DETERIORATION: The condition or appearance of any structure or grounds, or parts thereof, characterized by holes, breaks, rot, crumbling,cracking, peeling, rusting or other evidence of physical decay, neglect or lack of maintenance.
DILAPIDATED: A condition of structural disrepair or deterioration· to the extent requiring rehabilitation, reconstruction or demolition.
DWELLING: A building or portion thereof, designed exclusivelyfor residential purposes, including one-family and multiple-family dwellings; including mobile homes; but not including hotels, apartment hotels, boarding and rooming houses, fraternity and sorority houses, rest homes, convalescent homes and nursing homes or childcare nurseries.
ELECTRICAL: All work, materials and/or system of electrical wiring for use of light, heat or power, and all appurtenances,apparatus or equipmentused in connection therewith, inside of or attached to any building or structure,lot or premises.
ENFORCEMENT OFFICER: Any person authorized by the city manager to enforce any violation of this code.
FIRE HAZARD: Any condition or any act which violates the applicable state or city fire codes.
GARBAGE: The vegetable waste resulting from the handling, preparation, cooking, and/or consumption of food; and wastepaper, plastic or related materials used in the packaging and preparation of foods and/or animal waste.
GOOD STATE OF REPAIR: That a building, structure or parcel of land is safe and habitable for its ordinary and intended use, and that the materials used in any structure or fixtureare sound, stable and conform to its original purpose and performing the function for which intended and not in need of maintenance.
GRAFFITI IMPLEMENT: Any felt tip marker, etching material, paint stick, or aerosol container which contains paint, ink, dye, or any other substance that is not water soluble and is capable of resulting in the placement of graffiti upon any surface or substance, including, but not limited to, glass, metal, concrete, wood, or plastic.
GRAFFITI OR INSCRIBED MATERIAL: Any inscription, word(s), figure(s), mark(s), or design(s) whether written, marked, etched, scratched, drawn, or painted on any real or personal public or private property in the city without the permission of the owner and which is visible from a public right of way or any neighboring property.
HOARDING OR HOARDING CONDITIONS: The excessive collection of items, along with the inability to discard them. Hoarding often creates such cramped conditions that homes or yards may be filled to capacity, with only narrow pathwayswinding through stacks of clutter. Hoarding also includes the hoarding of animals, often resulting in dozens or hundreds of pets kept in unsanitaryconditions.
Ordinance No. 2024-003
INOPERABLE VEHICLE: A vehicle that is mechanically incapable of being driven; or prohibited from being operated on a public street or highway pursuant to the provisions of the California Vehicle Code, concerning license plates, registration, equipment, safety and related matters.
NUISANCE: Anything that violates the standards provided herein, or any other city, county, state or federal law.
OCCUPANT: Any person living, sleeping or having actual possession of a dwelling.
OPERATOR: Any person who has charge, care or control of a building, structure or parcel of land, or part thereof.
OWNER: The person(s) to whom property tax is assessed on real or personal property, as shown on the last equalized assessment roll of the county, renter(s), tenant(s), lessor(s), and other occupants residing permanently or temporarily on property, or the registered owner of a vehicle.
PERSON: Individual, partnership, joint venture, corporation, association, social club, fraternal organization, trust, estate, receiver, or any other entity.
PREMISES: Any building, legal lot of record, parcel, real estate, or portion of land, whether improved or unimproved, occupied or unoccupied, including adjacent streets, sidewalks, parkways, and parking strips.
PROPERTY: Any real property, including, but not limited to, land, lot, or parcel of land, or any portion thereof held by any owner, and shall include any alley, sidewalk, parkway, or unimproved public easement abutting such real property, lot, or parcel of land.
PUBLIC PROPERTY: Land, buildings, structures, or fixtures that are owned by a public agency. For the purposes of this chapter, public propertydoes not include streets.
RECREATIONAL VEHICLE: Any travel trailer, camper, motor home, or trailer (as defined in Vehicle Code sections 242, 243, and 630, respectively),or any camper shell or boat.
RESIDENTIAL USE: Any property zoned for residential use as provided for in this title.
Sidewalks, parkways, public or private alleyways, and streets adjacent to residential property shall be considered a residential area for purposes of this chapter.
RESIDENTIALLY DEVELOPED PROPERTY: Any property developed with a conforming dwelling unit or legal nonconformingdwelling unit.
RUBBISH: All waste which includes, but is not limited to:
A. Animal or human offal, asphalt, inoperative bicycles and parts, boards, inoperative boats and parts, bottles, boxes, bricks, cans, cartons, cement, cinder blocks, concrete, containers,crates, dirt, doors, equipment, glass, gravel, hoses, lumber, machinery,metal, Ordinance No. 2024-003
paint, pallets, paper, pipe, plaster, rebar, rocks, rubber, sand, siding boards, stucco, tile, windows, wire, wood, and other similar material.
B. Trimmings, clippings and cuttings from lawns, shrubs and trees, and all dead or uprooted grass, sod, shrubs, trees, vegetables and dirt, and firewood piles.
C. Rugs, bedding, furniture, utensils, clothing, toys, appliances, household supplies and equipment.
D. Vehicle bodies, motors, tires, parts nonoperative toys, bicycles, motorcycles, automobiles, mechanical equipment, liquids and other fluids, and machines or parts thereof and accessories.
E. Any other similar item and material of residential, commercial or industrial nature existing in an unusable,inoperative, discarded or abandoned condition.
STRUCTURALLYSOUND: Free of imperfections which affect the intended use of the structure so as not to endanger the health, safety and welfare of the inhabitants or neighbors.
STRUCTURE:Anythingconstructed,built, or planted upon, any edifice or building of any kind, or any piece of work artificiallybuilt up or composed of parts joined togetherin some definite manner, which structure requires location on the ground or is attached to something having a location on the ground, including fences, gates, garages, carports, swimming and wading pools, patios, outdoor areas, paved areas, walks, tennis courts, and similar recreation areas.
SUPPLIED: Paid for, furnishedor provided by or under control of the owner or operator.
SWALE: All unpaved portions of right of way located between the edge of pavementand the property line or an easement located on property adjacentto the right of way line.
TRASH: All small discarded materials from around a premises that can be deposited in an approved trash receptacle for collection and can be burned or otherwise properly handled at an incinerator.
VERMIN: All common harmful or objectionable animals or insects that are difficult to control. (Ord. 2016-003, 8-23-2016)
9-4-3: RESERVED
(Ord. 2016-003, 8-23-2016)
9-4-4: REAL PROPERTY MAINTENANCE STANDARDS AND UNLAWFUL CONDITIONS:
All developed real property in the city shall be maintained at a level not less than the followingstandards visible from the street, sidewalk, or public right of way.
A. Exterior Maintenance Of StructureAnd Premises:
1. The accumulation of weeds, dirt, litter, rubbish or debris on the property to such an extent that it constitutes visual blight is prohibited.
Ordinance No. 2024-003
2. All exterior surfaces of buildings or sheds, excluding roofs, shall be properly maintained and protected from the elements by paint or other protective coating applied in a workmanlike fashion.
3. Painted or protective coatings shall be uniform in color without blemishes throughoutthe exterior.
4. Every foundation,exterior wall, window, roof and all other exterior surfaces shall be free of holes, cracks, breaks, loose or rotted wood and any condition which might allow rain or moisture, vermin, pests or insects to enter the interior portions of the walls or to the occupied spaces of any dwelling, commercial building or structure.
B. Condition Of Structures:
1. Structures shall not be partially destroyed, abandoned, unsecured,or permitted to remain in an unchanged state of partial construction for more than thirty (30) consecutive days.
2. Buildings, windows, doors, walls, fences, trash enclosures,parking areas or other structures,which are significantlycracked or broken, fallen, decayed, dry rotted, warped, deteriorated, defective, defaced, in disrepair or missing components, or which either: a) threaten structural integrity, orb) result in a dilapidated, decaying, disfigured, or partially ruined appearance to such an extent that they contribute to blight or threaten the public health, safety or welfare are prohibited.
3. Exterior building surfaces and roofs shall be maintained free of significant surface cracks, missing materials, warping, dry rot which either threaten the structural integrity, or result in a dilapidated, decaying, disfigured, or partially ruined appearance.
4. Roofs shall be structurally sound, watertight and shall prevent rainwater or moisture from entering the walls, ceilings or any other portion of the dwelling, commercial building or structure. All building roofs and gutters shall be maintained in good repair and in good condition to prevent deterioration. In the event a roof shingle or tile is replaced, the replacement shingle or tile shall be of the closest possible color and shade to the existing roofing shingles or tiles.
C. Use Of Tarps: Tarps for roof and building repairs shall be prohibited, except for emergency repairs. Additionally, the use of tarps for temporary canopies, enclosures, and/or awnings is prohibited in any front yard area visible from any public right of way.
D. Graffiti: Graffiti abatement shall be pursuantto title 5. chapter 12 of this code.
E. Lighting: All exterior light fixtures shall be maintained in good working order free of broken lamps, lenses, and light bulbs. Furthermore, the structural integrity of all supporting poles and mounting fixtures shall be maintained. All insulation and connections shall be intact and free of exposed wire.
F. Windows: Broken windows, glass doors, and the use of materials other than glass as a replacementor covering of windowpanesare prohibited.
1. Screening: All window and glass door screens shall be maintained free of substantial tears, rips, and holes visible from any public right of way.
Ordinance No. 2024-003
G. Signs: All signage shall be maintained in the originally permitted and constructed condition as required by chapter 14, "Signs And OutdoorAdvertising", of this title.
H. Walls And Fences:
1. Fences, exterior walls, exterior doors, exterior windows, decorative walls, perimeter hedges, trellis, and screen enclosures shall be maintained in a good state of repair.
2. Any fencing required as a condition of any permit or developmentapproval or included in the project plans or application, as approved by the city, including, but not limited to, those fences, which abut major thoroughfares,sound walls, or those fences required by a use permit, shall be maintained in a good state of repair.
3. Any required fence must be maintained consistent with and/or reasonablymatch the materials to be replaced or which were used when the fence was originally constructed.
4. Improperly fenced, unsanitary or otherwise hazardous pools, ponds and excavations shall be repaired or removed in a reasonable manner and time period to ensure public health.
5. Fences which are leaning or listing more than fifteen degrees (15º) from perpendicularor are in danger of collapse due to the elements, pest infestation, dry rot, lack of maintenance or other damage, shall be repaired or replaced in a reasonable manner and time period to protect the public health and safety.
6. All walls, retaining and crib walls, and fences abutting public rights of way (including alleys), and trash enclosures, shall be maintained free of significant surface cracks, dry rot, warping, deterioration, leaning, missing panels or blocks, which either threaten the structural integrity or result in a dilapidated, decaying, disfigured, or partially ruined appearance.
7. Pool barrier fencing and gates for swimming pools and spas shall be maintained as required by the California building code. Swimming pools and spas shall not contain unfilteredor stagnantwater.
I. Trash ContainerAreas:
1. Trash bins, trash cans or dumpsters shall be kept within a trash enclosure, or screened from public view to the maximum extent feasible. Trash bins shall also be maintained free of graffiti.
2. Overflowingtrash bins or dumpstersdue to an inadequate number of bins and/or request for service from the trash hauler are prohibited. Use of commercial trash bins for residential uses in the one-family residential zone district is prohibited, except for the purpose of removing construction and demolition materials related to construction activities.
3. All trash container areas shall be maintained in a manner which prevents the accumulation of trash, debris, rubbish and litter by providing sufficient dumpsters and sufficient frequency of trash pick ups. In the case of single-family residences, trash containers shall be set out no earlier than four o'clock (4:00) P.M. the day before the designated pick up and left out no longer than eight o'clock (8:00) P.M. the designated day of pick up.
Ordinance No. 2024-003
4. All new dumpsters,existing dumpsters, and other containers shall be constructed and shall be located and maintained in such a manner to provide screening from public view.
5. Trash containers in commercial areas shall be maintained and operated in such a manner as to not impede traffic due to the doors being allowed to swing open for an extended period of time.
J. Accumulation Of StagnantWater:
1. No person owning, operating or having possession of any propertywithin the city shall allow the accumulation of stagnantwater in excess of two inches (2") for a period of twenty four (24) or more hours following the cessation of the most recent measurable rainfall.
2. On site drainage improvements shall be maintained in order to prevent deterioration, disrepair, and ineffectiveness.
3. Roofs or other structures or improvementsdesigned for the retention of water are exempt from this section but shall be subject to the design capabilities of said roof, structure or improvementor other applicable requirements.
K. Parking And Paved Areas:
1. All parking and paved areas shall be maintained in a good state of repair, which shall include proper drainage to prevent the accumulation of pools of water, and the correction and removal of all ruts, potholes, and broken pavement. In parking areas, the parking spaces shall be maintained in a manner, which clearly delineates said spaces and shall include maintenance of parking space striping, directional markings, stop bars, or other indicators. Wheel stops, curbing and any other paved surfaces shall be free of breaks, cracks and other deficiencies.
2. This section shall apply to all paved area, including, but not limited to, parking areas and ingress or egress driveways.Additionally, a building permit shall be required for all resurfacing, resealing, restriping, replacementof commercial parking areas.
3. The parking of vehicles on lawns, vegetation, dirt, or any other surfaces which are not paved and graded to support, eliminate dust or any mud, and drained as to dispose of all surface water, is not allowable.
4. Parking areas, private alleys, driveways,public sidewalks, and walkwaysshall be maintained free of potholes, cracks, breaks, lifting, and other deteriorated conditions.
L. Landscaping:
1. Parkway Landscaping: The public parkway shall be landscaped and maintained by the adjacent property owner(s). The landscaping shall be maintained in a healthy condition free of dying, dead, diseased, decayed, discarded and/or overgrown vegetation.
2. Prohibited Materials: Rubbish, brush, weeds, broken glass, stumps, roots, obnoxious growths, filth, garbage, trash and debris shall not be permitted on any premises. This subsection shall not apply to garbage, trash and debris, placed in approved receptacles for appropriate collection and removal.
3. Hazardous Materials: Dead and/or dying trees and limbs or other natural growth, which constitute a fire hazard, or health or safety hazard to persons or property, are prohibited, and shall be removed and replaced.
Ordinance No. 2024-003
4. Ground Surface Hazards: Ground surface hazards such as holes, excavations, breaks, projections, obstructions and excretion of pets and other animals on paths, walks, driveways, parking lots and parking areas, and other portions of the premises are prohibited, and shall be reasonablyrepaired or removed.
M. Landscaping Maintenance Requirements:
1. Owner Responsible For Maintenance: The owner shall be responsible for the maintenance of all landscaping on the premises. This includes maintaining abutting rights of way, swales, and canal banks. Landscaping shall be maintained in a good condition to present a healthy,neat and orderly appearance so as not to detract from the appearance of the general area. Landscaping shall be maintained such that it will not cause property damage and public safety hazards, including removal of living, dead or decaying plant material, removal of low hanging branches below twelve feet (12') above grade and those obstructingstreet lighting.
2. Maintenance Of Irrigation Systems: Irrigation systems shall be maintained to eliminate water loss due to damaged, missing or improperly operating sprinkler heads, emitters, pipes and all other portions of the irrigation system and shall not be installed or operated to place water on roads.
N. Maintenance Of Swales (Bioretention):
1. Maintenance Responsibility: It shall be the responsibility of the property owner to maintain the swale area to the following minimum standards:
a. Free of debris; and
b. Grass and/or weeds cut no higher than six inches (6") and edged away from the sidewalk and roadway; and
2. Shrubs And Bushes: Shrubs and bushes shall be kept trimmed to a height not to exceed four feet (4'), or as otherwise necessary to provide unrestricted visibility at drivewaysand street intersections; and
3. Overhanging Branches: Overhanging branches of trees shall be pruned to a height of at least twelve feet (12') above grade; and
4. Prohibited Species: The swale shall be kept free and clear of prohibited species, as set forth in low impact developmentstandards (resolution 2016-008, adopted January 26, 2016).
O. Maintenance Of Canal Rights Of Way Or Easements: No owner or any person in their employ or under their control shall deposit any rubbish, filth, construction debris, litter, garbage, grass cuttings, or poisonous or deleterious substance, or substances liable to affect the health,safety and welfare of persons or fish, in any ponding basin, canal, ditch, or other waterwayswithin the city.
P. Determination Of Need For Correction: Structures and premises constituting a blighting influence will be considered deficient. A blighting influenceon the surrounding neighborhood in violation of this chapter shall exist when a deficiency or combination of deficiencies represents more than twenty five percent (25%) of the area on any wall, exterior premises, structure, roof or paved surface as viewed from any single vantage point off the property.
Ordinance No. 2024-003
Q. Repair And Installation: Repairs and installation shall be made to comply with the applicable codes and standards of the city of Reedley and the California uniformbuilding code, the provisions contained herein and/or a city approved site plan. All work shall proceed in a timely fashion and be done in a workmanlike manner. (Ord. 2016-003, 8-23- 2016)
9-4-5: STAN DARDS FOR VACANT REAL PROPERTY:
A. Property Secured And Maintained: All undeveloped,fallow or vacant real property in the city shall be secured and maintained at a level not less than the followingstandards during the time period that such property remains vacant:
1. All structures,equipment,walls, and fencing on the property shall be maintained free of graffiti.
2. All landscaped, concrete, dirt or paved open areas on the real property and adjoining public parkway shall be kept clear of rubbish, litter, and weeds.
3. Unless required to protect public health and safety, the installation of temporary fencing is not mandated. No temporary fence shall be installed without obtaining a city permit through the community developmentdepartment, which shall review the fence location and proposed material(s). Chainlink fencing shall only be used in conjunction with an opaque screening material.
4. The responsible person or entity shall maintain the fence in good repair and condition. If the fence is not maintained properly, the enforcement officer may order its removal and replacement. The fence may be properlyposted with "no trespassing" signs, and the fence shall be kept clear of all other signs, except lawfullyinstalled signs.
B. Boarded Up Structures:
1. The city recognizes that from time to time it may be necessary to secure vacant property and structures because of abandonment, disrepair, public hazard or natural disaster. Unsecured vacant property and structures can lead to vandalism problems, occupancy safety problems and appearance problems. The city hereby creates the followingstandards for securing vacant structures:
a. Vacant Structures Secured: Vacant structures may be secured via boarding up windows, doors, or other openings when deemed necessary by or otherwise approved by the fire chief, enforcement officer, building official, or in order to maintain the safety of persons or property. All boards visible from the structure's exterior shall be painted to reasonablymatch the structure's exterior.
b. Enforcement Officer Review: Any means of securing property including crime prevention devices shall be subjectto review by the enforcement officer for safety. Safety bars, grating, or other similar apparatus shall be designed and installed pursuantto the California building code.
c. Repairs: The owner or occupant of an occupied structure shall promptly repair any broken door or window so that a temporaryboarded up condition is limited. Any such repair, other than in the case of a natural disaster, shall be made within ten (1 O) days, unless the necessary repairs cannot be performed within ten (10) days, in which case the repairs shall be diligentlypursued until completion at the earliest reasonable time.
Ordinance No. 2024-003
d. Security Lighting: All structures which could be used for human habitation shall have an operable and effective exterior security lighting system. The front and rear yards shall each be illuminated with a minimum of one light. The lighting shall be capable of illuminating the structure's exterior so as to be visible from the street or alley from dusk to dawn, but the lights shall be shielded to avoid lighting adjacent properties. (Ord. 2016- 003, 8-23-2016)
9-4-6: RESERVED
9-4-7: INOPERABLE,WRECKED, DISMANTLED OR ABANDONED VEHICLES:
A. Abandoned Vehicles Prohibited: It is unlawful for any person to keep, maintain, or deposit on any property in the city any abandoned motor vehicle or any inoperative vehicle as defined in the California Vehicle Code, or any part thereof, unless such vehicle or part is completelyenclosed within a structure in a lawful manner or is not visible from the street or from other public or private property, or unless such vehicle or part is stored or parked in a lawful manner on private property in connection with the business of a licensed dismantler, licensed vehicle dealer, or junkyard.
B. Vehicles, Including Motor Homes, Trailers, And Boats: No vehicle, including a recreational vehicle, motor home, camper, camper shell, boat, or trailer, shall be parked or stored outside of a garage or carport on an unpaved or unimproved surface on any property in the city.
C. Vehicle Parts: The keeping, storage, depositing, or accumulation on the premises of motor vehicle part(s) or scrap, including tires, which is visible at ground level from a public street, alley or from adjoining property is prohibited, except personal use items allowed by city review or permit in appropriate commercial or industrial zones. (Ord. 2016-003, 8- 23-2016)
9-4-8: RESPONSIBILITY FOR PROPERTY MAINTENANCE:
A. The owner, occupant, lessee, or tenant of any property within the city shall be responsible for the maintenance of property and premises in a manner consistentwith the provisions of this chapter and this code.
B. In order to enforce the provisions of this chapter, when the city manager or his/her duly authorized agents and representatives find and determine that the severity of the violation warrants immediate action, he/she may clean up or abate violation thereof. The cost of such cleanup or abatement may be recovered by the city using any legal remedies available to the city. Such cleanup or abatement shall not relieve the person of responsibility for the abatement costs or other action which may be taken by the city manager or his/her duly authorized agents and representatives,including, but not limited to, liability for any violations of this chapter or any other applicable provisions of state law and local ordinances. (Ord. 2016-003, 8-23-2016)
9-4-9: ABATEMENT PROCEDURES:
Ordinance No. 2024-003
A. Procedure To Issue Citations: The city of Reedley shall have jurisdiction to issue citations in which violations of this chapter are alleged. In the city's effort to safeguard life, health, and public welfare in keeping with the character of the city, the city shall remedy such allegations using the procedures set forth in title 1. chapter 12, "Administrative Citations", of this code. These remedies include the procedures for issuance of administrative citations (section 1-12-4 et seq., of this code) and fines assessed (section 1-12-8 et seq., of this code). These remedies shall be in addition to all other legal remedies, criminal or civil, which may be pursued by the city to address any public nuisance.
B. Right Of Entry: The enforcement officer may enter any property or premises at all times to perform any duty imposed upon him/her by this chapter whenever the enforcement officer has cause to believe a violation of provisions of this chapter is occurring, provided that:
1. The enforcementofficer shall present proper credentials, state the reason for entry, and request entry from the owner or occupant.
2. If entry is denied, he/she may seek a court ordered inspection warrant if cause exists pursuantto the Code Of Civil Procedure section 1822.50 et seq.
3. If entry is denied, the enforcement officer shall have recourse to every remedy provided by law to secure entry.
4. The enforcement officer shall make a reasonable effort to locate the owner of unoccupied property or premises, inform the owner of the reasons for entry, and request entry.
5. The enforcement officer shall not enter any property or premises in the absence of permission to enter, unless an inspection warrant has been issued by a court of competentjurisdiction. (Ord. 2016-003, 8-23-2016)
9-4-10: REMEDIES OF PRIVATE PARTIES:
The provisions of this chapter shall in no way adversely affect the right of the owner, lessee or occupant of any such lot to recover all costs and expenses required by this chapter from any person causing such nuisance or failure to maintain private property. (Ord. 2016-003, 8-23-2016)
9-4-11: SUMMARY ABATEMENT:
Nothing in this chapter shall be deemed to preventthe city council from directing the city attorney to commence a civil or criminal proceeding to abate a public nuisance under applicable civil or penal code provisions as an alternative to the proceedings set forth in this chapter, or initiating summary abatement of any nuisance as follows:
A. The city may immediately abate any nuisance or violation of this chapterthat poses a clear and imminent danger to, or requires immediate action to prevent or mitigate the Ordinance No. 2024-003
loss or impairment of life, health, property, or essential public services. The city may perform this abatement without providing prior notice or hearing to the owner or occupier of the offending premises. Such summary abatement may proceed only upon the authorization of the city manager or his/her designee. The abatement shall include all actions necessary to secure the premises to preventfurther occurrences of the nuisance.
B. The owner and/or occupier of the premises or other responsible party creating, causing, allowing, permitting, committing, or maintaining the nuisance shall be subjectto any abatement costs, enforcement costs, administrative fines and penalties imposed or incurred by the city pursuantto this chapter. In any action or proceeding in which the City elects, at the initiation of that individual action or proceeding, to recover attorneys' fees under this Section, attorneys'fees will be recovered by the prevailing party.
C. Any abatement actions performed by the city pursuantto this Chapter shall be at the expense of the owner and/or occupier of the premises or other responsible party creating, causing, allowing, permitting, committing, or maintaining the nuisance. The city shall recover its expenses pursuantto the procedures contained in section 4-2-13 of this code, or any other applicable provision of the law.
D. As soon as practicable following completion of the abatement, the Community Development Director or other designated city official shall issue a notice of violation and/or notice and order in accordance with this chapter. Persons receiving such notice shall be entitled to all hearing rights as provided herein. (Ord. 2016-003, 8-23-2016; amd.
Ord. 2023-006, 6-13-2023)
9-4-12: SEVERABILITY:
If any section, sentence, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The council herebydeclares that it would have passed this chapter and adopted this chapterand each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. (Ord. 2016-003, 8-23-2016)
II. Chapter 16 of Title 10 shall be deleted.
Ill. This Ordinance shall take effect thirtydays from the date of approval.
IV. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted as required by law.
I
hereby certify that the foregoing Ordinance No. 2024-003 was introduced on August 13, 2024, and adopted at a regular meeting of the City Council of the City of Reedley held on September 1 O, 2024, by the following vote:
Ordinance No. 2024-003
AYES:
NOES:
ABSENT:
Anita Betancourt, Mayor
ATTEST:
Ruthie Greenwood, City Clerk
Ordinance No. 2024-003
REEDLEY CITY COUNCIL
!ZI Consent
D RegularItem
D Workshop
D Closed Session
D Public Hearing
ITEM NO:
DATE: September 10, 2024
TITLE: APPROVE RESOLUTION NO. 2024-066 OF THE CITY COUNCIL OF THE
CITY OF REEDLEY, CALIFORNIA, AUTHORIZING CERTAIN PERSONNEL
TO SIGN PAYMENT CHECKS DRAWN ON THE CITY TREASURY AS
REQUIRED BY SECTION 1-9A-3 OF THE REEDLEY MUNICIPAL CODE SUBMITTED: Paul A. Melikian, Assistant City Manager
APPROVED: Nicole R. Zieba, City ManagervyB
RECOMMENDATION
It is recommended that the City Council approve the attached resolution re-authorizing certain City personnel, namely, the City Manager, Assistant City Manager, and Accounting Manager, as authorized signers on City payment checks as required by Reedley Municipal Code Section 1-9A-3.
EXECUTIVE SUMMARY
The City of Reedley officials authorized to sign payment checks is being amended to reflect operational requirements. Currently the Mayor, City Manager, Assistant City Manager, and Accounting Manager are the only officials hereby authorized to sign City checks. However, in practice, the Mayor does not ever sign checks, though the City has to keep an updated signature card on file with the bank every time there is a transition. This update would simplify ongoing compliance responsibilities to only require signature cards for City officials who in practice, are required to sign payment checks. Staff will continue providing the weekly check register detail (register of warrants) to the City Council for review.
Section 1-9A-3 of the Reedley Municipal Code states: "All demands when reviewed, approved, and allowed, and all salaries, shall be paid by a check or electronic funds transfer drawn on the city treasury or authorized custodian account. Personnel authorized to siqn checks or authorize electronic funds transfers shall be established by resolution. Facsimile signatures on checks are allowed, provided that the register of warrants identifying each check is manually signed, in advance, by those authorized to sign checks. Custody and control of the signature stamp is the responsibility of the director of finance. In addition, checks for any purpose other than payroll shall require the manual signature of at least one authorized city official."
FISCAL IMPACT
There is no financial impact or adverse effect on internal controls because of making this change.
ATTACHMENTS
Resolution 2024-066
RESOLUTION NO. 2024-066
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY,
CALIFORNIA,AUTHORIZING CERT AIN PERSONNEL TO SIGN PAYMENT CHECKS DRAWN ON THE CITY TREASURY AS REQUIREDBY SECTION 1-9A-3
OF THE REEDLEY MUNICIPAL CODE
WHEREAS, SECTION 1-9A-3 of the Reedley Municipal Code states: "All demands when reviewed, approved, and allowed, and all salaries, shall be paid by a check or electronic funds transfer drawn on the city treasury or authorized custodian account. Personnel authorized to sign checks or authorize electronic funds transfers shall be established by resolution. Facsimile signatures on checks are allowed, provided that the register of warrants identifyingeach check is manually signed, in advance, by those authorized to sign checks. Custody and control of the signature stamp is the responsibility of the director of finance. In addition, checks for any purpose other than payroll shall require the manual signature of at least one authorized city official."; and WHEREAS, the personnel authorized to sign checks needs to be amended to reflect title changes and operational requirements;
NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Reedley in the exercise of its discretion, as follows:
Section 1. The City Manager, Assistant City Manager,and Accounting Manager shall be the only personnel hereby authorized to sign City checks.
Section 2. This Resolution replaces Resolution 2021-002, adopted January 12, 2021, and shall take effect immediately from and after its adoption.
PASSED AND ADOPTED by the City Council for the City of Reedley, California, at a regular meeting thereof on
10th day of September 2024, by the followingvote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Anita Betancourt, Mayor
ATTEST:
Ruthie Greenwood, City Clerk
lo
MINUTES
REEDLEY AIRPORT COMMISSIONMEETING
Thursday, May 16, 2024 at 4:00 p.m.
1. CALL TO ORDER
A meeting of the Reedley Airport Commission was held at the Reedley Community Center, 100 N. East Avenue, Reedley, California and called to order by Carl Smith at 3:55 p.m.
2. ROLL CALL AND INTRODUCTION OF GUESTS
A. Commissioners Present: Carl Smith, Chairperson; Butch Agrifoglio; Vice Chairperson, AnthonyJewell, Joseph Oldham
B. Commissioners Absent: Matt Cochran
C. Staff Present: Sarah Reid, Airport Manager; Kayla Cheney, Administrative Assistant
D. Others Present: Michael Tomazin, Gary Schales (arrived 4:05pm)
3. AGENDA APPROVAL - ADDITIONS AND/OR DELETIONS
A. Motion by Commissioner Smith, seconded by Commissioner Agrifoglio to approve the May 16, 2024 agenda. Motion carried.
4. APPROVAL OF MINUTES
A. Motion by Commissioner Oldham, seconded by Commissioner Smith to approve the March 14, 2024 Airport Commission minutes. Motion carried.
5. PUBLIC DISCUSSION - None
6. OLD BUSINESS
A. Airport BBQ -Reid shared the date has been selected as October 5, 2024 however we are still in need of a public speaker for this event. Commissioner Smith stated Commissioner Oldham would be a great guest speaker. After further discussion, Commissioner Joseph Oldham shared he can be the guest speaker for the October 5, annual airport BBQ. Reid shared Cheney will email Commissioner Oldham asking for a bio and picture.
7. NEW BUSINESS
A. Future Events at the airport, Michael Tomazln- Michael Tomazin shared he is interested in hosting a morning event to promote the Reedley Municipal Airport, providing a free breakfast on June 22, 2024 in Tomazin hangar 4.
Commissioner Oldham may bring the electric plane over. Once Tomazin provides his flyer, this can be posted to the City of Reedley Facebook page to help advertise the event.
Tomazin shared in 2025 in the spring Tomazin would like to host a mountain flying seminar for ten pilots at the airport, which would be a commercial adventure. Tomazin shared this is when pilots do not want to cross the mountain, this helps pilots have the proper training to safely cross the mountain. This seminar would be $1,000 per pilot. This seminar would be two days, on the second morning, as long as weather permits, all pilots will go together and cross the Sierra Nevada mountains. Tomazin shared he will provide proper insurance, the whole program timeline, as well as the date to -
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MINUTES
REEDLEY AIRPORT COMMISSIONMEETING
Thursday, May 16, 2024 at 4:00 p.m.
further discuss the seminar. Commissioner Smith shared he is in favor of this seminar. Commissioner Oldham shared he is in favor; this is a great training opportunity. Pilots need to be trained to cross over the Sierra Nevada mountains, this is a very dangerous area to fly, but with proper training it is safe.
8. AIRPORT MANAGER REPORT
A. Capital Improvements - Michael Tomazin shared he tried sourcing the panels for the skylights for six months, staff tried sourcing the panels for three months.
Tomazin shared it was best to manufacture the panels himself. The first panel will go up, which will be a test run. Reid shared there is a total of 52 skylights which are starting to fail. Reid shared staff went to the manufacture of the panels, and they couldn't get the profile to replace the skylights. The skylights are very expensive to replace. Staff appreciates that Tomazin is helping to find a solution, considering this has not been an easy project.
Reid shared the City is doing a City wide camera project with City properties that have high value items. There are currentlyno cameras on the north end of the airport, cameras will be added to this area, and throughoutthe airport. Reid shared Reedley police department and City staff will have access to these cameras. Reid shared the camera system going up, is a very suffocated and an expensive system. Commissioner Smith shared his concern in regards to the megapixels, sharing the megapixels should be between 30-60 megapixels, Reid shared she will look into this and ask the question.
The front entrance of the airport has construction going on. A water line is going in, to get potable water for individuals to drink and use. The trench will be filled before the RC event takes place.
Reid shared some fence repairs will be taking place as well as changing out the pass-through gate which will be replaced with a digital pad.
The FAA approved the fuel farm. The City will front the money for the design, so the project is not delayed. The FAA is currentlylooking at the scope of work, unfortunatelynothing can be done till the scope of work is approved by the FAA.
Reid shared the floors in the restroom in the pilots' lounge, and justoutside the pilots' lounge have started to lift up. Reid shared there is money in the beautification fund. Commissioner Smith moved to replace the floors in the bathroom using the beautification fund, this was seconded by Commissioner Oldham. Motion carried. Reid shared staff will get quotes on these two areas.
B. Weed Control - Paul Huebert with BMX is currentlydiscing the airport. Reid shared she reached out to Huebert in regards to the twenty acres next to the airport, the old orange field. Huebert will disc this area as well. -2-
MINUTES
REEDLEY AIRPORT COMMISSIONMEETING
Thursday,May 16, 2024 at 4:00 p.m.
C. Landscaping/Parking - The RC club came out with twelve people. They cleaned up the transient parking area, the taxiway, and the runway.
D. Public Relations/Airport Promotion - The last flyer went out in May. Reid is pushing out the NOTOM for the RC event, as well as the letter to the tenants for the RC Event.
E. BMX Track - none
F. Hangar Vacancies-One vacancy is coming up in December. The tenant does not have a plane. He will be vacating the hangar in December. Ito's land lease is expiring, these hangars will become the City's' property as of November.
These tenants will be converted over to the City agreement, if intended to stay in their hangar.
G. Electric Planes/Charging Station - Commissioner Oldham shared the petition was granted from the FAA back in January. Oldham shared he is currently working with a distributor in Utah to get two new sets of batteries for two aircrafts to get these operating.
H. Reedley College - Gary Schales shared Reedley College would like some light next to the trailer. Ideally between the fence (off of Frankwood) and the trailer.
Schales is hoping this is something the City can fund for the College. Reid shared staff was looking into upgrading the lightening on the hangars to LED, this could potentially make a huge difference.
Staff is working on a ribbon cutting in July for the trailer, and possibly the restroom. Bids for the restroom came in double the amount, the bids will be recommended to City Council to reject all bids. As of June 4th the restroom is the City's. This project will go back out to bid in June, after tightening up on some language.
9. ADJOURNMENT
As there was no further business to discuss, it was moved by Commissioner Oldham, seconded by Commissioner Agrifoglio to adjourn at 4:47 p.m.
Carl Smith, Chairperson sfoli
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Minutes
COMMUNITYSERVICES COMMISSION
Thursday,June 27, 2024
A regularmeeting of the CommunityServices Commission was called to order at 4:31 p.m. by Darren Minami, Chairperson, in the Redwood Room at the Reedley Community 100 N. East Ave, Reedley, California 93654.
1. ROLL CALL AND INTRODUCTION OF GUESTS
A. Commissioners Present: Darren Minami Chairperson; Shirley Ito Vice Chairperson;David Carter, Jenny Peters, Angelina Rodriguez,Maria Rodriguez
B. Commissioners Absent: none
C. Youth Representatives:Absent- Hemza Khalid
D. Staff Present: Sarah Reid, CommunityServices Director; Kayla Cheney, Administrative Assistant; Taylor Cardenas, Recreation Coordinator.
E. Others: Adelina Villarreal and GuadalupeRodriguez-Martinez
2. AGENDA APPROVAL
It was moved by Commissioner M. Rodriguez, seconded by Commissioner Carter that the agenda of June 27, 2024 be approved. The motion carried.
3. APPROVAL OF MINUTES
It was moved by Commissioner Ito, seconded by Commissioner Peters that the minutes of January 25, 2024 be approved. The motion carried.
4. PRESENTATION
July is Parks and Recreation month, Reid shared the Expanded Leaming Program made the Commission bags with their cricket machine which read "Parks Make Life Better".
Taylor Cardenas shared her role as the Recreation Coordinatorand the programs she oversees. Cardenas shared she is the commissioner for the ReedleyJr. Giants league. Cardenas stated Jr. Giants is a free program that is sponsored by the Giants communityfund. The City of Reedley has been partnered with Jr. Giants since 2004. This year there are 322 players registered.
This program is completelyfree for kids from the ages of 5-13. Jr. Giants provides anything the kids may need from hats, jersey, pants, glovesto other incentivessuch as a backpack if the child finishes their reading program.
Cardenas also shared she started a home run derby this year with adult softball, which had 1 O participants. Pickleball is in full force, on Wednesday and Saturday from 7:30-10:30am at Reedley High School.
5. PUBLIC DISCUSSION - None.
6. ORAL AND WRITTEN COMMUNICATIONS
Reid shared with the Commission the July-SeptemberRecreation program flyer.
Staff is currently finishing up the July-SeptemberSenior Program flyer. The flyer summarizes the activities currentlygoing on and upcoming programs to be aware of.
Page I of 4 .
Minutes
COMMUNITYSERVICES COMMISSION
Thursday,June 27, 2024
7. NEW BUSINESS
A. Recognitionof OutgoingYouth RepresentativesCommissioner Minami expressed his appreciation for the outgoing youth representativeHemza Khalid on behalf of the CommunityServices Commission.
A City of Reedley coffee mug and Starbucks gift card will be given to the youth representativeto recognize Khalid efforts throughoutthe year.
B. Review of Applications and Selection of 2024-25 Youth RepresentativesCommissioner Miami shared three applications were received, however two representativesare present. Commissioners were advised to look over the youth representativeapplications. Reid shared with the Commission, the one representativewho is absent, did call Cheneyand informed her there was a conflict and he was unable to attend the scheduled meeting. The representative did ask for another option, however at the time staff was informed, it was too late to set up a secondaryoption. Adelina Villarreal introduced herself and shared she is currently attending Reedley Middle College high school and will be a senior this year. GuadalupeRodriguez-Martinezis currently attending Reedley high school as an incoming junior. After further discussion there was motion from Commissioner Peters to accept the youth representativeapplication for Adelina Villarreal and Guadalupe Rodriguez-Martinezas the 2024-25 Community Services youth representatives,this was seconded by Commissioner Carter. This motion carried.
8. YOUTH REPRESENTATIVE REPORTS-None.
9. STAFF REPORT
Reid shared the floors at the communitycenter are just about done. There is one area in the California room that needs to be redone. Also, the baseboards in every room still need to be installed. Next year in the budget is to completethe four bathrooms at the communitycenter.
River City Theater Companyagreementcomes up with the City at the end of October. River City Theater rents the Opera house from the City. Reid met with the board president and treasurer, and this is the first time in a long time they are asking for major changesto the agreement. The main conversation is River City is wanting to reserve the Opera House from the City. In the Past River City held the master calendar, and the City if needed would reserve specific days from River City. River City is interested in renting the building when they have scheduled shows, but not be held responsible for the master calendar,which will mean they will not operate in the building full time like they have been. The intention with the City is to work with River City, as they are the best fit for the building and space.
The nonprofit ReedleyParks and Recreation foundation is one member short.
Jean Clemons term has come to an end, and she elected to not renew her
Minutes
COMMUNITYSERVICES COMMISSION
Thursday,June 27, 2024
membership. Reid shared if a Commissioner has interest, or anyone may know someone who is interested, please share this information with Reid.
Mark your calendars for Friday, August 9 at 8:00am, there will be a ribbon cutting at the airport for the ReedleyCollege Flight Science program.
CommissionerA. Rodriguezasked for an update on the spacenet at Citizens Park. Reid shared the spacenethas a shipped date of July 19. The installerwas contacted and has tentativelyscheduled the install for the first week of August.
The date can't be confirmed until the equipment is received by the City.
Reid shared a request from a Commissioner came in discuss accessibility in playground.Reid shared there is a difference between ADA accessible and inclusive playgroundspaces. Madera has an inclusive playgroundwhich was built in 2016, which is wheelchair accessible. Kerman playgroundwas built in 2017, the playgroundis more ground level. Visalia is the most recent inclusive playgroundin the area which was built in January 2024. Inclusive playgrounds are not justfor wheelchairs. They are for everyone and all ages, and abilities.
There is a lot of intentional design that goes on when designing an inclusive playground.At this time Reedleydoes not have an inclusive playgroundplanned
10. COMMISSIONERCOMMENTS
CommissionerMinami shared Jr. Giants is a great program, and he hears a lot of great feedback from parents. Commissioner Ito shared pickleball is going great.
CommissionerIto also shared the senior activities she participates in are going well, and continue to be enjoyable. Commission A. Rodriguezshared she has participated in the farmers market as well as counting participants on the parkwayfor the Parks and Recreation Foundation which she enjoyed.
Commissioner M. Rodriguezvolunteered for the princess tea party.
Commissioner M. Rodriguez has been busy runningand training for a half marathon. Commissioner Peters has participated in the farmers market as well as the street eats. Commissioner Peters has been a part of the ReedleyPolice DepartmentCitizens Academy, which has been so exciting and fun, stated Peters she advises anyone who may be interested to participate in this academy.
CommissionerCarter is participating in rails for trails which is a walking group which meets every Sunday.Commissioner Carter shared he is still interested in starting a senior walking group. Commissioner Carter shared he received the City newsletter through email which he was excited to see, Commissioner Carter shared this is a great way to get information out to the public.
Minutes
COMMUNITYSERVICES COMMISSION
Thursday,June 27, 2024
11. ADJOURNMENT
As there was no further business to discuss, the meeting was adjourned at 5:55p.m.
Respectfullysubmitted,
dministrativeAssistant
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munity SeNices Director
Page4 of 4
September 10, 2024
California Public Employees Retirement System
CalPERS
Annual Informational Presentation
“I put my heart and
my soul into my work,
and have lost my mind
in the process.”
- Vincent van Gogh
“It is looking at things for a long
time that ripens you and gives
you a deeper meaning. ”
- Vincent Van Gogh
CalPERS Membership
5 6
7 Functions In Pension Decision-Making
CalPERS Board
• Fiduciary obligation
• Set risk tolerance
• Set investment asset
allocation
Legislature
• Set menu of pension benefit
formulas
• Make & change pension laws
• Benefit design changes
Employers
• Select pension formulas
• Add optional provisions
• Set salaries
• Make contributions
Courts
• Rule on legal questions of
pension law
Employees
• Make contributions
• Select employer
• Collectively bargain salary
and (optional) cost sharing
CalPERS Staff
• Administer pensions
• Calculate pension costs
• Effectuate investment strategy
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
4.7% 8.0%
30-yr Annualized
Return
6.3%
5-yr Annualized
Return
Defined Benefit and Pensionable Compensation
• In a defined benefit retirement plan, the employee receives a benefit determined by a set formula based upon their plan. Ex. 2% @ 55 • CalPERS uses the years of service, age at retirement, and highest average annual compensation during any consecutive 36-month period of employment to determine the retirement allowance
• Not all employee compensation is considered pensionable. Additionally, the 2012 pension reform act established unique differences in what qualifies as pensionable compensation between Classic plans and PEPRA plans • Example: Uniform Allowance Stipend is pensionable under Classic plans but not PEPRA plans
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
8.0%
30-yr Annualized
Return
6.3%
5-yr Annualized
Return
Public Employees’ Pension Reform Act PEPRA
• PEPRA was passed in 2012 as a positive step to help agencies better manage future pension costs. It applies to employees hired after Dec 31, 2012 who don’t have previous CalPERS service
• PEPRA’s lower benefit formulas and compensation limits apply only to employees hired after January 1, 2013. This provides material long-term savings as new employees are hired and then ultimately retire • Legacy employees enrolled in plans on or before Dec 31, 2012 are considered CLASSIC members. Benefit formulas for CLASSIC plans are higher but new enrollment ceased with the passage of PEPRA • CalPERS assumes all CLASSIC members will be retired by the year 2038 - 14 more years!
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
4.7% 8.0%
30-yr Annualized
Return
6.3%
5-yr Annualized
Return
Reedley is…
71% PEPRA
29% Classic
&
100% Awesome
Retirement Plan Funding Components
Total Pension Funding
Employee Contribution
via Payroll
CalPERS Investment
Earnings
Employees own their contributions. Employer Contributions are used to fund the ongoing retirement benefit costs for retired employees within each of the City’s retirement plans Employer Contribution
13 • Employee Contributions are deducted from payroll checks • PEPRA members are required to contribute at least 50% of the total annual normal cost of their pension benefit
• Decreases or increases to the PEPRA member contribution rate occur if the current total normal cost rate changes more than 1.0%
• In July 2023, Reedley PEPRA employee contribution rates increased:
• ↑1.0% for Miscellaneous, to 7.75%
• ↑0.75% for Sworn, to 13.75%
• No change effective July 2024, but July 2025 has yet to be determined • CLASSIC Miscellaneous employees contribute 7.0% of pensionable wages • CLASSIC Sworn employees contribute 9.0% of pensionable wages Employee Contribution Component
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
6.3% 8.0%
5-yr Annualized
Return
Investment Earnings Component: CalPERS “Pension Buck”
• Each year CalPERS updates the “Pension Buck” providing an easy representation of the current funding source that ultimately provides payment to CalPERS retirees • Employers have no input on CalPERS investment portfolio components • Investment earnings are subject to economic conditions, market volatility and poor fiscal management
• When the CalPERS investment earnings shrink, the Employer Contributions must increase to cover the “gap” between employee contributions and CalPERS investments Employer Contribution Component
Total Employer Costs
Normal Cost
(% of Payroll)
Mandatory Annual UAL
Amortization Payment
($ Amount)
2024-25 Employer Contribution = $3,494,930
ADP Additional
Discretionary Payment
($ Amount)
8.5 20-yr Annualized
Return
8.0%
5-yr Annualized
Return
CalPERS Annual Actuarial Reports
• Annual Actuarial Valuation Reports are provided by CalPERS for each retirement plan, six in total
• Complex in nature and take into account numerous factors • CalPERS pendulum swings slowly
Data analyzed and used by CalPERS to determine Reedley’s pension debt is 3-years old
• Actuarial Reports received in August 2024 set the 2025-26 CalPERS costs for the City 2025-26 Actuarial Reports use data from June 30, 2023 to determine:
1) CalPERS investment earnings;
2) Employer’s Normal Rate % of Anticipated Payroll;
3) Total Unfunded Accrued Liability as of June 30, 2023; 4) 2025-26 Mandatory Annual UAL Amortization Payment amount will be for each plan CalPERS Annual Actuarial Reports
• Employer’s Normal Rate % of Anticipated Payroll is a cost that relies upon the actual payroll process and pensionable wages
• “Normal Cost” remains fairly static from year to year with each plan • Total Unfunded Accrued Liability Debt and the mandatory payments on that debt fluctuate year to year based upon actual retiree benefits along with the overall fiscal management and investments controlled by CalPERS • Mandatory Annual UAL payment can be made in full at the start of the fiscal year or once each month depending upon fiscal environment and cash flow needs of the City
17 8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
6.3% 8.0%
5-yr Annualized
Return
Employer Contribution Component: Normal Costs
11.94%
23.06% 23.06%
13.99% 13.99%
7.96%
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
6.3% 8.0%
5-yr Annualized
Return
Employer Contribution Component: UAL Payment
• Actuarial Valuation Reports identify the ever-changing Unfunded Accrued Liability Debt and from that number CalPERS identifies the Mandatory minimum payment on that debt
• This is known as the “gap” in between the Employee Contributions and the CalPERS Investment Earnings and it is the responsibility of the Employer
• Total UAL Debt is subject to constant change resulting from numerous factors including investment returns, actuarial assumptions (i.e. mortality), & economic conditions
Employer Contribution Component: UAL Payment
• The Mandatory Annual UAL Amortization Payment is based upon the Total UAL Debt at the time the Actuarial Report is generated • The Mandatory Annual UAL Amortization Payment can be prepaid at the beginning of each fiscal year or made each month • Paying in full vs monthly option typically produces a savings of approximately 3.40%
• For 2024-25, the City has opted to go with monthly payments because the City’s own investment portfolio is currently returning a higher yield that will exceed the 3.4% of savings from the prepayment option
20 8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
6.3% 8.0%
5-yr Annualized
Return
Total Unfunded Accrued Liability Debt
June 30, 2022 Total UAL = $19,120,844 June 30, 2023 Total UAL = $20,130,613
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
4.7% 8.0%
30-yr Annualized
Return
6.3%
5-yr Annualized
Return
Historic Mandatory Annual UAL Amortization Payment
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
4.7% 8.0%
30-yr Annualized
Return
6.3%
5-yr Annualized
Return
Mandatory Annual UAL Amortization Payment
• The City has no control over the UAL numbers
• However, the City now has a tool to reduce the UAL Debt and effect real change to the Mandatory Annual UAL Payments. It’s called the Annual Discretionary Payment established by the City Council with Resolution 2021-097
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
6.3% 8.0%
5-yr Annualized
Return
Employer Contribution Component: ADP
• Resolution 2021-097 established the City’s first ever Pension Funding Policy • The Pension Funding Policy establishes the Additional Discretionary Payment amount to be 25% of the mandatory annual UAL payment
• The ADP is now a standard cost included in the budget
8.5% 5.5%
10-yr Annualized
Return
20-yr Annualized
Return
6.3% 8.0%
5-yr Annualized
Return
Additional Discretionary Payment: ADP
• 2024-25 Budget includes $391,270 for the ADP
• The ADP ultimately reduces the Total UAL Debt and shrinks the Mandatory Annual UAL Amortization Payments
• Similar theory when making an extra principal only payment on a home mortgage or auto loan
Plan Funded Status
Pension Plan June 30, 2021 June 30, 2022 June 30, 2023
PEPRA Miscellaneous 103.2% 86.9% 86.7%
PEPRA Safety Police 103.3% 86.4% 86.2%
PEPRA Safety Fire 105.5% 88.4% 88.0%
Classic Miscellaneous 82.0% 71.2% 71.1%
Classic Safety Police 77.9% 68.2% 69.4%
Classic Safety Fire 92.7% 80.0% 80.2%
26 Plan Funded Status
Pension Plan Market Value of Assets Accrued Liability June 30, 2023 PEPRA Miscellaneous $ 2,055,832 $ 2,371,391 86.7%
PEPRA Safety Police $ 1,541,066 $ 1,788,379 86.2%
PEPRA Safety Fire $ 177,924 $ 202,256 88.0%
Classic Miscellaneous $ 27,061,990 $ 38,043,225 71.1%
Classic Safety Police $ 18,669,166 $ 26,891,452 69.4%
Classic Safety Fire $ 1,372,452 $ 1,712,340 80.2%
Total Plans $ 50,878,430 $ 71,009,043 71.7%
27 5 Key Takeaways
1. PEPRA members (hired after 2012) will continue to make up a growing share of the workforce
2. PEPRA pension liability is a fraction of CLASSIC member liability and less impact to the budget as cost increases are equally shared with employees
3. The City will continue to be at the mercy of drastic and ineffective Environmental, Social and Corporate Governance (ESG) policies of CalPERS and resulting unknown future investment returns
4. CalPERS liabilities and required contributions from the City will continue growing over the next 5-10 years before beginning to trend downwards
5. Reedley is doing everything it can to manage this debt by prudently paying the Mandatory Annual UAL amount and making Additional Discretionary Payments 28