3. After identifying any differences, the reconciler will complete the reconciliation by submitting the following documents for review to a reviewer who is not typically involved in executing or routinely reviewing the day-to-day cash receipting or disbursing processes, such as the Administrative Services Director or Finance Director:
a. County EFS printout showing the balance in the County Treasury at the end of the previous month
b. Tyler Pooled Cash Report as of the previous month end c. Listing of any differences between the two
d. Supporting documentation for any significant differences that will carry forward into the following month
4. After reviewing the bank reconciliation and supporting documents and determining that any differences appear appropriate, the reviewer will initial or otherwise indicate review of the bank reconciliation packet, which will then be filed.
Utility Payment Lockbox
On a monthly basis by the 15th day of each month, the Finance Department will reconcile the utility payment lockbox account for the previous month according to the following procedure:
1. First, the deposits and withdrawals from the Utility Payment Lockbox account will be reconciled to the AVR reports as follows.
a. Using a template designed for these purposes, the Finance Department will recompute the ending balance in the lockbox account using the total payments received reported in the utility billing system.
This will ensure that if the total payments received in the lockbox do not match the payments received in the billing system, the difference will be identified.
b. The reconciliation will account for the differences identified, including the following common differences:
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
296
i. Timing differences such as payments included in the utility billing system in a different month from the month they are deposited into lockbox bank account.
ii. The receipt of customer deposits and overpaid amounts in the current month in the lockbox account that will not be applied to a customer account until a future month.
iii. The application of customer deposits and prior month overpayments to customer accounts which result in a reduction to the customer account balance in the current month for payments that may have been posted to the lockbox account in previous months.
iv. Merchant processing fees, bank service charges, and other fees deducted from the bank account but not accounted for in the utility billing system.
v. Refunds on closed accounts that may be treated as a negative payment in the billing system even though the refund payment is not actually made from the lockbox account and therefore does not impact the lockbox bank balance.
2. After reconciling the activity in the lockbox bank account to the utility billing system, the Finance Department will post the monthly journal entry to record the utility billing activity in the subsidiary system. The entry will be designed to eliminate timing differences in the ending account balance by distributing those differences out to revenue accounts and then reversing them in the following month.
3. After the posting of the utility billing journal entry for the month, the Finance Department staff will verify that the total balance in the 1116 Cash in Lockbox account in the General Ledger matches the ending balance in the lockbox bank account.
Other Bank Accounts
For any other bank or investment accounts, the Finance Department will compare the statement balances to the General Ledger on a monthly basis and make the appropriate adjustments by the end of the following month. The reconciling items for other bank accounts will be typically minimal.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
297
SECTION 640: IMPREST CASH CHECKING ACCOUNT POLICY
OVERVIEW
Mountain House Community Services District’s offices and facilities are located approximately 27 miles from the San Joaquin County Treasurer’s Office in Stockton.
Because the San Joaquin County Treasurer serves as the City’s treasurer pursuant to Government Code Section 61052, the City is required to transport checks for deposit to the County Treasury and to obtain warrants drawn on the County Treasury to pay the City’s obligations. The physical distance between the two locations makes frequent deposits, a best practice in internal control, more challenging. The City currently utilizes desktop deposit technology to scan and deposit incoming checks at the City for incoming customer utility payments, which are deposited to a designated account, and would like to implement similar desktop deposit technology for non-utility payments as well to facilitate faster clearing of incoming funds. The City also has recurring bills with a short window of time to make payment and is left with an extremely short turn-around time to submit these bills to the County for processing to ensure the payments are disbursed timely and penalties avoided.
Government Code Section 53952(b) permits the City to establish a revolving fund in an amount not to exceed one hundred and ten percent (110%) of one twelfth (1/12) of the City’s adopted budget for the current fiscal year.
Deposit of Incoming Payments to Imprest/Revolving Account For all incoming check payments that are not utility payments, amounts and payment details will be logged on the City’s incoming revenue log. The incoming checks and any supporting documentation will be placed in a secured container in the Accounting Manager’s office. Key access will be limited to the Accounting Manager and Finance Director. The City will then deposit all incoming checks to its imprest/revolving account, preferably using desktop deposit technology where the checks are scanned and deposited right in the City’s Office. The imprest account is currently at Wells Fargo Bank; District staff will not have ability to add accounts to the desktop technology. The bank will control access to the system with usernames and passwords.
A Finance Department staff member will compare the incoming revenue log total with the total deposited by desktop deposit. After resolving any differences, the Finance Department staff member will post a deposit to the Incode General Ledger system 1112 imprest/revolving account.
All incoming checks subject to this policy should be deposited to the imprest/revolving account within two (2) business days of receipt. Checks that have been deposited successfully through desktop deposit should be bundled by deposit date and maintained in a secure location. If the original checks are not requested by the bank within thirty (30) days of the desktop deposit, they should be destroyed.
If the City receives a check that cannot be scanned using the desktop technology, the maker will be requested to provide a replacement and the original payment will be Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
298
stored in the secure container until a replacement is successfully deposited. The original payment will then be voided and returned to the maker.
Maximum Balance and Deposit of Excess to County Treasury The City intends to maintain no more than three-hundred thousand dollars ($300,000) in the imprest/revolving account on an ongoing basis. When the balance exceeds this amount continuously for more than two (2) weeks, a Finance Department staff member will prepare a check payable to the County Treasury and deposit the excess funds in the County Treasury.
Allowable Uses of Funds from Imprest/Revolving Account
Other than flowing into the County Treasury, the funds in the imprest/revolving account will be used sparingly in the discretion of the Finance Department and in any event may only be used to pay for lawful expenses or obligations of the City that meet both of the following two criteria:
• The expense or obligation is currently or routinely required to be paid within a short time period that creates uncertainty as to whether it will be processed timely if payment is made through the County Treasury OR is five hundred dollars ($500) or less, AND;
• The payment is to a payee who is exempt from IRS form 1099 reporting (e.g. a governmental entity or corporation) or is of a nature that is exempt from 1099 reporting by reason other than dollar amount (e.g. accountable plan reimbursement to an employee, which would never be subject to 1099 reporting regardless of dollar amount). Payments that would be subject to 1099 reporting but for the fact that they fall below six hundred dollars ($600) are not permitted, because of the potential for multiple payments to occur within one year.
• Examples of allowable uses are (this list is not all-inclusive):
• Electric utility bills paid to a government agency exempt from 1099 reporting where there is a short time before payment is due • Payment of State Disability Insurance taxes where there is a short time before payment is due
Signature Authority
Checks drawn on the imprest/revolving account may be signed by any of the following:
• Administrative Services Director
• Finance Director
• Assistant Finance Director
• Accounting Manager
Signers of checks drawn on the imprest/revolving account will review backup documentation and ensure the proposed disbursement is consistent with this policy prior to signing any checks.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
299
Disbursement Procedure
• The imprest/revolving account will be set up as a Cash in Other Banks account (GL object 1112) in the Tyler Incode General Ledger system. All disbursements from the imprest/revolving account will be prepared using the Incode General Ledger system.
• Check stock for the imprest account will be stored in a locked safe. • One of the authorized signers noted above may designate a list of obligations that will routinely be paid from the imprest/revolving account.
Any transaction not so designated must be approved for use of this procedure prior to preparation of the check.
• Where feasible, a Finance Department staff member other than an authorized signer should prepare all checks for disbursement from the imprest/revolving account after reviewing appropriate backup documentation.
• Backup documentation supporting the transaction should be attached to the vendor invoice within Incode.
• Checks and supporting documentation will be presented to an authorized signer for a physical (wet) signature. No signature stamps, check signing machines, or signature images will be permitted.
• After the check is signed, the Finance Department staff member preparing the check will distribute it to the appropriate party.
Bank Reconciliation
The imprest/revolving account will be reconciled to the Incode general ledger account on a monthly basis by the end of the month following the month being reconciled. A Finance Department staff member who is not involved in the disbursement process should reconcile the account using the following procedure:
1. Obtain the bank statement directly from the bank online or unopened in the incoming mail.
2. Compare the transactions on the bank statement to transactions recorded in the 1112 General Ledger account for the imprest/revolving account.
3. Inspect copies of checks clearing the account to determine the check vendor on the check appears consistent with the vendor shown in Incode for that check.
4. Prepare and sign a reconciliation report identifying all differences (such as individual outstanding checks) between the bank statement balance and the General Ledger balance.
5. If the balance in the account has exceeded $300,000 for two consecutive weeks, recommend that a check be written to deposit excess funds in the County Treasury.
Submit the reconciliation report on a rotating basis for review to each of the authorized signers on the imprest/revolving account.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
300
SECTION 710: UTILITY BILLING AND PAYMENTS
New Service
Inframark Customer Care department will process all requests to establish service.
Homeowner may email or fax completed service order along proof of ownership to Inframark. Inframark will set up in AVR billing system. Inframark sends a log each night to MHCSD and Inframark Field Reps of all new accounts.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
301
Final Account (Close Account)
Inframark Customer Care department will process all requests to stop service.
Homeowner may email or fax required documents to Inframark Customer Care department. Inframark sends a log each night to MHCSD and Inframark Field Reps of all discontinued accounts.
Monthly Billing and Payments
Inframark processes all monthly billing using the AVR program. Payment options are as follows:
• Mail to: MHCSD – PO Box 684000, Houston, TX 77268
• In person (check, cashier’s check, money order): MHCSD – 251 E. Main Street, Mountain House CA 95391
• Drop Box (check, cashier’s check, money order) at MHCSD office – Box is emptied at 4:30 pm (PST)
• Online at www.mountainhousecsd.org
• Pay by phone (800) 441-4501
• Scan to Pay on the bottom of your bill
• Automatic Bank Draft – Call 855-327-0900 for information Payments mailed to the Houston address and all electronic payments are processed by AVR and deposited to the MHCSD Lockbox Wells Fargo Bank account.
A Customer Service Representative will process payments made at MHCSD into the AVR system. The Customer Service Representative then gives the checks to the Accountant I who scans the checks and performs a desktop deposit to deposit the funds to the Wells Fargo Lockbox account.
Delinquent Notices
Inframark will calculate and process delinquent notices for all accounts that have not paid by the due date. Inframark will then mail notices to each customer. 48-hour door tags
Inframark will calculate the 48-hour door tag file. They will then send the file to MHCSD.
MHCSD will print the tags. An Inframark field representative will hang the tags on the property.
Disconnect for non-payment
Inframark will calculate the disconnect list/file. They will then send it to MHCSD for approval. MHCSD Customer Service Rep will review each account. CS Rep will review recent notes and payments along with any possible order to close account due to sale.
Upon approval, Inframark will then add fees to account ($100.00 Cut-Off Charge + $300 Deposit). MHCSD will print the tags. An Inframark field representative will hang the tags on the property and disconnect the service.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
302
Customer must call Inframark Customer Care Department with confirmation number after making payment. The Customer Care Department will confirm payment and generate an order to have service restored.
Liens
MHCSD Customer Service Representative will run a Collection Accounts Detail Listing for all accounts with a delinquent balance of $500.00 (amount subject to change) at the beginning of each month. Representative will review each account status, recent notes, payments, amortization plans and check to see if the account holder is an owner or tenant.
CS Representative will mail Lien Notification letters to the owner of each property by certified mail. CS Supervisor will add $100.00 lien fee to the account. CS Representative will log account information on the Lien Tracking spreadsheet and on the account. The owner will have 10 days from the date of the letter to appeal. CS Supervisor will notify Tracy Press (via email) to run lien publication 10 days prior to Board Meeting. CS Supervisor will submit a listing of unpaid accounts to the Administrative Services Director to be included on the Staff Report. City Council will review and approve for lien or give further collection instructions. City Manager and Secretary to the Board will sign & notarize documents. CS Representative will send documents to San Joaquin County for recording. CS Supervisor will review all unpaid liens and roll them over to the County tax roll in August. CS Representative will have the lien amount written off in AVR by Inframark.
Collection on Closed Accounts
CS Supervisor will run a Collection Accounts Detail Listing each month and review accounts that are delinquent for 30+ days. Supervisor will review owner information, payment information, account notes and new account holder. If the account holder was a tenant, the unpaid balance will be transferred to the owner’s account. If the property has been sold and is currently in a new owner’s name then the unpaid balance will be sent to collections. CS Supervisor will log account information on a spreadsheet and email to Inframark in order to have the money transferred or sent to Collections Unlimited.
Reconciliation
At the end of each month, the Accountant I downloads the bank statement for the Wells Fargo Lockbox account. S/he also receives a “Daily Cash Sheet” or “Batch Sheet” for the month that summarizes all of the payments processed in AVR for the previous billing cycle via e-mail from an Inframark representative. The report lists payments by date and payment type only, but the totals agree to the AVR reports for the previous billing cycle. Using these two reports, s/he determines the transactions that posted to either the bank account or AVR but not both and completes a reconciliation identifying the reconciling differences between the two. After adjusting for outstanding items, the balance in the Wells Fargo Lockbox account should agree to the ending balance of undistributed overpayments per the AVR End of Month Recap, since the undistributed Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
303
overpayments should be retained in the lockbox account until they are ultimately distributed to the various categories of collections (i.e. garbage, water operating, water
ETHICAL STANDARDS OF CONDUCT
The purpose of this policy is to set forth the ethical standards of professional behavior expected of all officials and employees conducting purchasing activities on behalf of the City.
Standards of Conduct
Every employee or official engaging in purchasing activities on behalf of the City is required to employ the following standards of conduct:
- Consider, first, the interests of the City in all transactions. - Carry-out the established policies of the City.
- Buy without prejudice, seeking to obtain the maximum value for each expenditure of public funds.
- Subscribe to and work for honesty and truth in buying and selling, and to denounce all forms and manifestations of commercial bribery. - Cooperate with all organizations and individuals engaged in activities designed to enhance the development of purchasing practices.
- Respect obligations to others and require the same respect from others for their obligations.
Prohibited Practices
The following practices are specifically prohibited in performing purchasing activities on behalf of the City:
- Having a financial or personal beneficial interest (directly or indirectly) in any contract or purchase order for supplies, equipment, services, or projects furnished to the City.
- Accepting or receiving (directly or indirectly) from any person, firm, or corporation to whom any contract or purchase order may be awarded (by rebate, gift or otherwise) any money or anything of value, or any promise, obligation or contract for future reward or compensation. Inexpensive advertising items bearing the name of the firm—such as pens, pencils, paper weights or calendars—are not considered articles of value or gifts in relation to this policy. - Using information available to officials and employees, solely because of their District position, for personal profit, gain or advantage.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
304
- Directly or indirectly furnishing services or information not available to all prospective bidders to any person or firm bidding on, or who may reasonably be expected to bid on, a contract with the City.
- Providing confidential information to persons to whom issuance of such information has not been authorized.
- Using a position or status in the City to solicit (directly or indirectly) business of any kind; or to purchase products at special discounts or upon special concessions for personal private use from any person or firm who sells or solicits sales to the City.
- Serving the interests of any organization (either as an officer, employee, member of the City Council , or in any capacity for consideration) which transacts or attempts to transact business with the City for profit when such employee holds a District position of review or control—even though remote—over such business transactions.
Responsibility
Employees:
- Each employee is responsible for following these practices. Violation of this policy may result in disciplinary action, termination of employment or criminal prosecution.
Department Managers:
- Department managers are responsible for ensuring that all employees of their department who conduct purchasing activities possess a thorough understanding of these standards of ethical conduct and prohibited practices.
POOLED CASH
The purpose of these guidelines is to set forth standards, responsibilities and procedures for the prudent investment of pooled cash and cash held by fiscal agents.
Except for amounts held by fiscal agents in accordance with bond ordinances, the Master Acquisition and Reimbursement Agreement, and other special deposits as approved by the City Council , all of the City’s cash is deposited in the San Joaquin County Treasury. The County maintains a cash and investment pool that is available to all for funds for which the County Treasury is the depository, for the purpose of increasing interest earnings through investment activities. Funds held in the County’s investment pool are invested in accordance with the County’s Investment Policy, which is presented below. The “OUTSIDE AGENCIES” section of the County’s policy provides that all agencies placing funds in the County pool must comply with the County’s investment policy.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
305
INTERFUND LOAN POLICY
This policy documents requirements and responsibilities to be followed regarding borrowing between funds of the Mountain House Community Services District.
The purpose of this policy is to ensure that all interfund loans are appropriate, properly documented, and not established to the detriment of the fund issuing the loan.
POLICY
Interfund loan recommendations and agreements must include the loan amount, an identified repayment source and the date or timing of repayment.
The agreements may include an interest component that equals the investment earnings the fund would have received had the loan not occurred, with the following exceptions:
- Amounts loaned from the Water, Wastewater and Stormwater funds to other District funds must include an interest component.
- Amounts loaned to Developer funds must include an interest component.
When it is determined that interest will be paid by the borrowing fund to the lending fund, the amount of interest to be charged will be calculated using the rate investment rate earned by the San Joaquin County Treasury.
The City Council must approve by resolution all interfund loans.
Payments made on outstanding loans shall be reflected in the proposed and adopted operating budget and in the annual financial statements. The annual financial statements will also include the loan amount, term, rate of interest, and amount of interest due on the total amount of the loan.
Interfund loan agreements will be reviewed and approved by the Board annually.
DEFINITION
Interfund loans are loans from one District fund to another District fund for a designated purpose.
Interfund loans may be made for the following reasons:
- To offset timing differences in cash flow
- To provide financing for interim financing in conjunction with obtaining long-term financing
- For short-term borrowing in place of external financing - To provide operating capital for utility funds while the customer base increases - For other needs as deemed appropriate by the City Council Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
306
Interfund loan monies may only be used for the purpose identified in the authorizing resolution. Records of interfund loan transactions will be maintained in accordance with generally accepted accounting principles and will reflect the balances of loans in every fund affected by such transactions.
DEBT MANAGEMENT POLICY
This Debt Management Policy (the “Debt Policy”) was approved by the Mountain House Community Services District City Council on February 14, 2018. The Debt Policy may be amended by the Board as it deems appropriate from time to time in the prudent management of the City’s debt.
This Debt Policy is intended to comply with Government Code Section 8855(i), effective on January 1, 2017, and shall govern all debt undertaken by the City.
The City hereby recognizes that a fiscally prudent debt policy is required in order to:
- Maintain the City’s sound financial position.
- Ensure the City has the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
- Protect the City’s creditworthiness.
- Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City.
- Ensure that the City’s debt is consistent with its planning goals and objectives and capital improvement program or budget, as applicable.
Purposes for Which Debt May Be Issued
Long-Term Debt
Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the City.
- Long-term debt financings are appropriate when the following conditions exist:
o When the project to be financed is necessary to provide basic services. o When the project to be financed will provide benefit to constituents over multiple years.
o When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
o When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
307
- Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.
- The City may use long-term debt financings subject to the following conditions:
o The project to be financed must be approved by the City Council . o The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%.
o The City estimates that sufficient revenues will be available to service the debt through its maturity.
o The City determines that the issuance of the debt will comply with the applicable state and federal law.
Short-term debt
Short-term debt may be issued to provide financing for the City’s operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be used to finance short-lived capital projects; for example, the City may undertake leasepurchase financing for equipment.
Types of Debt
The following types of debt are allowable under this Debt Policy:
- General obligation bonds
- Bond or grant anticipation notes
- Lease revenue bonds, certificates of participation and lease-purchase transactions
- Other revenue bonds and certificates of participation - Tax and revenue anticipation notes
- Land-secured financings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes
- Tax increment financing to the extent permitted under state law - Conduit financings, such as financings for affordable rental housing and qualified 501c3 organizations
The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
308
Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the Issuer in a specific circumstance.
Relationship of Debt to Capital Improvement Program and Budget The City is committed to long-term capital planning. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s capital budget and the capital improvement plan.
The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.
The City shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes.
The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.
The City shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund.
Policy Goals Related to Planning Goals and Objectives
The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the City’s annual operations budget.
It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.
The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.
When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations - Minimum net present value debt service savings equal to or greater than
3.0% of the refunded principal amount, and
- Present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
309
Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.
The City will periodically review the requirements of and will remain in compliance with the following:
- Any continuing disclosure undertakings under SEC Rule 15c2-12, - Any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and - The City’s investment policies as they relate to the investment of bond proceeds.
Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The Issuer will submit a requisition only after obtaining the signature of the City Manager or his/her designee.
Debt Schedules
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
310
Date Principal Interest Total Balance
16,805,000.00
6/1/20 - 269,696.23 269,696.23 16,805,000.00
12/1/20 535,000.00 307,248.88 842,248.88 16,270,000.00
6/1/21 - 301,053.58 301,053.58 16,270,000.00
12/1/21 510,000.00 301,053.58 811,053.58 15,760,000.00
6/1/22 - 294,637.78 294,637.78 15,760,000.00
12/1/22 520,000.00 294,637.78 814,637.78 15,240,000.00
6/1/23 - 287,630.78 287,630.78 15,240,000.00
12/1/23 540,000.00 287,630.78 827,630.78 14,700,000.00
6/1/24 - 279,978.98 279,978.98 14,700,000.00
12/1/24 555,000.00 279,978.98 834,978.98 14,145,000.00
6/1/25 - 271,698.38 271,698.38 14,145,000.00
12/1/25 570,000.00 271,698.38 841,698.38 13,575,000.00
6/1/26 - 262,547.03 262,547.03 13,575,000.00
12/1/26 590,000.00 262,547.03 852,547.03 12,985,000.00
6/1/27 - 252,484.58 252,484.58 12,985,000.00
12/1/27 610,000.00 252,484.58 862,484.58 12,375,000.00
6/1/28 - 241,593.03 241,593.03 12,375,000.00
12/1/28 635,000.00 241,593.03 876,593.03 11,740,000.00
6/1/29 - 227,412.50 227,412.50 11,740,000.00
12/1/29 665,000.00 227,412.50 892,412.50 11,075,000.00
6/1/30 - 210,787.50 210,787.50 11,075,000.00
12/1/30 705,000.00 210,787.50 915,787.50 10,370,000.00
6/1/31 - 193,162.50 193,162.50 10,370,000.00
12/1/31 740,000.00 193,162.50 933,162.50 9,630,000.00
6/1/32 - 174,662.50 174,662.50 9,630,000.00
12/1/32 785,000.00 174,662.50 959,662.50 8,845,000.00
6/1/33 - 155,037.50 155,037.50 8,845,000.00
12/1/33 825,000.00 155,037.50 980,037.50 8,020,000.00
6/1/34 - 134,412.50 134,412.50 8,020,000.00
12/1/34 875,000.00 134,412.50 1,009,412.50 7,145,000.00 6/1/35 - 112,537.50 112,537.50 7,145,000.00
12/1/35 920,000.00 112,537.50 1,032,537.50 6,225,000.00 6/1/36 - 98,737.50 98,737.50 6,225,000.00
12/1/36 950,000.00 98,737.50 1,048,737.50 5,275,000.00
6/1/37 - 84,487.50 84,487.50 5,275,000.00
12/1/37 985,000.00 84,487.50 1,069,487.50 4,290,000.00
6/1/38 - 69,712.50 69,712.50 4,290,000.00
12/1/38 1,015,000.00 69,712.50 1,084,712.50 3,275,000.00 6/1/39 - 53,218.75 53,218.75 3,275,000.00
12/1/39 1,055,000.00 53,218.75 1,108,218.75 2,220,000.00 6/1/40 - 36,075.00 36,075.00 2,220,000.00
12/1/40 1,090,000.00 36,075.00 1,126,075.00 1,130,000.00 6/1/41 - 18,362.50 18,362.50 1,130,000.00
12/1/41 1,130,000.00 18,362.50 1,148,362.50 -
Totals 16,805,000.00 8,097,405.89 24,902,405.89
Schedule of 2019 Payments
(2007 Project, 2011 Project and 2019 Project)
Principal Amount: $16,805,000
Water System
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
311
Date Principal Interest Total Payment Balance
12,770,000.00
6/1/20 - 209,131.32 209,131.32 12,770,000.00
12/1/20 400,000.00 238,250.88 638,250.88 12,370,000.00
6/1/21 - 233,618.88 233,618.88 12,370,000.00
12/1/21 380,000.00 233,618.88 613,618.88 11,990,000.00
6/1/22 - 228,838.48 228,838.48 11,990,000.00
12/1/22 390,000.00 228,838.48 618,838.48 11,600,000.00
6/1/23 - 223,583.23 223,583.23 11,600,000.00
12/1/23 405,000.00 223,583.23 628,583.23 11,195,000.00
6/1/24 - 217,844.38 217,844.38 11,195,000.00
12/1/24 415,000.00 217,844.38 632,844.38 10,780,000.00
6/1/25 - 211,652.58 211,652.58 10,780,000.00
12/1/25 425,000.00 211,652.58 636,652.58 10,355,000.00
6/1/26 - 204,829.20 204,829.20 10,355,000.00
12/1/26 440,000.00 204,829.20 644,829.20 9,915,000.00
6/1/27 - 197,325.00 197,325.00 9,915,000.00
12/1/27 460,000.00 197,325.00 657,325.00 9,455,000.00
6/1/28 - 185,825.00 185,825.00 9,455,000.00
12/1/28 480,000.00 185,825.00 665,825.00 8,975,000.00
6/1/29 - 173,825.00 173,825.00 8,975,000.00
12/1/29 510,000.00 173,825.00 683,825.00 8,465,000.00
6/1/30 - 161,075.00 161,075.00 8,465,000.00
12/1/30 540,000.00 161,075.00 701,075.00 7,925,000.00
6/1/31 - 147,575.00 147,575.00 7,925,000.00
12/1/31 565,000.00 147,575.00 712,575.00 7,360,000.00
6/1/32 - 133,450.00 133,450.00 7,360,000.00
12/1/32 600,000.00 133,450.00 733,450.00 6,760,000.00
6/1/33 - 118,450.00 118,450.00 6,760,000.00
12/1/33 630,000.00 118,450.00 748,450.00 6,130,000.00
6/1/34 - 102,700.00 102,700.00 6,130,000.00
12/1/34 665,000.00 102,700.00 767,700.00 5,465,000.00
6/1/35 - 86,075.00 86,075.00 5,465,000.00
12/1/35 705,000.00 86,075.00 791,075.00 4,760,000.00
6/1/36 - 75,500.00 75,500.00 4,760,000.00
12/1/36 730,000.00 75,500.00 805,500.00 4,030,000.00
6/1/37 - 64,550.00 64,550.00 4,030,000.00
12/1/37 750,000.00 64,550.00 814,550.00 3,280,000.00
6/1/38 - 53,300.00 53,300.00 3,280,000.00
12/1/38 775,000.00 53,300.00 828,300.00 2,505,000.00
6/1/39 - 40,706.25 40,706.25 2,505,000.00
12/1/39 805,000.00 40,706.25 845,706.25 1,700,000.00
6/1/40 - 27,625.00 27,625.00 1,700,000.00
12/1/40 835,000.00 27,625.00 862,625.00 865,000.00
6/1/41 - 14,056.25 14,056.25 865,000.00
12/1/41 865,000.00 14,056.25 879,056.25 -
Totals 12,770,000.00 6,252,190.70 19,022,190.70
Schedule of 2019 Payments
(2007 Project, 2011 Project and 2019 Project)
Principal Amount: $12,770,000
Wastewater System
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
312
Date Principal Interest Total Balance
4,115,000.00
6/1/20 - 67,083.95 67,083.95 4,115,000.00
12/1/20 130,000.00 76,424.75 206,424.75 3,985,000.00
6/1/21 - 74,919.35 74,919.35 3,985,000.00
12/1/21 125,000.00 74,919.35 199,919.35 3,860,000.00
6/1/22 - 73,346.85 73,346.85 3,860,000.00
12/1/22 125,000.00 73,346.85 198,346.85 3,735,000.00
6/1/23 - 71,662.48 71,662.48 3,735,000.00
12/1/23 135,000.00 71,662.48 206,662.48 3,600,000.00
6/1/24 - 69,749.53 69,749.53 3,600,000.00
12/1/24 135,000.00 69,749.53 204,749.53 3,465,000.00
6/1/25 - 67,735.33 67,735.33 3,465,000.00
12/1/25 140,000.00 67,735.33 207,735.33 3,325,000.00
6/1/26 - 65,487.63 65,487.63 3,325,000.00
12/1/26 140,000.00 65,487.63 205,487.63 3,185,000.00
6/1/27 - 63,099.93 63,099.93 3,185,000.00
12/1/27 145,000.00 63,099.93 208,099.93 3,040,000.00
6/1/28 - 59,725.00 59,725.00 3,040,000.00
12/1/28 155,000.00 59,725.00 214,725.00 2,885,000.00
6/1/29 - 55,850.00 55,850.00 2,885,000.00
12/1/29 165,000.00 55,850.00 220,850.00 2,720,000.00
6/1/30 - 51,725.00 51,725.00 2,720,000.00
12/1/30 175,000.00 51,725.00 226,725.00 2,545,000.00
6/1/31 - 47,350.00 47,350.00 2,545,000.00
12/1/31 180,000.00 47,350.00 227,350.00 2,365,000.00
6/1/32 - 42,850.00 42,850.00 2,365,000.00
12/1/32 190,000.00 42,850.00 232,850.00 2,175,000.00
6/1/33 - 38,100.00 38,100.00 2,175,000.00
12/1/33 200,000.00 38,100.00 238,100.00 1,975,000.00
6/1/34 - 33,100.00 33,100.00 1,975,000.00
12/1/34 215,000.00 33,100.00 248,100.00 1,760,000.00
6/1/35 - 27,725.00 27,725.00 1,760,000.00
12/1/35 225,000.00 27,725.00 252,725.00 1,535,000.00
6/1/36 - 24,350.00 24,350.00 1,535,000.00
12/1/36 235,000.00 24,350.00 259,350.00 1,300,000.00
6/1/37 - 20,825.00 20,825.00 1,300,000.00
12/1/37 240,000.00 20,825.00 260,825.00 1,060,000.00
6/1/38 - 17,225.00 17,225.00 1,060,000.00
12/1/38 250,000.00 17,225.00 267,225.00 810,000.00
6/1/39 - 13,162.50 13,162.50 810,000.00
12/1/39 260,000.00 13,162.50 273,162.50 550,000.00
6/1/40 - 8,937.50 8,937.50 550,000.00
12/1/40 270,000.00 8,937.50 278,937.50 280,000.00
6/1/41 - 4,550.00 4,550.00 280,000.00
12/1/41 280,000.00 4,550.00 284,550.00 -
Totals 4,115,000.00 2,006,460.90 6,121,460.90
Schedule of 2019 Payments
(2007 Project, 2011 Project and 2019 Project)
Principal Amount: $4,115,000
Storm Drain System
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
313
Date Principal Interest Total Balance
44,860,000
6/1/21 - 1,056,702 1,056,702 44,860,000
12/1/21 - 897,200 897,200 44,860,000
6/1/22 - 897,200 897,200 44,860,000
12/1/22 - 897,200 897,200 44,860,000
6/1/23 - 897,200 897,200 44,860,000
12/1/23 - 897,200 897,200 44,860,000
6/1/24 - 897,200 897,200 44,860,000
12/1/24 - 897,200 897,200 44,860,000
6/1/25 - 897,200 897,200 44,860,000
12/1/25 - 897,200 897,200 44,860,000
6/1/26 - 897,200 897,200 44,860,000
12/1/26 - 897,200 897,200 44,860,000
6/1/27 - 897,200 897,200 44,860,000
12/1/27 - 897,200 897,200 44,860,000
6/1/28 - 897,200 897,200 44,860,000
12/1/28 - 897,200 897,200 44,860,000
6/1/29 - 897,200 897,200 44,860,000
12/1/29 520,000 897,200 1,417,200 44,340,000
6/1/30 - 886,800 886,800 44,340,000
12/1/30 535,000 886,800 1,421,800 43,805,000
6/1/31 - 876,100 876,100 43,805,000
12/1/31 560,000 876,100 1,436,100 43,245,000
6/1/32 - 864,900 864,900 43,245,000
12/1/32 575,000 864,900 1,439,900 42,670,000
6/1/33 - 853,400 853,400 42,670,000
12/1/33 600,000 853,400 1,453,400 42,070,000
6/1/34 - 841,400 841,400 42,070,000
12/1/34 615,000 841,400 1,456,400 41,455,000
6/1/35 - 829,100 829,100 41,455,000
12/1/35 630,000 829,100 1,459,100 40,825,000
6/1/36 - 816,500 816,500 40,825,000
12/1/36 655,000 816,500 1,471,500 40,170,000
6/1/37 - 803,400 803,400 40,170,000
12/1/37 675,000 803,400 1,478,400 39,495,000
6/1/38 - 789,900 789,900 39,495,000
12/1/38 705,000 789,900 1,494,900 38,790,000
6/1/39 - 775,800 775,800 38,790,000
12/1/39 725,000 775,800 1,500,800 38,065,000
6/1/40 - 761,300 761,300 38,065,000
12/1/40 755,000 761,300 1,516,300 37,310,000
6/1/41 - 746,200 746,200 37,310,000
12/1/41 780,000 746,200 1,526,200 36,530,000
6/1/42 - 730,600 730,600 36,530,000
12/1/42 1,985,000 730,600 2,715,600 34,545,000
6/1/43 690,900 690,900 34,545,000
12/1/43 2,065,000 690,900 2,755,900 32,480,000
6/1/44 649,600 649,600 32,480,000
12/1/44 2,150,000 649,600 2,799,600 30,330,000
6/1/45 606,600 606,600 30,330,000
12/1/45 2,240,000 606,600 2,846,600 28,090,000
6/1/46 561,800 561,800 28,090,000
12/1/46 2,330,000 561,800 2,891,800 25,760,000
6/1/47 515,200 515,200 25,760,000
12/1/47 2,425,000 515,200 2,940,200 23,335,000
6/1/48 466,700 466,700 23,335,000
12/1/48 2,525,000 466,700 2,991,700 20,810,000
6/1/49 416,200 416,200 20,810,000
12/1/49 2,630,000 416,200 3,046,200 18,180,000
6/1/50 363,600 363,600 18,180,000
12/1/50 2,735,000 363,600 3,098,600 15,445,000
6/1/51 308,900 308,900 15,445,000
12/1/51 2,845,000 308,900 3,153,900 12,600,000
6/1/52 252,000 252,000 12,600,000
12/1/52 2,965,000 252,000 3,217,000 9,635,000
6/1/53 192,700 192,700 9,635,000
12/1/53 3,085,000 192,700 3,277,700 6,550,000
6/1/54 131,000 131,000 6,550,000
12/1/54 3,210,000 131,000 3,341,000 3,340,000
6/1/55 66,800 66,800 3,340,000
12/1/55 3,340,000 66,800 3,406,800 -
Totals 44,860,000.00 47,903,902.22 92,763,902.22
Principal Amount: $44,860,000
Water System
Schedule of 2020A Payments
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
314
Date Principal Interest Total Payment Balance
34,760,000
6/1/21 - 818,791 818,791 34,760,000
12/1/21 - 695,200 695,200 34,760,000
6/1/22 - 695,200 695,200 34,760,000
12/1/22 - 695,200 695,200 34,760,000
6/1/23 - 695,200 695,200 34,760,000
12/1/23 - 695,200 695,200 34,760,000
6/1/24 - 695,200 695,200 34,760,000
12/1/24 - 695,200 695,200 34,760,000
6/1/25 - 695,200 695,200 34,760,000
12/1/25 - 695,200 695,200 34,760,000
6/1/26 - 695,200 695,200 34,760,000
12/1/26 - 695,200 695,200 34,760,000
6/1/27 - 695,200 695,200 34,760,000
12/1/27 - 695,200 695,200 34,760,000
6/1/28 - 695,200 695,200 34,760,000
12/1/28 - 695,200 695,200 34,760,000
6/1/29 - 695,200 695,200 34,760,000
12/1/29 405,000 695,200 1,100,200 34,355,000
6/1/30 - 687,100 687,100 34,355,000
12/1/30 420,000 687,100 1,107,100 33,935,000
6/1/31 - 678,700 678,700 33,935,000
12/1/31 440,000 678,700 1,118,700 33,495,000
6/1/32 - 669,900 669,900 33,495,000
12/1/32 450,000 669,900 1,119,900 33,045,000
6/1/33 - 660,900 660,900 33,045,000
12/1/33 470,000 660,900 1,130,900 32,575,000
6/1/34 - 651,500 651,500 32,575,000
12/1/34 485,000 651,500 1,136,500 32,090,000
6/1/35 - 641,800 641,800 32,090,000
12/1/35 495,000 641,800 1,136,800 31,595,000
6/1/36 - 631,900 631,900 31,595,000
12/1/36 510,000 631,900 1,141,900 31,085,000
6/1/37 - 621,700 621,700 31,085,000
12/1/37 530,000 621,700 1,151,700 30,555,000
6/1/38 - 611,100 611,100 30,555,000
12/1/38 555,000 611,100 1,166,100 30,000,000
6/1/39 - 600,000 600,000 30,000,000
12/1/39 570,000 600,000 1,170,000 29,430,000
6/1/40 - 588,600 588,600 29,430,000
12/1/40 590,000 588,600 1,178,600 28,840,000
6/1/41 - 576,800 576,800 28,840,000
12/1/41 615,000 576,800 1,191,800 28,225,000
6/1/42 - 564,500 564,500 28,225,000
12/1/42 1,535,000 564,500 2,099,500 26,690,000
6/1/43 533,800 533,800 26,690,000
12/1/43 1,595,000 533,800 2,128,800 25,095,000
6/1/44 501,900 501,900 25,095,000
12/1/44 1,660,000 501,900 2,161,900 23,435,000
6/1/45 468,700 468,700 23,435,000
12/1/45 1,730,000 468,700 2,198,700 21,705,000
6/1/46 434,100 434,100 21,705,000
12/1/46 1,800,000 434,100 2,234,100 19,905,000
6/1/47 398,100 398,100 19,905,000
12/1/47 1,875,000 398,100 2,273,100 18,030,000
6/1/48 360,600 360,600 18,030,000
12/1/48 1,950,000 360,600 2,310,600 16,080,000
6/1/49 321,600 321,600 16,080,000
12/1/49 2,030,000 321,600 2,351,600 14,050,000
6/1/50 281,000 281,000 14,050,000
12/1/50 2,115,000 281,000 2,396,000 11,935,000
6/1/51 238,700 238,700 11,935,000
12/1/51 2,200,000 238,700 2,438,700 9,735,000
6/1/52 194,700 194,700 9,735,000
12/1/52 2,290,000 194,700 2,484,700 7,445,000
6/1/53 148,900 148,900 7,445,000
12/1/53 2,385,000 148,900 2,533,900 5,060,000
6/1/54 101,200 101,200 5,060,000
12/1/54 2,480,000 101,200 2,581,200 2,580,000
6/1/55 51,600 51,600 2,580,000
12/1/55 2,580,000 51,600 2,631,600 -
Totals 34,760,000.00 37,075,991.11 71,835,991.11
Principal Amount: $34,760,000
Wastewater System
Schedule of 2020A Payments
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
315
Date Principal Interest Total Balance
11,705,000
6/1/21 - 275,718 275,718 11,705,000
12/1/21 - 234,100 234,100 11,705,000
6/1/22 - 234,100 234,100 11,705,000
12/1/22 - 234,100 234,100 11,705,000
6/1/23 - 234,100 234,100 11,705,000
12/1/23 - 234,100 234,100 11,705,000
6/1/24 - 234,100 234,100 11,705,000
12/1/24 - 234,100 234,100 11,705,000
6/1/25 - 234,100 234,100 11,705,000
12/1/25 - 234,100 234,100 11,705,000
6/1/26 - 234,100 234,100 11,705,000
12/1/26 - 234,100 234,100 11,705,000
6/1/27 - 234,100 234,100 11,705,000
12/1/27 - 234,100 234,100 11,705,000
6/1/28 - 234,100 234,100 11,705,000
12/1/28 - 234,100 234,100 11,705,000
6/1/29 - 234,100 234,100 11,705,000
12/1/29 140,000 234,100 374,100 11,565,000
6/1/30 - 231,300 231,300 11,565,000
12/1/30 145,000 231,300 376,300 11,420,000
6/1/31 - 228,400 228,400 11,420,000
12/1/31 155,000 228,400 383,400 11,265,000
6/1/32 - 225,300 225,300 11,265,000
12/1/32 160,000 225,300 385,300 11,105,000
6/1/33 - 222,100 222,100 11,105,000
12/1/33 165,000 222,100 387,100 10,940,000
6/1/34 - 218,800 218,800 10,940,000
12/1/34 170,000 218,800 388,800 10,770,000
6/1/35 - 215,400 215,400 10,770,000
12/1/35 175,000 215,400 390,400 10,595,000
6/1/36 - 211,900 211,900 10,595,000
12/1/36 180,000 211,900 391,900 10,415,000
6/1/37 - 208,300 208,300 10,415,000
12/1/37 190,000 208,300 398,300 10,225,000
6/1/38 - 204,500 204,500 10,225,000
12/1/38 195,000 204,500 399,500 10,030,000
6/1/39 - 200,600 200,600 10,030,000
12/1/39 200,000 200,600 400,600 9,830,000
6/1/40 - 196,600 196,600 9,830,000
12/1/40 205,000 196,600 401,600 9,625,000
6/1/41 - 192,500 192,500 9,625,000
12/1/41 215,000 192,500 407,500 9,410,000
6/1/42 - 188,200 188,200 9,410,000
12/1/42 510,000 188,200 698,200 8,900,000
6/1/43 178,000 178,000 8,900,000
12/1/43 535,000 178,000 713,000 8,365,000
6/1/44 167,300 167,300 8,365,000
12/1/44 555,000 167,300 722,300 7,810,000
6/1/45 156,200 156,200 7,810,000
12/1/45 575,000 156,200 731,200 7,235,000
6/1/46 144,700 144,700 7,235,000
12/1/46 600,000 144,700 744,700 6,635,000
6/1/47 132,700 132,700 6,635,000
12/1/47 625,000 132,700 757,700 6,010,000
6/1/48 120,200 120,200 6,010,000
12/1/48 650,000 120,200 770,200 5,360,000
6/1/49 107,200 107,200 5,360,000
12/1/49 675,000 107,200 782,200 4,685,000
6/1/50 93,700 93,700 4,685,000
12/1/50 705,000 93,700 798,700 3,980,000
6/1/51 79,600 79,600 3,980,000
12/1/51 735,000 79,600 814,600 3,245,000
6/1/52 64,900 64,900 3,245,000
12/1/52 765,000 64,900 829,900 2,480,000
6/1/53 49,600 49,600 2,480,000
12/1/53 795,000 49,600 844,600 1,685,000
6/1/54 33,700 33,700 1,685,000
12/1/54 825,000 33,700 858,700 860,000
6/1/55 17,200 17,200 860,000
12/1/55 860,000 17,200 877,200 -
Totals 11,705,000.00 12,433,217.78 24,138,217.78
Principal Amount: $11,705,000
Storm Drain System
Schedule of 2020A Payments
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
316
Date Principal Interest Total Balance
19,670,000
6/1/21 - 463,338 463,338 19,670,000
12/1/21 - 393,400 393,400 19,670,000
6/1/22 - 393,400 393,400 19,670,000
12/1/22 105,000 393,400 498,400 19,565,000
6/1/23 - 391,300 391,300 19,565,000
12/1/23 180,000 391,300 571,300 19,385,000
6/1/24 - 387,700 387,700 19,385,000
12/1/24 270,000 387,700 657,700 19,115,000
6/1/25 - 382,300 382,300 19,115,000
12/1/25 360,000 382,300 742,300 18,755,000
6/1/26 - 375,100 375,100 18,755,000
12/1/26 455,000 375,100 830,100 18,300,000
6/1/27 - 366,000 366,000 18,300,000
12/1/27 560,000 366,000 926,000 17,740,000
6/1/28 - 354,800 354,800 17,740,000
12/1/28 665,000 354,800 1,019,800 17,075,000
6/1/29 - 341,500 341,500 17,075,000
12/1/29 245,000 341,500 586,500 16,830,000
6/1/30 - 336,600 336,600 16,830,000
12/1/30 345,000 336,600 681,600 16,485,000
6/1/31 - 329,700 329,700 16,485,000
12/1/31 445,000 329,700 774,700 16,040,000
6/1/32 - 320,800 320,800 16,040,000
12/1/32 555,000 320,800 875,800 15,485,000
6/1/33 - 309,700 309,700 15,485,000
12/1/33 670,000 309,700 979,700 14,815,000
6/1/34 - 296,300 296,300 14,815,000
12/1/34 795,000 296,300 1,091,300 14,020,000
6/1/35 - 280,400 280,400 14,020,000
12/1/35 935,000 280,400 1,215,400 13,085,000
6/1/36 - 261,700 261,700 13,085,000
12/1/36 1,070,000 261,700 1,331,700 12,015,000
6/1/37 - 240,300 240,300 12,015,000
12/1/37 1,215,000 240,300 1,455,300 10,800,000
6/1/38 - 216,000 216,000 10,800,000
12/1/38 1,365,000 216,000 1,581,000 9,435,000
6/1/39 - 188,700 188,700 9,435,000
12/1/39 1,530,000 188,700 1,718,700 7,905,000
6/1/40 - 158,100 158,100 7,905,000
12/1/40 1,700,000 158,100 1,858,100 6,205,000
6/1/41 - 124,100 124,100 6,205,000
12/1/41 1,880,000 124,100 2,004,100 4,325,000
6/1/42 - 86,500 86,500 4,325,000
12/1/42 2,065,000 86,500 2,151,500 2,260,000
6/1/43 45,200 45,200 2,260,000
12/1/43 2,260,000 45,200 2,305,200 -
Totals 19,670,000.00 13,229,137.78 32,899,137.78
Principal Amount: $19,670,000
Water System
Schedule of 2020B Payments
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
317
Date Principal Interest Total Payment Balance
12,210,000
6/1/21 - 287,613 287,613 12,210,000
12/1/21 - 244,200 244,200 12,210,000
6/1/22 - 244,200 244,200 12,210,000
12/1/22 35,000 244,200 279,200 12,175,000
6/1/23 - 243,500 243,500 12,175,000
12/1/23 85,000 243,500 328,500 12,090,000
6/1/24 - 241,800 241,800 12,090,000
12/1/24 150,000 241,800 391,800 11,940,000
6/1/25 - 238,800 238,800 11,940,000
12/1/25 215,000 238,800 453,800 11,725,000
6/1/26 - 234,500 234,500 11,725,000
12/1/26 285,000 234,500 519,500 11,440,000
6/1/27 - 228,800 228,800 11,440,000
12/1/27 350,000 228,800 578,800 11,090,000
6/1/28 - 221,800 221,800 11,090,000
12/1/28 430,000 221,800 651,800 10,660,000
6/1/29 - 213,200 213,200 10,660,000
12/1/29 95,000 213,200 308,200 10,565,000
6/1/30 - 211,300 211,300 10,565,000
12/1/30 160,000 211,300 371,300 10,405,000
6/1/31 - 208,100 208,100 10,405,000
12/1/31 230,000 208,100 438,100 10,175,000
6/1/32 - 203,500 203,500 10,175,000
12/1/32 305,000 203,500 508,500 9,870,000
6/1/33 - 197,400 197,400 9,870,000
12/1/33 385,000 197,400 582,400 9,485,000
6/1/34 - 189,700 189,700 9,485,000
12/1/34 475,000 189,700 664,700 9,010,000
6/1/35 - 180,200 180,200 9,010,000
12/1/35 565,000 180,200 745,200 8,445,000
6/1/36 - 168,900 168,900 8,445,000
12/1/36 665,000 168,900 833,900 7,780,000
6/1/37 - 155,600 155,600 7,780,000
12/1/37 765,000 155,600 920,600 7,015,000
6/1/38 - 140,300 140,300 7,015,000
12/1/38 870,000 140,300 1,010,300 6,145,000
6/1/39 - 122,900 122,900 6,145,000
12/1/39 985,000 122,900 1,107,900 5,160,000
6/1/40 - 103,200 103,200 5,160,000
12/1/40 1,100,000 103,200 1,203,200 4,060,000
6/1/41 - 81,200 81,200 4,060,000
12/1/41 1,220,000 81,200 1,301,200 2,840,000
6/1/42 - 56,800 56,800 2,840,000
12/1/42 1,350,000 56,800 1,406,800 1,490,000
6/1/43 29,800 29,800 1,490,000
12/1/43 1,490,000 29,800 1,519,800 -
Totals 12,210,000.00 8,362,813.33 20,572,813.33
Principal Amount: $12,210,000
Wastewater System
Schedule of 2020B Payments
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
318
Date Principal Interest Total Balance
5,420,000
6/1/21 - 127,671 127,671 5,420,000
12/1/21 - 108,400 108,400 5,420,000
6/1/22 - 108,400 108,400 5,420,000
12/1/22 40,000 108,400 148,400 5,380,000
6/1/23 - 107,600 107,600 5,380,000
12/1/23 55,000 107,600 162,600 5,325,000
6/1/24 - 106,500 106,500 5,325,000
12/1/24 80,000 106,500 186,500 5,245,000
6/1/25 - 104,900 104,900 5,245,000
12/1/25 105,000 104,900 209,900 5,140,000
6/1/26 - 102,800 102,800 5,140,000
12/1/26 135,000 102,800 237,800 5,005,000
6/1/27 - 100,100 100,100 5,005,000
12/1/27 165,000 100,100 265,100 4,840,000
6/1/28 - 96,800 96,800 4,840,000
12/1/28 190,000 96,800 286,800 4,650,000
6/1/29 - 93,000 93,000 4,650,000
12/1/29 75,000 93,000 168,000 4,575,000
6/1/30 - 91,500 91,500 4,575,000
12/1/30 100,000 91,500 191,500 4,475,000
6/1/31 - 89,500 89,500 4,475,000
12/1/31 125,000 89,500 214,500 4,350,000
6/1/32 - 87,000 87,000 4,350,000
12/1/32 155,000 87,000 242,000 4,195,000
6/1/33 - 83,900 83,900 4,195,000
12/1/33 190,000 83,900 273,900 4,005,000
6/1/34 - 80,100 80,100 4,005,000
12/1/34 220,000 80,100 300,100 3,785,000
6/1/35 - 75,700 75,700 3,785,000
12/1/35 255,000 75,700 330,700 3,530,000
6/1/36 - 70,600 70,600 3,530,000
12/1/36 290,000 70,600 360,600 3,240,000
6/1/37 - 64,800 64,800 3,240,000
12/1/37 330,000 64,800 394,800 2,910,000
6/1/38 - 58,200 58,200 2,910,000
12/1/38 370,000 58,200 428,200 2,540,000
6/1/39 - 50,800 50,800 2,540,000
12/1/39 415,000 50,800 465,800 2,125,000
6/1/40 - 42,500 42,500 2,125,000
12/1/40 460,000 42,500 502,500 1,665,000
6/1/41 - 33,300 33,300 1,665,000
12/1/41 505,000 33,300 538,300 1,160,000
6/1/42 - 23,200 23,200 1,160,000
12/1/42 555,000 23,200 578,200 605,000
6/1/43 12,100 12,100 605,000
12/1/43 605,000 12,100 617,100 -
Totals 5,420,000.00 3,602,671.11 9,022,671.11
Principal Amount: $5,420,000
Storm Drain System
Schedule of 2020B Payments
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
319
Projections
REVENUES
The revenue projections are based on the following assumptions:
- Building permits will increase by the following amounts (the average number of permits issued since inception is 361 permits per year):
o FY 2025/2026: 300 permits
o FY 2026/2027: 300 permits
o FY 2027/2028: 300 permits
o FY 2028/2029: 300 permits
o FY 2029/2020: 300 permits
- Water rates will increase by 5% for 2025/26 and 2026/27 and 2% for 2027/28 based on the rate study.
- Wastewater rates will not increase based on the rate study. - Engineering News Record (ENR) will increase by 3% per year (three percent is the average ENR over the last five years).
Revenues by Fund
EST 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30
GENERAL FUNDS
General Fund
Property tax-secured 9,824,656 10,374,935 10,943,051 11,529,498 12,134,787 Property tax-secured-SB813 190,386 201,050 212,059 223,423 235,153 Property tax-unsecured 505,597 533,916 563,152 593,332 624,481 Property tax-unsecured-SB813 9,564 10,100 10,653 11,223 11,813 Property Transfer Tax 408,000 416,160 424,483 432,973 441,632 Sales Tax 86,700 88,434 90,203 92,007 93,847
License/permits-plan check 7,000 7,000 7,000 7,000 7,000 Franchises 416,100 431,084 446,068 461,051 476,035
Interest income 350,000 350,000 350,000 350,000 350,000 Rents/concessions 9,600 9,600 9,600 9,600 9,600
Homeowners' property tax relief 35,302 36,574 37,845 39,116 40,387 West Valley commercial 274,899 284,798 294,697 304,597 314,496 Utility services fee-solid waste 715,489 741,254 767,018 792,783 818,548 Charges for services 5,000 5,000 5,000 5,000 5,000
Other miscellaneous revenues 5,000 5,000 5,000 5,000 5,000 12,843,293 13,494,904 14,165,828 14,856,603 15,567,780
Traffic Impact Fee Program
Traffic impact administration fee 182,529 187,915 193,462 199,176 205,061 Communitiy Facility Fee Program
Community facility admin fee 217,873 224,334 230,989 237,844 244,904 Total General Funds 13,243,695 13,907,153 14,590,280 15,293,624 16,017,745 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
320
Revenues by Fund
EST 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30
SPECIAL ASSESSMENT FUNDS
Special Tax No. 1: Roads
Interest income 150,000 150,000 150,000 150,000 150,000 Special assessments-current 10,053,495 10,686,967 11,346,977 12,034,500 12,750,543 10,203,495 10,836,967 11,496,977 12,184,500 12,900,543
Special Tax No. 2: Public Safety
Interest income - - - - -
Special assessments-current 5,149,029 5,473,470 5,811,503 6,163,627 6,530,358 5,149,029 5,473,470 5,811,503 6,163,627 6,530,358
Special Tax No. 3: Parks
Interest income - - - - -
Rents/concessions 110,000 110,000 110,000 110,000 110,000 Special assessments-current 887,278 943,186 1,001,435 1,062,113 1,125,308 997,278 1,053,186 1,111,435 1,172,113 1,235,308
Special Tax No. 4: Public Works
Interest income 10,000 10,000 10,000 10,000 10,000
Special assessments-current 934,181 993,044 1,054,373 1,118,258 1,184,794 944,181 1,003,044 1,064,373 1,128,258 1,194,794
Total Special Assessment Funds 17,293,984 18,366,666 19,484,288 20,648,498 21,861,002 Revenues by Fund
EST 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30
SPECIAL REVENUE FUNDS
Development Services
Charges for services 2,014,456 2,095,034 2,178,836 2,265,989 2,356,629 Gas Tax
Gas tax 617,946 634,630 651,765 669,363 687,436
Measure K
Measure K funds 604,278 620,594 637,350 654,558 672,231 Total Special Revenue Funds 3,236,680 3,350,258 3,467,951 3,589,910 3,716,296 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
321
Revenues by Fund
EST 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30
ENTERPRISE FUNDS
Water Operations
Interest income - - - - -
Utility service fee-operations 6,020,370 6,559,035 7,136,515 7,755,346 8,418,219 Miscellaneous revenue 6,000 6,000 6,000 6,000 6,000
6,026,370 6,565,035 7,142,515 7,761,346 8,424,219
Water Debt Service
Utility service fee-pledged facility 6,149,069 6,571,644 7,014,040 7,477,065 7,961,558 Interest income - - - - -
6,149,069 6,571,644 7,014,040 7,477,065 7,961,558
Wastewater Operations
Interest income 10,000 10,000 10,000 10,000 10,000
Utility service fee-operations 4,147,635 4,303,561 4,459,487 4,615,413 4,771,339 4,157,635 4,313,561 4,469,487 4,625,413 4,781,339
Wastewater Debt Service
Utility service fee-pledged facility 4,464,883 4,771,718 5,092,945 5,429,150 5,780,944 4,464,883 4,771,718 5,092,945 5,429,150 5,780,944
Storm Operations
Interest income 15,000 15,000 15,000 15,000 15,000
Utility service fee-operations 793,856 823,700 853,544 883,388 913,233 Storm drain system-NPDES 225,000 225,000 225,000 225,000 225,000 1,033,856 1,063,700 1,093,544 1,123,388 1,153,233
Storm Debt Service
Utility service fee-pledged facility 1,568,103 1,675,866 1,788,684 1,906,762 2,030,315 Interest income - - - - -
1,568,103 1,675,866 1,788,684 1,906,762 2,030,315
Total Enterprise Funds 23,399,917 24,961,525 26,601,215 28,323,124 30,131,608 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
322
Revenues by Fund
EST 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30
RESTRICTED FUNDS
Landscape & Lighting District 1
Interest income - - - - -
Special assessments-current 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000
Landscape & Lighting District 2
Interest income - - - - -
Special assessments-current 41,000 41,000 41,000 41,000 41,000 41,000 41,000 41,000 41,000 41,000
Landscape & Lighting District 3
Interest income - - - - -
Special assessments-current 370,000 370,000 370,000 370,000 370,000 370,000 370,000 370,000 370,000 370,000
TIF Impact Fee
Interest income 100,000 100,000 100,000 100,000 100,000 Impact mitigation fee 4,112,172 4,235,537 4,362,603 4,493,481 4,628,286 4,212,172 4,335,537 4,462,603 4,593,481 4,728,286
CFF Impact Fee
Interest income 100,000 100,000 100,000 100,000 100,000 Loan interest 6,445 6,445 6,445 6,445 6,445
Community facility impact 4,783,526 4,927,032 5,074,843 5,227,088 5,383,901 4,889,971 5,033,477 5,181,288 5,333,533 5,490,346
Total Restricted Funds 9,573,143 9,840,014 10,114,891 10,398,014 10,689,631 TOTAL FUNDS 66,747,418 70,425,616 74,258,624 78,253,170 82,416,282 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
323
EXPENDITURES
The expenditure projections are based on the following assumptions:
- Personnel cost will increase by 6% annually.
- Utility expenditures will increase by 6% annually.
- Landscaping will increase by 6% annually.
- Road maintenance will increase by 9% annually.
- Slight increases are built in based on expected increases to line items.
Expenditures by Fund
EST 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 General Funds
General Fund 4,647,345 4,833,238 5,026,568 5,227,631 5,436,736 Traffic Impact 213,200 221,728 230,597 239,821 249,414
Community Facilities 202,800 210,912 219,348 228,122 237,247 Total General Funds 5,063,345 5,265,878 5,476,513 5,695,574 5,923,397 Special Assessment Funds
Special Tax # 1 - Roads 3,331,126 3,530,993 3,742,853 3,967,424 4,205,469 Special Tax # 2 - Public Safety 9,111,455 9,475,913 9,854,949 10,249,147 10,659,113 Special Tax # 3 - Parks 4,602,977 4,787,097 4,978,580 5,177,724 5,384,833 Special Tax # 4 - Public Works 1,000,501 1,040,521 1,082,142 1,125,428 1,170,445 Total Special Assessment Funds 18,046,059 18,834,524 19,658,525 20,519,723 21,419,860 Special Revenue Funds
Development Services 5,214,828 5,423,422 5,640,358 5,865,973 6,100,612 Gas Tax 617,946 634,630 651,765 669,363 687,436
Measure K
Total Special Revenue Funds 5,832,774 6,058,052 6,292,124 6,535,336 6,788,048 Utility Funds
Water O & M 5,743,896 5,973,651 6,212,597 6,461,101 6,719,545 Wastewater O & M 3,116,696 3,241,364 3,371,019 3,505,860 3,646,094 Stormwater O & M 929,326 966,500 1,005,160 1,045,366 1,087,181 Total Utility Funds 9,789,918 10,181,515 10,588,776 11,012,327 11,452,820 Restricted Funds
Lighting & Landscaping District 1 34,112 35,476 36,896 38,371 39,906 Lighting & Landscaping District 2 27,750 28,860 30,014 31,215 32,464 Lighting & Landscaping District 3 39,500 41,080 42,723 44,432 46,209 Total Restricted Funds 101,362 105,416 109,633 114,018 118,579 Debt Service
Debt Payments 21,077,754 22,181,798 23,333,114 24,533,546 25,785,004 Total Debt Service 21,077,754 22,181,798 23,333,114 24,533,546 25,785,004 Capital Projects
Capital Projects 7,231,525 7,339,500 3,980,200 1,830,500 1,885,415 Total Capital Projects 7,231,525 7,339,500 3,980,200 1,830,500 1,885,415 Total 67,142,737 69,966,683 69,438,885 70,241,024 73,373,123 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
324
MHCSD 2025/26 Fee Schedule
Any work performed may require a deposit and reimbursement agreement.
Deposit amounts, if not specified, will be based on project complexity and scope.
Processing and permit fees are non-refundable.
Deposits shall be subject to Reimbursement Agreements.
Services will be charged on a time and material basis.
Item Description
1 Building permit processing $50
2 Prepare agreement Deposit $5,000 + actual cost + recording fees
Includes reimbursement agreement; acquisition agreement; annexation agreement, memorandum of understanding; deferred improvement agreement; irrevocable offer to dedicate 3 Purchase of City documents Actual Cost
Electronic version (on CD) of any City document $50
Design manual $65
Development standards and specifications $100
Storm drain master plan $90
Water master plan $65
Sanitary sewer master plan $45
Miscellaneous copy costs per page $0.25
Shipping and handling Actual cost + $5
4 Water meter fee (for City installed meters)
1-inch water meter Actual cost + labor
1 1/2-inch water meter Actual cost + labor
2-inch disc water meter Actual cost + labor
Disc meters greater than 2 inches Actual cost + labor
Turbo meters, compound meters, fire service meters and specialty meters Actual cost + labor Construction water usage permit per month Fees as indicated on permit Temporary water service from a fire hydrant $100
Temporary water service for testing new water lines $100 Realtor reconnect fee $200
5 Cut or damaged lock fee Actual cost + labor
Meter / corporation stop valve repairs / replacements Actual cost + labor 6 Utility servicing fees
Returned check fee $35
Utilities late payment fee (charges not paid by delinquent date specified on bill) 10% of unpaid balance Unpaid invoice late payment fee - additional months 1% per Month 10 day notice letter $25
Water service disconnection / reconnection $100
Utility bill payment (amortization) plan $40
At the time a payment plan is approved, 10% of unpaid balance must be paid in addition to the $40 fee Meter Damage/Tampering $1,000
Meter Lock (Damaged or Replaced) $100
Lien Processing Fee $100
Unpaid invoice late payment fee 10% of unpaid balance
Initial permit fees assume a one-time process and handling. Additional fees to be collected with issuance of permit based on estimated staff time or to be invoiced at time and material rates.
All work performed by or on behalf of the City on any development project will be pursuant to an agreement and paid by the Applicant at the full cost including overhead. The City Manager may set an interim fee as a deposit and reconcile to the final cost annually.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
325
Glossary
Adopted Budget - The City budget for a fiscal year, adopted by the City Council by resolution following the close of budget hearings.
Appropriation - Legal authorization granted by City Council or other policy body to make expenditures and incur obligations for a specific purpose within a specific time frame.
Assessed Valuation - A dollar value placed on real estate or other property by the County as a basis for levying property taxes.
Audit - A review of the City’s accounts by an independent auditing firm to substantiate fiscal year-end balances and assure compliance with generally accepted standards for financial accounting and reporting.
Available Fund Balance - The amount of fund balance available to finance appropriation requirements after deducting reserves.
Bond Proceeds - The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.
Bonds - A certificate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a specified future date.
Budget - A plan of financial operation, embodying an estimate of proposed expenditures/ expenses for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). Upon approval by the City Council , the budget appropriation resolution is the legal basis for expenditures in the fiscal year.
Budget Authority - Under certain circumstances, the City Council may adjust the budgeted appropriations for reasons unforeseen at the time of the adoption of the original budget. Such amendments are made by Board resolution. The City Manager may make transfers of appropriations within a fund family.
Budgetary Control – The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues.
Capital Improvement Budget - Annual appropriations for capital improvement projects such as street improvements, building construction and various kinds of major facility maintenance. Capital projects are outlined in a five-year expenditure plan which details funding sources and expenditure amounts. They often are multi-year projects which require funding beyond the one-year period of the annual budget.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
326
Capital Investment Program (CIP) - A section in the five-year capital plan listing projects for which some level of funding is available.
Capital Outlay - Expenditures which result in the acquisition of, or addition to, fixed assets.
Capital Project - Any project having assets of significant value and a useful life of five years or more. Capital projects include the purchase of land, design, engineering, and construction of buildings, infrastructure such as streets, bridges, drainage, street lighting, water/sewer systems, etc.
Capital Projects Fund - A fund created to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds).
Capitalization Policy - The criteria used by a government to determine which outlays should be reported as fixed assets.
Cash with Fiscal Agent - An asset account reflecting deposits with fiscal agents, such as commercial banks, for the payment of bond principal and interest.
Consumer Price Index (CPI) - A statistical description of price levels provided by the U.S. Department of Labor. The change in this index from year to year is used to measure the cost of living and economic inflation.
Contingency - An amount of money appropriated for unforeseen expenditures.
Current Service Charges - These are charges imposed to support services provided to individuals. These charges may not exceed the cost of providing the service plus overhead. The rationale behind service charges is that certain services are primarily for the benefit of individuals rather than the general public.
Debt Service - Payment of the principal and interest on an obligation, resulting from the issuance of bonds, notes or leasing arrangements.
Debt Service Fund - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.
Deficit - An excess of expenditures (expenses) over revenues (resources).
Depreciation - (1) Expiration in the service life of fixed assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. (2) The portion of the cost of a fixed asset, other than wasting assets, charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset is ultimately charged off as an expense.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
327
Designated Fund Balance - A portion of an unreserved fund balance that has been “earmarked” by the City Manager or the City Council for specified purposes.
Designation - An account containing money set aside by the City Council for a specific future use. Money in a designation is earmarked for specific use but may not be legally restricted to that use.
Development Impact Fees - Fees placed on the development of land or conditions required for the approval of a development project such as the donation (“dedication” or “exaction”) of certain lands (or money) to specific public uses. The fees are typically justified as an offset to the future impact that development will have on existing infrastructure.
Encumbrance - An anticipated expenditure committed for the payment of goods and services not yet received or paid for. Used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed.
Enterprise Fund - A fund established to account for operations financed and operated in a manner similar to private business enterprises (e.g., water, gas and electric utilities, airports, parking garages, or transit systems). In this case the governing body intends those costs (i.e., expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. A fund established because the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management controls, accountability or other purposes.
Expenditures - Monies spent, including current operating expenses, debt service and capital outlays.
Expense - The actual spending of funds by an enterprise fund set aside by an appropriation.
Fiscal Year - In accounting terms, it is the net of a twelve-month period used for budgeting and accounting purposes. For the Mountain House Community Services District the period begins on July 1 and ends on June 30 of the subsequent year.
Fixed Assets - Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, and improvements other than buildings and land. In the private sector, these assets are referred to most often as property, plant and equipment.
Franchises Fees- Fees paid to a municipality from a franchisee for “rental” or the ability to provide services to the community. Telephone utilities are specifically exempted from franchise fees by State law.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
328
Full-Time Equivalent (FTE) - The amount of time a regular full or part-time position has been budgeted for in terms of the amount of time an employee works in a year.
Fund - An independent fiscal and accounting entity with a self-balancing set of accounts. Examples are the General Fund, Special Revenue Funds, Capital Projects, Enterprise, and Internal Service Funds.
Fund Balance - The amount of financial resources available for use. Generally, this represents a summary of all the annual operating surpluses and deficits since the fund's inception.
FY - Fiscal year.
General Operating Fund - The primary fund used to account for all revenues and expenditures of the City not legally restricted as to use. This fund is used to offset the cost of the City’s general operations. Examples of departments financed by the General Fund include the Police and Administrative Support Services Departments.
Government Accounting Standards Board (GASB) - A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.
Grant - Contributions, gifts of cash or other assets from another governmental entity to be used or expended for a specific purpose, activity or facility.
Homeowner’s Property Tax Relief - Revenue from the state to offset city loss of property tax for state-imposed $7,000 per dwelling homeowner exemption.
Infrastructure - Facilities on which the continuance and growth of a community depend, such as streets and roads, sewers, public buildings, parks, etc.
Investment Earnings - Revenue earned from the investment of idle public funds.
Joint Powers Authority - The Joint Exercise of Powers Act authorizes local public agencies to exercise common powers and to form joint powers authorities (JPAs) for the purpose of jointly receiving or providing specific services.
Legal Level of Budgetary Control - The level at which spending in excess of budgeted amounts would be a violation of law.
Level of Budgetary Control - One of the three possible levels of budgetary control and authority to which organizations, programs, activities and functions may be subject.
These levels of budgetary control are: (a) appropriated budget, (b) legally authorized non-appropriated budget review and approval process, which is outside the appropriated budget process or (c) non-budgeted financial activities, which are not subject to the appropriated budget and the appropriation process or to any legally authorized non-appropriated budget review and approval process, but still are relevant for sound financial management and oversight.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
329
Levy - (Verb) to impose taxes, special assessments or service charges for the support of governmental activities; (Noun) the total amounts of taxes, and/or special assessments and/or service charges imposed by a governmental agency.
Licenses and Permits - Charges designed to reimburse the City for costs of regulating activities being licensed, such as the permitting of changes to landscaping, driveway encroachments etc.
Lien - A claim on assets, especially property, for the payment of taxes utility service charges or services.
Liquidity - Refers to the ability to rapidly convert an investment into cash.
Local Agency Investment Fund (LAIF) - Was established by the state to enable treasurers to place idle funds in a pool for investment. Each agency is currently limited to LAIF to an investment of $20 million plus any bond proceeds.
Mission Statement - A succinct description of the scope and purpose of the City or department.
Objectives - The expected results or achievements of a budget activity which can be measured and achieved within a given time frame. Achievement of the objective advances the organization towards a corresponding goal.
Operating Budget - Annual appropriation of funds for on-going program costs, including salaries and benefits, services and supplies, debt service and capital outlay.
Ordinance - A formal legislative enactment by the City Council . It has the full force and effect of law within the City boundaries unless preempted by a higher form of law.
Other Expenditures - This category reflects transfer outs of the General Fund.
Transfers are used to move funds to other operating funds in order to finance the operations of another fund or to reimburse the other fund for certain services provided to the General Fund.
Other Revenues - This category includes reimbursements from other government agencies, interest earned on investments and contributions. This category also includes some loan repayments made to the General Fund.
Overhead Allocation - A methodology for identifying and allocating overhead, (indirect) costs incurred by the employees to the direct cost programs.
Performance Measure - An annual indicator of achievement or measures of prediction for a program of work unit as defined in the organization of the budget. Measures may be expressed as a number count, fraction, or a percent of achievement related to the size of the problem or service being provided.
Permits, Fees and Charges for Services - This category includes the City’s charges and fees for licenses and permits issued by the City; as well as, the community Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
330
development services of staff, provided to customers. The license and permit revenues are designed to reimburse the City for costs of regulating the activities being licensed.
Fees and charges for services are imposed to support services provided to individuals and businesses.
Property Tax – (Ad Valorem) Homes, businesses, and other taxable real and personal property are subject to a property tax rate of 1% of assessed value. Since Proposition 13 was enacted in 1978, the assessed valuation of real property in the “base year” of 1975-1976 may increase each year by the change in the Consumer Price Index (CPI), not to exceed 2% as long as it is held by the same owner. When there is a transfer of property ownership, or when property is newly constructed, it is reappraised at its current full market value. The property tax is imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property (movable property) located within the state. By definition, this ad valorem tax is based on the property value, as defined in law, rather than on a fixed amount or benefit.
Proposed Budget - The financial and operating document submitted by the City Manager to the City Council for consideration.
Proposition 13 - Article XIIIA of the California Constitution, commonly known as Proposition 13, which limits the maximum annual increase of any ad valorem tax on real property to 1% of the full cash value of such property.
Purchased Services - This category covers a wide-range of services such as consulting services, outside professional, legal, and auditing services, county services, i.e., supplemental police patrol, and animal control services, District facilities maintenance services, etc.
Reimbursement for State Mandated Costs - Article XIIIB, Section 6 of the California Constitution which requires the State to reimburse local agencies for the cost of stateimposed programs. Process is commonly called “SB 90” after its original 1972 legislation.
Reserve - An account used to record a portion of the fund balance as legally segregated for a specific use, usually at a future time.
Resolution - A special order of the City Council which has a lower legal standing than an ordinance.
Revenues - Monies received or anticipated by a local government from both tax and non-tax sources during the fiscal year.
Salaries And Benefits - This major category accounts for full-time and part-time employees, overtime expenses and all employee benefits, such as medical, dental, retirement, life insurance, long term disability, and workers compensation.
SB 90 - Reimbursement process for state mandated costs, named after its original 1972 legislation.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
331
Service Charges - Charges imposed to support services to individuals or to cover the cost of providing such services. The fees charged are limited to the cost of providing the service or regulation required (plus overhead).
Services - Expenditures/expenses for services.
Special Revenue Fund - A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specific purposes. GAAP only require the use of special revenue funds when legally mandated.
Supplemental Property Tax - In the event a property changes ownership, the county collects a supplemental property tax assessment in the current tax year by determining a supplemental value. In future tax periods, the property carries the full cash value.
Supplies and Materials - This category of expenses relates to supplies needed and required to operate as a cost of doing business. Some of the major supplies consist of general office supplies, safety supplies, utilities and fuel for District vehicles, etc.
Tax - Compulsory charge levied by a government for the purpose of financing services performed for the common benefit.
Tax Base - The objects or transactions to which a tax is applied (e.g., parcels of property, retail sales, etc.). State law or local ordinances define the tax base and the objects or transactions exempted from taxation.
Tax Rate - The amount of tax applied to the tax base. The rate may be flat, incremental or a percentage of the tax base, or any other reasonable method.
Trust Funds - Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, other governments and/or other funds.
Undesignated Fund Balance - The City will maintain an Undesignated General Fund Balance to help mitigate the effects of such unanticipated situations as the following:
- Economic downturns
- Loss of revenues to or imposition of additional costs by other governmental agencies
- Errors in financial forecasting
- Natural disasters
Unreserved Fund Balance - That portion of a fund balance available for spending or appropriation in the future.
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
332
Index
Adjustment ......................................... 37 Administration Department..... 67, 70, 71
Adopted Budget ............................... 314
Appropriation...................... 37, 162, 314
Audit................................................. 314 balanced budget................................. 36
benefits....................... 31, 295, 318, 320
Bethany...................................... 20, 147
Board of Directors 19, 35, 36, 37, 67, 75,
293, 294, 295, 314, 316, 318, 319
Board of Directors & Deputy Secretary
Division ..................................... 67, 75
Bonds............................................... 314 Budget Authority............................... 314
Budget Guide ............................... 34, 35
Budget Message ........................ 2, 5, 35
Budget Schedule................................ 35
Budgetary Control .................... 314, 317
Builders Fund ..... 41, 121, 122, 123, 124
capital improvements ....... 7, 8, 295, 296
Capital Outlay................................... 315
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
333
Capital Project............................ 42, 315
Capital Projects Fund............... 135, 315
Capital Projects Funds ....................... 42
CFF .............................................. 57, 89 Code Enforcement Division................ 97
Community Facilities Fees ....... 109, 133
Community Facilities Fund............... 115
compensation..................... 31, 292, 320
Consumer Price Index.............. 315, 319
Contingency ............................. 147, 315
Customer Service Division ................. 80
Debt Service......... 43, 57, 109, 133, 315
Department Budgets .................... 35, 65
Development Division......................... 92
drought................................... 9, 10, 147
Emergency Preparedness Services
Division ......................................... 108
Encumbrance ................................... 316
Engineering Department ........ 82, 85, 86
Enterprise funds ............................. 8, 56
Enterprise Funds.............. 10, 43, 46, 51
Expenditures ..... 36, 53, 62, 63, 66, 111,
315, 316, 318, 320
Finance Department............... 36, 37, 79
Fire & Emergency Medical Services
Division ......................................... 107
Fixed Assets..................................... 316
fulltime................................................ 31 Fund Balance ..... 55, 314, 316, 317, 320
Fund Budgets............................. 35, 110
Gann Initiative .................................... 64 GASB ............................................... 317 General Fund .. 10, 41, 42, 47, 112, 113,
317, 318, 320
grant........................................... 41, 295 growth .... 5, 6, 7, 10, 20, 54, 56, 64, 317
Human Resource Division.................. 76
Impact Fee Programs Division ........... 89
Information Technology Division ........ 81
infrastructure ... 6, 7, 44, 54, 56, 58, 109,
133, 140, 296, 315, 316
Joint Powers Authority...................... 317
LAIF.................................................. 318 Law Enforcement Services Division . 106
Legal Service Division........................ 74
Library Services Division.................. 105
Lien .................................................. 318 Lighting & Landscaping District . 44, 130,
131, 132
Mountain House Community Services
District................. 5, 19, 293, 294, 316
municipalities...................................... 11 operations . 6, 11, 19, 34, 39, 43, 44, 52,
91, 126, 128, 129, 130, 131, 132, 297,
316, 317, 318
Operations & Maintenance Department
.................................................. 90, 91 organization chart......................... 16, 28
Parks Fund......................... 41, 118, 119
permits ................. 6, 11, 47, 51, 58, 319
personnel ......................... 19, 38, 74, 76
Property Tax..................... 317, 319, 320
Proposed Budget ....................... 35, 319
Proposition 111 .................................. 64
Proposition 13 .................................. 319
Proposition 4 .............................. 64, 162
Public Safety Fund ............... 11, 41, 117
Public Works Fund ..................... 41, 120
Recreation Department ...... 98, 100, 101
Regulatory & Compliance Division ..... 88
Reserve...................................... 16, 319
Restricted Funds ................................ 43
retirement................................... 31, 320
Revenues 9, 46, 47, 49, 50, 51, 52, 318,
320
Risk Management Division........... 67, 77
Roads Fund................................ 41, 116
San Joaquin County Board of
Supervisors..................................... 20
Service Divisions.............................. 102
special assessment funds .................. 10
Special Assessment Funds ... 41, 42, 46,
49, 50, 56
Stormwater Fund........................ 43, 129
Strategic Plan........................... 8, 14, 16
Summary of Transfers.................. 60, 61
Tax Base.......................................... 320
TIF................................................ 57, 89 Traffic Impact Fees............. 44, 109, 133
Traffic Impact Fund .......................... 114
Undesignated Fund Balance ............ 320
Unreserved Fund Balance................ 321
utility... 7, 9, 36, 43, 51, 58, 80, 294, 318
Wastewater Fund ............... 43, 127, 128
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
334
Water Fund .................. 42, 43, 125, 126
Wicklund............................................. 20 Workshop..................................... 35, 36
Item 8.2
POLICY AND ACTION ITEM 8.1
ATTACHMENT B
BEFORE THE CITY COUNCIL OF THE
CITY OF MOUNTAIN HOUSE
RESOLUTION
R-2025-XX
RESOLUTION ACCEPTING TRANSFER OF THE 2024-2025 APPROPRIATIONS LIMIT FROM MOUNTAIN
HOUSE COMMUNITY SERVICES DISTRICT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION AND ESTABLISHING PROPOSITION 4 FISCAL YEAR 2025-2026 APPROPRIATION LIMITS
FOR THE CITY OF MOUNTAIN HOUSE
WHEREAS, Article XIII B was added to the California Constitution by way of initiative approved by the voters at a State election held in November 1979, said initiative providing for appropriation limits for State and local governments and being known as “Proposition 4,” and WHEREAS, the Legislature in 1980 enacted Chapter 1205 which implemented the provisions of Article XIII B; and
WHEREAS, Section 7910 of the Government Code requires the governing body of each local jurisdiction, including counties and special districts, to establish appropriation limits required by Article XIII B of the California Constitution; and
WHEREAS, section 3(a) of Article XIII B of the California Constitution provides that when “financial responsibility of providing services is transferred” from one agency to another, such as through an incorporation or otherwise, “the appropriations limit of the transferee entity shall be increased by such reasonable amount” as the agencies “mutually agree”; and WHEREAS, in conjunction with the July 1, 2024 incorporation of the City of Mountain House, nearly all of the financial responsibility for providing services formerly provided by the Mountain House Community Services District were transferred to the City, and the City and the District have agreed on a reasonable amount of an increase in the City’s appropriations limit and a decrease in the District’s appropriations limit; and
WHEREAS, June 21, 2024, they announced that the documentation used, or to be used, in the determination of the appropriation limits was available to the public and said documentation has, in fact, been available since that date; and WHEREAS, at said time and place members of the public were given opportunity to comment on, or object to, the appropriation limits.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Mountain House, determines pursuant to Government Code Section 7910, as follows:
After reaching a mutual agreement pursuant to section 3(a) of article XIII B of the California Constitution, the Mountain House Community Services District decreased its 2024-2025 appropriations Item 8.2
POLICY AND ACTION ITEM 8.1
ATTACHMENT B
limit by $61,734,404 and the City of Mountain House accepted an increase in appropriations limit by the same amount; and
The Board elects to use the change in California per capita income as the cost of living adjustment and the annual population change for San Joaquin County as the population adjustment factor; and
BE IT FURTHER RESOLVED that the appropriation limit for the City of Mountain House for the fiscal year 2025/26 is $68,752,656.
Item 8.2
POLICY AND ACTION ITEM 8.1
ATTACHMENT B
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the City Council of the City of Mountain House, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
ANDY SU, Mayor
City of Mountain House,
County of San Joaquin,
State of California
ATTEST:
City Clerk
City of Mountain House
County of San Joaquin,
State of California
By: _____________________________
Item 8.2
POLICY AND ACTION ITEM 8.1
ATTACHMENT B - EXHIBIT 1
City of Mountain House 2025/26 Fee Schedule
Any work performed may require a deposit and reimbursement agreement.
Deposit amounts, if not specified, will be based on project complexity and scope.
Processing and permit fees are non-refundable.
Deposits shall be subject to Reimbursement Agreements.
Services will be charged on a time and material basis.
Item Description
1 Building permit processing $50
2 Prepare agreement Deposit $5,000 + actual cost + recording fees
Includes reimbursement agreement; acquisition agreement; annexation agreement, memorandum of understanding; deferred improvement agreement; irrevocable offer to dedicate 3 Purchase of City documents Actual Cost
Electronic version (on CD) of any City document $50
Design manual $65
Development standards and specifications $100
Storm drain master plan $90
Water master plan $65
Sanitary sewer master plan $45
Miscellaneous copy costs per page $0.25
Shipping and handling Actual cost + $5
4 Water meter fee (for City installed meters)
1-inch water meter Actual cost + labor
1 1/2-inch water meter Actual cost + labor
2-inch disc water meter Actual cost + labor
Disc meters greater than 2 inches Actual cost + labor
Turbo meters, compound meters, fire service meters and specialty meters Actual cost + labor Construction water usage permit per month Fees as indicated on permit Temporary water service from a fire hydrant $100
Temporary water service for testing new water lines $100 Realtor reconnect fee $200
5 Cut or damaged lock fee Actual cost + labor
Meter / corporation stop valve repairs / replacements Actual cost + labor 6 Utility servicing fees
Returned check fee $35
Utilities late payment fee (charges not paid by delinquent date specified on bill) 10% of unpaid balance Unpaid invoice late payment fee - additional months 1% per Month 10 day notice letter $25
Water service disconnection / reconnection $100
Utility bill payment (amortization) plan $40
At the time a payment plan is approved, 10% of unpaid balance must be paid in addition to the $40 fee Meter Damage/Tampering $1,000
Meter Lock (Damaged or Replaced) $100
Lien Processing Fee $100
Unpaid invoice late payment fee 10% of unpaid balance
Initial permit fees assume a one-time process and handling. Additional fees to be collected with issuance of permit based on estimated staff time or to be invoiced at time and material rates.
All work performed by or on behalf of the City on any development project will be pursuant to an agreement and paid by the Applicant at the full cost including overhead. The City Manager may set an interim fee as a deposit and reconcile to the final cost annually.
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT B
BEFORE THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE
RESOLUTION
R-2025-XX
RESOLUTION ESTABLISHING THE SCHEDULES OF FEES FOR SERVICES WHEREAS, the City Council of the City of Mountain House has adopted the Operating and Capital Improvement Budget for fiscal year 2025/26; and WHEREAS, the City is responsible for reviewing, approving and processing development applications for projects within the City; and
WHEREAS, it is the policy of the City to require any cost related to development activities to be the responsibility of the project applicant; and
WHEREAS, the City provides management and enforcement activities related to utility services, and;
WHEREAS, the City Council has reviewed and approved the attached fiscal year 2025/26 Fee Schedule (Exhibit 1);
NOW, THEREFORE, BE IT RESOLVED that the City Council approves the attached fiscal year 2025/26 Fee Schedule.
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT B
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the City Council of the City of Mountain House, to wit:
AYES:
NOES:
ABSENT:
_
ANDY SU, MAYOR
City of Mountain House,
County of San Joaquin,
State of California
ATTEST:
City Clerk
City of Mountain House,
County of San Joaquin,
State of California
By:
Item 8.2
CERTIFICATION OF ASSESSMENTS
Special Tax for Public Works
The City of Mountain House hereby certifies that the Special Taxes and Assessments listed below, to be placed on the 2025/26 Secured Property Tax bill by the City of Mountain House, meet the requirements of Articles XIIIC and XIIID of the California State Constitution.
The City of Mountain House agrees to defend, indemnify and hold harmless the County of San Joaquin, the Board of Supervisors, the Auditor-Controller, its officers and employees, for litigation over whether the requirements of Articles XIIIC and XIIID of the California State Constitution were met with respect to such Special Taxes.
If any judgment is entered against any indemnified party as a result of not meeting the requirements of Articles XIIIC and XIIID of the California State Constitution for such Special Taxes, the City of Mountain House agrees that San Joaquin County may offset the amount of any judgment paid by an indemnified party from any monies collected by San Joaquin County on the C i t y o f Mountain House’s behalf, including property taxes, Special Taxes, fees, charges or assessments.
2025-26 Special Taxes
Special Taxes:
ANDY SU, MAYOR
City of Mountain House
Consolidated Landscape Maintenance Assessment Districts No. 2008-1, 2016, and 2019 Special Tax for Roads and Transportation Services and Community Services Operational and Administrative Functions
Special Tax for Public Safety
Special Tax for Parks, Recreation, and Community Facilities 7 Community Facilities District 2024
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT D
BEFORE THE CITY COUNCIL OF THE
CITY OF MOUNTAIN HOUSE
RESOLUTION
R-2025-XX
RESOLUTION APPROVING
UPDATED PERSONNEL POLICIES AND PROCEDURES
WHEREAS, the City Council of the City of Mountain House develops and maintains policies in order to ensure that functions are performed efficiently and procedures are in place to address issues as they arise; and
WHEREAS, the City Manager has compiled certain administrative policies and procedures related to personnel practices in the Personnel Policies and Procedures; and WHEREAS, the Council now desires to adopt the updated Personnel Policies and Procedures, attached to this Resolution as Exhibit 1.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council adopts the updated Personnel Policies and Procedures, attached to this Resolution as Exhibit 1.
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the City Council of the City of Mountain House, to wit:
AYES:
NOES:
ABSENT:
ANDY SU, MAYOR
City of Mountain House,
County of San Joaquin,
State of California
ATTEST:
CITY CLERK
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT D
City of Mountain House,
County of San Joaquin
State of California
By:
Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
CITY OF MOUNTAIN HOUSE
PERSONNEL POLICIES AND PROCEDURES
I. AUTHORITY:
a. Resolution No. 277 dated 5/25/04
b. Resolution MMIX-20 dated 12/09/09
c. Resolution MMXIII-25 dated 10/09/13
d. Resolution MMXXI-05 dated 02/18/2021
e. Resolution MMXXIII-26 dated 06/14/2023
f. Resolution MMXXIV-26 dated 06/12/2024
ga.Resolution ?MMXXIV-26 dated ?7/1/2024
b. Resolution MMXXV-XX dated 6/11/2025
II. PURPOSE:
The purpose of the Personnel Policies and Procedures document is to provide direction on all personnel practices in the City of Mountain House (“City”). It will ensure consistent application of all personnel rules and regulations for all City employees.
Section 1: Management Rights
It is the exclusive right of the City, except as otherwise provided in these policies and procedures, to make all decisions of a managerial or administrative character, including, but not limited to, the following:
a. To manage and direct its business and personnel.
b. To manage, control, and determine the mission, its departments, building facilities and operations.
c. To create, change, combine or abolish jobs, policies, departments and facilities in whole or in part.
d. To subcontract or discontinue work for economic or operational reasons. e. To specify or assign work requirements and require overtime. f. To schedule working hours and shifts.
g. To adopt rules of conduct and penalties for violation thereof. h. To take whatever action necessary to prepare for, and to operate in, an emergency.
Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
i. To hire, promote, transfer, assign, classify positions, retain employees, and to suspend, demote, discharge or take disciplinary action against employees. j. To layoff, demote or furlough employees from duties because of lack of funds, in the interest of the economy, or other legitimate reasons. The City Manager may determine the order of layoff and those employees who will be demoted based on the operational needs of the City.
k. To determine the policies, standards, procedures, methods, means and personnel by which City operations are to be conducted.
Nothing in these policies and procedures shall be construed to interfere with the City’s right to manage its operations in the most economical and efficient manner consistent with the best interests of all the citizens of the City.
Section 2: Classes of Employment
A. Regular Full-Time Employee: An employee who is appointed to a regular, allocated position, regularly scheduled to work eighty (80) hours per bi-weekly pay period.
B. Regular Part-Time Employee: An employee who is appointed to a regular, allocated position, regularly scheduled to work at least thirty (30) hours per bi-weekly pay period, but not more than 1,664 hours per calendar year and whose employment is anticipated to exceed seven (7) months in duration.
C. Part-time Employee: An employee who is appointed to a position to work less than thirty (30) hours per bi-weekly pay period and whose employment is anticipated to exceed seven (7) months in duration. Such employees do not receive any leave, health insurance, or other benefits, except those required by law.
D. Temporary Employee: An employee who is appointed to a position which is either seasonal in nature (not to exceed seven months in a calendar year) and recurs year to year, or who covers peak workloads, regular employee absences, or a vacant position for a period not to exceed nine months. Such employees do not receive any leave, health insurance, or other benefits except those required by law.
Section 3: Immigration Law Compliance
In compliance with the Immigration Reform and Control Act of 1986 and amendments thereto, as a condition of employment, each new employee must complete the Employment Eligibility Verification Form I-9 and present documentation establishing identity and eligibility to work in the United States. Photocopies will be taken of the documentation provided.
Section 4: Working Hours / Pay Information
Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
A. Work Hours: The City shall establish regular work hours for each employee. The City Manager may change working hours of individual employees to accommodate the functional needs of the City. Alternate work schedules may be authorized by the City Manager provided the alternate schedule does not disrupt or interfere with business operations and service to clients. Employees on alternate work schedules may be required to alter such schedule to cover for absences of other staff members.
When possible, one-week advance notice shall be provided for change in working hours.
B. Workweek: The workweek is Monday through Sunday through Saturday, except that the City Manager may specify an alternate work week period for any employee.
The base compensation for employees shall be deemed to be compensation per biweekly pay period and is predicated upon a forty (40) hour work week for full-time employees. A bi-weekly pay period shall consist of eighty (80) working hours for fulltime employees and the base compensation provided shall be payment in full for all services rendered to the City except as otherwise provided. If an alternate work schedule is approved pursuant to Section 4.A, the work week and pay period may not coincide.
C. Workplace Assignment: The place of work and department or division to which an employee is assigned shall be determined by the City Manager or designee, who may also reassign the employee at any time to a different workplace, department or division. The City Manager may also designate employees whose response time to the workplace in emergency situations is critical and may specify for these employees the maximum response time between their place of residence and the workplace.
This information must be supplied to the employee prior to their acceptance of a job offer with the City.
D. Work Site Closure: If the City Manager or designee closes a work site because it is unsafe, or because work operations cannot be carried out, or by Governor’s Order or Proclamation, regular full-time and regular part-time employees who are scheduled to work and who are not reassigned to alternate work sites and are subsequently sent home, shall receive administrative pay for the remainder of the scheduled work day.
Other regularly scheduled employees who are sent home may be paid, at the discretion of the City Manager, for the balance of their scheduled workday.
Employees who are sent home and who are receiving administrative pay shall remain available to return to the work site for the duration of their scheduled shift.
E. Paydays: The City has a bi-weekly pay period.
F. Advances: Advances in pay are not permitted.
G. Break and Lunch Time: It is the policy of the City, when the City operations permit, to allow employees two (2) rest periods not exceeding fifteen (15) minutes each, Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
during a regular eight (8) hour shift. When the City operations permit, such rest periods are to be taken as nearly as possible in the middle of each four (4) hour segment of each employee’s workday. Time allowed for rest periods may not be accumulated from one half of the workday to another, nor may rest periods be used to alter an employee’s normal work hours and meal periods. Lunch breaks are unpaid and may be thirty (30) or sixty (60) minutes depending on the employee's work schedule. While every effort will be made to schedule breaks and lunch breaks during the middle of each work period, employees may be required to stagger such breaks to ensure adequate levels of customer service.
H. Wages: Employees will be paid bi-weekly based on the hours recorded on timecards or in any other manner as required by the City Manager.
I. Overtime: There are certain periods where overtime may be required. If, in the judgment of the City Manager or designee, work beyond an employee’s normal workday or work week is required, the City Manager or designee may require overtime work. All employees are expected to work overtime when deemed necessary, but may not work overtime without the specific authorization of the City Manager or designee.
Hours of work, in these Personnel Policies and Procedures and for purposes of determining overtime eligibility, means only those hours that an employee is at their assigned place of work, being compensated for these hours by the City and performing their assigned duties at the direction of the City Manager or designee.
Hours of work for purposes of determining overtime eligibility does not include any compensated or uncompensated leave time, including holidays.
All Fair Labor Standards Act (FLSA) non-exempt employees shall be eligible for overtime compensation when:
a) A regular full-time employee works in excess of the number of hours in his or her normal work day, provided that the employee has worked eight hours prior to the commencement of overtime; and any part-time employee shall not be eligible for overtime compensation until such employee works at least twelve (12) hours in a day;
b) An employee works in excess of eighty (80) hours in a biweekly pay period; c) An employee whose normal work week is five (5) scheduled eight (8) hour days in a calendar week of seven (7) days works more than forty (40) hours in five (5) days in a calendar week;
d) An employee who, because of shift changes, works two (2) or more shifts in any twenty-four (24) hour period and is off duty less than eight (8) hours between shifts. In such case, the employee shall be compensated for any additional shift(s) in the same manner as for other overtime notwithstanding (b) and (c) above; + Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
d) FLSA non-exempt employees whose normal work week varies from the normal five (5) days in a calendar week of seven (7) days shall not be eligible for overtime compensation except as described in (a),= and (b) and (d) above.
Employees who are employed in classifications eligible for exemption from the overtime provisions of the Fair Labor Standards Act (FLSA) and designated by the City Council to be salaried are exempt from the overtime provisions of the FLSA.
Since these employees may be required periodically or routinely to work long and irregular hours to fulfill the responsibilities of their positions and are not eligible for overtime compensation or compensatory time off, the City will provide paid administrative leave as follows in recognition of the long and irregular hours that they may be required to work to accomplish program objectives:
a) Each fiscal year, the City Manager shall grant 80 hours of administrative leave to employees in designated job classifications who are employed by the City on July 1 of that fiscal year. For eligible salaried employees whose first day of employment is after July 1, the City Manager shall grant a pro-rata amount of the 80 hours.
b) The benefits provided by this program are not related to hours worked nor are they subject to accrual, and under normal circumstances, may not be carried over beyond the end of the fiscal year, except that the City Manager may approve such carryover on a case by case basis.
In general, eEmployees shall be compensated for overtime according to the following guidelines. Employees eligible for overtime shall be compensated for overtime by either cash payment at the rate of one and one-half (1 ½) times the employee’s hourly salary (including any applicable supplements) or by the accrual of compensatory time at the rate of one and one-half (1 ½) times the overtime hours worked. The maximum compensatory time accumulation shall be eighty (80) hours and any additional overtime worked shall be compensated by cash payment at the rate of one and onehalf (1 ½) times the employee’s hourly salary (including any applicable supplements).
Compensatory time, in lieu of cash payment, will be given based upon the determination of the City Manager or designee that the budgetary situation or work requirements of the City allow latitude to confer either compensatory time off or overtime. Compensatory time shall be used at times mutually agreeable to the City and employee. Employees working a split shift will be compensated according to current state and federal law.
J. Absenteeism and Tardiness: Regular attendance is necessary to ensure adequate service to residents and to avoid overburdening coworkers. Employees must notify the City Manager or immediate supervisor promptly, but in no case later than thirty Item 8.2
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(30) minutes after the start of the work period, if he or she is going to be absent or late for work. Please consider the extra burden your absenteeism or tardiness puts on your fellow employees and the public.
K. Termination: Unrepresented employees are at-will employees and the City reserves the right to terminate any unrepresented employee's employment with or without cause at any time.
L. Resignation: Two (2) weeks’ notice is customary and should be given unless circumstances make such notice impossible. Failure to provide sufficient notice may be considered grounds for ineligibility for rehire at a later date. The City Manager may approve resignations with less than two (2) weeks’ notice.
Section 5. Selection Process
The City shall observe all equal employment opportunity requirements in the recruitment and selection of qualified staff. All selection process procedures, including but not limited to recruitment, testing, establishment of eligibility lists, investigation of applicant background, and selection of employees shall be determined by the City Manager who is the appointing authority for all City positions. Generally, regular full-time positions will be filled following an open competitive recruitment, which may be restricted by the City Manager to current City employees for promotional purposes. Provisional appointment of a current employee to the vacant position or appointment of a temporary employee to the vacant position pending regular recruitment may be made to ensure continuity of operations. Staffing agencies or other means of filling vacancies may also be utilized as long as the intent or effect of such staffing is not intended to unfairly exclude qualified individuals from applying.
The City Manager may approve the following recruitment incentives:
Reimbursement of moving expenses: Actual documented cost of moving to a maximum of $5,000, adjusted each August 1, by the California CPI-All Urban Consumers change for the 12 months ending the preceding June. Costs may include moving expenses, interim housing, and travel expenses related to the move for the candidate and his or her family.
Vacation Accrual Rate: If the candidate is leaving other public employment to accept the City position, a vacation accrual rate consistent with the candidate’s total years of public service, calculated to the nearest bi-weekly pay period as set forth in Section 9, may be authorized at the discretion of the City Manager either at the time of employment with the City or following employment for particularly meritorious performance as documented in an employee’s performance report.
Sick Leave: If the candidate is leaving other public employment to accept the position, credit of up to the candidate’s actual non-reimbursable sick leave hours from the Item 8.2
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candidate’s last agency may be authorized at the discretion of the City Manager at the time of employment with the City.
Section 6. At-Will Employment
All City employees who are unrepresented are at-will employees.
Section 7. Salary Administration
A. Establishment of Job Classifications and Salary Schedules: The City Council shall establish classes (also may be referred to as job codes) for unrepresented positions in the City and shall establish salary ranges (also may be referred to as salary grades) for such classes. Salary ranges for unrepresented positions shall be reviewed as determined by the City Council and may be adjusted based on employee performance, market analysis or cost of living. Nothing shall require the City Council to adopt a salary increase based solely on cost of living or market analysis.
With respect to represented employees, the procedures regarding the establishment of job classifications and salary schedules, and notice thereof (if applicable), are outlined in the memorandum of understanding between the City and the union.
B. Salary Steps: The City shall adopt a five-step pay range for each class with approximately five percent (5%) between steps. Initial appointment shall generally be at the first step of the range; however, the City Council may authorize advanced step hiring for the City Manager; and when recruiting difficulties exist, the City Manager may authorize that an allocated position be filled at a step above the minimum of the range commensurate with the qualifications of the prospective appointee which are above the minimum requirements set forth in the class specifications. Annually, on or after an employee’s anniversary date of employment with the City, a regular full-time employee may be granted a merit step increase if performance is at least satisfactory and advancement is recommended by the supervisor. The City Manager shall have the authority at any time to increase or decrease the salary of any employee in a position designated as a department head position. In addition, the City Manager shall have the authority to increase the salary of any employee whose performance is notably above minimum requirements set forth in the class specifications and is recommended by the supervisor after the employee has worked 800 hours at their present step. Step increases are not automatic and may not result in a base pay rate exceeding the fifth step of the employee’s classification. If an employee promotes to a higher class within the City, the effective date of the promotion shall become the employee's new anniversary date.
Any regular part-time or part-time employee may be granted a merit step increase if performance is at least satisfactory and advancement is recommended by the supervisor after the employee has worked 1,840 hours at their present step. Step Item 8.2
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increases are not automatic and may not result in a base pay rate exceeding the fifth step of the employee’s classification. If an employee promotes to a higher class within the City, the effective date of the promotion shall become the employee's new anniversary date.
Whenever an allocated position is filled above the entry step, the City Manager may direct that all incumbents of allocated positions who have qualifications above the minimum set forth in the class specification in the same or related class and who are earning less than the step in the salary range at which the new employee enters may be raised to the step in the range that will retain the appropriate interrelationship between the classes/positions. The merit advancement date of employees in the same or related classes may be changed in order to retain equitable relationships.
Any step increase withheld because of administrative oversight shall be made retroactive to the normal effective date of the step increase. If the step increase is made retroactive to the normal effective date of the step increase, the employee shall retain the employee’s current anniversary date as of the normal effective date of the step increase.
C. Salary Upon Promotion: Upon promotion, an employee appointed to a position with a higher salary range shall have his or her salary adjusted to the first step of the new range or to the step in the new range which is at least 5% higher than the salary the employee was receiving prior to the promotion, whichever is greater, provided that the new salary is within the new range. Any pay supplements received by the employee and which are a percentage of base salary (except above class pay and special assignment pay) shall not be added to the pre-promotion base salary prior to determining the appropriate step in the new range. After promotion, pay supplements received by the employee (except above class pay and special assignment pay) and which are a percentage of base salary may be paid as appropriate for the position and will be based on the post-promotion base pay.
D. “Y” Rates: Whenever an employee accepts a demotion for reasons other than disciplinary action to a class or position having a lower salary range, the City Manager may direct that the capital letter “Y” be set opposite the position to which the employee was demoted in the department budget and all payroll and other personnel records..
Whenever the “Y” is set opposite a position, the incumbent shall continue to receive his or her previously authorized salary until termination of employment in the position, or until a higher rate of pay in the incumbent’s current position may be authorized, whichever comes first.
E. Salary Upon Demotion: If an employee demotes through no fault of the employee, other than a voluntary demotion, the employee shall be “Y-rated” at the employee’s current salary and remain at that salary until the salary falls within the range for the employee’s demoted class. If an employee voluntarily demotes, the employee shall Item 8.2
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be placed at the highest step of the range that represents a reduction in pay. If an employee is demoted for failure to complete expected tasks following a promotion, the employee shall return to the step of the range the employee held prior to promotion, but may be granted any merit step increases that would have occurred had the employee not accepted a promotion. If an employee is demoted for cause as a result of a disciplinary action, the employee shall be placed at the step of the range stated in the order of discipline.
F. Special Assignment Supplement: The City Manager may authorize a five percent (5%) salary increase to any employee designated by the City Manager to be on special assignment. Special assignments have a beginning and ending date.
G. Receipt of Supplemental Pay: No employee shall receive supplemental pay (e.g., special assignment pay, standby pay, working out of class pay, etc.) when on vacation, sick leave, sick leave in conjunction with the receipt of State Disability Insurance or Worker’s Compensation temporary disability payments, compensatory time off, holiday, or paid military leave unless such employee shall have been performing duties for a period of not less than four (4) full bi-weekly pay periods or such supplemental duties are scheduled, upon assignment, to last not less than four (4) full bi-weekly pay periods.
H. Standby Pay: The City Manager or designee may assign employees to be in a standby status and must do so in writing. An employee who is on standby status must be at a location where the employee can be reached at all times and upon being called, shall return to work immediately. An employee who is recalled to work shall be deemed to be off standby status. Exempt employees shall receive no additional compensation for being on stand-by status.
I. Work Above Class: The City Manager or designee may temporarily assign any employee to perform duties normally assigned to a classification with a higher salary without changing the salary of such employee provided the temporary assignment concludes at the end of the fiscal year and generally does not exceed twenty (20) work days in a one hundred and eighty (180) calendar day period. If an employee is assigned to a classification with a higher salary range for a period of time exceeding this, the employee shall be compensated, beginning with the 21st work day of such above-class assignment, at an amount equal to what the employee would receive if promoted to the higher class or up to ten percent (10%) if no class exists, at the discretion of the City Manager. Employees who are being paid for working in a higher classification are not eligible for merit increases in the higher classification. Whenever an employee working in a higher classification receives a merit increase in the employee’s regular classification or the employee’s regular salary is otherwise increased or decreased, the employee’s pay for working above class shall be adjusted so that the employee continues to be compensated at the rate specified above.
J. License/Certificate Fee: The City agrees to pay the cost of renewing state required licenses or certifications that are necessary for the employee, as determined by the Item 8.2
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City Manager, to fulfill the requirements of the job classification or the tasks assigned to the employee. The City Manager may also authorize the payment of professional organization dues or membership fees if the City Manager considers it in the best interest of employee development that may benefit the City.
K. Paycheck Exceptions: A paycheck exception is defined as the incorrect reporting of payroll or failure to process the following payroll actions, causing an employee to receive less than the pay to which he or she is entitled for that pay period with regard to step increase, supplemental pay, and overtime. Paycheck exceptions shall normally be paid no later than the following paycheck.
All payroll errors resulting in either gross or net salary overpayment must be repaid to the City. Employees shall be allowed, at employee’s option, to use accrued annual and holiday leave and compensatory time to repay the City in cases of payroll error resulting in gross salary overpayment as determined by the City Manager. Such errors may result from use of an incorrect salary rate, reporting the wrong number of hours worked, or misclassification of hours worked.
L. Underfilling Positions Authorized in the Budget: Whenever a position is authorized in the budget as adopted by the City Council, the City Manager may fill that position with either the job classification that appears in the budget or with some other appropriate job classification, provided the salary range is not greater than that of the job classification that appears in the budget.
Section 8: Personnel Records and Evaluations
A. Personnel Records: With prior review of Human Resources, theThe City maintains all necessary personnel information: and will provide the Auditor-Controller of San Joaquin County additional payroll information as deemed necessary. The employee must notify Human Resources of any changes in the following:
Home address
Home telephone number
Marital status
Beneficiary of Insurance insurance
Number of dependents
Emergency contact
Current employees of the City shall have the right to review and obtain copies of their personnel files. The City reserves the right to withhold from employee review reports of an employee’s pre-employment physical examination, records of an employee relating to investigation of possible criminal offense or other legally privileged records.
Employees shall be given an opportunity to read and initial any report or evaluation to be added to their personnel files, but an employee shall not be required to sign any Item 8.2
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such report. An employee’s signature on a report shall be understood to be acknowledgment of receipt and shall not be construed as agreement or disagreement with its content. If the employee refuses to sign any report or evaluation, a notation to that effect may be entered on the document. An employee shall have the right to submit written comments regarding any document in his or her personnel file and to have such comments included in his or her personnel file along with the document.
An unsatisfactory evaluation shall be prepared in advance of the scheduled due date and any step increase date.
Former employees do not have access to their personnel records. Employees are encouraged to keep copies of personnel documents at the time of filing.
B. Evaluations: Employee performance evaluations will be prepared by the employee’s supervisor prior to the anniversary date of employment, prior to the granting of any step increase, and such other times as may be determined by the supervisor, the City Manager or designee. Evaluation forms will be as designated by the City Manager. It is the employee’s supervisor who has the responsibility and authority to prepare the evaluation report. At the request of the employee, the supervisor will meet with the employee to discuss the evaluation prior to the supervisor completing the evaluation with his or her final signature.
Except in cases of termination or leave of absence, evaluation with a rating of “unsatisfactory” shall receive a follow-up evaluation no more than ninety (90) days from the date of the final review of the initial unsatisfactory evaluation.
An employee shall have the right to submit written comments regarding any evaluation and to have such comments included in his or her personnel file along with the evaluation.
Section 9: Leave
A. General Policy: The City provides employees with paid and unpaid time off and leave options to cover illness, vacation, family emergencies, and other occurrences requiring time away from the job. City policy is designed to encourage planned leave which can be more productively managed than unplanned leave. Unless otherwise provided by law, all leave is granted at the discretion of the City Manager.
B. Vacation: Full-time employees (2,080 hours) accrue vacation at the rate shown below. Regular part-time employees accrue vacation for each straight-time hour on payroll on a pro-rated basis, based upon the following chart. Vacation time shall accrue as follows:
FOR EMPLOYEES HIRED ON OR AFTER JULY 1, 2020
Pay Period Bi-weekly Annual
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Length of
Service
Accrual Per
Hour Worked
Accrual (FullTime
Employees)
Vacation (FullTime
Employees)
Maximum
Hours Accrual
Maximum
Accrual in
Weeks
Less than
three (3) years
(less than 78) .03846 3.0769 80 160 4 Weeks
Three (3)
years, Less
than 10 Years
(Less than
260) .0577 4.616 120 240 6 Weeks
10 Years, Less
than 20 (Less
than 520
Hours) .0770 6.160 160 320 8 Weeks
Over 20 Years
(520 Hours or
more) .0885 7.080 184 368 9 Weeks
FOR EMPLOYEES HIRED BEFORE JULY 1, 2020
Length of Service
Pay Period
Accrual Per
Hour
Worked
Bi-weekly
Accrual (FullTime
Employees)
Annual Vacation
(Full-Time
Employees)
Maximum
Hours
Accrual
Maximum
Accrual in
Weeks
Less than 10 Years
(Less than 260) .0577 4.616 120 240 6 Weeks
10 Years, Less
than 20 (Less than
520 Hours) .0770 6.160 160 320 8 Weeks
Over 20 Years (520
Hours or more) .0885 7.080 184 368 9 Weeks
Whenever a regular employee’s accumulation of vacation reaches the maximum as provided herein, any further vacation accrual shall be credited to such employee’s sick leave accumulation until such time as the employee’s vacation accumulation falls below the maximum allowed, unless the City Manager grants an exception to accumulate not more than one additional year of vacation for a clearly specified purpose. All vacation time must be approved by the Department Manager. Each Department must have adequate coverage at all times.
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Leave without pay or disciplinary suspension shall delay the advancement to the next higher accrual rate until the employee has been on payroll the number of straighttime hours which equal the number of full, continuous, bi-weekly pay periods specified above.
Subject to the approval of the City Manager, each regular employee shall have the option of receiving cash payment in-lieu of using vacation time from the employee’s accumulated vacation and will have the employee’s accumulated vacation balance reduced by said hours. Employees must have at least eighty (80) hours of vacation time remaining after vacation is reduced.
An employee may choose to use accrued vacation or compensatory time, if any, if the employee is absent beyond the limits of accumulated sick leave for reasons of illness, injury or quarantine or death in the immediate family as defined in this policy.
C. Holidays: Full-time and regular part-time employees become eligible for paid holidays upon date of hire. and must be at work for a minimum of one hour the employee’s business day immediately preceding the holiday or the business day immediately following the holiday. When the holiday falls either within a regularly scheduled vacation or immediately preceding or following a day of other paid leave approved by the employee’s supervisor, the work requirement before or after the holiday need not be met to be eligible for the holiday allowance. Holiday pay for regular part-time employees is based on the average hours worked in the preceding five (5) pay periods.
Employees who work a regular holiday will be paid one-and-one-half (1 ½) times the regular hourly rate for all hours worked on the holiday, in addition to receiving eight (8) hours of pay for the holiday. The following are regular holidays:
a) January 1, New Year's Day
b) Third Monday in January, Martin Luther King, Jr. Day c) Third Monday in February, Washington's Birthday
d) Last Monday in May, Memorial Day
e) July 4, Independence Day
f) First Monday in September, Labor Day
g) November 11, Veterans Day
h) Any November day designated as Thanksgiving Day
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i) Friday following the day designated as Thanksgiving Day j) December 25, Christmas Day
k) All other holidays as may be proclaimed by the Governor of the State of California or the President of the United States and adopted by the City Council
When one of the above holidays falls on a Saturday, the preceding Friday shall be observed as a holiday but will be observed as a floating holiday if the City offices are not closed. When one of the above holidays falls on a Sunday, the following Monday shall be observed as a holiday but will be observed as a floating holiday if the City offices are not closed.
In addition to floating holidays as defined above, the following days are established as floating holidays for regular full-time and regular part-time employees:
February 12, Lincoln's Birthday
September 9, Admission Day
The second Monday in October, Columbus Day
Employee’s Birthday
Regular full-time employees and those regular part-time employees scheduled to work on the floating holiday and eligible to receive benefits may individually, with the approval of the City Manager or designee, take such holiday:
• on On the date of the holiday.
• on On the day preceding the holiday in the case of holidays which fall on a Saturday.
• on On the day following the holiday in the case of holidays which fall on a Sunday
• on On some deferred date not later than twelve months following the date of the floating holiday. Such deferred date must be approved and taken at the discretion of the City Manager or designee.
If City offices and departments shall remain open for business on any day deemed to be a floating holiday, employees who elect to defer taking the holiday time shall receive regular compensation for working on the floating holiday. Any regular full-time employee whose regularly scheduled day off falls on a floating holiday may defer taking the holiday time, as approved. Regular part-time employees who are eligible for benefits and whose regularly scheduled day off falls on a floating holiday may defer taking the holiday time on a prorated basis.
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Employees must use all accumulated Floating Holiday’s and Regular Holiday’s within one year of the date earned. All Administrative Leave must be used within the Fiscal Year it was granted unless the City Manager grants an exception.
D. Sick Leave: Regular employees eligible for benefits shall accrue .0462 hours of sick leave for each straight time hour on payroll not to exceed eighty (80) straight-time hours per pay period (annual accrual rate, approximately 96 hours). Any employee of the City who was on the San Joaquin County payroll as of August 27, 2001 and eligible for sick leave conversion as defined and described in the San Joaquin County Memorandum of Understanding and Resolutions in effect on June 14, 2004 for the employee’s classification shall be entitled to sick leave conversion as a City employee under the same terms and conditions as set forth in the appropriate Memorandum of Understanding and Resolutions referenced immediately above.
D.
Sick leave may be authorized for any of the following reasons:
a) Illness, injury or quarantine of the employee;
b) Medical, dental or optical care of the employee;
c) Illness, injury or quarantine of a member of the employee’s immediate family which requires the employee to tend, care for, or otherwise provide for the care of such person. Immediate family means the spouse, registered domestic partner, child, parent, sibling, grandparent, grandchild, great grandparent, great grandchild of the employee; or the child, parent, sibling, grandparent, grandchild, great grandparent or great grandchild of the employee’s spouse or registered domestic partner;
d) Illness, injury or quarantine during an authorized vacation or on a floating holiday as evidenced by satisfactory proof attesting to the nature and length of the disability. Sick leave for non-emergency medical, dental, or optical care during an authorized vacation or on a floating holiday period is not permitted. e) An amount sufficient which, when added to an employee’s disability indemnity under Worker’s Compensation, will result in a payment to the employee not more than the employee’s regular salary.
f) An amount sufficient which, when added to an employee’s disability indemnity under State Disability Insurance (in accordance with State Disability Insurance rules), will result in a payment to the employee not more than the employee’s regular salary.
g) Care for a new or adopted child (using up to a maximum of 40 hours sick leave) unless the use of additional time is approved by the City Manager.
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h) For an employee who is a victim1 of any crime or abuse.
No employee shall be entitled to sick leave because of:
a) Disability arising from any illness or injury purposely self-inflicted or caused by the employee’s misconduct;
b) Illness, injury, quarantine or disability while on leave without pay; An employee scheduled to work on a regular holiday who is absent on that holiday due to illness, injury, or quarantine shall not be permitted to use sick leave but shall be deemed to have used the regular holiday.
Employees absent from work because of illness, injury, or quarantine, or for nonemergency medical, dental or optical care shall be paid only upon furnishing the City Manager or designee with satisfactory proof as may be required by the City Manager or designee that the absence was due to such cause. The requirement, need and form for such verification shall be made known to the employee in advance of any absence, but not later than the time the employee calls in sick. Employees may be required to provide a medical note after two (2) consecutive days of absence, or after the third (3) day per quarter.
A former employee, re-employed by the City, shall not be entitled to accumulated sick leave benefits unless his or her return to the City service is the result of reinstatement within one year of termination of employment OR is the result of re-employment after a layoff due to lack of work, lack of funds, or in the interest of the economy.
E. Bereavement Leave: Bereavement leave provides time to attend to funeral arrangements and other responsibilities associated with the death of an immediate family member. Regular full-time and regular part-time employees may be allowed to be absent with pay for up to three (3) regularly scheduled workdays, or 24 hours, in the event of the death of an immediate family member. Immediate family members include parent, spouse, registered domestic partner, child, sibling, grandparent, great grandparent, grandchild or great grandchild of the employee, or the employee’s spouse, or the employee’s registered domestic partner. Bereavement leave is not granted automatically, and the City Manager or designee will balance operational needs with such factors as employee responsibility for arrangements, date and place of the service prior to approving a request. If an employee requires more than three (3) days away from the job, use of administrative leave, vacation, time holiday, or 1 “Victim” is defined in Labor Code section 230.
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floating holiday accurals may be requested . Such a request for additional time away from the job is not granted automatically.
F.E. Jury Duty: Employees must inform the supervisor when the initial notice or questionnaire is received for jury duty. Since time off with pay will be granted for such duty, the employee must remit to the City the jury duty pay. If the employee chooses to keep the jury duty pay, personal leave must be used.
Because employees may be called for jury duty late in the morning or released early in the day, supervisors may require employees to work the remaining fraction of the workday. If employees do not comply with this obligation, they will not be paid their City salary for time not at work.
G.F. Witnesses: Employees subpoenaed as a witness in a civil or criminal trial or hearing must provide their supervisor with a copy of the court order requiring appearance prior to the date of the appearance. They must use personal leave for this time off unless the trial or hearing involves the City as determined by the City Manager and under these circumstances, the employee will be given paid time off for this appearance. Any witness fees received by the employee while receiving paid time off for such court appearance shall be paid to the City together with any mileage allowed if the employee uses City-provided transportation.
Other Court Related Appearances: Employees called as an expert witnesses in a trial in which the City has no interest must use personal leave for the time off.
If an employee is personally involved in a court case as a party such as the plaintiff or defendant, he or she must take personal leave to appear in court or to transact business associated with the case.
H.G. Military Leave: Military leave will be granted consistent with the California Military and Veterans Code, the California Family Rights Act (CFRA), and the Family and Medical Leave Act (FMLA). The City will grant the difference between the military salary and the employee’s City salary for a period not to exceed 26 pay periods for each military leave and the City will continue medical, dental, vision and life insurance benefits on the same terms as if the employee were not on military leave. The time on military leave will count as time worked toward the calculation of the employee’s next step increase and for determining the accrual rate of vacation, except that the employee will not neither earn nor accrue sick leave or vacation while on military leave.
I.H. General Leaves of Absence: A leave of absence without pay provides a means for employees to take prolonged time off without terminating employment. Such leaves are granted only when there is an expectation that the employee will return to work. Employees may request a leave of absence without pay for employee or family illness, maternity or paternity leave, adoption, education, or training which will benefit Item 8.2
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the City, military service, or urgent or substantial personal reasons. The City Manager will determine whether the leave can be granted based on urgency and workload requirements. No employee who has been granted a leave of absence without pay shall accrue any vacation, sick leave or holiday during the time of such leave. For an employee who has been granted an unpaid leave of absence, the City will only continue paying health, dental, vision and life insurance premiums through the end of the month in which such leave commenced. During the time of a leave of absence, the employee must pay their premiums. City payment of health, dental, vision and life insurance premiums will resume beginning with the month in which the employee returns to paid status or as otherwise provided by any City insurance contractual requirements.
J.I. Pregnancy Disability Leave: Leave without pay shall be granted to temporary, part-time and regular employees in accordance with state and federal laws. Leave for medical reasons may be granted with a physician's statement, and employees may use sick leave or other accrued leave. Current law provides up to four (4) months leave for pregnancy disability. Employees may also be eligible for an additional twelve (12) weeks of leave under the California Family Rights Act (CFRA). The City will comply with any state or federal law and reserves any rights of restrictions.
K.J. Compliance with Federal and State Leave Laws: The City will comply with the federal Family and Medical Leave Act (FMLA), California Paid Family Leave and the California Family Rights Act (CFRA), maintaining all rights of restrictions which are permitted by FMLA and CFRA.
L.K. School Activities: The City Shall comply with any federal or state law requiring an employer to grant time off for the following: to find, enroll, or reenroll the employee’s child in a school or with a licensed child care provider, if the employee, prior to taking the time off, gives reasonable notice to his or her supervisor; to participate in the activities of the child’s school or licensed child care provider, or to address a child care provider or school emergency. Current state law provides that parents may take up to 40 hours per year, but not more than eight (8) hours per month, to take time off for the reasons provided above. An employee may take unpaid leave or may use accrued vacation, compensatory leave, personal leave, or a floating holiday to the extent that this is consistent with the Fair Labor Standards Act.
M.L. Unpaid Medical Leave: Employees physically unable to work and under a doctor's care who have exhausted all sick leave and other accrued leave such as vacation or compensatory time may be granted unpaid medical leave until the attending physician releases the employee to return to work. Supervisors may request a doctor's verification of the employee's physical condition. Leaves of absence for disability related to pregnancy are governed by the California Fair Employment and Housing Act, Government Code section 12945 (Pregnancy Disability Leave or PDL). Leaves may also be governed by the California Family Rights Act (CFRA) or Federal Family Item 8.2
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and Medical Leave Act (FMLA). Additional unpaid medical leave may be granted by the City Manager beyond that required under PDL, CFRA and FMLA at the discretion of the City Manager.
N.M. Unpaid Leave, Non-Medical: This covers leave for non-medical, urgent, or substantial personal reasons requiring time off from the job. All personal leave and all accrued leave balances, except sick leave, must be used before an unpaid leave of absence will be granted.
O.N. Leave of Absence Without Pay/Benefits: While an employee is on an unpaid leave of absence, except as may otherwise be provided in this policy, no vacation or sick leave will be earned, no seniority will be accrued, and no holidays will be paid.
Employees using a combination of leave credits and disability insurance payments will accrue leave credits and holidays on a prorated basis. Granting of unpaid leave status allows the employee to return to his or her former position or a comparable position to which he or she otherwise would have been allowed had he or she not been on leave.
Employees may continue participating in health, dental, and life insurance plans by paying the appropriate full premium during the period of time in which such premiums are not paid by the City.
P.O. Administrative Leave: Administrative Leave is paid time off granted by the City Manager for circumstances not defined in other paid leave categories that the Manager considers justifiably payable.
Q.P. Abuse of Leave:
1. Expiration of Leave: Failure to return to work upon the expiration of leave constitutes an automatic resignation.
2. Inappropriate Use of Leave: If an employee uses leave for purposes other than for which it was granted, the leave may be terminated, employment with the City may be terminated, and pay for the leave may need to be reimbursed to the City, as determined by the City Manager.
3. Unauthorized Leave: Absence without approved leave, voluntary or involuntary, for five (5) consecutive workdays constitutes resignation from the City on the last day worked.
R.Q. Time off to vote: The City is willing to accommodate employees who need to take time off to participate in public elections. Generally, employees are able to find time to vote before or after their regular work schedule. If an employee is unable to vote in an election during non-working hours, the City will grant up to two (2) hours of unpaid time off to vote.
Item 8.2
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S.R. Leave During Job Action: No employee shall be eligible for paid leave as a result of, or while participating in or engaged in, any concerted work action.
Section 10: Worker’s Compensation:
Under the Worker's Compensation Act, provisions are made for benefit payments if an employee is disabled in the course of employment and misses work as a result of the disabling condition. The Worker's Compensation Act also provides free medical and hospital service, if necessary, for the disabling condition. In order to meet the requirements of the act, the City carries Worker's Compensation Insurance. For the employee’s protection, it is mandatory that any injury, no matter how slight, be reported immediately to the employee’s supervisor. If medical attention is needed, he or she will arrange for a visit to a doctor designated by the City.
Employees who are receiving temporary disability indemnity payments under Division 4 or Division 4.5 of the Labor Code shall accumulate vacation, holidays and sick leave during such period of time that they are drawing such temporary disability indemnity. The City shall continue to provide health, dental, vision and life insurance plan coverage for regular full-time and regular part-time employees as if they were on payroll as regular employees.
Employees disabled in the course of employment and eligible for Worker’s Compensation Benefits shall be on paid administrative leave until the effective date of temporary disability indemnity payments to the employee or until it is determined that recovery from disability is sufficient to release the employee to return to work, whichever occurs sooner.
With the commencement of temporary disability indemnity payments, the employee may use accrued leave in an amount such that the combination of leave time and temporary indemnity payments equals the employee’s regular salary. When and if the leave time is exhausted, the employee shall be on unpaid leave until it is determined that recovery from disability is sufficient to release the employee to return to work or it is determined that the employee’s disability is permanent and the employee will not be able to return to work.
Section 11: Benefits
A. Medical Coverage: All regular full-time and regular part-time employees are eligible for participation in the City's medical insurance plan, which provides health, dental, and vision coverage in accordance with provisions adopted by the City Council.
If the employee loses coverage for any reason, the employee may continue medical coverage at his or her own expense in accordance with the provisions of the Federal Consolidation Omnibus Budget Reconciliation Act (COBRA) and such other provisions as may be adopted by the City Council. COBRA gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under the City's health plan when a qualifying event would normally result in the loss of eligibility.
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Some qualifying events are resignation, termination of employment, death of employee, a reduction in an employee's hours or leave of absence, an employee's divorce or legal separation, and a dependent child no longer meeting eligibility requirements.
Under COBRA, the employee or beneficiary pays the full cost of coverage at the City's group rate plus an administration fee of 2% of the premium. Coverage can continue for up to thirty-six (36) months after termination, depending on the qualifying event, or as much as twenty-nine (29) months if the employee is disabled, provided the employee has paid the applicable premiums at least two (2) weeks prior to the premium due date.
B. IRC 125 and 129 Plans: The City may establish a pre-tax plan as provided under IRC 125 and IRC 129 of the Internal Revenue Service Code. This plan may provide 1) a cafeteria plan in addition to or in lieu of health, dental, and/or vision insurance; 2) a dependent care assistance plan for pretax payment of child care expenses; 3) a medical spending account for pre-tax payment of out-of-pocket medical expenses up to a limit established by the City; and/or 4) pre-tax payment of medical premiums.
Participation in such plans will be established by the plan document. Cafeteria plan benefits are limited to unrepresented employees.
C. Life Insurance: All regular full-time and regular part-time employees are eligible for participation in the City's life insurance plan in accordance with provisions adopted by the City Council by resolution.
D. Safety Equipment: The City shall provide designated employees with safety prescription glasses (glasses only, not prescription examination) whenever safety glasses are required by the CAL/OSHA or other State or Federal regulation. The City will not provide for broken lenses or frames unless such breakage is the result of an on-the- job accident. The City shall provide designated employees with safety shoes as specified by the City Manager whenever such shoes are required by the CAL/OSHA or other State of Federal regulations.
The City has a separate policy for designated employees who are required to wear work boots when performing their work duties. The policy is entitled, “City of Mountain House Work Boot Policy.”
E. Defined Benefit Plan: Regular Full-time and Regular Part-time City employees are members of San Joaquin County Employees’ Retirement Association (SJCERA).
SJCERA is a defined benefit plan, qualified under Section 401(a) of the Internal Revenue Code. A defined benefit plan is an employer-sponsored retirement plan that provides members a lifetime benefit based on a formula using age at retirement, years of service, and final average compensation. SJCERA administers the benefits in accordance with the provisions of the County Employees Retirement Law (CERL) of Item 8.2
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1937, the Public Employees Pension Reform Act (PEPRA) of 2013 and the Internal Revenue Code.
Regular Full-time and Regular Part-time City employees are members of SJCERA.
Membership eligibility and any exclusions to membership will comply with SJCERA’s bylaws, policies, and regulations.
Section 12: Outside Employment
Outside employment cannot be incompatible with the employee's duties and/or responsibilities. Prior to accepting any outside employment, the employee must notify his or her supervisor or manager and obtain the approval of the City Manager or designee.
An employee's work for the City must not be adversely affected by any outside employment, as determined by the City Manager. In addition, it is the employee’s responsibility to avoid conflicts of interest under the Political Reform Act of 1974.
Section 13: Discipline
The City retains the discretion to determine what constitutes proper disciplinary action and procedure in individual situations. Unrepresented employees of the City are considered at-will employees and employment may be terminated at any time without cause. Represented employees are covered by the disciplinary provisions outlined in the applicable Memorandum of Understanding.
Section 14: Equal Employment Opportunity Program
The City is committed to the principles of equal employment opportunity. The City Manager designates the Administrative Services Director as the City’s Equal Employment Coordinator.
A. Equal Employment Opportunity Policies:
1. Equal Employment Opportunity Policy Statement: It is the policy of the City to comply with the spirit and letter of all laws prohibiting discrimination and harassment. The City shall provide equal opportunity in the provision of programs, services, and employment opportunities. No person shall be harassed or discriminated against with regard to recruitment, selection, appointment, training, promotion, retention, discipline, or other aspects of employment because of race, religious creed, color, sex, gender, gender identity, gender expression, marital status, ancestry, national origin, physical disability, mental disability, medical condition, genetic information, age (40 or older), political affiliation, sexual orientation, military and veteran status, or other protected characteristics.
The objective at the City is to have a work forceworkforce that is representative in all occupations and at all levels of the relevant labor market.
Item 8.2
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The City will promote full implementation of the Equal Employment Opportunity policy. In addition, the City will encourage these practices in all areas of endeavor when fulfilling contract agreements or other services to clients.
The Equal Employment Opportunity policies have been developed to reinforce and enhance merit employment concepts and to ensure that all segments of the relevant labor market have an opportunity to enter employment on the basis of open competition and to advance according to their relative ability and fitness.
2. Harassment: It is the policy of the City to provide a workplace free of harassment.
The City prohibits harassment of a City employee, applicant, unpaid intern or volunteer, visitor, or person providing services to the City pursuant to a contract, because of their race, religious creed, color, sex, gender, gender identity, gender expression, reproductive health decisions making, marital status, ancestry, national origin, physical disability, mental disability, medical condition, genetic information, age (40 or older), political affiliation, sexual orientation, military and veteran status, or other protected characteristics.
Harassment of any type is prohibited, is considered an act of misconduct, and may result in disciplinary action up to and including termination. This policy applies to all of the City's employees and agents, including supervisory and non-supervisory employees. All supervisors and managers are responsible for implementing and monitoring compliance with this policy.
Harassment is defined as unwelcome or unsolicited conduct that is taken because of any protected classification, and that is sufficiently severe or pervasive to alter the conditions of employment and create an intimidating, hostile, or offensive working environment. Examples of what may be considered harassment, depending on the facts and circumstances, include, but are not limited to, the following:
a. Verbal harassment: Derogatory or vulgar comments regarding a person's actual or perceived protected characteristics; inappropriate jokes; verbal abuse, threats or intimidation; verbal commentaries about an individual's body, physical appearance, or attire; degrading words used to describe an individual; suggestive or obscene letters, notes or invitations; or use of epithets, derogatory comments or slurs.
b. Physical harassment: Hitting; pushing; touching; pinching; grabbing; massaging; assaulting; impeding or blocking movement; or other aggressive physical conduct, or threats to take such action, or promises in return for submission to such action.
c. Sexual harassment: Unwelcome or unsolicited sexual advances, demands for sexual favors, or other verbal or physical conduct of a sexual nature. Sexual Item 8.2
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harassment includes, but is not limited to, making unwanted sexual advances and requests for sexual favors where (1) submission to such conduct is made an explicit or implicit term or condition of employment; (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; (3) rejection of such conduct or a negative response leads to threatening reprisals; or (4) such conduct has the purpose or effect of substantially interfering with an individual's work performance or creating an intimidating, hostile, offensive or abusive working environment.
Sexual harassment may be perpetrated by someone who is of the same sex as the victim. Harassing conduct need not be motivated by sexual desire. d. Visual harassment: Leering; making sexual gestures; displaying sexually suggestive objects, pictures, cartoons, posters, or other writing or graphic materials; displaying offensive or derogatory posts, documents, electronic media transmissions, cartoons, drawings or inappropriate gestures related to a protected characteristics.
Any employee who has a complaint of harassment at work involving anyone, including supervisors, co-workers, visitors or other third parties, should promptly notify the Equal Employment Coordinator. The person who complains of the harassment may be the target to whom the harassing conduct was directed, or a third party who witnessed the harassing conduct.
Supervisors who become aware of any harassment, whether it involves employeeto-employee, employee-to-supervisor or supervisor-to-employee conduct, must promptly report the matter to the Human Resources Manager and/or Equal Employment Coordinator. If supervisors observe such harassment, they should take immediate action to stop it and report it to the Human Resources Manager and/or Equal Employment Coordinator. The Human Resources Manager and the Equal Employment Coordinator will notify each other of any reports made.
Special privacy safeguards will be applied in handling all harassment complaints.
All employees should be aware that the privacy of the charging party and the person accused of harassment will be, to the extent practicable, kept confidential.
The City will take appropriate corrective action, up to and including termination of employment, to remedy all violations of this policy.
The City strictly prohibits any form of retaliation against anyone who complains of harassment to management.
4. Religious Accommodations: The City shall make reasonable accommodations to the religious observances and practices of employees, prospective employees or applicants when such accommodation can be made without undue hardship on the conduct of business. Business necessity, costs or expenses, and any resulting personnel problems will be considered when making a determination on Item 8.2
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reasonable accommodation. An accommodation of an individual’s religious dress practice or religious grooming practice is not reasonable if the accommodation requires separation of the individual from other employees or the public.
5. Accommodations for Known Disabilities or Medical Conditions: For employees, prospective employees or applicants with a known disability or medical condition, the City shall reasonably accommodate those individuals who are able to perform the essential duties of their position with or without reasonable accommodation, and can perform their duties in a manner that would not endanger their own health or safety or the health and safety of others with or without a reasonable accommodation. The City is not obligated to provide an accommodation which will create an undue hardship.
B: Equal Employment Opportunity Program Details:
1. Purpose
The purpose of the Equal Employment Opportunity program is to:
a. Reaffirm the organization's policy and commitment to equal opportunity in employment practices, program operations, and service delivery systems. b. Disseminate the Equal Employment Opportunity policy within the organization and to the public.
c. Outline the general responsibilities of the City Council, City Manager, Equal Employment Coordinator, Human Resources Manager, supervisors, and other staff responsible for administration of the Equal Employment Plan. d. Develop and maintain an Equal Employment Plan that provides guidelines for implementing equal employment policies and procedures which are in compliance with all federal laws, state laws and other related directives. e. The Equal Employment Plan shall include periodic review and reevaluation of the program to ensure compliance.
f. Report annually to the City Council on the status of representation in the organization and actions taken to increase the representation of protected groups in all employment areas where underutilization exists.
2. Responsibilities
To ensure equal employment opportunity for all individuals, the City has designated specific responsibilities to various staff members so that the Equal Employment Item 8.2
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Plan focuses on all components of the employment system. The following positions shall undertake the responsibilities described below.
a. City Council: The Council has the ultimate responsibility for setting a climate in which equal employment opportunity goals can be achieved through the establishment of policy and supporting programs.
b. City Manager: The City Manager has overall responsibility for the Equal Employment Opportunity Program and compliance with the Americans with Disabilities Act. The City Manager shall ensure that the organization's policies of equal opportunity are effectively implemented at all levels of the organization.
The City Manager's role includes, but is not limited to, the following duties:
• Designate or serve as Equal Employment Coordinator with the responsibility for overseeing, administering, implementing and monitoring the Equal Employment Opportunity Program.
• Ensure that the Equal Employment Opportunity Program receives top management's support and commitment necessary for success. • Ensure that employee complaints concerning discrimination or sexual harassment are acted upon in a professional and expedient manner. • Report annually to the City Council on the status of the Equal Employment Opportunity Program.
c. Equal Employment Coordinator: The Equal Employment Coordinator shall:
• Advise the City Manager, and others as may be required, with respect to their responsibilities and obligations under federal and state civil rights laws and regulations, and on progress made in achieving equal employment goals.
• Coordinate matters and issues that arise regarding the Americans with Disabilities Act (ADA).
• Serve as a resource person to facilitate effective equal employment techniques for special recruitment efforts.
• Maintain and periodically review the Equal Employment Opportunity policies and related documents.
• Develop guidelines and procedures for the Equal Employment Opportunity Program, including preparation of equal employment updates. • Coordinate the processing of individual complaints of discrimination received from individuals, or state or federal agencies.
• Conciliate complaints of discrimination upon request by a complainant or complainant's representative and the responding department or division, and report to the City Manager.
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• Interpret the organization's Equal Employment Opportunity/Affirmative Action and Americans with Disabilities Act programs to employees, other governmental agencies, and the public.
• Prepare a variety of Equal Employment Opportunity/Affirmative Action reports as required by federal, state, and other local agencies. d. Managers and Supervisors: Each manager and supervisor shall ensure that the City's policy of equal employment opportunity is implemented in the unit and shall:
• Assure compliance with Equal Employment Opportunity/Affirmative Action and Americans with Disabilities Act programs and policies in their units. • Assist in developing and implementing Equal Employment Opportunity/Affirmative Action and Americans with Disabilities Act programs. • Ensure that the City's policies and programs are communicated and upheld by all unit employees.
• Develop and implement equal employment in response to identified deficiencies in the unit.
• Cooperate in the investigation and resolution of discrimination complaints. • Ensure that all recruitments, interviews, offers of employment, development programs, transfers, job assignments, promotions, and separations are consistent with the City’s Equal Employment Opportunity policy. e. Employees: Employees shall adhere to and support Equal Employment Opportunity policies and procedures and the Americans with Disabilities Act via their actions and behaviors.
3. Dissemination
The City will bring its policy of Equal Employment Opportunity to the attention of employees and clients. The City's policy shall be disseminated both internally and externally.
a. Internal Dissemination
• The policy shall be conspicuously displayed in the organization. • Each employee shall receive a copy of the agency's personnel policies that shall include the City's Equal Employment Opportunity Program. • Information regarding Equal Employment Opportunity/Affirmative Action, Americans with Disabilities Act policies, and plan updates shall be posted on the employee bulletin board and other internal communications. b. External Dissemination
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• All employment advertisements and job bulletins shall contain the phrase "Equal Opportunity Employer."
• All regular recruitment sources shall be informed of the City's Equal Employment Opportunity/Affirmative Action policies, and shall be encouraged to refer minorities, females, physically disabled persons, mentally disabled persons, and U.S. Veterans from all age groups. • Employment opportunity information shall be disseminated to community groups representing underutilized populations.
• All contracts and bids shall include an Equal Employment Opportunity clause either by reference or in its entirety.
4. Recruitment and Selection
In order to meet equal employment goals and maintain Equal Employment Opportunity, the City will ensure equal opportunity for competition in recruitments for all potential applicants, especially members of underutilized protected groups.
The recruitment and selection process shall be reviewed and modified as necessary in order to correct any deficiencies and eliminate artificial barriers to job competition.
5. Audit and Reporting System
The Equal Employment Plan will be assessed to determine progress and identify deficiencies. Corrective action shall be determined to better accomplish the goals and objectives of the Equal Employment Opportunity program.
6. Guidelines
• The Equal Employment Opportunity program will be reviewed and updated periodically.
• Openings will be reviewed to determine if underutilization exists, and if there is a deficiency, persons of the underutilized group will be encouraged to apply and compete.
• The Equal Employment Coordinator shall advise the City Manager, or designee of the Equal Employment Opportunity program's effectiveness and submit recommendations to correct underutilization.
• The City Manager will report to the City Council on the status of the Equal Employment Plan annually.
7. Complaint Process
Item 8.2
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This section states the City's policy, guidelines, and procedures regarding discrimination, harassment and retaliation.
The City’s policy is to provide a work environment free from any type of discrimination, harassment and retaliation. Discrimination and harassment based on protected characteristics are illegal and will not be tolerated by the City.
Retaliation based on protected activity is illegal and will not be tolerated by the City. Appropriate disciplinary action, up to and including termination, will be taken against employees found responsible for discrimination, harassment or retaliation, and against supervisors who allow such practices to continue.
All complaints alleging unlawful discrimination, harassment and/or retaliation will be kept confidential, to the extent possible.
When the City receives allegations of misconduct, it will conduct a fair, timely, and thorough investigation. If, at the end of the investigation, misconduct is found, appropriate remedial measures shall be taken.
The City will not discriminate against or harass any employee for filing a complaint. Employees, supervisors or managers who retaliate against an employee for filing a complaint are in violation of this policy.
A. Guidelines
1. Process for Resolving Complaints: The City encourages employees to try to resolve their complaints informally within their work units before considering a formal complaint. However, employees may file a formal complaint without going through the informal complaint process.
2. Date of Occurrence: The date and time that an employee realizes that he or she has been discriminated against or sexually harassed. The date of occurrence is an important factor in the investigation process.
3. Informal Complaint Process (Optional): An employee who believes that he or she is being discriminated against or sexually harassed by a coworker or supervisor is encouraged to:
• Confront whoever is doing the discriminating or harassing in a polite but firm manner. The employee should state how he or she feels about what is occurring.
• Request the person to stop the discriminating/harassing behavior because it is intimidating, offensive, and/or uncomfortable. If possible, the employee should bring a witness for this discussion.
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• Write a statement for the employee's own records about the incident, noting the date of occurrence, time, and other details; summarize in writing the results of any conversation(s) with the person who is doing the discriminating/harassing. This information may be important if there is a formal investigation later.
If the discrimination or harassment continues and has not been resolved in the daily work environment, or if the employee does not wish to confront the person doing the discriminating or harassing, the employee is encouraged to present the complaint as follows:
• If the discrimination or harassment is perpetrated by a co-worker, the employee should present the complaint to his or her supervisor. • If the discrimination or harassment is perpetrated by the employee's supervisor, the employee should present the complaint to the next level of management.
• If the employee does not feel comfortable with the above, or if the supervisor or manager would be the City Manager or Deputy City Manager, he or she should present the complaint to the City's Equal Employment Coordinator. The supervisor, next level of management, or Equal Employment Coordinator will attempt to resolve the issue with an objective, confidential investigation to begin within three working days of the date of the employee contact.
A written response will be given to the employee within fifteen (15) working days of the date of the employee contact.
4. Formal Complaint Process:
• If the employee chooses to bypass the informal complaint process, a formal complaint shall be made no later than 10 days after the employee should reasonably have been aware of the alleged act of discrimination or harassment.
• If the complaint is not resolved through the informal complaint process, a formal complaint should be made as soon as possible, but not later than 45 days after the employee should reasonably have been aware of the alleged act of discrimination or harassment, or if the employee chooses to bypass the informal complaint process, then a formal complaint may be presented in one of two ways:
➢ In writing to the City Manager, Equal Employment Coordinator or Human Resources Manager
➢ Orally to the City Manager, Equal Employment Coordinator or Human Resources Manager
• Within five (5) working days of receiving the complaint, the City Manager, or Equal Employment Coordinator or Human Resources Item 8.2
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Manager Equal Employment Coordinator, if the complaint is against the City Manager, will appoint an investigator to conduct a timely, thorough, and impartial inquiry. The inquiry will be confidential, to the extent possible.
• The investigator will interview the parties involved and complete a written report including recommended course of action for the City Manager, Equal Employment Coordinator or and Human Resources Manager within fifteen (15) working days of receiving the complaint.
The City Manager, Equal Employment Coordinator, or Human Resources Manager may extend the time required for completion of the investigation if there are extenuating circumstances.
• Within five (5) working days of receiving the recommendation, the City Manager will take appropriate action to resolve the complaint, unless the complaint is against the City Manager, in which case the report of the investigation and any recommendation by the Equal Employment Coordinator or Human Resources Manager will be referred to the City Council to take appropriate action to resolve the complaint within (10) working days of receiving the report.
The employee who initiated the complaint will be notified of the decision through his or her manager unless the complaint was against the manager, in which case, the City Manager will contact the employee. If the complaint was against the City Manager, the Equal Employment Coordinator or Human Resources Manager will contact the employee.
5. Appeal: If the complainant is not satisfied with the decision, he or she may file an appeal within fifteen (15) calendar days of receiving the decision with the Mayor of the City Council. The Mayor may decide to refer the appeal to the full City Council, refer the appeal to a committee of the Council, or refer the case to a hearing officer for a non-binding recommendation. The Council shall consider the recommendation in a closed session and issue a decision within thirty (30) days after consideration.
B. Government Agencies
Individuals have the option to report harassment, discrimination or retaliation to any of the following government agencies:
Dept of Fair Employment & Housing Toll free: (800) 884-1684 2218 Kausen Drive, Suite 100
Elk Grove, CA 95758 Email: [email protected]
Phone for disability accommodations:
(844) 541-2877
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EEOC District Office Toll free: (800) 669-4000
450 Golden Gate Avenue Fax: (415) 522-3415
San Francisco, CA 94102-3661 TTY: (800) 669-6820
ASL Video Phone: (844) 234-5122
Section 15: Work Rules
The City Manager may establish work rules to govern daily operations of the City and may amend such rules as needed.
Section 16: Confidentiality
Certain materials, files and information are confidential and occasionally sensitive. City employees are responsible for knowing which information is confidential and what may be released and for maintaining the security and confidentiality of confidential materials.
Release of confidential information may be damaging to the safety and security of employees or residents, may result in loss of privacy for employees or residents, and may subject the City to liability or damage the City's image. Failure to maintain confidentiality may subject the employee to disciplinary action.
Disclosure of Closed Session Information
An employee shall not disclose confidential information acquired by being present during a closed session to a person not entitled to receive such information, unless the Council authorizes disclosure of that information. (Government Code section 54963.) Confidential information means a communication made in a closed session that is specifically related to the basis for the Council to meet lawfully in closed session. (Government Code section 54963.)
An employee who willfully discloses confidential information acquired during a closed session may be subject to disciplinary action if he/she has received training or notice as to the requirements of this policy. (Government Code section 54963.) The City Manager, or designee, shall provide a copy of this policy to all employees who attend closed sessions. New employees who may attend closed sessions shall also receive a copy of this policy.
The City shall not take disciplinary action against any employee for disclosing confidential information acquired in a closed session, nor shall the disclosure be considered a violation of the law or Council policy, when the employee is:
1. Making a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of the law, including disclosing facts necessary to establish the illegality or potential illegality of a Council action that has been the Item 8.2
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subject of deliberation during a closed session if that action were to be taken by the Council.
2. Expressing an opinion concerning the propriety or legality of Council action in closed session, including disclosure of the nature and extent of the illegal or potentially illegal action.
3. Disclosing information that is not confidential.
(Government Code section 54963.)
Other Disclosures
An employee who willfully releases confidential/privileged information about the City, the public, or staff shall be subject to disciplinary action.
No employee shall disclose confidential information acquired in the course of his/her official duties. Confidential information includes information that is not a public record subject to disclosure under the California Public Records Act, information that by law may not be disclosed, or information that may have a material financial effect on the employee.
Any action by an employee that inadvertently or carelessly results in release of confidential/privileged information shall be recorded, and the record shall be placed in the employee's personnel file. Depending on the circumstances, the City Manager, or designee, may deny the employee further access to any privileged information and shall take any steps necessary to prevent any further unauthorized release of such information.
Section 17: Acceptance of Gifts
As specified in Council Resolution, City employees may be offered or receive gifts, often as small as candy, baked goods, promotional items, flowers, etc., from residents, vendors or others. In these circumstances, it is inappropriate to accept the gift when offered. If the gift is received without prior notice to the employee, the gift must be returned, used for work-related purposes or shared in its entirety with staff and/or visitors to City offices. In no circumstances may an employee accept cash or its equivalent or alter the level of service or purchasing based on such gifts.
Any honorarium paid to a City employee for a speaking engagement or other presentation such as an appearance shall be returned to the City.
As public employees, City employees are covered by provisions of the fair Political Practices Commission and conflict of interest legislation. Guidelines require designated employees to report meals, gifts, or expenditures on the employee's behalf of over $50.00 on conflict of interest forms. All employees shall report gifts of any value to their supervisor.
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Section 18: Nepotism
No City supervisor or manager may directly or indirectly supervise a spouse, parent, child, sibling, grandparent, grandchild, niece, or nephew of the employee or the employee's spouse or registered domestic partner, unless otherwise approved by the City Manager.
Section 19: Use of City Resources
1. General: Incidental use of City equipment is permissible as long as it is kept to a minimum, does not conflict with City business, is on the employee's own time, and is not used for personal profit. Supervisors are expected to monitor use. All use must be consistent with the provisions of Section 26.
2. Phones: Employees should use personal devices to make long distance personal calls. When this is not possible or efficient as determined by the City Manager, employees may dial direct and reimburse the City.
3. Copy Machines: Maintenance and supplies for City copy machines represent a considerable cost of doing business. Therefore, employees should use the copy machines for personal use sparingly. If an employee copies a personal document, he or she must pay $.10 per copy, or such greater amount as may be set by the City Manager. This reimbursement should be given to the City Manager or Finance Department designee at the time the copying occurs.
4. Computers - Onsite and offsite: Incidental personal use of the onsite City computers utilizing City software is permissible with management approval provided it complies with the security provisions, is done on the employee’s own time and does not interfere with City operations. Usage should be on personal time, not inhibit City business use by others, not occupy excessive amounts of disk space, not contain data from an employee's off-hours side business, and not contain content that violates City values or puts the City at legal risk.
5. City Business-Related Education: The City would like to support employees' desire to further their education. City equipment may be used for educational purposes with management approval. If the employee requires more than five (5) megabytes of file server disk storage, management approval is required.
Printer paper should be reimbursed at the same rate as copy paper.
6. City Staff: City staff shall not be used for personal business during working hours.
7. Personal Software: No personal software shall be installed or loaded on the City network (including workstation hard drives or laptops). The City maintains a Item 8.2
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collection of approved/maintained software and no other software may be installed or loaded without approval from the City Manager.
8. Software Installation and Changes to Configuration: No software will be installed on City owned workstations or laptops by employees. No configuration changes will be made to City owned computers with the exception of colors, screen resolution, file directory defaults, and desktop wallpaper. City owned computers and laptops are the property and maintenance responsibility of the City and will be upgraded by technology support staff only.
9. Privately Owned Computers: An employee has all rights and authority over their own personal equipment. No City- owned software will be installed by the employee on a privately owned computer without prior approval of management.
When a user installs City- owned software, they are responsible for maintenance and upgrades. Regardless of software ownership, the privately owned computer is not and will not be the maintenance responsibility of the City and will not be upgraded or maintained by City staff or contracted service providers. This policy will allow for the separation of responsibility; City staff is responsible for City computers and applications, and the home user is responsible for the home user’s own private computer.
Section 20: Workplace Privacy
Any information contained on City networks, hard disks, files, desks, and lockers is not "personal/confidential." The City may have need, during the normal course of business, to search computer or hard copy files or an employee's desk for necessary information.
The City will not guarantee that items of a personal nature will be undisturbed if this type of search is necessary. If employees have information that they deem personal and confidential, it should not be located at the City. Common sense and courtesy will be exercised in the event staff needs to search another employee's work area, but personal items of a sensitive nature may be inadvertently disturbed.
Employees should not encrypt documents of a business nature unless they are highly sensitive. In this case, the encrypted password should be given to the employee's supervisor for emergency access. All desks, filing cabinets, and hard disks that lock should have a key located with the employee's supervisor for emergency purposes.
Section 21: Smoking Prohibited
The City provides its employees and visitors with a safe workplace free of smoke and its by-products. As such, smoking and vaping is prohibited in all work areas including City vehicles. Employees or visitors wishing to smoke must do so in designated areas outside any City buildings.
Section 22: Personal Appearance
Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
The City promotes a professional and high quality workplace for our clients and our employees. This is supported by staff dressing in a businesslike and professional manner and maintaining a neat and well-groomed appearance. Accordingly, staff is expected to dress in a manner appropriate for the type of work performed.
Section 23: Drug and Alcohol Abuse
The City is a drug-free workplace. The City recognizes the problems and hazards associated with drug and alcohol use. Therefore, the City prohibits the use, possession, or distribution of drugs and alcohol on its property. To ensure a drug and alcohol-free environment, the City has adopted the following policy:
• The use, possession, or distribution of any alcoholic beverages, intoxicants, narcotics, illegal or unauthorized drugs, "look-alike,", or simulated drugs, prescription drugs not prescribed for the employee, and related paraphernalia on City worksites or in City vehicles is strictly prohibited. Employees shall not report to work under the influence of any drug, alcoholic beverage, intoxicant, narcotic, or other substance, including prescribed drugs and medication that will adversely affect their working ability, alertness, response, or coordination, or jeopardize the safety of others. The City reserves the right to require a drug test of any employee reasonably believed to be under the influence.
Serious offenses may be grounds for termination. Depending on the nature of the offense, and extenuating circumstances involved, the City Manager shall determine the appropriate level of discipline.
Section 24: Electronic Mail
It is the City's policy that the electronic mail (e-mail) system, like other City property, be used in a professional and lawful manner and solely for the benefit of the City.
A. Nature of E-Mail: When a message is deleted from the e-mail system, a record of it may remain on the computer system. Because there is the possibility that inappropriate communications on e-mail may be not only widely published, but also indelibly stored, the City requires that all employees exercise appropriate discretion in using the e-mail system. Even though e-mail is a less formal communication than business letters, employees must remember that e-mail messages are City communications as well as public records and must be treated as such.
Accordingly, the e-mail system may not be used to send jokes or other comments to others that may be perceived as discriminatory, harassing, offensive, or disruptive. Employees may not use the e-mail system to send Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
material that disparages an individual, the City, or business entity or discloses personal information without authorization.
B. Access to E-Mail: The e-mail system is not a private mode of communication.
When you use e-mail, you are creating City documents that may be considered a public record and/or read by others in circumstances, including, but not limited to, the following business or legal purposes:
• During regular system maintenance;
• When a business need exists to access the employee's mailbox; • In response to a legal request to disclose e-mail messages from law enforcement officials or in ongoing legal proceedings;
• When the City has reason to believe that the employee is using e-mail in violation of City policies (including, but not limited to, its policies prohibiting discrimination and harassment, misappropriation of City property, or using City equipment for personal purposes); or
• For periodic, unannounced inspection by the City for business purposes.
System security features, including passwords and message delete functions, do not prevent the City from accessing any message at any time. Employees must be aware that the possibility of such access always exists. Should employees make incidental use of the e-mail system to transmit personal messages, such messages will be treated no differently than other messages and may be accessed by the City under any of the circumstances in the preceding list. E-mall is not a personal bulletin service.
Solicitations, offers to buy and sell goods or services, and other personal messages to large groups via the e-mail system are not appropriate uses of this City asset.
Section 25: Use of City Resources
City equipment, including, but not limited to, telephones, computers, facsimile machines, and copying machines, must be used with care and must not be abused. Employees are prohibited from using any City equipment for personal reasons unless the employee has received prior authorization from a supervisor or manager. In addition, employees are prohibited from using any City equipment for personal reasons on behalf of outside employers, vendors, or elected officials during working hours without prior authorization from a supervisor or manager.
Section 26: Solicitation Policy
It is the City's policy that no solicitation and/or advertising of any nature be permitted in City facilities unless authorized by the City Manager and/or the City Council. The Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
purpose of this policy is to prevent the unnecessary interruption of City business and to establish a common procedure governing solicitation and/or advertising.
Section 27: Workplace Violence Prevention
The City is committed to preventing workplace violence and to maintaining a safe work environment. To help ensure a safe environment, the City may install security cameras.
All employees should be treated with courtesy and respect at all times. Employees are expected to refrain from fighting, "horseplay,” or other conduct that may be dangerous to others. Firearms, weapons and other dangerous or hazardous devices or substances are prohibited.
Conduct that threatens, intimidates, or coerces another employee, a customer, or member of the public at any time, including off-duty periods, will not be tolerated. This prohibition includes all acts of harassment.
All threats of (or actual) violence, both direct and indirect, should be reported as soon as possible to your immediate supervisor, Human Resources, or any other members of management. This includes threats by employees, customers, vendors, solicitors, or other members of the public. When reporting a threat of violence, you should be as specific and detailed as possible. All suspicious individuals or activities should be reported as soon as possible.
Section 28: Use of Vehicles
From time to time, City employees may be required to drive a City vehicle or the employee's personal vehicle on City business. This policy is being implemented to assist the organization in managing the risk and exposure related to employees driving on City business. The goal of this policy is for all employees to maintain a good driving record, carry an amount of insurance as determined by the City Manager, and assist the City in minimizing the risk factor of over exposure to litigation and claims resulting from auto accidents while conducting City business.
City owned vehicles shall be used only to conduct City business. No City officer or employee shall use, or permit the use of, any City-owned vehicle other than in the conduct of City business.
A. Documentation: Any City employee who drives on City business must provide the following at the start of employment and at the start of each fiscal year:
• Proof of insurance for all employees who use their personal vehicles for City business. Verification may include a copy of the declaration sheet stating (a) Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
name of insurance carrier; (b) effective date of coverage; (c) limits of coverage.
• A current, valid, California Driver's license.
An approved driver’s list will be maintained for all employees who must drive as a part of their jobs. Supervisors will be responsible for identifying these positions (work-based needs). All drivers must be able to legally drive in California. An employee who loses the right to drive, or whose license is restricted for any reason, must immediately report such to his or her supervisor.
B. Motor Vehicle Record Reporting Requirements: All employees are required to immediately report to their supervisor or manager when they have been involved in an accident while driving on City business in a personal or City vehicle. If an employee reports two (2) at-fault (preventable) accidents within a 24-month period, a review of the employee's insurance coverage and job-related driving activity will be required.
C. Insurance Liability Coverage and Limits: All drivers must carry insurance with minimums of no less than the State of California legal requirement, or such greater amount as may be determined by the City Manager. The current requirement is:
• $15,000 bodily injury liability per person
• $30,000 bodily injury liability per occurrence
• $5,000 property damage liability coverage
In addition to the minimum coverage required, City employees must provide their own comprehensive coverage if they want their vehicles insured. The City insurance will not cover auto body damage to employees’ vehicles. For those employees with comprehensive coverage, the City will pay their deductible, up to $250, for accidents occurring while on City business, provided the employee is not at fault.
D. Use of GPS
The City reserves the right to install Global Positioning Systems (GPS) devices on all City vehicles. At the time such devices are installed, notification will be provided to all employees.
Section 29: Travel Policy
Refer to Section 300 of the Financial Management Manual for Travel Policy information and directives.
Section 30: Educational Reimbursement Policy
Item 8.2
Amended 6/12/2024
05/23/2025
6/11/2025
Upon proof of passing career-related course(s), regular full-time and regular part-time employees may be reimbursed for career-related course work taken on the employee’s own time equal to 50% of the cost of tuition and fees, but not to exceed a reimbursement for each course equal to 50% of the cost of tuition and fees for a four unit course at a California State College. Reimbursement is subject to determination by the City Manager that a course is career- related and subject to approval by the City Manager who may prepare and issue guidelines for the administration of this policy.
Section 31: Political Activities
Employees shall not engage in political activities of any kind either during the employee’s work hours or on City property.
Section 32: Fragrance-Free Policy
The City requires that offices and other spaces used by employees remain free of scented products. Therefore, the City will work with building management/facilities to ensure that products used to clean and maintain the building are fragrance-free and that employee exposure to cleaning chemicals is limited. Use of cleaning products other than those approved and/or purchased by the City or building management is prohibited.
City staff and visitors are required to refrain from wearing or using any scented products while on the premises. These include, but are not limited to, perfume, cologne, body sprays, aftershave, scented lotion, scented hair products, scented deodorants, and similar products.
Use of air fresheners, plug-ins, and candles is prohibited in the facilities and vehicles owned and operated by the City.
City staff should inform visitors of this policy. Sample language to send to visitors: “Our workplace has a fragrance-free policy. Please do not wear or use any of the following during your visit to our facilities: perfume, cologne, body sprays, aftershave, scented lotion, scented hair products, scented deodorants, and similar products. Thank you.” Violations of this Fragrance-Free Policy by employees will be handled through standard disciplinary procedures.
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT E
CITY OF MOUNTAIN HOUSE
RESOLUTION
R-2025-XX
RESOLUTION APPROVING UPDATED
FINANCIAL MANAGEMENT MANUAL
WHEREAS, the City Council of the City of Mountain House develops and maintains policies in order to ensure that functions are performed efficiently and procedures are in place to address issues as they arise; and
WHEREAS, the City Manager has compiled certain administrative policies and procedures related to financial management policies and practices; and WHEREAS, the Council now desires to adopt the updated Financial Management Manual, attached to this Resolution as Exhibit 1.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council adopts the updated Financial Management Manual attached to this Resolution as Exhibit 1.
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the City Council of the City of Mountain House, to wit:
AYES:
NOES:
ABSENT:
ANDY SU, MAYOR
City of Mountain House
County of San Joaquin,
State of California
ATTEST:
CITY CLERK
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT E
City of Mountain House
County of San Joaquin
State of California
By:
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT F
BEFORE THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE
RESOLUTION
R-2025-XX
RESOLUTION APPROVING THE JOB DESCRIPTION FOR FACILITY MANAGER WHEREAS, the City Council of the City of Mountain House has adopted the Operating and Capital Improvement Budget for fiscal year 2025/26; and WHEREAS, the adopted budget includes the addition of a Facility Manager to meet the additional demands resulting from growth in the community and increased pace of activity; and WHEREAS, the Council has reviewed and approved the attached job description for Facility Manager (Exhibit 1).
NOW, THEREFORE, BE IT RESOLVED that the City Council approves the attached job description for Facility Manager.
Item 8.2
POLICY & ACTION ITEM 8.1
ATTACHMENT F
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the City Council of the City of Mountain House, to wit:
AYES:
NOES:
ABSENT:
___________________________________
ANDY SU, MAYOR
City of Mountain House,
County of San Joaquin,
State of California
ATTEST:
CITY CLERK
City of Mountain House,
County of San Joaquin, State of California
By: ___________________________
Item 8.2
JUNE 2025
FLSA: EXEMPT
UNIT: SEIU
DEFINTION
Under general direction, provides supervisory/lead direction to contractors and City maintenance staff on matters related to the construction and maintenance of City facilities. Coordinates, as needed, with other departments, divisions, outside agencies and the general public. .
SUPERVISION RECEIVED AND EXERCISED
Receives general supervision or direction from assigned supervisory or management personnel.
Exercises direct supervision over contractors and staff.
CLASS CHARACTERISTICS
Exercises direct supervision over subordinate maintenance positions. Receives general supervision from the Operations and Maintenance Superintendent. This position is distinguished from the O&M Superintendent in that the latter is responsible for policy-making and other managerial assignments/projects and from the facilities services staff by the greater extent of technical knowledge, more varied and complex assignments with a higher consequence of error requiring more in-depth knowledge of program areas and a higher skill level to analyze, problem solve, reach conclusions and make independent decisions and/or recommendations.
EXAMPLES OF ESSENTIAL FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
➢ Plans, assigns, supervises, inspects and reviews the work of subordinate personnel and contractors;
➢ Assists in budget development and administration;
➢ Assumes responsibility for and assists with a variety of personnel actions such as performance evaluations, training, selection, dismissals, staff development transfers and disciplinary actions;
➢ Prepares work schedules; inspects facilities that are cleaned/maintained/repaired by contractors for compliance to contract and safety hazards; ➢ Supervises and assists staff and contractors in the construction, maintenance and repair of City facilities, buildings, structures, equipment, fleet vehicles, machinery, and building support systems;
➢ Supervises, schedules and directs contract services for the division;
FACILITY SUPERVISOR
Item 8.2
Facility Supervisor
➢ Schedules, supervises, and does maintenance on equipment and tools; ➢ Oversees the development and implementation of preventive maintenance schedules; ➢ Maintains a variety of administrative records and reports; ➢ Operates Facilities Division equipment and trains subordinates in the safe handling and operation of equipment;
➢ Oversees and enforces proper safety precautions and use of personal safety equipment
MINIMUM QUALIFICATIONS
Education: Equivalent to the completion of the twelfth (12th) grade Experience: Five (5) years of increasingly responsible experience in facilities maintenance or related field including two years working in an administrative or lead worker capacity.
Knowledge of: Methods, materials, procedures, and equipment used in the general construction, repair, and maintenance of facilities; Principles and techniques of supervision; Purposes and uses of a variety of equipment, power tools, hand tools, and vehicles used in facility construction and maintenance; Practices and procedures of building maintenance; Federal and State regulations governing facilities; Building Code requirements; Contracting and subcontracting practices and procedures; Safety principles, practices, and procedures; Operation, mechanics, and maintenance of heating and cooling systems; Fundamentals of carpentry, plumbing, cement, electrical, key systems and machinery work.
Ability to: Supervise, schedule and review the work of others; Estimate materials and equipment, time, and resources required to accomplish division projects; Operate a variety of hand and power tools, equipment, and vehicles; and utilize testing equipment; Train, direct and operate in the use of heavy power driven equipment used in facility construction and maintenance; Read and interpret plans and specifications; Perform a variety of construction, maintenance, and repair tasks related to facilities; Communicate clearly, orally and in writing; Keep records accurately and neatly; Use and operate personal computer, related software and peripheral equipment; Establish and maintain cooperative working relationships with the public, contractors, vendors and employees.
Physical and Mental Requirements: Hearing and speaking to exchange information and make presentations; Seeing to read a variety of materials; Dexterity of hands and fingers to operate a computer keyboard; Sitting for extended periods of time; Walking while conducting field visits and construction site inspections; Reaching overhead, above the shoulders and horizontally; Bending at the waist, kneeling or crouching; Lifting, carrying, pushing or pulling heavy objects as assigned by the position.
Environmental Elements: Employees partly work in an office environment and partly work in and around public works infrastructure and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes.
Employees may interact with upset staff and/or public and private representatives, and contractors in interpreting and enforcing departmental policies and procedures.
Item 8.2
CITY OF MOUNTAIN HOUSE
FINANCIAL MANAGEMENT MANUAL
Item 8.2
Adopted 07/01/2024; Update Adopted 06/11/2025 2
Section 100
INTRODUCTION
Overview...........................................................................................................................................100 Internal Control Concepts .................................................................................................................110 Risk Assessment ...........................................................................................................................120 Section 200
PURCHASING AND CASH DISBURSEMENTS
Purchasing.........................................................................................................................................210 California Uniform Public Construction Cost Accounting Act ........................................................220 California Uniform Public Construction Cost Accounting – Approved Contractors List Procedure ...........................................................................................................................230 Ethical Standards of Conduct............................................................................................................240 City Credit Cards ..............................................................................................................................250 Accounts Payable and Cash Disbursements ..................................................................................260 Section 300
TRAVEL POLICIES AND PAYROLL SYSTEM AND PROCESSING PROCEDURES Travel Policy.....................................................................................................................................310 Current Mileage Reimbursement Rate ..............................................................................................320 Payroll System and Processing .........................................................................................................330 Section 400
CAPITAL ASSETS AND INVENTORY MANAGEMENT
Capital Asset Accounting .................................................................................................................410 Contributions/Dedications of Capital Assets ....................................................................................420 Inventory of Capital Assets...............................................................................................................430 Surplus Property................................................................................................................................440 Section 500
BUDGET AND FUND ACCOUNTING POLICIES AND PROCEDURES
Budget Policies and Assumptions.....................................................................................................510 Budget Preparation Timeline and Procedures...................................................................................530 Budget Adjustments and Amendments.............................................................................................540 Fund Structure and Creation and Closure of Funds ..........................................................................550 Fund Balance Policy Under GASB Statement 54.............................................................................560 Debt Management Policy .................................................................................................................570 Interfund Loan Policy .......................................................................................................................580 Item 8.2
Adopted 07/01/2024 3
Section 600
BANK, TREASURY, AND INVESTMENT POLICIES
Investment PolicyCash and Investments..........................................................................................610 Investment Policy for Special Deposits............................................................................................620 Bank, Investment and County Treasury Reconciliation...................................................................630 Imprest Cash Checking Account Policy ...........................................................................................640 Section 700
RECEIVABLES, BILLING, COLLECTION, AND CASH RECEIPTING
Utility Billing and Collection ...........................................................................................................710 Section 800
NOTES AND MEMORANDA
Item 8.2
4 The purpose of this manual is to provide a guide on the conduct of the City's financial affairs.
As described in the Preface, this manual is divided into six Sections:
• Introduction (100)
• Purchasing and Cash Disbursements (200)
• Travel Policies and Payroll System and Processing Procedures (300) • Capital Assets and Inventory Management (400)
• Budget and Fund Accounting Policies and Procedures (500) • Bank, Treasury, and Investment Policies (600)
• Receivables, Billing, Collection, and Cash Receipting (700) • Notes and Memoranda (800)
Each of these sections begins with an overview that further describes its purpose and organization.
INTRODUCTION
Item 8.2
5 Section 115
Faithful stewardship of the public assets and resources that have been entrusted to us is the responsibility of all City employees. Assuring appropriate internal control over the use of these assets is one of the key tools available to us in meeting this responsibility. The following is an outline of internal control concepts.
PURPOSE OF INTERNAL CONTROLS
The objective of internal control systems is to provide reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and to ensure that transactions are properly recorded to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived, and that estimates and judgments are required to be made by management in evaluating these costs and benefits.
INTERNAL CONTROLS ARE FOR THE EMPLOYEE
By establishing procedures that reduce the opportunity for employees to make unauthorized transactions, the City protects employees from unwarranted suspicions when unusual events or trends are identified.
STANDARD INTERNAL CONTROLS
The three most common types of internal controls are using and documenting standard operating procedures; formalizing approval authorizations; and separating duties. None of these approaches in themselves can guarantee the appropriate use of City assets at all times, but they represent a reasonable effort to reduce the opportunity for misuse of City assets.
SEPARATION OF DUTIES
Of the three approaches noted above, "separation of duties" is the most common internal control methodology by ensuring that no one individual has total control over an accounting transaction.
For example, the responsibility for the purchasing/disbursement function would ideally be segregated between separate departments or individuals as follows:
• Purchasing (authorization to acquire)
• Receiving (approval to pay)
• Accounting (disbursement)
However, no system of internal control based on separation of duties will be successful if there is collusion between parties. In addition, any employee who is so inclined may identify methods of misusing assets. However, this should not deter an organization from establishing reasonable controls to reduce the opportunity and temptation to misuse City assets.
INTERNAL CONTROL CONCEPTS
Item 8.2
6 Section 120
Introduction
A strong system of internal control must respond to changes in the City’s operations that inevitably occur as time progresses. The best designed set of procedures for today may be deficient next year when circumstances either within or outside the City create new risks that require modifying the system of internal control to effectively address them. Other procedures that were needed in the past may no longer be needed. Through an effective risk assessment process, the City intends to respond to changing circumstances and ensure the City’s system of internal control remains robust and up-to-date.
Triggers for Risk Assessment
Events that indicate the City’s risks may have changed and that risk assessment is needed may include the following:
• New revenue sources.
• Offering of new services or discontinuation of services previously performed. • Significant changes in revenue or expenses in a particular area, especially changes that increase the complexity of accounting for transactions. • Turnover in key internal control positions.
• Understaffing, which could lead to incompatible control duties being assigned to one person or important control responsibilities being neglected due to heavy workload. • New legislation exposing the City to heightened legal liability or risk of loss. • Technological advances that impact the City’s risk.
• Publication of new accounting principles impacting the City. • Findings or comments from the external auditor.
• Decline in the broader economy, which may subject the City to both internal and external pressures
Procedure
At least annually, and more frequently as conditions demand, the Finance Department will consider whether any of the above triggers have caused changes in the City’s risks and determine whether changes in procedures may be necessary to ensure that the system of internal control continues to effectively serve its purpose of providing reasonable assurance that the financial statements are fairly stated in accordance with generally accepted accounting principles and the City’s assets are appropriately safeguarded.
The Finance Department will also conduct a comprehensive risk assessment on a periodic basis where the risks related to each significant class of transactions and balance sheet account will be identified, and operating procedures will be evaluated to determine the extent to which those risks are mitigated.
RISK ASSESSMENT
Item 8.2
7 Section 200
OVERVIEW
Along with the following documents, the policies and procedures set forth in this chapter form the City's purchasing system:
• Ordinance Chapter MH-2 (No. 2024-XX)
• Sections 20680 -– 20683 and 22150-22154 of the California Public Contract Code • Title 14 of the California Code of Regulations Section 18993.3(b) The purpose of this chapter is to guide staff members in purchasing goods and services on behalf of the City by establishing responsibilities and authorization levels and setting forth the policies and procedures that govern purchasing activities.
These guidelines are not intended to address every issue, exception or contingency that may arise in the course of purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources.
PURCHASING SYSTEM OBJECTIVES
This system has been developed in order to achieve the following objectives:
• Secure goods and services at the lowest cost possible commensurate with quality requirements.
• Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City.
• Ensure competition and impartiality in all purchasing transactions to the maximum extent possible.
• Standardize procedures where appropriate to ensure that organization-wide policies and goals are achieved.
• Maintain department responsibility, initiative and flexibility in evaluating, selecting and purchasing goods and services.
• Implement simple yet effective internal control procedures that appropriately support planning, maximize productive use of public funds and protect City assets from unauthorized use.
• Comply with applicable state law requirements relating to the purchase of recycled-content paper.
PURCHASING AUTHORITY
The City’s Code of Ordinances delegates purchasing authority to the City Manager as well as any other representatives designated by her or him. The City Manager designates the Administrative Services Director as Purchasing Agent with authority over all City purchasing activities pursuant to the City’s Code of Ordinances. Purchasing responsibilities include:
• Developing and prescribing such administrative policies, forms and files as may be reasonably necessary for the internal management and operation of City purchasing policies and procedures.
PURCHASING
Item 8.2
8 • Purchasing or contracting for supplies, equipment, services and construction projects as required by the operating departments in accordance with City purchasing policies and procedures.
• Negotiating and recommending execution of contracts.
• Procuring needed quality in goods and services at minimum expense. • Ensuring as full and open competition as possible on all purchases. • Developing and maintaining department awareness of purchasing and pricing principles, marketing conditions and new products.
• Inspecting supplies and equipment delivered, as well as contractual services performed, to determine their conformance with the specifications set forth in orders and contracts; and, in this connection, having the authority to require chemical, physical or other tests of samples submitted with quotations or bids, or of delivery samplings, which may be necessary to determine quality and conformance with specifications.
• Establishing procedures for, and assigning duties to, staff engaged in receiving, storing and issuing purchased supplies, ensuring that supply levels are consistent with usage requirements.
• Facilitating the transfer of surplus or unused supplies and equipment among departments as needed.
• Selling or exchanging surplus supplies and equipment, provided that they cannot reasonably be used by any department, in compliance with the provisions of Section 440 of this Manual.
PURCHASING ORGANIZATION
Department Heads within the City will be responsible for identifying needs and preparing proposed purchases for the appropriate level of review by the Administrative Services Director or the Finance Department staff member(s) to whom the Administrative Services Director may delegate purchasing authority. The Administrative Services Director or designee will review and approve or reject proposed purchases or, if the purchase meets certain thresholds as outlined below, forward the proposed purchase to the City Council for final approval.
PURCHASING SYSTEM OVERVIEW
Regardless of the type of item or service being acquired, virtually every purchase transaction goes through seven distinct stages in varying degrees:
• Assessing and determining resource needs.
• Developing specifications.
• Soliciting and evaluating quotations, bids or proposals. • Selecting the best proposal.
• Awarding the contract or purchase order and authorizing work to proceed. • Receiving and inspecting goods or services to ensure they conform with specifications. • Paying the vendor when contract terms have been met.
RECYCLED-CONTENT PAPER PRODUCTS AND RECYCLEDCONTENT PRINTING AND WRITING PAPER For the purposes of this Manual, the following definitions shall apply:
“Paper Products” shall include, but are not limited to, paper janitorial supplies, cartons, Item 8.2
9 wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR 18982(a)(51).
“Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR 18982(a)(54).
"Recyclability" means that the Paper Products and Printing and Writing Paper offered or sold to the City are eligible to be labeled with an unqualified recyclable label as defined in 16 CFR 260.12 (2013).
“Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper” means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the Public Contract Code, and as amended.
If fitness and quality of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of the City shall purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever the total cost is the same or a lesser total cost than non-recycled items or whenever the total cost is no more than five percent (5%) of the total cost for the non-recycled items, consistent with the requirements of the Public Contract Code, Sections 22150 through 22154 and Sections 12200 and 12209, as amended.
All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to the City shall:
1. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non-recycled item, available at no more than five percent (5%) of the total cost for non-recycled Paper Products.
2. All vendors providing printing services to the City via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as amended by Public Contract Code Section 12209.
3. Only provide Paper Products and Printing and Writing Papers that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
4. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City.
This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
5. Certify in writing, under penalty of perjury, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
6. Provide records to the Administrative Services Director or designee of all Paper Products and Printing and Writing Paper purchased from the vendor within thirty (30) days of the purchase Item 8.2
10 (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Sections 4 and 5 above for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or non- Recycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or Recycled-Content Printing and Writing Paper were not provided.
The Administrative Services Director or designee will be the responsible for obtaining records pertaining to procurement of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper and shall perform the following tasks to track procurement of RecycledContent Paper Products, and Recycled-Content Printing and Writing Paper:
1. Collect and collate copies of invoices or receipts (paper or electronic) or other proof of purchase that describe the procurement of Printing and Writing Paper and Paper Products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of City’s documentation of its compliance with 14 CCR 18993.3.
2. Compile an annual report on the City’s direct procurement, and vendor/other procurement on behalf of the City, of Recycled-Content Paper Products, and Recycled- Content Printing and Writing Paper, consistent with the recordkeeping requirements contained in 14 CCR 18993.4 for Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper procurement. This report shall be made available to the City’s designee responsible for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements) pursuant to 14 CCR Division 7, Chapter 12, Article 13. The procurement report shall also be shared with the City’s Council annually as evidence of the implementation of this Manual.
REQUIREMENTS BY TYPE AND AMOUNT OF PURCHASE
The type of purchase as well as its estimated cost determine the formality with which each stage is completed and documented. Payments made by the City to outside parties (excluding employee payroll) may generally be classified into the following categories:
Employee reimbursements and travel costs. Employee reimbursements for travel costs incurred on City business and travel costs paid directly by the City are subject to the separate terms of the City’s travel policy and are not subject to this purchasing policy. Employee reimbursements for non-travel costs are subject to all other provisions of this policy where applicable, but ordinarily would not be for items greater than $5,000.
Credit card purchases. Credit card purchases are individually subject to the terms of this purchasing policy as well as the credit card policy. The total amount paid to the credit card company on the credit card bill is not considered a single purchase and purchases made on the City’s credit cards are considered purchases directly from the vendor initiating the credit card charge, for purposes of applying the dollar limits of this policy. Accordingly, credit card purchases in excess of $5,000 that are not in an excepted category under this policy require an approved requisition and purchase order prior to purchase, unless the requirement has been Item 8.2
11 waived by the Administrative Services Director due to a purchasing emergency, as defined later.
Utility services. Utility services include electricity, piped-in natural gas, cellular and landline telephone, Internet, water, sewer, and refuse disposal services for the City’s locations. These services are either impossible or impractical put out for bid because only one supplier provides the services for a given location, the services are provided by very large companies on an inflexible basis, or the process of soliciting bids would be of minor benefit in comparison to the cost and personnel time involved. No contracts or competitive bids are required for these services and the Administrative Services Director or designee may approve any amount needed to facilitate the operations of the City. Care should be exercised that the City is billed for service only at City locations and for costs incurred for City business.
Services delivered by San Joaquin County. Other than any approval which may be specifically required by law or ordinance, services delivered by San Joaquin County to the City do not require written contracts or competitive bidding.
Government and regulatory fees. Payments for government and regulatory fees imposed on the City by law and paid to a government agency are not “purchases” and are not subject to this policy.
Rents and leases. All rents and leases must be signed by the City Manager, if $100,000 or less, or approved by the City Council if in excess of $100,000. For all new rent or lease transactions with a total cost of more than $5,000 in any given fiscal year, the Finance Department will complete an evaluation of the proposed transaction to determine:
• Whether a purchase of the item to be rented or leased would be feasible and more financially beneficial to the City.
• Whether the item could be rented or leased from a different source more economically than the source proposed.
This analysis is not required for extensions of existing rent and lease agreements.
All rent and lease contracts must be forwarded to the Finance Department who will maintain a list of these contracts in order to comply with special accounting requirements for leasing transactions.
Long-term debt. Long-term debt is initiated according to the City’s debt management policy and generally requires the approval of the City Council. The Finance Department makes all required payments on all of the City’s properly approved long-term debt.
Construction of buildings, structures, roadways, and improvements. The City Council has adopted a resolution that subjects allows the City to use the California Uniform Public Construction Cost Accounting Act (CUPCCAA) for construction projects. All construction projects are governed by the City’s CUPCCAA Bidding and Contracting Procedure which is incorporated into this policy manual, and are not otherwise subject to the requirements of this general purchasing policy. In general, the CUPPCAA bidding and contracting procedure allows for informal contracting procedures for construction projects up to $175,000, assuming the project has been included in the City’s budget.
Change orders. After a contract has been executed with a vendor under the terms of this policy, Item 8.2
12 the City Manager may approve change orders to the contract without Council approval, if:
• The contract total, after the change order, will still fall below the threshold that would require Council approval.
OR
• The change order in question together with any previously approved change orders on the same contract increase the contract price by no more than a cumulative total of 10% of the original contract amount or $15,000, whichever is greater, and; • The change order is related to the existing contract scope, and; • The cost of the change order is reasonable and justified in writing.
Master services agreements and task orders. In some cases the City has an ongoing or frequent need for a particular kind of service such that the total amount to be expended on the service in a fiscal year will exceed the $50,000 purchasing threshold, but the service will be broken up into multiple specific tasks throughout the year as the need arises. In this case, requestors may propose a master services agreement with one or more vendors who provide the service with an agreedupon schedule of rates, a maximum not-to-exceed amount for a period of time, and a provision that work may not be performed until authorized by the issuance of a task order or similar document from the City. If the maximum amount on the proposed master services agreement exceeds the $100,000 Council approval threshold, the master agreement will be subject to the provisions of purchases exceeding $100,000 including competitive proposals/bids or a no-bid justification and approval by the City Council. However, once the master services agreement is approved, work can be authorized by the Department Head via an approved task order without additional Council approval even if the task order exceeds $100,000. In authorizing a task order, the Department Head shall determine that the proposed cost for the scope of work is reasonable under the circumstances in relation to the work being performed. Because the terms of the master services agreement provide that work may not proceed without an approved task order, budget availability will not be required and a purchase order will not be issued until a task order is issued.
The Department Head shall route all authorized task orders to the Finance Department attached to a Master Agreement Tracking Form that lists all previously approved task orders under the master services agreement in question and demonstrates that the issuance of the current task order is within the total Master Services Agreement authorized by the Council. The Finance Department may decline to process vendor invoices if the authorized task order and Master Agreement Tracking Form are not received. If the tasks are truly independent of each other, each task can be treated as a separate purchase at the requestor’s option, and a master services agreement is optional. However, if each task is treated as a separate purchase, these separate purchases will each be subject to the terms of this policy based on their dollar amounts, which could necessitate multiple competitive solicitations and/or Council approvals that would not be necessary under a master services agreement.
Onsite Services. Regardless of the amount, all onsite services require either a contract and/or a purchase order (with terms & conditions attached).
All purchases requiring a written contract. Regardless of amount, if any purchase requires a written contract (other than the standard cardmember agreement signed when making a credit card purchase or a standard purchase order form issued by the City), the proposed contract must be submitted to the Administrative Services Director or designee for review. The City has standard contract language available that has been approved by the City’s legal counsel, and any non-standard contract terms in a proposed contract should be specifically identified for the Administrative Services Director’s review. The Administrative Services Director or designee Item 8.2
13 will expedite the review of standard contracts for small purchase amounts, but for contracts containing deviations from the standard contract language or a large amount, the Administrative Services Director may decide to obtain legal review prior to approval. If approved by the Administrative Services Director or designee, the Administrative Services Director or designee will forward the contract to the City Manager with a recommendation. For construction and capital expenditure contracts up to $175,000 and all other contracts up to $100,000, the City Manager may sign without specific City Council approval of the contract. For contracts in excess of these amounts, the proposed contract must be submitted to the City Council for approval.
Purchases $5,000 or less. For administrative simplicity, purchases of individual items of physical property at $5,000 or less for each item and offsite services provided to the City at a cost of less than $5,000 do not require a written purchase order or contract and may be purchased by a Department Manager or designee inasmuch as there is budget available in an appropriate line item to pay for the product or service purchased. Although competitive bidding is not required, purchasers should exercise their judgment in making purchasing decisions that are in the best interests of the City. If a written contract is deemed necessary or appropriate, the contract must be submitted to the Administrative Services Director or designee who will expedite the request for the City Manager’s signature if the contract contains standard language. See “All purchases requiring a written contract” above for special requirements dealing with written contracts.
All other purchases of goods or off site services totaling more than $5,000 and up to $50,000.
Unless falling into one of the categories above, all purchases of goods or services totaling more than $5,000 and up to $50,000 are subject to the requirements of this paragraph. All such purchases must:
1. Have a written justification of the reasonableness of price prior to the issuance of a purchase order. Such written justification shall either describe the competing quotes or proposals obtained for the service or explain an alternative basis for concluding that the price is reasonable to the City.
2. If the architectural, landscape architectural, engineering, environmental, or land surveying services are being procured, have a written justification of the demonstrated competence and professional qualifications of the vendor.
3. Be approved in advance by the Administrative Services Director or designee. Prior to approving a purchase the Administrative Services Director or designee will verify that sufficient budget exists for the purchase.
4. Be documented on a written purchase order.
Upon approval by the Administrative Services Director or designee, the Department Head may generate the purchase order and proceed with the purchase directly if the purchase does not require a contract and the value is more than $5,000 but not more than $10,000. All purchases over $10,000 and all written contracts shall be submitted to the City Manager for signature if approved by the Administrative Services Director or designee, except for task orders under Master Services Agreements previously approved, which are discussed above.
All other purchases of goods or services in excess of $50,000 and up to $100,000. For a purchase exceeding $50,000 but not above $100,000, either a minimum of three competitive bids, proposals, or statements of qualifications, or a non-bid justification must be provided. See the “Competitive Procurement” section of this policy for further details. City employees must submit either competitive bids or a non-bid justification to the Administrative Services Director Item 8.2
14 or designee, who will review the proposed purchase for compliance with this policy and determine whether sufficient budget exists for it. Upon approval, the Administrative Services Director will forward the purchase recommendation to the City Manager. If approved, the City Manager will execute a written agreement with the vendor.
All other purchases in excess of $100,000. All other contracts exceeding $100,000 not in one of the excepted categories above must be submitted to the City Council for approval and require a minimum of three competitive bids, proposals, or statements of qualifications, or an acceptable non-bid justification (see “Competitive Procurement” in this policy). After concluding a competitive procurement or documenting a non-bid justification, the requesting employee submits documentation to the Administrative Services Director or designee as described in the “Required Documents for Purchases Section,” later. Upon approval, the Administrative Services Director will forward the purchase recommendation to the City Manager. If approved, the Administrative Services Director will schedule the proposed contract for consideration at a City Council meeting, typically no less than 3 weeks after receipt of all required documentation from the requesting department (see “Purchasing Timeframes,” later). If approved by the Council, the City Manager will sign the contract and Finance will approve the purchase requisition.
Unless exempted under the provisions above, all invoices in excess of $5,000 must be linked to a purchase order in order to be processed and paid by the Finance Department.
Splitting of invoices in order to evade purchasing policy thresholds is prohibited (see further discussion of splitting below). No City employee should make any commitment to purchase an item greater than $5,000 on behalf of the City without an approved contract or purchase order.
Employees who make any commitments to a vendor in excess of $5,000 without having a purchase order issued by the City may be held personally liable for vendor charges.
Architectural, landscape architectural, engineering, environmental, and land surveying services. In accordance with Government Code Section 4526, vendors providing architectural, landscape architectural, engineering, environmental, and land surveying services shall be selected based on demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Any competitive procurements of these services will take these factors into account. In all other respects, purchases of these services will be subject to the terms of this purchasing policy, including the thresholds identified above.
Contract end date and total vendor contract amount. All contracts will end on June 30 unless there are significant savings involved with a multiyear contract. Purchase Orders will not rollover annually unless there are extenuating circumstances and approved by the Administrative Services Director. Any contract that is approved to rollover to the new fiscal year will be included in the total vendor contract amount in the new fiscal year. The Finance Department will reject proposed purchases exhibiting any of the following indicators:
• Vendors with multiple contracts exceeding a total of $100,000 for services within a fiscal year.
• Vendors with multiple vouchers exceeding $5,000 for services within a fiscal year.
Splitting of purchases. Splitting up a purchase into smaller amounts with the intent of pulling Item 8.2
15 the purchase price of each individual component down so that all components fall below one of the thresholds defined in this policy is contrary to the objective of this policy. In practice, however, determining whether a purchase stands alone or is a split-up component of a larger purchase is a matter of judgment. The Finance Department may reject proposed purchases exhibiting the following indicators of splitting:
• Multiple contracts with the same vendor for essentially the samea similar scope of work. • Separate contracts with the same vendor for different phases of work, all of which must be performed in order for the work product to have any substantial value to the City (except in cases where the City is completing work in phases for budgetary reasons and does not have the budget available at one time to contract for all phases of the work). • Separate contracts or purchases with the same vendor for various physical goods which have limited value to the City unless goods from multiple purchases are physically assembled or combined into one or more physical items, the value of which would exceed a purchasing policy threshold.
Contract Requests and Contract Management. Contracts must be awarded and managed by the Department Manager. Outside vendors and Consultants are prohibited from awarding or managing City contracts.
CONTRACT / PURCHASE ORDER BREAKDOWN BY AMOUNT
The following table shows when a Purchase Order and/or Contract is required depending on the project cost.
Amount Type PO Required? Contract
Required?
Materials only No No
< $5000 Services, Onsite Yes Yes No
Services, Not Onsite No No
Materials only Yes No
$5,000 - $50,000 Services, Onsite Yes Yes
Services, Not Onsite Yes No
Materials only Yes Yes
>$50,000 Services, Onsite Yes Yes
Services, Not Onsite Yes Yes
WORKFLOWS FOR PURCHASING BY EXPENDITURE AMOUNT
The following table describes the purchasing process for all City purchases except travel costs, Commented [KP1]: .
Item 8.2
16 utility services, and San Joaquin County services, as defined above. Purchases subject to CUPCCAA are subject to additional requirements, as specified in the related policy.
Note: Splitting of contracts for the purpose of pulling the total contract amount below a purchasing threshold is prohibited. The Administrative Services Director may reject a proposed purchase if it is determined that contract splitting has occurred. See “Splitting of purchases,” above.
Item 8.2
17 Item 8.2
18 Item 8.2
19 Item 8.2
20 Item 8.2
21 Item 8.2
22 Item 8.2
23 Item 8.2
24 COMPETITIVE PROCUREMENT
One of the key objectives of the City’s purchasing policy is ensuring the City and its residents receive goods and services for a fair and reasonable price and that the City procures its goods and services in a fair and open manner under the circumstances. Accordingly, competitive bids, quotes, or proposals are required for purchases that exceed $50,000 unless a non-bid justification is documented and approved.
METHODS OF PROCUREMENT
The City may use 4 general methods of procurement depending on the circumstances.
Competitive Bids
• Used for goods or services when price is the primary deciding factor. • Contract is awarded to the lowest responsive and responsible bidder. • Solicitations for bids should specify the minimum qualifications for bidders. • Solicitations for bids should include sufficient details so that bid responses will be comparable.
• Shall not be used for architectural, landscape architectural, engineering, environmental, and land surveying services, as these services require an evaluation of proposer competence.
Value Procurement
• Used for goods or services when price is one among multiple objectively quantifiable deciding factors.
• Contract is awarded to the bidder who provides the overall best value to the City, which is defined as the combination of objectively quantifiable attributes that is expected to best achieve the City’s objectives for the procurement and be in the best interests of the City’s citizens.
• Value procurement may be useful when, for example,
o The quality of the good or service to be purchased makes a significant difference in value to the City.
o The experience or qualifications of the individuals to perform the proposed service makes a significant difference in value to the City, but the City wishes to consider proposals from bidders with varying levels of experience or qualifications and evaluate them in relation to price.
o The City has a substantive need for the good or service to be delivered on an expedited timeline and wishes to award preference to those bidders who can deliver more quickly. • Solicitations for bids or proposals must specify in detail the selection criteria and the relative weight of the factors to be considered in determining overall best value. • Shall not be used for projects requiring formal bidding under the City’s CUPCCAA policy, as current law on formal bids does not permit the use of this method. It may be used on informal bids subject to CUPCCAA only if the method otherwise complies with the informal bidding procedures permitted under the CUPCCAA policy and applicable law. •
Requests for Proposals
• Used for services when non-price considerations such as proposer qualifications and Item 8.2
25 competence are significant deciding factors.
• Preferred method for professional consulting services unless a request for qualifications / master services agreement will be used, as discussed below, since the selection of a professional consultant should consider qualifications. • Request for Proposals document is circulated that includes:
o A description of the scope of work
o A description of any minimum qualifications necessary for a successful proposal o Designation of a single City representative as point of contact for proposers o A description of the criteria on which the proposals will be evaluated and the relative importance of each criterion
o A requirement that proposers include references
• A selection committee of City representatives rates proposals received according to the criteria specified in the request for proposals to determine a ranking of the proposals received. • Negotiations begin with the proposer who scored the highest. If an acceptable contract cannot be negotiated with that proposer, negotiations will begin with the next-highest proposer.
Requests for Qualifications/Master Services Agreement
• Used when the City will have an ongoing need for a significant amount of a particular type of professional or specialized service that can be divided into discrete tasks. • Request for Qualifications is circulated that includes o A general description of the type of services needed by the City. o A requirement for interested firms to submit statements of qualifications demonstrating their relevant experience, competence, and billing rates that would be charged in performing the services
o Designation of a single City representative as point of contact for proposers o A description of any minimum qualifications
• A selection committee will review the received statements of qualifications and determine which proposers meet the City’s criteria for the work to be performed. • For those meeting the criteria, the City may execute master services agreements with appropriate approval by the Council that provide that the City may subsequently approve task orders with specific scopes of work with the approved vendors. No work may begin without an approved task order.
Requirements applicable to all solicitations for bids/proposals/SOQs. The following requirements apply to the solicitation of competitive bids, proposals, or statements of qualifications:
• Written solicitations for competitive bids or proposals should incorporate a clear description of the goods or services to be procured and should avoid unnecessary restrictions that may limit competition such as the specification of a particular brand name. The clarity required depends on the circumstances. In cases where the City is issuing a request for qualifications for firms to be considered for a variety of projects on an on-call list, the description will necessarily be more general.
• Solicitations should be posted on the City’s website and circulated to potential bidders/proposers and should allow sufficient time for an adequate response if appropriate given the urgency of the City’s need for the good or service. Unless the need is urgent, a minimum of 3 weeks should generally be allowed for bids/responses. • All potential bidders/proposers should be given an equal opportunity to seek clarifying and additional information about the City and the solicitation. During the time a solicitation is Item 8.2
26 under way, potential bidders/proposers should limit their contact with the City regarding the solicitation to the individual identified as the contact person for the solicitation. • A contract shall not be awarded to a proposed vendor if a City representative or employee with a conflict of interest in the procurement, such as a close family connection or a material financial interest in the proposed vendor, participated in the selection process.
Non-bid justifications. Acceptable non-bid justifications include, but are not limited to:
• The contract with the vendor has been previously put out to bid and there is either no change in cost from the previous bid price or the change is fair and reasonable in the circumstances. • The vendor provides a service that requires significant knowledge of the City’s specific operations and the potential cost of onboarding a new vendor is judged to be greater than the benefit received by competitive bidding. However, this justification may only be used to award a new contract to a vendor for a particular service if the previous contract with that vendor for the service in question had been awarded under a competitive procurement. Accordingly, a non-bid justification based on a vendor’s existing knowledge of the City’s operations may only be used once every other year if the contracts are awarded on an annual basis. After the justification is used for a particular vendor and service, a competitive procurement must be conducted before the justification can be used again.
• The good or service needed by the City is of a highly specialized nature and there are few, if any, competitors in the market to provide the good or service. • The City has recently attempted to put the service out for bid or proposals but has failed to receive at least 3 qualified proposals despite adequate circulation.
REQUIRED DOCUMENTS FOR PURCHASES
In order to ensure timely processing of all purchase requests, requestors should ensure their requests include all required documents when submitting to the Finance Department. The following describes the documents required for each purchasing level:
• Under $5,000
o No purchase order required for materials or off site services. Vendor or credit card company submits invoice for payment under normal payment process. • Task Orders Under Master Services Agreements
o Task order signed by Department Head.
o Justification of the reasonableness of price.
o Master Agreement Tracking Form listing all task orders approved under the master services agreement to date and demonstrating that the current task order does not cause the total to exceed the agreement amount.
• $5,000-$50,000
o Requisition identifying the items to be purchased, vendor, and proposed pricing or proposed contract signed by vendor.
o Identification of any non-standard contract language requested. o Written justification that the price offered by vendor is reasonable or that the vendor is the only one reasonably available to provide the good or service. o For architectural, landscape architectural, engineering, environmental, and land surveying services, a written justification of the demonstrated competence and professional qualifications of the vendor for the work to be performed. o GL Account Code to be charged with the expense.
o Up-to-date insurance certificates from the vendor.
o Current valid business license for the vendor.
Item 8.2
27 o New vendor packet if applicable.
• Over $50,000
o Requisition identifying the items to be purchased, vendor, and proposed pricing or proposed contract signed by vendor.
o Identification of any non-standard contract language requested. o Copies of 3 competing quotes or proposals for the product or service or a non-bid justification.
o For architectural, landscape architectural, engineering, environmental, and land surveying services, a written justification of the demonstrated competence and professional qualifications of the vendor for the work to be performed, if not otherwise addressed in the proposal or bid material.
o GL Account Code to be charged with the expense.
o Up-to-date insurance certificates from the vendor.
o Current valid business license for the vendor.
o New vendor packet if applicable.
o Additional item specified below if the contract exceeds $100,000 or $175,000 if it is a capital expenditure or construction contract.
• Over $100,000 ($175,000 for capital expenditures and construction contracts) o All of the requirements for purchases over $50,000 above, plus:
o Draft staff report to be presented to the City Council explaining the purchase.
PURCHASING TIMEFRAME
Except in cases of emergency at the discretion of the Administrative Services Director, no purchase may be made nor may work commence for purchases of $5,000 or more until the Finance Department approves a requisition and the requestor issues a Purchase Order using Tyler Incode under this policy. Unless the total purchase is under $5,000 or an exception is granted, invoices from vendors showing work performed or goods shipped prior to the purchase order date will be returned unpaid.
Except in cases where there are complications or problems with the proposed purchase, the Finance Department will issue Purchase Orders under the following timelines, if the submission by the requestor includes all required information and the purchase is approved:
• Purchases of $5,000 to $100,000 ($175,000 for capital expenditure and construction contracts): Decision on requisition 5 business days after receipt of the proposed purchase from the requestor.
• Purchases in excess of $100,000 ($175,000 for capital expenditure and construction contracts): Approved requisition 20 business days after receipt of the proposed purchase from the requestor, if the request is submitted exactly 3 weeks prior to a scheduled City Council meeting and the Council, Finance, the City Manager, and any other authority approve the proposed purchase. Purchase requests submitted less than 3 weeks prior to a Council meeting will be delayed until the next Council meeting, unless an exception is approved by the Administrative Services Director.
Emergencies. From time to time, the City may encounter a purchasing emergency. A purchasing emergency is defined as a situation in which a purchase is needed immediately and adherence to the normal purchasing timelines as defined above is expected to result in injury to persons or Item 8.2
28 property or substantial additional cost to the City. However, the Administrative Services Director may exclude situations from the definition of a purchasing emergency if the situation was known to City personnel far enough in advance for those personnel to have addressed the situation within the normal purchasing policy timelines. Requestors who become aware of purchasing emergencies should notify the Administrative Services Director as soon as they become aware of the emergency, as failure to do so may result in emergency claims being denied. In cases of purchasing emergency, the Administrative Services Director may expedite purchasing timelines, waive requirements, and/or schedule additional City Council meetings as necessary to address the emergency.
INSURANCE REQUIREMENTS
For any onsite services, the City will require, as a condition of contract, that the vendor maintain the following insurance coverages if the City is exposed to risk in these areas:
• For contracts where work will be done on or to the City’s property, commercial general liability coverage with a limit of $1,000,000 or more per occurrence and in the aggregate. • For contracts involving professional services where an error or omission in the service could result in significant loss to the City, professional liability coverage with a limit of $1,000,000 or more per occurrence and in the aggregate. • For contracts for services with vendors who have employees, worker’s compensation and employer’s liability coverage in the amount statutorily required.
PURCHASE ORDERS AND REQUIREMENTS FOR VENDOR
INVOICING
Requestors will issue all purchase orders under this policy from the Tyler Incode system after Finance approves the purchase requisition, which will result in the reduction of available budget if the purchase is to be made from budgeted funds (purchases made from developer funds are not budgeted).
Each purchase order shall be issued with an expiration date which, in most cases, should not be beyond the end of the fiscal year, though exceptions may be approved on a case-by-case basis by the Administrative Services Director or designee. Any invoice for work performed or goods delivered after the expiration date of a purchase order will be returned unpaid unless an exception is approved by the Administrative Services Director or designee. City employees needing to extend the expiration date on a purchase order should contact the Finance Department to request the extension prior to the expiration date.
Each purchase order shall contain the following requirements for vendor invoicing:
• Vendor invoices must include the purchase order number. • Vendor invoices should be submitted to a centralized e-mail address maintained by the Finance Department or by mail to the attention of Accounts Payable at the City’s Office. • Vendor invoices for work performed or goods delivered within a fiscal year must be submitted within 45 days of the end of the fiscal year in which the work was performed.
Item 8.2
29 Section 220
Projects from $0 - $45,000
For all construction jobs from zero ($0) up to and including forty-five thousand dollars ($45,000) City of Mountain House shall utilize the following procedures.
1. The Public Works Department will have the discretion to select from the list of prequalified contractors, any contractor they deem to be in the best interest of the City, and have a written quote submitted from them.
2. Upon selection of the contractor as well as the submission of their quote, administrative staff will draft and have the contractor execute the “CONTRACTOR – Standard Agreement.”
3. Contractor will be required to submit current W-9, business license and Certificate of Insurance.
4. Administrative staff will submit proposed contract to the Finance Department and obtain the approval of the Finance Department that the contract is within the adopted budget. The contract should be submitted at least 5 business days prior to the desired start date for the work.
5. If approved, the Administrative Services Director or designee will obtain City Manager signature/approval upon receipt of executed contract from vendor.
6. Once all required documents have been received, and the Agreement is fully executed, administrative staff shall return to the contractor a fully executed copy of the Agreement along with the Purchase Order. This combination of documents will be considered the Notice to Proceed, contingent upon direction by the Public Works Department
7. Administrative staff will submit the required PWC-100 through the DIR website for construction projects in excess of $25,000 and maintenance projects in excess of $15,000.
8. Contractor is required to submit payment bond for all projects in excess of $25,000 prior to commencement of work.
Projects from $45,001 - $175,000
For all jobs from forty-five thousand and one dollars ($45,001) through one hundred seventy five thousand dollars ($175,000) City of Mountain House shall utilize the following “Informal Bidding” procedures.
1. The Public Works Department will issue a notice to pre-qualified contractors inviting them to provide estimates by the specified date and time as follows:
a. Only those pre-qualified vendors within the applicable trades will be notified. b. “Notice Inviting Informal Bids” shall be delivered to pre-qualified vendors at least 14 calendar days in advance of submission deadline. (exhibit A) i. The notice must describe the project in general terms, state the time and place for submission of bids and describe how to obtain more detailed information about the project.
c. All projects will be assigned a “Job #” that is unique to that project.
2. The lowest submitted estimate shall be awarded the contract by the City. a. Upon award, the contractor will be required to execute the “CONTRACTOR – Standard Agreement.”
b. Upon award, the contractor will be required to submit current W-9, business license and
CONSTRUCTION BIDDING AND CONTRACTING UNDER CUPCCAA
Item 8.2
30 Certificate of Insurance.
c. The proposed contract will be submitted to Finance to verify the contract is within the adopted budget. The contract should be submitted at least 5 business days prior to the desired start date for the work.
d. If approved, the Administrative Services Director or designee will obtain City Manager signature/approval upon receipt of executed contract from vendor. e. Once all required documents have been received, and the Agreement is fully executed, administrative staff shall return to the contractor a fully executed copy of the Agreement along with the Purchase Order. This combination of documents will be considered the Notice to Proceed, contingent upon direction by the Public Works Department. f. Administrative staff will submit the required PWC-100 through the DIR website. g. Contractor is required to submit payment bond prior to commencement of work.
3. In the event that all bids received exceed $175,000, and the City determines that the cost estimate was reasonable, the City may award the contract up to $187,500 to the lowest responsible bidder. The contract must be approved by Resolution of the Council.
Projects in excess of $175,000 shall be let to contract by formal bidding procedures.
Change orders. After a contract has been executed with a vendor under the terms of this policy, the City Manager may approve change orders to the contract without Board approval, if:
• The contract total, after the change order, will still fall below the threshold that would require Council approval.
OR
• The change order in question together with any previously approved change orders on the same contract increase the contract price by no more than a cumulative total of 10% of the original contract amount or $15,000, whichever is greater, and; • The change order is related to the existing contract scope, and; • The cost of the change order is reasonable and justified in writing.
Splitting of purchases. Splitting up a purchase into smaller amounts with the intent of pulling the purchase price of each individual component down so that all components fall below one of the thresholds defined in this policy is contrary to the objective of this policy. In practice, however, determining whether a purchase stands alone or is a split-up component of a larger purchase is a matter of judgment. The Finance Department may reject proposed purchases exhibiting the following indicators of splitting:
• Multiple contracts with the same vendor for essentially the samea similar scope of work • Separate contracts with the same vendor for different phases of work, all of which must be performed in order for the work product to have any substantial value to the City (except in cases where the City is completing work in phases for budgetary reasons and does not have the budget available at one time to contract for all phases of the work) • Separate contracts or purchases with the same vendor for various physical goods which have limited value to the City unless goods from multiple purchases are physically assembled or combined into one or more physical items, the value of which would exceed a purchasing policy threshold
Emergencies. In cases of emergency where repairs or replacements are needed immediately and the delay caused by following the procedures under this policy could cause significant harm, the Item 8.2
31 Administrative Services Director should be notified immediately. The Administrative Services Director will consult with the City Manager, who, if delegated authority pursuant to Public Contract Code section 22050(b)(1) may let the contract without bidding procedures provided that the action is reported to the City Council no later than 7 days after the action is taken, or 14 days if at the next regularly scheduled meeting. The report shall include reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency. The Council must then vote by a 4/5 vote to continue the action if warranted. If the Council has not delegated this authority to the City Manager, the Council itself must cause to be noted in the minutes to a meeting the reasons the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency and must then approve the action by a 4/5 vote before a contract may be let outside of the competitive bidding process.
Item 8.2
32 CITY OF MOUNTAIN HOUSE
NOTICE INVITING INFORMAL BIDS
NOTICE IS HEREBY GIVEN that City of Mountain House, will accept sealed Bids for award of a Contract for project # .
The Project requires the following license(s) . The project is anticipated to be calendar days.
Bids are due at , on . It is each Bidder’s sole
responsibility to ensure their bid is timely delivered and received at the locations designated below. Any bid received after the scheduled closing time for receipt of bids shall be returned to the bidder unopened.
City of Mountain House, Public Works Department, 251 E. Main Street, Mountain House, CA 95391.
CUPCCAA: This project is being let in accordance with the California Uniform Public Construction Cost Accounting Act (“CUPCCAA) set forth in Public Contract Code section 22000 et seq. Bidders shall comply with any requirements set forth in the CUPCCAA including all guidelines and requirements in the current California Uniform Construction Cost Accounting Commission Accounting Policies and Procedure Manual.
Qualified Contractor’s List for Calendar Year: Bids will not be accepted if a Contractor has not been added to the Qualified Contractor List for the current calendar year. The application to be considered for the list is available on the City website (see link below). Incomplete applications will be returned to the contractor. Contractor must submit a complete application 5 days prior to the bid opening. https://www.mountainhouseca.gov/departments/public-works-department/bid-opportunities http://www.mountainhouseca.gov/about-mountain-house-/public-works-department/bid-opportunities Mandatory Job Walk and/or Pre-Bid Conference: on at
. Any Contractor bidding on the Project who fails to
arrive on time, sign in and attend the entire mandatory job walk and/or conference will be deemed a nonresponsive Bidder and will have their Bid returned unopened.
To obtain Bid Documents: The bid documents will be available beginning 8:00 a.m. on the City website (see link below). All addenda will be available to interested Contractors, and Bidders responsible to check the website for addenda issued prior to submitting their bids. https://www.mountainhouseca.gov/departments/public-works-department/bid-opportunities http://www.mountainhouseca.gov/about-mountain-house-/public-works-department/bid-opportunities For additional information, please contact via email or via phone .
Prevailing Wages: This is a public work project. The Contractor and all Subcontractors (of any tier) must be currently registered and qualified to perform public work in accordance with Labor Code section 1725.5.
Unless specifically exempted by the Labor Commissioner for this Project, the Contractor and all Subcontractors shall furnish certified payroll record as required pursuant to Labor Code section 1776 directly to the Labor Commissioner in accordance with Labor Code 1771.4 on at least a monthly basis (or more frequently if required by the City or Labor Commissioner) and in a format prescribed by the Labor Commissioner for this Project, monitoring and enforcement of the Prevailing Wage laws and related requirements will be performed by the Labor Commissioner/Department of Labor Standards Enforcement (DLSE).
Item 8.2
33 END OF NOTICE
Item 8.2
34 Section 230
City of Mountain House shall create and maintain a list of prequalified Contractors for all transactions between zero ($0) and one hundred seventy-five thousand dollars ($175,000) in the following manner. (exhibit A)
1 Annually in November, the Public Works administrative department shall create and maintain a list of Prequalified Contractors as follows.
a. A written notice shall be published in all construction journals specified by the CUPCCAA Commission, as well as any other locations that the Public Works Department deems appropriate. (exhibit B)
b. The City’s publication shall invite all licensed contractors to submit their prequalification application to Public Works administration department. (exhibit C) c. The Public Works Department will review contractors that meet predetermined State and City acceptance criteria for inclusion on the list of qualified bidders for each calendar year.
i. Acceptance criteria: Contractor must have valid CSLB license and be currently registered with the DIR as a Public Works Contractor.
d. This list of contractors will be identified according to categories of work. 2 At the completion of the calendar year, the list will be deemed completed, and a new list will be prepared in the same manner to begin on January 1st of the next calendar year. 3 Contractors may at any time during a calendar year request to be added to the list of prequalified contractors.
Construction Journals to be notified, as specified by the Commission:
1. Construction Billboard
(Ebidboard) 11622 El Camino
Real, #100
San Diego, CA 92130
Phone: 800-479-5314
Email:
[email protected]
Website: www.ebidboard.com
2. Dodge Data & Analytics
830 Third Avenue, 6th
Floor New York, NY
10022
Phone: 877-784-9556
Email:
[email protected]
Website: www.construction.com
3. Builders Exchange of
Stockton 7500 West Lane
Stockton, CA 95210
209-478-1000
Email:
[email protected]
Website: www.besonline.com
4. Valley Builders Exchange,
Inc. 1118 Kansas Avenue
Modesto, CA 95351
Phone: 209-522-9031
Email: [email protected]
Website:
www.valleybx.com
Updated 4/18/18 kg
CONSTRUCTION CUPCCAA CONTRACTORS LIST PROCEDURE
Item 8.2
35 EXHIBIT A
City of Mountain House
CUPCCA Contractor List
Updated 04/19/2018
Company Address Contact Phone # Email License Number License Classes Expires ABC Construction 111 Main Street
Tracy, CA 95376
John Doe 209-833-1111 [email protected]
123456
A (General Engineering Contractor),
C-10 (Electrical Contractor)
4-09-2019
Do Right Concrete 123 First Street
Livermore, CA 94550
Dudley Doright 925-333-9898 [email protected] 654321 A (General Engineering Contractor), B (General Building Contractor), C-8 (Concrete Contractor)
12-31-2018
Item 8.2
36 EXHIBIT B
CITY OF MOUNTAIN HOUSE
California Uniform Public Construction Cost Accounting Act (CUPCCAA) Notice Inviting Interested Contractors for the 2018 Informal Bid List In accordance with the State of California Uniform Public Construction Accounting Commission, City of Mountain House (“City”) is inviting all interested licensed contractors to submit their company for inclusion on the City’s Informal Bidding Contractors List for the calendar year of 2018.
Per California Public Contact Code 22032, any Public Works Project that is estimated to be below
$175,000 is subject to the Informal Bidding Procedures set forth by the State of California Uniform Construction Cost Accounting Commission. All trade categories are subject to Informal Bidding Procedures.
Contractors that are interested in being on the 2018 Bidding Contractors List are required to have a current State Of California Contractors license in the appropriate classification and are subject to verification through the Contractors State License Board.
Additionally, pursuant to SB 854, no contractor or subcontractor may be listed on a bid for a public works project unless registered with the Department of Industrial Relations (DIR) and no contractor or subcontractor may be awarded a contract for a public works project unless registered with the DIR per California Labor Code section 1725.5. http://www.dir.ca.gov/PublicWorks/PublicWorks.html Licensed contractors interested in being placed on the City’s Informal Bidding Contractors List must complete the City’s “Contractor’s Pre-Qualification Application for the CUPCCAA Informal Bidding Process”. This form may be obtained by visiting the City’s website located at https://www.mountainhouseca.gov/departments/public-works-department http://mountainhouseca.gov/about-mountain-house/public-works-department, and should be submitted via email to: [email protected]
If you need additional information, you may visit the City’s website at https://www.mountainhouseca.gov/departments/public-works-department http://mountainhouseca.gov/about-mountain-house/public-works-department or direct questions via email to: [email protected] or via phone 209-831-5617.
Item 8.2
37 EXHIBIT C
CITY OF MOUNTAIN HOUSE
CONTRACTOR'S PRE-QUALIFICATION APPLICATION FOR THE CALIFORNIA UNIFORM
PUBLIC CONSTRUCTION COST ACCOUNTING ACT INFORMAL BIDDING PROCESS
THE CONTRACTOR LISTED BELOW REQUESTS TO BE INCLUDED IN C I T Y O F MOUNTAIN HOUSE'S QUALIFIED CONTRACTOR'S LIST TO RECEIVE NOTICE INVITING INFORMAL BIDS:
Name of Company:
Address:
Telephone: Fax:
Email: Attn:
CA Contractor's License No: Classifications:
DIR Registration No: DIR Expiration Date:
GENERAL ENGINEERING (“A”) AND/OR GENERAL BUILDING (“B”) CONTRACTORS SHOULD
SPECIFY THOSE CATEGORIES OF WORK IN WHICH THEY HAVE A SPECIALIZED KNOWLEDGE
AND SKILL, AND IN WHICH THEY WOULD BE INTERESTED IN PARTICIPATING IN AN INFORMAL CONTRACTING PROJECT WITH THE CITY OF MOUNTAIN HOUSE.
SPECIALIZED CATEGORIES OF WORK
APPLICATION CERTIFICATION:
I CERTIFY THAT TO THE BEST OF MY KNOWLEDGE, THE ELEMENTS OF INFORMATION PROVIDED ABOVE ARE ACCURATE AND TRUE, AS OF THIS DATE. I AM PROPERLY LICENSED AND SKILLED TO PERFORM THE ABOVE WORK AND AM ABLE TO SECURE BONDS TO PERFORM THE WORK. MY COMPANY SHALL COMPLY WITH ALL CITY, STATE AND FEDERAL REQUIREMENTS.
PRINT NAME TITLE SIGNATURE
Incomplete applications will not be accepted. Please complete application and return to:
City of Mountain House., Public Works Dept., 251 E. Main St., Suite 100, Mountain House, CA 95391
OR SUBMIT VIA EMAIL: [email protected]
Item 8.2
38 Section 240
OVERVIEW
The purpose of this policy is to set forth the ethical standards of professional behavior expected of all officials and employees conducting purchasing activities on behalf of the City.
STANDARDS OF CONDUCT
Every employee or official engaging in purchasing activities on behalf of the City is required to employ the following standards of conduct:
• Consider, first, the interests of the City in all transactions. • Carry out the established policies of the City.
• Buy without prejudice, seeking to obtain the maximum value for each expenditure of public funds.
• Subscribe to and work for honesty and truth in buying and selling, and to denounce all forms and manifestations of commercial bribery.
• Cooperate with all organizations and individuals engaged in activities designed to enhance the development of purchasing practices.
• Respect obligations to others, and require the same respect from others for their obligations.
PROHIBITED PRACTICES
The following practices are specifically prohibited in performing purchasing activities on behalf of the City:
• Having a financial or personal beneficial interest (directly or indirectly) in any contract or purchase order for supplies, equipment, services, or projects furnished to the City. • Accepting or receiving (directly or indirectly) from any person, firm, or corporation to whom any contract or purchase order may be awarded (by rebate, gift or otherwise) any money or anything of value, or any promise, obligation or contract for future reward or compensation.
Gifts and meals received by City employees are exempt from this prohibition and permitted if the total value gifts and meals received by each employee from a single source is no more than $150 in any one fiscal year.
• Using information available to officials and employees, solely because of their City position, for personal profit, gain or advantage.
• Directly or indirectly furnishing services or information not available to all prospective bidders to any person or firm bidding on, or who may reasonably be expected to bid on, a contract with the City.
• Providing confidential information to persons to whom issuance of such information has not been authorized.
• Using a position or status in the City to solicit (directly or indirectly) business of any kind; or to purchase products at special discounts or upon special concessions for personal private use from any person or firm who sells or solicits sales to the City. • Serving the interests of any organization (either as an officer, employee, member of the City Council, or in any capacity for consideration) which transacts or attempts to transact business with the City for profit when such employee holds a City position of review or control—even though remote—over such business transactions.
ETHICAL STANDARDS OF CONDUCT
Item 8.2
39 RESPONSIBILITY
Employees. Each employee is responsible for following these practices. Violation of this policy may result in disciplinary action, termination of employment or criminal prosecution.
Department Managers. Department managers are responsible for ensuring that all employees of their department who conduct purchasing activities possess a thorough understanding of these standards of ethical conduct and prohibited practices.
Item 8.2
40 Section 250
CITY CREDIT CARDS
OVERVIEW
Purpose
These guidelines establish the City’s basic policies and procedures for using credit cards in making supply and service purchases on behalf of the City and paying for travel expenses when on City business.
City Use Only. City credit cards are for official business use only. Charging personal expenses, even if the intent is to reimburse the City later, is prohibited. Doing so may result in disciplinary action, including, but not limited to, cancellation of the credit card issued to the employee or a negative performance evaluation.
Objectives
By using credit cards instead of other payment options we:
• Reduce procurement and payment processing costs.
• Improve vendor relations by making “doing business” with the City easier. • Enhance internal control by better identifying specific employees making supply and service purchases on behalf of the City, and improving the accuracy of account distributions between programs and projects.
• Take advantage of cost-saving opportunities by purchasing on the Internet and through catalogs.
Internal Control Concerns
While credit cards provide a cost-effective alternative for purchasing supplies and services and paying for authorized travel expenditures, the potential for abuse may offset any benefits that they offer. The primary responsibility for ensuring the appropriate use of credit cards lies with each employee assigned a card. Department managers are responsible for ensuring that employees are aware of their responsibilities and for implementing appropriate review and payment procedures within their department.
Some level of risk is inherent in credit card use in conducting City business, however, there are also significant advantages. With reasonable internal controls and exercise of good judgment by cardholders, these advantages outweigh the underlying potential for abuse.
Item 8.2
41 POLICIES
• The Finance Department issues City credit cards to regular employees as approved by the department managers. Department managers may set credit card limits and “per transaction” limits at their discretion.
• Credit cards should never be used to circumvent established competitive purchasing procedures. This means no purchases for goods or services should be made in excess of the threshold amount that would otherwise require competitive bidding unless such requirements have been met.
• Credit cards may be used in paying for travel expenses. However, the City’s Travel Guidelines still apply to all such credit card payments, including the use of Travel Authorizations and per diem amounts.
• Employees will not use City credit cards for personal expenses even if the intent is to reimburse the City later. Charging personal expenses on City cards is a misuse of City funds and a serious breach of the City’s ethics policy. Doing so - even if the intent is to reimburse the City later - may result in disciplinary action, up to and including termination.
Cardholders who discover accidental personal charges on the City credit card must declare the charges and immediately reimburse the City.
Note: Including minor incidental expenses as a component part of a larger billing - such as personal telephone calls or video rentals on a hotel bill - is allowed if reimbursed at the time the credit card billing is submitted for payment.
Standard Way of Doing Business. Using credit cards is no longer a “special way” of purchasing supplies and services on behalf of the City; for many purchases, it has become the standard way of doing business. For those employees assigned City credit cards, purchasing supplies and services on behalf of the City is an integral part of their job duties; and failure to follow City policies and procedures regarding the use of City cards is no different from failure to follow policies and procedures in any other aspect of their job.
PROCEDURES
Requesting Credit Cards. Department managers should submit credit card requests to the Finance Department (via memorandum or email) to approve cardholders and set credit card limits, if so desired. The Finance Department retains the discretion to approve or deny requests for employee credit cards.
Criteria. Credit cards are only issued to regular employees. Department managers should consider the following factors in approving credit cards for their staff and setting credit limits:
• Ability to hold the employee accountable for purchases made on the card. • Recognition that delegating authority to an employee to purchase via credit card is not conceptually different from delegating authority to them to purchase from an open contract on a vendor account.
Item 8.2
42 • Frequency of use, diversity of vendors and dollar value of purchases made by the employee.
Cardholder Agreement. Before receiving a credit card, employees must sign a “credit cardholder use agreement” (Exhibit A) setting forth their obligations under this program.
No purchases in excess of $10,000. Individual purchases on a City credit card in excess of
$10,000 are not permitted unless they are in one of the excepted categories identified in the Purchasing Policy as not requiring a requisition and PO or if an exception is approved by the Administrative Services Director, as in the case of a purchasing emergency.
Timely Payment. Department managers are responsible for ensuring that each credit card statement (along with appropriate supporting documentation reconciled to the statement) is submitted to the Finance Department for payment in a timely manner. Payments must be made timely to avoid administrative charges and late fees.
Disputed Charges. Cardholders are responsible for ensuring that the vendor and issuing bank are notified immediately of any disputed charges. Departments should pay the statement in full - including any disputed amounts - to avoid finance charges and late fees; when resolved, this will result in a credit to the account on the next monthly statement.
Standard Process for Payment. The City’s standard accounts payable system is used in processing monthly credit card statements for payment. Cardholders will note the account number to be charged for each item appearing on the statement or note summary totals by account. The summary totals must tie to the total due on the credit card statement.
Supporting documentation for credit card payments should be the same as for any other accounts payable item. This means that original invoices (or receipts) along with credit card receipts must be retained and reconciled and attached to the credit card statement.
Lost or Stolen Cards. Cardholders are responsible for ensuring that the issuing bank and the Finance Department are notified immediately if the card is lost or stolen. Failure to do so may result in making the cardholder responsible for any fraudulent use of the card.
Disciplinary Action. Department managers are responsible for all disciplinary action surrounding misuse of cards, including requesting cancellation of card privileges.
Cancellation by Finance Department. Any employee card may be cancelled at the discretion of the Finance Department at any time.
Return of the Card Upon Request or Termination. Cardholders will immediately surrender their card upon request of their department manager or the Finance Department. Human Resources is responsible for retrieving the credit card when an employee separates from the City. Use of the credit card for any purpose after its surrender is prohibited.
RESPONSIBILITIES
Cardholders.
1. Determine that budget is available for the intended purchase.
Item 8.2
43 2. Determine that the purchase complies with City policies and is in the City’s best interest.
3. Obtain an approved requisition for purchases of $5,000 or more.
4. Make purchases during the month using the credit card and retain original and detailed receipts for each purchase showing the individual items purchased.
5. After receiving the credit card statement, assign each purchase to an appropriate general ledger account number in the City’s accounting system depending on the type of expense.
6. Submit the credit card detail with the original receipts to the appropriate Department Manager Finance Department for review by the deadline set by the Finance Department.
In the event that submissions are late more than once within a fiscal year, the Finance department reserves the right to terminate the card at its sole discretion.
Department Managers.
A s N e e d e d
Authorize issuance of credit cards and set credit limits; develop and implement departmental procedures to ensure that payments are appropriately reviewed and approved, processed in a timely manner and that all supporting documentation is retained, reconciled to monthly statements and attached to payment vouchers; and oversee implementation of these guidelines.
Because of the potential for late charges and the need to allow time for the Finance Department to process payment, credit card bills must be processed immediately upon receipt of the approved credit card statements by the Department Managers.
Routine Monthly Process
1. Ensure any cardholders under their jurisdiction return the credit card statement with associated receipts by the specified time each month.
2. Review the credit card statement and receipts to determine:
a. That the charges represent legitimate City expenses incurred in accordance with City policy
b. That the account coding for the transactions is correct c. That receipts are attached for all charges.
3. Sign the statement indicating the review has been completed and forward the statement to the Finance Department within 48 hours of receiving the downloaded statement from the Finance Department., in no event later than the 10th day of each month.
Finance Department.
A s N e e d e d
Obtain credit cards as requested by department managers in accordance with these guidelines; and replace lost or stolen cards.
Routine Monthly Process
1. By the 7th of each month, dDownload the credit card statements and distribute them to the cardholders for approval and account classification.
2. Review credit card statements approved by Department Managers to determine:
a. That the statement has been authorized for payment by the Cardholder and Department Manager
b. That the account coding for the transactions appear correct c. That the purchases appear to have been made in accordance with City policies
3. Process the credit card bill for payment according to the normal bill payment process.
Item 8.2
44 Because of the potential for late charges and the need to allow time for the County Auditor- Controller’s Office Finance Department to process payment, credit card bills must be processed immediately upon receipt of the approved credit card statements by the Department Managers, no later than the 10th of each month..
Human Resources. Retrieve credit cards from employees separating from the City.
SUMMARY
These guidelines cannot cover every issue, exception or contingency that may arise in using City credit cards. Accordingly, the basic standard that should always prevail is to use common sense and good judgment in the use and stewardship of City resources.
Item 8.2
45 City Credit Cards: Credit Cardholder Use Agreement Exhibit A
CITY OF MOUNTAIN HOUSE
CREDIT CARDHOLDER USE AGREEMENT
Employee: Department:
The above named employee (Cardholder) of the City of Mountain House (City) has been issued a City credit card. The Cardholder has been provided with a copy of the City's credit card policy, and hereby agrees to comply with all terms and conditions set forth therein, including but not limited to:
1. Official Use Only. City credit cards are for official City use only. Charging personal expenses on City cards is a misuse of City funds and a serious breach of the City’s ethics policy. Doing so - even if the intent is to reimburse the City later - may result in disciplinary action, up to and including termination. Minor incidental expenses as a component part of a larger billing - such as personal telephone calls or video rentals on a hotel bill - may be allowed if reimbursed at the time the credit card billing is submitted for payment.
2. Timely, Accurate and Supported Payments. Credit card payments will be processed on a timely basis, and adequate supporting documentation (such as vendor order forms, receipts, invoices and credit card receipts) will be retained for all charges and attached to the credit card statement. The cardholder must submit the credit card detail with the original receipts to Finance for review by the deadline set by the Finance Department. In the event that submissions are late more than once within a fiscal year, the Finance dDepartment reserves the right to terminate the card at its sole discretion. The cardholder agrees to assume personal liability for late fees incurred if the cardholder does not return an accounting for credit card charges by the time set forth in this policy. The cardholder also authorizes a payroll deduction from his or paycheck to cover the cost of personal charges not immediately reimbursed to the City as required under this policy.
3. Disputed Charges. The cardholder will immediately notify the vendor and issuing bank will be notified immediately of any disputed charges.
4. Lost or Stolen Cards. The cardholder agrees to notify the issuing bank and the Finance Department immediately of a lost or stolen card. Failure to do so could make the Cardholder responsible for any fraudulent use of the card.
5. Surrender Upon Request or Separation. The cardholder will immediately surrender the credit card upon retirement, termination, or upon request of the department manager or Finance Department. Use of the credit card for any purpose after its surrender is prohibited.
6. Credit Card Limit. The credit limit of this card is $ .
7. Other Restrictions. _____________________________________.
Cardholder Signature Date
Item 8.2
46 DISTRIBUTION: Original—Cardholder Personnel File Copies—Finance Department and Cardholder
RETURN OF CITY CREDIT CARD UPON SEPARATION FROM CITY EMPLOYMENT Cardholder Signature Date Human Resources Date
I HEREBY SURRENDER the credit card issued to me by the City of Mountain House to the Human Resource Department. I declare that all outstanding charges on the credit card are for official City business and will be paid through established procedures.
Item 8.2
47 Section 260
Objectives
The objectives of the City’s accounts payable and cash disbursements policy are as follows:
• City vendors are paid on time in accordance with the City’s obligations. • City vendors are paid correct amounts.
• Only authorized amounts are paid.
• City expenditures are recorded consistently in the proper GL accounts. • City correctly tracks open purchase order or contract balances and applies vendor payments against the correct purchase order or contract. • City maintains timely information about any outstanding liabilities to vendors.
Scope of This Policy
This policy addresses requirements for all cash disbursements from the City for purposes other than employee payroll, which is covered under a separate policy.
Vendor Invoice Submission Requirements
The Finance Department may delay or decline to process vendor invoices unless they meet the following criteria:
1. Vendor invoices must clearly identify the item(s) for which the City is being billed.
2. Vendor invoices must identify the time period when the physical good(s) came into the City’s ownership or the service(s) were delivered. If the invoice includes charges from multiple fiscal years, the Finance Department may require the vendor to break the charges down between fiscal years.
3. Vendor invoices must include a City Purchase Order number or contract number unless the requested payment is for:
a. An invoice of $5,000 or less
b. Credit card payments (but the cardholder should supply the purchase order number for any individual purchases on their card in excess of $5,000 unless an exception applies)
c. Employee reimbursements where no single non-travel item exceeds $5,000 d. Utility services payments as specifically defined in the purchasing policy e. Membership dues
f. Services delivered by San Joaquin County
g. Government and regulatory fees as defined in the purchasing policy h. Rents and lease payments if the lease has been appropriately approved in accordance with City procedures.
i. Long-term debt payments appropriately authorized under City procedures.
4. Vendor invoices must be mathematically accurate.
5. Vendor invoices must be submitted directly by the vendor via e-mail to the City’s invoice processing e-mail address or addressed to the attention of Accounts Payable at the City’s office and first opened in the Finance Department. The Finance Department will decline
ACCOUNTS PAYABLE AND CASH DISBURSEMENTS
Item 8.2
48 to process any invoice for payment unless it has been submitted by the vendor directly to the Finance Department as required under this policy or an exception is approved by the Administrative Services Director.
6. Vendor invoices for services performed or goods delivered during a fiscal year must be submitted to the City within 45 days of the end that fiscal year.
Cash Disbursements Without Vendor Invoices
Although the general rule is that vendor payments require an invoice in accordance with the requirements outlined above, in limited circumstances, the Finance Department may proceed with processing a vendor payment without an invoice from the vendor or with an invoice that does not meet all of the requirements above as determined by the Administrative Services Director or Finance Director. This will typically occur for well-known and routine City obligations, such as the payment of refuse disposal charges that the City collects from customers to the disposal service provider or monthly lease payments where the City has entered into a lease but does not receive invoices from the lessor. Whenever this occurs, alternate supporting documentation must be prepared by the City explaining the need for the payment and the calculation of the payment amount.
Disbursement Procedure for Payment by Physical Check
Upon the submission of an invoice meeting the above “Invoice Submission Requirements,” or if an appropriate exception is approved, the payment procedure is initiated, as follows:
1. The Finance Department will log the invoice on a pending invoice log and then forward the invoice to the responsible Department Head or designee for review within 2 business days of receipt.
2. The Department Head or designee will review the invoice and respond to the Finance Department within 7 business days of the date it is forwarded to them that the invoice is approved, approved with modifications, denied, or on hold. If the responsible department places a hold on a vendor invoice, they shall notify the Finance Department within the 7 day period following their receipt of the invoice the reasons for the hold and when they expect the hold will be resolved.
3. If the Department Head approves the invoice for payment, the Department Head or designee will sign the invoice and indicate the proper GL account coding for processing and return the invoice to the Finance Department.
4. The Finance Department will review the approved invoice for the following, returning to the Department for correction as necessary:
a. Is the person who signed or approved the invoice for payment authorized to approve invoices on this purchase order or for this GL account? b. Is the GL account coding or purchase order number assigned by the department accurate in view of the items shown on the invoice?
c. Will the invoice exceed the available balance in the purchase order or budget available for the GL account, where applicable?
d. Are any delivery or service addresses listed on the invoice for City locations, or is there a legitimate reason why a good or service would be delivered at a location other than the City’s facilities?
e. Does the invoice raise substantial concerns that the goods or services were not used Item 8.2
49 for City business?
5. If the vendor has not been previously set up (ordinarily this will only happen for invoices of $5,000 or less since vendor setup should be complete at the time of a purchase order if one is issued), the Finance Department will contact the vendor and obtain the required W9 and new vendor for information.
6. If the account coding is accurate and the vendor has been set up, the Finance Department will enter the invoice into the accounting system. Care must be exercised to ensure the invoice is entered accurately, especially in the following areas:
a. The payable date entered coincides with the date the services or goods were delivered.
b. The GL account and PO number, if applicable, correctly matches the information on the invoice.
c. The vendor invoice number is entered exactly as written on the invoice or using a standard practice developed to ensure the data entry in this field is consistent. This will help ensure that the system will reject duplicate invoices submitted for payment with the same invoice number.
7. If the invoice causes a budget overage or exceeds the amount available on the purchase order, the Finance Department will contact the Department Head and will stop further processing until a budget adjustment is processed, the purchase order value is increased, or the invoice is reassigned to another appropriate GL account or purchase order where sufficient budget exists.
8. The entered invoices that have passed the system’s internal budget check will then be reviewed by a different Finance Department employee than the one who performed the initial input for accuracy. The reviewer will consider:
a. Whether the invoice raises any substantial questions or concerns. b. Whether the payable date has been correctly entered based on the date the goods or services were delivered on the invoice
c. Whether the invoice account coding is accurate (taking into account which GL account has been used consistently to charge the item in the past, if applicable) d. Whether the invoice has been charged against the correct purchase order based on the purchase order number shown.
9. After the internal review, the Finance Department will create a data extract from the accounting system and submit it to San Joaquin County for disbursement processing in accordance with their procedures within 6 business days of receiving an approved invoice from a Department Head or designee if the invoice is approved for payment by the Finance Department. The list of disbursements sent to San Joaquin County for processing must be signed by an authorized signer designated as such by the City according to the County’s procedures.process for payment. The current authorized signers are the City Manager, Administrative Services Director, Finance Director, Accounting Manager, and City Clerk, but the authorized signers may be changed from time to time by action of the City CouncilCity Manager.
Wire Transfers from County Treasury
It is City policy that all wire transfers of City funds require the signature of two authorized individuals. The procedure for documenting and approving wire transfers from the County Treasury is as follows:
Commented [KP2]: Need to update as County no longer
processes our checks
Item 8.2
50 1. For vendor payments to be made by wire transfer, the vendor invoice or alternate documentation shall be reviewed and entered into the City’s accounting system in accordance with procedures 1-8 described above under “Disbursement Procedure for Payment by Physical Check.”
2. For wire transfers from City bank accounts the County Treasury to another bank or investment account owned by the City, if permitted, documentation supporting the dollar amount or need for the transfer is not required for City purposes. However, the creation of written wire transfer instructions and signature of two authorized individuals shall still be required to execute the transfer.
3. After successful review and approval of the obligation for payment, the Accounting Manager or another Finance Department staff member shall prepare written wire instructions to the County of San Joaquin identifying the dollar amount and bank routing information to execute the wire. Unless the wire transfer destination is another account owned by the City, the Finance Department staff member will attach the supporting invoice or alternate documentation substantiating the City’s need to make the payment (e.g. contract, legal document) and the calculation of the amount, if applicable.
4. The written wire transfer instructions must be carefully reviewed (as to the accuracy of the dollar amount and destination routing information as well as the legitimacy of the payment, where any of these apply) by two of the following:
a. City Manager
b. Administrative Services Director
c. Finance Director
d. Assistant Finance Director
e. Accounting Manager
5. The two reviewers as described above must both sign the wire transfer instructions. The signature may be physical or electronic.
6. After being signed by two authorized individuals, the Accounting Manager or designee may proceed with requesting the wire. from San Joaquin County in accordance with their procedures.
Wire Transfers from Bank or Investment Accounts Outside County Treasury It is City policy that all wire transfers of City funds require the signature of two authorized individuals. For any bank or investment accounts established by the City, the City will communicate this policy to the bank or investment firm and set up controls with those firms, where available, so that they will not accept wire transfer requests not approved by two authorized individuals.
Wire transfers to outside parties require review and approval of supporting documentation for the payment amount, destination account, and City need for the payment in accordance with the “Wire Transfers from County Treasury” policy above. The documentation of the approval of two authorized individuals may be electronic if the bank or investment firm offers a system where two different representatives of the City can log in to approve the transfer. In such case, records from the system showing the approvals may substitute for the written wire transfer instructions discussed above for wires from the County Treasury.
Commented [KP3]: No longer doing wire transfers from
County? Need to update
Commented [KP4]: No longer doing wire transfers from
County? Need to update
Commented [KP5]: Need to update
Commented [KP6]: No longer doing wire transfers from
County? Change to City or leave as is since County does have some of our funds.
Commented [KP7]: update
Commented [KP8]: update
Item 8.2
51 Year End Payables Processing
In order to accurately close the fiscal year on a timely basis, the general requirement is that vendors submit invoices for all work performed or goods delivered within a fiscal year by no later than 45 days following the fiscal year end. Exceptions may be approved by the Finance Director or Administrative Services Director.
During the period following the end of a fiscal year, the Finance Department staff will ensure that any invoices for work performed or services delivered in the prior fiscal year are appropriately posted to that year until the established cutoff time. After that time, if the Finance Department identifies any additional invoices for work performed or goods delivered in the prior fiscal year, the invoice should be brought to the attention of the Finance Director or Administrative Services Director. The Finance Director and Administrative Services director will then determine whether to pay the invoice. If they approve payment, they will log the invoice and determine the materiality of any collective late invoices for posting to the prior fiscal year during the audit process.
Item 8.2
52 Section 310
Addition to the Financial Management Manual based on material in the Personnel Policies and Procedures.
OVERVIEW
Travel on City business or individual contract business shall be by the most economical means consistent with the situation, as determined by the City Manager. The City will reimburse authorized travelers for their necessary and reasonable expenses incurred while traveling on City business.
Pre-Travel Authorization Approval Required Prior to Travel and for Reimbursement Requests
The Department Manager must approve travel on City business outside of San Joaquin County in advance. All City employees shall submit a travel request to Finance at least 14 business days prior to travel, listing the expected expenses of the trip. All reimbursement requests must be signed by the employee and approved by the Department Manager or designee.
Post Travel Expense Reconciliation
Within 15 calendar days of return to the workplace, the Post Travel Expense Reconciliation Form must be completed for non-local travel, approved by the Department Manager and/or City Manager, and submitted to the Finance wherein actual travel expenses must be reconciled. All reimbursement requests must be signed by the employee and approved by the Department Manager or designee.
Select the Least Expensive Method of Travel Consistent with City Needs Employees may make their own plane transportation/ rental car/ and lodging reservations or have the City staff make them. Travel shall be by the least expensive method (plane or private car), consistent with the work needs of the City as determined by the City Manager or designee. An employee wishing to travel by private car rather than public transportation shall be reimbursed only up to the cost of public transportation and necessary car rental as determined by the City Manager.
Specific Types of Travel Expenses
Local Travel. The City will fully reimburse authorized travelers for cab, local bus, and rapid transit expenses. Receipts must support any amount over $3.50.
Parking. The City will fully reimburse authorized travelers for parking expenses. Receipts are required for amounts over $6.00.
Transportation. Use of air, train, private car or bus shall be selected on the basis of the most reasonable and appropriate method, taking into consideration distance, time and total costs to the City. If an employee elects to use a mode of transportation other than stated above, the City will pay only the cost of the most logical and least expensive mode. The difference between the selected
TRAVEL POLICY
Commented [KP9]: Add -All City employees shall submit
a travel request to Finance atleast 15 business days prior to travel listing the expected expenses of the trip.
Commented [KP10R9]: Do we have a Travel Request
Form they have to submit for travel approval?
Commented [KP11]: Should we add something about
post travel process -
Brentwood & Manteca -
Within 15 calendar days of return to the work place, the Post Travel Expense Reconciliation Form must be
completed for non-local travel, approved by the department director and/or City Manager, and submitted to the Finance and Information Systems Department wherein actual travel expenses, including amounts advanced, must be reconciled.
If actual costs, within the limits prescribed below are greater than the amount advanced, the difference when authorized by the employee’s department director and/or City Manager, will be refunded to the traveler. If the amounts advanced are greater than the actual expenses, the employee must return the funds to the City with the Post Travel Expense
Reconciliation Form.
Commented [KP12]: Add -All City employees shall
submit a travel request to Finance atleast 15 business days prior to travel listing the expected expenses of the trip.
Commented [KP13R12]: Do we have a Travel Request
Form they have to submit for travel approval?
Item 8.2
53 mode and the most logical and the least expensive mode shall be considered the employee’s personal expense. In addition, the employee shall charge any additional time spent en route during normal work hours to vacation or similar time bank.
Private Automobile Reimbursement. For employees who do not receive a car allowance and need to travel on City business, the employee will be reimbursed for the use of their private vehicle at the IRS standard business mileage rate in effect on the date when the travel occurred if the following requirements are met:
1. No City-owned vehicle was reasonably available for the trip or the use of a City vehicle was waived by the Finance Department.
2. The employee carpooled with one or more other City employees traveling to the same location at the same time for City business, if applicable. This requirement shall not apply in cases, as determined by the City Manager or Finance Department, where there is a reason related to City business that one or more employees travel separately (e.g. scheduling demands).
3. The mileage is certified by the claimant and approved by the manager. The claimant must state from what point to what point mileage occurred and state the purpose of the travel.
There is no mileage reimbursement for travel between an employee’s residence and the workplace. Mileage reimbursements are calculated from the employee’s place of work to destination.
Commented [KP14]: Brentwood - If the travel occurs on
a work day, and an employee travels directly from their residence to the conference site, an employee shall only be reimbursed up to the total miles between the employee’s residence and the conference site, or the employee’s work site and the conference site, whichever is less. On non-work days, the employee may be reimbursed for the total miles traveled.
Turlock - there is no mileage reimbursement for travel
between an employee’s residence and the workplace.
Mileage reimbursements are calculated from the employee’s place of work to destination.
Commented [KP15R14]: CHECK WITH JOE - do we
want to add something about -- When using a private vehicle, your personal vehicle coverage is the primary insurance.
Item 8.2
54 Employees who receive a car allowance are not entitled to mileage reimbursement for the use of their private vehicles unless they can demonstrate that the mileage reimbursement for a trip exceeding 500 miles roundtrip would be lower than the cost of economy class commercial airfare and car rental for the same trip. Employees who receive a car allowance also should not request City vehicles for trips of less than 500 miles roundtrip.
Rental Car. The City Manager or designee may authorize use of a rental car. Employees should rent compact cars when traveling unless business necessity dictates otherwise, as determined by the City Manager or designee. Authorized travelers may claim cost of gas, oil, and related auto expenses when supported by receipts and when such expenses are not part of the rental agreement.
Travelers should accept the corporate rate whenever possible. This rate includes necessary insurance. When the corporate rate is taken, travelers do not need to accept the over-the-counter insurance unless they do not have required coverage on their personal insurance. If a traveler must take over-the-counter insurance because personal insurance does not meet City minimums, the extra insurance cost will not be reimbursed. For economic reasons, travelers are strongly encouraged to fill the gas tank of the rental car themselves before turning it back in to the rental agency.
Tolls. The City will fully reimburse authorized travelers for tolls. Receipts are required for amounts over $6.00.
Lodging. The City will fully reimburse authorized travelers for actual lodging expenses consistent with the area of travel when supported by the itemized bill from the establishment. Lodging and the cost of lodging must be pre-approved by the City Manager or designee. Hotel and motel charges shall be based on single occupancy rates. The city will not reimburse employees for lodging expenses incurred for additional guests. In instances where destination hotels are filled, the employee should attempt to secure comparable rates at the nearest hotel. Receipts for lodging costs must be presented. Non-compensable lodging expenses not considered a City expense include, but are not limited to: late check-out and guarantee charges, personal services (i.e. barber/hair salon, shoeshines, health club and/or massage, entertainment.
Meals. The City will reimburse for meals in compliance with per IRS per diem regulations.
Receipts are not required, however for current IRS per diem regulationsbut employees must document the dates, location and purpose of the travel on the reimbursement form. the actual reasonable, as may be defined by the City Manager, cost of meals excluding alcohol, to authorized travelers on City business. The cost of meals reimbursed will not exceed the Federal Per Diem rate applicable to the location where the meal was eaten. Any exception to these restrictions will require specific approval by the City Manager or designee. Meals provided by the conference or included in the registration fee will not be eligible for per diem.
City-authorized travelers are Only the City Manager is allowed to host meals for other persons when the meal is related to the business of the City. The claim for reimbursement must be supported by receipts, a listing of the names and titles of guests, dates, and the business purpose of the meal. Travelers may claim actual cost for the meal when supported by receipts. The reason for the meal and the names and titles of guests will be listed on the travel claim form. Any deviation from the above guidelines requires approval by the City Manager or designee. Documentation as listed in the above paragraph must be supplied.
Registration Fees. The City will fully reimburse authorized travelers for registration fees required Commented [KP16]: Tracy - Actual cost for a single
occupancy room at a motel or hotel with average quality accommodations. The government and group rates should be requested where available. Lodging will be paid at the
Standard Room Rate (unless the conference room rate is
less). Receipts for lodging costs must be presented. Noncompensable lodging expenses not considered a City expense include, but are not limited to:
Late check-out and guarantee charges
Personal services (i.e. barber/hair salon,
shoeshines, health club and/or massage.
Entertainment, including but not limited to inroom
movies.
Pet-related expenses.
Commented [KP17R16]: Brentwood & Manteca - The
cost of lodging accomodations for approved conferences, seminars, training or meetings shall be paid directly by the City when possible. If paid by employee reimbursement will be made with proper documentation after return from travel.
Hotel and motel charges shall be based on single occupancy rates. The city will not reimburse employees for lodging expenses incurred for additional guests. In instances where destination hotels are filled, the employee should attempt to secure comparable rates at the nearest hotel.
Commented [KP18]: Tracy - Meals provided by the
conference or included in the registration fee will not be eligible for per diem. A continental breakfast is not
considered a meal for purposes of calculating meal
allowance Registration materials indicating which meals are provided as part of the registration must be submitted prior to receipt of per diem.
Brentwood - Receipts are not required if you stay within current IRS per diem regulations. Receipts are required to substantiate expenses over the current IRS per diem
regulation. Notwithstanding, employees may receive a meal allowance in excess of IRS per diem regulations, and will be reimbursed upon recommendation of Department Director
and approval of the City Manager or Director Finance.
MANTECA / BRENTWOOD also provide breakdown of
time where you would be eligible for meal expenses e.g. if you depart after 7am, can’t claim breakfast. Depart after 1pm can’t claim lunch, etc.
Commented [KP19R18]: Receipts are not required for
current IRS per diem regulations. Any costs above the IRS per diem regulations must be approved by the City Manager or ASD Director.
Commented [KP20R18]: Meals provided by the
conference or included in the registration fee will not be eligible for per diem.
Commented [KP21]: If we are advancing the meal cost as
per the per diem rate, should we remove “actual”?
Commented [KP22]: Should we remove this entirely or
say no employee is allowed to host w/o City Manager
approval?
Item 8.2
55 to attend a seminar, organized luncheon meeting, etc., when supported by receipt. Reimbursement will occur only when the employee has prior written authorization and is representing the City.
Incidental Expenses. The City will reimburse authorized travelers for actual incidental expenses incurred, such as personal phone calls, taxi driver and baggage tips, etc. up to a maximum of $8.00 per day (no receipt required) when certified by the claimant. These are claimed and itemized as incidentals on the claim form. The City will also reimburse authorized travelers for other necessary expenses such as printing and purchases of supplies. Receipts are required.
Personal Extension of Business Trip. When employees traveling by air wish to extend an authorized trip beyond the time required for business, they may do so on their own time as long as they obtain pre- approval for vacation taken. The City will reimburse the employee for the cost of lodging and meals only up to the initial return date.
Family Members or Guests. Travel arrangements and payment of costs for family members or guests are not eligible for payment by the City. Travel arrangements and payment of costs for family members or guests are to be handled directly by the employee.
Unauthorized Expenses: The following items of a personal nature, even if they are incurred in conjunction with expenditures that are subject to reimbursement, are not reimbursable: movies, entertainment, premium television services, alcoholic beverages, dry-cleaning, spas, gyms, barber, magazines, shoe shines, purchase of clothing or toiletries, loss of tickets, fines or traffic violations, excess baggage costs, golf related expenses, personal losses incurred while on City business, spouse and/or guest expenses, repairs to personal vehicles, office equipment and other items of a personal nature. Optional tours, banquets or other activities not related towards professional development offered through the conference, but as an additional cost to registration, are solely at the discretion of the employee and will be considered as a personal expense. The department head and/or City Manager shall determine what constitutes professional development. If unauthorized expenses have been paid by the City, the employee will be responsible for reimbursement to the City within five business days.
Travel Advance. The only payment that will be made to employees in “advance” will be for the IRS per diem, bridge toll and mileage, when documentation in writing is attached to the form.
Payments in advance must be submitted to Finance no later than 14 business days prior to departure.
Adequate Records
It is the responsibility of the traveler to keep adequate documentation of expenses claimed for reimbursement. Such documentation must substantiate the date, amount, and business purpose of the expenses. Incidentals, while not requiring receipts, must be itemized on a log with the date, description of each incidental expense, and amount attached to the travel claim. All receipts must be original. They should be placed in chronological order and attached to 8 1/2 X 11 sheets of paper with the date and explanation next to the receipt. Any claim submitted that does not follow these guidelines may be returned to the claimant for correction. The City follows IRS requirements for accountable plan reimbursement of employees. Any exceptions to this policy require written approval by the City Manager or designee.
Commented [KP23]: Should we add section for Family
members?Brentwood & Manteca - Travel arrangements and
payment of costs for family members or guests are not
eligible for payment by the City. Travel arrangements and payment of costs for family members or guests are to be handled directly by the employee.
Commented [KP24]: Should we add a section for costs
not allowed?
Tracy - Costs for spouses or other family members
accompanying City employees will not be reimbursed.
Brentwood & manteca - The following items of a personal nature, even if they are incurred in conjunction with
expenditures that are subject to reimbursement, are not reimbursable: movies, entertainment, premium television services, alcoholic beverages, dry-cleaning, spas, gyms, barber, magazines, shoe shines, travel insurance, purchase of clothing or toiletries, loss of tickets, fines or traffic violations, excess baggage costs, golf related expenses, personal losses incurred while on City business, spouse and/or guest expenses, repairs to personal vehicles, office equipment and other items of a personal nature. Optional tours, banquets or other activities not related towards professional development offered through the conference, but as an additional cost to registration, are solely at the discretion of the employee and will be considered as a
personal expense. The department head and/or City Manager shall determine what constitutes professional development.
Commented [KP25R24]: Manteca - “if unauthorized
expenses have been paid by the City, the employee will be responsible for reimbursement to the City within five
business days.
Commented [KP26R24]: Add brentwood’s
Commented [KP27]: Brentwood - The only payment that
will be made to employees in “advance” will be for the IRS per diem, bridge toll and mileage, when documentation in writing is attached to the form. Payments in advance must be submitted to Finance no sooner than one month prior to
departure.
Item 8.2
56 Section 320
The City reimburses employees for using their personal car in conducting City business at the IRS approved business standard mileage rate, or, for certain employees, a car allowance. Consistent with the IRS basis in setting the standard mileage rate, the City’s per mile reimbursement rate reflects all costs associated with operating a vehicle, such as depreciation, lease payments, maintenance, repairs, fuel, oil, insurance (including deductibles) and vehicle registration fees.
The rate is updated at least annually in an official notice published by the IRS. Employees receiving a car allowance are not eligible for reimbursement based on actual mileage driven.
CURRENT MILEAGE REIMBURSEMENT RATE
Item 8.2
57 Section 330
Objectives
The objectives of the City’s payroll policy and procedures are as follows:
• City employees are compensated at the correct rate for services performed. • City employees are paid for the correct number of hours worked. • City payroll is released to employees on time.
• Only authorized amounts are paid.
Compensation
New positions. All new positions are approved by the City Council. When approving the new position, the City Council establishes the initial compensation for a salary range for that position. The initial compensation is established by the Human Resources Manager, with input from the department manager and authorization from the City Manager.
Existing represented positions. Employees represented under collective bargaining agreements typically receive annual cost of living adjustments and step increases in accordance with those agreements and at management discretion where applicable.
Existing unrepresented positions. Unrepresented employees other than the City Manager (typically Department Directors, Deputy Directors, Assistant Directors, and Managers) receive step increases and/or cost of living adjustments at the discretion of the City Manager.
Procedure for adjusting compensation rates.
1. All collective bargaining agreements and any other management decisions with respect to employee compensation are provided immediately to the City ClerkHRHuman Resources Manager.
2. The City ClerkHRHuman Resources Manager prepares an EPAD form for each employee whenever that employee’s compensation should change. Employee compensation must match established salary tables that have been adopted by the San Joaquin County Board of Supervisors, so in cases where the exact compensation rate is not available on the County’s salary tables, the City Clerk selects the compensation rate that is the closest to, and higher than, the calculated amount. The City ClerkHRuman Resources Manager then submits the completed EPAD form toto the San Joaquin County Human Resources Department.the pPayroll team in the Finance Department.
3. San Joaquin County Human ResourcesThe pPayroll team in the Finance Department processes the EPAD and updates the payroll system, returning the completed EPAD to the City ClerkHuman Resources Manager who files the form in the respective employee’s personnel file.
4. The Accounting Human Resources Manager will access the payroll register for the pay period following the effective date of the salary change to ensure that the change was implemented by San Joaquin County Human Resourcesthe payroll team appropriatelycorrectly. A copy of the initial pay register will be placed in the employee personnel file.
PAYROLL SYSTEM AND PROCESSING
Commented [KP28]: Finance Dept or Payroll Team?
Item 8.2
58 New Hires
When the City hires a new employee, the employee is asked to go report toto the Human Resources Manager San Joaquin County Human ResourcesTown Hall on their first day to complete new hire paperwork and go through an orientation in all cases except for seasonal employees hired for recreation purposes (such as the pool program).
Seasonal employees hired for recreation attend an orientation at City offices and complete their new hire paperwork at that time. The City ClerkHuman Resources Manager then forwards the paperwork to San Joaquin County Human Resourcesthe pPayroll team in the Finance Department for processing.
Included in the new hire paperwork is a direct deposit form where the employee designates the bank account into which their direct deposit should be made. Only San Joaquin County Human Resourcesthe pPayroll team can add a new employee to the system or change the direct deposit information on an employee and they do so only after receiving proper forms from the employee or the CityHuman Resources Manager.
Payroll Processing (Bi-Weekly)
City’s payroll payments are released to employees on a bi-weekly basis on Fridays for the twoweek period ending on the Sunday preceding the Friday pay day. Following is a detailed calendar of events for each payroll period.
Date Procedure Individuals
InvolvedResp
onsible
Employees
Last
ThursdayThursday
of 2-Week Pay
Period
All employees prepare their timecards according to the
City’s template, sign them, and submit the timecards
to their supervisor. They include hours they expect to
work on the last Friday of the pay period even though
the timecard must be submitted before then.
then.
All Employees
Item 8.2
59 5:00 PM,
Last Thursday of
2-Week Pay
Period
Supervisors review each of their employee timecards,
considering the following questions:
1. Does the timecard agree with my knowledge of
the hours the employee worked for this pay
period, especially if there are overtime hours?
2. Has the employee correctly included time off
on the timecard when time off was taken?
3. Is the number of hours reported consistent with
the times in and out written on the timecard
and does the timecard correctly reflect the
employee lunch period?
After reviewing the employee timecards, the
supervisor signs the timecards and submits them to the
Finance Department by 5:00 PM on the last Thursday
of the pay period.
All Supervisors
Last Friday of the
Pay Period
The Finance Department reviews the timecards
submitted by the supervisor for mathematical
accuracy, inconsistencies in the time data report, and
lack of signatures, and returns incomplete or
inconsistent timecards to the Supervisors supervisor
for
correction.
Finance
Department,
Supervisors
4:00 PM,
Monday Following
the End of the Pay
Period
After receiving corrected timecards, the Finance
Department must complete initial input of the payroll
data by 4:00 PM on the Monday following the end of
the pay period. S/he inputs into the data into the into the County’s PeopleSoft HRMSADP system.
Finance
Department
Tuesday Morning
Following the End
of the Pay
Period
The Finance Department checks the PeopleSoft
HRMSADP system for exceptions on the payroll
entered the day before as soon as the workday begins.
S/he the and works n works with Supervisors
supervisors to resolve all exceptions by noon.
noon.
Finance
Department,
Supervisors,
as if needed
Friday Following
the End of the Pay
Period
San Joaquin County Human ResourcesADP Payroll
system initiates direct deposits to pay employees based on the bank account information submitted on direct
deposit forms to the County payroll team and mails any
paper checks directly to the employees. The City is not involved in the actual disbursement of funds to the
employees once the
payroll entry has been completed.
Finance
DepartmentSa
n Joaquin
County Human
Resources
At Least
Monthly
After payroll has been disbursed to the employees, the
Accounting TechnicianAccountant accesses the the
County’s Oracle General Ledger systemADP system
and runs a query to obtain the posted payroll expense
figures and then . S/he then inputs this information
into a journal entry template created for this purpose
and imports the transaction to the City’s Tyler
Accounting
Technician
Item 8.2
60 Incode 10 General Ledger for the City.accounting
system.
Employee Separations
The City Clerk Human Resources Manager maintains an employee separation checklist of tasks to complete when an employee separates from City employment, which includes the following:
1. On the day an employee separates from City employment, the City ClerkHuman Resources Manager submits a form to San Joaquin County Human Resourcesthe Payroll team notifying them of the separation. The final paycheck is processed according to the normal payroll calendar and after that San Joaquin County Human Resourcesthe Payroll team removes the employee from active status in the payroll system so they can no longer be paid.
2. The City ClerkHuman Resources Manager notifies San Joaquin County IT to disable the former employee’s login credentials to the City’s network.
3. The City ClerkHuman Resources Manager disables the former employee’s access badge used to access City facilities and collects all keys the former employee possessed.
4. The City ClerkHuman Resources Manager collects the City’s credit card from the employee, if the employee had been issued a credit card. See the Credit Card Policy for further details.
The Accounting Manager will verify that any separated employees no longer appear on the pay register for the first payroll after their final paycheck has been processed.
Item 8.2
Section 400
61 The purpose of this section is to describe the City’s policies and procedures regarding the management of the City's fixed assets and inventory items.
Areas currently covered include:
• Accounting for fixed assets
• Contributions/dedications of capital assets from others • Inventory of fixed assets
• Surplus property
FIXED ASSETS AND INVENTORY MANAGEMENT
Item 8.2
62 Section 410
OVERVIEW
The City defines capital assets, for the purposes of capitalization, as a purchased or otherwise acquired piece of equipment, vehicle, furniture, fixture, capital improvement, or land or an addition to buildings or infrastructure. In accordance with GASB standards, capital assets also include intangible assets lacking physical substance that are used in City operations such as computer software, permits, and other items that are nonfinancial in nature (bonds, securities, investment instruments, and investment contracts are not considered capital assets or intangible assets). Under GASB requirements, intangible assets must either confer on the City specific legal rights (e.g. a permit or water rights) or be capable of being divided from the City and sold to another party. The cost or value of any such acquisitions must be $5,000 or more per discrete item with an expected useful life greater than one year. Purchases of multiple items are aggregated into a single item for capitalization purposes when the items purchased are attached or assembled together into a single item and are not expected to be disassembled during the expected useful life of the item, except for maintenance purposes.
Infrastructure acquired from City developers is recorded when an offer of dedication is accepted and capitalized using amounts in the offer of dedication, which is an estimate.
These asset dedications are grouped assets and are based on the description in the offer of dedication.
Additions or improvements that significantly extend the useful life or substantially increase the operating efficiency or capacity of an asset are capitalized. Other related costs that only enable an asset to meet its original estimated useful life or operational efficiency are considered maintenance expenditures in the period incurred.
The Finance Division will record all items requiring capitalization. All fixed assets are valued at cost, or estimated cost, if actual cost is not available. Contributed fixed assets are recorded at estimated fair market value at the time received. The Fixed Asset System will be updated at least annually in conjunction with the annual audit.
ACQUISITION
During the budget process, planned capital asset acquisitions are budgeted in designated “capital outlay” expenditure accounts (object codes beginning with the number 7). The assets are actually acquired during the year according to the procedures specified in the City’s purchasing policies, with the ultimate expenditure booked to one of the capital outlay expenditure accounts.
After the end of the fiscal year, the Finance Director or designee reviews capital outlay expenditure accounts and other accounts which may contain capital assets and makes appropriate adjustments to capitalize the assets by moving them into balance sheet accounts (in the case of the utility enterprise funds) or prepares worksheet adjustments for the financial statement reporting process to reflect the assets as capitalized on the government-wide financial statements (in the case of governmental funds).
CAPITAL ASSET ACCOUNTING
Item 8.2
63 DEPRECIATION
Depreciation, a measure of the exhaustion of economic resources, is an allocation of the cost of a fixed asset over its useful life. Though it is important to include an allowance for replacement of fixed assets in our budgeting process, we need to use caution when using depreciation expense as recognized on our financial statements to determine a reserve for replacement cost. This is because depreciation expense is based on the historical cost of the assets when they were originally placed into service. It is not adjusted for inflation, market conditions, changes in the City’s capacity needs, or changes in technology since the time an asset was placed into service that could significantly impact the replacement cost of an asset.
It is also based on an estimated useful life of an asset that is difficult to determine with precision at the time an asset is purchased.
The City maintains a depreciation schedule in Excel or an accounting module to track its capital assets and calculate depreciation expense. After the end of each fiscal year in preparation for the annual audit of the financial statements, the Finance Director or designee determines all capital assets that were added or disposed of during the year, updates the depreciation schedule, double-checks the calculation of depreciation using check formulas, reconciliations, and/or other methods, and finalizes the calculation. In adding assets to the depreciation schedule, care should be exercised to include as much detail on the cost of asset components as is reasonably practicable so that portions of a significant project that are expected to be replaced at different times can be removed from the depreciation schedule separately when appropriate. Estimated useful lives are assigned to the various classes of fixed assets as follows:
Fixed Asset Class
Estimated Useful Life
(in Years)
Vehicles, equipment and machinery 2 – 10
Structures and improvements 10 – 50
Infrastructure
Road system network
Pavement 40
Curbs and gutters 50
Sidewalks 50
Medians 50
Traffic signals 30
Street lights 40
Fixed Asset Class
Estimated Useful Life
(in Years)
Bridges 75
Trails - asphalt 40
Trails- concrete 50
Utility Infrastructure
In-ground Pipes 60
Manholes 60
Catch basins 5
Detention basins 5
Item 8.2
64 Section 420
CONTRIBUTIONS/DEDICATIONS OF CAPITAL ASSETS FROM OTHERS
OVERVIEW
Under the City’s Master Plan and Master Acquisition and Reimbursement Agreement (MARA), and conditions of approval attached to final maps, developers in the City are obligated to construct certain capital assets (primarily infrastructure and community facilities) upon the occurrence of certain events and then transfer those assets to City control and ownership subject to the City’s procedures for accepting such assets. The City’s policies and procedures are designed to reduce the City’s risk of incurring costs due to defective assets and to ensure proper accounting for these assets in accordance with generally accepted accounting principles.
AGREEMENT ON ASSETS TO BE CONSTRUCTED/FINAL MAP
Prior to beginning any development, a developer must have a final map approved by the City Council showing the development plan. In order to obtain the final map, the developer works with an appropriate engineer on the City’s engineering staff to agree to conditions of approval that call for installation of specific public facilities and infrastructure and enters into subdivision improvement agreement(s) and/or off-site improvement agreement(s) that give specific details on the public facilities to be constructed by the developer as a condition of approval. The conditions of approval commit the City to accepting the public facilities and/or infrastructure subject to specified conditions. The conditions of approval, subdivision improvement agreement(s), and/or off-site improvement agreement(s) are approved by the City Council concurrently with approval of the final map.
PLANS
After approval of the final map, the developer submits detailed improvement plans to the City’s Engineering Department on the facilities/infrastructure to be constructed. These plans are sufficiently detailed that a construction contractor could use them to construct the assets.
The
Engineering Department or its consultants review the plans for compliance with the City’s standards and specifications. If they meet with City approval, a City engineer then signs the plans and returns them to the developer.
CONSTRUCTION
The developer engages appropriate contractors to begin construction according to the improvement plans signed by the City’s engineer. Throughout the construction process, the City’s engineers or consultants inspect the construction to ensure it is being done according to plan.
Item 8.2
65 COMPLETION AND DEDICATION
When construction is completed, a City Engineer or consultant engaged by the City performs a final inspection using a checklist for this purpose. Once the inspector is satisfied that the completed asset meets City requirements, s/he writes a letter to the City stating that the developer has met the City’s requirements and recommending acceptance. The Engineering Department then prepares an Offer of Dedication and Dedication Agreement specifically describing the assets to be dedicated and providing the estimated total cost of the assets, as well as a Certificate of Acceptance and presents these documents to the Finance Department and the
City Manager. The City’s City Manager signs the documents and routes them to the Finance Department, which will deliver them to the developer. The developer will then record the change in ownership at San Joaquin County. From this point on, the City assumes responsibility for operation and maintenance of the asset. The signed offers and certificates of dedication are then scanned by the administrative staff and placed in the Offers of Dedication folder under City Shared Directories.
ACCOUNTING
At the time of dedication, the assets become the property of the City and therefore must be added to the capital asset balances reported on the City’s financial statements. If the asset contributed is included under the City’s Transportation Impact Fee (TIF), Community Facilities Fee (CFF), or utility infrastructure programs, the asset will be recorded on the financial statements at the certified cost of the asset, with an offsetting entry to the long-term debt associated with the applicable type of program. If the certified cost of such an asset is not yet available, the asset will be recorded based on an engineering estimate and then adjusted to the certified cost when that becomes available. If the asset is not covered under one of these programs, the capital asset will be recorded to an income statement account as a contribution. If the asset is in one of the utility funds (water, sewer, and stormwater), the entry will be made in the Tyler Incode 10 system by the Administrative Services Director or Finance Director. If the asset is not related to an enterprise fund, the receipt of the dedication will be recognized for financial reporting purposes under the Finance Department’s procedure for recording government-wide financial statements
Item 8.2
Section 430
66 OVERVIEW
Performing periodic inventory checks of the City’s fixed assets and other designated noncapitalized items that are nonetheless valuable is a part of the City’ stewardship of public resources and fiscal accountability. The inventory accomplishes two objectives:
1. Improving the accuracy of the City’s financial reporting by ensuring that assets that are damaged or no longer in use are removed promptly from the City’s depreciation schedule and general ledger system, where applicable.
2. Ensuring that property purchased with City funds remains in the possession and control of the City, is properly cared for, and is used for City purposes.
Items to be Inventoried
The inventory lists that are verified on an annual basis should include all items listed on the City’s capital asset and depreciation schedule.
Inventory Procedure
1. Following the adoption of the City’s budget each year, the Finance Department will circulate a set of lists to all Department Managers that collectively comprise all items to be inventoried as described in the above section.
2. Each Department Manager will verify that all of the items listed on his or her list:
a. Are functioning as intended. If there is any damage, the damage will be noted. b. Are located either on the City property or are in the custody of City employee outside of City property for an appropriate business purpose. c. Continue to be used for City business purposes.
3. Completed lists will be returned to the Finance Department by July 31 of each year.
4. The Finance Department may select items on the list to independently verify.
INVENTORY OF CAPITAL ASSETS
Item 8.2
67 Section 440
OVERVIEW
It is financially advantageous and fiscally prudent for the City to dispose of surplus personal property in a manner that maximizes revenue and converts idle equipment and materials to revenue, thereby recovering funds for other uses.
Surplus personal property includes plant and office equipment, vehicles, machinery, furniture, fixtures, consumable supplies, scrap, junk and other goods and materials no longer usable or needed by the City.
LEGISLATIVE POLICY
The City Manager, in his/her capacity as Purchasing Agent, is responsible for the sale or disposal of City-owned personal property not required for public use.
ADMINISTRATIVE POLICY
This policy shall apply to all sales and dispositions of surplus City-owned personal property.
1. Department heads are responsible for identifying property to be surplused and reporting all surplus property to the Purchasing Agent. The Purchasing Agent is responsible for determining the fair market value of such property.
2. The Purchasing Agent or designee is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property or consumable supplies having a fair market value of ten thousand dollars ($10,000.00) or less in the manner they deem most appropriate and cost- effective, consistent with State of California statutes and City policies described herein.
3. Disposal of surplused property with an estimated fair market value exceeding ten thousand dollars ($10,000.00) per item requires approval of the City Council. With Council approval, the Purchasing Agent is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property having a fair market value in excess of $10,000.00 in the manner they deem most appropriate and cost-effective, consistent with State of California statutes, City policies described herein, and Council direction.
4. Methods of transfer and disposal include transfer to another department, trade-in, return to manufacturer, sale, or donation.
5. Appropriate methods of sale include public auction, public sales, or sealed bids. Public auctions and sales may be conducted by City staff or the City may contract with a professional auctioneer, dealer, or on-line auction site. Sealed bids must be solicited for the sale and the property shall be sold to the highest responsible bidder.
SURPLUS PROPERTY
Item 8.2
68 6. No City official, officer or employee shall purchase, or be financially interested in any purchase, of surplus property.
7. Surplus property may be donated to any other public agency or charitable organization. “Public agency” means the State or any agency or subdivision thereof, any city, county, special district, or school district. “Charitable organization” means an organization that has been granted tax exempt status under Section 501(c)(3) of the Internal Revenue Code.
8. Should any surplus item fail to be sold at public auction or sale or by sealed bid, the City may donate the item to a public agency or charitable organization in lieu of sending materials to landfill.
9. All surplus property is disposed of “as is” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property offered unless expressly authorized by the City Council.
10. Disposal of surplused computer equipment will comply with the following conditions:
a) All licensed software will be removed from computers b) All electronic files will be deleted
c) Computers may be reloaded with operating system software only if legal d) The City will not guarantee the current or future working condition of the equipment e) The City will not provide technical assistance with the set-up, repair or operation of the equipment
11. Non-working electronic or universal wastes may not be sold or transferred. Devices containing mercury such as gauges, thermostats, sphygmomanometers, and thermometers may not be sold and must be managed in accordance with California statutes.
Item 8.2
69 Section 500
OVERVIEW
The purpose of this section is to describe the City’s budget policies and procedures. Areas currently covered include:
• Overview of the City’s budget process
• Budget amendment requests
• Reappropriation policy for operating programs and capital improvement plan projects
• Monitoring budget performance—monthly expenditure reports and comprehensive annual financial report
• Accounting for completed capital improvement plan (CIP) projects
BUDGET AND FUND ACCOUNTING POLICIES AND PROCEDURES
PPPROCEDURES
Item 8.2
70 Section 510
Balanced Budget
The City’s budgets must always be technically balanced, in that estimated resources available to finance the budget must equal or exceed budgeted expenditures or uses of funds. In addition, the City also strives to always adopt a structurally balanced budget, in which current operating expenses are financed solely by current year revenues, or, in unusually poor economic conditions, by reserves set aside for stabilization. Debt and existing fund balance should generally only be used to provide resources to finance capital acquisitions that will benefit the City over a period of time.
Funds Budgeted and Not Budgeted
The City’s budget includes all funds of the City except for developer funds. These funds are not budgeted because expenditures are reimbursed by developers pursuant to agreements and it is difficult to predict the amount of developer activity that will occur in a given fiscal year.
Budgetary Policies
The budget will be prepared and implemented in compliance with the following guidelines:
User Fees and Charges will be Set at the Cost of the Service Fees and associated charges are associated with recovering the cost of providing a service. The City can charge up to the full cost of providing a service. • Fees will be set to fully recover costs, except where there is a greater public benefit through use of a lower fee, such as where full recovery may adversely impact overall revenue or may discourage participation in programs where the participation benefits the overall community.
• The City Manager will establish a process in-depth review of all fees over time. The review, while eventually covering all fees, should emphasize those that have or may have significant subvention (may not be at full cost).
One-Time Resources will be Used Only for One-Time Purposes One-time resources are revenues that only occur once, for a very limited time, or are too unpredictable or unstable to fund operations. One-time revenues may include the variable portion of some revenue sources that have highly variable components. One-time revenues are not suited to fund ongoing operations because they are not available in the future or cannot be relied on from year-to-year to pay the ongoing costs of operations. • One-time resources will not be used to fund ongoing operations. They will be used for one-time uses, including capital and other one-time expenditures, transitional funding of operations (for a limited time-period with a planned ending date), increasing reserves, or paying down unfunded liabilities.
BUDGET POLICIES AND ASSUMPTIONS
Item 8.2
71 Capital Projects will be Budgeted and Funded for Both Capital and Operating Costs Expenditures for capital and infrastructure often have an impact on operating costs. Capital investments and infrastructure eventually have to be replaced. New capital projects typically increase costs while repairs may lower costs. For capital expenditure decisions, both the onetime capital costs, the ongoing net operating costs, and replacement costs (lifecycle) should be considered. When capital and infrastructure funding decisions are made, it is important to provide information to the City Council about future operating costs and potential replacement costs and funding of replacement.
• Before approving any capital expenditure, including those proposed by any elected official, the City Council shall consider both the capital (one-time) and operating (ongoing) components of costs, including the full capital cost of the project, regardless of funding sources, and all City-incurred site, design, overhead costs and start-up costs.
Replacement costs and potential method of funding shall also be considered. Site costs for land already owned by the City do not need to be reported. • Projected operating costs through any stabilization period, as well as projected future operating and maintenance costs, are to be identified. If the project has a limited economic life, the fiscal impact information should discuss proposed end of life actions and costs.
The method for funding the projected operating costs is to be included in any funding description. Projects and costs that do not significantly impact the City do not need to be analyzed.
• When fees are initially proposed for items charged to external parties but installed and maintained by the City, the City Council shall have information to allow the Council to consider incorporation of capital costs, maintenance costs and replacement cycle costs in the fees or upfront costs. Costs that are not significant do not need to be analyzed.
Budgetary Basis of Accounting
The budget is adopted on the modified accrual basis of accounting for all funds, including the utility enterprise funds, because the modified accrual basis more closely approximates cash flow and is thus more useful for budgeting purposes than the full accrual basis. Under the modified accrual basis, revenues are budgeted in the period when they are expected to be earned, but only to the extent that the earned revenue is expected to be received during the period or within 60 days after the end of the period. Expenditures are budgeted in the period in which the liability is expected to be incurred, except that for long-term liabilities, expenditures are recognized for interest and principal payments in the period they come due for payment. Expenditures are budgeted for capital asset acquisitions in the year acquired and depreciation is not budgeted.
The modified accrual basis of accounting is consistent with generally accepted accounting principles for financial reporting for governmental funds, but it differs from generally accepted accounting principles for the utility funds, which are reported on a full accrual basis.
Accordingly, when presenting budget-to-actual comparisons for enterprise funds on the budgetary basis, a reconciliation will be necessary to explain the differences between amounts recognized on a budgetary basis and amounts.
Item 8.2
72 Section 530
Date Procedure Individuals
Involved
January 15 The Finance Department will develop the projected payroll and benefits budget based on anticipated
positions in the upcoming fiscal year, salaries, and
benefit costs. The Finance Department will also
develop revenue projections for the upcoming fiscal
year for any revenues that are not department-specific.
The Finance Department will submit this information
to the City Manager for review and discussion.
Finance
Department
January 31 The Finance Department sets up proposed budget input in the City’s OpenGov system for the upcoming
fiscal year and makes it available for
department managers to begin logging in and entering
the data.
Finance
Department
January 31 The City Manager reviews the projected payroll and benefits budget and projected City-wide revenues and
provides revisions to the Finance
Department.
City Manager
February 17 Department managers complete the budget form within OpenGov for the upcoming fiscal year,
including both a projection of current fiscal year
spending as well as the budget requested by each line
item for the fiscal year. Department managers will
include notes explaining any significant changes
anticipated from the prior year. Department Managers
will also include a discussion of goals for the
upcoming year and identify objective measures that
can be used to gauge the accomplishment of these
goals. Outside vendors or Consultants are prohibited from submitting or overseeing the budget. Budget is to be
submitted directly by the Department Manager.
Department
Managers
February 24 Department managers identify and submit a detailed Capital Improvement Plan budget to the Finance
Department.
Department
Managers
BUDGET PREPARATION TIMELINE AND PROCEDURES
Commented [KP29]: .
Item 8.2
73 Date Procedure Individuals
Involved
February 15-
March 10
The Finance Department will review the budget
requests submitted by Department Managers for the
following:
1. Do the projected amounts of expenditures for
both the current fiscal year and the upcoming
fiscal year appear reasonable in comparison to
the prior year and when considering the
balances on open POs?
2. Has the Department Manager included detailed
notes explaining the content of budget line
items, calculation of estimated figures, and any
significant changes for the prior year?
3. Does the budget address conditions known to
the Finance Department that would be expected
to have an impact on budgeted amounts for the
upcoming year (e.g. known increases or
decreases in contract pricing for services
required, changes in circumstances that will
result in increased or decreased cost)?
4. Do the budgeted figures represent an efficient
use of City resources?
5. Are the performance measures identified by the
Department Managers appropriate measures of
the Department’s progress toward its goals?
The Finance Department will return budgets to
Department Managers for clarification by February 15.
Finance
Department
March 25 Department managers respond to all requests for clarification from the Finance Department.
Department
Managers
March 25-
April 10
The Finance Department will evaluate the information
presented by Department Managers and compile a
complete proposed budget document for the City. This
budget document will be submitted to the City
Manager for review.
Finance
Department
April 22 The City Manager reviews and provides and revisions to the proposed budget document developed
by the Finance Department.
City Manager
First
Wednesday in
May
The Finance Department will publish a complete
proposed budget document in the Council package for
the first Council meeting in May, incorporating
changes
from the City Manager, if any.
Finance
Department
Item 8.2
74 Second
Wednesday in
May
The Finance Department and City Manager will
present the proposed budget to the City Council for a
first hearing at the first City Council meeting in May.
The City Council will evaluate the budget and give
direction to staff regarding any
changes desired to the proposed budget.
Finance
Department, City
Manager, City
Council
Late May If desired, the City Council may schedule additional hearings or study sessions on the proposed budget.
City Council,
Finance
Department, City
Manager,
Department
Managers
First
Wednesday in
June
The Finance Department will incorporate changes
requested by the City Council into a revised budget
document and publish the revised document in the
Council package for the first City Council
meeting in June.
Finance
Department
Second
Wednesday in
June
Assuming satisfactory changes were made, the City
Council will adopt the proposed budget at the first City Council meeting in June.
City Council
June 30 Using the Excel worksheet presented to the City Council, the Finance Department will import the final
adopted budget into the Tyler Incode 10 system. The
Finance Department will verify that the totals from the imported budget match those adopted by the City
Council through check totals and spot checks.
Finance
Department
90 days from
budget
adoption
Within 90 days from the date of budget adoption, the
Finance Department will complete a review of the
budget and submit it for consideration under the
Government Finance Officers’ Association’s
Distinguished Budget Presentation Award Program.
Finance
Department
Item 8.2
75 Section 540
Exceeding Budget Prohibited
Expenditures in excess of the established budget for a line item are prohibited. The Finance Department will return unpaid any requests for payment or requisitions for purchase that exceed a budgeted line item. Originating departments must complete an Appropriation Adjustment Request (AAR) to adjust budged line items. The following details the level of authority granted for budget adjustments.
Department Managers
Department managers may adjust the budget under the following circumstances:
• The adjustment does not involve a payroll account, personnel allocation, or overhead allocation account and;
• The adjustment reallocates non-payroll expenditures other than those listed above so that the total amount of budgeted expenditures within the department and fund does not increase.
The Department Manager will complete and submit the AAR to the Finance Department to process a budget change meeting these criteria. Upon receipt of a properly executed AAR, the Finance Department will verify that the signer has the necessary authority as specified under this policy and then input the change into the Tyler Incode 10 accounting system.
City Manager
The City Manager may adjust the budget under the following circumstances:
• The adjustment reallocates expenditures so that the total amount of budgeted expenditures within each fund group reported as a single fund in the City’s audited financial statements does not exceed budged expenditures as approved by the Council. If the adjustment involves a new fund that has not yet been part of an audited financial report, the fund will be considered part of the fund grouping (if any) in which the Finance Department plans to report the fund in the next set of published financial statements for the City for purposes of this requirement. • The adjustment does not impact capital projects approved by the Council in the CIP budget or add a new capital project not previously approved by the Council. • The adjustment does not reduce budgeted expenditures related to special tax ordinances 96- 2, 96-3, and/or 96-4 (funds 202, 203, and 204) in order to increase budgeted expenditures related to special tax 96-1 (fund 201).
The City Manager will complete and submit the AAR to the Finance Department to process a budget change meeting these criteria. Upon receipt of a properly executed AAR, the Finance Department will verify that the signer has the necessary authority as specified under this policy and then input the change into the Tyler Incode 10 system.
Adjustments for personnel costs:
The City Council approves job descriptions for City personnel and authorizes the number of positions (full-time and part-time equivalent positions or FTEs). Any salary adjustments will be made in accordance with applicable Memoranda of Understanding with represented employees.
The City Manager may grant cost of living increases to unrepresented employees in accordance with Council direction. The City Manager may adjust salary grades of positions and an employee’s placement in the grade as deemed necessary and reasonable to address market conditions and employee performance and retention. All employees within a job classification
BUDGET ADJUSTMENTS AND AMENDMENTS
Item 8.2
76 will be paid using the same salary grade. Any salary adjustments will be made in accordance with applicable Memoranda of Understanding with represented employees. The City Manager may grant cost of living increases to unrepresented employees in accordance with Council direction. The total amount of budgeted expenditures within each fund group may not exceed budgeted expenditures as approved by the Council as a result of salary adjustments made by the City Manager.
City Council
Any budget changes not falling within the authority of a Department Manager or the City Manager as defined above must be approved by the City Council in the form of a formal budget amendment. Changes that must be submitted to the City Council for approval include the following:
• Any change that increases total budgeted expenditures in a fund group report as a single fund in the City’s audited financial statements.
Personnel who need to initiate a budget amendment must submit an AAR to the Finance Department specifying the reasons of the budget change requested and the source of funds that will be used to cover any increased costs. The Finance Department will review the AAR to verify that sources of funds for the budget amendment are reliable and that the amendment is in accordance with City policy. If so, the Finance Department will forward the AAR to the City Manager for review. If the City Manager approves the AAR, the Finance Department will prepare a staff report and proposed resolution amending the budget to present to the City Council at the next regular City Council meeting. If the City Council adopts the budget amendment, the City Clerk will sign the AAR and attach a copy of the approved budget amendment resolution, returning it to the Finance Department. The Finance Department will then enter the approved budget amendment into the Tyler Incode 10 system.
Item 8.2
77 Section 550
Objectives
The goals of the City’s fund structure are as follows:
• Compliance with fund type definitions under generally accepted accounting principles (GAAP) for state and local governments and facilitating the efficient preparation of financial statements prepared in accordance with GAAP.
• Demonstrating accountability for restricted resources entrusted to the City. • Minimizing error and complexity by avoiding the creation of funds that are not needed to efficiently serve the objectives noted above.
Types of Funds
The City’s fund types and the fund number mask for each type (XXX) are summarized below:
Governmental Funds (financed primarily by taxes, grants, and other nonexchange revenue) General Fund (1XX) - The General Fund is the general operating fund of the City. It is used to account for all financial resources and transactions except those required to be accounted for in another fund. It includes certain special accounts that are used to accumulate resources for designated purposes.
Special Revenue Funds (2XX) – Special revenue funds may be created where the foundation of the fund consists of revenues that are either restricted or committed for purposes other than capital projects or debt service.
Debt Service Funds (3XX) – Debt service funds consist of funds with resources dedicated to debt service either by external restriction or internal policy. The resources may be restricted, committed or assigned to debt service as specified in the GASB 54 fund balance policy.
Capital Projects Funds (6XX) – Capital projects funds consist of funds with resources dedicated to the acquisition or construction of capital assets either by external restriction or internal policy. The resources may be restricted, committed or assigned for capital projects as specified in the GASB 54 fund balance policy.
Enterprise Funds (financed primarily by charges for services to users, 5XX)
FUND STRUCTURE AND CREATION AND CLOSURE OF FUNDS
Item 8.2
78 Creation and Closure of Funds
The Administrative Services Director or Finance Director may create or close funds as deemed necessary to accomplish the objectives of this policy.
Item 8.2
79 Section 560
Overview
Under Governmental Accounting Standards Board Statement No. 54 (GASB 54), the fund equity/fund balance in a governmental fund is classified into a maximum of 5 categories based on the extent to which restrictions (which may be natural, legal, or internal) limit the City’s ability to use the fund balance. As the City has adopted GASB 54, this policy is intended to summarize those requirements and clarify the City’s policy regarding fund balance where GASB 54 gives the City discretion to adopt such policies and how the policy applies in the City’s circumstances.
Scope of this Policy
As noted above, GASB 54 applies to governmental funds. It does not apply to enterprise funds (e.g. water, sewer, and stormwater), where the classifications of fund equity are somewhat different.
Definitions
Fund Equity – A fund’s equity is generally the difference between its assets and its liabilities.
Fund Balance – An accounting distinction is made between the portions of fund equity that is spendable and nonspendable. These are broken up into five categories:
1) Nonspendable fund balance – includes amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory or endowments (permanent funds).
2) Restricted fund balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers or in the City’s enabling legislation.
Examples include may include grants, developer in-lieu fees, and taxes and assessments legally restricted to particular purposes.
3) Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decisionmaking authority. Commitments may be changed or lifted only by the FUND BALANCE POLICY UNDER GASB 54
Item 8.2
80 government taking the same formal action that imposed the constraint originally. 4) Assigned fund balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5) Unassigned fund balance – is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose.
Policy
Restricted Fund Balance – The City receives the following types of revenues which it considers restricted. Residual amounts of these revenues, after being used for allowable purposes, are reflected as restricted fund balance in accordance with this policy:
1) Special Taxes Restricted to Uses Narrower than General City Use – The City receives multiple special tax revenues derived from parcel taxes on property within the City that are restricted to purposes narrower than the general needs of the City, such as those special taxes received and restricted for public safety, parks, recreation, and community facilities, and public works.
2) Developer Impact Fees – The City collects impact fees on building permits issued that are restricted to be used to pay for City facilities and infrastructure, such as the Transportation Impact Fee (TIF) and Community Facilities Fee (CFF).
Committed Fund Balance - The City Council is the City’s highest level of decision- making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a formal motion or resolution approved by the City Council at the City Council’ meetings. The motion or resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period.
Assigned Fund Balance - The City Council authorizes the City Manager, Administrative Services Director, and/or Finance Director to assign fund balance to a specific purpose as approved by this fund balance policy.
Item 8.2
81 Minimum Unassigned Fund Balance - It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 3 months of general fund expenditures in a fiscal year.
If unassigned fund balance falls below the goal or has a deficiency, the City will adjust expenditures to assure that the minimum unassigned balance is maintained.
Order of Expenditure of Funds - When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly restricted tax revenues, discretionary funds set aside by specific action of the City Council, and unassigned fund balance), the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
Item 8.2
82 Section 570
OVERVIEW
This Debt Management Policy (the “Debt Policy”) may be amended by the Council as it deems appropriate from time to time in the prudent management of the City’s debt.
This Debt Policy is intended to comply with Government Code Section 8855(i), effective on January 1, 2017, and shall govern all debt undertaken by the City.
The City hereby recognizes that a fiscally prudent debt policy is required in order to:
• Maintain the City’s sound financial position.
• Ensure the City has the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
• Protect the City’s credit-worthiness.
• Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City.
• Ensure that the City’s debt is consistent with its planning goals and objectives and capital improvement program or budget, as applicable.
POLICY
A. Purposes For Which Debt May Be Issued
(i) Long-Term Debt. Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the City.
(a) Long-term debt financings are appropriate when the following conditions exist:
• When the project to be financed is necessary to provide basic services. • When the project to be financed will provide benefit to constituents over multiple years.
• When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
• When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring. (b) Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.
DEBT MANAGEMENT POLICY
Item 8.2
83 (c) The City may use long-term debt financings subject to the following conditions:
• The project to be financed must be approved by the City Council. • The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%.
• The City estimates that sufficient revenues will be available to service the debt through its maturity.
• The City determines that the issuance of the debt will comply with the applicable state and federal law.
(ii) Short-term debt. Short-term debt may be issued to provide financing for the City’s operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be used to finance short-lived capital projects; for example, the City may undertake leasepurchase financing for equipment.
B. Types of Debt
The following types of debt are allowable under this Debt Policy:
• General obligation bonds
• Bond or grant anticipation notes
• Lease revenue bonds, certificates of participation and lease-purchase transactions • Other revenue bonds and certificates of participation • Tax and revenue anticipation notes
• Land-secured financings, such as special tax revenue bonds issued under the Mello- Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes
• Tax increment financing to the extent permitted under state law • Conduit financings, such as financings for affordable rental housing and qualified 501c3 organizations
The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy.
Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the Issuer in a specific circumstance.
C. Relationship of Debt to Capital Improvement Program and Budget The City is committed to long-term capital planning. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s capital budget and the capital improvement plan.
The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues.
The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.
Item 8.2
84 The City shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes.
The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.
The City shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund.
D. Policy Goals Related to Planning Goals and Objectives The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the City’s annual operations budget.
It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.
The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.
When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations (i) Minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and
(ii) Present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.
E. Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.
The City will periodically review the requirements of and will remain in compliance with the following:
• Any continuing disclosure undertakings under SEC Rule 15c2-12, • Any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and • The City’s investment policies as they relate to the investment of bond proceeds.
Item 8.2
85 Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The Issuer will submit a requisition only after obtaining the signature of the City Manager or his/her designee.
Item 8.2
86 Section 580
OVERVIEW
This policy documents requirements and responsibilities to be followed regarding borrowing between funds of the City of Mountain House.
The purpose of this policy is to ensure that all interfund loans are appropriate, properly documented, and not established to the detriment of the fund issuing the loan.
POLICY
Interfund loan recommendations and agreements must include the loan amount, an identified repayment source and the date or timing of repayment.
The agreements may include an interest component that equals the investment earnings the fund would have received had the loan not occurred, with the following exceptions:
• Amounts loaned from the Water, Wastewater and Stormwater funds to other City funds must include an interest component.
• Amounts loaned to Developer funds must include an interest component.
When it is determined that interest will be paid by the borrowing fund to the lending fund, the amount of interest to be charged will be calculated using the rate investment rate earned by the San Joaquin County Treasury.CityLocal Agency Investment Fund (LAIF).
The City Council must approve by resolution all interfund loans.
Payments made on outstanding loans shall be reflected in the proposed and adopted operating budget and in the annual financial statements. The annual financial statements will also include the loan amount, term, rate of interest, and amount of interest due on the total amount of the loan.
Interfund loan agreements will be reviewed and approved by the Council annually.
DEFINITION
Interfund loans are loans from one City fund to another City fund for a designated purpose.
Interfund loans may be made for the following reasons:
• To offset timing differences in cash flow
• To provide financing for interim financing in conjunction with obtaining long-term financing
INTERFUND LOAN POLICY
Commented [KP30]: By the City?
Item 8.2
87 • For short-term borrowing in place of external financing • To provide operating capital for utility funds while the customer base increases • For other needs as deemed appropriate by the City Council Interfund loan monies may only be used for the purpose identified in the authorizing resolution.
Records of interfund loan transactions will be maintained in accordance with generally accepted accounting principles and will reflect the balances of loans in every fund affected by such transactions.
Item 8.2
88 Section 610
OVERVIEW
The purpose of these guidelines is to set forth standards, responsibilities and procedures for the prudent investment of pooled cash and cash held by fiscal agentsmanagement of cash and investments.
POOLED CASH
The City’s cash is Except for amounts held by fiscal agents in accordance with bond ordinancesindentures, the Master Acquisition and Reimbursement Agreement, and other in special deposits as approved by the City Council, in the San Joaquin County Treasury, and in the City’s operating bank accounts all of the City’s cash is deposited in the San Joaquin County Treasury. The City maintains cash not needed for current operations in the San Joaquin County pooled cash fund for the purpose of increasing interest earnings. County maintains a cash and investment pool that is available to all for funds for which the County Treasury is the depository, for the purpose of increasing interest earnings through investment activities.
Funds held in the County’s investment pool are invested in accordance with the County’s Investment Policy, which is presented below. The “OUTSIDE AGENCIES” section of the County’s policy provides that all agencies placing funds in the County pool must comply with the County’s investment policy. The City also has bank accounts which contain pooled cash funds used for operating expenses.
CASH WITH FISCAL AGENTS
All of the City’s restricted investments are held by fiscal agents in various accounts for the purpose of paying principal and interest on and establishing reserves for outstanding bonds and for paying down the pledged notes payable. Cash with fiscal agents is invested in accordance with applicable bond ordinances and agreements with developers.
BANK ACCOUNTS
The City Manager or his/her designee is authorized to open and close bank and investment accounts as deemed appropriate and necessary to accomplish the business objectives and activities of the City. Authorized signers will include the Administrative Services Director, Finance Director and Accounting Manager. The accounts will be utilized, recorded and reconciled in accordance with the policies contained in Sections 630 and 640 of this Manual.
INVESTMENT POLICYCASH AND INVESTMENTS
Commented [KP31]: Need to update
Commented [KP32R31]: ADD - The City also has bank
account that contains pooled cash funds used for operating expenses.
Item 8.2
89 Section 610
INVESTMENT POLICY
'
1.0POLICY
The Investment Policy establishes the criteria for the prudent investment of pool participants' surplus treasury funds and outlines the policies for maximizing the efficiency of the San Joaquin County (County) cash management system. In addition, the Investment Policy governs the deposit, safekeeping, and investment of all funds under the control of the County Treasurer (Treasurer), as well as all related transactions and investment activities. It does not apply to bond funds or other affiliated public agency assets that reside outside of the County's Investment Pool.
The Investment Policy shall be reviewed annually by the Treasurer with the Treasury Oversight Committee. Any modifications made thereto must be approved by the County Board of Supervisors and adopted by resolution. No person may engage in an investment transaction except as provided under the terms of this policy. The Treasurer shall establish written investment policy procedures.
2.0 OBJECTIVE
The objective of the Investment Policy is to enhance the economic status of all Investment Pool participants while protecting their surplus treasury funds. The County operates its investment program under the "Prudent Investor Standard" set forth by Government Code Section 53600.3. This affords the County a broad spectrum of investment opportunities provided that the investment is deemed prudent and is allowable under current legislation of the State of California.
The criteria and priority for selecting investments are as follows:
(a) Safety. Safety of principal is the foremost objective of the County's investment program. The safety and risk associated with an investment refers to the potential loss of principal and/or interest. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the Investment Pool.
(b) Liquidity. Liquidity refers to the ability to access cash at any time with minimal risk of losing some portion of principal or interest. The Investment Pool will remain sufficiently liquid to enable the County to meet all anticipated operating requirements. Liquidity is an important investment quality considering an unanticipated need for funds may arise. (c) Yield. Yield is the potential dollar earnings that an investment can provide and is also referred to as the rate of return. Return on investment is of secondary importance compared to the safety and liquidity objectives described above.
3.0 DELEGATION OF AUTHORITY
The County Board of Supervisors, as permitted under Government Code 53607, delegates the responsibility to invest or reinvest the funds of the County or to sell or exchange securities so purchased, to the Treasurer who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the Treasurer.
Commented [KP33]: Do we leave the County Investment
policy in? Do we update language to City?
Item 8.2
90 4.0 GENERAL CONSTRAINTS
The following criteria represents the general framework within which the County's Treasury investment program shall be conducted:
(a) The laws of the State of California and the Prudent Investor Standard shall be the primary standards by which all County Treasury investments are transacted. (b) Surplus treasury fund management and investment transactions are the responsibility of the Treasurer.
(c) The Treasurer strives to maintain the level of investment of all funds as near 100 percent as possible through daily projections and cash flow forecasting. (d) The basic premise underlying the County's Investment Policy is to ensure that the pooled funds are always safe and available when needed.
(e) Surplus treasury funds are all funds which are not required to meet the bank's demands on the Treasury to redeem warrants or cover other County disbursement obligations on any given day.
5.0 CONSTRAINTS SET BY GOVERNMENT CODE
Government Code Sections 53601 and 53635 impose restrictions on the investments of government entities. All such restrictions are to be adhered to in their entirety. In addition, the Treasurer may impose further restrictions to investments if the Treasurer deems such action appropriate. Such action is deemed appropriate with the following section listing the only authorized investments of the County.
6.0 AUTHORIZED INVESTMENTS
The County's authorization to invest is limited to the securities categorized below. All securities must be U.S. dollar denominated. The restrictions specified in Government Code Sections 53601 and 53635 apply unless otherwise stated. Authorized investments are as follows:
(a) United States Treasury Bills, Notes, and Bonds (Maximum of 100%) United States Treasury Bills, Notes, and Bonds for which the full faith and credit of the United States are pledged for the payment of principal and interest. Zero Coupon issues of these types of investments are authorized. There is no percentage limit on the total dollar amount that may be invested in this category.
(b) Obligations issued by a Federal Agency or a U.S. Government Sponsored Enterprise (GSE) (Maximum of 100%)
Federal Agency issues of the Federal National Mortgage Association (also known as Fannie Mae and/or FNMA), and the Federal Home Loan Mortgage Corporation (also known as Freddie Mac and/or FHLMC), the Federal Farm Credit Bank System (also known as FFCB), and the Federal Home Loan Bank (also known as FHLB).
Item 8.2
91 Debentures, Zero Coupon, Discount Notes, or Floaters of the above issuers are authorized. There is no percentage limit on the total dollar amount that may be invested in this category.
(c) State Obligations and California Local Agency Bonds (Maximum of 100%) Registered Treasury Notes, Bonds or Warrants as defined in Government Code Section 53601. There is no percentage limit on the total dollar amount that may be invested in this category.
(d) Local Agency Investment Fund
Local Agency Investment Fund (LAIF) of the State of California is an investment alternative created pursuant to Government Code Section 16429.1 for California's local governments and special districts. LAIF purchases securities under the authority of Government Code Section 16430 and 16480.4. The Treasurer may invest up to the maximum amount permitted by LAIF. Due diligence must be conducted on an annual basis.
(e) California Asset Management Program
California Asset Management Program (CAMP) is a California Joint Powers Authority, short- term, highly liquid money market account organized pursuant to Government Code Section 6509.7. The CAMP pool is a permitted investment under Government Code Section 5360l(p). The CAMP deposit limit is calculated at 10 percent of their total portfolio. Due diligence must be conducted on an annual basis. (f) Repurchase Agreements (Maximum of 100%)
Term repurchase agreements may be collateralized by either U.S. Treasury Securities or by any U.S. Federal Agency security.
Regardless of maturity, repurchase agreements must be collateralized at 102 percent (market value plus accrued interest). Repurchase agreements shall only be made with dealers with assets in excess of $500 million and having either the highest commercial paperrating, of A or higherrating forthe issuer's debt, if any, as provided by a nationally recognized statistical- rating organization (NRSRO). There is no percentage limit on the total dollar amount that may be invested in this category.
All Repurchase Agreements with brokers/dealers will be done through a "Tri-Party Custodian Agreement" that has been approved, in writing, by the Treasurer.
All Repurchase Agreements with commercial banks will be governed by a Public Securities Association (PSA) agreement that has been approved, in writing, by the Treasurer.
Item 8.2
92 (g) Banker's Acceptances(Maximum of 40%)
Bills of Exchange or Time Drafts (referred to as Banker's Acceptances). Banker's Acceptances may not exceed 40 percent of the investments and no more than 30 percent may be invested in the Banker's Acceptances of one commercial bank. The limit for each issuer may be specified in the Treasurer's "Approved Banker's Acceptance Issues".
(h) Medium Term Notes(Maximum of30%)
Corporate Debentures (Medium Term Notes), other than those of security or insurance firms that have a rating in the highest or second highest categories of a NRSRO. The maximum maturity ofsuch issues isthree years. Floaters of the above issues are authorized as long as the maximum maturity does not exceed three years.
Medium Term Notes must be issued by corporations organized and operating within the United States. Medium Term Notes may not exceed 30 percent of the Investment Pool.
(i) Time Deposits (Maximum of 30%)
Certificates of Deposits issued by nationally or state-chartered bank, savings association, federal association, orstate-licensed branch of a foreign bank. The bank must have a branch or office in the County. The bank must have a rating in the highest or second highest categories of an NRSRO. The limit for each issuer is specified in the Treasurer's "Approved Negotiable Certificates of Deposit List." Certificates of Deposit may not exceed one year maturity and may not exceed 30 percent of the Investment Pool. The collateralization level will be 110 percent of market value for Certificate of Deposits.
(j) Commercial Paper (Maximum of30%)
Commercial Paper is an unsecured, short-term debt instrument issued by a corporation. Commercial Paper must have the highest categories of an NRSRO. The maximum maturity of commercial paper is 270 days. The limit for each issuer is specified in the Treasurer's "Commercial Paper Approved List". Commercial Paper may not exceed 30 percent of the Investment Pool.
(k) Mutual Funds (Maximum of20%)
Mutual Funds, as defined in Government Code Section 53601 that consist only of those investments authorized by the Investment Policy. Mutual Funds may not exceed 20 percent of the investments. A thorough investigation of the fund is required prior to investing and due diligence must be conducted on an annual basis. (1) Bank Deposits (Maximum of 10%)
Bank Deposits are interest-bearing active deposits in a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company.
Item 8.2
93 These deposits must be properly collateralized at 110 percent in accordance with Government Code Section 53652. Deposits with any one depository cannot exceed 10 percent of the Investment Pool.
(m) Specific Securities (Maximum per Approval)
Specific securities as specified in the ordinance, resolution, indenture, or agreement for monies pledged to the payment or security of bonds or other indebtedness as governed by Government Code Section 5360l(m) must receive written approval from the Treasurer.
7.0 DIVERSIFICATION
It is the policy of the Treasurer to diversify the pooled funds. Investments are diversified to minimize the risk of loss resulting in an overconcentration of assets in a specific maturity, issuer, or class of security. Diversification strategies shall be established by the Treasurer and periodically reviewed.
8.0 MATURITY STRUCTURE
The maturity of investments, excluding investments that have been specifically matched to a bond issue maturity, are subject to the following restrictions at the time of purchase:
(a) A minimum of25 percent of the entire Investment Pool is to mature within 60 days. (b) A minimum of 50 percent of the entire Investment Pool isto mature within one year. (c) A minimum of 75 percent of the entire Investment Pool isto mature within three years. (d) A maximum of25 percent of the entire Investment Pool may mature within three to five years.
If for any reason the Investment Pool is not in compliance with the maturity percentages, all new investments will be restricted to a maturity of 60 days or less until compliance is restored.
The Treasurer must give written approval for all purchases of securities with a maturity of one year or longer.
9.0 DEALER APPROVAL
All :financial institutions used for the placement of investments, must be approved by the Treasurer in writing. The creditworthiness of all financial institutions will be reviewed by the Treasurer.
The Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the County.
The Treasurer will not approve any broker, brokerage, dealer, or securities firm that has, within the past two years, made a political contribution in an amount exceeding the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Board, to the Treasurer, any member of the Board of Supervisors, or any candidate for these offices.
Item 8.2
94 All brokers are provided with the updated Investment Policy on an annual basis.
10.0 COMPETITIVE BIDDING
Bids for any investment shall be taken from a minimum of two banks or broker/dealers. Awards will be made to the highest offer, giving consideration to safety, liquidity, a balanced investment pool, and diversification. If two bids for a similar investment security are unavailable, then the second bid may be for another investment security with a similar maturity.
11.0 SWAPS AND TRADES
Securities may be swapped and traded for other eligible securities after calculating the gain between the buy and sell candidates in the transaction and approval by the Treasurer.
12.0LOSSES
Generally, losses are acceptable on a sale before maturity and may be taken if reinvested proceeds will earn an income flow with a present value higher than the present value of the income flow that would have been generated by the original investment.
13.0 SAFEKEEPING
Securities purchased from broker/dealers shall be held in third party safekeeping by the trust department of the County's bank or other designated third party custodian and in the County's name. The third party custodian shall be required to issue a safekeeping statement listing specific instrument, rate, maturity, and other pertinent information. No securities will be held by the broker/dealer from whom they were purchased.
Safekeeping of Repurchase Agreements and Collateralized Non-Negotiable Certificates of Deposit are stipulated in the section titled "Authorized Investments of the County".
14.0 CONFIRMATION
All investment confirmations are to be reviewed for conformity with the original transaction.
Discrepancies are to be reported to the Treasurer.
15.0 INTERNAL CONTROLS
The Treasurer shall establish internal controls to provide reasonable assurance that the investment objectives are met and to ensure that the assets are protected from loss, theft, or misuse. The Treasurer shall also be responsible for ensuring that all investment transactions comply with the Investment Policy and Government Codes.
The Treasurer shall establish a process for daily, monthly, quarterly, and annual reviews and the monitoring of investment program activity. Daily, the Treasurer or authorized Treasury personnel shall review the investment activity, as well as corresponding custodial and commercial bank balances and positions for compliance with the Investment Policy and guidelines. The County Auditor-Controller's Office or the contracted external auditor shall conduct an annual audit of the investment program's activities.
Item 8.2
95 16.0 PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with investment risk constraints and cash flow needs.
The Treasurer's investment strategy is both passive and active. Given this strategy, the basis used by the Treasurer to determine whether market yields are being achieved shall be to identify a comparable benchmark to the investment duration. (i.e. 90-day U.S. Treasury Bill, six-month U.S. Treasury Bill, Average Fed Funds Rate). Benchmarks may be modified over time based on changes in market conditions or cash flow requirements.
17.0 CREDIT FOR INTEREST EARNINGS
Interest earnings from the Investment Pool shall be credited to participating entities each quarter. The credit is computed based on the average daily cash balance of funds on deposit during the quarter in the County Treasury.
In accordance with Government Code Section 27013, authorized costs of investing, depositing, banking, auditing, reporting or otherwise handling or managing funds will be deducted from the total interest earnings prior to the interest earnings apportionment.
18.0 DIRECTED INVESTMENTS
The Treasurer may allow special directed investments for Tax and Revenue Anticipation Note (TRANs) proceeds or other special purposes. The Treasurer will work with the entity to make a single directed investment. For proceeds between $10 million and $50 million, that investment will be in a
U.S. Treasury Bill. For proceeds in excess of $50 million, the investment can be in either a U.S. Treasury Bill or a U.S. Treasury Note. Upon the maturity of the investment, all funds will be deposited into the Investment Pool. Any funds from the TRANs sale, not included in the investment, will be placed in the Investment Pool. The charge for the investment will be $5,000, which is estimated to cover the actual expenses of the offices of the Treasurer and the County Auditor- Controller. These expenses may include paying agent, safekeeping, establishing of entity funds, tracking, and recording the investment. The Treasurer may negotiate a different charge if it is cost justified and appropriate. Directed investments will be separate from the Investment Pool.
19.0 OUTSIDE AGENCIES
Agencies not required to deposit funds with the County may place funds in the Investment Pool with the approval of the Treasurer. All agencies must comply with this Investment Policy. It is anticipated that most funds will be withdrawn from the Investment Pool by a warrant. Wire transfers must be arranged with the Treasurer.
Item 8.2
96 20.0 WITHDRAWALS
The Treasurer has determined that withdrawals less than $10 million will not negatively impact the structure of the Investment Pool. The Treasurer requires 24-hour notice on withdrawals of$1 million to $10 million, a minimum seven-day notice on withdrawals between $10 million and $25 million, and a 30-day notice for amounts exceeding $25 million. The Treasurer may reduce or waive the required notice. The Treasurer also reserves the right to work with any agency on the timing of a withdrawal exceeding $10 million if that withdrawal might affect the stability or predictability of cash flow in the County Treasury. The Treasurer may refuse any withdrawal above $25 million or any series of withdrawals in one month which exceed $25 million which may negatively impact the stability and predictability of cash flow in the County Treasury.
21.0 REPORTING
The Treasurer shall provide a monthly report to the County Board of Supervisors, County Administrator, County Auditor-Controller, and the County Treasury Oversight Committee itemizing all Treasury investments by investment type, institution, date of maturity, amount of investment, rate of interest, and current market value. Securities will be valued based on information from either the trustee, broker, the Wall Street Journal, or other sources approved by the Treasurer. The market value for Certificates of Deposit, Repurchase Agreements of less than 30 days, CAMP, and LAIF will be at cost. The report will include the weighted average maturity of the investments in the Treasury Pool, and a statement denoting the ability of the local agency to meet its expenditure requirements for the next six months.
22.0 COUNTY TREASURY OVERSIGHT COMMITTEE
The County Treasury Oversight Committee (Committee) will review and monitor the Investment Policy on an annual basis. The Committee shall require an annual audit to be conducted to determine the County Treasury's compliance with the law and the Investment Policy.
The Committee shall not direct individual investment decisions, select individual investment advisors, brokers, dealers, or impinge on the day-to-day operations ofthe County Treasury.
A member may not be employed by an entity that has contributed to the campaign of a candidate for the office of local Treasurer, or contributed to the campaign of a candidate to be a member of a legislative body of any local agency that has deposited fundsin theCounty Treasury, in the previous three years or during the period that the employee is a member of the Committee (Government Code Section 27132.1).
A member may not directly or indirectly raise money for a candidate for local Treasurer or a member of the governing board of any local agency that has deposited funds in the County Treasury while a member of the Committee (Government Code Section 27132.2).
A member may not secure employment with, or be employed by, bond underwriters, bond counsel, security brokerages or dealers, or financial services firms, with whom the Treasurer is doing business during the period that the person is a member of the Committee or for one year after leaving the Committee (Government Code Section 27132.3).
Item 8.2
97 Committee meetingsshall be open to the public and subject to the Ralph M. Brown Act.
23.0 INDEMNIFICATION
The standard of care to be used by the County's officers or employees in all investment transactions shall be the Prudent Investor Standard (Government Code Section 53600.3), which is expanded as follows:
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstancesthen prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs ofthe agency. Within the limitations of this section and considering individual investments as part of an overallstrategy, investments may be acquired as authorized by law.
The above criteria are established asthe standard for professional responsibility and shall be applied in the context of managing the Investment Pool. Investment officers acting in accordance with the Investment Policy shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion, and appropriate action is taken to control adverse developments.
24.0 ETHICS AND CONFLICT OF INTEREST
No officer, employee, or member of the Committee may directly or indirectly accept or solicit from any person, corporation, or group having a business relationship with the Treasurer or Treasury- related functions, any rebate, kickback, or anything of an economic value as a gift, gratuity, or honoraria.
No officer or employee of the Treasurer shall, outside of working hours, engage in any profession, trade, business, or occupation, which is incompatible or involves a conflict of interest with his/her duties as a County officer or employee.
Investment officials shall refrain from personal business activity that may conflict with proper execution and management of the policy and the investment program or which could impair their ability to make impartial decisions. Investment officials must provide public disclosure required under Government Code Section 87203, et seq.
The Treasurer and designated employees must annually file a Form 700 (Statement of Economic Interest) in accordance with the County's Conflict-of-Interest Code.
Item 8.2
98 25.0 BUSINESS CONTINUITY PLAN
In the event the Treasurer or authorized staff is unable to conduct normal business operations, the Treasurer has an agreement with the custody bank for a daily sweep of surplus funds into an interest-bearing account as well as the ability to transfer additional funds to money market and liquid accounts until normal operations are restored.
Restrictions pertaining to investment type, investment amount, and investment percentages, as stated in the Investment Policy, will be temporarily suspended to allow for continued operations.
Item 8.2
99 Section 620
OVERVIEW
This Investment Policy for Special Deposits (the “Deposit Investment Policy”) may be amended by the Council as it deems appropriate from time to time in the prudent investment of the City’s special deposits.
Policy Statement - The City is guided by three objectives in its investment of public funds.
In order of priority those objectives are:
1.1. Safeguarding of principal.
1.2. Ensuring that investments satisfy the liquidity needs of the City.
1.3. Obtaining an optimal rate return on available assets, commensurate with an appropriate level of risk.
2. Scope - This investment policy applies to all special deposit funds not required for the immediate operating needs of the City and are accounted for in the City’s monthly financial report.
3. Objectives: The priority ranked objectives of the City’s investment activities shall be:
3.1. Legality. Investments shall only be made in securities legally permissible by the California Government Code, Sections 53635, 53635.2 et seq.
3.2. Safety. Investments shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio. To attain this objective, diversification is required. Investments must be made in securities of high quality to avoid credit risk and loss of principal.
3.3. Liquidity. The investment portfolio must remain sufficiently liquid to enable the City to meet all foreseeable operating requirements.
3.4. Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return, taking into consideration policy objectives and cash flow characteristics of the portfolio.
4. Delegation of Authority - The City Council is responsible for the management and oversight of the investment program. Day to day management responsibility for the investment program is delegated to the City’s City Manager, who will ensure that the investment program is in accord with the Council’s directives. The City Manager shall be responsible for all transactions undertaken and will establish a system of controls to regulate the activities of appropriate staff members.
5. Prudence - Investments shall be made with time relevant judgment and care, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, and not for speculation, but for investment, considering the probable safety of principal as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio with aims to safeguard the principal and maintain the liquidity needs of the agency. The prudent investor
INVESTMENT POLICY FOR SPECIAL DEPOSITS
Item 8.2
100
standard states that when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the City.
6. Borrowing for Purposes of Making Investments - Management is prohibited from the practice of borrowing for the sole purpose of making investments.
7. Authorized Investments and Limits - The City Manager or his/her designee may only invest funds in the following secure and reliable permitted investments:
7.1. Investment in the California Local Agency Investment Fund (LAIF), San Joaquin County pooled cash account, California Asset Management Program (CAMP), or other professional investment services permitted for all local agencies under California Government Code Section 53601(p).. Funds shall be placed in LAIFwith these investment services as alternative liquid investments under this policy.
7.2. Shares of Beneficial Interest issued by diversified management companies, otherwise known as Mutual Funds, investing in the securities and obligations as authorized by the California Government Code, sections 53601 et seq.
7.3. United States Treasury Bills, Notes, Certificates of Indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.
7.4. Savings Accounts or Certificates of Deposit issued by a nationally or state chartered bank, or, savings association fully insured by the FDIC or FSLIC.
7.5. Deposit of funds in the County of San Joaquin Treasury Investment Pool.
7.6.7.5. U.S. Federal Agency or United States government-sponsored enterprise obligations, participations or other instruments issued by the Government National Mortgage Association (GNMA), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Association (FHLMC), the Federal Farm Credit System (FFCB), and the Federal Agricultural Mortgage Company/Farmer Mac (FAMCA).
7.7.7.6. Medium Term Corporate Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state operating within the United States. Notes eligible for investments under this subdivision shall be rated “A” or better by a nationally recognized rating service.
8. Maximum Maturities - To the extent possible, investments shall be made to match anticipated cash flow requirements. Furthermore, no investment with a term in excess of five years may be made.
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9. Internal Control - As part of the City’s annual independent audit, the investment program shall be reviewed for appropriate internal controls that provide assurance of compliance with policies and procedures.
10. Reporting - The City Manager shall provide the City Council with a quarterly report of investment activity verifying that the investment portfolio is in compliance with the City’s investment policy. The report will also include a statement indicating the City’s ability to meet its expenditure requirements for the ensuing six months or to provide an explanation as to why sufficient funds shall not or will not be available.
11. Ethics and Conflicts of Interest – Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.
12. Investment Policy Review - The City Council shall review the investment policy annually. The Council shall accept and approve the investment policy and any changes.
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Section 630
Objectives
The objectives of this bank and treasury reconciliation policy are as follows:
• Ensure the City’s books accounting records are kept with reasonably current balances for all cash and investment accounts owned by the City with reconciliations completed monthly by the end of each month for the preceding month. • Promptly identify and resolve errors made either by the bank, County Treasury, or investment custodian or errors made on the City’s books. • Promptly identify and resolve unauthorized activity occurring in the City’s accounts.
Segregation of Duties
Best practices in internal control assign the responsibility for reconciling a bank account to an individual who neither has the authority to authorize disbursement from the account nor makes entries in the accounting system impacting the account. The ability to fully segregate this function depends on staffing level and cost-benefit considerations. The Finance Department will consider
these best practices as well as the City’s business needs when assigning an individual to the bank reconciliation function.
County Treasury and other Investment Accounts
The combined balance of cash and investments in the San Joaquin County and with other investment services EFS system in all funds beginning with 478 will be reconciled on a monthly basis to the City’s general ledger balances in the 1111 object accounts using the pooled cash report defined for this purpose. The following describes the detailed procedure to be followed.
1. By the 15th day of each month, the Finance Department personnel responsible for reconciling the County Treasury pooled cash account will obtain the County Treasury balance from the San Joaquin County EFS system and pull a pooled cash report from the Tyler Incode 10 system for the end of the previous month.
2. The reconciler will compare the activity posted between the City’s general ledger system and the County, listing the exact amount of each item causing a difference. The reconciler will compare vendor names in the County system to the names posted in the City’s general ledger system. The reconciler may write off trivial amounts that are not worth the time it would take to research. The reconciler may employ any or all of the following procedures to identify the difference:
a. Verifying that all County-initiated journal entries (“SSTs”) and property tax revenues posted by the County have been posted to the City’s GL as well. b. Verifying that all utility refund batches sent to the County for payment have been recorded in the GL for the month.
c. Determining whether any accounts payable check batches or deposits sent to the County for processing and posted to the City GL near the end of the previous month were not posted by the County to the EFS until after the end of the month.
BANK, INVESTMENT, AND COUNTY TREASURY RECONCILIATION
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d. Comparing detailed transaction lists from the City GL and the County EFS and marking off items that are accounted for in both lists to identify the items that are different.
e. Re-running the pooled cash report for the last month that had previously been reconciled and comparing it to the report that was originally used when that reconciliation was done to determine if a back-posting to a previous month in the GL may have occurred.
3. After identifying any differences, the reconciler will complete the reconciliation by submitting the following documents for review to a reviewer who is not typically involved in executing or routinely reviewing the day-to-day cash receipting or disbursing processes, such as the Administrative Services Director or Finance Director:
a. County EFS printout showing the balance in the County Treasury at the end of the previous month
b. Tyler Pooled Cash Report as of the previous month end c. Listing of any differences between the two
d. Supporting documentation for any significant differences that will carry forward into the following month
4. After reviewing the bank reconciliation and supporting documents and determining that any differences appear appropriate, the reviewer will initial or otherwise indicate review of the bank reconciliation packet, which will then be filed.
Utility Payment Lockbox
On a monthly basis by the 15th day of each month, the Finance Department will reconcile the utility payment lockbox account for the previous month according to the following procedure:
1. First, the deposits and withdrawals from the Utility Payment Lockbox account will be reconciled to the i3 Verticals, LLC AVR reports as follows. a. Using a template designed for this purposes, the Finance Department will recompute the ending balance in the lockbox account using the total payments received reported in the utility billing system. This will ensure that if the total payments received in the lockbox do not match the payments received in the billing system, the difference will be identified.
b. The reconciliation will account for the differences identified, including the following common differences:
i. Timing differences such as payments included in the utility billing system in a different month from the month they are deposited into lockbox bank account.
ii. The receipt of customer deposits and overpaid amounts in the current month in the lockbox account that will not be applied to a customer account until a future month.
iii. The application of customer deposits and prior month overpayments to customer accounts which result in a reduction to the customer account balance in the current month for payments that may have been posted to the lockbox account in previous months.
iv. Merchant processing fees, bank service charges, and other fees deducted Commented [KP39]: Change to i3 Verticals?
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from the bank account but not accounted for in the utility billing system. v. Refunds on closed accounts that may be treated as a negative payment in the billing system even though the refund payment is not actually made from the lockbox account and therefore does not impact the lockbox bank balance.
2. After reconciling the activity in the lockbox bank account to the utility billing system, the Finance Department will post the monthly journal entry to record the utility billing activity in the subsidiary system. The entry will be designed to eliminate timing differences in the ending account balance by distributing those differences out to revenue accounts and then reversing them in the following month.
3. After the posting of the utility billing journal entry for the month, the Finance Department staff will verify that the total balance in the 1116 Cash in Lockbox account in the General Ledger matches the ending balance in the lockbox bank account.
Other Bank Accounts
For any other bank or investment accounts, the Finance Department will compare the statement balances to the General Ledger on a monthly basis and make the appropriate adjustments by the end of the following month. The reconciling items for other bank accounts will be typically minimal.
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Section 640
OVERVIEW
City of Mountain House’s offices and facilities are located approximately 27 miles from the San Joaquin County Treasurer’s Office in Stockton. Because the San Joaquin County Treasurer serves as the City’s treasurer pursuant to Government Code Section 61052, the City is required to transport checks for deposit to the County Treasury and to obtain warrants drawn on the County Treasury to pay the City’s obligations. The physical distance between the two locations makes frequent deposits, a best practice in internal control, more challenging. The City currently utilizes desktop deposit technology to scan and deposit incoming checks at the City for incoming customer utility payments, which are deposited to a designated account, and would like to implement similar desktop deposit technology for nonutility payments as well to facilitate faster clearing of incoming funds. The City also has recurring bills with a short window of time to make payment and is left with an extremely short turn-around time to submit these bills to the County for processing to ensure the payments are disbursed timely and penalties avoided.
Government Code Section 53952(b) permits the City to establish a revolving fund in an amount not to exceed one hundred and ten percent (110%) of one twelfth (1/12) of the City’s adopted budget for the current fiscal year.
Deposit of Incoming Payments to Imprest/Revolving Account For all incoming check payments that are not utility payments, amounts and payment details will be logged on the City’s incoming revenue log. The incoming checks and any supporting documentation will be placed in a secured container in the Accounting Manager’s office. Key access will be limited to the Accounting Manager and Finance Director. The City will then deposit all incoming checks to its imprest/revolving account, preferably using desktop deposit technology where the checks are scanned and deposited right in the City’s Office. The imprest account is currently at Wells Fargo Bank; City staff will not have ability to add accounts to the desktop technology. The bank will control access to the system with user names and passwords.
A Finance Department staff member will compare the incoming revenue log total with the total deposited by desktop deposit. After resolving any differences, the Finance Department staff member will post a deposit to the Incode General Ledger system 1112 imprest/revolving account.
All incoming checks subject to this policy should be deposited to the imprest/revolving account within two (2) business days of receipt. Checks that have been deposited successfully through desktop deposit should be bundled by deposit date and maintained in a secure location. If the City receives a check that cannot be scanned using the desktop technology,
IMPREST CASH CHECKING ACCOUNT POLICY
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the maker will be requested to provide a replacement and the original payment will be stored in the secure container until a replacement is successfully deposited. The original payment will then be voided and returned to the maker.
Maximum Balance and Deposit of Excess to County Treasury The City intends to maintain no more than three-hundred thousand dollars ($300,000) in the imprest/revolving account on an ongoing basis. When the balance exceeds this amount continuously for more than two (2) weeks, a Finance Department staff member will prepare a check payable to the County Treasury and deposit the excess funds in the County Treasury.
Allowable Uses of Funds from Imprest/Revolving Account
Other than flowing into the County Treasury, the funds in the imprest/revolving account will be used sparingly in the discretion of the Finance Department and in any event may only be used to pay for lawful expenses or obligations of the City that meet both of the following two criteria:
• The expense or obligation is currently or routinely required to be paid within a short time period that creates uncertainty as to whether it will be processed timely if payment is made through the County Treasury OR is five hundred dollars ($500) or less, AND;
• The payment is to a payee who is exempt from IRS form 1099 reporting (e.g. a governmental entity or corporation) or is of a nature that is exempt from 1099 reporting by reason other than dollar amount (e.g. accountable plan reimbursement to an employee, which would never be subject to 1099 reporting regardless of dollar amount). Payments that would be subject to 1099 reporting but for the fact that they fall below six hundred dollars ($600) are not permitted, because of the potential for multiple payments to occur within one year.
Examples of allowable uses are (this list is not all-inclusive):
• Electric utility bills paid to a government agency exempt from 1099 reporting where there is a short time before payment is due
• Payment of State Disability Insurance taxes where there is a short time before payment is due
Signature Authority
Checks drawn on the imprest/revolving account may be signed by any of the following:
• Administrative Services Director
• Finance Director
• Accounting Manager
Signers of checks drawn on the imprest/revolving account will review backup documentation and ensure the proposed disbursement is consistent with this policy prior to signing any checks.
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Disbursement Procedure
• The imprest/revolving account will be set up as a Cash in Other Banks account (GL object 1112) in the Tyler Incode General Ledger system. All disbursements from the imprest/revolving account will be prepared using the Incode General Ledger system. • Check stock for the imprest account will be stored in a locked safe. • One of the authorized signers noted above may designate a list of obligations that will routinely be paid from the imprest/revolving account. Any transaction not so designated must be approved for use of this procedure prior to preparation of the check.
• Where feasible, a Finance Department staff member other than an authorized signer should prepare all checks for disbursement from the imprest/revolving account after reviewing appropriate backup documentation.
• Backup documentation supporting the transaction should be attached to the vendor invoice within Incode.
• Checks and supporting documentation will be presented to an authorized signer for a physical (wet) signature. No signature stamps, check signing machines, or signature images will be permitted.
• After the check is signed, the Finance Department staff member preparing the check will distribute it to the appropriate party.
Bank Reconciliation
The imprest/revolving account will be reconciled to the Incode general ledger account on a monthly basis by the end of the month following the month being reconciled. A Finance Department staff member who is not involved in the disbursement process should reconcile the account using the following procedure:
1. Obtain the bank statement directly from the bank online or unopened in the incoming mail.
2. Compare the transactions on the bank statement to transactions recorded in the 1112 General Ledger account for the imprest/revolving account.
3. Inspect copies of checks clearing the account to determine the check vendor on the check appears consistent with the vendor shown in Incode for that check.
4. Prepare and sign a reconciliation report identifying all differences (such as individual outstanding checks) between the bank statement balance and the General Ledger balance.
5. If the balance in the account has exceeded $300,000 for two consecutive weeks, recommend that a check be written to deposit excess funds in the County Treasury.
6. Submit the reconciliation report on a rotating basis for review to each of the authorized signers on the imprest/revolving account.
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Section 710
New Service
Inframark TheCustomer Care Service department will process all requests to establish service.
Homeowner may email or fax completed service order along proof of ownership to Inframark.
Inframark will set up in AVR billing system. Inframark sends a log each night to the City and Inframark Field Reps of all new accounts.
Final Account (Close Account)
Inframark Customer Service Care department will process all requests to stop service.
Homeowner may email or fax required documents to Inframark Customer CareCustomer Service department. Inframark sends a log each night to the City and Inframark Field Reps of all discontinued accounts.
Monthly Billing and Payments
Inframark processes all monthly billing using the AVR program. Payment options are as follows:
• Mail to: City of Mountain House – PO Box 684000, Houston, TX 77268 • In person (check, cashier’s check, money order): City of Mountain House – 251 E.
Main Street, Mountain House CA 95391
• Drop Box (check, cashier’s check, money order) at City of Mountain House office – Box is emptied at 4:30 pm (PST)
• Online at www.mountainhouseca.gov
• Pay by phone (800) 441-4501
• Scan to Pay on the bottom of your bill
• Automatic Bank Draft – Call 855-327-0900 for information Payments mailed to the Houston address and all electronic payments are processed by i3 Verticals, LLC AVR and deposited to the City of Mountain House Lockbox Wells Fargo Bank account.
A Customer Service Representative (CS Rep) will process payments made at City of Mountain House into the i3 Verticals, LLC AVR system. The Customer Service Representative then gives the checks to the Accountant who scans the checks and performs a desktop deposit to deposit the funds to the Wells Fargo Lockbox account.
Delinquent Notices
Inframark The City will calculate and process delinquent notices for all accounts that have not paid by the due date. Inframark will then mail notices to each customer.
UTILITY BILLING AND PAYMENTS
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48-hour door tags
Inframark The City will calculate the 48-hour door tag file. They will then send the file to the City. The City will print the tags. An Inframark field representative will hang the tags on the property.
Disconnect for non-payment
Inframark will calculate the disconnect list/file. They will then send it to the City for approval.
A City Customer Service Rep will review each account. CS Rep will review recent notes and payments along with any possible order to close account due to sale. Upon approval, Inframark will then add fees to account ($100.00 Cut-Off Charge + $300 Deposit). The City will print the tags. An Inframark field representative will hang the tags on the property and disconnect the service.
Customer must call Inframark the City Customer Care Service Department with confirmation number after making payment. The Customer Service Care Department will confirm payment and generate an order to have service restored.
Liens
A City Customer Service Rep will run a Collection Accounts Detail Listing for all accounts with a delinquent balance of $500.00 (amount subject to change) at the beginning of each month. Rep will review each account status, recent notes, payments, amortization plans and check to see if the account holder is an owner or tenant.
After attempting to contact the customers with a delinquent balance and/or sending a courtesy letter, CS Rep will prepare the appropriate paperwork to record a property lien against the customer’s property, which will assist the City in collecting the past due funds if the property sells to a new owner. CS Rep will present the lien paperwork to the Administrative Services Director, Finance Director, or Accounting Manager for signature. After receiving the appropriate signature, CS Rep will file the paperwork with the County Recorder to record the lien.
On an annual basis, CS Rep will mail Lien Notification letters to the owner of each property by certified mail. CS Supervisor will add $100.00 lien fee to the account. CS Rep will log account information on the Lien Tracking spreadsheet and on the account. The owner will have 10 days from the date of the letter to appeal. CS Supervisor will notify Tracy Press (via email) to run lien publication 10 days prior to City Council Meeting. CS Supervisor will submit a listing of unpaid accounts to the Administrative Services Director to be included on the Staff Report. City Council will review and approve for lien or give further collection instructions. City Manager and City Secretary will sign & notarize documents. CS Rep will send documents to San Joaquin County for recording. CS Supervisor will review all unpaid liens and roll them over to the County tax roll in August. CS Rep will have the lien amount written off in AVR by Inframark.
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Collection on Closed Accounts
CS Supervisor will run a Collection Accounts Detail Listing each month and review accounts that are delinquent for 30+ days. Supervisor will review owner information, payment information, account notes and new account holder. If the account holder was a tenant, the unpaid balance will be transferred to the owner’s account. If the property has been sold and is currently in a new owner’s name then the unpaid balance will be sent to collections. CS Supervisor will log account information on a spreadsheet and email to Inframark the City in order to have the money transferred or sent to Collections Unlimited.
Reconciliation
At the end of each month, the Accountant downloads the bank statement for the Wells Fargo Lockbox account. S/he also receives a “Daily Cash Sheet” or “Batch Sheet” for the month that summarizes all of the payments processed in AVR for the previous billing cycle via email from an Inframark representative. The report lists payments by date and payment type only, but the totals agree to the AVR reports for the previous billing cycle. Using these two reports, s/he determines the transactions that posted to either the bank account or AVR but not both and completes a reconciliation identifying the reconciling differences between the two. After adjusting for outstanding items, the balance in the Wells Fargo Lockbox account should agree to the ending balance of undistributed overpayments per the AVR End of Month Recap, since the undistributed overpayments should be retained in the lockbox account until they are ultimately distributed to the various categories of collections (i.e. garbage, water operating, water debt, sewer operating, etc.).
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Item 8.2
TITLE: Award Various Landscape Maintenance Service Contracts MEETING DATE: June 11, 2025
PREPARED BY: Doug Louie, Operations and Maintenance Superintendent Jodi Almassy, Deputy City Manager
RECOMMENDATION
Staff recommends that the City Council award and authorize the City Manager to execute the following seven contracts for City Landscape Maintenance Services, for a combined total of $12,182,394.10, as solicited through the respective Requests for Proposals (RFPs), and authorize the City Manager to execute an optional three-year extension to each contract, at the original rates and terms.
BrightView Landscape Services, Inc. for one contract totaling $2,154,898.67:
• North Parks District (RFP No. MH2501) for five years, through June 30, 2030.
Gachina Landscape Management, Inc. for five contracts totaling $7,896,345.19:
• South Parks District (RFP No. MH2502) for $2,366,256.94 for five years, through June 30, 2030. • North-South Arterials District (RFP No. MH2504) for $4,144,035.71 for four years, through June 30, 2029.
• Downtown and Government Buildings District (RFP No. MH2505) for $294,672.03 for three years, through June 30, 2028.
• Weed Abatement District (RFP No. MH2506) for $803,550.74 for three years, through June 30, 2028.
• Community Facilities District (RFP No. MH2507) for $287,829.77 for three years, through June 30, 2028.
Odyssey Landscaping, Inc. for one contract totaling $2,131,150.24:
• East-West Arterials (RFP No. MH2503) for four years, through June 30, 2029.
It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to implement the purpose and intent of these contracts.
BACKGROUND
The City’s current citywide landscape maintenance contract with BrightView Landscape Services, Inc. expires on June 30, 2025.
Since 2003, landscape maintenance services have been provided by a single contractor, BrightView Landscape Services, Inc. At the time of the last contract award on June 12, 2019 by the Mountain House Community Services District Board of Directors, the total cost of citywide landscape maintenance was approximately $1.3 million. Today, that annual cost has increased to over $2.031 million, reflecting the City’s continued growth and the expansion of its maintained areas. The contract is funded through the Special Assessment Funds, Utility O & M Funds, and Landscape Maintenance Assessment District Nos. 2016, 2008-1, and 2019.
Item 8.3
Over the past two decades, the City has experienced substantial development. The total landscaped area now exceeds 14 million square feet, including approximately 4 million square feet of arterial roadways, 4 million square feet across 11 public parks, and numerous other sites such as government facilities, utility properties, designated weed abatement zones, and “Community Facilities Districts”, specifically, the City’s Landscape Maintenance Assessment District (LMAD) areas.
As the City continues to build out, maintaining all these areas under a single contractor has become increasingly inefficient and operationally challenging. The one-contractor model no longer supports the scale, complexity, or service demands of a growing city.
To address this, staff developed a strategic maintenance district layout, dividing the City into seven distinct service areas. Parks and arterials were each split into two zones, with the remaining categories (CFDs, government facilities, and weed abatement) forming the balance. The intent is to award similar districts to different contractors to increase competitiveness and improve service quality.
Contract durations have also been staggered to promote a consistent bidding cycle and ensure management transitions over time. This approach enhances flexibility, distributes workload, and positions the City to better respond to changing service needs and performance outcomes.
While this new multi-contractor model brings benefits, it also introduces complexity. Splitting contracts requires increased coordination, communication, and oversight to ensure consistency in service quality and adherence to standards across districts. To support this, the Fiscal Year 2024-25 Budget includes funding for a Program Manager position dedicated to the Operations and Maintenance Division.
Recruitment for this position is currently underway. In addition, the Fiscal Year 2025-26 Budget includes a request for a Senior Maintenance Worker to help oversee contractor performance. These positions are critical to maintaining the quality and value of the City’s landscaping assets.
DISCUSSION
On March 7, 2025, the City issued multiple Requests for Proposals (RFPs) to solicit landscape maintenance services across seven distinct service areas to better align with operational needs and geographic distribution:
• RFP No. MH2501 – North Parks District
• RFP No. MH2502 – South Parks District
• RFP No. MH2503 – East-West Arterials District
• RFP No. MH2504 – North-South Arterials District
• RFP No. MH2505 – Downtown and Government Buildings District • RFP No. MH2506 – Weed Abatement District
• RFP No. MH2507 – Community Facilities District (LMAD areas) This new approach reflects a strategic departure from the City’s prior model of utilizing a single vendor to service the entire community, which has become increasingly unsustainable given the pace of development and geographic expansion of Mountain House.
Item 8.3
By the May 3, 2025 proposal deadline, the City received 35 proposals. A Selection Committee comprised of Public Works Operations and Maintenance staff evaluated the proposals using criteria such as project understanding, work methodology, firm qualifications, experience with comparable maintenance contracts, and overall approach.
Of the 35 proposals submitted, 30 were deemed responsive and qualified. From those, 23 proposals advanced to a short-listing phase based on cost competitiveness, including evaluation of both base maintenance pricing and unit costs for extra work. These shortlisted firms were further evaluated through reference checks and interviews.
Following a comprehensive evaluation process, BrightView Landscape Services, Inc., Gachina Landscape Management, Inc., and Odyssey Landscaping, Inc. emerged as the most qualified vendors across the seven service areas. Staff subsequently entered into negotiations with each of the selected vendors to finalize scope, pricing, and contract terms.
Service Duration and Contract Terms
Contract durations vary based on the scope and operational complexity of each service area, ranging from three to five years. This staggered approach reflects the City’s desire to better manage long-term commitments, align with anticipated development timelines, and allow for flexibility in future procurement cycles. Each contract includes an optional three-year extension under the original rates and terms, subject to performance and funding availability.
Contract Highlights
• An incidental repair and labor allowance of approximately eight percent (8%) to address general repairs, vandalism-related work, and special requests.
• A Consumer Price Index (CPI) escalator, not to exceed three percent (3%) annually, based on the San Francisco-Oakland-Hayward Consumer Price Index for All Urban Consumers, which is a regional measure of inflation published by the U.S. Bureau of Labor Statistics. This index tracks the average change over time in the prices paid by urban consumers for goods and services like fuel, labor, and materials.
Staff recommends that the City Council authorize the City Manager to execute seven separate contracts (Attachments A through G), each aligned to a specific service area, with a combined total not to exceed $12,182,394.10 across all vendors. A summary table of vendor assignments and associated costs by service area and fiscal year is provided in the table that follows.
Item 8.3
FISCAL IMPACT
The City’s current annual cost for landscape maintenance services, including an eight percent (8%) allocation for maintenance and repairs, is approximately $2.031 million. Based on staff’s recommendation, the proposed total annual cost across all contracts beginning July 1, 2025, is estimated at $2.799 million, representing an increase of approximately $0.768 million, or 38%.
This increase reflects market-driven adjustments, expanded scope, and restructuring of the City’s landscape maintenance program. Cost modeling had anticipated potential increases of up to 22%, driven by the following factors:
• CPI increases exceeding the former contract’s three percent (3%) annual cap • Two consecutive years with no price increases under the current contract • Four of the last six years with CPI adjustments well below the cap The proposed cost also includes maintenance of approximately $40,000 in new landscape areas not previously under contract. Compared to modeled projections without a CPI cap (estimated at $2.429 million annually), the recommended contract pricing reflects a 15% increase, primarily attributable to expanded scope and updated market rates.
Item 8.3
A detailed breakdown of costs by vendor and fund account is provided in Attachment H. Sufficient funding is included in the proposed FY 2025-26 Budget to support the first year of services. Future funding allocations for the remaining years of the contract will be addressed through the annual budget process.
Contract Extension Provision
Each agreement includes an optional three-year extension, which may be exercised by the City Manager as noted in the formal recommendation, subject to contractor performance and availability of funding.
The projected total cost of the initial contract terms is approximately $12.182 million, with the optional extensions totaling approximately $9.785 million, bringing the total potential contract value to $21.967 million, as noted in the table that follows.
STRATEGIC PLAN
Awarding the proposed seven landscape maintenance contracts directly supports the City’s approved Strategic Plan for fiscal years 2025-26 through 2026-27 by:
Item 8.3
• Maintaining Community Infrastructure and Aesthetics – Ensures consistent, high-quality upkeep of parks, roadways, and public spaces, aligning with goals under Operations & Maintenance and Public Works.
• Enhancing Contract Oversight and Service Delivery – Supports strategic efforts to improve vendor performance, service standards, and cost-effective management of public assets. • Advancing Long-Term Maintenance and Equity – Reinforces the City's commitment to equitable maintenance across neighborhoods and preserves the value of City infrastructure as part of the long-range capital improvement and asset management strategy.
CEQA
Approval of these landscape maintenance contracts is categorically exempt from the California Environmental Quality Act (CEQA), under Section 15301, Class 1 – Existing Facilities. The work consists of routine maintenance of existing public spaces and infrastructure, with no expansion of use and no significant environmental impacts anticipated.
ACTION FOLLOWING CITY COUNCIL APPROVAL
Staff will coordinate execution of the proposed seven contracts and support the City Manager in implementing services and administering the agreements in alignment with approved scopes and terms.
ATTACHMENTS
A. Services Agreement A-2526-04
BrightView Landscape Services, Inc. (North Parks – RFP No. MH2501) B. Services Agreement A-2526-09
Gachina Landscape Management, Inc. (South Parks – RFP No. MH2502) C. Services Agreement A-2526-08
Gachina Landscape Management, Inc. (North-South Arterials – RFP No. MH2504) D. Services Agreement A-2526-07
Gachina Landscape Management, Inc. (Downtown & Government Buildings – RFP No. MH2505) E. Services Agreement A-2526-10
Gachina Landscape Management, Inc. (Weed Abatement – RFP No. MH2506) F. Services Agreement A-2526-06
Gachina Landscape Management, Inc. (Community Facilities – RFP No. MH2507) G. Services Agreement A-2526-05
Odyssey Landscaping, Inc. (East-West Arterials – RFP No. MH2503) H. Table of Cost Breakdown by Vendor and Fund Account
Item 8.3
Vendor/Contract Original Term Funding Source Totals FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 BrightView Landscape Services, Inc.
North Parks (RFP No. MH2501) 5-Years 203-1510-6250 2,154,898.67 $ 405,885.02 $ 418,061.57 $ 430,603.41 $ 443,521.51 $ 456,827.16 $ Gachina Landscape Management, Inc.
South Parks (RFP No. MH2502) 5-Years 203-1510-6250 2,366,256.94 $ 445,695.31 $ 459,066.17 $ 472,838.16 $ 487,023.30 $ 501,634.00 $ North-South Arterials (RFP No. MH2504) 4-Years 201-1510-6250 4,144,035.71 $ 990,536.61 $ 1,020,252.71 $ 1,050,860.29 $ 1,082,386.10 $ -- Dwntn. & Govt. Bldgs. (RFP No. MH2505) 3-Years 203-1510-6250 294,672.03 $ 94,548.33 $ 98,583.10 $ 101,540.60 $ -- -- Weed Abatement (RFP No. MH2506) 3-Years 203-1510-6250 193,388.65 $ 62,567.10 $ 64,444.12 $ 66,377.43 $ -- -- 201-1510-6250 77,238.44 $ 24,988.98 $ 25,738.65 $ 26,510.81 $ -- -- 541-1510-6250 128,732.30 $ 41,648.81 $ 42,898.27 $ 44,185.22 $ -- -- 501-1510-6250 263,277.61 $ 85,178.30 $ 87,733.65 $ 90,365.66 $ -- -- 521-1510-6250 140,913.74 $ 45,589.87 $ 46,957.57 $ 48,366.30 $ -- -- Subtotal 803,550.74 $ 259,973.06 $ 267,772.26 $ 275,805.42 $ -- -- Community Facilities (RFP No. MH2507) 3-Years 304-1510-6250 28,825.20 $ 9,325.83 $ 9,605.60 $ 9,893.77 $ -- -- 303-1510-6250 101,325.52 $ 32,781.88 $ 33,765.34 $ 34,778.30 $ -- -- 305-1510-6250 122,771.87 $ 39,720.43 $ 40,912.04 $ 42,139.40 $ -- -- 306-1510-6250 34,907.18 $ 11,293.53 $ 11,632.34 $ 11,981.31 $ -- -- Subtotal 287,829.77 $ 93,121.67 $ 95,915.32 $ 98,792.78 $ -- -- Odyssey Landscaping, Inc.
East-West Arterials (RFP No. MH2503) 4-Years 201-1510-6250 2,131,150.24 $ 509,402.55 $ 524,684.62 $ 540,425.16 $ 556,637.91 $ -- TOTAL 12,182,394.10 $ 2,799,162.55 $ 2,884,335.75 $ 2,970,865.82 $ 2,569,568.82 $ 958,461.16 $ Cost Breakdown by Vendor and Fund Account
ATTACHMENT H
Item 8.3
251 E MAIN STREET, MOUNTAIN HOUSE, CA 95391
(209) 831-2300 ● (209) 831-5610 FAX
CONSULTANT AGREEMENT
CONTRACT ID # A-2526- 04
DATE: July 1, 2025
PARTIES: City of Mountain House: City of Mountain House 251 E. Main Street
Mountain House, CA 95391
CONSULTANT: BrightView Landscape Services, Inc.
7039 Commerce Circle, Ste. B
Pleasanton, CA 94588
The Parties agree as follows:
1. Priority of Documents:
Each of the items listed below is hereby incorporated into this Agreement by this reference. In the event of an inconsistency in this Agreement, the inconsistency shall be resolved by giving precedence in the following order:
Α. Applicable Federal and State of California statutes and regulations, this Agreement and its exhibits.
B. Consultant’s Proposal dated May 2, 2025.
2. Terms of Services:
2.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Consultant agrees to provide North Parks District landscape maintenance, as further described in Exhibit A, Scope of Service (the “Work”).
2.2 Term of Agreement. This Agreement shall commence on July 1, 2025 and continue until June 30,2030 unless said Work is completed on a date prior thereto or unless terminated earlier as provided herein. Consultant shall complete the Work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, Item 8.3
CONTRACT ID # A-2526-04
2 as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect City of Mountain House’s right to terminate the Agreement, as referenced in Section 8.
2.3 Standard of Performance. Consultant shall perform all Work in a first-class manner in conformance with the standards of quality normally observed by a person practicing in Consultant’s profession.
2.4 Inspection. All Work performed and materials (if any) provided by Consultant shall be subject to inspection and approval by City of Mountain House.
2.5 Consultant’s Warranties and Guarantee. Consultant warrants to City of Mountain House that all materials and equipment furnished under this Agreement will be new unless City of Mountain House agrees otherwise in writing, and that all Work will be of good quality, free from faults and defects and in conformance with this Agreement. All Work not so conforming to these standards may be deemed defective by City of Mountain House. If required by City of Mountain House, the Consultant shall furnish to City of Mountain House satisfactory evidence as to the kind and quality of materials, equipment, and methods of installation by the Consultant or sub-Consultants.
Consultant shall guarantee the Work to be free of defects in material and workmanship for a period of one (1) year following City of Mountain House’s acceptance of the Work (“Consultant’s Guarantee”). As part of Consultant’s Guarantee, Consultant agrees to make, at Consultant’s sole cost and expense, all repairs or replacements made necessary by defects in material or workmanship which become evident within the one-year guarantee period.
2.6 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City of Mountain House, in its sole discretion and at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of Mountain House of such desire of City of Mountain House, reassign such person or persons.
2.7 Time is of the Essence. The parties agree time is of the essence. Consultant shall devote such time to the performance of the Work as may be reasonably necessary to timely finish the Work, meet the standard of performance provided in Section 2.3 above, and satisfy Consultant’s obligations hereunder.
2.8 Public Works Requirements. Because the Work described in Exhibit A constitutes a public works within the definition of Section 1720(a)(1) of the Labor Code, Consultant is required to comply with the provisions of the Labor Code applicable to public works projects, as further described in Exhibit D. Consultant shall waive, indemnify, hold harmless, and defend City of Mountain House concerning any liability arising out of Labor Code Section 1720 et seq.
3. Terms of Payment.
3.1 Compensation. City of Mountain House hereby agrees to pay Consultant a sum not to exceed two million, one hundred fifty-four thousand, eight hundred ninety-eight dollars Item 8.3
CONTRACT ID # A-2526-04
3 and sixty-seven cents, ($2,154,898.67) notwithstanding any contrary indications that may be contained in Consultant’s proposal for services to be performed and reimbursable costs incurred under this Agreement. City of Mountain House shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City of Mountain House to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City of Mountain House in the manner specified herein. Except as specifically authorized by City of Mountain House in writing, Consultant shall not bill City of Mountain House for duplicate services performed by more than one person.
Consultant and City of Mountain House acknowledge and agree that compensation paid by City of Mountain House to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and sub-Consultants of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and sub-Consultants may be eligible. City of Mountain House therefore has no responsibility for such contributions beyond compensation required under this Agreement.
3.2 Invoices. Consultant shall submit invoices not more often than once a month during the term of this Agreement based on the cost for services performed and reimbursable costs incurred prior to the invoice date via e-mail to [email protected]. Invoices delivered to any other e-mail address will be deemed undelivered and not paid.
Invoices shall contain the following information:
a. Contract ID number;
b. Federal Tax Payer Identification Number;
c. The beginning and ending dates of the billing period; d. A task summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
e. At City of Mountain House’s option, for each Work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the Work, the hours spent by each person, a brief description of the Work, and each reimbursable expense;
f. The total number of hours of Work performed under the Agreement by Consultant and each employee, agent, and sub-Consultant of Consultant performing services hereunder; and
g. The Consultant’s signature.
3.3 Monthly Payment. City of Mountain House shall make monthly payments, based on invoices received, for services satisfactorily performed and for authorized reimbursable Item 8.3
CONTRACT ID # A-2526-04
4 costs incurred. City of Mountain House shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.
3.4 Final Payment; Retention Payment. If all services required have been satisfactorily performed, City of Mountain House shall pay the last five percent (5%) of the total sum due pursuant to this Agreement within sixty (60) days after completion and acceptance of the Work, or other applicable event under law, and submittal to City of Mountain House of a final invoice.
3.5 Total Payment.
a. City of Mountain House shall pay for the Work performed by Consultant pursuant to this Agreement. City of Mountain House shall make no payment for any extra, further, or additional service pursuant to this Agreement. b. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment. c. City of Mountain House shall not pay any invoice or otherwise provide compensation to Consultant in excess of the maximum amount of compensation provided herein unless the Agreement is modified prior to the performance of such Work or services. d. City of Mountain House shall not pay any invoice or otherwise provide compensation to Consultant for Work or services performed after the expiration or termination of this Agreement unless the Agreement is modified prior to the performance of such Work or services.
3.6 Hourly Rate/Fees. Unless the services provided are for a lump sum or flat fee, fees for Work performed by Consultant on an hourly basis shall not exceed the amounts shown on the compensation cost proposal attached hereto as Exhibit B and incorporated herein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit B, the Agreement shall prevail.
3.7 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B.
Reimbursable expenses not listed in Exhibit B are not chargeable to City of Mountain House. Reimbursable expenses shall not include a mark-up and shall be billed as a direct costs. In no event shall expenses be advanced by City of Mountain House to the Consultant. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.
3.8 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.
3.9 Payment upon Termination. In the event that City of Mountain House or Consultant terminates this Agreement pursuant to Section 8, City of Mountain House shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for Work satisfactorily completed as of the date of written notice of termination.
Item 8.3
CONTRACT ID # A-2526-04
5 Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date.
3.10 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.
4. Consultant’s Status:
4.1 Independent Consultant. In the performance of the Work, duties, and other obligations imposed by this Agreement, the Consultant is at all times acting as an Independent Consultant practicing his or her profession and not as an employee of City of Mountain House. Consultant shall perform the Work in accordance with currently approved methods and standards of practice in the Consultant’s professional specialty. A copy of Consultant’s current business license shall be provided to City of Mountain House. The Consultant shall not have any claim under this Agreement or otherwise against City of Mountain House for vacation, sick leave, retirement benefits, social security or worker’s compensation benefits. The Consultant shall be responsible for federal and state payroll taxes such as social security and unemployment. San Joaquin County will issue a form 1099 at year-end on behalf of City of Mountain House for fees earned.
4.2 Consultant Not an Agent. Except as City of Mountain House may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City of Mountain House in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City of Mountain House to any obligation whatsoever.
4.3 Non-Exclusive Rights. This Agreement does not grant to Consultant any exclusive privileges or rights to provide services to City of Mountain House. Consultant may contract with other agencies, private companies, or individuals for similar services.
5. Legal Requirements.
5.1 Compliance. Consultant shall comply with all Federal, State and local laws, regulations and requirements necessary for performance of the Work. Consultant shall comply with all laws applicable to wages and hours of employment, occupational safety, and to fire safety, health and sanitation.
5.2 Licenses and Permits. Consultant represents and warrants to City of Mountain House that Consultant and its employees, agents, and any sub-Consultants have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required for the performance of the Work. Consultant represents and warrants to City of Mountain House that Consultant and its employees, agents, and any sub-Consultants shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to perform the Work.
5.3 Conflict of Interest Statement. Consultant covenants that Consultant, its officers or employees or their immediate family, presently has no interest, including, but not limited to, other projects or independent contracts, and shall not acquire any such interest, direct or indirect, which would conflict in any manner or degree with the performance of the Item 8.3
CONTRACT ID # A-2526-04
6 Work. Consultant further covenants that in the performance of this Agreement no person having any such interest shall be employed or retained by Consultant under this Agreement. Consultant shall not hire City of Mountain House’s employees to perform any portion of the Work, including secretarial, clerical, and similar incidental services, except upon the written approval of City of Mountain House. Performance of the Work by associates or employees of Consultant shall not relieve Consultant from any responsibility under this Agreement.
5.4 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, gender identity, or sexual orientation against any employee, applicant for employment, sub-Consultant, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant pursuant to this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.
5.5 Drug Free Workplace. Consultant shall comply with the provisions of Government Code Section 8350 et seq., otherwise known as the Drug-Free Workplace Act.
5.6 Form Law. The Laws of the State of California shall govern this Agreement. Venue is San Joaquin County. The provision of this paragraph shall survive expiration or other termination of this Agreement regardless of the cause of such termination.
5.7 Subcontracts. Consultant shall include the provisions of this Section 5 in any subcontract approved by the Contract Administrator or this Agreement.
6. Indemnification, Hold Harmless and Defense.
To the fullest extent permitted by law, Consultant shall indemnify, hold harmless and defend City of Mountain House, its directors, officers, employees, agents and authorized volunteers, and each of them, from and against any and all claims, demands, causes of action, damages, penalties, judgments, awards, decrees, costs, expenses, attorneys’ fees, losses or liabilities, in law or in equity, of every kind or nature, including but not limited to personal injury, bodily injury, wrongful death, and property damage including any damage to City of Mountain House’s property, arising out of Consultant’s alleged negligence, or wrongful acts related to or in connection with Consultant’s performance of duties under the terms and conditions of this Agreement.
To the fullest extent permitted by law, City of Mountain House shall indemnify, hold harmless and defend the Consultant, its directors, officers, employees, agents and each of them (collectively referred to as “Consultant Indemnified Parties”) from and against any and all claims, demands, causes of action, damages, penalties, judgments, awards, decrees, costs, expenses, attorneys’ fees, losses or liabilities, in law or in equity, of every kind or nature, including but not limited to personal injury, bodily injury, wrongful death, and property damage including any damage to the Consultant’s property, arising out of City of Mountain House’s Item 8.3
CONTRACT ID # A-2526-04
7 alleged negligence, or wrongful acts related to or in connection with City of Mountain House’s performance of duties under the terms and conditions of this Agreement.
Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by Civil Code Section 2782, as may be amended from time to time, such duties of Consultant to indemnify shall not apply when to do so would be prohibited by Civil Code Section 2782.
7. Insurance.
Before beginning any Work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance described in Exhibit C, incorporated herein, against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Work hereunder by the Consultant and its agents, representatives, employees, and sub-Consultants. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of Mountain House of such insurance that meets the requirements of Exhibit C and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning Work to City of Mountain House. Consultant shall maintain the insurance policies required by Exhibit C throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant’s proposal. Consultant shall not allow any sub-Consultant to commence Work on any subcontract until Consultant has obtained all insurance required by Exhibit C for the sub-Consultant(s) and provided evidence that such insurance is in effect to City of Mountain House. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution.
8. Termination and Modification.
8.1 Termination. City of Mountain House may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon sixty (60) days’ written notice to City of Mountain House and shall include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City of Mountain House, however, may condition payment of such compensation upon Consultant delivering to City of Mountain House any or all work product, including, but not limited to documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City of Mountain House in connection with this Agreement.
8.2 Extension. City of Mountain House may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Section 2.2. Any such extension shall require a written amendment to this Agreement, as provided for herein. The City of Mountain House City Manager is hereby authorized to negotiate and execute such extension.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties.
Item 8.3
CONTRACT ID # A-2526-04
8 8.4 Assignment and Subcontracting. City of Mountain House and Consultant recognize and agree that this Agreement contemplates performance of specialized services by Consultant and is based upon a determination of Consultant’s unique competence, experience, and specialized knowledge. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator.
Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the sub-Consultants noted in the proposal, without prior written approval of the Contract Administrator. Any such assignment, transfer, delegation or subcontract without the prior written consent shall be considered null and void.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City of Mountain House and Consultant shall survive the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City of Mountain House’s remedies shall include, but not be limited to, the following:
a. Immediately terminate the Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different Consultant to complete the Work described in Exhibit A not finished by Consultant; or
d. Charge Consultant the difference between the cost to complete the Work described in Exhibit A that is unfinished at the time of breach and the amount that City of Mountain House would have paid Consultant pursuant to Section 3 if Consultant had completed the Work.
9. Miscellaneous.
9.1 Contract Administrator. The Consultant Administrator shall be designated, and may be changed, by the City of Mountain House City Manager in writing.
9.2 Notices. Any notice required to be given pursuant to the terms and provisions hereof shall be in writing and shall be effected by personal delivery or by first class mail, registered or certified, postage prepaid, return receipt requested. Unless otherwise designated by either party in writing, such notices shall be mailed as shown on the first page of this Agreement.
9.3 Non-Liability of Officials, Employees and Agents. No officer, official, employee or agent of City of Mountain House shall be personally liable to Consultant in the event of any default or breach by City of Mountain House or for any amount that may become due to Consultant pursuant to this Agreement.
9.4 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, the prevailing Item 8.3
CONTRACT ID # A-2526-04
9 party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which such party may be entitled.
9.5 Documents. All drawings, specifications, documents and other memoranda or writings relating to the Work hereunder, shall remain or become the property of City of Mountain House upon termination of this Agreement, whether executed by or for the Consultant for City of Mountain House, or otherwise, by or for the Consultant, or by or for a subConsultant operating under the Consultant’s supervision, or direction, and all such documents and copies thereof shall be returned or transmitted to City of Mountain House forthwith upon termination or completion of the Work under this Agreement. Prior to termination Consultant shall deliver to City of Mountain House any such records upon request.
9.6 Force Majeure. It is agreed that neither party shall be responsible for delays in delivery or acceptance of delivery or failure to perform when such delay or failure is attributable to Acts of God, war, strikes, riots, lockouts, accidents, rules or regulations of any governmental agencies or other matters or conditions beyond the control of either the seller/Consultant or the purchaser.
9.7 Waiver. No waiver of any breach of any covenant or provision of this Agreement shall be deemed a waiver of any other covenant or provision hereof, and no waiver shall be valid unless in writing and executed by the waiving party. An extension of time for performance of any obligation or act shall not be deemed an extension of the time for performance of any other obligation or act, and no extension shall be valid unless in writing and executed by the waiving party.
9.8 No Third Party Beneficiaries. Nothing contained in this Agreement is intended to or shall be deemed to confer upon any person, other than the parties, any rights or remedies hereunder.
9.9 Headings. The headings of the sections and exhibits of this Agreement are inserted for convenience only. They do not constitute part of this Agreement and are not to be used in its construction.
9.10 Entire Agreement and Modification. This Agreement supersedes all previous Agreements either oral or in writing and constitutes the entire understanding of the parties hereto. No changes, amendments or alterations shall be effective unless in writing and signed by both parties.
9.11 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. *Signatures on following page*
Item 8.3
CONTRACT ID # A-2526-04
10 IN WITNESS WHEREOF, City of Mountain House and Consultant have executed this Agreement on the day and year first written above.
BrightView Landscape Services, Inc. City of Mountain House State of California
By: ____________________________
Brandon Steene
Vice President & General Manager
By: ___________________________
Steven J. Pinkerton
City Manager
Date: _________________________ Date: _________________________ Approved as to Form:
By: ___________________________
John Bakker
City Attorney
Item 8.3
CONTRACT ID # A-2526-04
11 EXHIBIT A
SCOPE OF SERVICES
Attached
Item 8.3
Exhibit C.1 - NORTH PARKS DISTRICT COST PROPOSAL
Item column A
Service Area Description Unit Price
1 Turf - Standard unit price per square foot $
2 Shrub Bed - Standard unit price per square foot $
3 Weed Abatement - Standard unit price per sq.ft. $
The square foot pricing entered shall be used as unit cost when adding future landscaped areas.
column B C D E
Zone Neighborhood Parks (and school loops) Sq. Ft. Unit Price Monthly Fee Annual Fee 1 Questa Park Location: W. Questa Trail and Montebello
Turf 206,795 $ $ $
Shrub Beds 19,150 $ $ $
2 Altamont Location: Ventura and Piedmont
Turf 208,715 $ $ $
Shrub Beds 14,233 $ $ $
Alleyways - (2) Rockridge connecting Alta Dena 10,204 $ $ $ Eyebrow Beds (1) Mill Valley (1) Hancock Park 6,479 $ $ $ Traffic circle on Puente & Alameda 755 $ $ $
3 Central Community Park Phase 1 Location: Central and Main Street Turf 286,820 $ $ $
Shrub Beds 202,907 $ $ $
Item Exhibit C.1 - NORTH PARKS DISTRICT COST PROPOSAL A B C D SUMMARY Sq. Ft. Unit Price Monthly Fee Annual Fee
1 TURF AREA 702,330 $ $ $
2 SHRUB BED AREA 253,728 $ $ $
3 Exhibit C.1 - ZONE 1 NORTH PARKS COST PROPOSAL TOTAL $ $ C.1 - OM2501 - City of Mountain House - Landscape Maintenance RFP RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 101
.0309
.0379
.0053
.0309
.0309
.0309
.0309
.0379
.0379
.0379
.0379
.0379
.0379
.0379
6,389.97
725.79
6,449.29
539.43
386.73
245.55
28.61 8,862.74
7,690.18
76,679.64
8,709.48
77,391.48
6,473.16
4,640.76
2,946.60
343.32
106,352.88
92,282.16
21,702.00
9,616.29
260,424.00
115,395.48
956,058 31,318.29 375,819.48
Item 8.3
PAGE 1 column A B
UNIT Unit Price
Item EXTRA WORK LABOR HOURLY RATES per
1 Foreman/Crew leader hr $
2 Laborer hr $
3 Irrigation Tech hr $
4 Irrigation Laborer hr $
5 Certified Playground Inspector hr $
Item LANDSCAPE MAINTENANCE INDIVIDUAL TASKS per
6 Mowing (includes edging and clean-up) 1,000 sf $
7 Turf Fertilization - granular 1lb Nitrogen per 1,000sf 1,000 sf $ 8 Hollow / Solid Core Aeriation (with removal of cores) 1,000 sf $ 9 Topdressing (80% sand/20% amendments) 1,000 sf $
10 De‐Thatching (including removal) 1,000 sf $
11 Weed Control Turf/shrubbeds ‐ Chemical Pre and Post Emergent 1,000 sf $ 12 Shrub Bed Maintenance (pruning, detailing weeding, etc.) sf $ 13 Pressure Wash Walkways, Walls and Structures hr $
14 Weed Abatement Tractor, Flail or Rotary Equipment (1 operator) day $ Exhibit C.2 - ANCILLARY WORK UNIT PRICING
RFP OM2501
LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 102
72.41 60.98
102.01
75.11 16.67
8.75 7.50
190.00
19.50 29.50
0.04 60.98
1,000.00
265.00
Item 8.3
PAGE 2 column A B
UNIT Unit Price
Item MISCELLANEOUS ITEMS - Labor and Materials per
15 Installation of Walk‐on or Shredded Mulch install cu yd $ 16 (3) Guywire Set For 6” Diameter Tree Per Install occurrence $ 17 (2 per tree) 3” trees stakes and Ties Per Install occurrence $ 18 Decomposed Granit - walkway install cu yd $
19 Playground Fibar - playground install cu yd $
20 Baseball Infield Mix 60/40 install cu yd $
21 Synthetic/Steel Header Board install lin ft $
Item PLANT MATERIAL - Labor, Materials, fertilization, Warrantee per 22 Annual Color (4") ea $
23 Ground Cover flat $
24 One (1) Gallon ea $
25 Two (2) Gallon ea $
26 Five (5) Gallon ea $
27 Fifteen (15) Gallon shrub ea $
28 Fifteen (15) Gallon Tree w/Triple 3” Stakes & Ties ea $ 29 24" Box Size Tree w/Triple 3” Stakes & Ties ea $
30 36" Box Size Tree w/Triple 3” Stakes & Ties ea $
31 48" Box Size Tree w/ Triple 3” Stakes & Ties ea $
32 Seeded and Top‐dressed Turf Repair sf $
33 Sodded Turf (remove, soil prep and replace) sf $
34 Hydro seed (including binder, fertilizer; seed excluded) sf $ Exhibit C.2 - ANCILLARY WORK UNIT PRICING
RFP OM2501
LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 103
135.00
287.50
139.00
294.71
203.84
18.80 Synthitec ln/ft $15.88
55.39 67.59
32.50 61.25
68.00 218.00
315.50
615.00
1380.00
3,850.00
3.25 .15
.35
195.28
Item 8.3
PAGE 3 column A B
UNIT Unit Price
Item IRRIGATION REPAIRS - Labor and Materials per
35 Mainline Repair 1" to 2-1/2" occurrence $
36 Lateral Line Repair 3/4" to 1-1/2" occurrence $
37 Trenching by hand 6” deep lin ft $
38 Trenching by hand 12” deep lin ft $
39 Toro Valve P‐220 Series 1‐1/2” inline angle w/solenoids (ea.) ea $ 40 Toro Valve P‐220 Series 1” inline angle w/solenoids (ea.) ea $ 41 Toro Valve P‐220 Series 2” inline angle w/solenoids (ea.) ea $ 42 Toro Valve P‐220 Series 3” inline angle w/solenoids (ea.) ea $ 43 Rain Bird Valve 100 PEB Series 1” (ea.) ea $
44 Solenoid Replacement (ea.) ea $
45 Backflow Flush per Backflow occurrence $
46 Backflow remove and replace 825Y 1” occurrence $
47 Backflow remove and replace 825Y 1‐1/2” occurrence $ 48 Backflow remove and replace 825Y 2” occurrence $
49 Backflow remove and replace 825YD 3” occurrence $
50 Backflow remove and replace 825YD 4” occurrence $
51 Buckner Superior Master Valve 3100 1” Replacement occurrence $ 52 Buckner Superior Master Valve 3100 2” Replacement occurrence $ 53 Buckner Superior Master Valve 3100 3” Replacement occurrence $ 54 Flow Sensor (Netafim) 360CT02GAL0.1 occurrence $
55 Wire Tracing per Linear Foot lin ft $
56 Quick‐coupler riser repair/replace occurrence $
Exhibit C.2 - ANCILLARY WORK UNIT PRICING
RFP OM2501
LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 104
423 - 1,025
153.95
10.20 20.40
600.00
425.00
750.00
1,250.00
425.00
40.00 50-205.
700.00
1350.00
2800.00
1875.00
each zone valve 155.00
250.00+
1,226.17
2,132.90
2.354.07
11,788.02
12,456.78
Item 8.3
PAGE 4 column A B
UNIT Unit Price
Item IRRIGATION REPAIRS - Labor and Materials
57 Hunter I‐20 4” (ea.) installed ea $
58 Hunter I‐20 6” (ea.) installed ea $
59 Hunter I‐40 4” (ea.) installed ea $
60 Hunter I‐40 6” (ea.) installed ea $
61 Hunter I‐60 6” (ea.) installed ea $
62 Hunter MP Rotator 1000 Series w/nozzle (ea.) installed ea $ 63 Hunter MP Rotator 2000 Series w/nozzle (ea.) installed ea $ 64 Hunter MP Rotator Nozzle (ea.) installed ea $
65 Hunter 4" pop up with nozzle ea $
66 Hunter 6" pop up with nozzle ea $
67 Hunter 12" pop up with nozzle ea $
68 Toro Pop‐up 4” w/nozzle (ea.) installed ea $
69 Toro Pop‐up 6” w/nozzle (ea.) installed ea $
70 Toro Pop‐up 12” w/nozzle installed ea $
71 Toro Nozzle (any size) (ea.) installed ea $
72 Shrub Bubbler (any size) (ea.) installed ea $
73 Eco Line installed lin ft $
74 Eco Mat installed sf $
Exhibit C.2 - ANCILLARY WORK UNIT PRICING
RFP OM2501
LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 105
58.08 74.20
171.05
200
250.00
32.50 32.50
10.5 22.56
42.5 77.21
22.56 42.50
77.21 6.45
16.11 2.04
3.61 Item 8.3
PAGE 5 column A B
UNIT Unit Price
Item EQUIPMENT AND OPERATOR
75 72” Mower hr $
76 48” Mower hr $
77 36” Mower hr $
78 21”‐ 28” Mower hr $
79 Gang Reel Mower 72” – 150” and Tractor hr $
80 Reel Mower 72” – 150” hr $
81 Bed Edger hr $
82 String Edger hr $
83 Backpack Blower hr $
84 3/4 Ton Pickup Truck and Trailer hr $
85 5 CY Dump Truck hr $
86 Skid Steer hr $
87 Mini Excavator hr $
88 Walk Behind Trencher hr $
89 Sod Cutter hr $
90 Rototiller hr $
91 Pesticide Spray Truck / Trailer, 200-gallon Capacity hr $ 92 Backpack Sprayer hr $
93 Chipper 12” Pull Behind and Truck hr $
Exhibit C.2 - ANCILLARY WORK UNIT PRICING
RFP OM2501
LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 106
115
155
85 115
145
85 85
85 125
65 67.00
67.00 67.00
67.00 125.00
85.00 64.00
64.00 64.00
Item 8.3
VENDOR APPLICATION FORM FOR
RFP No. OM2501-OM2507
CITY LANDSCAPE MAINTENANCE
Legal Contractual Name of Corporation:
Contact Person for Agreement:
E-Mail Address
Corporate Mailing Address:
City, State Zip Code:
Phone: Fax:
Contact Person for Proposals:
Title:
Business Telephone: E-Mail Address:
Business Fax:
Is your business: (check one)
NON PROFIT CORPORATION FOR PROFIT CORPORATION
CORPORATION LIMITED LIABILITY PARTNERSHIP
INDIVIDUAL SOLE PROPRIETORSHIP
PARTNERSHIP UNINCORPORATED ASSOCIATION
Names & Titles of Corporate Board Members
(Also, list Names & Titles of persons with written authorization/resolution to sign contracts) Name Title Phone Number
Federal Tax Identification Number:
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 73
BrightView Landscape Services, Inc.
David Moo
[email protected]
7039 Commerce Circle, Ste. B
Pleasanton, CA 94588
(951) 406-5904
David Moo
Business Development Executive
(951) 406-5904 [email protected]
(925) 734-0769
Dale Asplund President (925) 924-8900
Brett Urban Treasurer (925) 924-8900
Jonathan Gottsegen Secretary (925) 924-8900
Brandon Steene Vice President & General Manager (925) 924-8900 Susan DeSantis Assistant Secretary (925) 924-8900
95-2651541
(925) 734-0769
Item 8.3
LICENSE INFORMATION
Individual/Firm Name:
DBA:
State License #: Type of License:
Business License Number: Expiration Date:
(If none, you must obtain a Business License upon award of contract.) City, State of License:
If Applicable:
County of San Joaquin Business License
for Pest Control #
Pest Control Advisor’s License Category Expiration Date Individual’s Name on License
Qualified Applicator License Category Expiration Date
Individual’s Name on License
Include copies of licenses with the proposal if applicable.
Signing this day of , 20
By:
SIGNED
Print Name Title
Address:
Telephone:
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 74
BrightView Landscape Services, Inc.
BrightView Landscape Services, Inc.
266211 C27
to be obtained upon award TBD
TBD
31367
12/31/26
Juan C Gomez, Jr.
12/31/25
Loren Olson
#170933 (B)
#144892 (D)
2nd May 25
David Moo Business Development Executive
7039 Commerce Circle, Ste. B
Pleasanton, CA 94588
(951) 406-5904
Item 8.3
EX PARTE COMMUNICATIONS CERTIFICATION
Please indicate by signing below one of the following two statements. Only sign one statement.
I certify that Proposer and Proposer’s representatives have not had any communication with the Mountain House City Council regarding RFP No. OM2501, OM2502, OM2503, OM2504, OM2505, OM2506, or OM2507 for landscape maintenance services at any time after ______________, 20 ___
Signature: Date:
Printed Name:
OR
I certify that Proposer or Proposer’s representatives have communicated after ______, 20 ___ with Mountain House City Council regarding RFP No.
OM2501, OM2502, OM2503, OM2504, OM2505, OM2506, or OM2507 for landscape maintenance services. A copy of all such communications is attached to this form for public distribution.
Signature: Date:
Printed Name:
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 75
January 1
25 David Moo
5/2/25
Item 8.3
DISQUALIFICATION QUESTIONNAIRE
The Contractor shall complete the following questionnaire:
Has the Contractor, any officer of the Contractor, or any employee of the Contractor who has proprietary interest in the Contractor, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or safety regulation?
Yes No
If the answer is yes, explain the circumstances in the following space.
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 76
Item 8.3
DRUG-FREE WORKPLACE ACKNOWLEDGEMENT
THE BELOW SIGNED RESPONDENT CERTIFIES that it has implemented a drug-free workplace program. In order to have a drug-free workplace program, a business shall:
1. Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition.
2. Inform employees about the dangers of drug abuse in the workplace, the business’s policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation and employee assistance programs, and the penalties that may be imposed upon employees for drug abuse violations.
3. Give each employee engaged in providing the commodities or contractual services that are under quote a copy of the statement specified in subsection 1.
4. In the statement specified in subsection 1, notify the employees that, as a condition of working on the commodities or contractual services that are under quote, the employee will abide by the terms of the statement and will notify the employer of any conviction of, or plea of guilty or nolo contendere to, any violation of Chapter 893, Florida Statues, or of any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than five (5) days after such conviction.
5. Impose a sanction on, or require the satisfactory participation in, drug abuse assistance or rehabilitation program if such is available in employee’s community, by any employee who is convicted.
6. Make a good faith effort to continue to maintain a drug-free workplace through implementation of this section.
As the person authorized to sign this statement, I certify that this firm complies fully with the above requirements.
Date Company
Signature Address
Name E-Mail
Title Phone No.
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 77
BrightView Landscape Services, Inc.
7039 Commerce Circle, Ste. B, Pleasanton, CA 94588
David Moo [email protected]
Business Development Executive (951) 406-5904
5/2/25
Item 8.3
ADDENDUM ACKNOWLEDGEMENT FORM
City of Mountain House Landscape Maintenance
Services
No. OM2501, OM2502, OM2503,
OM2505, OM2506, OM2507
This form is an acknowledgement that I have reviewed and acknowledge the receipt of the following Addendums for the subject Contract:
Addendum No. 2
Proposer
Name
Title
Signature
Date
When issued, Addendum shall automatically become a part of the proposal documents and shall supersede any previous specification(s) and/or provision(s) in conflict with the Addendum. It is the responsibility of each prospective Proposer to obtain all Addendum associated with this solicitation. By submitting a response to this solicitation, the proposer shall be deemed to have received all Addendum and will incorporated into their proposal.
BrightView Landscape Services, Inc.
David Moo
Business Development Executive
5/2/25
Item 8.3
ADDENDUM ACKNOWLEDGEMENT FORM
City Landscape Maintenance Services
No. RFP OM2501, OM2502, OM2503, OM2505, OM2506, OM2507
This form is an acknowledgement that I have reviewed and acknowledge the receipt of the following Addendums for the subject Contract:
Addendum No.
Proposer
Name
Title
Signature
Date
BrightView Landscape Services, Inc.
David Moo
Business Development Executive
5/2/25
3 Item 8.3
CITY LANDSCAPE MAINTENANCE SERVICES
NORTH PARKS DISTRICT
RFP OM2501
REQUEST FOR PROPOSALS
Proposals must be submitted to the City of Mountain House by:
2:00 p.m. Pacific Standard Time on Friday, May 2, 2025
The City of Mountain House will reject any proposals received after the date and time noted above.
Proposals will be evaluated by the Selection Committee for review following the criteria set forth within this RFP.
INQUIRIES REGARDING THIS RFP: Do not contact City personnel other than the person(s) indicated below. If needed, please send a single email inquiry if there are multiple questions concerning the scope of professional services required.
Doug Louie, O & M Superintendent: [email protected] | (209) 831-2300 Pedro Vieira, Landscape Maintenance Supervisor: [email protected] | (209)278-8788 Item 8.3
SECTION 2 - SCOPE
Landscape Maintenance Standards and Specifications
A. GENERAL STANDARDS
1. DURATION OF AGREEMENT
The agreement shall remain in full force and effect for an initial period of five (5) years, unless terminated by either party. The agreement may be extended, with approval of both parties, for one (3) three -year period, for a maximum term not to exceed eight (8) years.
2. QUALITY OF WORK
The Operations and Maintenance Superintendent, or his designated representative, shall be the sole judge as to the adequacy and quality of maintenance. Where the Operations and Maintenance Superintendent is mentioned in these Specifications, it shall be noted that his designated representative may act on his behalf regarding the administration of this agreement. To ensure the consistent quality of the work being performed, the City representative may inspect all areas covered by this contract within 24 hours after work is scheduled to be performed for the month. Any deficiencies shall be recorded on the Performance Deficiency Notification form and submitted to the contractor for review and corrective action. After the correction period allowed in the Performance Deficiency Notification form has passed, the City representative shall re-inspect the deficient work and complete and submit a Performance Deficiency Status Memo to the Contractor. Any deficiencies not corrected shall result in the value of the work being deducted from the monthly payment to the Contractor. The bid prices quoted by the contractor in the Cost Proposal shall be used to determine the dollar value of any deficiencies.
3. LOCATIONS
See Exhibit A – Maintenance Zone Maps
4. CANCELATION
CITY OF MOUNTAIN HOUSE reserves the right to cancel this contract without cause with a 60-day written notice.
5. NON-PERFORMANCE
In case of termination by the City for nonperformance, the City may contract or cause to be done any work not completed at the time of the termination. Payment to the Contractor shall be reduced by the cost of the work. If it is determined the Contractor has not performed the work satisfactorily under a provision of this contract, a non-credit status may be enforced during this period on “noncompliance.” This proration shall be based on the total yearly amount for labor divided by the working days available. If a nonRFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 16
Item 8.3
credit status is imposed due to the Contractor’s nonperformance and/or noncompliance to the specifications and provisions contained herein or any other work applicable under this contract, it is agreed that the City may withhold payment for the value of the disputed work until the nonperformance or noncompliance is corrected. If not correctable, the City may deduct from any payment due, the value of the work that was either not performed or not in compliance with the specifications. This provision shall have no effect on any other rights the City may have under this contract.
6. NOTICE REQUIREMENT
Notice shall be deemed to have been given by either party by posting a registered letter, email, or fax to the business address of the other party.
Operations and Maintenance
Superintendent
City of Mountain House
251 East Main Street
Mountain House, CA 95391
Phone: (209) 831-2300
Company Name:
Name & Title Representative:
Street Address:
City , State & zip code:
Phone Number:
Fax Number:
7. COMPENSATION
a. The Contractor shall be compensated in 12 equal monthly payments based on the annual contract amount for satisfactorily completed base maintenance under the scope of this contract. This payment includes all necessary costs, such as vehicles, equipment, tools, labor, materials, and travel to and from the job site. However, expenses related to airline travel, hotels, employee training, and company events shall not be included in the monthly maintenance fees, nor will the City provide additional compensation for these items.
b. All billing is based on prevailing wage or otherwise mandated by changes in laws and/or regulations by Federal and/or State entities with authority over the classifications of workers for this contract.
c. The Contractor must meet all applicable State and Federal requirements and must be registered with the State Department of Industrial Relations for this project. d. Certified payroll reportsfor all employees performing work on the contract during the billing period shall be submitted with each invoice.
e. Payment Withheld: The City may withhold payment to such extent as it may be necessary to protect the City from loss due to:
• Work required in the specifications, which is defective, incomplete, or not performed.
• Claims filed or reasonable evidence indicating probable filing of claims. • Failure of the contractor to make payments properly to subcontractors for materials and labor.
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 17
Item 8.3
• There is a reasonable doubt that the contract may be completed, for the balance then unpaid.
• Failure to submit required reports or other documents required by the contract.
8. ANNUAL ADJUSTMENT
Annual adjustments to the Unit Price per Square Foot for Landscape Maintenance and ancillary unit priced work will be based on the “Bureau of Labor Statistics, U.S.
Department of Labor, Consumer Price Index (CPI), San Francisco Area” up to a maximum adjustment of 3%. The most recent CPI data must be utilized for estimated increases, prior to the submittal of the requested increase that is due no later than January 1 each year for increasesthat will be applied to the following fiscal year beginning July 1. Newly added landscape areas must be under contract for at least 6 months to qualify for a CPI requested increase.
9. RIGHTS RESERVED
a) Rejection of Work:
The contractor agrees that the City of Mountain House has the right to make all final determinations as to whether the work has been satisfactorily completed. b) Completion of Work:
If Contractor fails to comply with the conditions of the contract, or fails to complete the required work or furnish the required materials within the time stipulated, the City of Mountain House reserves the right to purchase in the open market, or to complete the required work, at the expense of the Contractor, including but not limited to, by recourse to provisions of the performance bond ifsuch bond is required under the conditions of this Proposal. The original Contractor can be liable for any resulting increased costs.
10. ASSIGNMENT OR CHANGE OF OWNERSHIP
Except for the case of a sale of all or substantially all of the assets of the Contractor, a merger, consolidation, or transfer of 50% or more of the Contractor stock cumulatively during the term of this agreement, the rights and obligations of the Contractor there undershall be assignable only upon the express written request of the Contractor and the express written consent of the CITY OF MOUNTAIN HOUSE; such approval shall not be unreasonably withheld or delayed.
11. CONFLICT OF INTEREST
The contractor shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the best interest of the City. This obligation shall apply to Contractor’s employees, agents, sub-Contractors, or other parties associated with accomplishing the work. Contractor’s efforts shall include, but not be limited to, establishing precautions to prevent its employees or agents from making, receiving, providing, or offering gifts, entertainment, payments, loans, or other considerations which could be deemed to appear to influence individuals to act contrary RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 18
Item 8.3
to the best interest of the City.
12. RECORDS AUDIT
Contractor’s financial books, employment records, maintenance related records, and plans or such part thereof may be engaged in the performance of this contract, shall at all reasonable times be subject to inspection and audit by any authorized representative of the City unless otherwise protected by applicable laws.
13. BUDGETARY APPROPRIATIONS
This agreement is subject to and contingent upon applicable budgetary appropriations being made by the Mountain House City Council each fiscal year during the term of this contract. If such appropriations are not forthcoming, the contract may be terminated or reduced in scope without penalty to the City with required prior notice.
14. INTERPRETATION OF CONTRACT
This agreement shall be construed and interpreted according to the laws of the State of California.
15. CHANGES TO DOCUMENT
Any changes beyond this document shall occur only when ordered in writing by the Mountain House Operations and Maintenance Superintendent or Authorized Representative. In the absence of such a written order, any such product supplied, or work performed shall be considered unauthorized and will not be paid.
16. STANDARDS OF ITEMS
As applicable, all items furnished in this contract shall meet or exceed the standards established by the California Occupational Safety and Health Act of 1973 and current amendments thereto, provided the end use of the item is for the purpose for which the item is intended.
17. SAFETY AND HEALTH ORDINANCES
The contractor shall comply with all air pollution control, water pollution, Safety and Health Ordinances and statutes which apply to the work performed or supplies provided pursuant to this contract including, but not limited to, any requirementsspecified in State government codes.
18. INDEPENDENT CONTRACTOR
Contractor is, for all purposes arising out of this contract, an independent Contractor and shall not be deemed an employee of the City of Mountain House. It is expressly understood and agreed that the successful Contractor and its employeesshall in no event, because of this contract, be entitled to any benefits to which City of Mountain House employees are entitled to, including but not limited to, overtime, any retirement benefits, worker's compensation benefits, injury leave or other leave benefits.
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 19
Item 8.3
19. PREVAILING WAGE
It shall be mandatory upon the Contractor to whom the contract is awarded to pay not less than the said prevailing rates of wages to all workers employed by the firm in the execution of the contract. The Contractor will be required to comply with the California Labor Code, Article 2, Section 1770 through 1780 inclusive and Article 5, Section 1810 through 1861 inclusive. (Laws and Regulations governing the payment of prevailing wages). The Contractor shall pay its employees the general prevailing rate of wages as determined by the Director of the Department of Industrial Relations. Contractor and any of their subcontractors shall keep an accurate payroll record showing the name, address, socialsecurity number, work classification,straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed. The payroll records shall be certified, available for inspection, and copies thereof furnished with the payment requests as prescribed in Section 1776 of the Labor Code. The contractor shall keep the City informed as to the location of the records and shall be responsible for the compliance with these requirements by all subcontractors. The provisions of Article 2 and 3, Division 2, Chapter 1 of the Labor Code, State of California, are made by this reference as a part of this solicitation.
20. ASSIGNMENT OR SUBCONTRACTING
No performance of this agreement or any portion thereof may be assigned or subcontracted by the Contractor without the express written consent of the City. Any attempt by the Contractor to assign or subcontract any performance of this agreement without the express written consent of the City shall be invalid and shall constitute a breach of this agreement. Whenever the Contractor is authorized to subcontract or assign, the terms thereof shall incorporate by reference and not conflict with this agreement.
21. QUALIFIED EMPLOYEES AND APPEARANCE
The Contractor warrants that all persons employed have satisfactory past records indicating their ability to accept the kind of responsibility anticipated in this type of work.
All employees shall be required to wear uniforms, badges, or other means of identification acceptable to the City which are to be furnished by the Contractor and must be always worn while working on City property.
22. SAFETY REQUIREMENTS
Whenever the Contractor’s operations create a condition that is potentially hazardous to traffic or to the public, he shall furnish, erect, and maintain at his expense and without cost to the City of Mountain House, flagger and/or control devices as are necessary to prevent accidents, damage, or injury to the public. Signs, lights, flags, and other warning and safety devices shall conform to the requirements set forth in the current Work Area Traffic Control Handbook, published by Building News, Inc.
RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 20
Item 8.3
23. SPECIFICATIONS
All changes in specifications and/or contract requirements will be issued in writing. The City of Mountain House is not responsible for any oral instruction.
24. PROPOSAL REQUIREMENTS
In submitting the Proposal, the Contractor acknowledges that the Contractor has thoroughly and carefully read and understands the RFP documents and attachments; agrees to furnish the product at the prices, quantities, and terms and conditions stated, and certifies that the information contained in the Proposal is true and complete to the best of the Contractor’s knowledge.
25. CONTRACTOR AGREEMENT
The Contractor acknowledges that he has read and agrees to all terms and conditions of this agreement.
26. PAYMENTS
After service, the Contractor must submit an invoice for payment. Invoices shall be sent to: City of Mountain House, Attention: Accounts Payable, 251 East Main Street, Mountain House, CA 95391 or emailed to [email protected] . Invoices shall include the purchase order number, description of the service provided, type of service provided, and price.
Payment shall be made within thirty (30) days after receipt of the invoice. Any “prompt payment discounts” will be taken by the City of Mountain House, if possible, and will be included in the bid evaluation if the terms offered are for twenty (20) days or longer.
27. PENALTY ASSESSMENTS
Deficiency Notices shall be issued due to lack of response, performance and contractor neglect as listed throughout this agreement. Monetary penalties shall accompany these notices. The Deficiency Notice shall include date, reason for penalty and monetary amount of penalty. The dollar amount of each penalty shall be added and become a part of the M&R Provision balance.
B. CONTRACTOR’S RESPONSIBILITY
1. EXPERIENCE
Prior to contract award, the successful Contractor for this contract shall be required to demonstrate to the City that they can successfully perform maintenance work of the type involved in this contract by providing a list of similar local projects they are maintaining of similar nature and possesses suitable equipment to perform the work.
2. LOCALITY OF OFFICE AND YARD
The Contractor shall maintain a local office within forty (40) miles of the City from which the company’s representative can be reached during normal working hours or emergencies. This location shall also include additional personnel authorized to make decisions on matters pertaining to this contract with the City during normal business RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 21
Item 8.3
hours. This facility shall include a corporation yard suitable to store all equipment and vehicles to support daily operations for services provided in Mountain House.
3. EQUIPMENT LIST
a. The City reserves the right to determine the capability of the equipment and to reserve acceptance or rejection of deficient equipment. b. All Contractors must provide a list of equipment they will use to fulfill the contract.
This list must include the make, model, year of equipment and whether the equipment is owned or leased.
c. All equipment necessary to provide the specified maintenance shall be provided and maintained by the Contractor. Equipment shall be safe, proper, efficient, and suited to and for the job.
d. The Contractor shall maintain all equipment in prime working order; all cutting blades shall be kept sharp.
e. Equipment shall have all the required safety devices in place and in operation. f. Installed equipment or replacement equipment shall be in new condition. g. Equipment operation times and noise levels shall comply with CITY OF MOUNTAIN HOUSE requirements.
4. REPORTS, SERVICE, AND INSPECTIONS LOGS
a. The Contractor will provide the City Representative with all reports as identified throughout this specification. The required documentation shall be provided as described, completed and legible in a timely manner as scheduled. b. By March 31 of each calendar year thereafter a report shall be submitted, reporting all missing shrubs, trees and turf areas requiring replacement due to contractor neglect. All replacements shall be installed by the contractor no later than January 1st of each calendar year. Plant material that has perished due to contractor neglect will be replaced at the expense of the contractor.
c. The Contractor shall maintain and keep records of all ongoing, seasonal, and additional work and maintenance functions performed daily by the Contractor's personnel. Such reportsshall be submitted to the City in concurrent with the monthly invoice. The monthly payment will not be made until such a report is received by the CITY OF MOUNTAIN HOUSE.
d. The Contractor shall also provide additional documentation as requested by the City Representative including:
• Suggestions for improving plant health, vigor or irrigation efficiency and effectiveness.
• Cost estimates for landscape renovations, repairs, and modifications. Unit prices shall correspond to Contractor's current landscape maintenance bid. • Proposed solutions to perceived problems presented by the City’s Authorized Representative.
5. FAILED PLANT MATERIAL
a. The Contractor shall accept all plant material within the scope of work in writing as RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 22
Item 8.3
viable and healthy, noting any exceptions within 60 days of the inception of the contract. The City Representative and the Contractor shall agree on the status of all exceptions. Documentation of the status of plant material at the commencement of work shall be the Contractor's responsibility.
b. The Contractor shall restore or replace at their own expense, any lawn area, groundcover, perennial or annual plants, trees, shrubs, or other plant materials requiring restoration or replacement due to the Contractor's actions or failure of action, including plant materials severely damaged by pests or disease. c. The Contractor shall not be liable for plant losses due to maladies beyond the Contractor's control; this includes but is not limited to disease or insect attack for which there is no legal recommended control, acts of vandalism, earthquakes, fires, and the like.
d. Plants that fail because of improper maintenance or as the result of toxicity from Contractor applied chemical or other materials shall be replaced by the Contractor at no cost to CITY OF MOUNTAIN HOUSE.
6. LICENSES AND PERMITS
The Contractorshall, prior to submitting the Proposal, and forthe duration of the contract period, possess all licenses and permits required for the performance of the work required by this contract as follows:
a. Contractor must possess a California Qualified Pest Control Applicators License with categories “B” and “C.”
b. The Contractor must employ, or contract with, a person possessing a valid Pest Control Advisers License.
c. All personnel supervising employees that apply and handle pesticides shall possess a valid Qualified Applicator’s certificate in the applicable categories. d. All employees that apply and handle pesticides shall be trained and certified by qualified trainers annually.
e. No Proposal shall be considered from a Contractor who, at the time the Proposal is submitted, is not licensed (C-27) to contract for this project in accordance with the law under provisions of Division 3, Chapter 9, of the Business and Professions Code of the State of California.
f. In the event of a dispute as to the classification of the license required, the opinion of the Contractor’s State License Board shall prevail. This requirement is not a mere formality, and it shall not be waived.
g. All vehicle operators performing work on this project shall have a valid State of California driver’s license for the class of vehicle being operated. h. While working in the City all vehicles shall have signage on two sides of each truck stating “Authorized Contractor for the City of Mountain House”: with Name of Company, Phone number(s) of Company and State Contractor’s license number(s).
7. CONTRACTOR IS AN INDEPENDENT CONTRACTOR
The Contractorshall act under the contract as an independent contractor vis-à-visthe City of Mountain House and shall not be an agent or employee of the City. The Contractor RFP OM2501 LANDSCAPE MAINTENANCE
NORTH PARKS DISTRICT
CITY OF MOUNTAIN HOUSE 23
Item 8.3
shall not represent or otherwise hold out itself or any of its subcontractors, directors, directors, officers, partners, employees, or agentsto be an agent or employee of the City.
8. INDEMNIFICATION
The Contractor shall indemnify and otherwise hold harmless the City, and its officials, officers, employees, agents and other representatives, from all liability, loss or damage, including reasonable attorney’s fees and other costs of defense resulting from damage or injury to persons or property caused, or claimed to have been caused, by acts or omissions of the Contractor or of any of its agents in the course of or in connection with the Contractor’s performance under the contract. The parties agree to cooperate fully in the resolution of any claims for such liability, loss, or damage.
9. COMPLIANCE WITH THE LAW
The Contractor agrees that his performance under the contract shall comply with all applicable laws of the State of California, and any political subdivision of such state, including without limitation the County of San Joaquin, and the City of Mountain House.
10. EQUAL EMPLOYMENT OPPORTUNITY
The Contractor shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735.
11. PERSONNEL – MINIMUM STAFFING LEVELS/SUPERVISION & CERTIFICATIONS/VEHICLES a. The Contractor and/or their representative shall be experienced in landscape maintenance and preferably have academic education in horticulture and/or agronomy. They shall be qualified to analyze any problems with the landscaping and provide reports and solutions to the City on dealing with such problems. The Contractor shall supply CITY OF MOUNTAIN HOUSE with a listing of employee experience, degrees, and certifications.
b. Supervision: The Contractor shall assign adequate supervisory personnel to be on site each working day, working regular working hours, for the duration of this contract.
The Contractor and the assigned supervisor shall have expertise and experience in comprehensive maintenance of a wide range of municipal facilities, including but not limited to plant care, irrigation management, Irrigation repair and replacement, pest control, soils, fertilizers, and plant identification. The assigned supervisor(s) must be fluent in the English language (written and spoken) and must be able to communicate effectively with City Authorized Representatives, the public and subordinate staff.
There shall be regular meetings on site with the Contractor and the City to determine progress and to establish areas requiring attention to meet specifications. The city shall retain the right to schedule meetings at any frequency. c. Certification: Contractormust assign one Certified Irrigation Technician (CIT) that will RFP OM2501 LANDSCAPE MAINTENANCE
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be responsible for irrigation testing, identifying, and making any necessary irrigation repairs as well as recommending/requesting specific irrigation scheduling changes. d. The work force shall consist of U.S. citizens and/or legal residents. e. The Contractor shall supply the CITY OF MOUNTAIN HOUSE with an Organizational Flow Chart of the Company and Management/Employees specific to Mountain House.
f. The workforce shall be directly employed and supervised by the Contractor. The work force shall always be under supervision while working in CITY OF MOUNTAIN HOUSE landscape areas. The Authorized CITY OF MOUNTAIN HOUSE Representative shall be notified of all changes in supervision. All supervisors must speak English. g. No subcontract may be entered into by the contractor without the prior approval of the MH City Superintendent or the MH Representative. Should the CITY OF MOUNTAIN HOUSE approve such subcontract, Landscaper shall continue to be primarily responsible forthe performance of each term and condition of this contract and to ensure full compliance by its subcontractor to the satisfaction of the CITY OF MOUNTAIN HOUSE.
h. The employees shall present a neat, well-groomed appearance always. The employeesshall act in a courteous, professional manner always while working on the project. Every effort shall be made to perform the work while creating minimum disturbance to the CITY OF MOUNTAIN HOUSE landscape areas, residents, owners, or visitors. Any employee who is determined by the Authorized CITY OF MOUNTAIN HOUSE Representative to be incompetent, disorderly, intemperate or otherwise objectionable considering these specifications and public safety concerns shall be immediately removed from the project and replaced with a satisfactory replacement. i. The Contractor shall pay for and bear the maintenance cost of uniforms for all employees working on the project. The uniforms shall be identified in writing and submitted to the Authorized CITY OF MOUNTAIN HOUSE Representative annually for approval. The uniform shall be worn as a complete unit and be fitted properly. The uniform shall be clean daily with no rips, tears, or permanent stains present. j. All vehicles used on the projectshall be no olderthan ten (10) years, unless otherwise approved by the CITY OF MOUNTAIN HOUSE, and maintained in good mechanical and body repair.
k. All vehicles shall always be clean with the exterior paint in good condition and shall be equipped with tool and equipment racks to hold all tools and equipment in a neat and orderly fashion.
l. All vehicles shall bear on both sides of each vehicle in a legible fashion; the contractor's name, contractor’s phone number, contractor’s State Contractor’s License number and “Authorized Contractor for the City of Mountain House.”
12. SCHEDULING OF WORK
On a monthly basis or more frequently if the City determines it is necessary, the Contractor shall provide a comprehensive schedule for the work to be conducted during the next monthly work period. The schedule shall be formatted as a calendar and include:
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a. Tasks to be accomplished per site on each day of service. b. Number of employees and labor-hours that will be dedicated to the work. c. Indicate any special work assignments i.e., pesticide application, tree trimming, playground inspections, pressure washing, etc.
d. The schedules shall be submitted to the City five (5) working days prior to the first working day of the month. Failure to submit schedules within the period specified shall result in a penalty of $100 per occurrence and each calendar day until schedules are received.
e. The City may grant, on an individual basis, permission to perform contract maintenance with an alternative schedule.
C. ADDITIONS/DELETIONS
The CITY OF MOUNTAIN HOUSE is required to install landscaping and irrigation as dictated by the Mountain House Community Master Plan (Master Plan), Specific Plans and Design Guidelines. The City, with thirty days’ written notice, may submit additional new landscaped areas to be maintained by the Contractor. These improvements may be in the right-of-way or setback. Property in the right-of-way will become part of the City landscape areas. Upon written notice from the City of Mountain House, the Contractor shall add these areas to the maintenance contract. The Contractor shall submit updated pricing with a revised Exhibit C All such changes shall only be made upon written notification in the form of a change order approved by the Director of Public Works or the assigned representative, which shall clearly state the effective date of the change, the adjusted contract amount, and the scope of any changes. The contract amount shall be adjusted to reflect the additions or deletions.
Prior to commencing work on additional sites, the Contractor shall meet with the City Representative to review maintenance requirements for the additional sites.
D. EMERGENCY CALLS
The Contractor shall have the capability to receive and to respond immediately to calls of an emergency nature during normal working hours and during hours outside of normal working hours. Calls of an emergency nature received by the City may be referred to the Contractor for immediate response.
1. Emergency calls relayed and reported by use of Govoutreach, Gorequest, email, text, cell phone, etc. shall be considered valid forms of communication.
2. Social media sites related to the Mountain House Community are recommended in monitoring emergencies, however, they are not required.
3. The contractor shall respond to emergency calls by use of Govoutreach, Gorequest, email, text, cell phone, etc. within (30) minutes and shall notify the City Representative of the estimated time of arrival (ETA) to the emergency.
4. The contractor shall report on-site (2) hours from the time of notification and shall notify the City Representative upon arrival and completion of the call-out and the work performed.
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5. The contractor shall designate a person(s) who shall be available to respond to emergency calls through Govoutreach, Gorequest, email, text, cell phone, etc. 24 hours per day.
6. The contractor shall submit telephone number(s) to the City that can be used to obtain emergency services on a 24-hour basis.
Upon arriving at an emergency, it shall be the responsibility of the Contractor to eliminate all unsafe conditions that would adversely affect the health, safety, or welfare of the public or notify the City Representative if that is not possible. Failure to respond within two (2) hours of attempt to contact shall result in a $300 Deficiency Notice penalty per incident. Failure to respond to an emergency when contacted shall subject the Contractor to all primary or secondary costs arising from said emergencies being remedied by other contractors due to non-responsiveness and may result in termination of contract.
E. SAFETY REQUIREMENTS
All work performed under this contract shall be performed in such a manner as to provide maximum safety to the public, and where applicable, comply with all laws, regulations, and applicable safety standards required by CAL-OSHA, the Work Area Traffic Control Handbook (W.A.T.C.H.) and the State of California Manual of Traffic Controls. The contractor is responsible for all safety and traffic controls during any approved lane closures and traffic detours approved by CITY OF MOUNTAIN HOUSE.
The City reservesthe right to issue restraint or cease and desist ordersto the Contractor when unsafe or harmful acts are observed or reported relative to the performance of the work under this contract.
1. HAZARDOUS CONDITIONS
The Contractor shall maintain all work sites free of hazards to persons and/or property resulting from the contractor’s operations. Any hazardous condition noted by the Contractor, which is not a result of his operations, shall be immediately reported to the City Representative.
2. SPILLS/LEAKS
The Contractor must submit a written plan for the emergency clean-up of any leaks or spillage of hydraulic fluid, oils, pesticides, and any other potentially hazardous materials.
The contractorshall prevent any material from entering the catch basins and storm drain system and will be responsible for the cost of any clean up resulting from their failure to protect the storm drain system.
3. TRAFFIC CONTROL
During the progress of the work, adequate provision shall be made by the Contractor to accommodate normal traffic over public streets and park roadways to cause a minimum of inconvenience to the public. The Contractor shall hold the City harmless from all claims arising from any act or omission on their part pertaining to any injury, death or damage to any person or property by reason of any use of any street by anyone while the Contractor is working or has any equipment or barricades thereon. a. The Contractor shall comply with all local, County, State or other legal requirements including, but not limited to, full compliance with the terms of the RFP OM2501 LANDSCAPE MAINTENANCE
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applicable O.S.H.A. and CAL O.S.H.A. Safety Orders always to protect all persons, including Contractor's employees, agents of the CITY OF MOUNTAIN HOUSE, vendors, members of the public or others from foreseeable injury or damage to their property.
b. Employees performing work in the median shall always wear an approved ANSI Class II safety vest as an outer garment.
c. Means of ingress and egress for occupants of property or buildings shall be always provided unless otherwise approved by the City.
d. The contractor shall notify the City Representative of intent to begin work at least five (5) days before work is begun if the work shall include the closure of any traffic lane unless the work is of a re-occurring nature, and a one-time submittal of a traffic control plan was completed and approval received prior to the initiation of the work.
e. The Contractor shall cooperate with local authorities and all other City departments relative to handling traffic through the area and shall make their arrangements relative to keeping the working area clear of vehicles. f. When entering or leaving roadways carrying traffic, the Contractor’s equipment, whether empty or loaded, shall in all cases yield to public traffic. g. All traffic delineation and work area protection shall conform to the Work Area Traffic Control Handbook (W.A.T.C.H.) and the State of California Manual of Traffic Controls.
h. All lane closures shall require the completion and City approval of a traffic control plan prior to conducting any work.
i. The contractor shall provide a Type B flashing sign arrow boards for all lane closures.
j. The Contractor shall make every effort to keep commercial driveways open during working hours. After working hours, all driveways shall be accessible with smooth and safe crossing through the construction area.
k. Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work involved and no additional compensation shall be allowed, therefore. l. The Contractor shall not close a traffic lane between the hours of 7:00 - 9:00 AM and 4:00 - 6:00 PM without prior approval by the City Representative. m. The Contractor shall not close any traffic lanes near Mountain House High School between the hours of 6:00 - 9:00 AM and 2:00 - 6:00 PM without prior approval by the City Representative.
F. SOUND CONTROL REQUIREMENTS
The Contractorshall comply with all localsound control and noise level rules, regulations, and ordinances, which apply to any work performed pursuant to the contract. No pruning operations, use of equipment or tools shall begin before 7:00 a.m.
Each internal combustion engine used for any purpose on the job or related to the job shall be equipped with a factory recommended muffler. No internal combustion engine shall be operated on the project without said muffler.
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G. WASTE DISPOSAL
The City shall provide trash and green waste containers located in a collection area within the City for the handling of waste generated by maintenance activities within this contract. The contractorshall be responsible for the collection, removal and disposal of all trash, debris and green waste generated by landscape maintenance activities as per specifications. The Contractor shall deposit general trash and green waste each day from the contract at the City’s transfer site. Additionally, the Contractor shall deposit all generated waste into the appropriate refuse container as provided by the City. The Contractor will coordinate the emptying and tracking ofsuch waste. Contractorshall keep the refuse transfer area clean and free of any debris on the ground.
H. PROTECTION AND PRESERVATION OF PROPERTY
The Contractorshall be held responsible forthe preservation of all public and private property along and adjacent to the work area and shall be required to exercise due caution to prevent any damage or injury, thereto, because of their operation. All trees, shrubs, ground covers, fences, warning signals, street signs, walks, walls, structures, stairways, or other property shall be adequately protected and should not be removed or disturbed without permission from the City. Any damage to CITY OF MOUNTAIN HOUSE property caused by the Contractor's neglectshall be corrected and paid for by the Contractor at no cost to the CITY OF MOUNTAIN HOUSE. If Contractor fails to correct damages within forty-eight (48) hours, the CITY OF MOUNTAIN HOUSE may arrange to have the damage corrected and bill Contractor.
The Contractor shall be responsible for repairing/replacing any existing plant material or irrigation systems in public or private landscapes damaged during maintenance operations, to their original condition at Contractor expense. Any damage to landscape areas shall be reported to the City immediately.
I. PUBLIC RELATIONS
The contractor shall always maintain good public relations. The work shall be conducted in a manner that shall cause the least possible interference or annoyance to the public.
The City of Mountain House reserves the rights to contract for and perform other or additional work on or near the work covered by these specifications. When separate contracts are let within the limits of any one project, each contractor shall conduct his work so as not to interfere with or hinder the progress or completion of the work being performed by other contractors. Contractors working on the same project shall cooperate with each other as directed. Each contractor involved shall assume all liability, financial or otherwise, in connection with his contract and shall protect and hold harmless the City of Mountain House from all damages or claims that may arise because of inconvenience, delays, or loss experienced by him because of the presence and operations of other contractors working within the limits of the same project.
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J. GENERAL CLEAN-UP
The Contractor is required to ensure that all grass clippings, debris, etc. resulting from the landscape maintenance practice shall be thoroughly cleaned up and removed from the work site at the conclusion of the workday. The facility shall be left in an acceptable condition to the City. In the event the site is left in an unsatisfactory condition, the Contractor shall be required to return to the site and correct the unsatisfactory condition.
In the event the Contractor does not correct the condition in a reasonable amount of time, City forces shall be dispatched, and the Contractor shall be charged for the work. Repeated violations of this section shall result in termination of the contract. No debris may be left on site or placed in a roadway or drainage structure that is part of or drains to the City’s storm water collection system.
K. INCLEMENT WEATHER
During the periods when inclement weather hinders or prevents normal maintenance operations, the Contractor shall adjust his work force to accomplish those activities that are not affected by weather as listed below:
The Contractor shall clean drains, gutters, or other drainage structures within contracted maintenance service areas or perform other activities as needed to address weather related issues. The Contractor shall make available to the City, adequate personnel to assist in any storm related response or damage repair to sites in this contract.
The Contractor shall immediately notify the City Representative when the work force has been removed from the job site due to inclement weather or other reasons.
During rainy and windy events, the Contractor will provide supervisory inspection of the project during regular hours to prevent or minimize possible damage from severe weather.
The Contractor shall submit a report identifying any storm damage to the Authorized CITY OF MOUNTAIN HOUSE Representative attached to a site map identifying location of damage and cost estimate to repair/replace. If remedial work is required beyond the Contractor's scope of work, it shall be considered as extra work.
L. MAINTENANCE and REPAIRS EXPENSE ACCOUNT PROVISION
Notwithstanding any other provision of this agreement, the Contractor shall be responsible for repair and/or replacement of landscaping or irrigation equipment due to Vandalism, i.e., action involving deliberate destruction of or damage to City property. This also includes but is not limited to losses due to natural causes, emergency irrigation repairs, auto accidents and losses due to aging or diseased plant material. The Maintenance and Repairs Expense Account Provision is also known as the M&R Provision.
1. The contractor shall provide at the beginning of this contract and every January 1st thereof, an estimated M&R Provision equal to 8% of the Base Annual Contract RFP OM2501 LANDSCAPE MAINTENANCE
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amount estimated after the calculated annual CPI requested increase outlined in (A.
General Standards, 8. Annual Adjustments).
2. The Annual M&R estimate submitted each January 1 shall be available the following July 1. Any unexpended M&R Provision funds remaining from the previous year shall be reimbursed to the City of Mountain House. The City Representative may request the unexpended funds to “roll-over” to the next fiscal year July 1. Any unexpended M&R Provision funds remaining from the previous year must be reimbursed prior to the expiration of the contract.
3. The Annual M&R Provision total shall be presented as a dedicated line item on each invoice, divided into twelve equal increments, and invoiced monthly.
4. The contractor shall provide a monthly balance report to the City, in a form approved by the City Representative, reporting all qualified maintenance and repair expenditures from the previous month providing the total amount of funds expended, and the total balance of funds remaining.
5. All cost to repair damaged landscape caused by Contractor neglect shall be borne by the Contractor and such cost shall not affect the aggregate limit.
6. The Contractor shall utilize the M&R Provision for vandalism and associated repairs and/or plant and tree replacements as necessary upon approval of the City Representative.
7. Report all incidents of vandalism/graffiti observed to the City Representative immediately. The contractor shall document all necessary repair costs and submit a vandalism report detailing the dates, times, and locations when work was completed, with each invoice submittal.
8. All repair projectsshall be invoiced against the M&R Provision limit illustrating detailed unit priced labor and materials in the cost proposal of this agreement.
9. In the event of vandalism, emergency irrigation repairs, storm damage or any other event that may put the public at risk and repairs cost under $2,000; the Contractor shall proceed with repairs after making every reasonable effort to first contact and obtain approval from the City Representative.
10. The City Representative must approve repairs costing more than $2000 per project; however, the Contractor shall not unreasonably withhold or delay repairs when the public is at risk.
11. The City of Mountain House will be responsible for the cost of repairs that exceed the M&R Provision limit.
12. In the event the contractor utilizes employees normally assigned to maintenance for the purpose of performing extra work, the extra work estimated costs shall exclude the cost of labor of these individuals, the cost of contractor supervision, or any other individuals or contractors hired or assigned to undertake such repairs.
13. In the event additional construction personnel are needed to perform larger repair projects, unit priced labor located in the Detailed Pricing Sheet in the Cost Proposal must be followed.
14. All M&R Provision repair projects and any projects assessed towards the M&R Provision must utilize the Detailed Unit Pricing Sheet in the Cost Proposal.
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M. EXTRA WORK
1. In the event the Contractor is required by the City to perform extra work, the following procedure shall govern such work:
When required by the Authorized City Representative, an estimate of cost will be submitted for approval prior to work being done. The Contractor shall maintain records sufficient to distinguish the direct cost from other operations and shall invoice extra work on forms furnished by the Contractor, itemizing all costs for labor, materials, and equipment rental according to unit cost located in the Detailed Pricing Sheet unit pricing in Exhibit C-Cost Proposal Package. The invoice shall itemize hours worked and hourly costs. The following procedure will govern such extra work:
a. Work will be executed under the direction of the Authorized City Representative on a time and material basis consistent with the unit pricing listed in the Cost Proposal or an agreed lump sum, depending on the nature of work.
b. The CITY OF MOUNTAIN HOUSE will issue a work request for such extra work to be performed.
c. Extra work will not be initiated without written authorization by the CITY OF MOUNTAIN HOUSE, except in emergencies.
2. Extra work may include, but not be limited to, the following:
a. Replacement of plant materials due to failures beyond the Contractor's control. b. Replacement of damaged sprinkler heads, valves, quick couplers, etc. (other than those included in the contract).
c. Additional soil amendments required for planting in special situations not covered in this specification.
d. Remedial landscaping.
e. Repairs or replacements due to vandalism, vehicle accidents or Acts of God, which are otherwise, not included in this specification.
All extra work shall be performed in accordance with recognized industry standards with the use of top-quality materials and workmanship.
N. PENALTY FOR NON-CONFORMANCE WITH SPECIFICATIONS
Landscaper shall not be deemed to be in default if performance of the obligations required by this contract is delayed, disrupted, or becomes impossible because of any act of nature, war, earthquake, fire, strike, accident, civil commotion, epidemic, act of government, its agencies or offices, or any other cause beyond the control of the parties (“Force Majeure”).
Upon occurrence of any such event, Landscaper shall operate landscaped area on a “best reasonable effort” basis and shall not be responsible for damages, fines, penalties, or claims resulting therefrom. If there is a reduction in services, payments shall be reduced subject to a mutually negotiated change. If Landscaper incurs additional expenses of more than $1,000 hereunder, itshall be subject to a mutually agreed change in price consistent with extra work costs in the Cost Proposal.
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O. EXCLUDED WORK
1. Maintenance and cleaning of roadways are not part of these landscape maintenance specifications except for debris created because of the landscape maintenance services or the removal of leaves from roadway gutters and storm drains, fallen trees, fallen branches, etc.
2. Maintenance, cleaning, and sight-line clearance of regulatory signage, lights, traffic signals, and entry monuments are not a part of these landscape maintenance specifications except when they are caused by trees and shrubs. After trimming and/or removal of trees, branches, shrubs and vines these facilities must be cleaned and restored.
3. Paving repairs, fencing repairs, drinking fountain repairs, water fountain maintenance and / or repairs, structural repairs (restroom buildings, shade shelters, etc. including furnishings inside or under and roofing), play equipment repairs, replacement of trash receptacles, bench and table repairs, replacement or sports equipment, replacement of any site appurtenances unless otherwise stated herein.
P. PLANT GUARANTEE AND/OR REPLACEMENT POLICY
1. Contractor shall replace existing plants if they die due to Contractor's negligence.
2. All replacement plants shall be inspected and approved by The City prior to installation. All landscape improvements or repairs shall conform to the Mountain House Landscape Specifications and Details.
3. Warrantee: Replacement plant material shall be warranted for the full term of the contract against defect in both workmanship and materials.
Q. UNDERGROUND ALERT
The Contractor shall comply with the requirements of Assembly Bill 73. The law states that, “…every person planning to conduct any excavation is required to contact a regional notification center at least 2 days prior to excavation” Assembly Bill 73 defines excavation as, “any operation in which earth, rock, or other material in the ground is moved, removed or otherwise displaced by means of tools, equipment, or explosives in any of the following ways: grading, trenching, digging, ditching, drilling, auguring, tunneling, scraping, cable or pipe and driving, or any other way.
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SECTION 3 – LANDSCAPE AND TURF
MAINTENANCE REQUIREMENTS
A. GENERAL MAINTENANCE REQUIREMENTS
Landscape maintenance requirements listed in this section shall apply to specific areas within a District or Zone. Areas may include but not be limited to turf, shrubs, groundcover areas, drainage areas, weed abatement areas, and natural hard surfaced areas. Maintenance includes the routine mowing, pruning, or trimming of turf, shrubs, and groundcover to maintain a neat appearance. Removingweedsthat are not controlled byherbicidesbefore size or abundance becomes a cause of complaint. Generally, weeds that exceed 2 inches in height or predominate in a bare area are unacceptable and shall be removed. Keep all areas in a neat, clean, and well-maintained condition always. Animal feces, broken glass, sharp objects, or other materials detrimental to human health shall be removed immediately.
1. Trash Receptacles
a. Trash receptacles shall be maintained by the Contractor. The volume each trash receptacle gathers varies from each location. The contractor must set a schedule to properly service these receptacles to prevent overflow onto the ground. Trash receptacles that have overflowed must be serviced immediately. b. The Contractor shall inspect trash receptacles in their respective areas as many times as needed during the week so that the receptacle is never over 50% full or if offensive odors are present.
c. Contractors shall include cost of materials and labor to services and supply liners used in trash receptacles.
2. Pet Stations
a. The Contractor shall inspect pet station receptacles in their respective areas as many times as needed during the week so that the receptacle is never over 50% full or if offensive odors are present.
b. Contractors shall include cost of materials and labor to services and supply dog baggies and trash liners used in pet stations.
3. Green Waste and Trash Dumpsters
a. Dumpster for green waste and trash will be supplied by the City of Mountain House for the sole use of our Landscape Contractors and are located at the Wastewater Treatment Facility on Bethnay Road.
b. No trash other than tree, shrub and grass clippings, leaves, organic waste is allowed in the green waste bin. Contractors will be responsible for removal of inorganic waste deposited into the green waste bin and any penalties resulting from illicit contents discovered by the State of California.
B. GENERAL IRRIGATION MAINTENANCE REQUIREMENTS
The City of Mountain House utilizes the WeatherTRAK® ET Pro3 Smart Irrigation system. The programming must utilize the provided EPA WaterSense for proper irrigation management.
The ET Pro3 controls multiple sites using both conventional wire technology and advanced 2- wire technology.
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communication subscriptions and warranty for ten years.
The Contractor shall provide trained staff educated in the programming and diagnosis of the WeatherTRAK ET Pro 3 smart irrigation controller and other controllersthat are used to irrigate City of Mountain House landscape.
The City of Mountain House Representative will review irrigation controller programming, audit irrigation water usage and inspect watering zones. Any deficiencies will be reported via 'Work Order" to the contractor for immediate correction. The completed work order must be returned to the Mountain House representative with the listed corrections, and materials and labor used.
1. IRRIGATION REPAIRS AND MAINTENANCE
a. The Contractor shall be responsible for, and include all labor and materials for, the repair of all site irrigation downstream from the backflow preventer, including all pressure main lines, or any equipment in line (flow meters, master valves, etc.), through lateral lines and sprinkler heads, including all irrigation controllers, control, and communication wiring. The Contractor shall make all repairs using parts approved by the City’s Representative and in accordance with the Mountain House Irrigation Standards and listed materials found in the Cost Proposal. b. The Contractor shall provide irrigation personnel fully trained in all phases of landscape irrigation systems operation, maintenance, adjustment, and repair. This is to include diagnosis and repair of controllers, valve wires, control valves, lateral lines, gate valves, main lines, strainers, pressure regulators, backflow devices, flow sensors, master valves and electric pedestals.
c. The contractor shall notify the City Representative of any main line failure within twenty-four (24) hours of occurrence.
d. Equipment determined to be at the end of its useful lifespan by the City Representative, shall be replaced and invoiced by the Contractor (at cost of the device plus 10%) this includes non-functioning and unrepairable components (controllers, master valves, flow meters).
e. The City shall pay labor at the rate shown in the Detailed Pricing Sheet in the Cost Proposal unless the work is performed by the staff that are already dedicated to CITY OF MOUNTAIN HOUSE. The work shall be performed by staff assigned to CITY OF MOUNTAIN HOUSE as much as possible unless specialized skills are required that the assigned staff does not possess.
f. The City Representative shall approve all repairs in advance. The Contractor shall not backfill any repairs without inspection by the City, unless authorized by the City Representative.
g. Damage to irrigation systems caused by the Contractor shall be the responsibility of the Contractor to repair within 48 hours of occurrence, by self-discovery or notification by the City at no additional cost to the City. All replacement parts and materials are to be of the same type and model as original installation unless the City Representative approves a substitute. Failure to do so shall result in correction by the Contractor at no additional cost to the City.
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h. The Contractor shall perform inspections and repairs of all irrigation systems within contracted sites on the following schedule:
1) Visual inspection for dry areas during routine maintenance. 2) Facilities, Fire Stations, Medians, Parkways, Parks:
• monthly
3) Sports Fields:
• 1x / month October through February
• 2x / month March through September
i. All inspections shall be included in the work schedule and be performed in the presence of the City Representative unless otherwise authorized. All stations on any given controller shall be operated automatically, with the performance of every sprinkler observed and deficiencies noted in writing on a form provided by or approved by the City.
j. Materials: All replacement materials shall be in accordance with the City’s Irrigation Standards. The contractor shall maintain an adequate inventory of medium-to-high usage stock items for repair of the irrigation systems. The contractor shall implement repairs in accordance with all warranties. The cost of materials invoiced to the City shall be no greater than the Contractor’s actual cost plus a 10% markup. k. The Contractor shall furnish the City with copies of all invoicing, with both pricing and quantities listed, for any purchases of all irrigation products monthly. l. The Contractor shall continually maintain the irrigation system for optimum performance. This shall include adjusting all sprinkler heads and valves for proper coverage; and cleaning the entire system including controllers, controller cabinets, booster pumps and cabinets, valves, and valve boxes, etc. m. The contractor shall keep all controllers in continuous working order. The contractor shall repair and clean the irrigation controllers as needed to ensure good working performance. The contractor shall keep all controller enclosures in good working condition. This includes cleaning door panels, vacuuming interiors, pest preventioneradication, lubrication of hinges, locks, etc. The contractor is responsible for always securing the controller cabinet door.
n. All electrically operated valves shall close completely at the conclusion of the stationwatering program. As needed, valves shall be cleaned, repaired, and/or replaced promptly to restore proper operation. Valve boxes shall be kept clean of rocks, soil, debris, and silt to a depth of 2” below the bottom of the valve. The Contractor shall exercise all valves and quick couplers at each site monthly. o. Failure of the current system to provide full and proper coverage shall not relieve the Contractor of the responsibility to provide adequate irrigation. p. Prior to commencement of this agreement, the Contractor shall include in writing, accept all irrigation systems within the scope of work as being in good working order, noting any exceptions. The Authorized CITY OF MOUNTAIN HOUSE Representative and the Contractor shall agree on the status of all exceptions. Documentation of the status of the irrigation systems at the commencement of work shall be the Contractor's responsibility.
q. It shall be the Contractor's responsibility to adjust and/or install modifications to the irrigation system necessitated by the maturity of plant material. r. Weeping valves, leaking mainlines, and defective piping, or other system components RFP OM2501 LANDSCAPE MAINTENANCE
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shall be repaired within twenty-four (24) hours of discovery or notification. s. The Contractor will keep system in operation by valve or head adjustment to keep all systems operating at manufacturer's recommended operating pressure. This shall be accompanied by valve throttling pressure gauging. The valves should be throttled to prevent sprinkler heads from fogging, allowing droplets for effective watering. The Authorized CITY OF MOUNTAIN HOUSE Representative may request a coverage test to evaluate proper settings, timing, usage, or maintenance of system.
2. IRRIGATION MANAGEMENT
a. The Contractor shall manage irrigation water applied to City landscape maintenance areas included in this contract at a rate and quantity which closely matches the actual demands of plant material with little or no runoff.
b. All turf areas shall be irrigated only as required to maintain acceptable growth and appearance without excess usage.
c. Any irrigation water restrictions imposed by the water provider and the California State Water Resources Board (SWRCB) shall be strictly adhered to. d. General requirements for watering and irrigation practices for trees, shrubs, vines, groundcover, and lawns shall be as follows:
1) Irrigation duration and frequency shall be dictated by the plants' need for water. 2) A soil probe shall be used weekly to determine the depth and adequacy of the irrigation program. These checks shall be used as a guide in scheduling irrigation applications.
3) Contractor must take into consideration the variety of shrubs located in the same areas. Irrigation duration and frequency is a function of the shallowest rooted plants in the area irrigated.
4) The Contractor shall always provide efficient use of water. The controllers shall be programmed and monitored to maintain adequate moisture optimal for growth and appearance, while eliminating excessive runoff. Adequate soil moisture shall be determined by visual observation, plant resiliency and turgidity, examining cores removed by soil probe, moisture sensor devices and programming irrigation controllers accordingly. Considerations must be given to soil texture, structure, porosity water holding capacity , drainage, compaction precipitation rate, runoff, infiltration rate, percolation rate, evapotranspiration, seasonal temperatures, prevailing wind condition, time of day or night, type of plant and root structure. e. The Contractor shall pay any penalties or fines imposed by the water provider or the SWRCB due to the failure of the Contractor to follow restrictions. f. One dedicated person must be completely responsible for operating the irrigation system with the duties of adjusting controllers, observing the effectiveness of the irrigation system, and making minor adjustments to the system. g. Dedicated person shall attend irrigation programming training annually. Training confirmation to be provided to the City Representative as requested. h. Controllers shall be programmed to suspend watering with a rain prediction of 50% or greater. The irrigation system shall remain off at least 48 hours after measurable rainfall of .05" or greater, or until the moisture content of the soil has depleted below the minimum requirement for plant material.
i. The Contractor has the responsibility to adequately diagnose problems and the RFP OM2501 LANDSCAPE MAINTENANCE
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authority to take corrective action as called for in the contractspecifications. Should the CITY OF MOUNTAIN HOUSE be called upon to diagnose an irrigation problem that is the Contractor's responsibility, the CITY OF MOUNTAIN HOUSE's labor and material cost incurred will be deducted from the monthly payment to the Contractor.
3. IRRIGATION SYSTEM FAILURE AND REPORTING
a. Upon discovery, the Contractor shall immediately report any irrigation system malfunctions, vandalism, or damage to the City Representative. The Contractor shall be responsible for necessary repairs to irrigation controllers. b. Plant damage or loss resulting from the failure of the contractor to promptly report and correct irrigation system failures shall be considered Contractor negligence, and such plant material shall be repaired or restored at the Contractor's expense. c. Accidental damage, vandalism and/or equipment failure of any controllers, sprinklers, valves, laterals, and main lines not resulting from the Contractor's negligence or operations shall be reported to the Authorized CITY OF MOUNTAIN HOUSE Representative with an estimate for repairs reflecting unit pricing located in The Cost Proposal
d. The City Representative shall inspect, review, and confirm any proposed repairs to the irrigation system prior to approval.
e. The Contractor shall furnish the City with copies of all invoicing, with itemized pricing included but not limited to, materials, labor, subcontracts, etc. monthly. f. The contractor shall furnish the City with a Monthly Irrigation Report that provides information on the quantities of controllers, sprinklers, valves, laterals, and main lines repaired and categorized as vandalism, contracted repairs, or noncontract repairs.
4. IRRIGATION BOOSTER PUMP MAINTENANCE
As part of the cost of this contract, perform the following maintenance requirements for the irrigation booster pump system to ensure optimal performance, efficiency, and longevity. Regular maintenance will minimize downtime and prevent costly repairs. The Contractor will bear the cost to correct any damage or malfunctions caused by the failure to perform the following maintenance.
Monthly Routine Maintenance, or Upon Suspected Issues:
• Check for leaks, corrosion, and structural integrity of the pump and piping system. • Inspect electrical connections, wiring, and control panels for wear or damage. • Ensure the pump foundation and mounting bolts are secure. • Grease or lubricate pump bearings as per manufacturer’s recommendations. • Check and refill oil in pump motor if applicable.
• Inspect and tighten all mechanical seals and gaskets. • Check for abnormal vibrations or noises during operation. • Verify proper alignment of pump and motor shafts.
• Check pump pressure and flow rate to ensure it meets required specifications. • Inspect and clean strainers, filters, and intake screens. • Verify the operation of check valves and pressure relief valves. • Inspect motor winding insulation resistance and megohm readings. • Test voltage and current draw to ensure within acceptable limits.
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• Inspect and test starter, relay, and overload protection devices.
Annual Inspection and Preventive Maintenance Tasks & Reporting:
• Conduct a pressure test to check system efficiency.
• Compare current performance data with baseline readings. • Clean impellers, volutes, and internal components as needed. • Flush pump system to remove debris and sediment.
• Replace worn-out seals, O-rings, and gaskets to prevent leaks. • Inspect belts, pulleys, and couplings for wear and proper tension. • Test and recalibrate variable frequency drives (VFDs) if applicable. • Record all inspections, tests, and repairs performed. • Provide detailed reports on system efficiency and recommendations for improvements.
• Suggest any required system upgrades or modifications.
Corrective Maintenance (Repairs & Replacement as Needed) shall be invoiced 15% over cost. Invoicing shall include original manufacturer’s/supplier’s invoice.
1. Leak Repair – Fix leaks in piping, fittings, or pump casing.
2. Bearing Replacement – Replace worn-out bearings to avoid motor failure.
3. Impeller and Shaft Repair – Repair or replace damaged impellers or shafts.
4. Motor Repair or Replacement – Overhaul or replace motor if necessary.
5. Valve Replacement – Repair or replace malfunctioning check and control valves.
C. DRAINAGE MAINTENANCE REQUIREMENTS
1. GENERAL DRAINAGE MAINTENANCE
a. All landscaped areas employ surface drainage and area drains. The Contractor shall be responsible for drainage performance, maintenance, and management within landscape areas.
b. The Contractor shall continually maintain the drainage systems for optimum performance.
c. Regular inspection of the drainage shall include visual inspection for wet areas during routine maintenance; bi-monthly inspections of drainage clean-outs during the summer months (April through October); and monthly inspections of drainage clean-outs during November through March.
d. All malfunctioning drainage shall be repaired prior to the next scheduled irrigation. All missing or broken lids or structures must be replaced IMMEDIATELY. e. It is the Contractor's responsibility to maintain drainage to avoid over-wet conditions caused by clogged, broken or leaking drain lines. Drainage shall accommodate soil and slope conditions, and rainy weather.
f. Periodic adjustments and repairs are required to maintain desired soil moisture levels by removing surface water quickly.
g. An overly saturated landscape caused by normal irrigation or rainy weather must be reported to the City Representative immediately.
h. Corrective measuresfor overly saturated landscape caused by normal irrigation or rainy weather must be proposed to the City.
i. All proposed work shall reflect Extra Work Unit Pricing, located in The Cost Proposal and approved by the City Representative.
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j. Any failure or damage to the drainage systems, including plant damage caused by the negligence or operations of the Contractor, shall be repaired, or restored by the Contractor without charge to the CITY OF MOUNTAIN HOUSE. Such repairs shall be performed within one watering period.
2. REPAIRS AND COMPENSATION
a. Accidental damage, vandalism, or equipment failure not resulting from the Contractor's negligence or operations shall be reported to the Authorized CITY OF MOUNTAIN HOUSE Representative including copies of all invoices, with itemized pricing included but not limited to, materials, labor, subcontracts, etc. located in The Cost Proposal.
D. FERTILIZATION PROGRAM
Fertilization programs shall be based upon recommendations from initial soil Agricultural Suitability Analyses or as directed by the Authorized CITY OF MOUNTAIN HOUSE Representative. Fertilization Schedule Reporting shall be submitted annually to the authorized CITY OF MOUNTAIN HOUSE Representative.
E. SOIL ANALYSIS AND TESTING
1. CONTRACTOR RESPONSIBILITY
a. The Contractor shall schedule soil analysis upon the beginning of the contract to establish proper fertilization sequences and blends. Samples shall be taken at designated locations within the contractor’s area of maintenance. Samples shall be gathered along each arterial and park including one of shrub beds and one of turf areas and delivered to the soil-testing laboratory.
b. The laboratory and labor costs shall be borne by the Contractor. c. The Contractor may be directed to take additional samples of soil or plant tissue for analysis purposes. These tests shall be used to determine specific causes of plant failure and/or fertility levels. The cost shall be borne by the contractor.
F. INTEGRATED PEST CONTROL MANAGEMENT
The Public Works Department of the City of Mountain House encouragesthe use of effective pest control measures. The contractor shall have extensive knowledge and experience developing and implementing Integrated Pest Management (IPM) Programs and shall develop, implement, and adjust an IPM program for each site the contractor is responsible for. Effective alternatives besides Round-up and similar chemicals should be considered and presented to CITY OF MOUNTAIN HOUSE.
1. GENERAL REQUIREMENTS
a. The contractor is required to provide written Pest Control Recommendations for each product applied within the City that has an E.P.A. registration number and per DPR Regulations. The contractorshallsubmit to the City and maintain a copy on-site during any pesticide application, a Material Safety Data Sheet (MSDS) for each product as required by Labor Code Sections 6832 and 6390, General Industrial Safety Order Section 5194 and Title 8, California Administrative Code. Applicators must follow all DPR requirements for posting, personal protective equipment, label information, service container marking, required on-site information, etc., when transporting, mixing/loading, applying or equipment cleaning.
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b. All pesticide applications are to be under the supervision of a licensed pesticide applicator holding a QAL with the appropriate category for public and municipal landscape. Said person or company is to be currently registered to conduct a pest control business in the State of California and the County of San Joaquin. c. Pesticide applications are to be made in strict compliance with the product label directions, restrictions, and precautions as well as with any other requirements deemed necessary by any county, state or federal regulatory agency, or the Public Works Department of the City of Mountain House.
d. Within thirty days of the award of contract, and/or prior to the actual start of work, Contractor shall supply to the City a list of all chemicals proposed to be used in the fulfillment of said contract. No “generic” chemicals shall be allowed for substitution purposes, unless approved by the City Representative in writing. e. The most current specimen labels and Material Safety Data Sheets for all listed chemicals shall be supplied within thirty days of the award of contract, and/or prior to the actual start of work. Copies of both the P.C.A. recommendations and applicable Pest Control Advisor and Qualified Applicator Licenses or Qualified Applicator Certificates, shall be submitted, as well as documentation of San Joaquin County registration. All above-mentioned items shall be resubmitted in January of each year the Contract isin effect. The city shall be notified in writing of any changes or deviations from the above list. Application of deviated materials shall not be made prior to written approval by the City.
2. SOIL ANALYSIS REQUIREMENTS
a. Soil analysis shall include PH measurement in the saturation extract, electrical conductivity of the saturation extract and the sodium absorption ratio of the saturation extract.
b. The following elements must be determined with an approved extraction method:
1) Manganese
2) Zinc
3) Copper
4) Boron
5) Magnesium
6) Sodium
7) Sulfur
8) Molybdenum
9) Calcium
10) Iron
11) Phosphorus
12) Potassium
c. The saturations extract must be analyzed for calcium, magnesium, sodium, boron, chloride nitrate and sulfate.
d. The following trace metals must be measured by the DTPA extract:
1) Aluminum
2) Arsenic
3) Cadmium
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4) Chromium
5) Cobalt
6) Lead
7) Lithium
8) Selenium
9) Silver
10) Strontium
11) Tin
12) Vanadium
e. The presence of calcium carbonate and/pr magnesium carbonate must be determined.
f. Soil texture and organic matter content may be estimates or determined by commonly used methods.
g. Interpretation of nutritional deficiencies or excesses and potential toxicities must be given.
h. Determine the following be methods approved by the American Society of Agronomy:
1) Exchangeable ammonium cation
2) Base saturation
3) Cation exchange capacity
4) Carbonates determination
5) Soil bulk density
6) Sand, silt and clay determination
7) Water infiltration rate
Recommendationsforsoil mitigation procedures, frequency, quantities, chemical properties and recommended manufacturers or supplier for any specialty items. Only the approved testing agency shall be used for testing and analysis.
3. WEED CONTROL OF PAVED SURFACES
a. Contractor shall be responsible for controlling, by mechanical or chemical means, weeds growing in cracks, or expansion joints, within the work site (sidewalks or other hardscape) and areas contiguous to the work site including curb and gutter extending to the edge ofthe roadway and decomposed granite/crushed rock areas. b. All designated hardscape shall be inspected and maintained weekly. The Contractor shall maintain all hardscape surfaces “weed and trash free.” Weeds be more than a height of 2” shall be immediately removed manually or mechanically. The removal of cigarette butts, sand, bubble-gum, dirt, trash, etc. shall occur for each hardscape during the weekly maintenance.
4. PEST CONTROL IN LANDSCAPED AREAS
a. Control of horticulturally damaging plant pests (insects, diseases, vertebrates, mites, etc.) shall be the responsibility of the Contractor. The contractor shall treat areas within the contract on an as needed basis with EPA registered pesticides to control insects, diseases and/or snails and slugs, as determined by the City.
b. Written recommendations by a licensed California Agricultural Pest Control Adviser are required to be submitted to the City prior to any application of RFP OM2501 LANDSCAPE MAINTENANCE
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pesticides. “Control” shall mean the prevention or eradication of any pest to the satisfaction of the City.
c. The City may determine an acceptable level of impact by a pest and adjust the pest control program of the Contractor accordingly. d. Proper cultural practices shall be a part of the Contractor’s pest control program. Failure to prevent, treat, or manage any pest infestation that results in loss of plant material or create a risk to public health and safety may be remedied by the City at Contractor’s expense in the form of a reduction in payment.
e. Contractorshall Post notices at prior to pesticide applications when required.
The contractor shall supervise the site for the duration of any required reentry interval or until product is dry, whichever is greater. Posting materials, locations and verbiage shall be approved by the City in advance. f. Rodent Control: Contractor shall monitor all contracted areas for rodent activity. The Contractor shall apply City approved rodenticides as needed to manage populations to a level acceptable to the City Representative.
5. PRE-EMERGENT AND POST-EMERGENT
a. Apply pre-emergent and post-emergent weed control to all ground cover and shrub beds per Exhibit ‘B’ at the maximum allowable rate per the manufacturer’s label. Contractor may apply pre-emergent herbicide on a more frequent interval to manage weed populations at an acceptable level at no additional cost to the City.
b. Non-irrigated landscape shall have pre-emergent applied after November 1st so that seasonal rain will water it in.