Agenda, second session — Maricopa City Council, May 14, 2024

Ex41852
City of Maricopa

CORFORNI
- Маткора,
9 10/06М
SSHM

05.26.2015 13:08 921:S0 FINDINED 30.0000
2024 Sewer Rate Study Update "Scenario 2"
May 2024
Prepared by:

PROFESSION
am OR37LS 1078 ALFONSO MANRIQUE ENGINEER
Consulting Engineers No. C63673
* Exp. 9/30/24 *
5150 N Sixth Street, Suite 124, Fresno, CA 93710

STATE CIVIL
P: 559.473.1371 / F: 559.513.8449 OF CALIFORNIAN
City of Maricopa
2024 Sewer Rate Study Update
Table of Contents

TABLE OF CONTENTS
EXECUTIVE SUMMARY. ...5
ES.1 Introduction ...5
ES.2 Rate Study Methodology. ...5
ES.2 Summary of Findings and Recommendations.. ..6
SECTION 1 - INTRODUCTION ...7
Purpose of this Rate Study ........7

1.1. .....7

1.2. Background Information.
.....

1.3. Goals and Objectives..

SECTION 2 - ECONOMIC, INCOME AND DEMOGRAPHIC INFORMATION.. .....9 Population Data ....9

2.1. Economic Status ....9

2.2. Rate Affordability. ...10

2.3. ..12
SECTION 3 - REVENUE REQUIREMENTS.
..12

3.1. Introduction...
..12

3.2. Sewer Enterprise Fund

3.2.1. Employee Salaries and Benefits.. ..12
• 13

3.2.2. Operations and Maintenance..

Depreciation .... 14

3.2.3. .15

3.2.4. Existing Long-Term Debt
New Long-Term Debt.. ...15

3.2.5. Reserve Requirements ..15

3.2.6. .15

3.2.7. Bad Debt
..16

3.2.8. Summary of Sewer Enterprise Fund Revenue Requirements Summary of Projected Sewer Enterprise Fund Revenue Requirements 17

3.2.9. SECTION 4 - UTILITY REVENUES 18
18 4.1. Introduction...

Existing Sewer Rates.. 18

4.2. Historical Revenues .... 19

4.3. Use of Money and Property.. .19

4.3.1. Service Charges ..19

4.3.2. City of Maricopa
2024 Sewer Rate Study Update
Table of Contents

4.3.3. Connection Fees. ..20

4.3.4. Sewer Impact Fees ...20

4.4. Summary of Revenues. .21
SECTION 5 - PROPOSED SEWER RATES. . 22

5.1. Introduction. .22

5.2. Basis of Sewer Rate Structure .. ..22

5.3. Cost vs. Revenue Comparison ..22

5.4. Proposed Sewer Rates ..23

5.5. Recommendations. ...23

5.6. Rate Comparison with Nearby Communities.. ...24
SECTION 6 - PROPOSED SEWER RATES.. ...25

6.1. Proposition 218 ...25

6.2. AB3030 ...26
APPENDIX A - SEWER FUND REVENUES & EXPENDITURES... ..28 APPENDIX B - RATE INCREASE RESOLUTION..... ...29
APPENDIX C - 2018/19 SEWER RATE SCHEDULE.. .30
APPENDIX D - REQUIRED SEWER RATES ..... ..31
List of Tables & Charts
Table ES-1 Summary of Recommended Sewer Base Rates ... ... 6 Table 2-1 Historical Housing and Population Statistics ....9 Table 2-2 Population and Housing Unit Projections.. ....9 Table 2-3 Population and Median Household Income .. ...10 Table 3-1 Employee Salaries and Benefits.... ....12
Table 3-2 Projected Employee Salaries and Benefits. 13
Table 3-3 General O&M Costs... 13
Table 3-4 Projected General O&M Costs 14
Table 3-5 Projected Utility Costs.. 14
Table 3-6 Annual Depreciation .15
Table 3-7 Annual Existing Long-Term Debt Payments 15
Table 3-8 Projected Annual Bad Debt Expenses. • 16
Table 3-9 Summary of Sewer Enterprise Fund Requirements.. ..16 Chart 3-1 Revenue Requirements for FY 2020/21, FY 2021/22, and FY 2022/23 ..16 City of Maricopa
2024 Sewer Rate Study Update
Table of Contents
Table 3-10 Summary of Projected Sewer Enterprise Fund Requirements • 17 Table 4-1 Existing Sewer Rates .18
Table 4-2 Historical Sewer Revenues.... 19
Table 4-3 Projected Number of Service Units.... .20
Table 4-4 Projected Annual Revenues..... . 20
Table 4-5 Projected Revenues from Connection Fees... .20 Table 4-6 Summary of Projected Sewer Revenues... . 21
Table 5-1 Comparison of Projected Revenue Requirements and Projected Revenues... .22 Table 5-2 Calculated Sewer Base Rates............. . 23 Table 5-3 Sewer Rate Comparison................................................ ....24 City of Maricopa
2024 Sewer Rate Study Update
List of Abbreviations

ABBREVIATIONS
AWWA American Water Works Association
AMCE AM Consulting Engineers
BOD Biochemical Oxygen Demand
City City of Maricopa
FY Fiscal Year
MGD Million Gallons per Day
MHI Median Household Income
TSS Total Suspended Solids
WDRS Waste Discharge Requirements
WEF Water Environment Federation
WWTP Wastewater Treatment Plant
iv
(om
Consulting Engineers
City of Maricopa
24 Sewer Rate Study Upda
ction 1 - Introductic

EXECUTIVE SUMMARY
ES.1 Introduction
The City of Maricopa is located in the southern San Joaquin Valley of California. Located within Kern County, Maricopa is 7 miles south of the City of Taft and 45 miles southwest of the City of Bakersfield.

According to the 2020 census, the population was 1,026, down from 1,154 at the 2010 census. The City encompasses approximately 1.5 square miles.

The City provides sewer service to residential and commercial accounts within the City. The City's sewer utilities are a self-supporting enterprise that is funded primarily by revenues derived from sewer service charges. The City's current base residential sewer rate is $453.36 per year ($37.78 per month).

The City has retained AM Consulting Engineers to develop a long-term financial plan and rate recommendations supporting the City's sewer enterprises operating and capital programs. Basic objectives of our study include:

Conduct an independent review of the City's sewer rates and finances; • Recommend sewer rate needed to recover the cost of providing service and maintain the sewer enterprise's long-term financial health;
• Phase in any necessary rate adjustments over time, to minimize the annual impact on ratepayers;
• Assist the City with the Proposition 218 rate-increase process and rate implementation, if applicable.

ES.2 Rate Study Methodology
The methodology used in this study follows the cost causative allocation practice endorsed by American Water Works Association (AWWA) and the Water Environment Federation (WEF). This allocation methodology produces cost of service allocations recognizing the projected customer service requirements. The basic methodology consists of three major components: Revenue Requirements, Cost of Service, and Rate Design.

The following is a brief description of the three components:
• Revenue Requirements: Revenue requirements are determined by developing a multi-year financial plan for the enterprises. The financial plan projects revenue and expenditures based on anticipated changes in the systems. Revenue incorporates revenue under the existing rate structure, anticipated growth in customer classes, and unique customer characteristics.

Expenditures incorporate operation & maintenance, debt service, and capital expenditures. • Cost of Service: Cost of service is the process of allocating the revenue requirements to functional cost components which are then assigned to specific customer classes. The cost of service is designed to assign costs associated with each customer class based on the demands they put on the system.
an 5
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction
Rate Design: Rate design consists of developing a rate structure that adequately recovers the revenue requirements through fixed and variable components yet remains equitable among the specific customer classes.

ES.2 Summary of Findings and Recommendations
The following are findings and recommendations described in this sewer rate study:

Financial Overview: As of June 2023, the City does not have a sewer reserve fund. This report recommends that the City adopt a minimum fund reserve target for the sewer enterprise equal to approximately 50 percent of annual operating and maintenance costs. Fund reserves provide a financial cushion for dealing with emergencies, unanticipated expenses, and mismatches in the timing between revenues and expenses. It is acceptable for reserves to drop below the target level on a temporary basis provided action is taken to achieve the target over the longer run.

Automatic Rate Adjustment Factor: It is recommended that a rate adjustment factor be implemented for increases beyond the 5-year period considered in this rate study.

Recommended Sewer Rates: The proposed sewer rates maintain a flat rate based on customer class.

Presented below in Table ES-1 are the proposed sewer rates and rate adjustments through Fiscal Year 2028/29. The first-rate increase was recommended since July 1st, 2018. Customer classes are defined as follows:
• Class 1: Single-family residences, duplexes and Triplexes (per dwelling unit); . Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit); Class 3: Hotels/motels for owner/resident manager dwelling units (per dwelling unit); Class 4: Hotels and motels per guest room;
Class 5: Public assembly buildings including churches, synagogues, mosques and similar; . Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
• Class 7: Commercial establishments not otherwise listed in this User Schedule of sewer service fees.

Table ES-1 Summary of Recommended Sewer Base Rates
Existing Rate 2024/25 2025/26 | 2026/27 2027/28 2028/29 Class 1 $453.36 $770.16 $783.82 $798.13 $812.95 $828.31 Class 2 $417.12 $708.60 $721.17 $734.337 $747.97 $762.09 Class 3 $453.36 $770.16 $783.82 $798.13 $812.95 $828.31 Class 4 $135.96 $230.97 $235.06 $239.36 $243.80 $248.40 $770.16 $783.82 $798.13 $812.95 $828.31
Class 5 $453.36
Class 6 $1,168.80 $1,985.55 $2,020.76 $2,057.66 $2,095.86 - $2,135.44 Class 7 $714.12 $1,213.14 $1,234.65 $1,257.20 $1,280.54 $1,304.72 6 am
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction
SECTION 1 - INTRODUCTION

1.1. Purpose of this Rate Study
The purpose of this rate study is to evaluate the City of Maricopa's self-financing capacity of its sewer utility fund and to determine if revenue increases are required in that utility fund to maintain adequate service and meet future financial obligations. If additional revenues are required to meet future obligations, those revenues will be generated by increasing current sewer service rates for each customer classification.

It should be noted that the financial plan and rates developed herein are based on the funding of the capital improvement plan as stated as well as estimates of operation and maintenance expenses and growth projections. Any significant deviation from the construction cost estimates and funding requirements, major operating changes, or other financial policy changes that were not foreseen, may result in the need for lower or higher revenue than anticipated. It is suggested that the City conduct an update to the rate study at least every three years for prudent rate planning.

1.2. Background Information
The City of Maricopa is located in the southern San Joaquin Valley of California, on the first rise of land into the Coast Range Foothills. Incorporated in 1911, the City is located at the junction of State Highway 33 and 166. Located within Kern County, Maricopa is 7 miles south of the City of Taft and 45 miles southwest of the City of Bakersfield.

The City's boundary encompasses approximately 960 acres (1.5 square miles). Although the City spans approximately 1.5 square miles, the sewer collection system covers a much smaller area. Almost half of the City, and half of the its residents utilize private septic systems scattered throughout the City.

Currently, the City's sewer collection system services 298 connections, including 41 businesses and a school. The City's sewer collection system consists of laterals, mains, manholes, cleanouts, and one lift station. The collection system conveys wastewater to the City's Wastewater Treatment Plant (WWTP) through an 8-inch outfall clay sewer main.

The City owns and operates the WWTP under Waste Discharge Requirements (WDRs) Order No. 5-00- 153. Wastewater is primarily domestic in origin. Raw sewage is directly discharged to two disposal ponds without prior treatment. The disposal ponds, which cover approximately 2.25 acres, are located approximately 5,200 feet east of the City and 660 feet north of State Highway 166. Disposal of the wastewater is by evaporation and percolation.

1.3. Goals and Objectives
Basic objectives of this study include:
• Conduct an independent review of the City's sewer rates to determine revenue sufficiency to meet the O&M and capital expenditures of the City's sewer enterprises; • Recommend sewer rate increases (if necessary) needed to recover the cost of providing service and maintain the sewer enterprise's long-term financial health; Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction
Maintain good financial ratings by providing for a stable and reliable financial position so that debt issuance can be achieved at the lowest cost and that the City maintains eligibility for grants and loans;
Provide an introduction to the Proposition 218 rate-increase process and rate implementation. 8 an
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 2 - Economic, Income and Demographic Information SECTION 2 - ECONOMIC, INCOME AND DEMOGRAPHIC

INFORMATION

2.1. Population Data
Table 2-1 contains population statistics for the City of Maricopa from the 1990, 2000, 2010 and 2020 US Census data, along with the 2023 population estimate obtained from the California Department of Finance.

Table 2-1 Historical Housing and Population Statistics
Statistic Census 1990 Census 2000 Census 2010 Census 2020 2023 Estimate Number of Households NA 404 414 421 NA
Average Household Size NA 2.75 2.79 2.44 NA
Housing Units NA 460 466 432 NA
Total Population 1,193 1,111 1,154 1026 1,011*
*Source: California Department of Finance
According to the US Census data shown in Table 2-1, the City's population decreased at an average annual rate of 0.71 percent from 1990 to 2000, grew at 0.38 percent from 2000 to 2010, and decreased at an average annual rate of 1.17% percent from 2010 to 2020. Since 2010, the population has varied year to year, likely based on economic factors. The growth rate between 2000 and 2023 is decreasing at a rate of 0.41%. Typically, long-term growth rates provide a better representation of future growth and are used to project population growth. In this rate study, no population increase, or decrease is projected within the city.

Table 2-2 shows the estimated population over the next five years (through 2029) using the 2023 California Department of Finance estimate as a base point. Since no change is projected, this rate study assumes that no new connections are made to the sewer system through the end of the study period. If the population is to increase or decrease dramatically, it is recommended that an updated rate study be performed.

Table 2-2 Population and Housing Unit Projections
Statistic 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Total Population 1,011 1,011 1,011 1,011 1,011 1,011
Decrease from previous year 0

2.2. Economic Status
Table 2-3 shows population and median household income (MHI) between 2018 and 2022 for incorporated cities within Kern County with a population of 50,000 or less. The data was obtained from the US Census Bureau. The City's MHI for 2022 was $45,685. According to the same source, the State of California MHI was $91,905. Thus, Maricopa's MHI was 49.7 percent of the State's MHI. am 9
Consülting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 2 - Economic, Income and Demographic Information Table 2-3 Population and Median Household Income
Median Household
City Population Income
Ridgecrest 28,346 $85,872
Taft 7,034 $52,414
California City 15,172 $55,410
Tehachapi 12,389 $62,788
Shafter 21,282 $66,418
Wasco 27,731 $48,109
Arvin 19,611 $47,997
Maricopa 1,020 $45,685
McFarland 14,019 $42,641
Source: US Census Bureau 2018-2022 American
Community Survey 5-Year Estimates
Note that Maricopa has one of the lowest MHIs among incorporated cities in Kern County. Thus, rate affordability is of utmost importance to the City. A discussion regarding rate affordability is presented below.

2.3. Rate Affordability
Sewer service affordability has been studied and researched widely over the last few years. In every community in the U.S., some households inevitably have difficulty in paying sewer bills. The relative number may be large or small, but there are always some that find public utility service unaffordable.

This is true whether the community as a whole is wealthy or poor, and whether the average cost of water and sewer service is high or low.

As presented in Section 2.2, the City's MHI is only 49.7% of the State's MHI. Therefore, sewer service rate affordability is important and any recommended increase should avoid surpassing the affordability threshold.

Public agencies such as the US Environmental Protection Agency and the California Department of Public Health, and professional organizations such as the American Water Works Research Foundation have developed their own affordability criteria for water and sewer rates. Table 2-4 shows the affordability criteria by agency.

Table 2-4 Affordability Criteria
Affordability Criteria
Between 1 percent and 2 percent for each utility
USEPA (water and sewer)

1.5 percent of MHI if City's MHI< State's MHI
CDPH 2.0 percent of MHI if City's MHI> State's MHI
AWWARF 2 percent per utility (4 percent combined)
10 (am)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 2 - Economic, Income and Demographic Information Based on these sources, it is suggested that a wastewater bill of 1.5 percent of MHI be used as a measure of rate affordability. According to that, the City's sewer rates should be less than $685.28 per year to be considered affordable. The City's base residential sewer rate is currently $453.36 per year,

66.2 percent of the maximum affordable rate.
11 am)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
SECTION 3 - REVENUE REQUIREMENTS

3.1. Introduction
The first step in calculating revenue requirements for the water and sewer utilities is to establish a time frame for the revenue requirements analysis. For this study, the revenue requirements were developed for a five-year projected time period (FY 2024/25 - FY 2028/29). Fiscal year 2023/24 is a budgeted period (see Appendix A). Fiscal Year 2024/25 and beyond were projected using the average of the last 3 audited periods (FY 2020/21, FY 2021/22, and FY 2022/23).

Reviewing a multi-year time period is generally recommended in an attempt to identify any major expenses that may be on the horizon. By anticipating future financial requirements, the City can begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.

3.2. Sewer Enterprise Fund
This Section provides the projected revenue requirements (Costs) for the sewer enterprise fund through fiscal year 2028/29. Revenue requirements include salaries and benefits, operations and maintenance (0&M) expenses, planned capital improvement expenses, debt service costs, reserves requirements, etc. Revenue requirements include the cost of operating and maintaining the wastewater treatment facility, sewer collection facilities, as well as the costs of providing technical services such as laboratory services and other administrative costs of the sewer system.

Revenue requirement projections are based on the City's average of FY 2020/21, FY 2021/22, and FY 2022/23 audited reports and an inflationary factor of 3 percent. Salaries, benefits, utilities, and depreciation are significant expenditures and their projected cost increases are analyzed separately.

Long-term debt is forecasted separately using the existing debt service. The City has planned capital improvements associated with the sewer collection system and Wastewater Treatment Facility. These planned capital improvements are anticipated to be covered by grants and are not projected to add new debt to the City's revenue requirements. Finally, bad debt and operating reserves are also justified below and added to the annual revenue requirements.

3.2.1. Employee Salaries and Benefits
The final budget for sewer system employee salaries and benefits for FYs 2020/21 through 2022/23 are shown in Table 3-1.

Table 3-1 Employee Salaries and Benefits
Fiscal Year Fiscal Year Fiscal Year
2020/21 2021/22 2022/23
Employee Salaries $19,072 $20,204 $21,790
Payroll Tax $1,459 $1,546 $1,699
Employee Benefits $8,308 $9,416 $11,446
Workers Comp. 52,000 $2,000 $1,301
Total $30,839 $33,165 $36,236
12 (an)
ConsultingEngineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
An annual salary increase of 3 percent is used to project salaries through FY 2028/29. Table 3-2 shows the projected employee salaries and wages for the sewer enterprise through FY 2028/29.

Table 3-2 Projected Employee Salaries and Benefits
Fiscal Year
2023/24* 2024/25 2025/26 2026/27 2027/28 2028/29
Employee Salaries $21,001 $21,631 $22,280 $22,948 $23,637 $24,346 Payroll Tax $1,500 $1,545 $1,591 $1,639 $1,688 $1,739
Employee Benefits $7,502 $7,727 $7,959 $8,198 $8,444 $8,697 Workers Comp. $2,000 $2,060 $2,122 $2,185 $2,251 $2,319 Total $32,003 $32,963 $33,952 $34,971 $36,020 $37,100
*FY 2023/24 is Budgeted

3.2.2. Operations and Maintenance
Budgeted expenses for Operations and Maintenance of the sewer system for FY 2023/24 are shown in Appendix A. Operation and Maintenance expenses include the costs to operate and maintain the sewer system. Utilities are included in a separate analysis. The remaining categories are referred to as general O&M expenses.

3.2.2.1. General 0&M
Table 3-3 shows the general 0&M costs for FY 2020/21, FY 2021/21, and FY 2022/23.

Table 3-3 General O&M Costs
2020/21 2021/22 2022/23
Refunds $2,218 $112 $0
Professional Services $47,970 $77,575 $159,398
Annual Audit $1,600 $1,650 $1,700
Fuel $323 $531 $1,542
Liability Insurance $2,803 $2,819 $2,784
Office Supply/Equipment $45 $100 $3,965
Dues- Wastewater Permits $21,762 $25,834 $29,311
Lab Services $1,560 $1,650 $2,148
Maintenance $780 $470 $5,718
Vehicle Repair $182 $814 $369
Miscellaneous Supplies $86 $229 $136
Equipment Repair $63 $3,571 $0
Crime Prevention -
Total $79,392$115,353 | $207,071
Table 3-4 below shows the projected general O&M costs through FY 2028/29. Expenses for these general 0&M costs are based on FY 2020/21 actual costs and assumed to increase at 3% per year, with insurance and bonding assumed to increase at 10% per year. A large amount of general O&M expenses are professional services. These services include the cost to inspect, flush, and repair the sewer collection system during blockages, among other services. 13 (am)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
The cost increase in Maintenance & Operations observed in FY 21/22 and FY 22/23 is the consequence of emergency repairs in the collection system. Those repairs are not the norm and are not expected to continue in the future. Therefore, actual costs for FY's 21/22 & 22/23 are not considered when projecting future O&M costs.

Table 3-4 Projected General O&M Costs
2023/24* 2024/25 2025/26 2026/27 2027/28 2028/29
Refunds $1,000 $2,218 $2,284 $2,353 $2,423 $2,496
Professional Services $60,000 $47,970 $49,409 $50,892 $52,418 $53,991 Annual Audit $1,725 $1,600 $1,648 $5,697 $1,748 $1,801
Fuel $600 $323 $333 $343 $353 $364
Liability Insurance $3,458 $2,803 $3,083 $3,391 $3,730 $4,103 Office Supply/Equipment $45 $47 $48 $49 $51
Dues- Wastewater Permits $27,000 $21,762 $22,415 $23,087 $23,780 $24,493 Lab Services $3,000 $1,560 $1,607 $1,655 $1,705 $1,756
Maintenance $3,000 $780 $803 $827 $852 $878
Vehicle Repair $500 $182 $187 $193 $199 $205
Miscellaneous Supplies $300 $86 $89 $92 $94 $97
Equipment Repair $2,000 $63 $65 $66 $68 $71
Crime Prevention
Total | $ 102,583 $ 79,392 $ 81,970 $ 84,645 $87,421 $ 90,305 *FY 2023/24 is Budgeted

3.2.2.2. Utilities
Utility expenses associated with the sewer enterprise include the cost of electricity used in the lift station pump and in the treatment of the wastewater. Utility costs are considered a variable expense and are assumed herein to be proportional to the amount of wastewater flows and to the costs of electricity. Due to the very low population decrease anticipated, future wastewater flows are projected to remain stable with current flows. To project costs for future utility rate increases, a 3% growth is assumed.

The projected utility expenses through FY 2028/29 are shown in Table 3-5.

Table 3-5 Projected Utility Costs
2023/24* 2024/25 2025/26 2026/27 2027/28 2028/29
Utilities $3,584 $2,952 $3,041 $3,132 $3,226 $3,322
*FY 2023/24 is Budgeted

3.2.3. Depreciation
Depreciation of expenses is a means of recouping the cost of capital facilities over their useful lives and generating reserves for the replacement of those facilities. As a general financial guideline, a utility should fund, at a minimum, an amount within their rates an amount equal to the annual depreciation expense for renewal and replacement capital projects.
(am 14
ConsultingEngineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
The City utilizes a straight-line method to calculate the annual depreciation of assets. Thus, the book value of each asset is reduced by equal amounts over their estimated useful life. The cost of maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Asset useful lives vary depending on the asset. Table 3-6 shows the projected annual depreciation of fixed assets through FY 2028/29.

Table 3-6 Annual Depreciation
Fiscal Year
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Depreciation $54,557 $54,557 $54,557 $54,557 $54,557 $54,557

3.2.4. Existing Long-Term Debt
In order to meet sewer revenue shortfalls in the past, the City borrowed $125,343 from other funds. To account for the borrowed funding, the City is currently making debt service payments to the Refuse Fund. As of June 2023, the balance is approximately $108,652. The payments to the Refuse Fund total $6,250 annually and are to continue through the end of the study period. Table 3-7 shows the future costs associated with debt payment through FY 2028/29.

Table 3-7 Annual Existing Long-Term Debt Payments
Fiscal Year
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Long-Term Debt $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

3.2.5. New Long-Term Debt
The City plans to construct a sewer collection system improvement project within the study period. It is anticipated that a $14,735,000.00 grant will be issued to the City for the construction of the project, with no additional loan required. Since the project is to be 100% grant funded, it will not add any new long-term debt.

3.2.6. Reserve Requirements
The City does not currently have a sewer reserve fund to cover unforeseen budget shortfalls related to the sewer system. It is recommended that the City maintain a minimum operating fund reserve target for the sewer enterprise fund equal to 50% (180 days) of annual operating and maintenance costs. Using the FY 2022/23 annual operating budget of $300,626 the recommended reserve fund would be $150,313. In order to achieve the recommended reserve fund balance, it is recommended that equal annual payments be made over the next 5 years. The recommended annual reserve payment is $30,063.

3.2.7. Bad Debt
While the City did not budget for bad debt during previous years, it is recommended that they do so in future years. Using a consistent approach, bad debt expenses in the sewer enterprise fund beyond FY 2023/24 are assumed to be 1 percent of the FY 2022/23 audited operating budget times an annual increase of 3 percent. Table 3-8 shows the projected annual bad debt expenses. 15 Constilting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
Table 3-8 Projected Annual Bad Debt Expenses
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Bad Debt Expenses $3,074 $3,167 $3,262 $3,359 $3,460

3.2.8. Summary of Sewer Enterprise Fund Revenue Requirements Table 3-9 shows the summary of actual revenue requirements for FY 2020/21, FY 2021/22, and FY 2022/23.

Table 3-9 Summary of Sewer Enterprise Fund Requirements Fiscal Year
Expense 2021/22 2022/23
2020/21
Employee Salaries and Benefits $30,839 $33,165 $36,236
Maintenance and Operations $79,392 $115,353 $207,071
Utilities $2,843 $3,301 $2,712
Contract Services $50 $50 $50
Existing Long Term Debt $0 $0
Depreciation $54,558 $54,557 $54,557
Bad Debt $0 $0
Reserve Funding $0 $0 $0
Total Revenue Requirements $167,681 $206,426 $300,626
Chart 3-1 below demonstrates the revenue requirements for FY 2020/21, FY 2021/22, and FY 2022/23.

Chart 3-1 Revenue Requirements for FY 2020/21, FY 2021/22, and FY 2022/23 Revenue Requirements
$300,000
= Maintenance and
$250,000 Operations
Be Employee Salaries and
Benefits
$200,000
Utilities
5$150,000
A Depreciation
$100,000 Hood Total Revenue
Requirements
$50,000
$0
2020/21 Fiscal Year 2022/23
(cr 16
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
As shown in the chart above, there is a very significant increase in the Maintenance & Operations Cost.

3.2.9. Summary of Projected Sewer Enterprise Fund Revenue Requirements Table 3-10 shows a summary of the projected revenue requirements to adequately fund the sewer utility through FY 2028/29. The projected revenue requirements are calculated using the average of FY 20/21, FY 21/22, and FY 22/23 actual revenue requirements (Table 3-9) except that the Maintenance & Operations cost maintain the amount from FY 20/21 only since the increase in FY 21/22 and FY 22/23 is abnormal.

Table 3-10 Summary of Projected Sewer Enterprise Fund Requirements Fiscal Year
Expense 2027/28
2023/24* 2024/25** 2025/26 2026/27 2028/29
Employee Salaries and Benefits $32,003 $33,413 $34,416 $35,448 $36,512 $37,607 Maintenance and Operations $102,583 $79,392 $81,970 $84,645 $87,421 $90,305 Utilities $3,584 $2,952 $3,041 $3,132 $3,226 $3,322
Contract Services $50 $52 $53 $55 $56 $58
Existing Long Term Debt $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 Depreciation $54,557 $54,557 $54,557 $54,557 $54,557 $54,557 Bad Debt $0 $3,074 $3,167 $3,262 $3,359 $3,460
Reserve Funding $0 $29,848 $29,848 $29,848 $29,848 $29,848 Total Revenue Requirements $199,027 $209,538 $213,300 $217,196 $221,229 $225,407 *FY 2023/24 is Budgeted
** FY 2024/25 is based on the averages from FY's 2020/21, 2021/22, and 2022/23. 17 (an)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
SECTION 4 - UTILITY REVENUES

4.1. Introduction
This Section provides a projection of sewer utility revenues utilizing present rates and the estimated number of accounts. In general, this process involves developing projections for each of the revenue generating categories in each of the enterprise funds. Revenue generating categories include use of money and property, service charges and connection fees.

Projecting revenues requires projecting the number of units for each customer group. The number of units for each customer group is then multiplied by the applicable current service rates and connection fees. This method of independently calculating revenues assures the projected revenues used within the analysis tie to the projected billing units.

4.2. Existing Sewer Rates
Ordinance No. 2018-01 of the City's Municipal Code adopted on June 26*, 2018, establishes previous sewer rates that were charged to customers for sewer services. A copy of Ordinance No. 2018-01 is included in Appendix B. The adopted rate schedule is included in Appendix C. The ordinance includes provisions for inflationary increases during the first 5 years. The sewer rates for current connections can be classified into 7 groups which are based on equivalent usage as compared to a single- family residence. Class 1, which is the base sewer rate (equivalent single-family residence), is a flat service charge of $453.36. The other classes increase proportionally based on anticipated sewer flows.

The rate structure is as follows.
• Class 1: Single-family residences, duplexes and Triplexes (per dwelling unit); • Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit); • Class 3: Hotels/motels for owner/resident manager dwelling units (per dwelling unit); • Class 4: Hotels and motels per guest room;
• Class 5: Public assembly buildings including churches, synagogues, mosques and similar; • Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
• Class 7: Commercial establishments not otherwise listed in this User Schedule of sewer service fees.

The number of service units for each classification are shown in Table 4-1 below Table 4-1 Existing Sewer Rates
Classification Current Rate Number of Service Units
Class 1 $453.36 252
Class 2 $417.12
Class 3 $453.36 1
Class 4 $135.96 40
Class 5 $453.36 2
Class 6 $1,168.80 1
Class 7 $714.12 1
18 ConsultingEngineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues

4.3. Historical Revenues
Based on the revenues from previous years, the City's revenue for sewer service consists primarily of service charges (see Appendix A). These consists of a base monthly charge to each customer.

Historically, the revenue budget is modified annually according the anticipated number of active connections to the sewer system. Other potential revenue sources include interest revenue and connection fees. A copy of the sewer utility revenues is included in Appendix A. The sewer revenues for FY 2020/21 through FY 2022/23 are summarized in Table 4-2.

Table 4-2 Historical Sewer Revenues
Revenue 2020/21 2021/22 2022/23
Sewer Revenue (Service Charges) $139,584 $137,039 $122,024 Connection Fees $0 $0 $0
Total Revenue $139,584 $137,039 $122,024
According to Table 4-2, service charges account for the entirety of total budgeted revenues for sewer during FY 2022/23. While the City charges a $650 fee for new connections, there have been very few new connections in recent years, and the rate has not changed since the last rate study. The following sections provide a projection of the sewer utility revenues through FY 2028/29.

4.3.1. Use of Money and Property
Use of money and property includes revenues generated from interest earnings and penalties. There are no sewer utility revenues from these two categories combined in the FY 2023/24 budget. It is anticipated that no revenues will be created through the end of the study period.

It is a recommended practice to set sewer utility rates to recover the costs of providing service without accounting for penalties and interest earnings. Penalties and interest revenues are volatile and a very small percentage of the overall revenues. This study recommends that any future revenues generated from use of money and property not be used to fund maintenance and operation expenses. Any revenues collected from use of money and property could contribute to the available cash balance and attainment of targeted financial policies.

4.3.2. Service Charges
Projected wastewater flows are directly related to the projected population growth. Population growth and housing unit projections for the City were presented in Section 2.1 of this study. For purposes of projecting revenues for the wastewater enterprise fund, it is assumed that the annual increase/decrease in the number of residential accounts will be equal to the number of additional/fewer housing units (or connections) each year (see Table 2-2). Since population growth/decline has been very low since 2000, no population growth is assumed as a conservative estimate. Table 4-3 shows the projected number of service units through FY 2028/29.
an 19
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
Table 4-3 Projected Number of Service Units
Classification 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Class 1 252 252 252 252 252 252
Class 2 1 1 1
Class 3 1 1 1 1
Class 4 40 40 40
Class 5 2 2
Class 6 1
Class 7 1 1 1
Total Number of Service Units 298 298 298 298 298 298
Table 4-4 shows the projected revenues from sewer service charges through FY 2028/29. The rate increase from the previous rate study ended in FY 2022/23 which resulted in FY 2023/24 having the same rate charged as FY 2022/23. The projected sewer revenues were calculated by multiplying the existing rates by the number of projected accounts.

Table 4-4 Projected Annual Revenues
Monthly Revenue 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Class 1 $114,247 $114,247 $114,247 $114,247 $114,247 $114,247 Class 2 $417 $417 $417 $417 $417 $417
$453 $453 $453 $453 $453 $453
Class 3
Class 4 $5,438 $5,438 $5,438 $5,438 $5,438 $5,438
Class 5 $907 $907 $907 $907 $907 $907
Class 6 $1,169 $1,169 $1,169 $1,169 $1,169 $1,169
Class 7 $714 $714 $714 $714 $714 $714
Total Annual Revenue $123,345 $123,345 $123,345 $123,345 $123,345 $123,345

4.3.3. Connection Fees
Sewer development fees (also referred to as connection fees) are required for all new construction that requires a sewer connection. The City charges a $650 fee per new connection. As presented earlier in Section 2.1., the 2020 US Census reported 432 housing units in the City of Maricopa. The vacancy rate was also reported by the as 5 percent. No connection fee revenue is projected through the end of the study period. This is consistent with recent years, when little to no new connections have been made to the sewer system. Table 4-5 shows the estimated revenues from connection fees based on the projected number of new connections.

Table 4-5 Projected Revenues from Connection Fees
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Number of new connections 0 0 0 0
Sewer Connection Fees $0 $0 $0 $0 $0

4.3.4. Sewer Impact Fees
Similar to connection fees, sewer impact fees vary year to year based on the amount of new development. Sewer impact fees are designed to fund sewer infrastructure upgrades associated with 20 (am)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
new development. The fees are not only related to the number of new connections but also the extent of upgrades required. For this reason, sewer impact fees are not recommended to fund regular operation and maintenance of the sewer system. Although sewer impact fees may be collected as needed, they are not projected due to uncertainty in new large-scale development. Revenue from sewer impact fees should be used to fund future improvements or added to the reserve fund.

4.4. Summary of Revenues
Based on the revenue projections presented in this Section, Tables 4-6 shows a summary of the projected sewer utilities revenues. The projected revenues consist entirely of service charges.

Table 4-6 Summary of Projected Sewer Revenues
Fiscal Year
Sewer Service Revenue 2025/26 2026/27 2027/28 2028/29
2023/24 | 2024/25
Use of Money and $0 $0 $0 $0 $0 $0
Property
Service Charge Revenue $123,345 $123,345 $123,345 $123,345 $123,345 $123,345 Connection Fees $0 $0 $0 $0
Total Revenue $123,345 $123,345 $123,345 $123,345 $123,345 |$123,345 Comparing Table 4-6 with Table 3-10 presented earlier, projected costs will exceed service revenue during ail five years of the study period. Therefore, rate adjustments will be required to provide adequate revenue to fund the sewer system. The following section provides an analysis of the rate structure.
21 (an
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 5 - Proposed Sewer Rates
SECTION 5 - PROPOSED SEWER RATES

5.1. Introduction
Prudent rate administration dictates that several criteria must be considered when setting or adjusting utility rates. Some of these rate setting criteria are listed below:

Rates should be easy to understand from the customer's perspective Rates should be easy for the utility to administer
Rates should consider the customer's ability to pay
Rates should be equitable and non-discriminatory (cost-based) Many contemporary rate economists and regulatory agencies feel the last consideration, cost-based rates, should be of paramount importance and provide the primary guidance to utilities on rate structure and policy.

It is important that the City provide its customers with a proper price signal as to the cost of sewer services. Through the preparation of this sewer rate study, all the above listed criteria were taken into consideration.

5.2. Basis of Sewer Rate Structure
Rates are typically dependent on three factors: flow, biochemical oxygen demand (BOD), and total suspended solids (TSS). There are no industrial connections to the sewer system that would be expected to contribute high BOD or TSS flow. The City's existing rate structure is based on a base rate for single family residential units. Some connections are charged a higher rate that is equivalent to their expected wastewater flow as compared to a single family residential unit.

It is recommended that the basis of the sewer rate structure remain the same as the existing structure.

Customers will pay a flat monthly rate based on their current classification. Any increases in the sewer rate will be applied as a percentage increase to all connections.

5.3. Cost vs. Revenue Comparison
Based on the analysis and projections of revenue requirements (costs) and revenues from service charges, this Section provides a comparison of the projected costs and revenues. Sewer utility funds are self-supporting enterprise funds. Thus, the projected revenue from user fees should meet a minimum the projected requirements to meet 0&M expenses.

Table 5-1 provides a comparison of the projected revenue requirements (costs) described in Section 3 and the projected sewer utility revenues using existing rates and presented in Section 4.

Table 5-1 Comparison of Projected Revenue Requirements and Projected Revenues 2023/24 2024/25 2025/26 2026/27 2027/28 / 2023/29
Revenue $199,027 $209,538 $213,300 $217,196 $221,229 $225,407 Requirements
Projected Revenues $123,345 $123,345 $123,345 $123,345 $123,345 $123,345 Excess/(Deficit) ($75,682) ($86,192) ($89,955) ($93,850) ($97,884) ($102,062) 22 (am)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 5 - Proposed Sewer Rates
Note that the sewer utility is unable to generate the projected revenue requirements for the upcoming fiscal years using the current sewer service charges. This indicates that the City will need to increase its sewer rates to meet project revenue requirements.

5.4. Proposed Sewer Rates
The current sewer rates for the City are simple and straight-forward. It is recommended that the rate structure maintain a customer class system.

The proposed sewer rate maintains a rate for accounts based on their usage classification. Classifications reflect the customer connections currently beings served. The customer classifications are defined as follows:
• Class 1: Single-family residences, duplexes and Triplexes (per dwelling unit); Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit); Class 3: Hotels/motels for owner/resident manager dwelling units (per dwelling unit); Class 4: Hotels and motels per guest room;
Class 5: Public assembly buildings including churches, synagogues, mosques and similar; • Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
• Class 7: Commercial establishments not otherwise listed in this User Schedule of sewer service fees.

Rate increases are applied as the same percentage across all classifications. Presented below in Table 5- 2 are the proposed annual rates through FY 2028/29. A more detailed analysis of the required sewer rates is included in Appendix D.

Table 5-2 Calculated Sewer Base Rates

FY FY FY FY FY
Existing Rate 2023/24 2024/25 2025/26 2026/27 2027/28
Class 1 $453,36 $770.16 $783.82 $798.13 $812.95 $828.31 Class 2 $417.12 $708.60 $721.17 $734.33 $747.97 $762.09 Class 3 $453.36 $770.16 $783.82 $798.13 $812.95 $828.31 Class 4 $135.96 $230.97 $235.06 $239.36 $243.80 $248.40 Class 5 $453.36 $770.16 $783.82 $798.13 $812.95 $828.31 Class 6 $1,168.80 51,985.55 $2,020.76 $2,057.66 $2,095.86 | $2,135.44 Class 7 $714.12 $1,213.14 $1,234.65 _$51,257.20 $1,280.54 | $1,304.72

5.5. Recommendations
This completes the analysis for the City's sewer utilities. The calculated rates are expected to generate enough revenues to adequately fund the City's sewer utilities. The sewer rate analysis, as developed, is based on estimates and projections of future costs, anticipated customer consumption and events. As those future costs, customer consumption and events vary from the projections contained herein, the City may need to adjust their rates in the future to reflect any significant differences between the projections contained herein and the actual costs incurred. am 23
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 5 - Proposed Sewer Rates
Given that, the City should closely monitor their revenues, costs and capital plans against this study to determine in a timely manner any significant variances and then take appropriate management and City Council action to reconcile any major differences.

5.6. Rate Comparison with Nearby Communities
As a part of this study, a comparison survey was developed to benchmark the City's sewer rates against several other surrounding communities, chosen based on proximity to the City, similarities in size and demographics. It should be noted that it is difficult to compare one city to another. System attributes such as age of infrastructure, density and topography of service area, and regulatory compliance issues can vary vastly from one city to another.

Consequently, while end user rates are ubiquitously used to benchmark an agency's performance, using rates as an isolated metric does not provide a strong basis for comparison. Rather, an agency's pursuit and achievement of "best practices" is the most appropriate measure. Data was collected from direct conversations with the surveyed agencies, from previous or ongoing rate studies performed by AMCE, and from public information available through each agencies website. In some cases, the results are subject to self-reporting of the agencies and were not corroborated with other sources to determine the accuracy of statements made.

The following table provides the rate comparison. Generally, the City's sewer rates are consistent with most of those surveyed, given the usage assumptions used in the comparison analysis. Rates reflect recovered costs at a point in time and cannot be used in isolation to determine how effectively a utility is being run.

Table 5-3 Sewer Rate Comparison
Monthly Sewer Annual Sewer
Wastewater Provider Rate
Rate
City of Arvin $47.65 $571.74
Wasco Sanitary District* $41.42 $497.04
North of the River Sanitary District $30.77 $369.24
City of Maricopa $37.78 $453.36
City of Shafter $29.92 $359.04
City of McFarland $26.25 $315.00
Laton CSD $45.63 $547.56
East Niles CSD $17.18 $206.16
* Sewer rates for the Wasco Sanitary District are based on water usage. The rate showr s based on a usage of 85 gallons per person per day and the US Census average household size of 3.61 persons.
24 Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 6 - Rate Increase Process
SECTION 6 - PROPOSED SEWER RATES

6.1. Proposition 218
Proposition 218, the "Right to Vote on Taxes Act", was approved by California voters in November 1996 and is codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 establishes requirements for imposing or increasing property related taxes, assessments, fees and charges. For many years, there was no legal consensus on whether water and sewer rates met the definition of "property relates fees". In July 2007, the California Supreme Court essentially confirmed that Proposition 218 applies to water rates. The prevailing legal consensus is that Proposition 218 also applies to wastewater rates.

Proposition 218 establishes certain procedural requirements for adopting rate increases. These requirements include:
• Noticing Requirement: The City must mail a notice of proposed rate increases to all affected property owners. The notice must specify the basis of the fee, the reason for the fee, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.
• Public Hearing: The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

Rate Increases Subject to Majority Protest: At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners submit written protests against the proposed rate increases, the increases cannot be adopted.

Proposition 218 also established a number of substantive requirements that are generally deemed to apply to utility service charges, including:
• Cost of Service: Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the "cost of service". • Intended Purpose: Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.
• Proportional Cost Recovery: The amount of the fee or charge levied on any customer shall not exceed the proportional cost of service attributable to that customer. • No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property. Standby charges shall be classified as "assessments" which are governed by Article 13D Section 4.

Proposition 218 requires that the City ensure that its wastewater rates reasonably reflect the cost of providing service to each customer. It is our opinion that rates can recover costs for operations, capital needs, debt service, administration, as well as costs related to the prudent long-term operational or financial management of the utility enterprise, such as maintaining adequate fund reserves and planning for contingencies. While Proposition 218 places a number of limitations on the City's rates, we believe that the City retains substantial latitude to determine actual utility charges provided they do not exceed the cost of providing service.

Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 6 - Rate Increase Process

6.2. AB3030
AB3030, which added Section 53756 to the California Government Code, went into effect on January 1, 2009. The new code clarifies that agencies that provide water, sewer, or refuse collection service may authorize a) automatic rate adjustments for inflation, and/or b) automatic rate pass-throughs for wholesale water charge increases. Pursuant to AB3030, these automatic increases cannot exceed five years and must be clearly defined in the Prop. 218 notice, such as by a formula explaining how the adjustment will be calculated. Additionally, notice of any automatic increase must be sent to ratepayers at least 30 days prior to implementation. If applicable, the City should consult with its legal counsel to ensure compliance with all legal requirements including AB3030.

Proposition 218, the "Right to Vote on Taxes Act", was approved by California voters in November 1996 and is codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 establishes requirements for imposing or increasing property related taxes, assessments, fees and charges. For many years, there was no legal consensus on whether water and sewer rates met the definition of "property relates fees". In July 2007, the California Supreme Court essentially confirmed that Proposition 218 applies to water rates. The prevailing legal consensus is that Proposition 218 also applies to wastewater rates.

Proposition 218 establishes certain procedural requirements for adopting rate increases. These requirements include:

1. Noticing Requirement: The City must mail a notice of proposed rate increases to all affected property owners. The notice must specify the basis of the fee, the reason for the fee, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.

2. Public Hearing: The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

3. Rate Increases Subject to Majority Protest: At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners submit written protests against the proposed rate increases, the increases cannot be adopted.

Proposition 218 also established a number of substantive requirements that are generally deemed to apply to utility service charges, including:

Cost of Service: Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the "cost of service".

Intended Purpose: Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.

3. Proportional Cost Recovery: The amount of the fee or charge levied on any customer shall not exceed the proportional cost of service attributable to that customer.

No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property. Standby charges shall be classified as "assessments" which are governed by Article 13D Section 4.

Proposition 218 requires that the City ensure that its wastewater rates reasonably reflect the cost of providing service to each customer. It is our opinion that rates can recover costs for operations, capital (am
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 6 - Rate Increase Process
needs, debt service, administration, as well as costs related to the prudent long-term operational or financial management of the utility enterprise, such as maintaining adequate fund reserves and planning for contingencies. While Proposition 218 places a number of limitations on the City's rates, we believe that the City retains substantial latitude to determine actual utility charges provided they do not exceed the cost of providing service.

Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Appendix A - Sewer Fund Revenues & Expenditures

APPENDIX A - SEWER FUND REVENUES & EXPENDITURES
(an
Consulting Engineers
CITY OF MARICOPA 23/24 25
Sewer Fund - 310 22/23
ADOPTED CURRENT Proposed Proposed

ADOPTED
2021-2022 2022-2023 MAY 30 2022 2023/2024 202412025
Sewer- Department 310
Revenue
120,000 135,000 108,799 120,000 120,000
310-44200 Sewer
Total Revenue 120,000 135,000 108,799 120,000 120,000
Expense
310-50000 18,501 20,193 16,592 21.001 21,001
A Salaries
310-50100 A Payroll Tax 1,500 1,500 1,250 1,500 1,500
310-50300 Employee Benefits 7,353 7.422 6,078 7,502 7,796 310-50400 2,000 2,000 1,300 2,000 2,000
Total Personnel Cost 29,364 31.115 26,220 32,003 32,297 Refunds 2,000 1,000 1,000 1,000
310-51800 D
310-52700 Professional Services 20,000 30,000 124,180 60,000 60,000 310-52600 Annual Audit 1,600 1,675 1,700 1,725 1,750
3,000 2,157 3,584 3,584
310-52300 D Utilities - PGE /Phone/Water 3,000
350 600 462 600 600
310-52900 A Fuel
50 50 50 50 50
310-53000 Contract Services
2,984 2,893 2,784 3,458 3,647
310-54000 A Liability Insurance
310-54400 Off Supp/Equip(54500,55000,53700)
310-52850 Dues-Wastewater Permits 23,500 27,000 25,410 27,000 27,000 D Lab Services (56000) 1,560 1,560 1,789 3.000 3,000
310-53510
310-54900 Maintenance (54800) 1,500 1,500 5,718 3,000 3,000 500 700 137 500 500
310-53800 Vehicles/ Vehicle Repair (55100)
A Misc. Supplies (55700) (55500) 200 300 110 300 300
310-55200
3,500 2,000 2,000
310-55000 Equipment Repair
310-56100 A Crime Prevention 200
310-68400 Transfer Out
Debt Service to Refuse Fund 6,250 6,250 6,250 6,250 6,250 310-57500 D
Total Other Cost 63,694 80,028 170,748 112,487 112,601
Total Sewer Cost 93,048 111,143 195,960 144,470 144.978

Page 7 ends

City of Maricopa
2024 Sewer Rate Study Update
Appendix B - Rate Increase Resolution

APPENDIX B - RATE INCREASE RESOLUTION
am)
Consülting Engineers
RESOLUTION NO 2018 - LL

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARICOPA DECLARING THE RESULT OF THE PROPOSITION 218 PROTEST COUNT FOR THE PROPOSED

NEW CITY SEWER RATES
WHEREAS, Proposition 218 was adopted on November 6t, 1996, adding Articles XIIIC and XIIID to the California Constitution; and WHEREAS, the City of Maricopa ("City") fees and rates for the sewer have remained fairly constant for many years, and the cost of providing sewer services to City customers has been going up; and
WHEREAS, the City Council authorized a comprehensive review of the City's sewer rates to be charged in order to have rates sufficient to meet the needs of the City's capital improvement projects and any and all other maintenance and operational costs and expenses; and
WHEREAS, the review was performed by City Consultant AM Consulting Engineers and a final Sewer Rate Study (the "Rate Study"), was submitted reviewed and approved by the City Council; and
WHEREAS, the City Council has taken the following actions: (1) approved and accepted the Rate Study as complete; (2) set a public hearing for June 12", 2018 at 6:00 p.m. at the Gusher Hall located at 251 California St., Maricopa, CA, to receive public comment on the Rate Study and then to consider adoption of the proposed sewer rates; and (3) authorized and directed the City's staff to mail the Proposition 218 notice to all sewer service rate payers; and
WHEREAS, City staff on or prior to April 13, 2018 mailed the Proposition 218 notice to all of the City's sewer service rate payers; and WHEREAS, from April 13"h, 2018 and until the close of the public hearing on June 12th, 2018, the City has accepted protests from sewer service rate powers who were sent the Proposition 218 notices; and
WHEREAS, a public hearing on the proposed new sewer rates was held on June , 2018, as specified in the Proposition 218 notice and at the end of the hearing, the City Council reported the results of the protest count; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maricopa as follows:

Findings: The City Council finds and determines as follows:
a. There are 285 sewer service customers within the City which receive the City's sewer services and who received notice of the proposed new sewer rates. b. The sewer rates set forth in the Rate Study have been fixed in amounts sufficient to pay the projected operating, maintenance, capital improvement costs of the City's sewer system.

The adoption of this resolution is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080(b)(8) and Section 15273 of the State CEQA Guidelines codified at 14 CCR §15273 because the resolution pertains to the adoption of rates necessary to maintain services with the City's existing service area.

Declaration of Results: The total number of valid protests timely received by the City does not constitute a majority of the rate payers mailed Proposition 218 notices.

3. Effect of Protests: The effect of the results of the protest count as described above is that the Board of Directors is authorized to adopt the proposed sewer rates attached as Exhibit "A".

4. Effective Dates: This resolution shall be in full force and effect upon its adoption.

Page 2 ends

-
PASSED, APPROVED AND ADOPTED at a regular meeting thereof held this 12th day of June, 2018.

NOES: Tont
ABSENT:

ABSTAIN:

Le Mock
GARY MOCK, Mayor
ATTEST: APPROVÉD AS TO FORM AND
EFFECT:

Larka
ALANA City Attorney

Page 3 ends

State of California)
County of Kern )
City of Maricopa /
1, Dianna Emfinger, City Clerk of the City of Maricopa, do hereby certify that the foregoing is a true and correct copy of Resolution No. 2018-/L which was duly and regularly adopted and passed at a Regular Meeting of the City Council of the City of Maricopa on the 12th day of June, 2018 by the following vote:

Est up Withe Mach
AYES: Bu
NOES: Tan his
ABSENT:

ABSTAIN:

DATED:
612-18
Casse
panna Emfinger, City Clerk

Page 4 ends

ORDINANCE NO. 2018-01

AN ORDINANCE OF THE CITY OF MARICOPA AMENDING THE MARICOPA MUNICIPAL CODE BY AMENDING CHAPTER 13.12, SECTION 13.12.040

ESTABLISHING NEW SEWER SERVICE RATES
WHEREAS, the City of Maricopa needs to maintain its sewer service to meet the needs of its residents to protect their health, safety and general welfare; and WHEREAS, the costs and expenses for providing sewer services to its residents keeps increasing; and
WHEREAS, the current rates for sewer services do not cover the actual costs of providing these services; and
WHEREAS, in order to maintain the City's current level of services for sewer for the protection of its residents' health, safety and general welfare, the City must increase its rates for sewer services to cover additional costs and expenses; and WHEREAS, the City has no other funds budgeted or available for the City to offset additional costs and expenses without jeopardizing other vital, valuable and necessary benefits and services that the City provides that protect its residents' health, safety and general welfare.

NOW THEREFORE, The City Council of the City of Maricopa, California, does ordain as follows:

Section 1. Maricopa Municipal Code Chapter 13.12, Section 13.12.040. is hereby amended as set forth in Exhibit "A" attached hereto and incorporated herein. residents the rate increases stalge ect the a of saly 74,20t goneral welfare of the Section 3. Severability. If any section, subsection, sentence, clause, or phrase of sentence, clause or phrase of this Ordinance in spite of the fact that any one or more of the same be declared unconstitutional or invalid.
of this Ordinance and to causerth is ordinance or a and mary the rot trity treparago according to law to be published in accordance with law in a newspaper of general circulation in the City.

PASSED AND ADOPTED this 26th of June, 2018, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF MARICOPA
dre Mock
BY
ATTEST: APPROVEL GASTO FORM
ianna Emfinger, City Cler
State of California
County or Kern
City of Maricopa
I, Dianna Emfinger, City Clerk of the City of Maricopa, do hereby certify that the foregoing is a true and correct copy of Ordinance No.2018-0L, which was regularly introduced and placed upon its first reading at a Regular Meeting of the city counci on the 12th day of June, 2018. That, thereafter, said Ordinance was duly adopted and passed at a Regular Meeting of the City Council on the 26nd day of June 2018 by the following vote:

AYES: Mock, Bell, Crump,tonkin, Wilke
NOES:

ABSENT:

ABSTAIN:

I do further certify that said Ordinance was published in the Taft Midway Driller, a weekly newspaper of general circulation, in accordance with law.

Alecsama.

Dianna Emfinger, City Clerke
DATED:
10/24/183
City of Maricopa
2024 Sewer Rate Study Update
Appendix C - 2018/19 Sewer Rate Schedule
APPENDIX C - 2018/19 SEWER RATE SCHEDULE
Constilting Engiueers
EXHIBIT "A"

13.12.040.A: The City's sewer rates are calculated on a flat rate based on customer class. Customer classes are defined as follows:
• Class 1: Single-family residences, duplexes and Triplexes (per dwelling unit);
• Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit);
• Class 8: Hotels/motels for owner/resident manager dwelling units (per dwelling unit);
• Class 4: Hotels and motels per guest room;
• Class 5: Public assembly buildings including churches, synagogues, mosques and similar;
Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
Class 7: Commercial establishments not otherwise listed in this class of customers.

The following sewer service charges calculated on a monthly basis shall be paid to the City as provided berein starting July Ist, 2018 and as increased each July Ist until otherwise changed.

Existing 2018/19 2019/20 2020/21 2021/22 2022/23
Rate
Class 1 $29.76 $83.92 $34.82 $35.76 $36.75 $37.78
Increase $4.16 $0.90 $0.94 $0.99 $1.03
Class 2 $27.38 $81.21 $32.04 $32.90 $33.81 $34.767
Increase $3.83 $0.83 $0.87 $0.91 $0.95
Class 3 $29:76 $88.92 $34.82 $35.76 $36.75 $37.78
Increase $4.16 $0.90 $0.94 $0.99 $1.03
Class 4 $8.93 $10.18 $10.18 $10.73 $11.03 $11.33
Increase $1.25 $0.27 $0.28 $0.30 $0.31
Class 5 $29.76 $83.92 $34.82 $85.76 $36.75 $37.78
Increase $4.16 $0.90 $0.94 $0.99 $1.03
Class 6 $76.72 $87.46 $89.77 $92.90 $94.74 $97.40
Increase $10.74 $2.32 $2.12 $2.04 $2.66
Class 7 $46.87 $53.43 $54.85 $56.33 $57.88 $59.61
Increase • $6.56 $1.42 $148 $1.5Б $1.68
City of Maricopa
Sewer Rate Study
Appendix D - Required Sewer Rates

APPENDIX D - REQUIRED SEWER RATES
an)
Consulting Engineers
City of Maricopa
Sewer Rate Study
Appendix D - Required Sewer Rates
Existing RateFY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Class 1 $37.78 $64.18 $65.33 $66.53 $69.04
Increase $26.40 51226
$1.15 $1.19 $1.28
Class 2 534.76 $59.05 $68.33 $69.70 $71.11 $72.58
Increase $24.29 $9.28 $1.37 $1.42 $1.47
Class 3 587.78 $64.18 $74.27 $75.75 $77.29 $78.88
Increase! $26.40 $10.09 $1.48 $1.54 $1.59
Class 4 $11.33 $19.25 $22.27 $22.72 $23.18 $23.66
Increase $7.92 $3.03 $0.45 $0.46 $0.48
Class 5 $37.78 $64.18 $74.27 $75.75 $77.29 $78.88
Increase $26.40 $10.09 $1.48 $1.54 $1.59
Class 6 $97.40 $187.77 $191.47 $195.30 $199.26 $203.37
Increase $90.37 $3.70 $3.83 $3.97 $4.11
Class 7 $59.51 $114.73 $116.98 $119.32 $121.75 $124.26
Increase $55.22 $2.26 $2.34 $2.42 $2.51
Percent Increase 69.88% 1.80% 1.83% 1.86% 1.89%

City of Maricopa

CORFORATED
• Маткор»,
ISSHM
05:28.2010 13:03 92A: 50 70.0000
2024 Sewer Rate Study Update "Scenario 3"
May 2024
Prepared by:

PROFESSION,
am

CING INEER
Consulting Engineers No. C63673
* /Exp. 9/30/24 *
5150 N Sixth Street, Suite 124, Fresno, CA 93710
P: 559.473.1371 / F: 559.513.8449 STATE OF CALIFORNIA CIVIL City of Maricopa
2024 Sewer Rate Study Update
Table of Contents

TABLE OF CONTENTS
EXECUTIVE SUMMARY.. .. 5
ES.1 Introduction..... ...5
ES.2 Rate Study Methodology... ...5
ES.2 Summary of Findings and Recommendations... .. 6
SECTION 1 - INTRODUCTION... ....7

1.1. Purpose of this Rate Study ... ..............7

1.2. Background Information. .....7

1.3. Goals and Objectives.. ....7
SECTION 2 - ECONOMIC, INCOME AND DEMOGRAPHIC INFORMATION ....9

2.1. Population Data. 9
....

2.2. Economic Status 9

2.3. Rate Affordability... ..10
SECTION 3 - REVENUE REQUIREMENTS ..12

3.1. Introduction.. ..12

3.2. Sewer Enterprise Fund ..12

3.2.1. Employee Salaries and Benefits.. ..12

3.2.2. Operations and Maintenance. ..13

3.2.3. Depreciation ..14

3.2.4. Existing Long-Term Debt ..15

3.2.5. New Long-Term Debt ..15

3.2.6. Reserve Requirements. ..15

3.2.7. Bad Debt ..16

3.2.8. Summary of Sewer Enterprise Fund Revenue Requirements ..16

3.2.9. Summary of Projected Sewer Enterprise Fund Revenue Requirements ..18 SECTION 4 - UTILITY REVENUES .19

4.1. Introduction... .19

4.2. Existing Sewer Rate......... .,19

4.3. Historical Revenues...... ..20

4.3.1. Use of Money and Property.... .20

4.3.2. Service Charges... ..20
City of Maricopa
2024 Sewer Rate Study Update
Table of Contents

4.3.3. Connection Fees... ..21

4.3.4. Sewer Impact Fees.. ...21

4.4. Summary of Revenues.. ...22
SECTION 5 - PROPOSED SEWER RATES ..23

5.1. Introduction. ...23

5.2. Basis of Sewer Rate Structure .. ..23

5.3. Cost vs. Revenue Comparison .. 23

5.4. Proposed Sewer Rates ..24

5.5. Recommendations... ..24

5.6. Rate Comparison with Nearby Communities.. ...25
SECTION 6 - PROPOSED SEWER RATES. ...26

6.1. Proposition 218 ...26

6.2. AB3030 ... ...27
APPENDIX A - SEWER FUND REVENUES & EXPENDITURES.. ...29 APPENDIX B - RATE INCREASE RESOLUTION...... ..30
APPENDIX C - 2018/19 SEWER RATE SCHEDULE ..31
APPENDIX D - REQUIRED SEWER RATES... ..32
List of Tables & Charts
Table ES-1 Summary of Recommended Sewer Base Rates .. ... 6 Table 2-1 Historical Housing and Population Statistics ...9 Table 2-2 Population and Housing Unit Projections.... ....9 Table 2-3 Population and Median Household Income .... . 10 Table 3-1 Employee Salaries and Benefits....... ......12 Table 3-2 Projected Employee Salaries and Benefits.. 13 Table 3-3 General O&M Costs.... ..13
Table 3-4 Projected General O&M Costs.. ..14
Table 3-5 Projected Utility Costs.. ..14
Table 3-6 Annual Depreciation .15
Table 3-7 Annual Existing Long-Term Debt Payments. ..15 Table 3-8 Projected Annual Bad Debt Expenses... ..16
Table 3-9 Summary of Sewer Enterprise Fund Requirements.. ..16 Chart 3-1 Revenue Requirements for FY 2020/21, FY 2021/22, and FY 2022/23 ...17 City of Maricopa
2024 Sewer Rate Study Update
Table of Contents
Table 3-10 Summary of Projected Sewer Enterprise Fund Requirements 18 Table 4-1 Existing Sewer Rates 19
Table 4-2 Historical Sewer Revenues... . 20
Table 4-3 Projected Number of Service Units... .21
Table 4-4 Projected Annual Revenues. ..21
Table 4-5 Projected Revenues from Connection Fees . 21
Table 4-6 Summary of Projected Sewer Revenues ..22
Table 5-1 Comparison of Projected Revenue Requirements and Projected Revenues.. .23 Table 5-2 Calculated Sewer Base Rates.. ..24
Table 5-3 Sewer Rate Comparison.................... ................25 City of Maricopa
2024 Sewer Rate Study Update
List of Abbreviations

ABBREVIATIONS
AWWA American Water Works Association
AMCE AM Consulting Engineers
BOD Biochemical Oxygen Demand
City City of Maricopa
FY Fiscal Year
MGD Million Gallons per Day
MHI Median Household income
TSS Total Suspended Solids
WDRS Waste Discharge Requirements
WEF Water Environment Federation
WWTP Wastewater Treatment Plant
iv
Constilting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction

According to the 2020 census, the population was 1,026, down from 1,154 at the 2010 census. The City encompasses approximately 1.5 square miles.

Conduct an independent review of the City's sewer rates and finances; Recommend sewer rate needed to recover the cost of providing service and maintain the sewer enterprise's long-term financial health;
• Phase in any necessary rate adjustments over time, to minimize the annual impact on ratepayers;
• Assist the City with the Proposition 218 rate-increase process and rate implementation, if applicable.

The following is a brief description of the three components:

Revenue Requirements: Revenue requirements are determined by developing a multi-year financial plan for the enterprises. The financial plan projects revenue and expenditures based on anticipated changes in the systems. Revenue incorporates revenue under the existing rate structure, anticipated growth in customer classes, and unique customer characteristics.

Expenditures incorporate operation & maintenance, debt service, and capital expenditures. • Cost of Service: Cost of service is the process of allocating the revenue requirements to functional cost components which are then assigned to specific customer classes. The cost of service is designed to assign costs associated with each customer class based on the demands they put on the system.
(om 5
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction
• Rate Design: Rate design consists of developing a rate structure that adequately recovers the revenue requirements through fixed and variable components yet remains equitable among the specific customer classes.

ES.2 Summary of Findings and Recommendations
The following are findings and recommendations described in this sewer rate study:

Automatic Rate Adjustment Factor: It is recommended that a rate adjustment factor be implemented for increases beyond the 5-year period considered in this rate study.

Recommended Sewer Rates: The proposed sewer rates maintain a flat rate based on customer class.

Presented below in Table ES-1 are the proposed sewer rates and rate adjustments through Fiscal Year 2028/29. The first-rate increase was recommended since July 1st, 2018. Customer classes are defined as follows:
• Class 1: Single-family residences, duplexes and Triplexes (per dwelling unit); Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit); Class 3: Hotels/motels for owner/resident manager dwelling units (per dwelling unit); Class 4: Hotels and motels per guest room;
Class 5: Public assembly buildings including churches, synagogues, mosques and similar; • Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
• Class 7: Commercial establishments not otherwise listed in this User Schedule of sewer service fees.

Table ES-1 Summary of Recommended Sewer Base Rates
Existing Rate 2024/25 2025/26 2026/27 | 2027/28 2028/29 Class 1 $453.36 $569.64 $583.30 $597,61 $612.43 $627.78 Class 2 $417.12 $524.10 $536.67 $549.84 $563.47 $577.60 Class 3 $453.36 $569.64 $583.30 $597.61 $612.43 $627.78 Class 4 $135.96 $170.83 $174.93 $179.22 $183.66 $188.27 Class 5 $453.36 $569.64 $583.30 $597.61 $612.43 $627.78 Class 6 $1,168.80 $1,468.57 $1,503.79 $1,540.68 $1,578.89 $1,618.47 Class 7 $714.12 $897.28 $918.79 $941.33 $964.68 $988.86 (am 6
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction
SECTION 1 - INTRODUCTION

1.3. Goals and Objectives
Basic objectives of this study include:
• Conduct an independent review of the City's sewer rates to determine revenue sufficiency to meet the O&M and capital expenditures of the City's sewer enterprises; Recommend sewer rate increases (if necessary) needed to recover the cost of providing service and maintain the sewer enterprise's long-term financial health; 7 Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 1 - Introduction
• Maintain good financial ratings by providing for a stable and reliable financial position so that debt issuance can be achieved at the lowest cost and that the City maintains eligibility for grants and loans;
Provide an introduction to the Proposition 218 rate-increase process and rate implementation. am 8
Consülting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 2 - Economic, Income and Demographic Information SECTION 2 - ECONOMIC, INCOME AND DEMOGRAPHIC

INFORMATION

Table 2-2 Population and Housing Unit Projections
Statistic 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Total Population 1,011 1,011 1,011 1,011 1,011 1,011
Decrease from previous year 0 0

2.2. Economic Status
Table 2-3 shows population and median household income (MHI) between 2018 and 2022 for incorporated cities within Kern County with a population of 50,000 or less. The data was obtained from the US Census Bureau. The City's MHI for 2022 was $45,685. According to the same source, the State of California MHI was $91,905. Thus, Maricopa's MHI was 49.7 percent of the State's MHI. 9 Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 2 - Economic, Income and Demographic Information Table 2-3 Population and Median Household Income
Median Household
City Population
Income
Ridgecrest 28,346 $85,872
Taft 7,034 $52,414
California City 15,172 $55,410
Tehachapi 12,389 $62,788
Shafter 21,282 $66,418
Wasco 27,731 $48,109
Arvin 19,611 $47,997
Maricopa 1,020 $45,685
McFarland 14,019 $42,641
Source: US Census Bureau 2018-2022 American
Community Survey 5-Year Estimates
Note that Maricopa has one of the lowest MHIs among incorporated cities in Kern County. Thus, rate affordability is of utmost importance to the City. A discussion regarding rate affordability is presented below.

This is true whether the community as a whole is wealthy or poor, and whether the average cost of water and sewer service is high or low.

Table 2-4 Affordability Criteria
Affordability Criteria
Between 1 percent and 2 percent for each utility
USEPA (water and sewer)

1.5 percent of MHI if City's MHI< State's MHI
CDPH 2.0 percent of MHI if City's MHI> State's MHI
AWWARF 2 percent per utility (4 percent combined)
10 Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 2 - Economic, Income and Demographic Information Based on these sources, it is suggested that a wastewater bill of 1.5 percent of MHI be used as a measure of rate affordability. According to that, the City's sewer rates should be less than $685.28 per year to be considered affordable. The City's base residential sewer rate is currently $453.36 per year,

66.2 percent of the maximum affordable rate.
11 Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
SECTION 3 - REVENUE REQUIREMENTS

3.2.1. Employee Salaries and Benefits
The final budget for sewer system employee salaries and benefits for FYs 2020/21 through 2022/23 are shown in Table 3-1.

Table 3-1 Employee Salaries and Benefits
Fiscal Year Fiscal Year Fiscal Year
2020/21 2021/22 2022/23
Employee Salaries $19,072 $20,204 $21,790
Payroll Tax $1,459 $1,546 $1,699
Employee Benefits $8,308 $9,416 $11,446
Workers Comp. $2,000 $2,000 $1,301
Total $30,839 $33,165 $36,236
ConsültingEngineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
An annual salary increase of 3 percent is used to project salaries through FY 2028/29. Table 3-2 shows the projected employee salaries and wages for the sewer enterprise through FY 2028/29.

3.2.2.1. General 0&M
Table 3-3 shows the general 0&M costs for FY 2020/21, FY 2021/21, and FY 2022/23.

Table 3-3 General O&M Costs
2020/21 2021/22 2022/23
Refunds $2,218 $112 $0
Professional Services $47,970 $77,575 $159,398
Annual Audit $1,600 $1,650 $1,700
Fuel $323 $531 $1,542
Liability Insurance $2,803 $2,819 $2,784
Office Supply/Equipment $45 $100 $3,965
Dues- Wastewater Permits $21,762 $25,834 $29,311
Lab Services $1,560 $1,650 $2,148
Maintenance $780 $470 $5,718
Vehicle Repair $182 $814 $369
Miscellaneous Supplies $86 $229 $136
Equipment Repair $63 $3,571
Crime Prevention
Total $79,392 $115,353 5207,071
Table 3-4 below shows the projected general O&M costs through FY 2028/29. Expenses for these general 0&M costs are based on FY 2020/21 actual costs and assumed to increase at 3% per year, with insurance and bonding assumed to increase at 10% per year. A large amount of general 0&M expenses are professional services. These services include the cost to inspect, flush, and repair the sewer collection system during blockages, among other services. (am 13
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
The cost increase in Maintenance & Operations observed in FY 21/22 and FY 22/23 is the consequence of emergency repairs in the collection system. Those repairs are not the norm and are not expected to continue in the future. Therefore, actual costs for FY's 21/22 & 22/23 are not considered when projecting future O&M costs.

Table 3-4 Projected General O&M Costs
2023/24* 2024/25 2025/26 2026/27 2027/28 2028/29
Refunds $1,000 $2,218 $2,284 $2,353 $2,423 $2,496
Professional Services $60,000 $47,970 $49,409 $50,892 $52,418 $53,991 Annual Audit $1,725 $1,600 $1,648 $1,697 $1,748 $1,801
Fuel $600 $323 $333 $343 $353 $364
Liability Insurance $3,458 $2,803 $3,083 $3,391 $3,730 $4,103 Office Supply/Equipment $45 $47 $48 $49 $51
Dues- Wastewater Permits $27,000 $21,762 $22,415 $23,087 $23,780 $24,493 Lab Services $3,000 $1,560 $1,607 $1,655 $1,705 $1,756
Maintenance $3,000 $780 $803 $827 $852 $878
Vehicle Repair $500 $182 $187 $193 $199 $205
Miscellaneous Supplies $300 $86 $89 $92 $94 $97
Equipment Repair $2,000 $63 $65 $66 $68 $71
Crime Prevention
Total $ 102,583 $ 79,392 $ 81,970 $ 84,645 $ 87,421 $ 90,305 *FY 2023/24 is Budgeted

The projected utility expenses through FY 2028/29 are shown in Table 3-5.

Table 3-5 Projected Utility Costs
2023/24* 2024/25 2025/26 2026/27 2027/28 2028/29
Utilities $3,584 $2,952 $3,041 $3,132 $3,226 $3,322
*FY 2023/24 is Budgeted

3.2.3. Depreciation
Depreciation of expenses is a means of recouping the cost of capital facilities over their useful lives and generating reserves for the replacement of those facilities. As a general financial guideline, a utility should fund, at a minimum, an amount within their rates an amount equal to the annual depreciation expense for renewal and replacement capital projects.
(an) 14
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
The City utilizes a straight-line method to calculate the annual depreciation of assets. Thus, the book value of each asset is reduced by equal amounts over their estimated useful life. The cost of maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Asset useful lives vary depending on the asset.

However, Depreciation has been removed from the projected revenue requirements as the City has been successfully obtaining grants to fund its sewer capital improvements and will continue funding improvements using a combination of grants and loans in the future. Table 3-6 shows the projected annual depreciation of fixed assets through FY 2028/29.

Table 3-6 Annual Depreciation
Fiscal Year
2023/24* 2024/25 2025/26 2026/27 2027/28 2028/29
Depreciation $54,557 $0 $0 $0 $0 $0
*FY 2023/24 is Budgeted

Table 3-7 Annual Existing Long-Term Debt Payments
Fiscal Year
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Long-Term Debt $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

Table 3-8 Projected Annual Bad Debt Expenses
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Bad Debt Expenses $3,074 $3,167 $3,262 $3,359 $3,460

3.2.8. Summary of Sewer Enterprise Fund Revenue Requirements Table 3-9 shows the summary of actual revenue requirements for FY 2020/21, FY 2021/22, and FY 2022/23.

Table 3-9 Summary of Sewer Enterprise Fund Requirements Fiscal Year
Expense
2020/21 2021/22 2022/23
Employee Salaries and Benefits $30,839 $33,165 $36,236
Maintenance and Operations $79,392 $115,353 $207,071
Utilities $2,843 $3,301 $2,712
Contract Services $50 $50
Existing Long Term Debt $0
Depreciation $54,558 $54,557 $54,557
Bad Debt $0 $0 $0
Reserve Funding $0 $0 $0
Total Revenue Requirements 5167,681 $206,426 $300,626
cam 16
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
Chart 3-1 below demonstrates the revenue requirements for FY 2020/21, FY 2021/22, and FY 2022/23.

Chart 3-1 Revenue Requirements for FY 2020/21, FY 2021/22, and FY 2022/23 Revenue Requirements
$300,000
a Maintenance and
$250,000 Operations
as Employee Salaries and
Benefits
$200,000
Utilities
5$150,000
a Depreciation
$100,000 aw Total Revenue
Requirements
$50,000
$0
2020/21 2021/22 2022/23
Fiscal Year
As shown in the chart above, there is a very significant increase in the Maintenance & Operations Cost.

As mentioned earlier, the cost increase in Maintenance & Operations observed in FY 21/22 and FY 22/23 is the consequence of emergency repairs in the collection system which are not expected to continue in the future.
17 an
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues

Also, Depreciation has been removed from the projected revenue requirements as the City has been successfully obtaining grants to fund its sewer capital improvements and will continue funding improvements using a combination of grants and loans in the future.

Table 3-10 Summary of Projected Sewer Enterprise Fund Requirements Fiscal Year
Expense 2027/28 2028/29
2023/24* 2024/25** 2025/26 2026/27
Employee Salaries and Benefits $32,003 $33,413 $34,416 $35,448 $36,512 $37,607 Maintenance and Operations $102,583 $79,392 $81,970 $84,645 $87,421 $90,305 Utilities $3,584 $2,952 $3,041 53,132 $3,226 $3,322
Contract Services $50 $52 $53 $55 $56 $58
Existing Long Term Debt $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 Depreciation $54,557 $0 $0 $0 $0 $0
Bad Debt $3,074 $3,167 $3,262 $3,359 $3,460
Reserve Funding $29,848 $29,848 $29,848 $29,848 $29,848 Total Revenue Requirements $199,027 $154,981 $158,743 $162,639 $166,672 $170,850 *FY 2023/24 is Budgeted
** FY 2024/25 is based on the averages from FY's 2020/21, 2021/22, and 2022/23. 18 Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
SECTION 4 - UTILITY REVENUES

4.2. Existing Sewer Rates
Ordinance No. 2018-01 of the City's Municipal Code adopted on June 26*h, 2018, establishes previous sewer rates that were charged to customers for sewer services. A copy of Ordinance No. 2018-01 is included in Appendix B. The adopted rate schedule is included in Appendix C. The ordinance includes provisions for inflationary increases during the first 5 years. The sewer rates for current connections can be classified into 7 groups which are, based on equivalent usage as compared to a single- family residence. Class 1, which is the base sewer rate (equivalent single-family residence), is a flat service charge of $453.36. The other classes increase proportionally based on anticipated sewer flows.

The number of service units for each classification are shown in Table 4-1 below Table 4-1 Existing Sewer Rates
Classification Current Rate Number of Service Units
Class 1 $453.36 252
Class 2 $417.12 1
Class 3 $453.36 1
Class 4 $135.96 40
Class 5 $453.36 2
Class 6 $1,168.80 1
Class 7 $714.12 1
19 am
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues

4.3.2. Service Charges
Projected wastewater flows are directly related to the projected population growth. Population growth and housing unit projections for the City were presented in Section 2.1 of this study. For purposes of projecting revenues for the wastewater enterprise fund, it is assumed that the annual increase/decrease in the number of residential accounts will be equal to the number of additional/fewer housing units (or connections) each year (see Table 2-2). Since population growth/decline has been very low since 2000, no population growth is assumed as a conservative estimate. Table 4-3 shows the projected number of service units through FY 2028/29.
20 (am
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
Table 4-3 Projected Number of Service Units
Classification 2023/24 2024/25 2025/26 | 2026/27 2027/28 2028/29 Class 1 252 252 252 252 252 252
Class 2 1 1 1 1 1
Class 3 1 1 1 1 1
Class 4 40 40 40 40 40
Class 5 2 2 2
Class 6 1
Class 7 1 1
Total Number of Service Units 298 298 298 298 298 298
Table 4-4 shows the projected revenues from sewer service charges through FY 2028/29. The rate increase from the previous rate study ended in FY 2022/23 which resulted in FY 2023/24 having the same rate charged as FY 2022/23. The projected sewer revenues were calculated by multiplying the existing rates by the number of projected accounts.

Table 4-4 Projected Annual Revenues
Monthly Revenue 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Class 1 $114,247 $114,247 $114,247 $114,247 $114,247 $114,247 Class 2 $417 $417 $417 $417 $417 $417
Class 3 $453 $453 $453 $453 $453
Class 4 $5,438 $5,438 $5,438 $5,438 $5,438 $5,438
Class 5 $907 $907 $907 $907 $907 $907
Class 6 $1,169 $1,169 $1,169 $1,169 $1,169 $1,169
Class 7 $714 $714 $714 $714 $714 $714
Total Annual Revenue $123,345 $123,345 $123,345| $123,345 $123,345 $123,345

Table 4-5 Projected Revenues from Connection Fees
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Number of new connections 0
Sewer Connection Fees $0 $0 $0 $0 $0

4.3.4. Sewer Impact Fees
Similar to connection fees, sewer impact fees vary year to year based on the amount of new development. Sewer impact fees are designed to fund sewer infrastructure upgrades associated with 21 an
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 4 - Utility Revenues
new development. The fees are not only related to the number of new connections but also the extent of upgrades required. For this reason, sewer impact fees are not recommended to fund regular operation and maintenance of the sewer system. Although sewer impact fees may be collected as needed, they are not projected due to uncertainty in new large-scale development. Revenue from sewer impact fees should be used to fund future improvements or added to the reserve fund.

Table 4-6 Summary of Projected Sewer Revenues
Fiscal Year
Sewer Service Revenue 2024/25 / 2027/28 2028/29
2023/24 2025/26 2026/27
Use of Money and $0 $0 $0 $0 $0
Property
Service Charge Revenue $123,345 $123,345 $123,345 $123,345 $123,345 $123,345 Connection Fees $0 $0 $0 $0 $0 $0
Total Revenue $123,345 $123,345 $123,345 $123,345 $123,345 $123,345 Comparing Table 4-6 with Table 3-10 presented earlier, projected costs will exceed service revenue during all five years of the study period. Therefore, rate adjustments will be required to provide adequate revenue to fund the sewer system. The following section provides an analysis of the rate structure.
22 am
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 5 - Proposed Sewer Rates
SECTION 5 - PROPOSED SEWER RATES

5.1. Introduction
Prudent rate administration dictates that several criteria must be considered when setting or adjusting utility rates. Some of these rate setting criteria are listed below:

It is recommended that the basis of the sewer rate structure remain the same as the existing structure.

Customers will pay a flat monthly rate based on their current classification. Any increases in the sewer rate will be applied as a percentage increase to all connections.

Table 5-1 provides a comparison of the projected revenue requirements (costs) described in Section 3 and the projected sewer utility revenues using existing rates and presented in Section 4.

Table 5-1 Comparison of Projected Revenue Requirements and Projected Revenues 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Revenue $199,027 $154,981 $158,743 $162,639 $166,672 $170,850 Requirements
Projected Revenues $123,345 $123,345 $123,345 $123,345 $123,345 $123,345 Excess/(Deficit) ($75,682) ($31,635) ($35,398) ($39,293) ($43,327) ($47,505) am) 23
Consulting Engincers
City of Maricopa
2024 Sewer Rate Study Update
Section 5 - Proposed Sewer Rates
Note that the sewer utility is unable to generate the projected revenue requirements for the upcoming fiscal years using the current sewer service charges. This indicates that the City will need to increase its sewer rates to meet project revenue requirements.

5.4. Proposed Sewer Rates
The current sewer rates for the City are simple and straight-forward. It is recommended that the rate structure maintain a customer class system.

Class 1: Single-family residences, duplexes and Triplexes (per dwelling unit); Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit); Class 3: Hotels/motels for owner/resident manager dwelling units (per dwelling unit); Class 4: Hotels and motels per guest room;
Class 5: Public assembly buildings including churches, synagogues, mosques and similar; Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
Class 7: Commercial establishments not otherwise listed in this User Schedule of sewer service fees.

Table 5-2 Calculated Sewer Base Rates

FY FY FY FY FY
Existing Rate 2023/24 2024/25 2025/26 2026/27 2027/28
Class 1 $453.36 $569.64 $583.47 $597.78 $612.61 $627.97 Class 2 $417.12 $524.10 $536.83 $550.00 $563.64 $577.77 Class 3 $453.36 $569.64 $583.47 $597.72 $612.61 $627.97 Class 4 $135.96 $170.83 $174.98 $179.27 $183.72 $188.32 Class 5 $453.36 $569.64 $583.47 $597.78 $612.61 $627.97 Class 6 $1,168.80 $1,468.57 $1,504.23 $1,541.14 $1,579.36 $1,618.95 Class 7 $714.12 $897.28 $919.06 $941.61 $964.97 $989.16

5.5. Recommendations
This completes the analysis for the City's sewer utilities. The calculated rates are expected to generate enough revenues to adequately fund the City's sewer utilities. The sewer rate analysis, as developed, is based on estimates and projections of future costs, anticipated customer consumption and events. As those future costs, customer consumption and events vary from the projections contained herein, the City may need to adjust their rates in the future to reflect any significant differences between the projections contained herein and the actual costs incurred. ar 24
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 5 - Proposed Sewer Rates
Given that, the City should closely monitor their revenues, costs and capital plans against this study to determine in a timely manner any significant variances and then take appropriate management and City Council action to reconcile any major differences.

Table 5-3 Sewer Rate Comparison
Monthly Sewer Annual Sewer
Wastewater Provider
Rate Rate
City of Arvin $47.65 $571.74
Wasco Sanitary District* $41.42 $497.04
North of the River Sanitary District $30.77 $369.24
City of Maricopa $37.78 $453.36
City of Shafter $29.92 $359.04
City of McFarland $26.25 $315.00
Laton CSD $45.63 $547.56
East Niles CSD $17.18 $206.16
* Base on fore a co a per person are ayadone at us are rate shown household size of 3.61 persons.
(am) 25
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 6 - Rate Increase Process
SECTION 6 - PROPOSED SEWER RATES

Public Hearing: The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 6 - Rate Increase Process

Proposition 218, the "Right to Vote on Taxes Act", was approved by California voters in November 1996 and is codified as Articles XIIIC and XIlID of the California Constitution. Proposition 218 establishes requirements for imposing or increasing property related taxes, assessments, fees and charges. For many years, there was no legal consensus on whether water and sewer rates met the definition of "property relates fees". In July 2007, the California Supreme Court essentially confirmed that Proposition 218 applies to water rates. The prevailing legal consensus is that Proposition 218 also applies to wastewater rates.

Proposition 218 establishes certain procedural requirements for adopting rate increases. These requirements include:

2. Public Hearing: The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

Proposition 218 also established a number of substantive requirements that are generally deemed to apply to utility service charges, including:

1. Cost of Service: Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the "cost of service".

Intended Purpose: Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.

Proportional Cost Recovery: The amount of the fee or charge levied on any customer shall not exceed the proportional cost of service attributable to that customer.

Proposition 218 requires that the City ensure that its wastewater rates reasonably reflect the cost of providing service to each customer. It is our opinion that rates can recover costs for operations, capital (am)
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Section 6-- Rate Increase Process
needs, debt service, administration, as well as costs related to the prudent long-term operational or financial management of the utility enterprise, such as maintaining adequate fund reserves and planning for contingencies. While Proposition 218 places a number of limitations on the City's rates, we believe that the City retains substantial latitude to determine actual utility charges provided they do not exceed the cost of providing service.
am
Consulting Engineers
City of Maricopa
2024 Sewer Rate Study Update
Appendix A - Sewer Fund Revenues & Expenditures

APPENDIX A - SEWER FUND REVENUES & EXPENDITURES
(an
Consülting Engineers
CITY OF MARICOPA 23/24 125
22/23
Sower Fund - 310
ADOPTED CURRENT Proposed Proposed

ADOPTED
2021-2022 2022-2023 MAY 30 2022 202312024 2024/2025
Sower- Department 310
Revenue
310-44200 Sewer 120,000 135,000 108,799 120,000 120,000 Total Revenue 120,000 135,000 108,789 120,000 120,000
Expense
310-50000 18,501 20,193 16,592 21.001 21,001
A Salaries
310-50100 A Payroll Tax 1,500 1,500 1,250 1,500 1,500
310-50300 Employee Benefits 7,353 7.422 6,078 7502 7,796 310-50400 Workers Comp. 2,000 2,000 | 1,300 2,000 2,000 Total Personnel Cost 29,364 31.116 25,220 32,003 32,297 2,000 1,000 1,000 1,000
310-51800 D Refunds
D 20,000 30.000 124,180 60,000 60,000
310-52700 Professional Services
A 1,600 1,675 1,700 1.725 1,750
310-52600 Annual Audit
Utilities - PGE /Phone/Water 3,000 3,000 2,157 3,584 3,584 310-52300 D
350 600 462 600 600
310-52900 Fuel
50 50 50 50 50
310-53000 D Contract Services
2,984 2,893 2,784 3,458 3,647
310-54000 A Liability Insurance
310-54400 A Off Supp/Equip(54500,55000,53700)
D Dues-Wastewater Permits 23,500 27,000 25,410 27,000 27,000 310-52850
1,560 1,560 1,789 3,000 3,000
310-53510 D Lab Services 56000)
D 1,500 1,500 5,718 3,000 3,000
310-54900 Maintenance (54800)
700 137 500 500
310-53800 A Vehicles/ Vehicle Repair (55100) 500
200 300 110 300 300
310-55200 A Misc. Supplies (55700) (55500)
3,500 2,000 2,000
310-55000 Equipment Repair
310-56100 LA Crime Prevention 200
310-68400 Transfer Out 6,250
310-57500 Debt Service to Refuse Fund 6,250 6,250 6,250 6,250 Total Other Cost 63,694 80,028 170,748 112,467 112,681
93,048 111,143 195,968 144,470 144,978
Total Sewer Cost

Page 7 ends

City of Maricopa
2024 Sewer Rate Study Update
Appendix B - Rate Increase Resolution

APPENDIX B - RATE INCREASE RESOLUTION
(an
ConsültingEngineers
RESOLUTION NO 2018 - IL

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARICOPA DECLARING THE RESULT OF THE PROPOSITION 218 PROTEST COUNT FOR THE PROPOSED

NEW CITY SEWER RATES
WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIIIC and XIIID to the California Constitution; and WHEREAS, the City of Maricopa ("City") fees and rates for the sewer have remained fairly constant for many years, and the cost of providing sewer services to City customers has been going up; and
WHEREAS, the City Council authorized a comprehensive review of the City's sewer rates to be charged in order to have rates sufficient to meet the needs of the City's capital improvement projects and any and all other maintenance and operational costs and expenses; and
WHEREAS, the review was performed by City Consultant AM Consulting Engineers and a final Sewer Rate Study (the "Rate Study"), was submitted reviewed and approved by the City Council; and
WHEREAS, the City Council has taken the following actions: (1) approved and accepted the Rate Study as complete; (2) set a public hearing for June 12" ', 2018 at 6:00 p.m. at the Gusher Hall located at 251 California St., Maricopa, CA, to receive public comment on the Rate Study and then to consider adoption of the proposed sewer rates; and (3) authorized and directed the City's staff to mail the Proposition 218 notice tó all sewer service rate payers; and
WHEREAS, City staff on or prior to April 13, 2018 mailed the Proposition 218 notice to all of the City's sewer service rate payers; and WHEREAS, from April 13th ", 2018 and until the close of the public hearing on June 12", 2018, the City has accepted protests from sewer service rate powers who were sent the Proposition 218 notices; and
WHEREAS, a public hearing on the proposed new sewer rates was held on June 12"h, 2018, as specified in the Proposition 218 notice and at the end of the hearing, the City Council reported the results of the protest count; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maricopa as follows:

1. Findings: The City Council finds and determines as follows:
a. There are 285 sewer service customers within the City which receive the City's sewer services and who received notice of the proposed new sewer rates.

The sewer rates set forth in the Rate Study have been fixed in amounts sufficient to pay the projected operating, maintenance, capital improvement costs of the City's sewer system.

C. The new sewer rates are reasonably related to, and do not exceed, the City's cost of providing the sewer services for the City and will not be used for any other purpose.
d. The City has provided the required written notice in accordance with Article XIIID of the California State Constitution.
e. The City received a total of timely-filed protests.
f. The City Council conducted a duly noticed public hearing on June 12, 2018, at which time the public had the opportunity to speak to the City Council regarding the proposed increases and the City Council considered the testimony received prior to making a final decision to adopt the proposed rate.
g. The adoption of this resolution is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080(b)(8) and Section 15273 of the State CEQA Guidelines codified at 14 CCR §15273 because the resolution pertains to the adoption of rates necessary to maintain services with the City's existing service area. notices.

Effect of Protests: The effect of the results of the protest count as described above is that the Board of Directors is authorized to adopt the proposed sewer rates attached as Exhibit "A".

4. Effective Dates: This resolution shall be in full force and effect upon its adoption.

Page 2 ends

-
PASSED, APPROVED AND ADOPTED at a regular meeting thereof held this 12th day of June, 2018.

AYES: Bur Quip withe Mach
NOES: Tontin
ABSENT:

ABSTAIN:

Len Mock
GARYMOCK, Mayor
ATTEST: APPROVED AS TO FORM AND
EFFECT:

ALAN- City Attorney

Page 3 ends

State of California)
County of Kern )
City of Maricopa )
1, Dianna Emfinger, City Clerk of the City of Maricopa, do hereby certify that the foregoing is a true and correct copy of Resolution No. 2018-/, which was duly and regularly adopted and passed at a Regular Meeting of the City Council of the City of Maricopa on the 12th day of June, 2018 by the following vote:

AVES: Bused up Withe Mick
NOES: Tawbien
ABSENT:

ABSTAIN:

DATED:
6-1218
Dans minger, City Cien t

Page 4 ends

ORDINANCE NO. 2018-01

AN ORDINANCE OF THE CITY OF MARICOPA AMENDING THE MARICOPA MUNICIPAL CODE BY AMENDING CHAPTER 13.12, SECTION 13.12.040

NOW THEREFORE, The City Council of the City of Maricopa, California, does ordain as follows:

Section 1. Maricopa Municipal Code Chapter 13.12, Section 13.12.040. is hereby amended as set forth in Exhibit "A" attached hereto and incorporated herein. residents the rate reades shal go ict the a or safe 4, 20l general welfare of its Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is, for any reason, held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause or phrase of this Ordinance in spite of the fact that any one or more of the same be declared unconstitutional or invalid.

Section 4. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance and to cause this Ordinance or a summary thereof to be prepared according to law to be published in accordance with law in a newspaper of general circulation in the City.

PASSED AND ADOPTED this 26th of June, 2018, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF MARICOPA
Mak
BY
Gary Mock, Mayor
ATTEST: APPROVEL No FORM
BY filianno C BY_
Diana manger, cryers Alan Paye, Cily Attorney
State of California
County of Kern
City of Maricopa
1, Dianna Emfinger, City Clerk of the City of Maricopa, do hereby certify that the foregoing is a true and correct copy of Ordinance No.2018-OL, which was regulariy introduced and placed upon its first reading at a Regular Meeting of the city council on he 12th day of June, 2018. That, thereafter, said Ordinance was duly adopted anc passed at a Regular Meeting of the City Council on the 26nd day of June 2018 by the following vote:

AYES: Mock, Bell, Crump,tonkin, Wilke
NOES:

ABSENT:
•
ABSTAIN:
1 do further certify that said Ordinance was published in the Taft Midway Driller, a weekly newspaper of general circulation, in accordance with law.

Dianna Emfinger, City Clerk
DATED:
10/26/18
City of Maricopa
2024 Sewer Rate Study Update
Appendix C - 2018/19 Sewer Rate Schedule
APPENDIX C - 2018/19 SEWER RATE SCHEDULE
Consulting Engineers
EXHIBIT "A"

13.12.040.A: The City's sewer rates are calculated on a flat rate based on customer class. Customer classes are defined as follows:
• Class I: Single-family residences, duplezes and Triplezes (per dwelling unit;
• Class 2: Multiple-unit apartments with four or more dwelling units (per dwelling unit);
• Class 8: Hotels/motels for owner/resident manager dwelling units (per dwelling unit);
• Class 4: Hotels and motels per guest room;
• Class 5: Public assembly buildings including churches, synagogues, mosques and similar;
Class 6: Public and private schools and colleges per one hundred students (ADA), or fraction thereof;
Class 7: Commercial establishments not otherwise listed in this class of customers.

The following sewer service charges calculated on a monthly basis shall be paid to the City as provided berein starting July Ist, 2018 and as increased each July Ist until otherwise changed.

Existing 2018/19 2019/20 2020/21 2021/22 2022/28
Rate
Class 1 $29.76 $38.92 $34.82 $35.76 $36.75 $37.78
Increase $4.16 $0.90 $0.94 $6.99 $1.03
Class 2 $27.38 $31.21 $32.04 $32.90 $33.81 $34.76
Increase $3.83 $0.83 $0.87 $0.91 $0.96
Class 3 $29:76 $33.92 $34.82 $35.76 $136.715 $37.78
Increase $4.16 $0.90 $0.94 $0.99 $1.08
Class 4 $8.93 $10.18 $10.45 $10.73 $11.03 $11.83
Increase $1.25 $0.27 $0.28 $0.30 $0.31
Class 5 $29.76 $33.92 $34.82 $35.76 $36.75 $37.78
Increase $4.16 $0.90 $0.94 $0.99 $1.03
Class 6 $76.72 $87.46 $89.77 $92.90 $94.74 $97.40
Increase $10.74 $2.32 $2.42 $2.54 $2.66
Class 7 $46.87 $Б3.43 $64.85 $56.38 $57.88 $69.61
Increase • $6.56 $1.42 $1.48 $1.55 $1.68
City of Maricopa
Sewer Rate Study
Appendix D - Required Sewer Rates

APPENDIX D - REQUIRED SEWER RATES
Consulting Ergineers
City of Maricopa
Sewer Rate Study
Appendix D - Required Sewer Rates
Existing Rate FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 | FY 2028/29 Class 1 $37.78 $47.47 $48.62 $49.82 $51.05 $52.33
Increase $9.69 $1.15 $1.19 $1.24 $1.28
Class 2 $34.76 $43.68 $44.74 $45.83 $46.97 $48.15
Increase $8.92 $1.06 $1.10 $1.14 $1.18
Class 3 $37.78 $47.47 $48.62 $49.82 $51.05 $52.33
Increasel $9.69 $1.15 $1.19 $1.24 $1.28
Class 4 $11.33 $14.24 $14.58 $14.94 $15.31 $15.69
Increase $2.91 $0.35 $0.36 $0.37 $0.38
Class 5 $37.78 $47.47 $48.62 $49.82 $51.05 $52.33
Increase $9.69 $1.15 $1.19 $1.24 $1.28
Class 6 $97.40 $122.38 $125.35 $128.43 $131.61 $134.91
Increase $24.98 $2.97 $3.08 $3.19 $3.30
Class 7 $59.51 $74.77 $76.59 $78.47
$80.41 $82.43
Increase $15.26 $1.82 $1.88 $1.95 $2.02
Percent Increase E 25.65% 2.43% 2.45% 2.48% 2.51%
XI-b

AGENDA ITEM
TITLE: Cooling Center Program 2024
PROPOSED BY: Eric G. Ziegler
MEETING DATE: May 14, 2024

RECOMMENDATION
Discuss/Provide Direction re Cooling Center Program for 2024.

BACKGROUND
Staff has received an inquiry from Kern County regarding its Cooling Center Program for this summer. For the past several years, the City of Maricopa has been partnering with the county in operating Gusher Hall as a local cooling center when conditions warrant.

The operational aspects of the program are essentially the same as in years past in terms of temperature thresholds, hours of operation and similar issues, such as the city will be reimbursed for the cost of Cooling Center Attendant and;
Cooling Center will:

Begin operation June 1, 2024 through September 22, 2024 Will be open on days when temperatures reach 105 degrees or higher. • Be open from 1pm- 8pm 7 days a week.

Attached hereto is the most recent Memorandum of Understanding between the city and Kern County Aging and Adult Services which administers the Cooling Center program. This MOU was adopted in by the City Council in 2019 and carries over from year to year unless terminated by either party. For the past four years...including the current year...the city has simply been asked to confirm its continued participation in the program which is the matter before the Council at present.

If Council elects to continue participating in this program (which staff recommends), no action is necessary. If it wishes to decline participation, a motion to do so is required City Adm.

Approval FISCAL IMPACT:
$
Yes LINo Amount Required
Eric G. Ziegler Funds Budgeted:

Amount Budgeted Appropriation Requested
-Account Number Reviewed by Finance
[email protected]
From: David Poole <[email protected]>
Sent: Monday, April 15, 2024 4:54 PM
To: Jeff Jones; [email protected]; [email protected]; Angela Domingos; [email protected]; Andres Villasenor; [email protected]; [email protected]; Stephanie Molina; Christina Guevara; Leslie Wallace; [email protected]; [email protected]
Cc: Colleen Philley; Jeremy Oliver
Subject: 2024 Cooling Center Season
Good Afternoon,
As you know, the Cooling Center season is quickly approaching and I am reaching out to see if you plan to continue participating in the Cooling Center program again this year. The Cooling Center Program will begin Saturday June 1, 2024 and will be open through Sunday Sept. 22, 2024. As a reminder, Cooling Centers will open throughout the County when temperatures are forecast by the National Weather Service (NWS) to be 105 degrees or higher in the San Joaquin and Kern River Valleys, 108 degrees or higher in the desert areas, and 93 degrees or higher in Frazier Park. The Cooling Centers will receive a daily report via email by 11:00 AM on the day before the Centers are to be open. Weekend Cooling Center openings will be released by 11:00 AM on Friday. Monday Cooling Center openings will be released by 11:00 AM on Sunday. The centers will be open from 1:00-8:00 PM. To operate as a Cooling Center, you will need to complete attendance sheets for the days the Cooling Centers are open, whether anyone was in attendance, or not. Sites that operate as Cooling Centers in coordination with the County will be reimbursed for staffing, water, and snacks. To receive reimbursement, you will need to keep records and receipts for all expenses related to the program and submit this accounting, alongwith an invoice to myself at the end of the Cooling Center season.

If you do not wish to participate in this season's program, or if you plan to operate independently from the County, please let me know ASAP. Otherwise, please reply to this email confirming your plan to participate in the 2024 season program by April 26th. Please include the name and location(s) of the facility, as well as the name and telephone number of a primary and backup contact for your Cooling Center. If you are interested in operating a Cooling Center independently from the County, you must complete the 2024 Cooling Center Application before the deadtine of April 30th, 2024.

I look forward to working with you this coming season. Please do not hesitate to reach out should you have any questions.

Sincerely,
David Poole
Assistant Program Director
Cooling Center Project/Program Manager
Phone: 661-868-0896
Fax: 661-868-0991
[email protected]
1 MEMORANDUIA OF UNDERSTANDING

FOR PARTNERSHIP OF THE KERN COUNTY COOLING CENTER PROGRAM (Aging and Adult Services-City of Maricopa)
THIS AGREEMENT ("Agreement") is made and entered into on May 14, 2019 ("Execution Date"), by and between the County of Kern, a political subdivision of the State of California ("County") as WHEREAS:
a. Government Code Sections 31000 and 53060 permit the County Board of Supervisors to contract for the furnishing of special services with individuals specially trained, experienced and competent to perform those services; and The purpose of the Kern County Cooling Center Program is to provide locations throughout Kern County where seniors, the disabled and other vulnerable individuals can go to seek relief from extreme heal; and DEPARTMENT is responsible for administering a Cooling Center Program in Kern County; and
CONTRACTOR has the space available to provide a Cooling Center location at PREMISES; and
e. DEPARTMENT and CONTRACTOR wish to partner with one another for the purpose and benefit of the Kern County Cooling Center Program; and Department and Contractor mutually agree as follows:

DEFINITIONS
A. Standard Cooling Center Season shall mean June 1st through September 22nd.

B. Shoulder Cooling Center Season shall mean a designated time period outside of the Standard Cooling Center Season, when extreme temperatures may occur.

C. Trigger Event shall mean activation of a Cooling Center location whenever the National Weather Service (NWS) forecast predicts the temperature for the following day to meet or exceed extreme temperatures.

D. Extreme Temperatures shall mean a forecast by the NWS that meets the following:

1. 95° or higher in locations within the Mountain Communities

2. 105° or higher for locations within the San Joaquin Valley 1 3. 108° or higher for locations within the Deseri Areas E. Cooling Center operational hours shall mean seven (7) days a week, including holidays from 1:00 PM to 8:00 PM.

F. Cooling Center Notification shall mean the daily email announcement, identifying the status of Cooling Center openings for the following day. Notifications covering weekends and holidays will be sent on the Friday or business day preceding the weekend or holiday.

TERM
This MOU shall commence on May 1, 2019, and shall remain in effect until and unless sooner terminated as hereinafter provided for in this MOU. Regardless of the previously stated term, CONTRACTOR and/or DEPARTMENT shall have the opportunity to decline participation in any given Cooling Center Season without the need to terminate this MOU.

RESPONSIBILITIES OF CONTRACTOR
CONTRACTOR shall assume responsibility for providing the following services:

A. Provide a premises that will serve as a Cooling Center location.

B. That the Cooling Center location will be accessible to individuals with disabilities.

C. Provide DEPARTMENT with contact information of the individual(s) designated to receive daily email notification. on behalf of CONTRACTOR, regarding Cooling Center activation. Contact information shall include at a minimum, the name and email address of the designated individuals).

D. Agree that the Cooling Center location may be listed through the PG&E and/or County automated phone line, website, informational flyer, or other information provided to the public;
E. Distribute or make available PG&E or other Utility financial assistance and other informational brochures that are provided by DEPARTMENT.

F. Provide complimentary water to those visiting the Cooling Center.

G. Complete the designated daily sign-in sheet for those who visit the Cooling Center.

H. Provide completed sign-in sheets to DEPARTMENT on a monthly basis, for program tracking and reporting requirements..

I. Abide by the established "trigger" and operational Cooling Center guidelines.

J. Provide any other information that shall be required for reporting purposes.

K. Provide a staff member or other authorized individual to open and operate the Cooling Center during the required days and hours of operation (including weekends and holidays if necessary).

4. RESPONSIBILITIES OF DEPARTMENT
DEPARTMENT shall assume responsibility for providing the following services:

A. Ensure that a daily email notification will be issued regarding Cooling Center activation for the following day.

B. Provide bottled drinking water and light snacks to the agreed upon Cooling Center Location, funding permitting.

C. Provide CONTRACTOR with Utility financial assistance and other informational brochures, as is made available to DEPARTMENT.

COMPENSATION
CONTRACTOR will be compensated by DEPARTMENT as follows:

A. CONTRACTOR and DEPARTMENT shall perform the services pursuant to the terms and conditions of this Agreement without the payment of any monetary consideration, one to the other.

B. Notwithstanding subparagraph A., DEPARTMENT shall Reimburse CONTRACTOR for the cost of one (1) staff member or other authorized individual designated by CONTRACTOR to operate the Cooling Center, where the facility would not have otherwise been operated or additional staffing would not have been required.

Reimbursement to be provided at the rate of $13.08 per hour, or the current State of California minimum wage, if higher than $13.08.

C. The cost of increased utility expenses incurred during the operation of the Cooling Center hours, where the facility would not have otherwise been operated and utility expenses would not have been incurred.

D. No reimbursement will be provided for expenses that would normally have been paid or incurred by CONTRACTOR during the normal course of business.

REPRESENTATIONS
DEPARTMENT and CONTRACTOR make the following representations, which are agreed to be material to and form a part of the inducement for this MOU:

A. CONTRACTOR agrees that its subcontractors shall be held to the same standards, requirements and expectations as stated in this MOU; and B. CONTRACTOR has the expertise, facilities, and support staff necessary to provide the services described in this MOU; and
C. DEPARTMENT has the expertise and staff necessary to provide the services described in this MOU; and
3 D. Neither party has any actual or potential interests adverse to the other nor does either party represent a person or firm with an interest adverse to the other with reference to the subject of the MOU; and
E. DEPARTMENT and CONTRACTOR shall diligenily provide all required services in a timely and professional manner in accordance with the terms and conditions stated in this MOU.

EVALUATION
Services to be provided by CONTRACTOR and DEPARTMENT shall be evaluated by DEPARTMENT on a continuing basis. Evaluation may be accomplished by written or verbal communication.

8. INDEMNIFICATION
CONTRACTOR agrees to indemnify, defend and hold harmless COUNTY and COUNTY'S agents, Board members, elected and appointed officials and officers, employees, volunteers, and authorized representatives from any and all losses, liabilities, charges, damages, claims, liens, causes of action, awards, judgments, costs, and expenses (including, but not limited to, reasonable attorneys' fees of County Counsel and counsel retained by COUNTY, expert fees, costs of staff time and investigation costs) of whatever kind or nature, which arise out of or are in any way connected with any act or omission of CONTRACTOR or CONTRACTOR'S officers, employees, independent contractors, subcontractors of any tier, or authorized representatives. Without limiting the generality of the foregoing, the same shall include bodily and personal injury or death to any person or persons; damage to any property, regardless of where located, including the properted it any semides permed pursuit is green in a re CONTRACTOR by any person or entity.

9. CONTRACT DISPUTE
Should a dispute arise between CONTRACTOR and DEPARTMENT relating to performance under this MOU, CONTRACTOR will, prior to exercising any other remedy which may be available, provide DEPARTMENT with written notice of the particulars of the dispute within thirty (30) calendar days of the dispute. DEPARTMENT will communicate with CONTRACTOR, to review the factors in the dispute, and recommend a means of resolving the dispute before a written response is given to CONTRACTOR. DEPARTMENT will provide a written response to CONTRACTOR within thirty (30) days of receipt of CONTRACTOR's written notice.

10. TERMINATION
Either party may terminate this MOU, with or without cause, upon 30 days prior written notice to the other party. In the event of termination of this MOU for any reason, DEPARTMENT shall have no further obligation to pay for any services rendered or expenses incurred by CONTRACTOR after the effective date of the termination, and 4 CONTRACTOR shall be entitled to receive compensation for services satisfactorily rendered, calculated on a prorated basis up to the effective date of termination.

11. NOTICES
Notices to be given by one party io the other under this MOU shall be given in writing by personal delivery, by certified mail, return receipt requested, or express delivery service at the addresses specified below. Notices delivered personally shall be deemed received upon receipt; mailed or expressed notices shall be deemed received four days after deposit.

A party may change the address to which notice is to be given by giving notice as provided above.

Notice to DEPARTMENT shall be addressed as follows:

Director
Kern County Aging and Adult Services
5357 Truxtun Avenue
Bakersfield, CA 93309
Notice to CONTRACTOR shall be addressed as follows:

City Administrator
City of Maricopa
400 California Street
Maricopa, CA 93252
Nothing in this MOU shall be construed to prevent or render ineffective delivery of notices required or permitted under this MOU by personal service.

12. OWNERSHIP OF DOCUMENTS
All reports, documents and other items generated or gathered in the course of providing services to DEPARTMENT under this MOU are and shall remain the property of DEPARTMENT, and shall be returned to DEPARTMENT upon full completion of all services by CONTRACTOR or termination of this MOU, whichever first occurs.

13. SOLE AGREEMENT
This document, including all attachments hereto, contains the entire agreement between the parties relating to the services, rights, obligations and covenants contained herein and assumed by the parties respectively. No inducements, representations or promises have been made, other than those recited in this MOU. No oral promise, modification, change or inducement shall be effective or given any force or effect.

14. MODIFICATION OF MOU
This MOU may be modified in writing only, signed by the parties in interest at the time of the modification.
5 15. CONFIDENTIALITY
No party io this MOU shall, without the written consent of the other party, communicate confidential information, designated in writing or identified in this MOU as such, to any third party and shall protect such information from inadvertent disclosure to any third party in the same manner that they protect their own confidential information, unless such disclosure is required in response to a validly issued subpoena or other process of law. Upon completion of this MOU, the provisions of this paragraph shall continue to survive.

16. COMPLIANCE WITH LAW
CONTRACTOR shall observe and comply with all applicable county, state and federal laws, ordinances, rules and regulations now in effect or hereafter enacted, each of which are hereby made a part hereof and incorporated herein by reference.

17. CAPTIONS AND INTERPRETATION
Paragraph headings in this MOU are used solely for convenience, and shall be wholly disregarded in the construction of this MOU. No provision of this MOU shall be interpreted for or against a party because thai party or its legal representative drafted such provision, and this MOU shall be construed as if jointly prepared by the parties.

18. FORCE MAJEURE
DEPARTMENT shall exercise every reasonable effort to meet its obligations hereunder and shall not be liable for delays resulting from force majeure or other causes beyond its reasonable control including, but not limited to, compliance with any government law or regulation, acts of God, fires, strikes, lockouts, natural disasters, wars, riots, and/or any other cause whatsoever beyond the reasonable control of DEPARTMENT. Any such cause will extend the performance of the delayed obligation to the extent of the delay so incurred.

19. TIME OF ESSENCE
necessary and essential part of this MOU.

20. COUNTERPARTS
This MOU may be executed simultaneously in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

21. NONDISCRIMINATION
Neither CONTRACTOR, nor any officer, agent, employee, servani or subcontractor of CONTRACTOR shall discriminate in the treatment or employment of any individual or groups of individuals on the grounds of age, sex, color, disability, national origin, race, marital status, religion, political affiliation, or any other classification protected by law, either directly, indirectly or through contractual or other arrangements. 6 22. AUDIT, INSPECTION, AND RETENTION OF RECORDS
CONTRACTOR agrees to maintain and make available to DEPARTMENT accurate books and records relative to all its activities under this MOU. CONTRACTOR shall comply with all applicable OMB requirements related to the respective funding utilized in the payment of services specified in this MOU. CONTRACTOR shall permit DEPARTMENT to audit, examine and make excerpts and transcripts from such records, and to conduct audits of all invoices, materials, records of personnel or other data related to all other matters covered by this MOU. Audits may be accomplished by written or verbal communication and/or by site visits to view fiscal and/or program processes and information. CONTRACTOR shall maintain such data and records in an accessible location and condition for a period of not less than three years from the date of final payment under this MOU, or until after the conclusion of any fiscal audit, whichever occurs last. The State of California and/or any federal agency, or other entity having an interest in the subject of this MOU shall have the same rights conferred upon DHS herein.

23. NON-COLLUSION COVENANT
CONTRACTOR represents and agrees that it has in no way entered into any contingent fee arrangement with any firm or person concerning the obtaining of this MOU with DEPARTMENT. CONTRACTOR has received from DEPARTMENT no incentive or special payments or considerations related to the provision of services under this MOU.

24. NO THIRD PARTY BENEFICIARIES
It is expressly understood and agreed that the enforcement of these terms and conditions and all rights of action relating to such enforcement shall be strictly reserved to DEPARTMENT. Nothing contained in this MOU shall give or allow any claim or right of action whatsoever by any other third person. It is the express intention of DEPARTMENT that any such person or entity, other than DEPARTMENT, receiving services or benefits under this MOU shall be deemed an incidental beneficiary only.

25. SIGNATURE AUTHORITY
Each party represents that they have full power and authority to enter into and perform this MOU, and the person signing this MOU on behalf of each pary has been properly authorized and empowered to enter into this MOU.

26. INSURANCE
CONTRACTOR and DEPARTMENT agree that self-insurance as authorized by Government Code section 990, or other similar law, may be used in lieu of insurance for purposes of this agreemeni.

27. INVOICING
CONTRACTOR shall submit one invoice to DEPARTMENT for expenses incurred through June 30'h. CONTRACTOR shall submit a separate invoice to DEPARTMENT for expenses incurred between July 1 and the end of the Cooling Center Season. Invoice(s) shall be due 7 to the County no later ihan the 15th of the month following the termination of the Cooling Center Season.

If requested by CONTRACTOR, DEPARTMENT may agree to provide reimbursement on a monthly basis, in which case invoice(s) shall be due to DEPARTMENT no later than the 15" of the month subsequent to services provided.

In either case, each invoice shall list:

A. Any amounts) due to CONTRACTOR for one staff member/authorized individual to operate the Cooling Center, including:

1. The date(s) services were provided.

2. The total number of hours the staff member/authorized individual operated the Cooling Center.

3. The name of the staff member or authorized individual who provided the services.

B. The amount due to CONTRACTOR for increased utility costs incurred during the operation of the Cooling Center. To determine the utility expenses incurred, the total monthly bill should be prorated by the total number of days in the billing cycle, to determine the average daily cost. The average daily cost should then be multiplied by the number of days the Cooling Center was operated within the billing cycle.

28. EXHIBITS
Each Exhibit attached to this Agreement is incorporated into this Agreement by reference. [Remainder of this page is intentionally left blank.]
The Parties have executed this Agreement on the Execution Date.

Kern County Aging and Adult Services
Dated: By -
Lito Morillo, Director
"DEPARTMENT"
City of Maricopa
Das 5/141/19 y Lou Mock
Gary Mock, Mayo
"CONTRACTOR"
APPROVED AS TO FORM:

Office of the County Counsel
Dated: By.

Bryan Walters, Deputy County Counsel •
APPROVED AS TO FORM:

Dato. 5/11/19 By _
Alan Peake, Maricopa City Attorney
9 XI-C

AGENDA ITEM
TITLE: pprove Agreement Between City of Maricopa and County of Kern to Provide Work Experience Work Si or Participants in CalWORKs Prograr
PROPOSED BY: Eric G. Ziegler
MEETING DATE: May 14, 2024

RECOMMENDATION
Motion to approve cooperative agreement between County of Kern and city of Maricopa to provide work experience site for participants in the CalWORKS Program and to authorize the mayor and city clerk to execute the agreement on behalf of the city.

BACKGROUND
Attached hereto is a proposed agreement from the Kern County Department of Human Services renewing the city's participation in the CalWORKS program. The city has previously participated in this program for several years.

As noted in the proposed agreement, the city's responsibility is to provide a worksite for this program which provides participants with meaningful work opportunities designed to help participants transition into full time employment with the city or with another employer.

There is no cost to the city for participating in this program other than that of administrative/supervisory time spent in supervising one or more workers and completing associated reports/documents. Cost of the program including salaries and workers compensation insurance is borne by the county Human Services Department and by the state.

At this time, staff recommends that council favorably consider a motion to approve cooperative agreement between County of Kern and city of Maricopa to provide work experience site for participants in the CalWORKs Program and to authorize the mayor and city clerk to execute the agreement on behalf of the city.

City Adm.

Approval FISCAL IMPACT:
$
Eric G Zlegier Funds Budgeted: Yes Amount Required
Amount Budgeted Appropriation Requested
Account Number Reviewed by Finance
Employment
Preparation
Program provides
real-world work
experience. - Everyone Benefits.

Local employers allow participants to
leam job skills in a workplace structure in
exchange for no cost labor.

The mission is to provide CalWORKs Employer: Participant. participants an opportunity to develop
the skills necessary to obtain full-time, • Extra-Help labor at no cost • Build resume with current work experience
unsubsidized employment and achieve:
self-sufficiency. • Worker's Compensation provided by - Network with professionals within the program the program
• Simple two-year contract • Learn skils on the job
Please partner with us - Ability to interview and select participants • Bulld connidence to provide CalWORKs • No obligation to retain unsatisfactory trainee • Act as a role model for chi dren participants the opportunity • Option to hire
Build good work habits
to build the skills they need • Help CalWORKs participants transition to to reach self-sufficiency. Earn the opportunity for possible transition self-sufficiency into paid employment
Community:
- Reduce the number of individuals relying on
public assistance
Local organizations benefit from
increased staffing
- Allow families to model independence and
job responsibility
If you are interested in participating Employment
in the Employment Preparation Preparation Program
Program, please contact your local
DHS Job Developer.

BAKERSFIELD LAMONT / ARVIN/ LEBEC Opportunity.
100 E. California Avenue 8300 Segrue Road
Bakersfield, CA 93307. Lamont, CA: 93241 Options.

Richard Herrera Julieta Montanio
Tel: 661.632.4697 Tel. 661.556:0165 Empowerment.
cell: 661.903.9139 Fax: 661.635.4094
Fax: 661.631.6774 [email protected]
[email protected]
MOJAVE The Employment Preparation
DELANO / MCFARLAND 2300 Highway 58 Program provides participants the 1816 Cecil Avenue Mojave, CA 93501.
opportunity to practice the job
Delano, CA 93215 Cindy Brown
skills necessary to obtain full-time.

Andrea Murillo Tel 760.549.2135
Tel 661.721.5142 unsubsidized employment in a
Fax 760.549.2132
Fax: 661.721.5162 [email protected] workplace setting Contact your [email protected] ocal office representative to take SHAFTER / WASCO advantage of this program
LAKE ISABELLA/ 115 N. Central Valley.

RIDGECREST. Highway 661.631.6248
7050 Lake Isabella Shafter, CA 93263.

Boulevard, Ste. 130 [email protected]
George Frayre
Lake Isabella; CA 93240 Tel. 661.746.8410
Cindy Brown Fax 661.746.8402
Tel: 760.549.2135 [email protected]
Fax: 760.549.2132
[email protected] TAFT
COUNTY
119 North 10th Street
Taft, CA 93268 X HUMAN SERVICES
Your tax dollars
Seamus Watson
Tel: 661.451.8585
100 E. California Avenue, Bakersfield, CA 93307 hard at work for you.

Fax: 661.763.0294
[email protected] Tel 661 631.6600 Fax 661 631 6631 TTY 800.735.2929 KCDHS.0rg
KCHS is an equal opportunity agency.

Cindy Brown
Tel 760.549.2135
Fax 760.549.2132 KERN
[email protected]
KCDHS 171-EPP (11-22) COUNTY

HUMAN SERVICES

COOPERATIVE AGREEMENT

BETWEEN THE COUNTY OF KERN AND

AN INDEPENDENT LOCAL GOVERNMENT AGENCY

TO PROVIDE WORK EXPERIENCE WORKSITES
FOR PARTICIPANTS IN THE CalWORKs PROGRAM
(County of Kern -
This AGREEMENT ("AGREEMENT") is made and entered into on "EXECUTION DATE") by and between the County of Kern, a political subdivision of the State of California ("COUNTY"), and _ an independent local government agency ("WORKSITE"), whose principal place of business is at_
provision of Work Experience/Employment Preparation Program worksites for participants in the CalWORKs Program.

WITNESSETH:

WHEREAS:
a. This AGREEMENT is entered into under the authority of the Thompson-Maddy- Duchony-Ashburn Welfare-to-Work Act of 1997 which established the California Work Opportunity and Responsibility to Kids ("CalWORKs"); and CalWORKs is a comprehensive employment program for cash assistance applicants and recipients which requires counties to provide non-salaried Work Experience assignments with public or private non-profit agencies; and c. WORKSITE represents that it is willing and able to provide the training to CalWORKs participants as hereinafter set forth.

NOW, THEREFORE, it is mutually agreed by the parties hereto as follows:

1. This AGREEMENT shall become effective 2024 and shall continue in effect through and including _ 2026, unless sooner terminated pursuant to Paragraphs 21, 22 and 23 of this AGREEMENT.

WORKSITE shall provide supervised work activity for assigned participants referred to WORKSITE by County in the occupation(s), in accordance with job orders. COUNTY shall notify assigned participants, in advance, of any applicable requirements of WORKSITE as a condition for participation in the work experience.

The Work Experience/Employment Preparation Program component shall be a non salaried work experience assignment which shall enhance and renew job skills, builo work habits, and expedite the transfer to unsubsidized employment.

4. No assignment shall exceed six months.

Page 1 of 7 ends

No Work Experience assignment shall exceed the participation requirements of 32 or 35 hours per week.

A Work Experience/Employment Preparation Program position may not be created as a result of any of the following:
a. Displacement, or partial displacement, of current employees, including, but not limited to, a reduction in regular work hours and overtime hours, wage, or employment benefits; and
b. The filling of established unfilled positions, unless positions are unfunded in a public agency budget; and
C. The filling of positions which would otherwise be promotional opportunities for current employees; and
d. The filling of a position prior to compliance with applicable personnel procedures or provisions of collective bargaining agreements; and
e. The filling of a position created by termination, layoff, or work force reduction; and
f. The filling of a work assignment customarily performed by a worker in a job classification within a recognized collective bargaining unit in that specific worksite, or the filling of a work assignment in any bargaining unit in which funded positions are vacant or regular employees are in a layoff status; and g. A strike, lockout, or other bona fide labor dispute or violations of any existing collective bargaining agreement between employees and employers.

Regular employees of WORKSITE or their representatives may file a written complaint with COUNTY if they believe the assignment of a CalWORKs participant to a Work Experience/Employment Preparation Program position violates the above-stated displacement provisions. COUNTY shall attempt to informally resolve the complaint and shall send a letter informing the complainant of the response to the complaint and the right to request a formal hearing conducted by the California Department of Social Services if the response is not satisfactory. Any dissatisfied party may appeal the formal hearing decision to the United States Department of Labor. a. WORKSITE shall notify the appropriate labor union of the use of CalWORKs participants in any location or work activity controlled by WORKSITE and covered by a collective bargaining agreement between WORKSITE and a union as well as the right of union employees to grieve displacement by CalWORKs Notify non-union employees of the use of CalWORKs participants and of the grievance process described above by displaying an informational poster provided by COUNTY.

Page 2 of 7 ends

The sponsor of WORKSITE shall assist and encourage qualified CalWORKs participants to compete for job openings occurring within the sponsor's organizations for which they WORKSITE is not responsible for compensating the participant for work performed.

10. Worker's Compensation coverage shall be provided by the State Department of Social Services under a contract with the State Compensation Insurance Fund.

11. During the work activity, WORKSITE shall provide each participant with:
a. Reasonable and proper supervision and instruction by WORKSITE regarding duties and work activity.

Safety instructions and equipment necessary for protection against injury and damage, in accordance with OSHA guidelines.

C. The same working conditions as employees similarly employed; e.g., coffee breaks, lunch break.

12. WORKSITE agrees to report participant's attendance bi-weekly on Form KCDHS 380.5 EPP, Exhibit "A", which is attached hereto and incorporated herein by this reference.

13. WORKSITE agrees to report information on participant's performance, as requested by COUNTY in a timely manner, on Exhibit "A".

14. WORKSITE includes all locations as identified on Exhibit "B", which is attached hereto and incorporated herein by this reference.

15. COUNTY has the right to observe and monitor all conditions and activities involved in the performance of the Agreement.

16. Any operation of a motor vehicle in connection with this WORKSITE assignment by a participant shall be the sole responsibility of WORKSITE and WORKSITE shall, at its own expense, provide legal defense for COUNTY with respect to any litigation arising from such participant activity and shall indemnify and hold free and harmless COUNTY, its officers, agents and employees from any and all claims, actions, damages, and liabilities arising out of or resulting from such activity.

17. WORKSITE and any agents and employees of WORKSITE in the performance of this AGREEMENT shall act in an independent capacity and not as officers, employees, or agents of COUNTY. WORKSITE shall not subcontract in the name of COUNTY

18. WORKSITE, its agents, officers, and employees shall not be held liable for any claims, liabilities, penalties, fines, or damage, legally caused or incurred by the acts or omissions of COUNTY, its agents, officers, and employees.

19. COUNTY shall not be held liable for any acts and/or omissions on the part of WORKSITE.

Page 3 of 7 ends

20. No person performing any service or providing any goods designated under this Agreement shall participate in any political or religious activity on County time or in any conveying the implication of County endorsement or support for a candidate for local, state, or federal office.

Notwithstanding the foregoing, nothing in this Agreement shall be construed to unlawfully limit an individual's Constitutional rights. Accordingly, the limitations contained in this section are for the sole purpose of preventing proselytizing and politicking while engaged in the performance of services under this Agreement.

21. No alterations or variations of the terms of this AGREEMENT shall be valid and/or binding unless made in writing and signed by the parties hereto; nor shall there be oral understandings or agreements not incorporated herein.

22. Either party may terminate this AGREEMENT upon 10 days prior written notice.

COUNTY may immediately terminate the AGREEMENT at such time as directed by the Kern County Board of Supervisors.

This AGREEMENT may also be terminated at the discretion of COUNTY if WORKSITE either:
a. Violates the contract between COUNTY and the participant; or b. Fails to meet the performance criteria specified in this AGREEMENT.

24. Any notice required or permitted to be given under this AGREEMENT shall be in writing, and shall be served by registered mail or personal service upon the other party. When served by registered mail, service shall be conclusively deemed made three days after deposit thereof in the United States mail, postage prepaid, addressed to the party to whom such notice is to be given as hereinafter provided:

Notice to COUNTY shall be in duplicate, addressed and mailed as follows:

Contracts Office
Department of Human Services
P.O. Box 511
Bakersfield, CA 93302
Notice to WORKSITE shall be addressed and mailed as follows:

25. WORKSITE and COUNTY agree to comply with all State laws and regulations that pertain to construction, health and safety, labor, fair employment practice, equa opportunity, and all other matters applicable to WORKSITE and COUNTY, their subgrantees, contractors, or subcontractors, and the work.

Page 4 ends

WORKSITE agrees to comply with the Drug-Free Workplace Act of 1988 (PL 10-960), if applicable, and COUNTY's Drug-Free Workplace Policy. [Remainder of page intentionally left blank.]
IN WITNESS WHEREOF, this AGREEMENT has been executed as of the date first set forth above.

Page 5 of 7 ends

"WORKSITE"
Dated:

By Supervisor

COUNTY OF KERN
Kern County Department of Human Services
Dated: By: _
Lito Morillo, Director

APPROVED AS TO FORM
Office of County Counsel
Dated: By:

Bryan Walters, Deputy County Counsel

Page 6 of 7 ends

HAN LOUNG
KERN
COUNTY
Lito Morillo
HUMAN SERVICES Director
EXHIBIT "A"
Employment Preparation Program
Timesheet and Evaluation
Participant's Name: Case:

Month & Year: Required Hours Per Month & Week:
2 3 4 5 6 7
1 10 11 12 13 14
8 9
16 17 18 19 20 21
15 23 24 25 26 27 28
22 29 30 31
Please enter total number of hours worked each day.

Any shift of 3.5 hours or longer requires a 10 minute break, to be included in the daily total.

Any shift longer than 6 hours requires a 30 minute lunch break. Please do not include lunch break in daily total.

Comments or Concerns:

Please Email Every Monday to:

Worksite Location: Worksite Phone:

Worksite Supervisor: Date:

Supervisor: Participant:

Signature Signature

Page 7 of 7 ends

• XI-d

AGENDA ITEM
TITLE: Letter of Participation for the Used Oil Payment Program, FY 2024-2025 PROPOSED BY: Eric G. Ziegler
MEETING DATE: May 14, 2024
RECOMMENDATION:

Motion to Submit Letter of Authorization to Participate in Used Oil Payment Program, Fiscal Year 2024-25, and authorize City Administrator or designee to sign on behalf of the City.

BACKGROUND:

In previous years, the City has participated with Kern County as the lead agency in submitting an annual application for the Used Oil Payment Program to Cal Recycle.

I he lead agency manages and oversees the used oil recycling program which consists of the operation and oversight of certified used oil collection centers in Kern Unincorporated areas and within certain participating jurisdictions. The County also provides advertisement and promotion of the program, submits required State reporting and covers other administrative responsibilities.

Staff recommends that Council favorably consider a motion to Submit Letter of Authorization to Participate in Used Oil Payment Program and authorize City Administrator or designee to sign on behalf of the City.

City Adm.

Approval FISCAL IMPACT:
$
Eric G. Ziegler Funds Budgeted: Yes Lio Il Amount Required Amount Budgeted Appropriation Requested
Account Number Reviewed by Finance
EXHIBIT "B"
Site Locations
For Employment Preparation Program
B-1

Page 8 of 7 ends

KERN Joshua Champlin, P.E.

Public Works

DIRECTOR OF PUBLIC WORKS
COUNTY
April 8, 2024
Mr. Eric Ziegler, City Manager
City of Maricopa
PO Box 550
Maricopa, CA 93252 ([email protected])
Dear Mr. Ziegler
Kern County, as the lead agency for the Used Oil Program, will be submitting an annual application for the Used Oil Payment Program to CalRecycle on behalf of the County and participating jurisdictions for the Fiscal Year 2024-2025. As in prior years, your city may choose to be a participating jurisdiction.

In order to be a participating jurisdiction, your city must submit a Letter of Authorization. Attached is an authorization letter template for your use.

As lead agency, the County manages and oversees the used oil recycling program. This program consists of the operation and oversight of certified used oil collection centers in Kern Unincorporated areas and within the participating jurisdictions. The County also provides advertisement and promotion of the program, submits required reporting to the State, and covers other administrative responsibilities.

The authorization letter should be on the city letterhead and addressed to CaRecycle. Both electronic and original wet ink signatures will be acceptable and must be either mailed to Kern County Public Works Department or directly emailed to me at [email protected]. Please arrange to submit a letter by May 8. 2024. This will allow the submittal of application in a timely manner.

If you have any questions, feel free to contact me at (661) 862-5030.

Sincerely,
Aaron Guarnizo
Waste Management Specialist
Kern County Public Works Department
[email protected]
I:ICLERICALILETTERS12024\24_04_08 AG_mm 4.docx
Attachments:
cc: Oil Program

GROUNDED BOUNDLESS
2700 M Street, #400, Bakersfield, CA. 93301 | 661.862.5100 | www.KernPublicWorks.com City of Maricopa, California
A CORPORATED 400 California Street, PO Box 550, Maricopa, CA 93252 Eric G. Ziegier
City Administrator
May 14, 2024
Cal Recycle-Used Oil Payment Program
1001 | Street
P.O. Box 4025
Sacramento, CA 95812-4025
RE: Letter of Authorization
Cal Recycle,
I am the City Administrator of the City of Maricopa. I am authorized to contractually bind Agen on at re or alance me on em here almoten to
execute all documents necessary to implement and secure payment under the OPP.

Sincerely,
Eric G. Ziegler
City Administrator
661-769-8279

Maricopa City CouncilMay 14, 2024

Maricopa City Council
May 14, 2024