Resolution No. 2534 December 14th, 2022
RESOLUTION NO. 2534
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA PROCLAIMING A
LOCAL EMERGENCY PERSISTS, RE-RATIFYING THE PROCLAMATION OF A STATE OF EMERGENCY BY GOVERNOR OF CALIFORNIA MARCH 4, 2020, AND REAUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY OF PORTOLA FOR THE PERIOD OF DECEMBER 11TH, 2022 TO JANURARY 10TH, 2023 PURSUANT TO BROWN ACT PROVISIONS.
WHEREAS, the City of Portola is committed to preserving and nurturing public access and participation in meetings of the City Council; and
WHEREAS, all meetings of the City of Portola’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and WHEREAS, the Brown Act, Government Code section 54953(e), makes provision for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and
WHEREAS, a proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological or human-caused disasters; and WHEREAS, it is further required that state or local officials have imposed or recommended measures to promote social distancing, or, the legislative body meeting in person would present imminent risks to the health and safety of attendees; and
WHEREAS, the Governor of California issued a proclamation of a state of emergency March 4, 2020 and the City Council of the City of Portola previously proclaimed by Official Proclamation on March 19, 2020, finding that the requisite conditions exist for the legislative bodies of the City of Portola to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of section 54953; and
WHEREAS, as a condition of extending the use of the provisions found in section 54953(e), the City Council must reconsider the circumstances of the state of emergency that exists in the City of Portola, and the City Council has done so; and
WHEREAS, emergency conditions persist in the City of Portola specifically, a novel coronavirus, COVID-19, which symptoms include fever, cough, and shortness of breath with outcomes ranging from mild to severe illness, and in some cases death; and
WHEREAS, Plumas County, where the residents of the City of Portola reside, reports that many cases of COVID-19 and its variants continue to be contracted regularly within the county; and WHEREAS, the City of Portola does hereby find that the Existence of a Local Emergency due to the COVID-19 Pandemic has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City of Portola and desires to affirm a local emergency exists and re-ratify the proclamation of state of emergency by the Governor of the State of California; and WHEREAS, as a consequence of the local emergency persisting, the City Council does hereby find that the legislative bodies of the City of Portola shall continue to conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such legislative bodies shall continue to comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and
Resolution No. 2534 December 14th, 2022
WHEREAS, the City Council of the City of Portola has been conducting meeting via live streaming at:
https://zoom.us/j/3583067836 or by phone at: 1.669.900.6833, meeting ID 358 306 7836 so that the public may participate in the City Council meetings;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORTOLA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. Affirmation that Local Emergency Persists. The City Council hereby considers the conditions of the state of emergency in the City of Portola and proclaims that a local emergency persists throughout the City, and the novel coronavirus, COVID-19, continues to persist within the City as well as throughout Plumas County at a rate that poses significant risk to the health of all citizens.
Section 3. Re-ratification of Governor’s Proclamation of a State of Emergency. The City Council hereby ratifies the Governor of the State of California’s Proclamation of State of Emergency, effective as of its issuance date of March 19, 2020.
Section 4. Remote Teleconference Meetings. The City Manager and legislative bodies of the City of Portola are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.
Section 5. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) December 11th, 2022, or such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953€(3) to extend the time during which the legislative bodies of the City of Portola may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.
PASSED AND ADOPTED by the City Council of the City of Portola, this 14th day of December 2022, by the following vote:
AYES:________________________
NOES:
ABSTAIN:
ABSENT: _____________________
Pat Morton, Mayor
ATTEST:
Jason Shaw Deputy City Clerk
I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council at the City of Portola Regular meeting thereof held on December 14, 2022.
Jason Shaw, Deputy City Clerk
Resolution No. 2536 December 14th, 2022
RESOLUTION NO. 2536
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA
RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD IN THE CITY OF PORTOLA ON NOVEMBER 6, 2022, DECLARING THE RESULT AND
SUCH OTHER MATTERS AS PROVIDED BY LAW
WHEREAS, a General Municipal Election was held and conducted by all mail ballot by Plumas County, California, on Tuesday, November 6, 2022, as required by law; and WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in general law cities; and WHEREAS, the County Election Department canvassed the returns of the election and has certified the results to this City Council, the results are received, attached, and made a part hereof as "Exhibit A."
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORTOLA,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1.
That the whole number of ballots cast in the all mail ballot election in the City was 981 and the whole number of provisional ballots cast in the City was 0, making a total of 981 ballots cast in the City.
Section 2. That the names of persons voted for at the election for the 4 year member of the City Council (term ending December 2026) and the number of votes received by each candidate are as follows:
Candidate Number of votes
Bill Powers 347
Leah Turner 330
Phil Oels 304
Write-in 0
Section 3. The City Council does declare and determine that: Bill Powers was elected as Member of the City Council for the full term of four years, and Leah Turner was elected as Member of the City Council for the full term of four years.
Section 4. The Deputy City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election showing: (1) The whole number of ballots cast in the City; (2) The names of the persons voted for; (3) For what office each person was voted for; (4) The total number of votes given to each person.
Section 5. The Deputy City Clerk shall administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk. Each and all of the persons so elected shall be inducted into the respective office to which they have been elected.
Section 6. That the Deputy City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED this 14th day of December 2022 by the following vote:
Resolution No. 2536 December 14th, 2022
AYES: _____________________
NOES: _____________________
ABSTAIN: __________________
ABSENT: ___________________
_________________________
MAYOR, Pat Morton
ATTEST:
____________________________________
DEPUTY CITY CLERK, Jason Shaw
I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council of the City of Portola at a regular meeting thereof held on December 14, 2022.
_________________________________________
DEPUTY CITY CLERK, Jason Shaw
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OATH OF OFFICE
OATH, for the office of, Councilmember, City of Portola I, Bill Powers, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.
Signature: ___________________________________
Bill Powers
State of California
County of, Plumas
City of, Portola
Subscribed and sworn (or affirmed) before me on Thursday, December 14, 2022.
Signature: ____________________________________
Jason Shaw, Deputy City Clerk
OATH OF OFFICE
OATH, for the office of, Councilmember, City of Portola I, Leah Turner, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.
Signature: ___________________________________
Leah Turner
State of California
County of, Plumas
City of, Portola
Subscribed and sworn (or affirmed) before me on Thursday, December 14, 2022.
Signature: ____________________________________
Jason Shaw, Deputy City Clerk
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Resolution No. 2535 December 14th, 2022
RESOLUTION NO. 2535
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA
AUTHORIZING PAYMENT OF CLAIMS FOR THE PERIOD
NOVEMBER 16, 2022 THROUGH DECEMBER 14, 2022.
ACCOUNTS PAYABLE
CHECK NUMBERS: 44406 – 44494
PAYROLL
CHECK NUMBERS: 17213 – 17220
WHEREAS, the City Council of the City of Portola has been fully advised that all such claims and demands are legal obligations of the City; and,
WHEREAS, the City Council has fully considered the claims and money demands and payment thereof as set forth below and in "Exhibit A" attached hereto and incorporated herein.
ACCOUNTS PAYABLE: $ 183,115.49
PAYROLL: $ 53,075.19
TOTAL: $ 236,190.68
NOW THEREFORE BE IT RESOLVED THAT all claims and demands represented are just and proper and legal demands or claims against the City of Portola, and the payment of any such demands is approved and authorized.
PASSED, APPROVED AND ADOPTED this 14th day of December, 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Pat Morton, Mayor
ATTEST:
Jason Shaw, Deputy City Clerk
I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council at the City of Portola Regular meeting thereof held on December 14, 2022.
Jason Shaw, Deputy City Clerk
11/15/2022 4:09 PM DIRECT PAYABLES CHECK REGISTER PAGE: 1 PACKET: 00144 AP RUN 11.23.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 000009 CRESCENT TOW & REPAIR
I-202211150812 AVA VEH ABATEMENT R 11/23/2022 2,900.00 044406 2,900.00 0005 AIRGAS, INC.
I-202211150796 ACETLENE/OXYGEN R 11/23/2022 230.32 044407 230.32 0015 AMERIGAS
I-202211150793 LDWTP PROPANE R 11/23/2022 481.19 044408 481.19 0015 AMERIGAS
I-202211150798 PUBLIC WORKS PROPANE R 11/23/2022 252.49 044409 252.49 0015 AMERIGAS
I-202211150799 CITY HALL PROPANE R 11/23/2022 305.35 044410 305.35 0021 AT&T
I-202211150802 800 EMER LINE R 11/23/2022 4.76 044411 4.76 0048 CBC COMPANIES-FACTUAL DATA
I-202211150795 UB UTILITY CREDIT CHECKS R 11/23/2022 34.50 044412 34.50 0052 CITY OF PORTOLA
I-202211150801 CITY WATER/SEWER BILLS R 11/23/2022 2,906.04 044413 2,906.04 *VOID* 044414 VOID CHECK V 11/23/2022 044414 **VOID**
0054 CLIFTONLARSONALLEN LLP
I-202211150800 AUDITING SERVICES R 11/23/2022 11,000.00 044415 11,000.00 0055 COATES TIRE CENTER
I-202211150814 VEH/EQUIP REPAIR R 11/23/2022 674.99 044416 674.99 0072 DOBROS PARTS-LLC
I-202211150810 SNOW VEH REP R 11/23/2022 146.97 044417 146.97 0085 FLAG STORE
I-202211150818 STREET SUPPLIES R 11/23/2022 295.24 044418 295.24 0086 FOLCHI LOGGING & CONSTR., INC.
I-202211150823 SYSTEM IMPROVEMENT R 11/23/2022 2,048.00 044419 2,048.00 0101 HUNT & SONS, INC.
I-202211150807 CITY FUEL CHARGES R 11/23/2022 5,694.73 044420 5,694.73 11/15/2022 4:09 PM DIRECT PAYABLES CHECK REGISTER PAGE: 2 PACKET: 00144 AP RUN 11.23.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 0105 INTERMOUNTAIN DISPOSAL
I-202211150803 REFUSE COLLECTION R 11/23/2022 1,300.45 044421 1,300.45 0111 JEFFERSON SUPPLY COMPANY
I-202211150816 WATER LINE REPAIR R 11/23/2022 134.06 044422 134.06 0130 LEONARD'S MARKET
I-202211150804 WATER SUPPLIES R 11/23/2022 14.42 044423 14.42 0136 MANHARD CONSULTING
I-202211150820 PLANNING PROFESSIONAL SERVICES R 11/23/2022 640.00 044424 640.00 0159 OFFICE DEPOT
I-202211150811 OFFICE SUPPLIES R 11/23/2022 251.37 044425 251.37 0173 PITNEY BOWES
I-202211150797 POSTAGE FOR METER R 11/23/2022 520.99 044426 520.99 0180 PLUMAS COUNTY ENVIRONMENTAL
I-202211150821 CUPA FEES R 11/23/2022 262.00 044427 262.00 0188 PORTER SIMON CORPORATION
I-202211150813 LEGAL SERVICES R 11/23/2022 6,240.00 044428 6,240.00 0191 PRINTING SYSTEMS
I-202211150809 AP/PAYROLL CHECKS R 11/23/2022 351.84 044429 351.84 0212 SIERRA CONTROLS, LLC
I-202211150822 WATER/SEWER PROF SERVICES R 11/23/2022 405.00 044430 405.00 0218 SILVER STATE ANALYTICAL
I-202211150819 WATER/WASTEWATER TESTING R 11/23/2022 700.00 044431 700.00 0225 SONSRAY MACHINERY, LLC
I-202211150815 SNOW VEH REPAIR R 11/23/2022 184.59 044432 184.59 0227 STATE OF CALIFORNIA
I-202211150805 SIGNALS & LIGHTING R 11/23/2022 525.67 044433 525.67 0235 SUSAN SCARLETT
I-202211150794 ACCOUNTING SERVICES R 11/23/2022 5,000.00 044434 5,000.00 0244 TRIPLE CROWN PRODUCTS
I-202211150808 MATERIALS & SUPPLIES R 11/23/2022 214.49 044435 214.49 11/15/2022 4:09 PM DIRECT PAYABLES CHECK REGISTER PAGE: 3 PACKET: 00144 AP RUN 11.23.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 0246 TYLER TECHNOLOGIES, INC
I-202211150806 INCODE SB2 R 11/23/2022 880.00 044436 880.00 0255 US DEPARTMENT OF AGRICULTURE
I-202211150817 LOAN 91-04 INT R 11/23/2022 17,770.70 044437 17,770.70 * * B A N K T O T A L S * * NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 31 0.00 62,370.16 62,370.16
HANDWRITTEN CHECKS: 0 0.00 0.00 0.00
PRE-WRITE CHECKS: 0 0.00 0.00 0.00
DRAFTS: 0 0.00 0.00 0.00
VOID CHECKS: 1 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
CORRECTIONS: 0 0.00 0.00 0.00
BANK TOTALS: 32 0.00 62,370.16 62,370.16
11/15/2022 4:09 PM DIRECT PAYABLES CHECK REGISTER PAGE: 4 PACKET: 00144 AP RUN 11.23.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: ALL
** REGISTER GRAND TOTALS *
* * T O T A L S * * NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 31 0.00 62,370.16 62,370.16
HANDWRITTEN CHECKS: 0 0.00 0.00 0.00
PRE-WRITE CHECKS: 0 0.00 0.00 0.00
DRAFTS: 0 0.00 0.00 0.00
VOID CHECKS: 1 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
CORRECTIONS: 0 0.00 0.00 0.00
REGISTER TOTALS: 32 0.00 62,370.16 62,370.16
** POSTING PERIOD RECAP **
FUND PERIOD AMOUNT
-----------------------------------------
100 11/2022 16,136.70CR
207 11/2022 3,401.30CR
208 11/2022 1,987.74CR
215 11/2022 800.00CR
710 11/2022 26,485.71CR
720 11/2022 10,144.54CR
730 11/2022 3,414.17CR
===========================================
ALL 62,370.16CR
TOTAL ERRORS: 0 TOTAL WARNINGS: 0
12/07/2022 12:57 PM DIRECT PAYABLES CHECK REGISTER PAGE: 1 PACKET: 00151 AP RUN 12.14.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 000009 CRESCENT TOW & REPAIR
I-202212070873 VEH ABATEMENT R 12/14/2022 8,400.00 044438 8,400.00 000018 CINTAS
I-202212070829 MEDICAL SUPPLIES R 12/14/2022 72.95 044439 72.95 000025 AUTO & TRUCK ELECTRIC IN
I-202212070828 SNOW VEH REPAIR R 12/14/2022 270.66 044440 270.66 000027 NATIONAL INDUSTRIAL & SAFETY SU
I-202212070836 SNOW SUPPLIES R 12/14/2022 400.00 044441 400.00 0008 ALWAYS ANSWER
I-202212070868 800 NUMBER R 12/14/2022 53.43 044442 53.43 0014 AMERICAN WINDMILLS
I-202212070830 SEWER SYSTEM IMPROVEMENT R 12/14/2022 5,000.00 044443 5,000.00 0015 AMERIGAS
I-202212070860 CITY HALL PROPANE R 12/14/2022 994.53 044444 994.53 0015 AMERIGAS
I-202212070861 PUBLIC WORKS PROPANE R 12/14/2022 1,202.87 044445 1,202.87 0015 AMERIGAS
I-202212070862 LDWTP PROPANE R 12/14/2022 714.15 044446 714.15 0015 AMERIGAS
I-202212070863 SOUTHSIDE FH PROPANE R 12/14/2022 343.89 044447 343.89 0020 ASCAP
I-202212070847 ANNUAL LICENSE FEES R 12/14/2022 412.04 044448 412.04 0022 AT&T
I-202212070849 LDWTP LONG DISTANCE CHARGES R 12/14/2022 64.69 044449 64.69 0023 AT&T CALNET 3
I-202212070850 SCADA LDWTP R 12/14/2022 70.03 044450 70.03 0027 BASTIAN ENGINEERING
I-202212070833 ENGINEERING PROF SERVICES R 12/14/2022 1,819.13 044451 1,819.13 0039 BULLET INFORMATION TECHNOLOGY
I-202212070859 IT SERVICES R 12/14/2022 1,225.00 044452 1,225.00 12/07/2022 12:57 PM DIRECT PAYABLES CHECK REGISTER PAGE: 2 PACKET: 00151 AP RUN 12.14.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 0046 CASHMAN EQUIPMENT COMPANY
I-202212070871 SEWER SYSTEM IMPROVEMENT R 12/14/2022 4,872.70 044453 4,872.70 0052 CITY OF PORTOLA
I-202212070858 CITY WATER/SEWER BILLS R 12/14/2022 2,145.63 044454 2,145.63 *VOID* 044455 VOID CHECK V 12/14/2022 044455 **VOID**
0055 COATES TIRE CENTER
I-202212070839 VEH/EQUIP REPAIR R 12/14/2022 130.53 044456 130.53 0057 CONNOLLY ENGINEERING
I-202212070831 PLAN REVIEWS R 12/14/2022 377.52 044457 377.52 0062 CSG CONSULTANTS
I-202212070864 CODE ENFORCEMENT R 12/14/2022 6,240.00 044458 6,240.00 0078 ENCOMPASS
I-202212070855 XEROX COPIES R 12/14/2022 233.44 044459 233.44 0085 FLAG STORE
I-202212070844 FLAGS R 12/14/2022 295.24 044460 295.24
0086 FOLCHI LOGGING & CONSTR., INC.
I-202212070840 SWER LINE REPAIR R 12/14/2022 761.48 044461 761.48 0091 GRANITE
I-202212070842 RIVERWALK R 12/14/2022 17,674.73 044462 17,674.73 0096 HARBOR FREIGHT TOOLS
I-202212070841 SNOW MATERIALS R 12/14/2022 374.42 044463 374.42 0101 HUNT & SONS, INC.
I-202212070875 FUEL CHARGES R 12/14/2022 5,426.52 044464 5,426.52 0103 IEDA
I-202212070867 LABOR RELATIONS CONSULTING R 12/14/2022 245.30 044465 245.30 0118 KANSAS LIFE INSURANCE CO
I-202212070856 EMPLOYEE LIFE INSURANCE R 12/14/2022 69.54 044466 69.54 0122 KIMBALL MIDWEST
I-202212070872 SNOW MATERIALS R 12/14/2022 930.68 044467 930.68 12/07/2022 12:57 PM DIRECT PAYABLES CHECK REGISTER PAGE: 3 PACKET: 00151 AP RUN 12.14.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 0124 KOMATSU EUIPMENT
I-202212070837 SEWER POND CLEAN OUT R 12/14/2022 11,066.86 044468 11,066.86 0133 LIBERTY UTILITIES
I-202212070851 CITY ELECTRIC BILLS R 12/14/2022 6,074.68 044469 6,074.68 0141 MCI MEGA PREFERRED
I-202212070876 800 LONG DISTANCE CHARGES R 12/14/2022 46.05 044470 46.05 0148 NAPA SIERRA
I-202212070832 MATIERALS & SUPPLIES R 12/14/2022 812.21 044471 812.21 0153 NEVADA SMALL ENGINES
I-202212070843 EQUIP REPAIR R 12/14/2022 521.75 044472 521.75 0157 O'REILLY AUTO PARTS
I-202212070826 SNOW VEH REPAIR R 12/14/2022 120.29 044473 120.29 0162 OPERATING ENGINEERS
I-202212070874 EMPLOYEE HEALTH INSURANCE R 12/14/2022 11,696.00 044474 11,696.00 0175 PLUMAS ACE HARDWARE
I-202212070827 MATERIALS & SUPPLIES R 12/14/2022 1,601.81 044475 1,601.81 0184 PLUMAS SIERRA RURAL ELECTRIC
I-202212070877 LDWTP ELECTRIC R 12/14/2022 1,360.80 044476 1,360.80 0185 PLUMAS SIERRA TELECOMMUNICAT
I-202212070878 CITY INTERNET SERVICES R 12/14/2022 382.00 044477 382.00 0218 SILVER STATE ANALYTICAL
I-202212070846 WATER/WASTE WATER TESTING R 12/14/2022 828.00 044478 828.00 0225 SONSRAY MACHINERY, LLC
I-202212070835 SEWER SYSTEM IMPROVEMENT R 12/14/2022 7,580.10 044479 7,580.10 0231 SUCCEED.NET
I-202212070879 WEB HOSTING R 12/14/2022 67.85 044480 67.85 0236 SWRCB
I-202212070838 ANNUAL PERMIT FEES R 12/14/2022 1,738.00 044481 1,738.00 0239 THATCHER COMPANY
I-202212070869 LDWTP CHEMICALS R 12/14/2022 7,418.09 044482 7,418.09 12/07/2022 12:57 PM DIRECT PAYABLES CHECK REGISTER PAGE: 4 PACKET: 00151 AP RUN 12.14.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: PC POOLED CASH - PLUMAS
CHECK CHECK CHECK CHECK
VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT
------------------------------------------------------------------------------------------------------------------------------------ 0240 THOMAS G. VALENTINO
I-202212070848 SW CONSULTING SERVICES R 12/14/2022 765.00 044483 765.00 0246 TYLER TECHNOLOGIES, INC
I-202212070866 SB2 INCODE R 12/14/2022 760.00 044484 760.00 0252 UNITED STATES POSTAL SERVICE
I-202212070880 PERMIT POSTAGE R 12/14/2022 1,500.00 044485 1,500.00 0253 US BANCORP
I-202212070870 CITY CREDIT CARD CHARGES R 12/14/2022 995.97 044486 995.97 0256 USA BLUE BOOK
I-202212070845 WATER MATERIALS R 12/14/2022 252.65 044487 252.65 0258 USDA FOREST SERVICE PIPELINE
I-202212070834 PIPELINE SPECIAL USE PERMIT R 12/14/2022 693.91 044488 693.91 0260 VERIZON WIRELESS
I-202212070852 LDWTP DATA PLAN R 12/14/2022 108.05 044489 108.05 0260 VERIZON WIRELESS
I-202212070853 CITY CELL PHONES R 12/14/2022 325.40 044490 325.40 0260 VERIZON WIRELESS
I-202212070854 CITY LAND LINES R 12/14/2022 487.68 044491 487.68 0264 WESTERN NEVADA SUPPLY
I-202212070825 WATER LINE REPAIR R 12/14/2022 1,995.82 044492 1,995.82 0269 XEROX FINANCIAL SERVICES
I-202212070857 XEROX COPIER LEASE R 12/14/2022 536.26 044493 536.26 0275 EIP HOLDINGS II LLC
I-202212070865 BECKWOURTH REPEATER RENT R 12/14/2022 189.00 044494 189.00 * * B A N K T O T A L S * * NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 56 0.00 120,745.33 120,745.33
HANDWRITTEN CHECKS: 0 0.00 0.00 0.00
PRE-WRITE CHECKS: 0 0.00 0.00 0.00
DRAFTS: 0 0.00 0.00 0.00
VOID CHECKS: 1 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
CORRECTIONS: 0 0.00 0.00 0.00
BANK TOTALS: 57 0.00 120,745.33 120,745.33
12/07/2022 12:57 PM DIRECT PAYABLES CHECK REGISTER PAGE: 5 PACKET: 00151 AP RUN 12.14.2022
VENDOR SET: 01 CITY OF PORTOLA **** CHECK LISTING ****
BANK: ALL
** REGISTER GRAND TOTALS *
* * T O T A L S * * NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 56 0.00 120,745.33 120,745.33
HANDWRITTEN CHECKS: 0 0.00 0.00 0.00
PRE-WRITE CHECKS: 0 0.00 0.00 0.00
DRAFTS: 0 0.00 0.00 0.00
VOID CHECKS: 1 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
CORRECTIONS: 0 0.00 0.00 0.00
REGISTER TOTALS: 57 0.00 120,745.33 120,745.33
** POSTING PERIOD RECAP **
FUND PERIOD AMOUNT
-----------------------------------------
100 12/2022 43,313.61CR
207 12/2022 4,372.41CR
208 12/2022 7,586.76CR
211 12/2022 866.25CR
216 12/2022 952.88CR
501 12/2022 11,696.00CR
710 12/2022 16,472.93CR
720 12/2022 32,895.91CR
730 12/2022 2,588.58CR
===========================================
ALL 120,745.33CR
TOTAL ERRORS: 0 TOTAL WARNINGS: 0
1 City of Portola
Minutes
Special Meeting
November 15, 2022 06:00 PM
35 Third Ave Portola 96122
https://www.cityofportola.com/
Mayor Pat Morton • Mayor Pro Tem Tom Cooley • Councilmember Phil Oels • Councilmember Stan Peiler • Councilmember Bill Powers
1. Call to Order
The meeting was called to order at 6:00 pm by Mayor Pat Morton.
A. Pledge of Allegiance
Lead by Mayor Pat Morton
B. Roll Call
Present: Mayor Pat Morton, Councilmember Phil Oels, Councilmember Stan Peiler, Councilmember Bill Powers
Absent: Mayor Pro Tem Tom Cooley
Staff Present:
Interim City Manager, Jon Kennedy, Financial Officer, Susan Scarlett, Deputy City Clerk, Jason Shaw
2. Public Comments
This section is intended to provide members of the public with an opportunity to comment on any subject that does not appear on this agenda. Please note that California law prohibits the City Council from taking action on any matter which is not on the posted agenda, unless it is determined to be an urgency item by the City Council. Any member of the public wishing to address the City Council during “PUBLIC COMMENT” shall first secure permission of the presiding officer, stand; may give his/her name and address to the Clerk for the record. Each person addressing the City Council shall be limited to three minutes ordinarily, unless the presiding officer indicates a different amount will be allotted.
Ashlee Sims left public comment and stated she had an open record request. Susan Scarlett responded that Ashlee Sim's record request was addressed by the city attorney twice.
3. CITY COMMUNICATIONS
A. City Council Communications / Committee Reports
Councilmember Oels attended the latest Fire Wise meeting.
Councilmember Powers had nothing to report.
Councilmember Peiler wished everyone a happy holidays.
Mayor Morton reported Christmas in Old Town and the tree lighting will be held on Dec 2nd.
Mayor Pro Tem Cooley was absent.
No reports from city staff.
No report from Fire, Sheriff, or Air Quality.
4. Resolution No 2532 Concerning COVID Remote Meetings Councilmember Bill Powers motioned to approve. A second was made by Councilmember Phil Oels. The roll call vote:
2 Aye Mayor Pat Morton Aye Councilmember Phil Oels Aye Councilmember Stan Peiler Aye Councilmember Bill Powers Absent Mayor Pro Tem Tom Cooley A note from Leah Turner was read aloud. Mayor Pat Moton responded that she feels safe at some places but not others. She feels the city hall meeting room is too small for safe social distancing. Bill Powers stated that any allegations of secret meetings were false and he congratulated Leah for being elected to the council. Councilmember Stan Piler stated he was bothered by the letter. He stated he has tested positive for Covid twice in the past and that the city council is not hiding anything and was doing this for public safety. Councilmember Phil Oels stated that nothing has been hidden. Ashlee Sims left public comment. Councilmembers responded that they have had friends die from Covid. Interim City Manager Jon Kennedy also gave examples of bad cases of Covid and stated that the council shouldn't feel pressured based on what other agencies are doing.
5. Consent Agenda
A. Claims- Adopt Resolution No. 2533 authorizing payment of claims for the period of October 27, 2022 though November 15, 2022
Accounts Payable: $40,816.64
Payroll: $42,821.14
Total: $83,637.78
Payroll Checks 17205 – 17212
AP Run Checks 44366 – 44405
Councilmember Bill Powers motioned to approve. A second was made by Councilmember Stan Peiler. The roll call vote:
Aye Mayor Pat Morton Aye Councilmember Phil Oels Aye Councilmember Stan Peiler Aye Councilmember Bill Powers Absent Mayor Pro Tem Tom Cooley
6. IMD Rate Increase Councilmember Stan Peiler motioned to approve. A second was made by Councilmember Bill Powers. The roll call vote:
Aye Mayor Pat Morton Aye Councilmember Phil Oels Aye Councilmember Stan Peiler Aye Councilmember Bill Powers Absent Mayor Pro Tem Tom Cooley The amount requested includes carry over from previous years. Asking for a 16.8% increase. Council can decide to accept that amount or less. Councilmember Bill Powers asked for clarification on tipping fees.
Councilmember Stan Piler asked if IMD would be willing to take any less. Bill Powers requested information from Tom Valentino. Tom Valentino broke down how the various fees were incorporated into the rate. Phil Oels said the increase wasn't too bad at an average of 2 dollars a customer. Ashlee Sims left public Comment. Lindsey Shaw left public comment.
Motion by Councilmember Stan Peiler to approve a rate increase for IMD in the amount of 14.3%.
7. LESSG Funding Request Councilmember Phil Oels motioned to approve. A second was made by Councilmember Bill Powers. The roll call vote:
Aye Mayor Pat Morton Aye Councilmember Phil Oels Aye Councilmember Stan Peiler Aye Councilmember Bill Powers Absent Mayor Pro Tem Tom Cooley Two large expenses remain: inform the public of the new proposed fire district and the LAFCO application fee. $20,000 has been spent already by the committee. Ashlee Sims left Public Comment. Mayor Pat Morton mentioned its likely not all of the money will be spent and that its being spent to provide better services to the public. Motion by Councilmember Phil Oels to approve $20,000 for LESSG Funding.
8. Public Purpose use of ARPA funds/Sierra Ridge Councilmember Stan Peiler motioned to approve. A second was made by Councilmember Phil Oels. The roll call vote:
Aye Mayor Pat Morton Aye Councilmember Phil Oels Aye Councilmember Stan Peiler Aye Councilmember Bill Powers Absent Mayor Pro Tem Tom Cooley City Manger Jon Kennedy and Finance Officer Susan Scarlett explained that certain tax defaulted properties could be acquired by the City for a “public purpose”. This initially would be to clean up the properties as they have been a health and safety issue for years. At some time in the future another purpose could be identified such as partnering for affordable housing. Finance Officer Scarlett said that the rules for the State and Local Fiscal Recover Funds is consistent with this use. Ashlee Sims commented.
3 The Council approved having the City Manger sign the Application to purchase tax-defaulted properties and the next step will be for this to go to the Board of Supervisors.
9. Adjournment
Mayor Pat Morton Adjourned the meeting at 7:52 PM.
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CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Jon Kennedy, Interim City Manager
MEETING: December 14, 2022
SUBJECT: Revisions to Portola Municipal Code to Comply with SB 1383 Requirements
BACKGROUND
In 2016, the California legislature approved and Governor Brown signed Senate Bill 1383 – Short-lived Climate Pollutants. The legislation seeks to reduce emissions of methane from dairy and livestock operations and solid waste landfills as a means of combating climate change.
Primarily, SB 1383 tasked the California Department of Resources Recycling and Recovery (CalRecycle) to write and enforce regulations to reduce the amount of organic waste disposed of in landfills by 50% by 2020 and 75% by 2025 (from a 2014 disposal baseline). It also set a goal to retrieve at least 20% of currently disposed edible food by 2025 and redirect that food to people in need.
Additionally, a portion of the SB 1383 legislation mandates the city to amend the Portola Municipal Code to incorporate specific requirements to comply with Water Efficient Landscape and CalGreen regulations under the state of California Title 23 (Waters) and Title 24 (Building Standards) codes for new construction.
City Engineer Dan Bastian prepared amendments to Title 13 (Utilities) and Title 15 (Buildings and Construction) of the PMC to comply with the state regulations, which are attached.
Following are descriptions of the PMC revisions:
PMC TITLE 13.40 WATER-EFFICIENT LANDSCAPE REVISIONS
Add Section 13.40.006 “Standard Code Adopted.” This new section incorporates specific state Title 23 regulations by reference into Portola Municipal Code Title 13.40. Change Section 13.40.050 – Landscape Design Plan – to add “hydrozone” (clustering of plants) and add requirements for mulch and compost and purchase of organic mulch from recycled or post-consumer materials.
PMC TITLE 15.04.020 CALIFORNIA BUILDING STANDARDS REVISIONS Delete “2016” and replace with “latest adopted” in several instances referencing various California codes.
Change Note 11 to properly reference and update “latest adopted California Green Building Standards Code.”
Add “voluntary tier measures” to the explanation for exemption under Note 11.
NEW PMC TITLE 15.11 – ORDINANCE REQUIRING AREAS FOR COLLECTION
AND LOADING OF RECYCLABLE MATERIALS IN DEVELOPMENT PROJECTS Add new Section 15.11 to the Portola Municipal Code which establishes requirements for new developments to provide adequate space for recycling activities, including deposit of recyclables into containers and collection by authorized entities.
STAFF RECOMMENDATION
Staff recommends that the City Council introduce and approve revisions to Titles 13 and 15 of the Portola Municipal Code and waive the second reading of the code revisions.
Ordinance NO. 362 December 14, 2022
ORDINANCE NO. 362
AN ORDINANCE OF THE CITY OF PORTOLA, COUNTY OF PLUMAS
AMENDING CHAPTER 13.40 AND CHAPTER 15.04 AND CREATING CHAPTER 15.11
OF THE CITY OF PORTOLA MUNICIPAL CODE
FOR COMPLIANCE WITH SENATE BILL 1383 – SHORT-LIVED CLIMATE POLLUTANTS The Council of the City of Portola, California, ordains as follows:
I. CHAPTER 13.40 – WATER EFFICIENT LANDSCAPE IS HEREBY AMENDED TO READ AS FOLLOWS:
13.40.006 Standard Code Adopted (New Section).
The California Code of Regulations, Title 23 – Waters, Division 2 - Department of Water Resources, Chapter 2.7 - Sections 492.6(a)(3)(B) (C), (D), and (G), 493, 493.1, 493.2, 494.4, 492.11, and 492.12 of the Model Water Efficient Landscape Ordinance are hereby adopted by the City of Portola and incorporated by reference into the City of Portola Municipal Code, as amended by this chapter.
13.40.050 Landscape design plan (Revised Section).
A. For the efficient use of water, a landscape shall be carefully designed and planned for the intended function of the project. A landscape design plan meeting the following design criteria shall be submitted as part of the landscape documentation package:
1. Plant material;
a. Any plant may be selected for the landscape, providing the estimated total water use in the landscape area does not exceed the maximum applied water allowance. To encourage the efficient use of water, the following is highly recommended:
i. Protection and preservation of native species and natural vegetation; ii. Selection of water-conserving plant and turf species; iii. Selection of plants based on disease and pest resistance; iv. Selection of trees based on applicable City of Portola tree ordinances or tree shading guidelines; and
v. Selection of plants from local and regional landscape program plant lists. b. Each hydrozone shall have plant materials with similar water use, with the exception of hydrozones with plants of mixed water use, as specified in Section 492.7(a)(2)(D).
Ordinance NO. 362 December 14, 2022
c. Plants shall be selected and planted appropriately based upon their adaptability to the climatic, geologic, and topographical conditions of the project site. To encourage the efficient use of water, the following is highly recommended:
i. Use the Sunset Western Climate Zone System which takes into account temperature, humidity, elevation, terrain, latitude, and varying degrees of continental and marine influence on local climate;
ii. Recognize the horticultural attributes of plants (i.e., mature plant size, invasive surface roots) to minimize damage to property or infrastructure [e.g., buildings, sidewalks, power lines]; and
iii. Consider the solar orientation for plant placement to maximize summer shade and winter solar gain.
d. Turf is not allowed on slopes greater than twenty-five percent where the toe of the slope is adjacent to an impermeable hardscape and where twenty-five percent means one foot of vertical elevation change for every four feet of horizontal length (rise divided by run x 100 = slope percent). e. A landscape design plan for projects in fire-prone areas shall address fire safety and prevention. A defensible space or zone around a building or structure is required per Public Resources Code Section 4291(a) and (b). Avoid fire-prone plant materials and highly flammable mulches.
f. The use of invasive and/or noxious plant species is strongly discouraged. g. The architectural guidelines of a common interest development, which include community apartment projects, condominiums, planned developments, and stock cooperatives, shall not prohibit or include conditions that have the effect of prohibiting the use of low water use plants as a group.
2. Water features.
a. Recirculating water systems shall be used for water features. b. Where available, recycled water shall be used as a source for decorative water features. c. Surface area of a water feature shall be included in the high water use hydrozone area of the water budget calculation.
d. Pool and spa covers are highly recommended.
3. Mulch and amendments Soil Preparation, Mulch and Amendments. a. A minimum two-inch layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated.
a. A minimum three-inch (3″) layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife, up to Ordinance NO. 362 December 14, 2022
5 % of the landscape area may be left without mulch. Designated insect habitat must be included in the landscape design plan as such.
b. For landscape installations, compost at a rate of a minimum of four cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six inches into the soil. Soils with greater than 6% organic matter in the top 6 inches of soil are exempt from adding compost and tilling.
c. Organic mulch materials made from recycled or post-consumer shall take precedence over inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local Fuel Modification Plan Guidelines or other applicable local ordinances. b.d. Stabilizing mulching products shall be used on slopes. c.e. The mulching portion of the seed/mulch slurry in hydro-seeded applications shall meet the mulching requirement.
d. Soil amendments shall be incorporated according to recommendations of the soil report and what is appropriate for the plants selected (see Section 492.5).
B. The landscape design plan, at a minimum, shall:
1. Delineate and label each hydrozone by number, letter, or other method;
2. Identify each hydrozone as low, moderate, high water, or mixed water use. Temporarily irrigated areas of the landscape shall be included in the low water use hydrozone for the water budget calculation;
3. Identify recreational areas;
4. Identify areas permanently and solely dedicated to edible plants;
5. Identify areas irrigated with recycled water;
6. Identify type of mulch and application depth;
7. Identify soil amendments, type, and quantity;
8. Identify type and surface area of water features;
9. Identify hardscapes (pervious and non-pervious);
10. Identify location and installation details of any applicable stormwater best management practices that encourage on-site retention and infiltration of stormwater. Stormwater best management practices are encouraged in the landscape design plan and examples include, but are not limited to:
a. Infiltration beds, swales, and basins that allow water to collect and soak into the ground; b. Constructed wetlands and retention ponds that retain water, handle excess flow, and filter pollutants; and
Ordinance NO. 362 December 14, 2022
c. Pervious or porous surfaces (e.g., permeable pavers or blocks, pervious or porous concrete, etc.) that minimize runoff.
11. Identify any applicable rain harvesting or catchment technologies (e.g., rain gardens, cisterns, etc.);
12. Contain the following statement: "I have complied with the criteria of the ordinance and applied them for the efficient use of water in the landscape design plan"; and
13. Bear the signature of a licensed landscape architect, licensed landscape contractor, or any other person authorized to design a landscape. (See Sections 5500.1, 5615, 5641, 5641.1, 5641.2, 5641.3, 5641.4, 5641.5, 5641.6, 6701, 7027.5 of the Business and Professions Code, Section 832.27 of Title 16 of the California Code of Regulations, and Section 6721 of the Food and Agriculture Code.).
II. CHAPTER 15.04 – PORTOLA UNIFORM BUILDING CODES, SECTION 15.04.020 –
CALIFORNIA BUILDING CODES ADOPTED IS HEREBY AMENDED TO READ AS FOLLOWS:
A. The 2016 latest adopted California Building Standards Code is hereby adopted by the City of Portola and incorporated by reference into the City of Portola Municipal Code, as amended by this chapter. The 2016 California Building Standards Code includes, but is not limited to, the following:
1. The latest adopted 2016 California Administrative Code of the California Code of Regulations Title 24 Part 1.
2. The latest adopted 2016 California Building Code - Volumes 1 and 2 of the California Code of Regulations Title 24 Part 2.
3. The latest adopted 2016 California Residential Code of the California Code of Regulations Title 24 Part 2.5, including:
a. Appendix G, Swimming Pools, Spas, and Hot Tubs.
b. Appendix H, Patio Covers.
4. The latest adopted 2016 California Electrical Code of the California Code of Regulations Title 24 Part 3.
5. The latest adopted 2016 California Mechanical Code of the California Code of Regulations Title 24 Part 4.
6. The latest adopted 2016 California Plumbing Code of the California Code of Regulations Title 24 Part 5.
7. The latest adopted 2016 California Energy Code of the California Code of Regulations Title 24 Part 6.
Ordinance NO. 362 December 14, 2022
8. The latest adopted 2016 California Historical Building Code of the California Code of Regulations Title 24 Part 8.
9. The latest adopted 2016 California Fire Code of the California Code of Regulations Title 24 Part 9.
10. The latest adopted 2016 California Existing Building Code of the California Code of Regulations Title 24 Part 10.
11. 2016 California Green Building Standards Code (CALGreen Code) of the California Code of Regulations Title 24 Part 11. Latest adopted California Green Building Standards Code, as published by ICC, triennial compilation and publication of the California Building Standards Commission, California Code of Regulations, Title 24, Part 11, this title is intended to be known as the CAL Green Code as amended July 1, 2019, and effective January 1, 2020. The adoption of Part 11 identifies the required green building measures necessary to meet the minimum requirements and shall not include voluntary tier measures.
12. The latest adopted 2016 California Referenced Standards Code of the California Code of Regulations Title 24 Part 12.
B. There is at least one copy of said code on file in the office of the building official for use and examination by the public.
C. Fees. The fees for permits issued under this chapter are those established by resolution of the city council.
III. CHAPTER 15.11 – ORDINANCE REQUIRING AREAS FOR COLLECTION AND
LOADING OF RECYCLABLE MATERIALS IN DEVELOPMENT PROJECTS IS HEREBY CREATED TO READ AS FOLLOWS:
15.11.010 GENERAL PROVISIONS
15.11.011 Purpose
The City of Portola must divert 50 percent of all solid waste by January 1, 2000, through source reduction, recycling, and composting activities.
Diverting 50 percent of all solid waste requires the participation of the residential, commercial, industrial, and public sectors.
The lack of adequate areas for collecting and loading recyclable materials that are compatible with surrounding land uses is a significant impediment to diverting solid waste and constitutes an urgent need for state and local agencies to address access to solid waste for source reduction, recycling, and composting activities. This ordinance has been developed to meet that need.
15.11.012 Definitions
Ordinance NO. 362 December 14, 2022
The following definitions shall apply to the language contained in this ordinance:
“Development Project” means any of the following:
1. A project for which a building permit is required for a commercial, industrial, or institutional building, marina, or residential building having five or more living units, where solid waste is collected and loaded and any residential project where solid waste is collected and loaded in a location serving five or more living units.
2. Any new public facility where solid waste is collected and loaded and any improvements for areas of a public facility used for collecting and loading solid waste.
3. The definition of development project only includes subdivisions or tracts of single-family detached homes if, within such subdivisions or tract there is an area where solid waste is collected and loaded in a location which serves five or more living units. In such instances, recycling areas as specified in this ordinance are only required to serve the needs of the living units which utilize the solid waste collection and loading area.
“Improvement” means an improvement which adds to the value of a facility, prolongs its useful life, or adapts it to new uses. Improvements should be distinguished from repairs. Repairs keep facilities in good operating condition, do not materially add to the value of the facility, and do not substantially extend the life of the facility.
“Public Facility” includes, but is not limited to, buildings, structures, marinas, and outdoor recreation areas owned by a local agency.
“Recycling Area” means space allocated for collecting and loading of recyclable materials. Such areas shall have the ability to accommodate receptacles for recyclable materials. Recycling areas shall be accessible and convenient for those who deposit as well as those who collect and load any recyclable materials placed therein.
15.11.020 GENERAL REQUIREMENTS
A. Any new development project for which an application for a building permit is submitted on or after September 1, 1994, shall include adequate, accessible, and convenient areas for collecting and loading recyclable materials.
B. Any improvements for areas of a public facility used for collecting and loading solid waste shall include adequate, accessible, and convenient areas for collecting and loading recyclable materials.
C. Any existing development project for which an application for a building permit is submitted on or after September 1, 1994, for a single alteration which is subsequently performed that adds 30 percent or more to the existing floor area of the development project shall provide adequate, accessible, and convenient areas for collecting and loading recyclable materials.
Ordinance NO. 362 December 14, 2022
D. Any existing development project for which an application for a building permit is submitted on or after September 1, 1994, for multiple alterations which are conducted within a 12- month period which collectively add 30 percent or more to the existing floor area of the development project shall provide adequate, accessible, and convenient areas for collecting and loading recyclable materials.
E. Any existing development project for which multiple applications for building permits are submitted within a 12-month period beginning on or after September 1, 1994, for multiple alterations which are subsequently performed that collectively add 30 percent or more to the existing floor area of the development project shall provide adequate, accessible, and convenient areas for collecting and loading recyclable materials.
F. Any existing development project occupied by multiple tenants, one of which submits on or after September 1, 1994, an application for a building permit for a single alteration which is subsequently performed that adds 30 percent or more to the existing floor area of that portion of the development project which said tenant leases shall provide adequate, accessible, and convenient areas for collecting and loading recyclable materials. Such recycling areas shall, at a minimum, be sufficient in capacity, number, and distribution to serve that portion of the development project which said tenant leases.
G. Any existing development project occupied by multiple tenants, one of which submits on or after September 1, 1994 an application for a building permit for multiple alterations which are conducted within a 12-month period which collectively add 30 percent or more to the existing floor area of that portion of the development project which said tenant leases shall provide adequate, accessible, and convenient areas for collecting and loading recyclable materials. Such recycling areas shall, at a minimum, be sufficient in capacity, number, and distribution to serve that portion of the development project which said tenant leases.
H. Any existing development project occupied by multiple tenants, one of which submits within a 12-month period beginning on or after September 1, 1994, multiple applications for building permits for multiple alterations which are subsequently performed that collectively add 30 percent or more to the existing floor area of that portion of the development project which said tenant leases shall provide adequate, accessible, and convenient areas for collecting and loading recyclable materials. Such recycling areas shall, at a minimum, be sufficient in capacity, number, and distribution to serve that portion of the development project which said tenant leases.
I. Any costs associated with adding recycling space to existing development projects shall be the responsibility of the party or parties who are responsible for financing the alterations.
15.11.030 GUIDELINES FOR ALL DEVELOPMENT PROJECTS
A. Where local standards exist, recycling areas should be designed to be architecturally compatible with nearby structures and with the existing topography and vegetation, in accordance with such standards.
Ordinance NO. 362 December 14, 2022
B. The design and construction of recycling areas shall not prevent security of any recyclable materials placed therein.
C. The design, construction, and location of recycling areas shall not be in conflict with any applicable federal, State, or local laws relating to fire, building, access, transportation, circulation, or safety.
D. Recycling areas or the bins or containers placed therein must provide protection against adverse environmental conditions, such as rain, which might render the collected materials unmarketable.
E. Driveways and/or travel aisles shall, at a minimum, conform to local building-code requirements for garbage collection access and clearance. In the absence of such building-code requirements, driveways and/or travel aisles should provide unobstructed access for collection vehicles and personnel.
F. A sign clearly identifying all recycling and solid waste collection and loading areas and the materials accepted therein shall be posted adjacent to all points of direct access to the recycling areas.
G. Developments and transportation corridors adjacent to recycling areas shall be adequately protected for any adverse impacts such as noise, odor, vectors, or glare through measures including, but not limited to maintaining adequate separation, fencing, and landscaping.
15.11.031 Additional Guidelines for Single-Tenant Development Projects A. Areas for recycling shall be adequate in capacity, number, and distribution to serve the development project.
B. Dimensions of the recycling area shall accommodate receptacles sufficient to meet the recycling needs of the development project.
C. An adequate number of bins or containers to allow for the collection and loading of recyclable materials generated by the development project should be located within the recycling area.
15.11.032 Additional Guidelines for Multiple-Tenant Development Projects A. Recycling areas shall, at a minimum, be sufficient in capacity, number, and distribution to serve that portion of the development project leased by the tenant(s) who submitted an application or applications resulting in the need to provide recycling area(s) pursuant to Section III of this ordinance.
B. Dimensions of recycling areas shall accommodate receptacles sufficient to meet the recycling needs of that portion of the development project leased by the tenant who submitted an application or applications resulting in the need to provide recycling area(s) pursuant to Section Ordinance NO. 362 December 14, 2022
III of this ordinance.
C. An adequate number of bins or containers to allow for the collection and loading of recyclable materials generated by that portion of the development project leased by the tenant(s) who submitted an application or applications resulting in the need to provide recycling area pursuant to Section III of this ordinance should be located within the recycling area.
15.11.033 Location
A. Recycling areas shall not be located in any area required to be constructed or maintained as unencumbered, according to any applicable federal, state, or local laws relating to fire, access, building, transportation, circulation, or safety.
B. Any and all recycling area(s) shall be located so they are at least as convenient for those persons who deposit, collect, and load the recyclable materials placed therein as the location(s) where solid waste is collected and loaded. Whenever feasible, areas for collecting and loading recyclable materials shall be adjacent to the solid waste collection areas.
15.11.040 DECLARATION OF SEVERABILITY
All provisions of this Ordinance are severable and, if for any reason any sentence, paragraph, or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of the Ordinance.
Chapter 13.40 - WATER-EFFICIENT LANDSCAPE
.
.
.
[NO CHANGE TO 13.40.005]
13.40.005 Purpose.
A. The state legislature has found:
1. That the waters of the state are of limited supply and are subject to ever increasing demands;
2. That the continuation of California's economic prosperity is dependent on the availability of adequate supplies of water for future uses;
3. That it is the policy of the state to promote the conservation and efficient use of water and to prevent the waste of this valuable resource;
4. That landscapes are essential to the quality of life in California by providing areas for active and passive recreation and as an enhancement to the environment by cleaning air and water, preventing erosion, offering fire protection, and replacing ecosystems lost to development;
5. That landscape design, installation, maintenance and management can and should be water efficient; and
6. That Section 2 of Article X of the California Constitution specifies that the right to use water is limited to the amount reasonably required for the beneficial use to be served and the right does not and shall not extend to waste or unreasonable method of use.
B. Consistent with these legislative findings, the purpose of this ordinance is to:
1. Promote the values and benefits of landscapes while recognizing the need to invest water and other resources as efficiently as possible;
2. Establish a structure for planning, designing, installing, maintaining and managing water efficient landscapes in new construction and rehabilitated projects;
3. Establish provisions for water management practices and water waste prevention for existing landscapes;
4. Use water efficiently without waste by setting a maximum applied water allowance as an upper limit for water use and reduce water use to the lowest practical amount;
5. Promote the benefits of consistent landscape ordinances with neighboring local and regional agencies;
6. Encourage the use of economic incentives that promote the efficient use of water, such as implementing a tiered-rate structure; and
7. Encourage cooperation between the City of Portola and other local agencies to implement and enforce the provisions of the City of Portola Water Efficient Landscape Ordinance.
(Ord. No. 334, 1-13-2010)
Note(s)—Authority cited: Section 65593, Government Code. Reference: Sections 65591, 65593, 65596, Government Code.
[ADD SECTION]
13.40.006 Standard Code Adopted.
The California Code of Regulations, Title 23 – Waters, Division 2 - Department of Water Resources, Chapter 2.7 - Sections 492.6(a)(3)(B) (C), (D), and (G), 493, 493.1, 493.2, 494.4, 492.11, and 492.12 of the Model Water Efficient Landscape Ordinance are hereby adopted by the City of Portola and incorporated by reference into the City of Portola Municipal Code, as amended by this chapter.
13.40.007 Applicability.
A. After January 1, 2010, this ordinance shall apply to all of the following landscape projects:
1. New construction and rehabilitated landscapes for public agency projects and private development projects with a landscape area equal to or greater than two thousand five hundred square feet requiring a building or landscape permit, plan check or design review;
2. New construction and rehabilitated landscapes which are developer-installed in single-family and multi-family projects with a landscape area equal to or greater than two thousand five hundred square feet requiring a building or landscape permit, plan check, or design review;
3. New construction landscapes which are homeowner-provided and/or homeownerhired in single-family and multi-family residential projects with a total project landscape area equal to or greater than five thousand square feet requiring a building or landscape permit, plan check or design review;
4. Existing landscapes limited to Sections 493, 493.1 and 493.2; and
5. Cemeteries. Recognizing the special landscape management needs of cemeteries, new and rehabilitated cemeteries are limited to Sections 492.4, 492.11 and 492.12; and existing cemeteries are limited to Sections 493, 493.1 and 493.2.
B. This ordinance does not apply to:
1. Registered local, state or federal historical sites;
2. Ecological restoration projects that do not require a permanent irrigation system;
3. Mined-land reclamation projects that do not require a permanent irrigation system; or
4. Plant collections, as part of botanical gardens and arboretums open to the public. (Ord. No. 334, 1-13-2010)
Note(s)—Authority Cited: Section 65595, Government Code. Reference: Section 65596, Government Code.
[CHANGE AS NOTED]
13.40.050 Landscape design plan.
A. For the efficient use of water, a landscape shall be carefully designed and planned for the intended function of the project. A landscape design plan meeting the following design criteria shall be submitted as part of the landscape documentation package:
1. Plant material;
a. Any plant may be selected for the landscape, providing the estimated total water use in the landscape area does not exceed the maximum applied water allowance. To encourage the efficient use of water, the following is highly recommended:
i. Protection and preservation of native species and natural vegetation; ii. Selection of water-conserving plant and turf species; iii. Selection of plants based on disease and pest resistance; iv. Selection of trees based on applicable City of Portola tree ordinances or tree shading guidelines; and
v. Selection of plants from local and regional landscape program plant lists. b. Each hydrozone shall have plant materials with similar water use, with the exception of hydrozones with plants of mixed water use, as specified in Section 492.7(a)(2)(D).
c. Plants shall be selected and planted appropriately based upon their adaptability to the climatic, geologic, and topographical conditions of the project site. To encourage the efficient use of water, the following is highly recommended:
i. Use the Sunset Western Climate Zone System which takes into account temperature, humidity, elevation, terrain, latitude, and varying degrees of continental and marine influence on local climate;
ii. Recognize the horticultural attributes of plants (i.e., mature plant size, invasive surface roots) to minimize damage to property or infrastructure [e.g., buildings, sidewalks, power lines]; and
iii. Consider the solar orientation for plant placement to maximize summer shade and winter solar gain.
d. Turf is not allowed on slopes greater than twenty-five percent where the toe of the slope is adjacent to an impermeable hardscape and where twenty-five percent means one foot of vertical elevation change for every four feet of horizontal length (rise divided by run x 100 = slope percent).
e. A landscape design plan for projects in fire-prone areas shall address fire safety and prevention. A defensible space or zone around a building or structure is required per Public Resources Code Section 4291(a) and (b). Avoid fire-prone plant materials and highly flammable mulches.
f. The use of invasive and/or noxious plant species is strongly discouraged. g. The architectural guidelines of a common interest development, which include community apartment projects, condominiums, planned developments, and stock cooperatives, shall not prohibit or include conditions that have the effect of prohibiting the use of low water use plants as a group.
2. Water features.
a. Recirculating water systems shall be used for water features. b. Where available, recycled water shall be used as a source for decorative water features.
c. Surface area of a water feature shall be included in the high water use hydrozone area of the water budget calculation.
d. Pool and spa covers are highly recommended.
3. Mulch and amendments.
3. Soil Preparation, Mulch and Amendments
a. A minimum two-inch layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated.
a. A minimum three-inch (3″) layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife, up to 5 % of the landscape area may be left without mulch.
Designated insect habitat must be included in the landscape design plan as such. b. For landscape installations, compost at a rate of a minimum of four cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six inches into the soil. Soils with greater than 6% organic matter in the top 6 inches of soil are exempt from adding compost and tilling.
c. Organic mulch materials made from recycled or post-consumer shall take precedence over inorganic materials or virgin forest products unless the recycled postconsumer organic products are not locally available. Organic mulches are not required where prohibited by local Fuel Modification Plan Guidelines or other applicable local ordinances.
b.d. Stabilizing mulching products shall be used on slopes. c.e. The mulching portion of the seed/mulch slurry in hydro-seeded applications shall meet the mulching requirement.
d. Soil amendments shall be incorporated according to recommendations of the soil report and what is appropriate for the plants selected (see Section 492.5).
B. The landscape design plan, at a minimum, shall:
1. Delineate and label each hydrozone by number, letter, or other method;
2. Identify each hydrozone as low, moderate, high water, or mixed water use.
Temporarily irrigated areas of the landscape shall be included in the low water use hydrozone for the water budget calculation;
3. Identify recreational areas;
4. Identify areas permanently and solely dedicated to edible plants;
5. Identify areas irrigated with recycled water;
6. Identify type of mulch and application depth;
7. Identify soil amendments, type, and quantity;
8. Identify type and surface area of water features;
9. Identify hardscapes (pervious and non-pervious);
10. Identify location and installation details of any applicable stormwater best management practices that encourage on-site retention and infiltration of stormwater.
Stormwater best management practices are encouraged in the landscape design plan and examples include, but are not limited to:
a. Infiltration beds, swales, and basins that allow water to collect and soak into the ground;
b. Constructed wetlands and retention ponds that retain water, handle excess flow, and filter pollutants; and
c. Pervious or porous surfaces (e.g., permeable pavers or blocks, pervious or porous concrete, etc.) that minimize runoff.
11. Identify any applicable rain harvesting or catchment technologies (e.g., rain gardens, cisterns, etc.);
12. Contain the following statement: "I have complied with the criteria of the ordinance and applied them for the efficient use of water in the landscape design plan"; and
13. Bear the signature of a licensed landscape architect, licensed landscape contractor, or any other person authorized to design a landscape. (See Sections 5500.1, 5615, 5641, 5641.1, 5641.2, 5641.3, 5641.4, 5641.5, 5641.6, 6701, 7027.5 of the Business and Professions Code, Section 832.27 of Title 16 of the California Code of Regulations, and Section 6721 of the Food and Agriculture Code.) (Ord. No. 334, 1-13-2010)
Note(s)—Authority Cited: Section 65595, Government Code. Reference: Section 65596, Government Code and Section 1351, Civil Code.
15.04.020 California Building Standards Code adopted.
[CHANGE AS NOTED]
A. The latest adopted 2016 California Building Standards Code is hereby adopted by the City of Portola and incorporated by reference into the City of Portola Municipal Code, as amended by this chapter. The 2016 California Building Standards Code includes, but is not limited to, the following:
1. The latest adopted 2016 California Administrative Code of the California Code of Regulations Title 24 Part 1.
2. The latest adopted 2016 California Building Code - Volumes 1 and 2 of the California Code of Regulations Title 24 Part 2.
3. The latest adopted 2016 California Residential Code of the California Code of Regulations Title 24 Part 2.5, including:
a. Appendix G, Swimming Pools, Spas, and Hot Tubs.
b. Appendix H, Patio Covers.
4. The latest adopted 2016 California Electrical Code of the California Code of Regulations Title 24 Part 3.
5. The latest adopted 2016 California Mechanical Code of the California Code of Regulations Title 24 Part 4.
6. The latest adopted 2016 California Plumbing Code of the California Code of Regulations Title 24 Part 5.
7. The latest adopted 2016 California Energy Code of the California Code of Regulations Title 24 Part 6.
8. The latest adopted 2016 California Historical Building Code of the California Code of Regulations Title 24 Part 8.
9. The latest adopted 2016 California Fire Code of the California Code of Regulations Title 24 Part 9.
10. The latest adopted 2016 California Existing Building Code of the California Code of Regulations Title 24 Part 10.
11. 2016 California Green Building Standards Code (CALGreen Code) of the California Code of Regulations Title 24 Part 11.
11. Latest adopted California Green Building Standards Code, as published by ICC, triennial compilation and publication of the California Building Standards Commission, California Code of Regulations, Title 24, Part 11, this title is intended to be known as the CAL Green Code as amended July 1, 2019, and effective January 1, 2020. The adoption of Part 11 identifies the required green building measures necessary to meet the minimum requirements and shall not include voluntary tier measures.
12. The latest adopted 2016 California Referenced Standards Code of the California Code of Regulations Title 24 Part 12.
B. There is at least one copy of said code on file in the office of the building official for use and examination by the public.
C. Fees. The fees for permits issued under this chapter are those established by resolution of the city council.
(Ord. No. 347, § 1, 1-10-2018)
(Ord. No. xxx, § x, x-x-2022)
###################################################################### For explanation of the “voluntary tier measures” exemption noted in item #11 – (not for Municipal Code Change but by way of explanation.)
2013 CALIFORNIA GREEN BUILDING STANDARDS CODE
SECTION 304 VOLUNTARY TIERS 304.1 Purpose. Voluntary tiers are intended to further encourage building practices that improve public health, safety and general welfare by promoting the use of building concepts which minimize the building’s impact on the environment and promote a more sustainable design. 304.1.1 Tiers. The provisions of Divisions A4.6 and A5.6 outline means, in the form of voluntary tiers, for achieving enhanced construction levels by incorporating additional measures for residential and nonresidential new construction. Voluntary tiers may be adopted by local governments and, when adopted, enforced by local enforcing agencies. Buildings complying with tiers specified for each occupancy contain additional prerequisite and elective green building measures necessary to meet the threshold of each tier.
See Section 101.7 of this code for procedures and requirements related to local amendments, additions or deletions, including changes to energy standards. [BSC & HCD] Where there are practical difficulties involved in complying with the threshold levels of a tier, the enforcing agency may grant modifications for individual cases. The enforcing agency shall first find that a special individual reason makes the strict letter of the tier impractical, and that modification is in conformance with the intent and purpose of the measure. The details of any action granting modification shall be recorded and entered in the files of the enforcing agency.
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CITY COUNCIL AGENDA STAFF REPORT
DATE: December 8, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Susan Scarlett, Finance Officer
MEETING: December 14, 2022
SUBJECT: Audit presentation and financial update 2021-2022 Fiscal Year Presentation of the 2021-2022 Fiscal Year Audit. Attached is an electronic copy of the 2021- 2022 Audit. A hard copy of the audit us available. Please contact me ahead of time if you have specific questions regarding the audit in case I need to have additional information available.
Review a brief summary of financial information from the 2021-2022 Fiscal Year.
Recommendation: Accept the 2021-2022 Fiscal Year audit.
To the Honorable Members of the
City Council of Portola
City of Portola
Portola, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Portola as of and for the year ended June 30, 2022, and have issued our report thereon dated November 8, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our master services agreement dated July 13, 2022. Professional standards also require that we communicate to you the following information related to our audit.
Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Portola are described in Note 1 to the financial statements.
No new accounting policies were adopted and the application of existing policies was not changed during 2022.
We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
Management’s estimate of the landfill liability is based on an engineering estimate. We evaluated the key factors and assumptions used to develop the landfill liability in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the pension liability is based on an actuarial estimate. We evaluated the key factors and assumptions used to develop the pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
City Council
City of Portola
Significant unusual transactions
We identified no significant unusual transactions.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has determined that the effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The following summarizes uncorrected misstatements of the financial statements:
Decrease to depreciation expense and decrease to beginning net position in the Sewer Fund and Business Type Activities of $9,568 for correction to beginning accumulated depreciation balances.
Increase to Lease Liability and increase to Right to Use Assets of $9,448 for Governmental Activities to record beginning lease balance and related right to use asset as of July 1, 2021 in accordance with implementation of GASB 87.
Uncorrected misstatements or the matters underlying uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even if management has concluded that the uncorrected misstatements are immaterial to the financial statements under audit.
Corrected misstatements
The following material misstatements detected as a result of audit procedures were corrected by management:
Increase to prepaid expenses of $9,331, decrease to expenses of $9,331, decrease to due from other governments of $16,978 and decrease to intergovernmental revenues of $16,978 in the STIP fund to reflect work performed as of June 30, 2022 on the North Loop Project.
Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the management representation letter dated November 8, 2022.
City Council
City of Portola
Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.
Significant Risks Identified during the Engagement
During our engagement, we identified the following significant risks:
There is a significant risk related to the completeness of prepaid expenditures for payments made to a contractor working on the STIP North Loop Project. Amounts in prior years were understated and an audit adjustment was necessary to properly record prepaid expenditures.
Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.
Supplementary information in relation to the financial statements as a whole With respect to the Combining Nonmajor Fund Statements (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated November 8, 2022. * * *
City Council
City of Portola
This communication is intended solely for the information and use of the City Council and management of City of Portola and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Roseville, California
November 8, 2022
CITY OF PORTOLA
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PORTOLA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 4
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 13
STATEMENT OF ACTIVITIES 14
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
BALANCE SHEET 16
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION 17
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 18
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES 19
PROPRIETARY FUNDS
STATEMENT OF FUND NET POSITION 20
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 21
STATEMENT OF CASH FLOWS 22
NOTES TO FINANCIAL STATEMENTS 24
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY/(ASSET) AND RELATED RATIOS 46
SCHEDULE OF PENSION PLAN CONTRIBUTIONS 47
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL 48
CITY OF PORTOLA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
GENERAL FUND
STATE TRANSPORTATION IMPROVEMENT FUND 49
GAS TAX 2107 FUND 50
SNOW REMOVAL FUND 51
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETS AND BUDGETARY ACCOUNTING 52
SUPPLEMENTARY INFORMATION
COMBINING NONMAJOR FUND STATEMENTS
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET 53
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 54
OTHER REPORTS
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 55
SCHEDULE OF FINDINGS AND RESPONSES 57
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Council Members
City of Portola, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Portola, California, (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and Council Members
City of Portola
(2)
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Portola’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of proportionate share of the net pension liability/(asset) and related ratios, schedule of pension plan contributions, and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in Honorable Mayor and Council Members
City of Portola
(3)
accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining nonmajor financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 8, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Roseville, California
November 8, 2022
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MANAGEMENT’S DISCUSSION
AND ANALYSIS (MD&A)
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(4)
This section of the City of Portola (City) annual financial report, presents a discussion and analysis of the City’s financial performance during the fiscal year ended June 30, 2022. It should be read in conjunction with the City’s basic financial statements following this section.
I. FINANCIAL HIGHLIGHTS
A. Government-Wide Financial Analysis
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $18,481,147:
$11,105,644 represents the City’s investment in capital assets, less any related outstanding debt used to acquire those assets (net investment in capital assets). $1,211,893 is available for the City’s ongoing obligations related to programs with external restrictions (restricted net position).
$6,163,610 is available to fund City programs for citizens and debt obligations to creditors (unrestricted net position).
The City’s total net position increased by $93,820 from the prior year:
The $787,247 decrease in net investment in capital assets represents infrastructure and other additions of $239,244 less depreciation of $1,058,491, and the retirement of related long-term debt of $32,000.
The $211,851 increase in restricted net position represents the change in resources that are subject to external restrictions on their use, and is detailed in the government-wide financial analysis section on page 6.
B. Financial Analysis of the City’s Funds
The City’s governmental funds combined ending fund balance of $2,814,444 was a decrease of $122,350 from the prior year ending fund balance. Amounts available for spending include restricted, assigned, and unassigned fund balances; these totaled $2,805,113, or 99.67% of ending fund balance.
Of this amount, $224,211 is restricted by law or externally imposed requirements.
II. OVERVIEW OF THE FINANCIAL STATEMENTS
A. Government-Wide Financial Statements
The government-wide financial statements provide an overview of the City’s finances in a manner similar to a private sector business that is using the accrual basis of accounting. They demonstrate accountability of the City of Portola by showing the extent to which it has met operating objectives efficiently and effectively, using all resources available, and whether it can continue to do so.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(5)
The statement of net position presents information on all of the City’s assets, deferred outflows, and deferred inflows, liabilities, with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information on expenses and revenues to show how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues are reported as soon as earned and expenses are reported as soon as incurred even though the related cash flows may not have taken place until future fiscal periods (e.g., earned but unused vacation leave).
Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, planning and community development, public safety, streets and roads, public works and parks and recreation.
The business type activities of the City include water, sewer, and solid waste services.
B. Fund Financial Statements
The fund financial statements provide evidence of accountability by demonstrating compliance with budgetary decisions made in a public forum. A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes stipulated by laws, regulations or policies. The funds of the City are divided into two categories: governmental and proprietary.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spending resources, as well as on balances of spending available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
The City maintains 6 individual governmental funds. On the financial statements for governmental funds, information is presented separately for the General Fund and for the Gas Tax, Snow Removal and State Transportation Improvement Plan funds. Data from nonmajor governmental funds are aggregated into a single column.
Proprietary funds consist of three enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, and solid waste services.
The Notes to Financial Statements provide additional information that is essential to a full understanding of the information provided in the financial statements.
C. Required Supplementary Information
In addition to the basic financial statements, this report presents actuarial information related to the City’s pension plans as well as budgetary comparisons for the General Fund and major special revenue funds as required supplementary information.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(6)
III. GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City presents its financial statements under the reporting model required by the Governmental and Accounting Standards Board Statement No. 34.
Dollar Percent
2022 2021 2022 2021 2022 2021 Change Change
Current and Other Assets $ 3,244,411 $ 3,099,852 $ 5,826,241 $ 5,261,784 $ 9,070,652 $ 8,361,636 $ 709,016 8% Capital Assets 7,120,634 7,673,435 4,695,839 4,962,285 11,816,473 12,635,720 (819,247) -6% Total Assets 10,365,045 10,773,287 10,522,080 10,224,069 20,887,125 20,997,356 (110,231) -1% Deferred Outflows of Resources 97,988 136,909 175,720 216,299 273,708 353,208 (79,500) -23% Current and Other Liabilities 302,840 87,029 66,818 80,632 369,658 167,661 201,997 120% Long-Term Liabilities 26,115 210,783 2,137,446 2,390,207 2,163,561 2,600,990 (437,429) -17% Total Liabilities 328,955 297,812 2,204,264 2,470,839 2,533,219 2,768,651 (235,432) -9% Deferred Inflows of Resources 52,436 75,425 94,031 119,161 146,467 268,695 (122,228) -45% Net Invested in Capital Assets 7,120,634 7,673,435 3,985,010 4,219,456 11,105,644 11,892,891 (787,247) -7% Restricted 351,338 150,637 860,555 849,405 1,211,893 1,000,042 211,851 21% Unrestricted 2,609,670 2,712,887 3,553,940 2,781,507 6,163,610 5,494,394 669,216 12% Total Net Position $ 10,081,642 $ 10,536,959 $ 8,399,505 $ 7,850,368 18,481,147 18,387,327 93,820 1% Condensed Statement of Net Position
June 30, 2022 and 2021
Governmental
Activities
Business-Type
Activities Total
Total
Net investment in capital assets reflects the City’s investment in capital assets (i.e. its land, structures and improvements, infrastructure and equipment). The City uses the capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Restricted net position represents 6.56% of the total net position and are resources subject to external restrictions on how they may be used.
Unrestricted net position represents 33.35% of the total net position and may be used to meet the City’s ongoing obligations to citizens and creditors.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(7)
The following highlights significant factors that affected the governmental and business-type activities and contributed to the change in net position:
Dollar Percent
2022 2021 2022 2021 2022 2021 Change Change
Program Revenues:
Charges for Services $ 104,152 $ 109,586 $ 1,976,068 $ 2,080,532 $ 2,080,220 $ 2,190,118 $ (109,898) -5% Operating Grants and Contributions 707,150 740,005 - 5,000 707,150 745,005 (37,855) -5% Capital Grants and Contributions 157,744 79,897 - - 157,744 79,897 77,847 97% General Revenues:
Property Taxes 255,100 247,130 - - 255,100 247,130 7,970 3% Other Taxes 411,965 430,205 - - 411,965 430,205 (18,240) -4% Other Revenue 79,624 21,088 17,006 24,364 96,630 45,452 51,178 113% Total Revenues 1,715,735 1,627,911 1,993,074 2,109,896 3,708,809 3,737,807 (28,998) -1% Expenses:
General Government 136,625 241,126 - - 136,625 241,126 (104,501) -43% Planning and
Community Development 192,129 152,148 - - 192,129 152,148 39,981 26% Public Safety 468,585 440,610 - - 468,585 440,610 27,975 6% Streets and Roads 984,828 1,020,829 - - 984,828 1,020,829 (36,001) -4% Public Works 111,633 106,696 - - 111,633 106,696 4,937 5% Parks and Recreation 277,252 231,859 - - 277,252 231,859 45,393 20% Water Service - - 741,423 959,984 741,423 959,984 (218,561) -23% Sewer Service - - 535,179 723,182 535,179 723,182 (188,003) -26% Solid Waste - - 167,335 146,149 167,335 146,149 21,186 14% Total Expenses 2,171,052 2,193,268 1,443,937 1,829,315 3,614,989 4,022,583 (407,594) -10% Change in Net Position (455,317) (565,357) 549,137 280,581 93,820 (284,776) 378,596 -133% Net Position - July 1 10,536,959 11,192,125 7,850,368 7,569,787 18,387,327 18,761,912 (374,585) -2% Prior Period Adjustment - (89,809) - - - (89,809) 89,809 -100% Net Position - July 1, Restated 10,536,959 11,102,316 7,850,368 7,569,787 18,387,327 18,672,103 (284,776) -2% Net Position - June 30 $ 10,081,642 $ 10,536,959 $ 8,399,505 $ 7,850,368 $ 18,481,147 $ 18,387,327 $ 93,820 1% Statement of Activities
For the Years Ended June 30, 2022 and 2021
Governmental
Activities
Business-Type
Activities Total
Total
Governmental activities reported a $455,317 decrease in net position, and business-type activities reported an increase of $549,137, for a net increase of $93,820.
IV. FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with budgetary and legal requirements.
Governmental funds. The general government functions are included in the General and Special Revenue Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, total fund balance less the nonspendable portion is a useful measure of the City’s resources available for spending at the end of the fiscal year.
At June 30, 2022, the City’s governmental funds reported combined ending fund balances of $2,814,444, 99.67% of which is available to meet the City’s ongoing general obligation to citizens and creditors.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(8)
The General Fund is the main operating fund of the City. At June 30, 2022, total fund balance was $2,644,191, 100% of which was available for spending. As measures of the general fund’s liquidity, it is useful to note that available fund balance represents 233% of total fund expenditures. It is the City’s goal to maintain a minimum level of fund balance sufficient to preserve the City’s credit rating in the event that the City needs financing and to maintain sufficient working capital. It is also the City’s goal to maintain a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City therefore adopted a policy that directs management to maintain a minimum level of unassigned fund balance in the City’s General Fund as follows:
The City will strive to maintain an unassigned fund balance in the General Fund of 100% of budgeted general fund operating expenditures each fiscal year. In the event that the balance drops below the established minimum level, the City’s governing body will develop a plan to replenish the fund balance.
The following table presents the revenues from various sources as well as increases or decreases from the prior year in the governmental funds.
% of % of % of
Revenue Sources Amount Total Amount Total Amount Change Taxes 667,065 $ 40% 677,335 $ 43% (10,270) $ -2%
Licenses and Permits 62,473 4% 95,263 6% (32,790) -34%
Fines and Forfeitures 200 0% 283 0% (83) -29%
Use of Money and Property 10,830 1% 16,387 1% (5,557) -34% Intergovernmental 813,796 49% 753,022 48% 60,774 8%
Charges for Services 41,479 2% 14,040 1% 27,439 195%
Other 68,794 4% 4,701 0% 64,093 1363%
Total 1,664,637 $ 100% 1,561,031 $ 100% 103,606 $ 7%
Revenues Classified by Source
Governmental Funds
2022 2021 Change
Significant changes for major revenue sources are explained below. Secured Property tax increased $7,970, Sales Tax decreased $44,941, and Other Taxes increased $26,701.
Building permits decreased $27,201 from the prior year amount because of large projects and business licenses decreased by $5,932 due to timing.
There was a decrease in the Use of Money and Property due to decreased interest rates. Intergovernmental includes an increase in Snow Removal Funds based on the expenses from the prior year, an increase in Coronavirus Relief Funds and an increase in reimbursements from the State for STIP projects.
Charges for Services increased due to the City Pool reopening in summer of 2021 after being closed in the summer of 2020 because of the COVID-19 Pandemic.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(9)
The following table presents expenditures by function compared to prior year’s amounts in the governmental funds.
% of % of % of
Amount Total Amount Total Amount Change
General Government $ 210,199 12% 220,554 $ 15% (10,355) $ -5% Planning and Community
Development 205,386 12% 156,161 11% 49,225 32%
Public Safety 447,123 25% 408,293 28% 38,830 10%
Streets and Roads 574,212 32% 413,482 28% 160,730 39%
Public Works 144,862 8% 111,806 8% 33,056 30%
Parks and Recreation 205,205 12% 150,818 10% 54,387 36% Total Expenditures $ 1,786,987 100% 1,461,114 $ 100% 325,873 $ 22% Expenditures by Function
Governmental Funds
2022 2021 Change
Significant changes for major functions are explained below:
General government had a slight decrease in personnel due to staffing shortages and a decrease in software and upgrades as the prior year included Civicplus. Planning and Community Development had an increase in Grant expenditures. The Grant is the continuation of the SB2 Planning grant and expenses for the LEAP Grant. Public safety increase has a number of changes that make up this $38,830 change. The Fire department had an increase due to the costs for the feasibility study for consolidation, Law enforcement had a decrease due to a reduction in animal control and a change from employee to contractor and Building had an increase due to an increase in code enforcement. Streets and Roads increased in the Snow Removal Fund due to a a number of heavy snow storms and in the STIP Fund more work was done by our Engineer for the North Loop project. Public Works increased due to the work on the Community Cleanup State and Local Fiscal Recovery project.
Parks and Recreation increased as there were additional costs for the Pool for the summer of 2021 which there hadn’t been the year before due to Covid-19. There was also repair work done to the Williams House and the City funded events again that had not been funded the year before due to Covid-19.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the government wide financial statements, but in more detail. These funds include the following enterprise funds: Water Service Fund, Sewer Service Fund, and Solid Waste Fund. As of June 30, 2022, the proprietary (enterprise) funds net position was a combined $8,399,505 with a net investment in capital assets of $3,985,010 and an unrestricted net position of $3,553,940.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(10)
V. BUDGETARY HIGHLIGHTS
The budget documents normally represent a financial plan for the City with four central goals in mind:
(1) sustaining the level and quality of basic municipal services currently being provided our residents (2) maintaining the City’s infrastructure while implementing scheduled and unscheduled improvements determined at the time of the budget process; (3) providing for some opportunity for investment in additional tools, equipment and programs that foster improvement in the overall aesthetics of the City as well as investment in social activities; and (4) developing plans for improved municipal services with a vision that will lead our community toward growth and tourism. This year’s budget, while keeping all four goals in mind, addressed mainly goals number (1) sustaining the level and quality of services currently being provided to our residents and (2) maintaining the City’s infrastructure. In addition to the past goals, there is a renewed emphasis on economic development, blight reduction, and code compliance.
Differences between the original budget and the final amended budget are mainly due to the revenue and expenditures from Grant funds and from Capital projects that are “reimbursed” and in many cases are not reflected in the original budget figures.
The 2021-2022 budget had projected the use of $215,404 of the General Fund’s fund balance to eliminate a shortfall of revenues over expenditures.
After amending the budget for the fiscal year 2021/2022 General Fund revenues were more than budget by $127,669 and General Fund expenditures were $4,990 more than budgeted. While the City had originally budgeted a decrease of $215,404 in fund balance the final fund balance was a decrease of $120,733 of which $50,000 can be attributed to PG&E Settlement funds, $37,532 increase in Sales tax and $36,000 from partners toward the Fire Feasibility Study.
The major special revenue funds include Streets, Snow removal and the A-15 STIP project. It is difficult to budget the A-15 project ahead of time as these projects can be programmed and go on for years.
Snow removal budgeting is also difficult with the main reason being the use of contract snow removal in heavy storm years.
VI. CAPITAL ASSETS AND DEBT ADMINISTRATION
A. Capital Assets
The change in capital assets for the Governmental Activities totaled $(552,801), net of depreciation for an ending balance of $7,120,634.
Business-type capital assets for the fiscal year ending June 30, 2022, were $4,695,839, net of depreciation. This is a decrease in capital assets of $266,446. More detailed information about the City’s capital assets is presented in Note 5 of the basic financial statements.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(11)
B. Long-Term Debt
At June 30, 2022, the City had long-term debt outstanding of $710,829. This is a decrease over June 30, 2021 of $32,000. The entire long-term debt was attributable to Business-type activities. There is no long-term debt in the Governmental Activities.
More detailed information about the City’s long-term liabilities is presented in Note 6 of the basic financial statements.
VII. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Management presented a budget document that attempted to address the current national, state, and local economic conditions and to serve as the City’s policy document, as an operations guide, as a financial plan and as a communication document to guide the City staff and Portola residents on how the City of Portola conducts its financial business. The challenges of economic conditions, the need to comply with state regulations and the desire to be conservative with the fiscal position of the City are reflected.
For the 2022-2023 budget the process began as usual with City staff preparing draft level of services budgets for each area of the City. The budget process began in February and continued through March, April and May with revisions to the level of services budgets, additions of “add-ons” and discussion of what would be needed to provide a balanced budget. The City worked to put together a new salary range in order to be responsive to the needs of the employees and employee retention. In addition to the salary range structure the budget also included a 4.7% cost of living raise. The Water has funding for fire hydrants and the Sewer budget includes funding for sewer pond cleanout. The critical need to maintain healthy cash balances is always in the forefront of finance discussions. The City has been able to fund major projects in advance of reimbursements because of the balances that it currently maintains. This will be critical with the upcoming construction phase of the North Loop project.
While the City always pays close attention to budget amendments and to the use of additional fund balance, some purchases are critical and the Council has an understanding of when those are one time expenditures. The Council is always aware of the expenses that are reimbursable by another entity including the CalTrans reimbursement of the North Loop project.
Even though the City continues to recover from past economic downturn and staffing is still at a lower level, the General Fund supports the services necessary for the residents of Portola, including fire, parks, planning, building, streets, snow removal, animal control and law enforcement through a Sheriff’s contract for services. The City currently contracts with neighboring Beckwourth Fire Protection District to perform fire and emergency medical related services. Through a Council approved Memorandum of Understanding with adjacent fire districts, the City is also exploring the possibilities of reorganizing fire and emergency services to strengthen and improve upon these services to the area. This effort is ongoing through the efforts of the Local Emergency Services Study Group and a feasibility study is being conducted.
In the 2022-2023 budget the City continues to utilize contract services for code enforcement and abandoned vehicle abatement. The use of City staff has increased in this area due to the use of State and Local Fiscal Recovery Funds to do a blight reduction community clean up project. The project started in 2021-2022 and will continue over the next two years.
CITY OF PORTOLA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
(12)
An emphasis on being a business-friendly environment and attracting growth is evident but has not had a major impact on the budget yet. City staff has acquired an SB2 Planning Grant, and a related Local Early Action Planning Grant, and is using the funds in a variety of ways with the goal of improving and streamlining the permit process in an attempt to attract additional growth. The work may also make other services the City provides more efficient as well, including easier acquisition of public records, parcel information, utility billing payments, and answering general inquiries. The City is nearing completion of implementation of new software that provides utility customers the ability to pay online as well as see their bills and usage and will allow payment of building permits and licenses online.
With regard to the City Enterprise Funds the effects and impacts of changing state and federal government regulation is a constant challenge, but the major challenge the Enterprise Funds face is the aging infrastructure in the City. The City continues to fund an infrastructure set aside in both water and sewer in an effort to partially cover major repairs. In the 2022-2023 budget Water and Sewer rates were not increased. With Solid Waste having paid the General Fund back the Council was again able to reduce Solid Waste Administration Fees by $1.00 per month for a third year in a row with the hope of continuing that trend. Now that the General Fund is repaid, the closure fee will be reserved for future needs at the landfill. City staff recommended the reduction of the landfill closure fee by $1.00 a month and the hope is that can continue. The Enterprise Funds are “business-type” activities whose expenses need to be covered by the rate payers. The City Council will continue to review the need for any future rate increases each year during the budget process. Staff and the City Council are always looking for funding opportunities for infrastructure and are currently attempting to apply for a Clean Water State Revolving Fund grant.
It is important to remember that in November 2018 the Council voted to pay down $400,000 of the unfunded liability which has the potential to save over $500,000 in interest over time. While CalPERS unfunded liability is a moving target, this was a major and proactive step for the City to try and manage the annual payments going forward.
Staff keeps a watchful eye on state and federal issues as well as on the financial health of the City and continually reviews these issues and the possibility of budget adjustments with the City Council.
VIII. REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the financial activity and condition of the City of Portola to all having such an interest in the City of Portola. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Portola Finance Department, 35 Third Avenue, P.O. Box 1225, Portola, California, 96122.
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BASIC FINANCIAL STATEMENTS –
GOVERNMENT-WIDE FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PORTOLA
STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(13)
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and Investments 2,773,648 $ 4,518,308 $ 7,291,956 $ Restricted Assets:
Restricted Cash - 860,556 860,556
Imprest Cash 375 - 375
Prepaid Expense 9,331 5,094 14,425
Accounts Receivable 59,955 434,083 494,038
Interest Receivable 4,455 8,200 12,655
Due From Other Governments 218,623 - 218,623
Loans and Notes Receivable, Net 178,024 - 178,024
Capital Assets:
Nondepreciable 1,224,204 251,925 1,476,129
Depreciable, Net 5,896,430 4,443,914 10,340,344
Total Assets 10,365,045 10,522,080 20,887,125
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pensions 97,988 175,720 273,708
LIABILITIES
Accounts Payable 48,715 20,480 69,195
Accrued Salaries and Benefits Payable 19,436 14,917 34,353 Deposits 10,080 27,271 37,351
Unearned Revenue 224,609 - 224,609
Accrued Interest - 4,150 4,150
Long-Term Liabilities:
Portion Due or Payable Within One Year:
Compensated Absences 8,221 13,829 22,050
Notes Payable - 33,000 33,000
Portion Due or Payable After One Year:
Compensated Absences 9,922 16,688 26,610
Notes Payable - 677,829 677,829
Liability for Landfill Postclosure - 1,381,803 1,381,803 Net Pension Liability 7,972 14,297 22,269
Total Liabilities 328,955 2,204,264 2,533,219
DEFERRED INFLOWS OF RESOURCES
Deferred Pensions 52,436 94,031 146,467
NET POSITION
Net Investment in Capital Assets 7,120,634 3,985,010 11,105,644 Restricted:
General Government 222,188 - 222,188
Community Development 43,525 - 43,525
Capital Improvements 85,625 792,193 877,818
Debt Service - 68,362 68,362
Unrestricted 2,609,670 3,553,940 6,163,610
Total Net Position 10,081,642 $ 8,399,505 $ 18,481,147 $ Primary Government
CITY OF PORTOLA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(14)
Fees, Fines, and Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government
Governmental Activities:
General Government $ 136,625 $ 38,978 $ 258,502 $ - $ 160,855 $ - $ 160,855 Planning and Community Development 192,129 735 53,055 - (138,339) - (138,339) Public Safety 468,585 22,960 207,839 - (237,786) - (237,786) Streets and Roads 984,828 - 187,754 157,744 (639,330) - (639,330) Public Works 111,633 - - (111,633) - - (111,633)
Parks and Recreation 277,252 41,479 - (235,773) - - (235,773) Total Governmental Activities 2,171,052 104,152 707,150 157,744 (1,202,006) - (1,202,006) Business-Type Activities:
Water Service 741,423 963,354 - - - 221,931 221,931
Sewer Service 535,179 714,764 - - - 179,585 179,585
Solid Waste 167,335 297,950 - - - 130,615 130,615
Total Business-Type Activities 1,443,937 1,976,068 - - - 532,131 532,131 Total City of Portola $ 3,614,989 $ 2,080,220 $ 707,150 $ 157,744 (1,202,006) 532,131 (669,875) General Revenues
Taxes:
Property Taxes 255,100 - 255,100
Sales and Use Taxes 322,532 - 322,532
Other 89,433 - 89,433
# Unrestricted Interest and Investment Earnings 10,830 17,006 27,836 Miscellaneous 68,794 - 68,794
Total General Revenues 746,689 17,006 763,695
Change in Net Position (455,317) 549,137 93,820
Net Position - Beginning of Year 10,536,959 7,850,368 18,387,327 Net Position - End of Year $ 10,081,642 $ 8,399,505 $ 18,481,147 Primary Government
Net (Expense) Revenue and
Program Revenues Changes in Net Position
BASIC FINANCIAL STATEMENTS –
FUND FINANCIAL STATEMENTS
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CITY OF PORTOLA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(16)
State
Transportation Other
Improvement Gas Tax Snow Governmental
General Plan 2107 Removal Funds Total
ASSETS
Cash and Investments 2,649,508 $ - $ 254 $ 2,941 $ 120,945 $ 2,773,648 $ Imprest Cash 375 - - - - 375
Notes Receivable 134,499 - - - 43,525 178,024
Accounts Receivable 59,955 - - - - 59,955
Interest Receivable 4,264 - - - 191 4,455
Prepaid Expenses - 9,331 - - - 9,331
Due From Other Funds 33,067 - - - - 33,067
Due From Other Governmental Agencies 183,213 24,025 4,077 - 7,308 218,623 Total Assets 3,064,881 $ 33,356 $ 4,331 $ 2,941 $ 171,969 $ 3,277,478 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE
Liabilities:
Accounts Payable 43,227 $ - $ 1,914 $ 1,843 $ 1,731 $ 48,715 $ Accrued Salaries and Benefits Payable 15,647 - 2,417 1,098 274 19,436 Unearned Revenue 224,609 - - - - 224,609
Deposits From Others 10,080 - - - - 10,080
Due to Other Funds - 33,067 - - - 33,067
Total Liabilities 293,563 33,067 4,331 2,941 2,005 335,907 Deferred Inflows of Resources:
Unavailable Revenue 127,127 - - - - 127,127
Total Deferred Inflows of Resources 127,127 - - - - 127,127 Fund Balance:
Nonspendable - 9,331 - - - 9,331
Restricted 95,061 - - - 129,150 224,211
Assigned - - - - 40,814 40,814
Unassigned 2,549,130 (9,042) - - - 2,540,088
Total Fund Balance 2,644,191 289 - - 169,964 2,814,444
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance 3,064,881 $ 33,356 $ 4,331 $ 2,941 $ 171,969 $ 3,277,478 $
CITY OF PORTOLA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(17)
Fund Balance - Total Governmental Funds (From Previous Page) $ 2,814,444 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because:
Capital Assets Used in Governmental Activities are not Financial Resources and, therefore, are not Reported in the Governmental Funds. 7,120,634 Deferred Outflows of Resources as Reported in the Statement of Net Position 97,988 Deferred Inflows of Resources as Reported in the Statement of Net Position (52,436) Unavailable Revenues and Long-Term Assets Represent Amounts That are not Available to Fund Current Expenditures and, Therefore, are not Reported in the Governmental Funds:
Unavailable Revenues 127,127
Some Liabilities are not Due and Payable in the Current Period, and Therefore, are not Reported in the Governmental Funds:
Compensated Absences (18,143)
Net Pension Liability (7,972)
Net Position of Governmental Activities $ 10,081,642
CITY OF PORTOLA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(18)
State
Transportation Other
Improvement Gas Tax Snow Governmental
General Plan 2107 Removal Funds Total
REVENUES
Taxes 667,065 $ - $ - $ - $ - $ 667,065 $
Licenses and Permits 62,473 - - - - 62,473
Fines, Forfeitures and Penalties 200 - - - - 200
Use of Money and Property 10,446 - - - 384 10,830
Intergovernmental 468,298 157,744 52,343 93,052 42,359 813,796 Charges for Services 41,479 - - - - 41,479
Other Revenues 68,794 - - - - 68,794
Total Revenues 1,318,755 157,744 52,343 93,052 42,743 1,664,637
EXPENDITURES
Current:
General Government 210,199 - - - - 210,199
Planning and Community Development 167,805 - - - 37,581 205,386 Public Safety 408,802 - 38,321 - - 447,123
Streets and Roads - 159,361 136,121 277,661 1,069 574,212 Public Works 144,862 - - - - 144,862
Parks and Recreation 205,205 - - - - 205,205
Total Expenditures 1,136,873 159,361 174,442 277,661 38,650 1,786,987 Excess (Deficiency) of Revenues Over
(Under) Expenditures 181,882 (1,617) (122,099) (184,609) 4,093 (122,350)
OTHER FINANCING SOURCES (USES)
Transfers In - 9,085 122,099 171,431 - 302,615
Transfers Out (302,615) - - - - (302,615)
Total Other Financing Sources (Uses) (302,615) 9,085 122,099 171,431 - - Net Change in Fund Balances (120,733) 7,468 - (13,178) 4,093 (122,350) Fund Balances - Beginning of Year 2,764,924 (7,179) - 13,178 165,871 2,936,794 Fund Balances - End of Year 2,644,191 $ 289 $ - $ - $ 169,964 $ 2,814,444 $
CITY OF PORTOLA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(19)
Net Change to Fund Balance - Total Governmental Funds $ (122,350) Amounts Reported for Governmental Activities in the
Statement of Activities are Different Because:
Governmental Funds Report Capital Outlay as Expenditures. However, in the Statement of Activities, the Cost of Those Assets is Allocated Over Their Estimated Useful Lives and Reported as Depreciation Expense.
Expenditures for General Capital Assets, Infrastructure, and Other Related Capital Assets Adjustments 222,042 $
Less: Current Year Depreciation (774,843)
(552,801)
Revenues in the Statement of Activities That do not Provide Current Financial Resources are not Reported as Revenues in the Governmental Funds. 51,098
Some Expenses Reported in the Statement of Activities do not Require the Use of Current Financial Resources and, Therefore, are not Reported as Expenditures in Governmental Funds:
Change in Compensated Absences 5,100
Change in Accrued Net Pension Liability 163,636
Change in Net Position of Governmental Activities $ (455,317)
CITY OF PORTOLA
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(20)
Water Sewer Solid
Service Service Waste Total
ASSETS
Current Assets:
Cash and Investments 2,271,151 $ 1,689,683 $ 557,474 $ 4,518,308 $ Interest Receivable 4,214 3,105 881 8,200
Accounts Receivable 221,320 163,707 49,056 434,083
Prepaid Expenses 5,094 - - 5,094
Restricted Assets:
Restricted Cash 375,083 485,473 - 860,556
Total Current Assets 2,876,862 2,341,968 607,411 5,826,241 Noncurrent Assets:
Capital Assets:
Nondepreciable 170,057 50,446 31,422 251,925
Depreciable, Net 2,351,440 2,087,162 5,312 4,443,914
Total Noncurrent Assets 2,521,497 2,137,608 36,734 4,695,839 Total Assets 5,398,359 4,479,576 644,145 10,522,080
DEFERRED OUTFLOWS OF RESOURCES 75,543 88,408 11,769 175,720
LIABILITIES
Current Liabilities:
Accounts Payable 9,176 8,679 2,625 20,480
Accrued Salaries and Benefits Payable 8,488 5,702 727 14,917 Deposits 27,271 - - 27,271
Accrued Interest 3,646 504 - 4,150
Liability for Compensated Absences 6,868 6,137 824 13,829 Notes Payable - Current Portion 33,000 - - 33,000
Total Current Liabilities 88,449 21,022 4,176 113,647
Noncurrent Liabilities
Liability for Compensated Absences 8,288 7,405 995 16,688 Landfill Closure and Postclosure - - 1,381,803 1,381,803 Notes Payable 677,829 - - 677,829
Net Pension Liability 7,193 6,146 958 14,297
Total Noncurrent Liabilities 693,310 13,551 1,383,756 2,090,617 Total Liabilities 781,759 34,573 1,387,932 2,204,264
DEFERRED INFLOWS OF RESOURCES 40,424 47,309 6,298 94,031
NET POSITION
Net Investment in Capital Assets 1,810,668 2,137,608 36,734 3,985,010 Restricted:
Debt Service 68,362 - - 68,362
Facility Fees 306,721 273,756 - 580,477
Capital Projects - 211,716 - 211,716
Unrestricted 2,471,948 1,857,042 (775,050) 3,553,940
Total Net Position 4,657,699 $ 4,480,122 $ (738,316) $ 8,399,505 $ Business-Type Activities - Enterprise Funds
CITY OF PORTOLA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(21)
Water Sewer Solid
Service Service Waste Total
OPERATING REVENUES
Charges for Services 963,354 $ 714,764 $ 297,950 $ 1,976,068 $ Total Operating Revenues 963,354 714,764 297,950 1,976,068
OPERATING EXPENSES
Salaries and Wages 176,363 156,351 19,852 352,566
Services and Supplies 374,422 251,822 29,019 655,263
Landfill Closure Costs - - 115,319 115,319
Depreciation 153,497 127,006 3,145 283,648
Total Operating Expenses 704,282 535,179 167,335 1,406,796 Operating Income (Loss) 259,072 179,585 130,615 569,272
NONOPERATING REVENUE (EXPENSE)
Interest Income (Loss) 8,691 6,720 1,595 17,006
Debt Service Interest and Fiscal Charges (37,141) - - (37,141) Total Nonoperating Revenue
(Expense) (28,450) 6,720 1,595 (20,135)
Changes in Net Position 230,622 186,305 132,210 549,137 Net Position - Beginning of Year 4,427,077 4,293,817 (870,526) 7,850,368 Net Position - End of Year 4,657,699 $ 4,480,122 $ (738,316) $ 8,399,505 $ Business-Type Activities - Enterprise Funds
CITY OF PORTOLA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(22)
Water Sewer Solid
Service Service Waste Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Receipts From Customers 978,579 $ 687,223 $ 316,705 $ 1,982,507 $ Cash Paid to Suppliers for Goods
and Services (400,788) (247,143) (78,337) (726,268)
Cash Paid to Employees for Services (307,090) (276,209) (37,179) (620,478) Net Cash Provided by Operating Activities 270,701 163,871 201,189 635,761
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal Repayments on Long-Term Debt (32,000) - - (32,000) Interest Repayments Related to
Capital Purposes (37,141) - - (37,141)
Payments Related to the Acquisition
of Capital Assets (6,867) (10,335) - (17,202)
Net Cash Provided (Used) by Capital
and Related Financing Activities (76,008) (10,335) - (86,343)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received or Paid 6,288 5,115 976 12,379
Net Cash Provided by Investing Activities 6,288 5,115 976 12,379 NET INCREASE IN CASH AND CASH EQUIVALENTS 158,651 200,981 202,165 561,797 Cash and Cash Equivalents - Beginning of Year 2,445,253 2,016,505 355,309 4,817,067 CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,175,156 2,646,234 $ 557,474 $ 5,378,864 $
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO THE STATEMENT OF
NET POSITION
Cash and Cash Equivalents in Current Assets 2,271,151 $ 1,689,683 $ 557,474 $ 4,518,308 $ Cash and Cash Equivalents in Restricted Assets 375,083 485,473 - 860,556 Total Cash and Cash Equivalents 2,646,234 $ 2,175,156 $ 557,474 $ 5,378,864 $ Business-Type Activities - Enterprise Funds
CITY OF PORTOLA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(23)
Water Sewer Solid
Service Service Waste Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Operating Income (Loss) 259,072 $ 179,585 $ 130,615 $ 569,272 $ Adjustments to Reconcile Operating Income
(Loss) to Cash Flows From Operating Activities:
Depreciation 153,497 127,006 3,145 283,648
Changes in Assets and Liabilities:
(Increase) Decrease in:
Utilities Receivable 15,847 (27,541) 18,755 7,061
Customer Deposits (622) - - (622)
Prepaid Expenses (5,094) - - (5,094)
Deferred Outflows 17,345 21,418 1,816 40,579
Increase (Decrease) in:
Accounts Payable (21,272) 4,679 2,129 (14,464)
Accrued Expenses 1,687 (281) (134) 1,272
Liability for Compensated Absences (1,139) (1,329) (173) (2,641) Closure/Postclosure Liability - - 63,872 63,872
Net Pension Liability (137,669) (126,673) (17,650) (281,992) Deferred Inflows (10,951) (12,993) (1,186) (25,130)
Net Cash Provided (Used) by Operating
Activities 270,701 $ 163,871 $ 201,189 $ 635,761 $
Business-Type Activities - Enterprise Funds
(24)
NOTES TO FINANCIAL STATEMENTS
The notes provided in the Financial Section of this report are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a Summary of Significant Accounting Policies for the City, and other necessary disclosures of pertinent matter relating to the financial position of the City. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(25)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Portola is governed by an appointed City Manager and elected five-member Council, from which a mayor is elected annually.
A. Description of Reporting Entity
The accounting methods and procedures adopted by the City conform to generally accepted accounting principles as applied to governmental entities. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable.
Reporting for component units on the City’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the City and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize they are legally separate from the City.
The City had no blended or discretely presented component units as of June 30, 2022.
B. Basis of Financial Presentation
1. Government-Wide Financial Statements
The statement of net position and statement of activities display information about the City and its components. These statements include the financial activities of the overall government. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are primarily supported by fees charged to external parties.
The statement of activities presents a comparison between direct and indirect expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or a function and; therefore, are clearly identifiable to a particular function. Indirect expenses are those that are allocated to a program or a function from the City’s centralized general service function based on the cost allocation principles established by the Federal Office of Management and Budget (OMB). Program revenues include 1) charges paid by the recipients of goods or services offered by the programs, 2) fines and penalties ordered by the courts, 3) licenses and permits charged by the programs, and 4) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.
When both restricted and unrestricted net positions are available, restricted resources are used first then the unrestricted resources are depleted.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(26)
2. Fund Financial Statements
The fund financial statements provide information about the City’s funds. Separate statements for each fund category – governmental and proprietary – are presented.
The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. The City reports all enterprise funds as major funds. All remaining governmental funds are separately aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
The City reports the following major governmental funds:
The General Fund is the primary 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.
The State Transportation Improvement Plan (STIP) Fund is used to account for projects that are funded using State Transportation Improvement Program monies.
The Gas Tax 2107 Fund is used to account for State Gas Tax Funds and transactions associated with street maintenance and repair. The Snow Removal Fund is used to account for State Funds for Snow Removal and all associated costs to the City.
The City reports all of its enterprise funds as major funds:
The Water Service Fund is used to account for water services provided to the residents of the City and for a small number of residents directly outside the City.
The Sewer Service Fund is used to account for sewer services. The Solid Waste Fund is used to account for the franchised curbside refuse and recycling collection provided to residences and businesses within the City and for the landfill postclosure maintenance costs.
C. Basis of Accounting
The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) values without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donation. On the accrual basis, property tax revenues are recognized in the fiscal year for which the taxes are levied. Sales taxes are recognized when the underlying transactions take place.
Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(27)
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, expenditures are recorded when the related liability is incurred except the unmatured interest on long-term debt, and expenses related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financial sources. Revenues are recorded when they are both measurable and available to finance expenditures during the fiscal period.
Property and sales taxes, interest, state and federal grants, and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Revenues earned but not received within sixty days after the end of the accounting period, on the other hand, are recorded as receivables and deferred inflows.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
D. Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the general purpose financial statements and the reported amount of revenue and expenditures or expenses during the reporting period. Actual results could differ from those estimates.
E. Interfund Transactions and Balances
Interfund transactions are either reflected as loans, services provided, reimbursements, or transfers. Loans are reported as receivable and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/due from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”.
Advances between funds, are reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.
Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(28)
F. Capital Assets
Capital assets (including infrastructure) are recorded at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their acquisition value. Capital assets include public domain (infrastructure) consisting of certain improvements including roads, bridges and water/sewer systems.
The City is not required to retroactively report infrastructure and therefore has elected not to do so. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets used in operations are depreciated or amortized ( right to use assets under leases) using the straight-line method over the lesser of the lease period or their estimated useful lives in the government-wide statements.
The estimated useful lives are as follows:
Buildings 50 years
Infrastructure 15 to 30 years
Building improvements 10 to 30 years
Equipment 3 to 20 years
G. Property Tax
Plumas County assesses properties, bills, collects, and distributes property taxes to the City. For this service, the County charges the City an administration fee.
Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July 1, and are payable in two installments on December 10 and April 10. The County bills and collects property taxes and remits them to the City in installments during the year.
H. Cash and Investments
For purposes of the Statement of Cash Flows – Proprietary Funds, the City considers all short-term highly liquid investments, including restricted cash and investments, to be cash and cash equivalents. Amounts held in the City’s investment pool are available on demand; thus, they are considered highly liquid and cash equivalents for purposes of the Statement of Cash Flows – Proprietary Funds.
I. Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(29)
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive;
Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable input reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
J. Receivables
Receivables consist of property taxes, sales taxes and grants from other governmental agencies. As of June 30, 2022, no balance has been provided as an allowance for doubtful accounts because in the opinion of management all receivables are considered collectible.
K. Compensated Absences
The following is the City’s policy on compensated absences upon discontinuation of services:
Percent of Percent of
Sick Hours Vacation Hours
Employee Status Received Received
Part-time 25 100
Full-time 25 100
The annual leave includes vacation and sick leave. City employees have vested interests in the amount of annual leave accrued and are paid on termination.
The city accrues accumulated unpaid compensated absences when earned (or estimated to be earned) by the employee. The noncurrent (the amount estimated to be used in subsequent fiscal years) for governmental funds is maintained separately and represents a reconciling item between the fund and government-wide presentation.
In accordance with the provisions of the GASB No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulated rights to receive sick pay benefits.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(30)
L. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items which qualify for reporting in this category. See pension disclosure Footnote 9.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items which qualify for reporting in this category. See pension disclosure Footnote 9. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
NOTE 2 NET POSITION/FUND BALANCE
Net Position
The government-wide activities financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.
Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position – This category represents net position of the City, not restricted for any project or other purpose.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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Fund Equity
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
Nonspendable fund balance – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact.
Restricted fund balance – amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed fund balance – amounts that can only be used for specific purposes determined by formal action of the highest level of decision-making authority and that remain binding unless removed in the same manner.
The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.
Assigned fund balance – amounts that are constrained by the intent to be used for specific purposes. The intent can be established at either the highest level of decisionmaking, or by a body or an official designated for that purpose. This is also the classification for residual funds in the special revenue funds.
Unassigned fund balance – the residual classification for the General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.
The City Council establishes, modifies, or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, followed by the unrestricted, committed, assigned and unassigned resources as they are needed.
NOTE 3 CASH AND INVESTMENTS
At June 30, 2022, total City cash and investments at fair value were as follows:
Petty Cash 375 $
Cash in Bank 654,511
LAIF 7,498,001
Total 8,152,887 $
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(32)
Total cash and investments at June 30, 2022 were presented on the City’s financial statements as follows:
Cash and Investments 7,291,956 $
Imprest Cash 375
Restricted Assets:
Cash 860,556
Total 8,152,887 $
Restricted cash and investments in the enterprise fund are comprised of funds held for debt service, facility fees, and wastewater treatment capital improvements.
Investments
At June 30, 2022, the City had the following investments:
Amortized
Par Cost Cost
Investments:
Local Agency Investment Fund (LAIF) 7,498,001 $ 7,498,001 $ 7,498,001 $ Total Investments 7,498,001 $ 7,498,001 $ 7,498,001 $
Interest Rate Risk
The City manages its exposure to declines in fair values by investing excess cash in the State’s Local Agency Investment Fund. Funds held in this account are available on demand.
Credit Risk
The City authorizes participation in the following types of investments: FDIC Insured Accounts, Local Agency Investment Fund, and United States Government Securities. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the City’s Investment Pool at June 30, 2022.
Percent of
Moody's Portfolio
Local Agency Investment Fund (LAIF) Unrated 100.00%
Total Pooled Investments 100.00%
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of a failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. As of June 30, 2022, the recorded amount of the City’s deposits was $654,511 and the bank balance was $450,910. Of the bank statement balance, $250,000 was covered by federal depository insurance and $200,910 was subject to collateralization.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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Local Agency Investment Fund
The City maintains an investment in the state of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the state in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code.
The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2022, the City’s investment position in LAIF was $7,489,001 which approximates fair value and is the same as value of the pool shares. The total amount invested by all public agencies in PMIA on that day was $234,469,950,028. Of that amount, 1.88% was invested in structured notes and asset-backed securtities with the remaining 98.12% invested in other nonderivatives financial reports.
Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. LAIF is the City’s only investment and it is measured on amortized cost basis as of June 30, 2022.
NOTE 4 LOANS AND NOTES RECEIVABLE
During the fiscal year ended June 30, 2012, the City extended a loan to Eastern Plumas Health Care District in the amount of $348,000. The loan bears initial interest of 1.48% per year to be adjusted annually to reflect LAIF interest rate plus 1%. The term of the loan is 168 months. As of June 30, 2022, the outstanding balance was $134,499. The City also issued Community Development Block Grant (CDBG) loans in the amount of $43,525. The total loans and notes receivable at June 30, 2022 is $178,024.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:
Balance Transfers and Balance
Governmental Activities July 1, 2021 Additions Retirements June 30, 2022 Capital Assets, Not Being Depreciated:
Land 746,277 $ - $ - $ 746,277 $
Construction in Progress 329,081 157,744 (8,898) 477,927 Total Capital Assets, Not Being
Depreciated 1,075,358 157,744 (8,898) 1,224,204
Capital Assets, Being Depreciated:
Infrastructure 13,681,298 - - 13,681,298
Buildings and Improvements 1,696,715 6,001 8,898 1,711,614 Machinery and Equipment 1,608,138 - - 1,608,138
Intangible Assets - 58,297 - 58,297
Total Capital Assets, Being
Depreciated 16,986,151 64,298 8,898 17,059,347
Less: Accumulated Depreciation for:
Infrastructure (7,863,062) (617,479) - (8,480,541)
Buildings and Improvements (1,303,713) (60,529) - (1,364,242) Machinery and Equipment (1,221,299) (95,216) - (1,316,515) Intangible Assets - (1,619) (1,619)
Total Accumulated Depreciation (10,388,074) (774,843) - (11,162,917) Total Capital Assets, Being
Depreciated, Net 6,598,077 (710,545) 8,898 5,896,430
Governmental Activities
Capital Assets, Net 7,673,435 $ (552,801) $ - $ 7,120,634 $
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(35)
Balance Transfers and Balance
Business-Type Activities July 1, 2021 Additions Retirements June 30, 2022 Capital Assets, Not Being Depreciated:
Land 62,844 $ - $ - $ 62,844 $
Construction in Progress 181,378 7,703 - 189,081
Total Capital Assets, Not Being
Depreciated 244,222 7,703 - 251,925
Capital Assets, Being Depreciated:
Buildings and Improvements 8,593,575 - - 8,593,575
Machinery and Equipment 1,306,454 9,499 (4,057) 1,311,896 Total Capital Assets, Being
Depreciated 9,900,029 9,499 (4,057) 9,905,471
Less: Accumulated Depreciation for:
Buildings and Improvements (4,082,026) (226,689) - (4,308,715) Machinery and Equipment (1,099,940) (56,959) 4,057 (1,152,842) Total Accumulated Depreciation (5,181,966) (283,648) 4,057 (5,461,557) Total Capital Assets, Being
Depreciated, Net 4,718,063 (274,149) - 4,443,914
Business-Type Activities, Net 4,962,285 $ (266,446) $ - $ 4,695,839 $ Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government 25,583 $
Public Protection 33,622
Public Ways and Facilities 1,124
Streets and Roads 636,466
Recreation and Culture 78,048
Total Depreciation Expense -
Governmental Activities 774,843 $
Business-Type Activities:
Water Fund 153,497 $
Sewer Fund 127,006
Solid Waste Fund 3,145
Total Depreciation Expense -
Business-Type Activities 283,648 $
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(36)
NOTE 6 LONG-TERM LIABILITIES
Long-term liabilities at June 30, 2022 consisted of the following:
Annual Original
Date of Date of Interest Principal Issue Outstanding at Business-Type Activities Issue Maturity Rates Installments Amount June 30, 2022 1997 Special Assessment
Water Improvement
Note Payable from Direct Borrowing 1997 5/1/2037 5.00% $5,000-$25,000 1,173,000 $ 710,829 $ (to Finance Improvements to
the City's Water System)
Total Business-Type Activities $ 710,829 1,173,000 $
The following is a summary of long-term liabilities transactions for the year ended June 30, 2022:
Amounts
Balance Balance Due Within
July 1, 2021 Additions Deletions Adjustment June 30, 2022 One Year Governmental Activities:
Compensated Absences 23,243 $ - $ (5,100) $ - $ 18,143 $ 8,221 $ Total 23,243 $ - $ (5,100) $ - $ 18,143 $ 8,221 $
Business-Type Activities:
Notes Payable from
Direct Borrowing 742,829 $ - $ (32,000) $ - $ 710,829 $ 33,000 $ Postclosure Costs 1,317,931 115,319 (51,447) - 1,381,803 - Compensated Absences 33,158 - (2,641) - 30,517 13,829
Total 2,093,918 $ 115,319 $ (86,088) $ - $ 2,123,149 $ 46,829 $
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(37)
The City’s outstanding note payable for business-type activities is secured by water service revenue. As of June 30, 2022, annual debt service requirements of business-type activities to maturity are as follows:
Year Ending June 30, Principal Interest
2023 33,000 $ 35,550 $
2024 35,000 33,900
2025 37,000 32,150
2026 38,000 30,300
2027 40,000 28,400
2028-2032 233,000 109,850
2033-2037 294,829 45,550
Total 710,829 $ 315,700 $
Notes Payable from Direct Borrowing
Business-Type Activities
NOTE 7 INTERFUND TRANSACTIONS AND BALANCES
The composition of interfund balances as of June 30, 2022 is as follows:
Due To/From Other Funds:
Receivable Fund Payable Fund Amount Purpose
General Fund STIP 33,067 $ To cover cash deficit expected to be recovered through future revenues.
Transfers:
Transfers are used to subsidize various City operations. The following schedule briefly summarizes the City’s transfer activity for the fiscal year ended June 30, 2022:
Transfer From Transfer to Amount
General Fund Gax Tax 2107 122,099 $
Snow Removal 171,431
STIP 9,085
$ 302,615
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(38)
NOTE 8 FUND DISCLOSURES
The following funds had a net position/fund balance deficit at the end of the fiscal year:
Enterprise Funds:
Solid Waste Fund (738,316) $
The Solid Waste Fund has incurred a deficit net position balance as a result of recognition of the estimated liability for the landfill postclosure care costs. The City has established a solid waste surcharge included in its utility billings to reduce the deficit in this fund.
NOTE 9 DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plans
1. Plan Description
The City of Portola provides pension benefits to eligible employees through cost sharing multiple-employer defined benefit pension plans (pension plans) administered by the California Public Employees Retirement System (PERS), a public employee retirement system which acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees are eligible to participate in the City’s pension plans. The City’s Miscellaneous Plans (Tier I and Tier II) and PEPRA Miscellaneous Plan are cost-sharing multiple-employer defined benefit plans. Benefit provisions and other requirements are established by state statute and City resolution. The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and their beneficiaries. The City selects optional benefit provisions by contract with PERS and adopts those benefits through City ordinance. Copies of PERS annual financial reports which include required supplementary information (RSI) for each plan may be obtained from PERS Executive Offices, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811.
2. Benefits Provided
All pension plans provide benefits, upon retirement, disability, or death of members.
Retirement benefits are based on years of service, final average compensation, and retirement age. Employees terminating before accruing five years of retirement service credit forfeit the right to receive retirement benefits unless they establish reciprocity with another public agency within a prescribed time period. Nonvested employees who terminate service are entitled to withdraw their accumulated contributions plus accrued interest. Employees who terminate service after earning five years of retirement service credit may leave their contributions on deposit and elect to take a deferred retirement. Differences between expected and actual experience for vested and nonvested benefits may result in an increase or decrease to pension expense and net pension liability.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(39)
Nonservice related disability benefits are provided to miscellaneous members. The benefit is based on final compensation, multiplied by service, which is determined as follows:
Service is CalPERS credited service, for members with less than 10 years or service or greater than 18.518 years of service; or
Service is CalPERS credited service plus the additional number of years that the member would have worked until age 60, for members with at least 10 years but not more than 18.518 years of service. Death benefits are based upon a variety of factors including whether the participant was retired or not.
Annual cost-of-living adjustments (COLAs) after retirement are provided in all plans.
COLAs are granted to retired members each May based upon the Bureau of Labor Statistics Average Consumer Price Index for All Urban Consumers for the previous calendar year and is subject to a maximum of 2% per annum.
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Miscellaneous Miscellaneous
Tier I Tier II PEPRA
Hire Date Prior to On or after On or after
July 1, 2012 July 1, 2012 January 2, 2013
Benefit Formula 2.7% at 55 2.0% at 60 2.0% at 62
Benefit Vesting Schedule 5 Years of 5 Years of 5 Years of Credited Service Credited Service Credited Service
Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 50 52
Monthly Benefits, as % of
Eligible Compensation 2.0%-2.7% 1.1%-2.4% 1.0%-2.5%
Required Employee
Contribution Rates 8.0% 7.0% 6.75%
Required Employer
Contribution Rates 13.350% 8.650% 7.590%
Status Open Open Open
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(40)
3. Employees Covered
Information regarding the number of employees covered by the benefit terms for the Miscellaneous Plans is not available for cost-sharing multiple-employer defined benefit pension plans.
4. Contributions
Section 20814 of the California Public Employees’ Retirement Law requires the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. During the year ended June 30, 2022, the City made contributions totaling $112,052 to the Plan.
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
1. Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous PEPRA
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Payroll Growth 2.75% 2.75%
Projected Salary Increase
Investment Rate of Return 7.15%(1) 7.15%(1)
Mortality
(1) Net of Pension Plan Investment Expenses, Including Inflation.
Entry-Age Normal
Varies by Entry Age and Service
Derived Using CalPERS'
Membership Data for All Funds
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the results of a April 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(41)
2. Change of Assumption
In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
3. Discount Rate
The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans ran out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2022-2023 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until there is a change in methodology.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension investment expense and inflation) are developed for each major asset class.
The long-term expected rate of return includes both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric)returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of 1%.
The long-term expected real rates by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2022.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(42)
4. Proportionate Share of the Net Pension Liability
The Miscellaneous plans are part of a Risk Pool, which is part of the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan. The City’s net pension liability for the Miscellaneous Plan was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all plan participants, actuarially determined. The City’s net pension liability and related Plan proportion for the Miscellaneous Plan is as follows:
Miscellaneous
Proportion - June 30, 2021 0.01147%
Proportion - June 30, 2022 0.11700%
Change - Increase/(Decrease) 0.00170%
C. Changes in the Net Pension Liability
1. Sensitivity of the Net Pension Liability to Change in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage points lower or 1-percentage point higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
6.15% 7.15% 8.15%
Net Pension Liability 529,689 $ 22,269 $ (397,207) $
2. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
D. Pension Revenue and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension credit of $318,126.
Pension credit represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(43)
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences Between Expected and Actual
Experience 2,497 $ - $
Changes in Assumptions - -
Change in Employer's Proportion and Differences
Between the Employer's Contributions and the
Employer's Proportionate Share of Contributions 70,506 63,697 Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - 19,440
Change in Employer's Proportion 88,653 63,330
City Contribution Subsequent to the
Measurement Date 112,052
Total 273,708 $ 146,467 $
$112,052 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Deferred
Outflows/(Inflows)
Year Ending June 30, of Resources
2023 13,695 $
2024 5,781
2025 1,085
2026 (5,372)
Total 15,189 $
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS
The City does not offer health insurance benefits to its retirees. By resolution number 2071 the City has confirmed that retirees are only eligible to receive those benefits offered to them by participation in the state of California Public Employees Retirement System (PERS), as well as those that they may be eligible for under the federal Medicare program.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(44)
NOTE 11 LANDFILL CLOSURE AND POSTCLOSURE CARE COST
The City is responsible for one closed landfill site. State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and perform certain maintenance and monitoring functions at the site for thirty years after closure. GASB Statement No. 18 requires a portion of these closure and postclosure care costs be reported as an operating expense in each period based on landfill capacity used as of each statement of net position date. Since the landfill is no longer accepting waste, the entire estimated expense and related liability have been reported.
As of June 30, 2022, the City’s estimated liability for postclosure maintenance costs for the landfill was $1,381,803. This estimate is based on the amount that would be paid if all equipment, facilities, and services required to close and/or monitor the landfills were acquired as of the balance sheet date. The costs for landfill postclosure maintenance costs are based on yearly estimates, reviewed by the California Integrated Waste Management Board, as prepared by TGV Solid Waste, Inc. Actual costs may be higher due to inflation, change in technology, or changes in regulations. The City has applied the annual inflation factor to the liability each year and has reduced the liability by actual expenses incurred.
The City is required by the California Code of Regulations to demonstrate financial responsibility for postclosure maintenance costs. The City has met this requirement for the Portola landfill through a pledge of revenue.
NOTE 12 RISK MANAGEMENT
The City of Portola is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; error and omissions; injuries to employees; and natural disasters.
The City participates in joint powers agreements through the Small Cities Organized Risk Effort (SCORE) and California Joint Powers Risk Management Authority (CJPRMA). The relationship between the City and the JPAs is such that the JPAs are not considered a component unit of the City for financial reporting purposes.
The JPAs arrange for and provide liability coverage for members. Each JPA is governed by a board consisting of a representative from each member. The Board controls the operations of the JPA including selection of management and approval of operating budgets, independent of any influence by the members beyond their representation on the board. Each member pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionate to their participation in the JPA.
The City participates in a Banking Plan for the first $25,000 of loss. The portion of loss greater than $25,000 but less than $500,000 is shared among the Member Cities in the Shared Risk Pool. The City participates in the CJPRMA for the portion of losses greater than $500,000 to a maximum of $10,000,000. The liability related to the Banking Plan was deemed immaterial.
CITY OF PORTOLA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(45)
The Authority establishes claims liabilities based on estimates of the ultimate cost of claims (including future claim adjustment expenses that have been reported but not settled, and of claims that have been incurred but not reported (IBNR)). The length of time for which such costs must be estimated varies in the coverage involved. Estimated amounts of salvage and subrogation and excess-insurance recoverable on unpaid claims are deducted from the liability for unpaid claims.
NOTE 13 COMMITMENTS AND CONTINGENCIES
The City is subject to various lawsuits, inverse condemnation cases, personnel actions, and other actions incidental to the ordinary course of City operations. In the opinion of the City attorney, the total potential claims against the City covered by insurance resulting from litigation would not materially affect the financial statements of the City at June 30, 2022.
NOTE 14 EXCESS EXPENDITURES OVER BUDGET
The City had expenditures that exceeded its budget in the General Fund by $4,990.
REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF PORTOLA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY/ (ASSET) AND RELATED RATIOS
YEAR ENDED JUNE 30, 2022
(46)
Miscellaneous Plans – Cost-sharing Multiple-Employer Defined Benefit Pension Plans Last 10 Fiscal Years*
6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportionate Share of the Net Pension Liability 22,269 $ 483,829 $ 391,142 $ 709,707 $ 708,789 $ 577,890 $ 394,917 $ 237,694 $ Proportion of the Net Pension Liability 0.001% 0.011% 0.010% 0.019% 0.018% 0.017% 0.014% 0.010% Covered Payroll 152,062 $ 167,300 $ 194,362 $ 181,423 $ 259,958 $ 317,876 $ 337,555 $ 580,058 $ Proportionate Share of the Net Pension Liability
as a Percentage of Covered Payroll 14.6% 289.2% 201.2% 391.2% 272.7% 181.8% 117.0% 41.0% Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 90.49% 77.71% 77.73% 77.69% 75.39% 75.87% 79.89% 81.15% Reporting Date
Measurement Date
*Amounts presented above were determined as of June 30. Additional years will be presented as they become available.
CITY OF PORTOLA
SCHEDULE OF PENSION PLAN CONTRIBUTIONS
YEAR ENDED JUNE 30, 2022
(47)
Miscellaneous Plans – Cost-sharing Multiple-Employer Defined Benefit Pension Plans Last 10 Fiscal Years*
6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Actuarially Determined Contribution 46,122 $ 46,122 $ 39,456 $ 34,427 $ 48,061 $ 48,041 $ 52,222 $ 24,089 $ Contributions in Relation to the Actuarially
Determined Contributions 112,052 97,709 94,059 471,085 64,595 45,970 43,236 41,882 Contributions Deficiency (Excess) (65,930) $ (51,587) $ (54,603) $ (436,658) $ (16,534) $ 2,071 $ 8,986 $ (17,793) $ Covered Payroll 156,624 $ 152,062 $ 167,300 $ 194,362 $ 181,423 $ 259,958 $ 317,876 $ 337,555 $ Contributions as a Percentage of
Covered Payroll 71.54% 64.26% 56.22% 242.37% 35.60% 17.68% 13.60% 12.41% *Amounts presented above were determined as of June 30. Additional years will be presented as they become available.
CITY OF PORTOLA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
GENERAL FUND
FISCAL YEAR ENDED JUNE 30, 2022
(48)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 599,450 $ 599,450 $ 667,065 $ 67,615 $
Licenses and Permits 65,400 65,400 62,473 (2,927)
Fines, Forfeitures and Penalties 200 200 200 -
Use of Money and Property 15,536 15,536 10,446 (5,090)
Intergovernmental 328,000 449,000 468,298 19,298
Charges for Services 11,500 11,500 41,479 29,979
Other Revenues - 50,000 68,794 18,794
Total Revenues 1,020,086 1,191,086 1,318,755 127,669
EXPENDITURES
Current:
General Government 227,179 227,179 210,199 16,980
Planning and Community Development 81,100 181,100 167,805 13,295 Public Safety 343,610 391,882 408,802 (16,920)
Public Works 104,101 136,501 144,862 (8,361)
Parks and Recreation 164,374 195,221 205,205 (9,984)
Total Expenditures 920,364 1,131,883 1,136,873 (4,990)
Excess (Deficiency) of Revenues
Over Expenditures 99,722 59,203 181,882 122,679
OTHER FINANCING SOURCES (USES)
Transfers Out (315,126) (315,126) (302,615) 12,511
Total Other Financing Sources (Uses) (315,126) (315,126) (302,615) 12,511 Net Change in Fund Balances (215,404) (255,923) (120,733) 135,190 Fund Balances - Beginning of Year 2,764,924 2,764,924 2,764,924 - Fund Balances - End of Year 2,549,520 $ 2,509,001 $ 2,644,191 $ 135,190 $ Budgeted Amounts
CITY OF PORTOLA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
STATE TRANSPORTATION IMPROVEMENT FUND
FISCAL YEAR ENDED JUNE 30, 2022
(49)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ 175,000 $ 157,744 $ (17,256) $
Total Revenues - 175,000 157,744 (17,256)
EXPENDITURES
Current:
Streets and Roads 10,000 178,000 159,361 18,639
Total Expenditures 10,000 178,000 159,361 18,639
Excess (Deficiency) of Revenues
Over Expenditures (10,000) (3,000) (1,617) (35,895)
OTHER FINANCING SOURCES (USES)
Transfers In - - 9,085 9,085
Total Other Financing Sources (Uses) - - 9,085 9,085
Net Change in Fund Balances (10,000) (3,000) 7,468 10,468 Fund Balances - Beginning of Year (7,179) (7,179) (7,179) - Fund Balances - End of Year (17,179) $ (10,179) $ 289 $ 10,468 $ Budgeted Amounts
CITY OF PORTOLA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
GAS TAX 2107 FUND
FISCAL YEAR ENDED JUNE 30, 2022
(50)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 55,443 $ 55,443 $ 52,343 $ (3,100) $
Total Revenues 55,443 55,443 52,343 (3,100)
EXPENDITURES
Current:
Public Safety 50,000 50,000 38,321 11,679
Streets and Roads 157,069 157,069 136,121 20,948
Total Expenditures 207,069 207,069 174,442 32,627
Excess (Deficiency) of Revenues
Over Expenditures (151,626) (151,626) (122,099) 29,527
OTHER FINANCING SOURCES (USES)
Transfers In 151,626 151,626 122,099 (29,527)
Total Other Financing Sources (Uses) 151,626 151,626 122,099 (29,527) Net Change in Fund Balances - - - -
Fund Balances - Beginning of Year - - - -
Fund Balances - End of Year - $ - $ - $ - $
Budgeted Amounts
CITY OF PORTOLA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
SNOW REMOVAL FUND
FISCAL YEAR ENDED JUNE 30, 2022
(51)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 77,500 $ 77,500 $ 93,052 $ 15,552 $
Total Revenues 77,500 77,500 93,052 15,552
EXPENDITURES
Current:
Streets and Roads 231,000 278,000 277,661 339
Total Expenditures 231,000 278,000 277,661 339
Excess (Deficiency) of Revenues
Over Expenditures (153,500) (200,500) (184,609) 15,891
OTHER FINANCING SOURCES (USES)
Transfers In 153,500 153,500 171,431 17,931
Total Other Financing Sources (Uses) 153,500 153,500 171,431 17,931 Net Change in Fund Balances - (47,000) (13,178) 33,822
Fund Balances - Beginning of Year 13,178 13,178 13,178 - Fund Balances - End of Year 13,178 $ (33,822) $ - $ 33,822 $ Budgeted Amounts
CITY OF PORTOLA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(52)
BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Budget adjustments from reserves and between funds are approved by the City Council and budget transfers within fund or department are approved by the City Manager. Expenditures may not legally exceed budgeted appropriations at the fund level for all funds without the City Council’s approval.
5. Budgets are adopted for the General Fund and Special Revenue Funds.
6. Formal budgetary integration is employed as a management control device during the year in all funds.
Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all funds.
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SUPPLEMENTARY INFORMATION
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NONMAJOR SPECIAL REVENUE FUNDS
CITY OF PORTOLA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(53)
Community
Road Maintenance Development
and Block
Rehabilitation Account Grant Total
ASSETS
Cash and Investments 78,424 $ 42,521 $ 120,945 $
Due from Other Governments 7,308 - 7,308
Interest Receivable 124 67 191
Notes Receivable, Net - 43,525 43,525
Total Assets 85,856 $ 86,113 $ 171,969 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable 231 $ 1,500 $ 1,731 $
Accrued Salaries and Benefits
Payable 274 - 274
Total Liabilities 231 1,774 2,005
Fund Balance:
Restricted 85,625 43,525 129,150
Assigned - 40,814 40,814
Total Fund Balance 85,625 84,339 169,964
Total Liabilities and Fund Balance 85,856 $ 86,113 $ 171,969 $
CITY OF PORTOLA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
(54)
Community
Road Maintenance Development
and Block
Rehabilitation Account Grant Total
REVENUES
Use of Money and Property 224 $ 160 $ 384 $
Intergovernmental 42,359 - 42,359
Total Revenues 42,583 160 42,743
EXPENDITURES
Current:
Streets and Roads 1,069 - 1,069
Planning and Community
Development 37,581 - 37,581
Total Expenditures 1,069 37,581 38,650
Net Change in Fund Balances 41,514 (37,421) 4,093
Fund Balances - Beginning of Year 44,111 121,760 165,871 Fund Balances - End of Year 85,625 $ 84,339 $ 169,964 $
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OTHER REPORTS
THIS PAGE INTENTIONALLY LEFT BLANK
(55)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Council Members
Portola, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Portola (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 8, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a deficiency in internal control, described in the accompanying schedule of findings and responses as item 2022-001 that we consider to be a material weakness.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and Council Members
City of Portola
(56)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards .
City of Portola’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Roseville, California
November 8, 2022
CITY OF PORTOLA
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED JUNE 30, 2020
(57)
2022 – 001 Prepaid Expenditures and Receivables
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: CLA noted that the City incorrectly recorded transactions relating to the STIP North Loop Project, including understating prepaid expenses with a contractor, and overstating receivables related to claims to the state of California in the STIP Fund in the fund financial statements.
Criteria or specific requirement: Under generally accepted accounting principles, the government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recorded when they are both measurable and available to finance expenditures during the fiscal period.
Effect: Prepaid expenses were understated by $9,331 expenses were overstated by $9,331, and amounts due from other governments and intergovernmental revenue were overstated by $16,978 in the STIP Fund. As a result, an adjustment was recorded to correctly reflect work perfomed on the STIP North Loop Project as of June 30, 2022.
Cause: The City utilizes a contractor to perform engineering services for the project and prepare reimbursement claims to be submitted to the state of California on behalf of the City for the project. The contractor is paid a flat rate through the City’s payroll system as an advance against work performed, and the City reconciles actual amounts paid to the Contractor against claims submitted to the state of California for actual work performed. During the year, the contractor submitted a claim to the state of California which included expenses for reimbursement through July 31, 2022. The City accrued 100% of this claim as receivable at June 30, 2022, rather than just the portion applicable to the year ended June 30, 2022.
Repeat Finding: This is a repeat finding. Refer to finding 2021-001 in the prior year.
Recommendation: The City should develop a process to ensure that claims in the STIP Fund are submitted to the State on a timely basis, and to ensure that amounts paid to the contractor are accurately reconciled to actual work performed on a timely basis.
Views of responsible officials and planned corrective actions: The City agrees with the finding. While the City did work on reconciling the STIP fund and communicated more with the contractor, there is some additional work that will be done in the future. This fund will always be difficult to reconcile due to the nature and timing of the work and the payments. All services performed are 100% reimbursed by the State and there will be a final reconciliation once the project is completed and signed off by CalTrans.
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CITY COUNCIL AGENDA STAFF REPORT
DATE: December 9, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Jon Kennedy, City Manager and Susan Scarlett, Finance Officer MEETING: December 14, 2022
SUBJECT: P G & E Settlement funds
On April 11, 2022 Pacific Gas and Electric entered into a stipulated judgment with the District Attorneys of Plumas, Lassen, Tehama, Shasta and Butte Counties regarding the Dixie Fire.
As part of the “settlement” volunteer fire departments were allocated a total of $1,000,000 to be divided between the departments. The City of Portola received $50,000 as our share of the settlement.
With the help of Beckwourth Fire Chief Bret Russell and the volunteer fire personnel, necessary equipment and upgrades are being identified.
As a start, to date $12,572.93 has been identified. The equipment and upgrades are on Portola equipment and would either stay with Portola or become part of the new Fire District.
Staff recommendation: Approve the use of the PG&E settlement funds with a not to exceed budget adjustment of $35,000.
Ph: 510-839-5111
TF: 800-443-3556
Fax: 510-839-5325
[email protected]
UEI#: DDLSADSWN7U7
Pacific North Division
6723 Sierra Court, Suite C
Dublin, CA 94568
www.LNCurtis.com
Quotation No. 239808
Quotation
CUSTOMER: SHIP TO:
Beckwourth Fire District
180 Main Street
Beckwourth CA 96129
Beckwourth Fire District
180 Main St
Beckwourth CA 96129
QUOTATION NO. ISSUED DATE EXPIRATION DATE
239808 10/09/2022 11/08/2022
SALESPERSON CUSTOMER SERVICE REP
Dan Bria
[email protected]
775-721-7678
Dan Bria
[email protected]
775-721-7678
REQUISITION NO. REQUESTING PARTY CUSTOMER NO. TERMS OFFER CLASS JOHN FATHEREE C4546 Net 30 FR
F.O.B. SHIP VIA DELIVERY REQ. BY
SP Standard Shipping
NOTES & DISCLAIMERS
Thank you for this opportunity to quote. We are pleased to offer requested items below. If you have any questions, need additional information, or would like to place an order, please contact your Customer Service Rep as noted above.
Safety Warning Notice: Products offered, sold, or invoiced herewith may have an applicable Safety Data Sheet (SDS) as prepared by the manufacturer of the product. Any handlers or users of product should refer to applicable SDS prior to handling or utilizing the product. Applicable SDS are included with shipment of products. For other important product notices and warnings, or to request an SDS, please contact Curtis or visit https://www.lncurtis.com/product-notices-warnings
LN QTY UNIT PART NUMBER DESCRIPTION UNIT PRICE TOTAL PRICE 1 1 EA 10178356 MSA Altair 4Xr Multigas Detector, Includes:
* Lel, O2, Co, & H2S Sensors
* 4-Gas Cylinder
* Regulator
$1,439.00 $1,439.00
2 1 EA TXSBUNDLE
BULRD
Yellow TXS Thermal Imager XS Dual
Charger Bundle with Two Batteries
$3,429.02 $3,429.02
3 2 EA RH-6 FIRE HOOKS 6' Steel New York Roof Hook with Standard Chisel End
$156.00 $312.00
Ph: 510-839-5111
TF: 800-443-3556
Fax: 510-839-5325
[email protected]
UEI#: DDLSADSWN7U7
Pacific North Division
6723 Sierra Court, Suite C
Dublin, CA 94568
www.LNCurtis.com
Quotation No. 239808
LN QTY UNIT PART NUMBER DESCRIPTION UNIT PRICE TOTAL PRICE 4 1 EA BRADY CUSTOM
000001
As Follows:
262-LKX BRADY
Prinzing Economy Lockout Kits, 28-Piece
plus Carrying Case
$138.99 $138.99
5 2 EA 15284008 AKR 2.5NH X1-1/8" Ori Saberjet Noz W/ Pg $1,069.00 $2,138.00 6 4 EA 1820 AKR CUSTOM UltraJet Nozzle, As Follows:
UltraJet Nozzle with 1.5" (38mm) inlet and
Removable Pistol Grip with 15/16" Tip
Option.
**with no charge color kit #127476**
Bale and Pistol Grip to be RED
$969.00 $3,876.00
7 1 EA AKRON BRASS
CUSTOM
As Below:
SABERJET TIP REPLACEMENT KIT,
SPECIFY ORIFICE
$195.00 $195.00
8 1 EA AKRON BRASS
CUSTOM
As Below:
ULTRAJET TIP REPLACEMENT KIT
$195.00 $195.00
Small Business
CAGE Code: 5E720
DUNS Number: 009224163
SIC Code: 5099
Federal Tax ID: 94-1214350
This pricing remains firm until 11/08/2022. Contact us for updated pricing after this date.
Due to market volatility and supply shortages, we recommend contacting your local L.N. Curtis and sons office prior to placing your order to confirm pricing and availability. This excludes our GSA Contract and other Fixed Price Contracts which are governed by contract-specific prices, terms, and conditions.
Ph: 510-839-5111
TF: 800-443-3556
Fax: 510-839-5325
[email protected]
UEI#: DDLSADSWN7U7
Pacific North Division
6723 Sierra Court, Suite C
Dublin, CA 94568
www.LNCurtis.com
Quotation No. 239808
Subtotal $11,723.01
Estimated Tax Total $849.92
Transportation* $0.00
*(to be added when order ships)
Total $12,572.93
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