase 1 of a new multi-use facility. Semi-annual interest payments are due April 1, with combined principal and interest payments due October 1. Total annual payments are approximately $619,000, with a fixed interest rate of 2.23% per annum. The debt is scheduled to mature in fiscal year 2027-28.

Future debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 530,000 $ 88,642 $ 618,642
2023 545,000 76,824 621,824
2024 555,000 64,670 619,670
2025 565,000 52,294 617,294
2026 580,000 39,694 619,694
2027-2028 1,200,000 40,252 1,240,252
$ 3,975,000 $ 362,376 $ 4,337,376
Lease Revenue Bonds Agreement
Taxable Judgment Obligation Bonds
The Town was the defendant in litigation with a real estate developer for alleged breach of contract. In 2008 a jury awarded the developer $30 million in damages. In March 2011 the Town lost its appeal of this judgment before the State Supreme Court. In July 2012 the Town filed for a voluntary petition for relief under Chapter 9 of the United States Bankruptcy Code. In November 2012 the Bankruptcy Court dismissed the Town’s Chapter 9 petition after both parties to the litigation reached a settlement and negotiated a $29,500,434 award to be payable over 24 years with interest at 5% per annum, along with other agreements previously entered into. In October 2017 the Town refunded the award by issuing Obligation Bonds at a reduced interest rate which is expected to save the Town in excess of $100,000 per annum.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
38 Future debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 1,075,000 $ 792,037 $ 1,867,037
2023 1,105,000 763,406 1,868,406
2024 1,140,000 731,112 1,871,112
2025 1,175,000 694,918 1,869,918
2026 1,215,000 655,321 1,870,321
2027-2031 6,795,000 2,546,295 9,341,295
2032-2036 8,400,000 946,494 9,346,494
$ 20,905,000 $ 7,129,583 $ 28,034,583
Taxable Judgment Obligation Bonds
Compensated Absences
Town employees accumulate earned but unused vacation benefits which can be converted to cash at termination of employment. No expenditure is reported for these accrued amounts in the governmental funds financial statements. However, in the statement of activities the expenditure is allocated to each function based on usage. Vested compensated absences payable in accordance with various collective bargaining agreements at year end was reported in the statement of net position, with approximately 75% considered due after the next fiscal year.

Operating Leases
In 2009, the Town entered into a real estate lease renewal amendment agreement for the continuing occupancy of Town Hall space, which expired September 30, 2021. The Town is in negotiations to renew the lease, with continuing occupancy on a month-to-month arrangement.

Note 9 - Interfund Balances
The Town reports an outstanding loan from the internal service vehicle fund to the general fund, with repayment terms of $340,000 per year amortized over 12 years, zero interest rate, with a remaining balance of $2,491,207 at fiscal year end.

Note 10 - Interfund Transfers
The Town reports interfund transfers between many of its funds. Transfers are used to (1) move revenue from the fund that statute or budget requires to collect them, to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from funds collecting the receipts, to the debt service fund as debt service payments become due, and (3) use unrestricted revenue collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. The Town accounts for its capital improvement and construction projects generally through its gas tax and capital project funds. Such expenditures are primarily funded from general fund revenue, tax revenue, grants and developer impact fees. Transfers into the agency funds are generally for street related expenditures. These transfers are reported in the fiscal period in which the transactions are approved and recorded.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
39 The following table reports operating transfers by fund type:

Note 11 - Other Postemployment Benefits Plan (OPEB)
Plan Description
The Town provides retiree medical benefits to employees who retire from the Town at age 50 or later with at least 5 years of service and are eligible for a California Public Employees’ Retirement System (CalPERS) pension. Eligible retirees are entitled to the minimum CalPERS medical benefit ($139 per month for 2020 and $143 per month for 2021). The retiree pays the balance of the premium for the option and tier of coverage, which the retiree elects. The Plan does not include a special disability benefit prior to the employee becoming eligible for the regular retirement benefit. Benefit and vesting service is credited from date of hire. The Plan does not include a death benefit or withdrawal benefit.

This benefit expires when the employee/retiree qualifies for Medicare.

Employees Covered
As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms:

Fund type In Out
General fund 100 $ 623,000 $ 9,264,681
Covid 19 fund 1,082,807 123,000
Gasoline tax fund 2,695,390 126,367
Housing fund 1,661,000 -
Measure R fund 405,000 914,441
Measure U fund - 1,575,000
Capital Projects fund 1,840,278 181,080
Airport fund 100,000 -
Vehicle Service fund - 75,404
Developer Impact Fee funds 14,851 14,851
Debt Service fund 4,451,268 700,000
Agency funds 101,230 -
$ 12,974,824 $ 12,974,824
Operating Transfers
Active employees electing coverage 59
Active employees waiving coverage 9
Retirees electing coverage 27
95

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
40 Actuarial Methods and Assumptions Used to Determine Total OPEB Liability The June 30, 2019 valuation was rolled forward to determine the June 30, 2020 total OPEB liability, based on the following actuarial methods and assumptions:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period June 30, 2019 to June 30, 2020
Reporting Date June 30, 2021
Actuarial Assumptions:

Actuarial Cost Method Entry Age Normal Cost, Level of Percent of Pay Amortization Method Straight-line amortization over a closed 5-year period Discount Rate 3.35%
Expected long-term rate 6.25% return on plan assets
General Inflation 2.50%
CPI Medical Care 3.75%
Payroll Growth Rate 2.75%
Participation Rate 100% for employees that qualify for subsidized coverage, and 50% for future employees
Spouse Coverage 60% of future retirees
Healthcare Cost Trend Rate 6.4% for fiscal year 2020
Mortality Factors CalPERS 2017 experience study
Funded Status
Total OPEB Plan Liability $ 2,611,853
Plan Fiduciary Net Position (assets owned) 413,190
Net OPEB Plan Liability 2,198,663
OPEB plan expense for the year $ 90,709
Discount Rate
Valuation results were computed at a 3.35% discount rate, which the Actuary has determined is a reasonable long-term assumption of the Town’s expected return on its investments.

Long-Term Expected Investment Return
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. The assumed asset weighting is based on target allocations published by PARS.

The weighted asset class estimates are combined with the inflation and investment expense assumptions to produce the portfolio long-term expected rate of return, as follows:

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
41 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the Town calculated using the discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate. The impact of a 1% increase or decrease in these assumptions is shown in the chart below:

Discount Rate -1% Current Rate Discount Rate +1%

2.35% 3.35% 4.35%
Net OPEB liability / (asset) $ 2,546,811 $ 2,198,663 $ 1,912,582 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the net OPEB liability calculated using the Healthcare Cost Trend discount rate assumed to start at 8.0% (effective January 1, 2018) down-grade to 5% for years 2024 and thereafter.

The impact of a 1% increase or decrease in these assumptions is shown in the chart below:
1% Decrease Current Rate 1% Increase
Net OPEB liability / (asset) $ 1,851,616 $ 2,198,663 $ 2,631,608 Deferred Outflows/Inflows of Resources Related to OPEB
At June 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between projected and actual experience $ - $ (1,241,974) Change of assumptions 179,458 (393,756)
Net difference between projected and actual earnings 2,462 - Totals $ 181,920 $ (1,635,730)
Target Expected Real
Asset Class Allocation Rate of Return
US Equity - large cap 26.50% 4.76%
US equity - small/mid cap 12.50% 5.25%
International equity 6.00% 5.41%
Emerging market equity 3.25% 6.38%
REITs 1.75% 4.53%
Core fixed income 43.50% 2.01%
High yield fixed income 1.50% 3.53%
Cash and equivalents 5.00% 0.74%
100.00%

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
42 When applicable, deferred outflows of resources are contributions made subsequent to the measurement date, and are recognized as a reduction of the total OPEB liability in future years. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ending June 30:
2022 $ (274,560)
2023 (272,727)
2024 (272,948)
2025 (257,172)
2026 (225,930)
thereafter (150,473)
$ (1,453,810)
Note 12 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Overview of the Pension Plan
Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68), requires public employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement to record their portion of the net pension liability, pension expense, and deferred outflows/deferred inflows of resources related to pensions in their financial statements as part of their financial position. Net pension liability is the plan’s total pension liability based on the entry age normal actuarial cost method less the plan’s fiduciary net position. This may be a net pension asset when the Plan’s fiduciary net position exceeds its total pension liability.

Pension expense is the change in net pension liability from the previous reporting period to the current reporting period less adjustments. This may be a negative expense (pension income), which should be reported as a credit in pension expense. Deferred outflows of resources and deferred inflows of resources related to pensions are certain changes in total pension liability and fiduciary net position that are to be recognized in future pension expense.

Summary of Significant Accounting Policies
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Plan Description, Benefits Provided and Employees Covered The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Plan’s June 30, 2019 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website: https://www.calpers.ca.gov

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
43 Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability The total pension liability was based on the following actuarial methods and assumptions:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period June 30, 2019 to June 30, 2020
Reporting Date June 30, 2021
Actuarial Assumptions:

Actuarial Cost Method Entry Age Normal Cost, Level of Percent of Pay Amortization Method Straight-line amortization over a closed 5-year period Discount Rate 7.15%
General Inflation 2.50%
Salary increases Varies by Entry Age and Service
Mortality Rate Table Derived using membership data
Investment Rate of Return 7.00%, net of investment expense Post Retirement Benefit Increase Contract COLA up to 2.5% Funded Status
Total Pension Liability $ 72,359,738
Plan Fiduciary Net Position (plan assets owned) 49,288,041 Net Pension Liability 23,071,697
Pension plan expense for the fiscal year $ 3,115,335
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
44 The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the longterm expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

Asset Class
Current Target
Allocation
Global Equity 50.00%
Fixed Income 28.00%
Private Equity 8.00%
Real Assets 13.00%
Liquid Assets 1.00%
100.00%
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss, as follows:
• Net Difference between projected and actual earnings on pension plan investments: 5 year straight-line amortization.
• All Other Amounts: Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
45 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Town’s proportionate share of the unfunded net pension liability calculated using the discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Discount Rate -1% Current Rate Discount Rate +1%

6.15% 7.15% 8.15%
Net Pension Liability $ 32,772,374 $ 23,071,697 $ 15,076,488 Deferred Outflows/Inflows of Resources Related to Pensions The Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 1,406,091 $ - Changes of assumptions - (132,824)
Differences between projected and actual investment earnings 618,831 - Change in employer's proportion - (365,416)
Differences between employer's share of contributions 67,872 (70,622) Pension contributions subsequent to the measurement date 2,698,794 - Totals $ 4,791,588 $ (568,862)
Recognition of Deferred Outflows and Inflows of Resources in Future Pension Expense as follows:

Year Ending June 30:
2022 $ 90,287
2023 633,859
2024 499,090
2025 300,696
2026 -
thereafter -
$ 1,523,932

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
46 Note 13 - Single Employer Defined Benefit Pension Plan Overview of the Plan
All eligible full-time public safety employees are eligible to participate in the Town’s Retirement Enhancement Plan, administered through the Public Agency Retirement Services (PARS), which provides additional retirement benefits to public safety employees above that provided from the costsharing multiple-employer defined benefit pension plan. Eligibility requirements are based upon years of employment, date of hire, and date of birth which meets the requirements of a pension trust under California Government Code. Additional information concerning this Single Employer Defined Benefit Pension Plan can be obtained from the Town’s Finance Director.

Benefits Provided
PARS provides service retirement benefits equal to the “3.5% at 55” plan factor less the CalPERS “3.0% at 50” plan factor for all years of Town Safety service as of July 1, 2012. Benefits are frozen effective as of July 1, 2012. Benefits in payment status will increase by 2% per annum on the anniversary of the participant’s date of retirement. The plan does not provide a withdrawal benefit, death benefit, or a disability benefit.

Contribution Description
The Town makes contributions required as the employer. Employee members are not required to make contributions. The contribution requirements of the plan are established and may be amended by PARS.

California Public Employees’ Retirement Law Section 20814(c) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by PARS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the plan are made in accordance with the contribution requirements determined by the actuarial valuation of the plan.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability The following actuarial methods and assumptions were used in the funding valuation:

Safety Plan
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Reporting Date June 30, 2021
Actuarial Assumptions:

Actuarial Cost Method Entry-Age Normal Cost
Amortization Method Straight-line over a closed 5-year period Discount Rate 6.22%
General Inflation 2.25%
Payroll Growth Rate 2.00%
Expected Return on Assets 6.22%

TOWN OF MAMMOTH LAKES
Notes to Financial Statements
June 30, 2021
47 Funded Status
Total Pension Liability $ 2,233,870
Plan Fiduciary Net Position (plan assets owned) 2,369,729 Net Pension Liability (135,859)
Pension plan expense for the year $ 47,135
Covered Employees
Inactive employees or beneficiaries currently receiving benefits 14 Inactive employees entitled to but not yet receiving benefits 1 Active employees 1
total 16
Discount Rate
The discount rate used to measure the total pension liability was 6.22% which is the long-term expected rate of return on pension plan investments. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2021.

Target Expected Real
Asset Class Allocation Rate of Return
Domestic Equity 47.00% 4.76%
International Equity 11.00% 5.41%
Fixed income 35.00% 2.01%
Real Estate and Alternatives 2.00% 4.53%
Cash and Equivalents 5.00% 0.74%
100.00%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of Town’s Retirement Enhancement Plan, calculated using the discount rate as well as what the Town’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Discount Rate -1% Current Rate Discount Rate +1%

5.22% 6.22% 7.22%
Net pension liability / (asset) $ 2,498,616 $ 2,233,870 $ 2,012,547