1. CALL TO ORDER
2. ROLL CALL
3. PLEDGE OF ALLEGIANCE
4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS
5. BLUE FOLDER ITEMS (SUPPLEMENTAL)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file.
5.A. FOR BLUE FOLDER DOCUMENTS APPROVED AT THE CITY COUNCIL
MEETING
RECOMMENDATION: Approved
6. PUBLIC COMMENT ON NON-AGENDA ITEMS
This is the appropriate time for members of the public to make comments regarding itemsnot listed on this agenda.
Pursuant to the Brown Act, no action will take place on any items not on the agenda.
7. CONSENT CALENDAR
Business items, except those formally noticed for public hearing, or those pulled for discussion are assigned to the Consent Calendar. The Mayor or any Councilmember may request that any Consent Calendar item(s) be removed, discussed, and acted upon separately. Items removed from the Consent Calendar will be taken up under the "Excluded Consent Calendar" section below. Those items remaining on the Consent Calendar will be approved in one motion. The Mayor will call on anyone wishing to address the City Council on any Consent Calendar item on the agenda, which has not been pulled by Councilmembers for discussion.
2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310) 377-1521
AGENDA
Regular City Council Meeting
CITY COUNCIL
Monday, April 25, 2022
CITY OF ROLLING HILLS
7:00 PM
The meeting agenda is available on the City’s website. The City Council meeting will be live-streamed on the City’s website. Both the agenda and the live-streamed video can be found here:
https://www.rolling-hills.org/government/agenda/index.php Members of the public may submit written comments in real-time by emailing the City Clerk’s office at [email protected]. Your comments will become part of the official meeting record. You must provide your full name, but please do not provide any other personal information that you do not want to be published.
Recordings to City Council meetings can be found here: https://www.rollinghills.org/government/agenda/index.php Next Resolution No. 1295 Next Ordinance No. 376
CL_AGN_220425_CC_BlueFolderItem_7I.pdf
CL_AGN_220425_CC_BlueFolderItem_11F.pdf
1 7.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF APRIL 25, 2022
RECOMMENDATION: Approve.
7.B. APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER
READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA
RECOMMENDATION: Approve.
7.C. APPROVE THE FOLLOWING CITY COUNCIL MINUTES: APRIL 7, 2022, APRIL 11, 2022
RECOMMENDATION: Approve as presented.
7.D. PAYMENT OF BILLS
RECOMMENDATION: Approve as presented.
7.E. REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR MARCH 2022.
RECOMMENDATION: Receive and file.
7.F. APPROVE PROFESSIONAL SERVICES AGREEMENT AND AUTHORIZE THE
CITY MANAGER TO EXECUTE A CONTRACT AMENDMENT WITH THE PALOS
VERDES PENINSULA LAND CONSERVANCY TO PROVIDE ONE-YEAR FIRE FUEL MAINTENANCE SERVICE FOR PHASE 4 AREA
RECOMMENDATION: Approve as presented.
7.G. APPROVE RESPONSE TO LA WATER BOARD BOARD COMMENTS ON EWMP ADDENDUM.
RECOMMENDATION: Approve as presented.
7.H. ADOPT A RESOLUTION DENYING AN APPEAL AND UPHOLDING THE
COMMITTEE ON TREES AND VIEWS' DECISION ON A VIEW PRESERVATION COMPLAINT - 61 EASTFIELD DRIVE (JUGE - COMPLAINANT) AND 59
EASTFIELD DRIVE (TAMAYO/SIERRA - VEGETATION OWNER)
RECOMMENDATION: Adopt Resolution No. 1294.
CL_AGN_220425_CC_AffidavitofPosting.pdf
CL_MIN_220407_CC_F.pdf
CL_MIN_220411_CC_F.pdf
CL_AGN_220425_PaymentOfBills.pdf
CL_AGN_220425_Rolling Hills YTD Tonnage Report.pdf
PVPLC Reducing Fuel Load Project RH 2022(Phase 4)_Revised.pdf Fourth Amendment to Fire Fuel Abatement (conservancy)-draft.pdf RollingHillsAddendum_RTCs(FinalDraft).pdf
PVP_EWMP_Sec_3.5.2(FinalDraft).pdf
Email from WaterBoard 040622.pdf
Rolling Hills Addendum Letter & Attachments 1.31.2022.pdf ResolutionNo1294_59-61_EastfieldDrive_JugeTamayo.pdf
Exhibit A - Photo Key and Photos.pdf
Exhibit B - April 2014 Deck Photo.pdf
Exhibit C - Arborist Report 59 - 61 Eastfield Dr 11-30-2021.pdf CL_AGN_220328_ResolutionNo2021-21-CTV.pdf
2 7.I. APPROVE THE CITY OF ROLLING HILLS AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021.
RECOMMENDATION: Approve the audited financial statements for the fiscal year ended June 30, 2021.
7.J. APPROVE MINOR ADDITION TO THE EMPLOYEE HANDBOOK AND PERSONNEL POLICY MANUAL.
RECOMMENDATION: Approve as presented.
7.K. CONSIDER AND APPROVE AMENDED CITY MANAGER EMPLOYMENT CONTRACT.
RECOMMENDATION: Approve as presented.
8. EXCLUDED CONSENT CALENDAR ITEMS
9. COMMISSION ITEMS
10. PUBLIC HEARINGS
11. OLD BUSINESS AND NEW BUSINESS
11.A. DISCUSSION AND CONSIDERATION OF REQUEST BY THE NEEDS OF
SENIORS COMMITTEE TO HOLD AN EVENT AT THE CITY HALL CAMPUS IN JUNE.
RECOMMENDATION: Provide direction to staff.
11.B. DISCUSS POTENTIAL USES FOR THE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS.
RECOMMENDATION: Discuss and provide direction to staff.
11.C. REVIEW DESIGN PROGRESS FOR THE 8" SEWER MAIN ALONG ROLLING HILLS ROAD; AND APPROVE AN AMENDED PROFESSIONAL SERVICES AGREEMENT WITH NV5 FOR ADDITIONAL SERVICES TO COMPLETE
CONSTRUCTION DOCUMENTS.
RECOMMENDATION: Approve the additional services request from NV5 and direct staff to prepare Amendment No. 1 to the service agreement with NV5 in the amount of $92,411.
11.D. APPROVE LAYOUT OPTION 3 FOR THE CITY HALL ADA IMPROVEMENTS CL_AGN_220411_2021 Financial_Audit_Results-RH.pdf
CL_AGN_220411_City of Rolling Hills FS Final 04-08-22.pdf CL_AGN_220411_City of Rolling Hills Report on IC Final 04-08-22.pdf CL_AGN_220411_City of Rolling Hills Audit Communication Letter Final 04-08-22.pdf CL_AGN_220425_Item7I_RH City Audit_PublicComment_Redacted.pdf HR_EHB_220425_Final.pdf
SecondAmendment_CM_Agreement_ElaineJeng_2022_F.pdf
2022-01-17 US Treasury - ARPA Final Rule - Guidance v2-c1.PDF CL_AGN_220314_CC_SewerMain_PortugueseBend_CostEstimate_2021.pdf NV5_Rolling Hills Sewer Main Torrance Additions 3282022-2.pdf 3 PROJECT, AND APPROVE AN AMENDED PROFESSIONAL SERVICES AGREEMENT WITH PACIFIC ARCHITECTURE AND ENGINEERING, INC. TO PROVIDE CONSTRUCTION DOCUMENTS.
RECOMMENDATION: Approve layout Option 3 and direct staff to prepare Amendment No. 3 to the service agreement with Pacific Architecture and Engineering, Inc. in the amount of $96,485.
11.E. REVIEW OF CITY OF MALIBU SIREN FEASIBILITY REPORT BY MISSION
CRITICAL PARTNERS, SUGGESTION BY RESIDENT, AND SUGGESTION BY
COUNCILMEMBER DIERINGER REGARDING NATIONAL OCEANIC AND
ATMOSPHERIC ADMINISTRATION (NOAA) WEATHER RADIO.
RECOMMENDATION: Receive presentation and provide direction to staff.
11.F. APPROVE FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH HQE SYSTEMS INC. COVERING SUPPLEMENTAL SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $3500.
RECOMMENDATION: Approve professional services agreement as presented.
12. MATTERS FROM THE CITY COUNCIL
12.A. DISCUSS SETTING TIME LIMITS FOR PUBLIC COMMENTS AND COUNCIL COMMENTS ON AGENDA ITEMS. (MAYOR BLACK)
RECOMMENDATION: Consider and provide direction to staff.
12.B. DISCUSS HOLDING AN ANNUAL STATE OF THE CITY EVENT. (MIRSCH) RECOMMENDATION: Consider and provide direction to staff.
12.C. DISCUSS TRACKING TIME SPENT BETWEEN CITY MANAGER AND INDIVIDUAL COUNCIL MEMBERS. (MAYOR BLACK)
RECOMMENDATION: Consider and provide direction to staff.
12.D. CONSIDER POTENTIAL FORMATION OF SUBCOMMITTEE CONSISTING OF
MEMBERS OF THE CITY COUNCIL AND ROLLING HILLS COMMUNITY
ASSOCIATION BOARD MEMBERS TO DISCUSS DRAINAGE ISSUES
CITYWIDE. (MAYOR BLACK)
RECOMMENDATION: Provide direction to staff.
CL_AGN_220314_CC_CityHall_ADA_Improvements.pdf
CL_AGN_220314_CC_CityHall_ADA_Option01.pdf
CL_AGN_220314_CC_CityHall_ADA_Option01B.pdf
CL_AGN_220314_CC_CityHall_ADA_Option02.pdf
CL_AGN_220314_CC_CityHall_ADA_Option03.pdf
April11-2022EmailKamranJahangard.pdf
Malibu_Siren Feasibility Report_14JULY2020_FINAL.pdf
NOAA Weather Radio.pdf
NOAA Weather Radio - Wikipedia.pdf
Amazon.comMidlandNOAAWeatherRadio.pdf
Sign up for Alert LA County.pdf
CL_AGN_220411_CC_PSA_HQE_Amendment01.pdf
CL_AGN_220425_Item11F_HQE_SirenProject_PublicComment_Redacted.pdf 4 13. MATTERS FROM STAFF
13.A. FIRE FUEL ABATEMENT ENFORCEMENT AND CODE ENFORCEMENT CASES QUARTERLY REPORT FOR THE FIRST QUARTER OF 2022 (JANUARY 1 THROUGH MARCH 31).
RECOMMENDATION: Receive and file.
14. RECESS TO CLOSED SESSION
14.A. CONFERENCE WITH LABOR NEGOTIATORS CALIFORNIA GOVERNMENT CODE SECTION 54957.6 CITY DESIGNATED REPRESENTATIVE: CITY MANAGER UNREPRESENTED EMPLOYEE: SENIOR MANAGEMENT ANALYST
CANDIDATE
RECOMMENDATION: None.
15. RECONVENE TO OPEN SESSION
16. ADJOURNMENT
Next regular meeting: Monday, May 9, 2022 at 7:00 p.m. in the City Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274.
Opened_Cases_Report_Q12022.pdf
Closed_Cases_Report_Q12022.pdf
All_Cases_Report_2021-2022.pdf
Notice:
Public Comment is welcome on any item prior to City Council action on the item.
Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered.
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. 5 Agenda Item No.: 5.A
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: FOR BLUE FOLDER DOCUMENTS APPROVED AT THE CITY COUNCIL
MEETING
DATE: April 25, 2022
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approved.
ATTACHMENTS:
CL_AGN_220425_CC_BlueFolderItem_7I.pdf
CL_AGN_220425_CC_BlueFolderItem_11F.pdf
6 BLUE FOLDER ITEM (SUPPLEMENTAL)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
April 25, 2022
7.I APPROVE THE CITY OF ROLLING HILLS AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021.
FROM: CHRISTIAN HORVATH, CITY CLERK/EXECUTIVE ASSISTANT TO THE CITY
MANAGER
CL_AGN_220425_Item7I_RH City Audit_PublicComment_Redacted.pdf 7 BLUE FOLDER ITEM (SUPPLEMENTAL)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
April 25, 2022
11.F APPROVE FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH HQE SYSTEMS INC. COVERING SUPPLEMENTAL SERVICES FOR A NOTTO-EXCEED AMOUNT OF $3500.
FROM: CHRISTIAN HORVATH, CITY CLERK/EXECUTIVE ASSISTANT TO THE CITY
MANAGER
CL_AGN_220425_Item11F_HQE_SirenProject_PublicComment_Redacted.pdf 8 Agenda Item No.: 7.A
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH,
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF APRIL 25, 2022
DATE: April 25, 2022
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve.
ATTACHMENTS:
CL_AGN_220425_CC_AffidavitofPosting.pdf
9 Administrative Report
8.A., File # 1136 Meeting Date: 04/25/2022
To: MAYOR & CITY COUNCIL
From: Christian Horvath, City Clerk
TITLE
APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF APRIL 25, 2022
EXECUTIVE SUMMARY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
AFFIDAVIT OF POSTING
In compliance with the Brown Act, the following materials have been posted at the locations below.
Legislative Body City Council
Posting Type Regular Meeting Agenda
Posting Location 2 Portuguese Bend Road, Rolling Hills, CA 90274 City Hall Window
Meeting Date & Time April 25, 2022 7:00pm Open Session
As City Clerk of the City of Rolling Hills, I declare under penalty of perjury, the document noted above was posted at the date displayed below.
Christian Horvath, City Clerk
Date: April 21, 2022
10 Agenda Item No.: 7.B
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH,
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER
READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA
DATE: April 25, 2022
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve.
ATTACHMENTS:
11 Agenda Item No.: 7.C
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH,
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE THE FOLLOWING CITY COUNCIL MINUTES: APRIL 7, 2022, APRIL 11, 2022
DATE: April 25, 2022
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
CL_MIN_220407_CC_F.pdf
CL_MIN_220411_CC_F.pdf
12 MINUTES – CITY COUNCIL MEETING FIELD TRIP
Thursday, April 7, 2022
Minutes
Rolling Hills City Council
Thursday, April 7, 2022
Adjourned Meeting 7:00 a.m.
1. CALL TO ORDER
The City Council of the City of Rolling Hills met in person at 59 and 61 Eastfield Drive on the above date at 7:00 a.m.
2. ROLL CALL
Councilmembers Present: Mirsch, Pieper, Wilson, Mayor Pro Tem Black, Mayor Dieringer Councilmembers Absent: None
Staff Present: John Signo, Planning & Community Services Director Melissa Flores, Administrative Clerk
Others Present: Joe Juge, Denise Jacobs, Julio Sierra, Beatriz Tamayo, Edgar Coronado, Gordon Inman
3. PUBLIC COMMENT ON NON-AGENDA ITEMS – NONE
4. FIELD TRIP
4.A. FIELD TRIP ON APPEAL OF COMMITTEE ON TREES AND VIEWS' DECISION ON VIEW PRESERVATION COMPLAINT - 61 EASTFIELD DRIVE (JUGE - COMPLAINANT) AND 59 EASTFIELD DRIVE (TAMAYO/SIERRA – VEGETATION OWNER)
Presentation by Planning & Community Services Director John Signo Mr. Juge explained the photographs. The Councilmembers observed the view from various view-points inside the residence.
18. ADJOURNMENT: 7:19 A.M.
The meeting was adjourned at 7:19 a.m on April 7, 2022 and the public hearing continued to the next regular meeting of the City Council scheduled to be held on Monday, April 11, 2022 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California.
All written comments submitted are included in the record and available for public review on the City website.
Respectfully submitted,
____________________________________
Christian Horvath, City Clerk
Approved,
____________________________________
James Black, M.D., Mayor
13 MINUTES – CITY COUNCIL MEETING
Monday, April 11, 2022
Minutes
Rolling Hills City Council
Monday, April 11, 2022
Regular Meeting 7:00 p.m.
1. CALL TO ORDER
The City Council of the City of Rolling Hills met in person on the above date at 7:02 p.m. Mayor Bea Dieringer presiding.
2. ROLL CALL
Councilmembers Present: Mirsch, Pieper, Wilson, Mayor Pro Tem Black, Mayor Dieringer Councilmembers Absent: None
Staff Present: Elaine Jeng, City Manager
Jane Abzug, City Attorney
John Signo, Planning & Community Services Director
Christian Horvath, City Clerk / Executive Assistant to the City Manager
3. PLEDGE OF ALLEGIANCE - Mayor Dieringer
4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS
4.A. CITY COUNCIL REORGANIZATION
Mayor Dieringer called for a reorganization of the City Council and opened the floor to nominations.
Motion by Councilmember Mirsch, seconded by Councilmember Pieper to nominate Mayor Pro Tem Black to serve as Mayor. Motion carried unanimously with the following vote:
AYES: Mirsch, Wilson, Pieper, Black, Mayor Dieringer
NOES: None
ABSENT: None
Motion by Mayor Black, seconded by Councilmember Mirsch to nominate Councilmember Wilson to serve as Mayor Pro Tem. Motion carried unanimously with the following vote:
AYES: Mirsch, Wilson, Pieper, Dieringer, Mayor Black
NOES: None
ABSENT: None
Mayor Black presented a plaque of recognition and thanked former Mayor Dieringer for her service.
Former Mayor Dieringer gave remarks on her term as Mayor, thanked her colleagues, staff and those in attendance.
Mayor Pro Tem Wilson thanked former Mayor Dieringer for her service.
The following presented former Mayor Dieringer with certificates in recognition for her service:
Jennifer Harbeck representing Congressman Ted Lieu
Liliana Pond representing State Senator Ben Allen
Aaron Forburger representing State Assemblymember Al Muratsuchi 14 MINUTES – CITY COUNCIL MEETING
Monday, April 11, 2022
Rolling Hills Estates Mayor Frank Zerunyan and Mayor Pro Tem Britt Huff Palos Verdes Estates Mayor Victoria A. Lozzi
Rancho Palos Verdes Mayor Pro Tem Barbara Ferraro
Palos Verdes Library District Board President Brian Campbell City Clerk Horvath on behalf of LA County Supervisor Hahn and her deputy Erika Velazquez Mayor Black called for a brief recess at 7:25 p.m.
Mayor Black called the meeting back to order at 7:40 p.m.
5. APPROVE ORDER OF THE AGENDA
Mayor Black skipped this item.
Mayor Black requested to move to the Consent Calendar. Without objection, so ordered.
8. CONSENT CALENDAR
8.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF APRIL 11, 2022
8.B. APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL
ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA
8.C. APPROVE THE FOLLOWING CITY COUNCIL MINUTES: MARCH 28, 2022
8.D. PAYMENT OF BILLS
8.E. REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR FEBRUARY 2022 AND FORCE
MAJEURE NOTIFICATION RELATED TO UNAVAILABILITY OF CVT FACILITY DUE TO FIRE
8.F. PULLED BY STAFF
8.G. PULLED BY COUNCILMEMBER DIERINGER
Motion by Councilmember Dieringer, seconded by Councilmember Pieper to approve Consent Calendar excluding Items 8F and 8G. Motion carried unanimously with the following vote:
AYES: Dieringer, Pieper, Mirsch, Wilson, Mayor Black
NOES: None
ABSENT: None
9. EXCLUDED CONSENT CALENDAR ITEMS
8.G. APPROVE FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH HQE SYSTEMS INC. COVERING SUPPLEMENTAL SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $3500.00
Motion by Councilmember Pieper, seconded by Councilmember Dieringer to continue item to next meeting and direct staff to further explore National Oceanic and Atmospheric Administration (NOAA) options that the City of Malibu has recently considered. Motion carried unanimously with the following vote:
AYES: Dieringer, Pieper, Mirsch, Wilson, Mayor Black
15 MINUTES – CITY COUNCIL MEETING
Monday, April 11, 2022
NOES: None
ABSENT: None
Mayor Black requested to move to Item 14A. Without objection, so ordered.
14. MATTERS FROM THE CITY COUNCIL
14.A. UPDATE ON ROLLING HILLS TENNIS COURTS IMPROVEMENTS TO ADD PICKLEBALL COURTS. (PIEPER)
Presentation by Elaine Jeng, City Manager and Councilmember Pieper Public Comment: Gordon Inman, Alan Cherry, Tom Lieb
Motion by Councilmember Pieper, seconded by Councilmember Dieringer to communicate scope of work to the Rolling Hills Community Association regarding converting Tennis Court 1 to permanent pickle ball courts and council discussion. Motion carried unanimously with the following vote:
AYES: Dieringer, Pieper, Mirsch, Wilson, Mayor Black
NOES: None
ABSENT: None
Mayor Black requested to move to Item 13A. Without objection, so ordered.
13. NEW BUSINESS
13.A. CONSIDER REQUEST FROM THE ROLLING HILLS COMMUNITY ASSOCIATION NEEDS OF
SENIORS COMMITTEE TO IMPROVE CITY HALL CAMPUS AND APPROVE SUGGESTED
IMPROVEMENTS
Presentation by Elaine Jeng, City Manager and Claudia Feld, Seniors Committee member Council directed staff to work with existing landscape architect vendor and bring back more information on this item at the May 23, 2022 meeting.
Mayor Black requested to move to Item 4B. Without objection, so ordered.
4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS
4.B. PRESENTATION FROM REPUBLIC SERVICES ON CUSTOMER SERVICE Presentation by Dawn Harris, Municipal Relationship Manager, Republic Services Public Comment: Jim Aichele, Dustin McNabb
Mayor Black moved to Item 7. Without objection, so ordered.
7. PUBLIC COMMENT ON NON-AGENDA ITEMS – NONE
Mayor Black moved to Item 6. Without objection, so ordered.
6. BLUE FOLDER ITEMS (SUPPLEMENTAL)
16 MINUTES – CITY COUNCIL MEETING
Monday, April 11, 2022
Mayor Black noted there were Blue Folder Items. No action was taken to receive and file.
Mayor Black moved to Item 10A. Without objection, so ordered.
10. COMMISSION ITEMS – NONE
10.A. ZONING CASE 21-29: REQUEST FOR APPROVAL OF A CONDITIONAL USE PERMIT AND A VARIANCE TO ALLOW A NEW 934-SQUARE-FOOT STABLE AND EXISTING 3,500-SQUAREFOOT CORRAL TO BE LOCATED WITHIN THE REAR AND SIDE YARD SETBACKS AND EXCEED THE LOT COVERAGE FOR A PROPERTY LOCATED AT 29 CREST ROAD WEST (LOT 174-C-2-MS), ROLLING HILLS, CA (PERRIN).
Presentation by John Signo, Planning & Community Services Director Public Comment: Pat Perrin
Motion by Councilmember Pieper, seconded by Councilmember Mirsch to receive and file. Motion carried unanimously with the following vote:
AYES: Dieringer, Pieper, Mirsch, Wilson, Mayor Black
NOES: None
ABSENT: None
11. PUBLIC HEARINGS
11.A. CONTINUATION OF APPEAL OF COMMITTEE ON TREES AND VIEWS' DECISION ON VIEW PRESERVATION COMPLAINT - 61 EASTFIELD DRIVE (JUGE - COMPLAINANT) AND 59
EASTFIELD DRIVE (TAMAYO/SIERRA - VEGETATION OWNER)
Presentation by John Signo, Planning & Community Services Director Public Comment: Joseph Juge, Edgar Coronado, Denise Jacobs, Dr. Beatriz Tamayo Denise Jacobs provided a new picture to be entered into the record.
Motion by Councilmember Pieper, seconded by Councilmember Mirsch to deny the appeal, uphold the Trees and Views Committee findings and direct the City Attorney to draft a resolution.
Councilmember Dieringer offered a friendly amendment that the ridgeline of 59 Eastfield be included and that the view seeker bear the costs for the second phase of the initial remediation. Friendly amendment was accepted.
Motion carried unanimously with the following vote:
AYES: Dieringer, Pieper, Mirsch, Wilson, Mayor Black
NOES: None
ABSENT: None
14. MATTERS FROM THE CITY COUNCIL
14.B. DISCUSS HOLDING AN ANNUAL STATE OF THE CITY EVENT. (MIRSCH) Councilmember Mirsch requested continuing this item to the next meeting 17 MINUTES – CITY COUNCIL MEETING
Monday, April 11, 2022
Mayor Black requested two agenda items for the next meeting. The first to discuss creating a time limit for public comment and council members on items. The second to discuss having the City Manager track her time with each Councilmember per week.
15. MATTERS FROM STAFF
City Manager Jeng noted that prior to the meeting staff received a comment response letter from the California Department of Housing and Community Development regarding the city’s 6th Cycle Housing Element.
16. RECESS TO CLOSED SESSION
Mayor Black recessed the City Council to Closed Session at 9:58 p.m.
16.A. CONFERENCE WITH LEGAL COUNSEL: ANTICIPATED LITIGATION GOVERNMENT CODE SECTION 54956.9(d)(2)
16.B. CONFERENCE WITH LABOR NEGOTIATORS CALIFORNIA GOVERNMENT CODE SECTION 54957.6 CITY DESIGNATED REPRESENTATIVE: CITY MANAGER
UNREPRESENTED EMPLOYEE: SENIOR MANAGEMENT ANALYST CANDIDATE
16.C. CONFERENCE WITH LABOR NEGOTIATOR GOVERNMENT CODE SECTION 54957.6 CITY'S DESIGNATED REPRESENTATIVE: MAYOR BEA DIERINGER
UNREPRESENTED EMPLOYEE: CITY MANAGER ELAINE JENG
17. RECONVENE TO OPEN SESSION
The City Council reconvened to Open Session at 10:43 p.m. and there was no reportable action.
18. ADJOURNMENT: 10:44 P.M.
The meeting was adjourned at 10:44 p.m on April 11, 2022. The next regular meeting of the City Council is scheduled to be held on Monday, April 25, 2022 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at:
https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website.
Respectfully submitted,
____________________________________
Christian Horvath, City Clerk
Approved,
____________________________________
James Black, M.D., Mayor
18 Agenda Item No.: 7.D
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH,
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: PAYMENT OF BILLS
DATE: April 25, 2022
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
CL_AGN_220425_PaymentOfBills.pdf
19 20
Agenda Item No.: 7.E
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH,
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR MARCH 2022.
DATE: April 25, 2022
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Receive and file.
ATTACHMENTS:
CL_AGN_220425_Rolling Hills YTD Tonnage Report.pdf
21 Year 2022
Franchise Y/N Y
Month Commodity Tons Collected Tons Recovered Tons Disposed Diversion % Jan Greenwaste 98.26 98.26 - 100.00%
Trash 156.54 - 156.54 0.00%
Jan Total 254.80 98.26 156.54 38.56%
Feb Greenwaste 93.00 93.00 - 100.00%
Trash 134.41 - 134.41 0.00%
Feb Total 227.41 93.00 134.41 40.90%
Mar Greenwaste 111.44 111.44 - 100.00%
Trash 183.40 - 183.40 0.00%
Mar Total 294.84 111.44 183.40 37.80%
Grand Total 777.05 302.70 474.35 38.96%
111.44
CITY OF ROLLING HILLS RESIDENTIAL FRANCHISE
2022
Contract Requires 30% Household -
22 Agenda Item No.: 7.F
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH,
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE PROFESSIONAL SERVICES AGREEMENT AND
AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT
AMENDMENT WITH THE PALOS VERDES PENINSULA LAND
CONSERVANCY TO PROVIDE ONE-YEAR FIRE FUEL MAINTENANCE
SERVICE FOR PHASE 4 AREA
DATE: April 25, 2022
BACKGROUND:
On March 28, 2022, the City Council voted unanimously to direct staff to prepare an amendment with the Palos Verdes Peninsula Land Conservancy (PVPLC) for one year maintenance of the Phase 4 area for a not to exceed amount of $32,400.00 by excluding proposed specific southernmost sections of Acacia removal near Burma Road/Ichibod Trail.
DISCUSSION:
PVPLC has revised the budget but it still exceeds the City Council's maximum of $32,400 by $2,500. The proposal is for $34,900 to cover an area of 6.5 acres that will take four weeks to complete. PVPLC indicates they are working with several contractors and this price reflects their costs with oversight. They indicate they are not able to bring that budget lower. If the Council does not accept the exceedance, there are two options that can be considered: a) reduce the area of acacia work to meet City's not to exceed amount; or b) remove the acacia part of the project entirely.
FISCAL IMPACT:
One year maintenance of Phase 4 will cost $34,900.00 which will be taken from the General Fund.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
23 PVPLC Reducing Fuel Load Project RH 2022(Phase 4)_Revised.pdf Fourth Amendment to Fire Fuel Abatement (conservancy)-draft.pdf 24 1
Proposal to the City of Rolling Hills
Fuel Load Reduction in 2022
(Phase 4 Revised)
Submitted by the Palos Verdes Peninsula Land Conservancy The Palos Verdes Peninsula Land Conservancy (Conservancy) is continues to be intimately aware of the fire concerns on the Palos Verdes Peninsula, and continues to discuss measures to reduce fire risk with the four peninsula cities. Conservancy staff members work with City of Rolling Hills staff to implement fuel modification work as required by County Department of Agriculture Weights and Measures as part of landowner responsibilities for fuel modification near adjacent homes as well as measures above and beyond. Additionally, the Conservancy clears over 90 acres of weeds in restoration sites within the Palos Verdes Nature Preserve and clears 30+ miles of trails annually. This weeding approach is very specialized and must be accomplished while complying with the NCCP/HCP implementation guidelines and respecting the natural resources on the preserve. We understand that the city desires to continue to prioritize efforts to reduce fuel load in Preserve areas, and the Conservancy understands that vegetation exists beyond current fuel mod zones that pose fire threats. Therefore, the Conservancy is offering technical expertise to aid the City and augment city staff in the effort to continue reduce fuel load vegetation by targeting the removal of invasive plants such as Acacia and Mustard and other non-native plants, which in turn improves habitat for local wildlife, including the federally threatened coastal California gnatcatcher, the cactus wren, a state species of concern and the federally endangered Palos Verdes Blue Butterfly.
This proposal outlines the potential areas for this extra 2022 work. The areas identified in Portuguese Bend Reserve include the areas abutting and leading into Rolling Hills in Portuguese Canyon, Ishibashi Canyon and Paintbrush Canyon. In total, an approximate 6.5 acres are proposed for fuel load reduction in the Preserve. This work can be completed in less than 4 weeks by simultaneously removing Acacia and mowing dry brush in order to complete this work in a timely manner during fire season. For these additional efforts, the Conservancy requests a one-time grant from the city up to $34,900 for the proposed work outlined herein. The Conservancy understands the city’s timing considerations and would be prepared to begin the work as soon as funding is made available.
The Conservancy has identified the priority removal of tall Acacia shrubs due to their combustible nature (Acacia shrub contain an estimated 90% dry plant matter and volatile resins) and their prevalence throughout the Preserve and border areas. The locations for the proposed Acacia removal were chosen due to prior fires occurring in those areas, proximity to homes and risk to the community as well as the ecological benefits of invasive plant removal. Fire agencies agree that Acacia is a highly flammable plant and that it should be removed wherever possible. It was included as a high-hazard plant in the L.A. County Fire Department’s recently published “Ready! 25 2
Set! Go!” pamphlet. This proposal also includes the removal of other non-native shrubs and trees like Chinese Pistache, Myoporum and Ash trees. Mustard when dry, continues to be a high fire risk species. The continued expansion of mowing areas is also included in this proposal.
The Conservancy, as Habitat Managers for the Preserve, has qualified experts on staff with the experience required to oversee the work to be performed and will assure the correct and safe removal of the invasive plants using the best techniques at the most efficient cost. The results of this work will be shared with the City provided at the conclusion of the work performed.
Where possible and with simpler tasks, volunteers will be deployed to augment the work volume and control costs. In ongoing maintenance activities, the Conservancy will create internship and volunteer opportunities for invasive plant management to keep the Acacia from re-invading the areas and to assist in monitoring activities. In this way, additional valuable learning opportunities will be made available to local youth.
As projects are completed and conditions are assessed, restoration in these locations may be appropriate and funding may be pursued, since this proposal does not include replanting in the Acacia removal sites.
Acacia Removal
Approximately 1 acre
These Acacia removal sites are situated in the northern portion of Portuguese Bend Reserve along the border with the city of Rolling Hills. A fire occurred at this location in 2009 burning approximately 230 acres. Much of the vegetation was burned, including the non-native Acacia, which has since begun to grow back from stump sprouting and seed germination.
It is recommended that crews enter the area on foot as possible and remove shrubs with chainsaws and lighter equipment. Trees should be chipped in designated areas and treated to prevent regrowth. The site will be monitored for seed germination and removal.
The Acacia throughout this area totals approximately 1 acre. This site is known habitat of the federally threatened coastal California gnatcatcher and the cactus wren, a state species of concern as well as other species of concern.
Mowing Area
Approximately 5.5 acres
There is a large stand of invasive mustard in west of Paintbrush Canyon that is dry and can be mowed. This site is adjacent to historical farmland and were disked in subsequent years, so the loose soils have provided a disturbance regime which is particularly favorable to mustard and non-native grasses and weeds. Approximately 5.5 acres of mustard is at this location.
Slopes are very steep and high quality coastal sage scrub habitat is scattered throughout the slope. Careful consideration to not damage native plants and close oversight will be needed.
In response to community concern about the vast expanse of dry mustard growth at Portuguese Bend Reserve, the Conservancy will oversee mowing in this area and conduct bird nesting surveys.
26 10
Acacia Removal Site in Red Polygon, Mowing Sites in Blue 27 11
Budget
The budget reflects a typical detailed tree and shrub removal project within the preserve with minimal disturbance to native habitat and to the surrounding vegetation, following NCCP/HCP protocols. Careful non-native tree removals proposed in this project, increase the habitat value for the federally threatened coastal California gnatcatcher and cactus wren, a state species of concern, as well as other native species while providing public benefit. These costs reflect the estimated time it would take the contractors to complete the project using hand tools and machinery to either chip tree material or haul plant material offsite and oversight and bird monitoring by Conservancy biologists to assure that best management practices are implemented (ie. minimization and avoidance measures such as nesting bird surveys are required by the NCCP/HCP).
These costs are based on best estimates provided by contractors for the Acacia removal and for mowing as two separate projects. For maximum benefit for fuel load reduction and habitat, both projects are recommended to be completed concurrently.
Project Acres Budget
Acacia Cutting and Chipping ~1 $9,100
Mowing of mustard ~5.5 $25,800
One-time Project Total ~6.5 $34,900
28 12
Other Project Considerations
This project is a worthwhile investment into the long-term benefit of the communities adjacent to the open space and wildlife within. While more costly per acre to implement new, laborintensive work than annual fuel modification weed whacking efforts, removing Acacia and other non-native trees is a positive, visible impact to the landscape and a one-time project cost to the City in these target areas. This is unlike areas of mustard which, while needed to reduce fire threat, require annual treatment and ongoing maintenance costs. To help ensure that this investment is successful, the Conservancy recommends annual monitoring of areas to prevent regrowth. This project strategy is supported by the Fire Department, which has identified Acacia removal as a priority effort to reduce fire fuel load in the Preserve. This project is also responding to the nearby community requests to respond to nuisance Acacia and mustard near homes on the Preserve border.
Community Partnerships
As part of the Conservancy’s collaborative approach, we partner with various organizations to complete projects and provide various benefits to the community. If the timing and logistics are appropriate, we would work with some of our partner organizations to add to the costs savings.
We work with the Los Angeles Zoo and Botanical Gardens which accept fresh Acacia greenery for the enhancement of their animal’s physical and mental health. We will save many of the straight long branches from the Acacia tree for delineation of trails and to provide ground snags for lizards and insects. We also have a partnership with the local schools that offer woodworking classes for instructional teaching. Lastly, if the material does not contain seeds, we will use the chipped wood as a mulch in fuel modification zones to keep weeds down into the future.
The Conservancy will also engage the local colleges with applicable internships which allow students to gain a better understanding of the natural world, resource management and gain experience to prepare to enter the workforce. Thousands of hours of intern assistance with projects have been logged and counting. By engaging these students who span from across the globe, we are creating a lasting experience and leaving a lasting impression of the great natural habitat that exists on the peninsula.
Currently the Conservancy is hosting an Americorp team and if schedule permits, the team will assist with this project.
Potential for Restoration and Supplemental Work
As these projects are completed, the cleared land can provide opportunity for habitat restoration and enhancement. A species that is potentially applicable to many of the local habitat types of Palos Verdes, is our local cactus. While no plant is fireproof, there are certain characteristics which make some plants more resistive to fire, such as cactus. Where applicable cactus can be 29 13
planted and maintained until establishment, if supplemental funding is available. Mature cactus holds a mutual relationship with the cactus wren, a state species of concern, since the cacti needles protect young nestlings from predators, providing the best habitat.
To make a larger impact, the Conservancy typically plants mature cactus that is appropriate for immediate nesting, giving us more value per dollar spent. The approximate cost for planting and maintaining a 1 acre cactus restoration project over a 5 year span is approximately $30,000, and the Conservancy would be pleased to provide a restoration plan for lands along the Rolling Hills border of the Preserve for the benefit of community and wildlife. 30 Fire Fuel Abatement
Fourth Amendment to Agreement
- 1 -
CITY OF ROLLING HILLS
FOURTH AMENDMENT TO AGREEMENT FOR FIRE FUEL ABATEMENT
THIS FOURTH AMENDMENT TO AGREEMENT FOR FIRE FUEL ABATEMENT is made and entered into as of April 25, 2022 by and between the CITY OF ROLLING HILLS, a municipal corporation ("City") and the PALOS VERDES PENINSULA LAND CONSERVANCY, a California public benefit corporation ("Conservancy").
R E C I T A L S
A. City and Conservancy entered into an Agreement for Fire Fuel Abatement dated October 21, 2019 whereby Conservancy is obligated to remove the fire fuel on the land under the City’s control as a fire hazard abatement measure for the direct benefit of Rolling Hills residents (the “Agreement”).
B. In 2020, the City paid Conversancy the fixed sum of $34,200 for services rendered under the Agreement.
C. City and Conservancy entered into a First Amendment to Agreement for Fire Fuel Abatement dated June 8, 2020 to expand the scope of work and increase the cost to include additional areas of work and work days for acacia and non-native shrub/tree removal and mustard mowing services (the “First Amendment”).
D. In 2020, the City paid Conversancy the fixed sum of $50,000 for services rendered under the First Amendment. In 2020, the City also paid Conservancy $12,000 for annual mowing services. The total amount the City paid to the Conservancy in 2020, for all services was $96,200.
E. City and Conservancy entered into a Second Amendment to Agreement for Fire Fuel Abatement dated July 13, 2021 to expand the scope of work and add funds for the expanded scope of work (the “Second Amendment”). In 2021, the City paid Conservancy the fixed sum of $119,800.
31 Fire Fuel Abatement
Fourth Amendment to Agreement
- 2 -
F. On February 28, 2022, City and Conservancy entered into a Third Amendment to Agreement for Fire Fuel Abatement to expand the scope of work for phase III maintenance in 2022 and add funds for the expanded scope of work (the “Third Amendment”).
G. City and Conservancy now desire to enter into this Fourth Amendment to the Agreement for Fire Fuel Abatement to expand the scope of work for phase IV work and add funds for the expanded scope of work (the “Fourth Amendment”).
H. Conservancy has represented to City that it has the expertise, experience, and qualifications to perform or cause the performance of the services.
NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, City and Conservancy agree as follows:
1. City and Conservancy agree to amend and supplement the Scope of Services attached to the Agreement as Exhibit A, the Scope of Services (Supplemental) attached to the Second Amendment as Exhibit A, and the Scope of Services (Second Supplemental) attached to the Third Amendment as Exhibit A with the Scope of Services (Third Supplemental) attached to this Fourth Amendment as Exhibit A and incorporated herein by reference.
2. Section 2 “Compensation” of the Agreement is amended to read as follows:
A. In 2021, City shall pay Conservancy the fixed sum of $87,000 for the services described in Exhibit A (Supplemental), and $32,800 for mowing services ($12,000 for annual mowing services and $20,800 for follow up mustard mowing services), for a total amount not to exceed $119,800, and representing the total compensation for all work, labor, equipment, materials and expenses incurred by Conservancy in 2021. Conservancy shall submit an invoice to City upon completion of the services and the City will make payment within 10 days of the close of the month in which work was performed.
B. In 2022, City shall pay Conservancy for the services described in Exhibit A (Second Supplemental) and Exhibit A (Third Supplemental) $72,600 for mowing services ($37,800 for annual mowing services and $34,800 for follow up mustard mowing services) and $9,100 for acacia cutting and chipping for a total amount not to exceed $81,700, representing the total compensation for all work, labor, equipment, materials and expenses incurred by Conservancy in 2022. Conservancy shall submit an invoice to City upon completion of the services and the City will make payment within 10 days of the close of the month in which work was performed.
C. In 2023, City shall pay Conservancy $20,800 for follow up mustard mowing services.
D. Prevailing Wage. Conservancy or its contractor shall abide be the minimum prevailing rate of wages as determined by the State of California, Department of Industrial Relations for each craft, classification, or type of workman employed to carry out provisions of 32 Fire Fuel Abatement
Fourth Amendment to Agreement
- 3 -
the Agreement. During the term of this Agreement, Conservancy shall keep on file sufficient evidence of its employee compensation to enable verification of compliance of Prevailing Wages as established by State of California, Department of Industrial Relations.
3. All terms and conditions of the Agreement not amended by the First Amendment, Second Amendment, Third Amendment, and this Fourth Amendment remain in full force and effect.
IN WITNESS WHEREOF the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of the covenants herein contained and have caused this Third Amendment to be executed by setting hereunto their names, titles, hands, and seals this 25th day of April 2022.
CONSERVANCY: ______________________________________________________ ______________________________________________________
(Title)
CITY:______________________________________________________________________ Elaine Jeng, City Manager of the City of Rolling Hills
Attested:_____________________________________________________________________ Christian Horvath, City Clerk of the City of Rolling Hills Date: _________________
33 Fire Fuel Abatement
Fourth Amendment to Agreement
- 4 -
EXHIBIT A
(THIRD SUPPLEMENTAL)
34 Agenda Item No.: 7.G
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOHN SIGNO, DIRECTOR OF PLANNING & COMMUNITY SERVICES THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE RESPONSE TO LA WATER BOARD BOARD COMMENTS ON EWMP ADDENDUM.
DATE: April 25, 2022
BACKGROUND:
On January 31, 2022, an Addendum to the Palos Verdes Peninsula Enhanced Watershed Management Program (EWMP Addendum) to include Rolling Hills as an 85th%, 24-hour runoff retention area was submitted to the California Regional Water Quality Control Board (Water Board). On April 6, 2022, the Water Board provided the City with comments on the EWMP Addendum that the City must address by May 13, 2022.
DISCUSSION:
The EWMP Addendum consists of two parts:
A detailed matrix of itemized changes to the 2021 EWMP, organized by EWMP section and formatted in the strikeout/replacement format requested by Water Board staff; and A new narrative subsection 3.5.2 devoted to 85th percentile, 24-hour retention areas with a discussion of the Rolling Hills Nature-Based Runoff Retention Area.
The EWMP Addendum has been shared with the Palos Verdes Peninsula EWMP group and they are not opposed to the City of Rolling Hills joining.
The Water Board's comments are summarized below:
1. Is the City reporting no natural flows from Sepulveda Canyon? If in the future there are natural flows, how will the City distinguish between natural flows and stormwater runoff?
2. Include a summary of hydrologic analysis in the new Section 3.5.2.
3. The remaining three comments deal with including Rolling Hills in the tables and other discussions.
The City has prepared responses and modified Section 3.5.2 to address the Water Board's comments which are attached.
35 FISCAL IMPACT:
Expenditures will be taken from the FY 2021-2022 General Fund. This includes McGowan Consulting's time for responding to comments which is a part of McGowan's contract for this fiscal year.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
RollingHillsAddendum_RTCs(FinalDraft).pdf
PVP_EWMP_Sec_3.5.2(FinalDraft).pdf
Email from WaterBoard 040622.pdf
Rolling Hills Addendum Letter & Attachments 1.31.2022.pdf 36 INCORPORATED JANUARY 24, 1957
NO. 2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310)377‐1521
FAX (310) 377‐7288
May 13, 2022
Renee Purdy, Executive Officer
California Regional Water Quality Control Board
Los Angeles Region
320 W. 4th Street, Suite 200
Los Angeles, CA 90013
Via email: [email protected]
Attention: Dr. LB Nye ([email protected])
Ivar Ridgeway ([email protected])
Rebecca Christmann ([email protected]) Subject: Response to Regional Board Comments on the Addendum to the Palos Verdes Peninsula EWMP to include the City of Rolling Hills
Dear Ms. Purdy:
The City of Rolling Hills (Rolling Hills or City) is providing this letter in response to comments received via email from Regional Board staff on the Addendum to the Palos Verdes Peninsula EWMP to include the City of Rolling Hills dated April 6, 2022 (Addendum). The following contains a detailed response to each of the numbered comments provided, which are included in italics below for reference. The noted changes will be incorporated into the revised Palos Verdes Peninsula EWMP to be submitted separately by the Peninsula Watershed Management Group (Peninsula WMG).
1. It was previous[ly] reported that Sepulveda Canyon, George F. Canyon, Bent Springs Canyon, and Klondike Canyon are known to contain natural flows. (Rolling Hills Non-Storm Water Screening and Monitoring Program, November 2014) Is the City now reporting no natural flows from Sepulveda Canyon? If in the future there are natural flows, how will the City distinguish between natural flows and stormwater runoff?
Response: The City is indeed reporting no natural flows discharging from Sepulveda Canyon based on two years of continuous flow monitoring. This data is further supported by ten years of monthly dry weather observations at the downstream Machado Lake Nutrient TMDL monitoring site which also indicate that there has been no natural baseline flow reaching the downstream storm drain system. The information previously used for the Non-Stormwater Screening and Monitoring Program (2014) to identify Sepulveda canyon as having natural flow was that its upper reaches are shown as a blue line stream on the USGS quadrangle map and it was mentioned as having a year-round spring in a published book by a local naturalist (dating from the 1970s).
If dry weather baseline flow were to be observed in Sepulveda Canyon in the future, then a 37
source investigation would be conducted to identify the source(s) of the flow. If prohibited nonstormwater discharges and other non-natural sources could not be ruled out or otherwise eliminated through such an investigation and baseline natural flows were to continue, the City would work with Regional Board staff to propose an appropriate methodology for continued verification of the City’s 85th%, 24-hr runoff retention status. The City understands that natural flows are not subject to regulation under the MS4 Permit and as such, it is only storm flows and conditionally exempt, non-essential non-stormwater discharges that are to be retained.
2. In the new Section 3.5.2, include a summary of the hydrologic analysis conducted as discussed in your letter.
Response: A summary of the hydrologic analysis as discussed in the City’s January 27, 2021 transmittal letter submitted with the draft Addendum will be included in Section 3.5.2 of the revised Palos Verdes Peninsula EWMP.
3. In Section 2.3.1, does Table 2-15 on page 2-29, include the land uses within Rolling Hills? If not, does this Table need to be updated to include the land uses in Rolling Hills? Response: Table 2-15 in Section 2.3.1 on page 2-29 was excerpted from the Peninsula Adaptive Management Report prepared in 2018 and does not include Rolling Hills land use. This table will be replaced with a table that does include Rolling Hills land use in the revised Palos Verdes Peninsula EWMP.
4. Footnote (c) of Table 3-1, page 3-11, states, “Does not include non-Peninsula EWMP drainage area.” Is this statement still valid now that Rolling Hills is joining the WMP? Response: Footnote (c ) of Table 3-1 on page 3-11 in the Palos Verdes Peninsula EWMP will be modified to state: “Does not include Rolling Hills 85%, 24-hr stormwater runoff retention area” .
5. Update the Peninsula WMP to include the modifications outlined in the Addendum to the Palos Verdes Peninsula EWMP to include the City of Rolling Hills.
The modifications outlined in the Addendum to the Palos Verdes Peninsula EWMP to include the City of Rolling Hills will be made in the revised Palos Verdes Peninsula EWMP to be submitted separately by the Peninsula WMG.
Rolling Hills appreciates the opportunity to address LA Water Board staff’s comments. If you require additional clarification, please do not hesitate to contact John Signo or me at 310-377-1521 or via email ([email protected] and [email protected] ).
Sincerely,
Elaine Jeng, P.E.
City Manager
38 3.5.2 85th Percentile, 24‐hour Runoff Retention Areas As provided in Order R4‐2021‐0105 Part IX.A.4.k., Watershed Management Programs may demonstrate that strategies, control measures, and BMPs cumulatively retain the runoff volume from the 85th percentile, 24‐hour storm event for the drainage area tributary to the applicable receiving water and for such areas an RAA is not required. Furthermore, as provided in Order R4‐ 2021‐0105 Part X.B.2.b.iii., a Permittee is deemed in compliance with final WQBELs and receiving water limitations if it has retained all conditionally exempt, non‐essential non‐stormwater and all stormwater runoff up to and including the volume equivalent to the 85th percentile, 24‐hour event for the drainage area tributary to the applicable receiving water provided the Permittee is implementing all actions and schedules in an approved Watershed Management Program.
Watershed areas that fully retain the 85th percentile, 24‐hour runoff volume and were excluded from the RAA analysis are shown in Figure 3.12 and described in the subsequent narrative.
Figure 3‐12 85th Percentile, 24‐Hour Runoff Retention Areas Excluded from RAA
39 Rolling Hills Nature‐Based Runoff Retention Area
The City of Rolling Hills (Rolling Hills) is a small, entirely residential semi‐rural community of single‐family homes with fewer than 2,000 residentsin three square miles. By design, it is a model of low‐impact development utilizing nature‐based solutions for management of stormwater. Its zoning code includes strict standards for development ratios on each property and limits disturbed area during development. A substantial area of land in Rolling Hills is constrained from development due to steep hillsides and canyons; the use of these areas as wildlife habitat and for native vegetation is emphasized. Rolling Hills’ zoning code further promotes the preservation and appreciation of open space by requiring easements for equestrian/hiking trails on all lots.
There are approximately 30 miles of unpaved equestrian/hiking trails throughout the city.1 Under Rolling Hills municipal code2, only 40% of the net area of a residential lot may be disturbed during construction and the remaining area of the lot must remain in its natural, pre‐ development state. Only 35% of the net lot area may be developed with impervious surfaces, including structures, patios, and other paved areas. Given that the minimum lot size in Rolling Hills is 1 acre, with many substantially larger lots, the limitation on lot coverage preserves significant permeable area throughout the city. Additionally, driveways may not cover more than 20% of the area of the yard in which they are located, and uncovered motor courts/parking pads may not cover more than 10% of the yard in which they are located.
Roads within the City have many green street features. They are designed as narrow, two‐lane undivided winding roads 20 to 25 feet wide with rolling to steep grades lined with significant naturalized landscaping. There are no sidewalks or curb‐and‐gutter systems, and roads are not designed to be stormwater conveyance systems.3
Stormwater run‐off that is not contained on properties is conveyed through Rolling Hills via natural, soft bottom, vegetated drainage courses/canyons (see Figure 3‐13), providing disconnection of impervious developed areas and ample opportunity for natural bioretention and infiltration as described in Section 2.3.1: Pollutant Fate and Transport Mechanisms within the Watershed. There is limited public infrastructure and no city‐owned or maintained storm drains, roads, sidewalks, or curb‐and‐gutter, though there are some limited, discontinuous drainage improvements owned/operated by the Los Angeles County Flood Control District (LACFCD).
1 City of Rolling Hills 1990. General Plan – Land Use Element. June 25, 1990. 2 Rolling Hills Municipal Code, Title 17 https://library.municode.com/ca/rolling_hills/codes/code_of_ordinances?nodeId=TIT17ZO 3 City of Rolling Hills 1990. General Plan – Circulation Element. June 25, 1990. 40 Figure 3‐13 Rolling Hills Nature‐Based Stormwater Runoff Retention Area The net effect of Rolling Hills’ planning and land development standards along with its extensive network of natural canyon drainage systems is to promote retention and infiltration, creating a system of nature‐based solutionsfor stormwater management. Along with the Minimum Control Measures, Non‐Stormwater Discharge Measures, and Targeted Non‐Structural Control Measures described in Sections 3.1, 3.2 and 3.3, this system of nature‐based runoff retention measures effectively retains runoff from the 85%, 24‐hr rain event within Rolling Hills as demonstrated through monitoring.
Continuousflow monitoring was conducted in Sepulveda Canyon in Rolling Hillsfor two complete wet‐weatherseasons, from October 26, 2020 through April 2022. Sepulveda Canyon isthe largest canyon system within the Machado Lake tributary area of City, and the second largest in the City as a whole. It extends from the top of the Palos Verdes Peninsula at the drainage divide between the Machado Lake and Santa Monica Bay watersheds, running northward to the City’s northern boundary. Sepulveda Canyon consists of approximately 280 acres lying entirely within Rolling Hills with tributary land use representative of the City as a whole.
Google Earth
41 The continuous flow monitoring was conducted using an ultra‐sonic sensor and data logger within a culvert at the Middleridge Road crossing (33.773522, ‐118.348538), which is an accessible location near the bottom of the canyon suitable for flow monitoring. No flow was recorded by the Sepulveda Canyon monitoring equipment during two complete wet seasons except for during one intense rain event that occurred from December 29 ‐ 30, 2021. Monthly visual field inspections conducted between November 2020 and June 2021 confirmed the absence of flows and documented the site conditions during storm events. In Rolling Hills the 85th %, 24‐hr rain event ranges from 1.0 ‐ 1.1 inches, depending on location. From October 26, 2020, through April 30, 2022, there were four (4) rainfall events greater than or equal to (≧) the 85th%, 24‐hr event with numerous lesser rainfall events occurring. No flow was measured at the Sepulveda Canyon monitoring station during three of the ≧85th%, 24‐hr rain events which ranged from 1.13 to 1.38 inches of rainfall, nor was any flow measured during the smaller rain events.
The fourth large rain event, which occurred from December 29‐30, 2021, was more intense and more than twice the 85th% 24‐hour storm depth; the LA County rain gauge at the Rolling Hills Fire Station recorded 2.36 inches in the 24‐hour period from 10am on December 29th through 10am on December 30th, 2021, which was in excess of the 95%, 24‐hour storm depth. In total, the Rolling Hills Fire Station rain gauge recorded more than 3 inches for that entire rain event which spanned 31 hours and produced flow at the Sepulveda Canyon monitoring station beginning approximately 14 hours after the rain event began. That rainfall event provides an estimate of the upper bound on the retentive capacity of runoff retention in Rolling Hills. The no‐flow results observed during the three other ≧85th%, 24‐hr rainfall events as well as the numerous smaller rainfall events that occurred throughout the monitoring period provide evidence that the strategies, control measures and BMPs implemented by Rolling Hills cumulatively retain stormwater runoff up to and including runoff from the 85th percentile, 24‐hour storm event, as well as any conditionally exempt non‐stormwater discharges. 42 1
John Signo
From: Christmann, Rebecca@Waterboards <[email protected]> Sent: Wednesday, April 6, 2022 1:54 PM
To: Elaine Jeng
Cc: John Signo; Christian Horvath; 'Kathleen McGowan'; Newman, Jenny@Waterboards; Nye, LB@Waterboards; Ridgeway, Ivar@Waterboards
Subject: Review of the Addendum to the Palos Verdes Peninsula 2021 WMP Dear Ms. Jeng,
I am providing you with my comments on the Addendum to the Palos Verdes Peninsula EWMP to include the City of Rolling Hills. Please address the following comments and questions and submit a revised Peninsula WMP by May 13, 2022, in coordination with the Palos Verdes Peninsula Watershed Management Group.
1. It was previous reported that Sepulveda Canyon, George F. Canyon, Bent Springs Canyon, and Klondike Canyon are known to contain natural flows. (Rolling Hills Non-Storm Water Screening and Monitoring Program, November 2014) Is the City now reporting no natural flows from Sepulveda Canyon? If in the future there are natural flows, how will the City distinguish between natural flows and stormwater runoff?
2. In the new Section 3.5.2, include a summary of the hydrologic analysis conducted as discussed in your letter.
3. In Section 2.3.1, does Table 2-15 on page 2-29, include the land uses within Rolling Hills? If not, does this Table need to be updated to include the land uses in Rolling Hills?
4. Footnote (c) of Table 3-1, page 3-11, states, “Does not include non-Peninsula EWMP drainage area.” Is this statement still valid now that Rolling Hills is joining the WMP?
5. Update the Peninsula WMP to include the modifications outlined in the Addendum to the Palos Verdes Peninsula EWMP to include the City of Rolling Hills.
Thank you,
Rebecca Christmann
Stormwater Permitting Unit
Rebecca Christmann
Water Resource Control Engineer
Los Angeles Regional Water Quality Control Board
320 West 4th Street, Suite 200, Los Angeles, CA 90013
Tel: (213) 576-5734
[email protected]
Due to COVID‐19, I am teleworking on a full‐time basis. E‐mail is the best way to reach me for immediate assistance. 43 44
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57 Agenda Item No.: 7.H
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOHN SIGNO, DIRECTOR OF PLANNING & COMMUNITY SERVICES THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: ADOPT A RESOLUTION DENYING AN APPEAL AND UPHOLDING THE
COMMITTEE ON TREES AND VIEWS' DECISION ON A VIEW
PRESERVATION COMPLAINT - 61 EASTFIELD DRIVE (JUGE -
COMPLAINANT) AND 59 EASTFIELD DRIVE (TAMAYO/SIERRA -
VEGETATION OWNER)
DATE: April 25, 2022
BACKGROUND:
On March 28, 2022, April 7, 2022, and April 11, 2022, the City Council opened the public hearing, took public testimony, discussed the item, and voted to adopt Resolution No. 1294 denying an appeal and upholding the Committee on Trees and Views' decision on a view preservation case.
DISCUSSION:
At the April 11, 2022 City Council meeting, the City Council voted unanimously to adopt Resolution No. 1294 with an amendment that the ridgeline of 59 Eastfield Drive be included and that the view seeker bear the costs for the second phase of the initial remediation. The attached resolution reflects the decision made by the City Council.
FISCAL IMPACT:
None.
RECOMMENDATION:
Adopt Resolution No. 1294.
ATTACHMENTS:
ResolutionNo1294_59-61_EastfieldDrive_JugeTamayo.pdf
Exhibit A - Photo Key and Photos.pdf
Exhibit B - April 2014 Deck Photo.pdf
Exhibit C - Arborist Report 59 - 61 Eastfield Dr 11-30-2021.pdf CL_AGN_220328_ResolutionNo2021-21-CTV.pdf
58 65277.00001\35029019.1
RESOLUTION NO. 1294
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS UPHOLDING THE ADVISORY DECISION
OF THE COMMITTEE ON TREES AND VIEWS ON THE
VIEW PRESERVATION DISPUTE BETWEEN JOSEPH
JUGE, ON THE ONE HAND, AND BEATRIZ TAMAYO AND
JULIO SIERRA, ON THE OTHER
THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, RESOLVE, AND ADVISE AS FOLLOWS:
SECTION 1. On October 28, 2020, Mr. Joseph Juge (“Complainant”) filed a view impairment complaint (“Complaint”), alleging that the view from his home at 61 Eastfield Drive, Rolling Hills was significantly impaired by certain vegetation on the property of Dr.
Beatriz Tamayo and Mr. Julio Sierra (“Respondents”), located at 59 Eastfield Drive, Rolling Hills (the “Dispute”). Complainant and Respondents are referred to together herein as the “Parties.”
SECTION 2. Respondents initially agreed to mediate the Dispute but subsequently withdrew their consent to mediate. A public hearing before the City of Rolling Hills (“City”) Committee on Trees and Views (“Committee”) was properly noticed and advertised pursuant to Rolling Hills Municipal Code (“RHMC”) section
17.26.040(C)(4). The subject public hearing was conducted on November 2, 2021. On November 3, 2021, the Committee held a field trip meeting at Complainant’s home. The public hearing was continued to November 30, 2021. The Complainant and the Respondents were in attendance at the public hearing; Respondents were not present at the November 3 field trip. Complainant represented himself; Respondents were represented by Edgar Coronado, Esq. Evidence was heard and presented from all persons interested in the Dispute, from members of the City staff, and a certified arborist, Gregory MacDonald. The Committee reviewed, analyzed and studied the evidence submitted. The Committee adopted Resolution No. 2021-21-CTV finding that Complainant had a view impairment and advising on restorative actions.
SECTION 3. On January 27, 2022, Respondents appealed the Committee decision to the City Council. A de novo public hearing before the City Council was properly noticed and advertised pursuant RHMC section 17.26.040(D)(4). The subject public hearing was conducted on March 28, 2022, when the City Council continued the public hearing to April 7, 2022 to conduct a field trip at Complainant’s and Respondent’s homes.
The public hearing was continued to April 11, 2022. The Complainant and the Respondents were in attendance at the public hearing. Complainant represented himself; Respondents were represented by Mr. Coronado. Evidence was heard and presented from all persons interested in the Dispute and from members of the City staff. The City Council reviewed, analyzed, and studied the evidence submitted.
SECTION 4. The public hearing was conducted using terms as defined in RHMC section 17.26.020, including but not limited to:
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A. “View impairment”: any obstruction of a pre-existing view by vegetation on another property within the City that significantly diminishes that pre-existing view; B. “Pre-existing view”: the view that existed at any time since the complainant’s property was most recently purchased for fair market value through an arm’s length purchase or sale, as evidenced by a deed. The pre-existing view cannot be the result of a natural disaster or illegal activities; C. “View”: a visually impressive scene or vista, such as the Pacific Ocean, offshore islands, mountains, lights of the Los Angeles basin, the Palos Verdes Hills and canyons, the Los Angeles Harbor and/or Long Beach Harbor, and similar, as observed from a viewing point. A view may include structures or vegetation in the foreground or background of the view seeker’s property. A “view” may be observed from one or more viewing point, and may be panoramic;
D. “Viewing point”: any view from the primary living area or active use area of a primary residence, excluding views from minor rooms, such as garages or closets, and also includes views from accessory buildings or structures, including pool decks and gazebos, but excluding animal pens, aviaries, corrals, greenhouses, porte cocheres, riding rings, run-in sheds, sheds, stable/barns, free-standing storage rooms, and tack rooms.
SECTION 5. The City Council, pursuant to RHMC section 17.26.050(A), finds that a pre-existing view, within the meaning of RHMC chapter 17.26, has been obstructed and significantly impaired based on the following facts:
A. Complainant purchased the property on which his home currently sits in 1982.
B. Complainant remodeled his home after he purchased the property, and such remodel took place generally on the same site as the home purchased in 1982.
C. Respondents purchased their home in 2007.
D. Complainant submitted photos dated 1987 and 1988 and provided testimony that such photos were taken from a location that would be the breakfast room/dining room area today in his existing residence. The photo key that includes the photos dated 1987 and 1988 is attached hereto and incorporated herein by reference as Exhibit A.
E. Respondents testified the photos dated 1987 and 1988 could not have been taken in 1987 and 1988 because their pool house, which was constructed in 1964, is not identified in the photos.
F. The field trip visit to Complainant’s property and Respondent’s property revealed that the pool house on Respondents’ property is located on a lower pad than Respondents’ residence, which is lower than Complainant’s property, and therefore could not feasibly be visible from Complainant’s property.
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G. Denise Jacobs submitted a photo dated April 8, 2014 and testified that she took the photo from the deck of Complainant’s existing home. The image of the photo appears to have been taken from the deck adjacent to the living room area of Complainant’s existing residence. The photo dated April 8, 2014 is attached hereto and incorporated herein by reference as Exhibit B.
H. Based on the photos and testimony provided by Complainant and photo and testimony provided by Ms. Jacobs, the view included both canyon and city vistas.
I. Complainant made extensive efforts to resolve and mitigate the view impairment through private channels with the Respondents, as evidenced by the correspondence included in the Complaint, spanning four (4) years – from December 2016 to summer 2020. Specifically,
(i) On May 26, 2020, Complainant requested that the Parties enter into mediation to resolve the Dispute.
(ii) On July 25, 2020, within the 60-day period for response pursuant to RHMC section 17.26.040(B)(1), Respondents agreed to mediation. (iii) On August 13, 2020, Complainant proposed two mediators for Respondents’ consideration.
(iv) On October 9, 2020, Respondents asked, prior to making a choice, who would be responsible for the mediator’s fee.
(v) As noted above, on or about October 28, 2020, Complainant filed the Application with the applicable fee to the City.
J. Complainant made efforts to mediate but Respondents ultimately refused to mediate. Specifically,
(i) On June 1, 2021, the Committee held a virtual hearing at which only Complainant was in attendance.
(ii) The hearing was continued to August 4, 2021 to allow the Parties to mediate.
(iii) The City provided suggestions for possible mediators. The Parties did not select a mediator.
(iv) The August 4 meeting did not occur.
(v) On August 17, 2021, the Committee held a meeting to receive an update on mediation efforts between the Parties. The Committee continued the public hearing to October 5, 2021.
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(vi) The City provided more suggestions of possible mediators.
Complainant contacted the City’s suggested mediators and obtained fee and availability information.
(vii) On August 23, 2021, Complainant shared this information with Respondents.
(viii) On September 1, 2021, Respondents withdrew their agreement to mediate.
K. Pursuant to RHMC section 17.26.040(D)(4)(e), a pre-existing view, within the meaning of RHMC chapter 17.26, existed based on the photos dated 1987 and 1988 in Exhibit A and photo dated April 8, 2014 in Exhibit B after Complainant purchased the property. The pre-existing view is now significantly impaired by vegetation growing on Respondents’ property as identified in the photos dated 2018 in Exhibit A and as observed during the April 7, 2022 field trip, resulting in a view impairment.
SECTION 6. The City Council, pursuant to RHMC section 17.26.050(B), makes the following findings to support its advisory restorative action in Section 7 below:
A. A certified arborist, Gregory MacDonald, was consulted for purposes of issuing an arborist report for the vegetation and trees on 61 Eastfield Drive. A copy of the arborist report is attached hereto and incorporated herein by reference as Exhibit C.
B. None of Respondents’ trees that are impairing Complainant’s view are rare.
C. Sound and heat mitigation should not be affected, as any proposed restorative action would not involve removal of any trees.
D. There should be no reduction of stature in any trees, resulting in harm or loss of Respondents’ privacy.
E. Vegetation existed upon Respondents’ purchase of their property in 2007.
F. Vegetation on the south side of Respondents’ structure acted as a privacy buffer.
SECTION 7. Based on (i) the City Council’s observations at the site visit it conducted on April 7, 2022, (ii) the key attached hereto as Exhibit A, (iii) the photo dated April 8, 2014 attached hereto as Exhibit B, and (iii) the certified arborist’s written report attached hereto as Exhibit C, and pursuant to RHMC section 17.26.060, the City Council finds and recommends the following restorative actions:
A. Pursuant to RHMC sections 17.26.040(D)(4)(f) and 17.26.060(B), Complainant should bear the cost of the initial restorative action described below, unless otherwise stated and unless the parties agree to share the costs in some other manner. 62 5
B. The restorative actions set forth in this Section 7 should occur sometime within 120 days of adoption of this resolution.
C. All vegetation and trees should be reduced so as not to exceed the corresponding 59 Eastfield ridgelines adjacent to the respective vegetation or tree. To the greatest extent possible, crown reduction should be used to reduce height.
D. The loquat tree in the view corridor should be decreased by approximately 6 feet.
E. The southside vegetation, including the oleander, corresponding to the 59 Eastfield roofline that is no further east of the chimney, should be reduced.
F. The ash tree should be crowned and laced (with crown cleaning) so that it can be reduced to the nearest 59 Eastfield dwelling ridgeline of the south side of the property.
G. The Toyon tree should be crowned and laced to approximately 4 feet below the 59 Eastfield ridgeline; provided, however, that initial restorative action should not result in more than 25% reduction. If the prescribed reduction level is not met due to the 25% maximum reduction limitation, another attempt should be made the following year – at Complainant’s expense.
H. No action is recommended for the avocado tree.
I. Any trees or vegetation adjacent to and west of the chimney on Respondents’ residence should not exceed the 59 Eastfield ridgeline.
J. The westerly trunk of the pepper tree, besides being reduced in size to its corresponding 59 Eastfield ridgeline, should be laced and reduced laterally.
K. The two (2) pine trees should be crowned and reduced to their respective ridgelines; provided, however, that initial restorative action should not result in more than 30% reduction. If the prescribed reduction level is not met due to the 30% maximum reduction limitation, another attempt should be made the following year – at Complainant’s expense.
SECTION 8. The Committee recommends the following conditions to prevent future view impairments:
A. Pursuant to RHMC section 17.26.060(B), maintenance of the trees and vegetation in question subsequent to initial restorative action should be performed at the cost and expense of Respondents, unless otherwise agreed to by the parties.
B. All trees and vegetation should be maintained at the levels prescribed in Section 7 above so as not to allow for future view impairments. 63 6
C. The parties should review the state of Respondents’ trees and vegetation on an annual basis.
SECTION 9. If the parties agree with the Council's advisory resolution, they must notify the City in writing within fifteen days of adoption. Within sixty days of the date of the advisory resolution, if either or both parties disagree with the advisory resolution and wish to pursue arbitration, the disagreeing party must notify the City in writing that they wish to proceed with arbitration. This resolution is advisory and unenforceable by the City of Rolling Hills.
PASSED, APPROVED AND ADOPTED this 25th day of April, 2022. ___________________________________
JAMES BLACK, M.D.
MAYOR
ATTEST:
CHRISTIAN HORVATH
CITY CLERK
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §§
CITY OF ROLLING HILLS )
The foregoing Resolution No. 1294 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS UPHOLDING THE ADVISORY DECISION OF THE COMMITTEE
ON TREES AND VIEWS ON THE VIEW PRESERVATION DISPUTE
BETWEEN JOSEPH JUGE, ON THE ONE HAND, AND BEATRIZ
TAMAYO AND JULIO SIERRA, ON THE OTHER
was approved and adopted at regular meeting of the City Council on the 25th day of April, 2022, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
CHRISTIAN HORVATH
CITY CLERK
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ARBORIST REPORT for
61 Eastfield Drive, Rolling Hills, CA ‐ View restoration On November 30, 2021, I, Gregory MacDonald, Certified Arborist #WE 6469A did a site visit to assess recommendations for view restoration. There are a number of trees and some shrubs involved. Starting from the far left of the view issue, there is a Toyon shrub that should be fine with some reduction trimming up to 25% of foliage. It could possibly be trimmed lower at the next years trimming if it responds well to the first trim.
Much lower on the slope, there is an apparently fully dead Eucalyptus that should be removed down to near ground level. It may or may not be a view issue but as a course of regular maintenance and safety needs to be addressed. The entire root system should probably be left in place to not disturb the slope.
The large ash tree appears to be 60 + years old and in less than great health. It has dieback typical of drought stress but should not be adversely affected by the recommended reduction and lacing. As a deciduous tree, it has systems in place to deal with foliage loss. I would add the need for crown cleaning to remove all completely dead branches.
The two relatively young Canary Island Pine Trees should do fine with crown reduction trimming to an appropriate side branch/whorl. I would advise not removing more than 30% of the foliage at this time. If possible, the side branches should not be cut at this time but could possible be reduced in following years. This action will completely change the natural form of these two trees, but if follow‐up trimming is done with care, they can be good shade and slope stabilizing trees.
The Avocado appears to be in decline and needs no trimming.
The large Pepper tree was recommended to be reduced to the roofline of the adjacent structure. This tree has well developed branching, so this should be fine if reduction cuts are used and no topping cuts are done. The request to remove the large trunk growing over the pathway down towards the pool house is not recommended. I feel it would be far better reduced both vertically at the end as well as laterally. This would reduce the weight out to the side. The tree has survived being cut significantly at the base (many years ago) and I would not suggest adding to that by removing a trunk of the tree. I would advise against cuts larger than 4” diameter as Schinus molle are not known to compartmentalize decay very well.
The Loquat tree close to the structure should be fine with crown reduction trimming. It too, has well developed branching that allows for smaller cuts.
The pomegranate tree will do fine with reduction trimming. As a deciduous tree, it has systems in place to deal with foliage loss.
75 The Oleander hedge is suffering from “Oleander Leaf Scorch” also called “Bacterial Leaf Scorch” (BLS) and there is no known cure. It is possible to prolong the life of these shrubs with additional watering, and I strongly recommend adding a drip irrigation system. If screening and sound reduction are the goal, I would suggest interplanting with True Bay, Wax leaf Privet, or Australian Brush Cherry. They can be planted in between the existing Oleanders and as the Oleander continue to die, the new shrubs can take over the role of a hedge. The insect that carries the bacterial disease (Xylella fastidiosa), gets the bacteria by feeding on diseased shrubs and trees, so removal of these diseased shrubs may be a consideration. Once infected, the shrubs slowly lose the ability to transport water through their Xylem to other parts of the shrub. Trimming this hedge at the roof line should be fine.
The Schefflera shrub can be reduced in height one branch at a time with a lower risk of damage to it.
An inspection and Arborist Report with recommendations do not in any way give or imply any warrantee against tree or limb failures. Trees and their limbs can and do fail. No inspection can prevent that, and recommendations given here are simply given as options to consider. Every tree can react differently to trimming, climate, soil conditions, and watering. Any action taken are the responsibility of the property owner and the company doing the physical work.
I thank you for the opportunity to be of help with these trees, Gregory MacDonald
ISA Certified Arborist #We 6469A
Rancho Palos Verdes, CA 90275
(310) 941‐2174
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Agenda Item No.: 7.I
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT SAMARIO, FINANCE DIRECTOR
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE THE CITY OF ROLLING HILLS AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021.
DATE: April 25, 2022
BACKGROUND:
As required by State law, each city and county must prepare an annual financial report that presents its financial condition and results of operations for the fiscal year. In addition, the financial statements must be audited by an independent certified public accounting firm to ensure the financial statements are free of material misstatements. In addition to the audit of the financial statements, the accounting firm performs tests of transactions to ensure the adequacy of internal accounting controls.
The City has completed its financial statements for the fiscal year ended June 30, 2021, which have been audited by LSL CPAs, and are ready for presentation to the City Council for acceptance. In addition, the auditors will provide a verbal presentation summarizing the results of the audit.
The Finance/Budget/Audit Committee reviewed the presentation at their April 11, 2022 meeting.
DISCUSSION:
The audited financial report contains three (3) major sections: (1) the Financial Section, (2) the Required Supplementary Information, and (3) the Combining and Individual Fund Statements and Schedules.
While each of these sections presents important information, the Financial Section provides the most meaningful and important information regarding the finances of the City. This section includes a narrative summary of the financial results for the fiscal year (called the Management's Discussion and Analysis); city-wide financial statements that show the financial condition (i.e., health) of the City; individual fund financial statements for the largest funds, including the General Fund; and the Independent Auditor's Report. 84 At a City-wide level and individual fund level, the City's primary and largest fund is the General Fund where most of the City's services are accounted for, including law enforcement and planning services. The services provided through the General Fund are financed largely from tax revenues, including property taxes and sales taxes, and from charges for developmentrelated services.
As reflected in the financial statements, the City of Rolling Hills' financial condition as of June 30, 2021, is very strong. This is due to the size of its reserve balances in the General Fund.
One key measure of financial strength is the percent of the General Fund unassigned reserves to total expenditures. The majority of cities in California maintain unassigned reserve levels less than 50% of budgeted expenditures. As of June 30, 2021, the City's unassigned reserves were 168% of budgeted General Fund expenditures for fiscal year 2022.These reserves are available to respond to emergencies, such as natural disasters, economic downturns, and capital improvement projects.
Another important measure of financial health is the results of operations for the fiscal year and the trend over the last several years. For example, if the City's ongoing revenues are not adequate to cover ongoing costs each year, this will ultimately erode reserve balances that may currently be strong. Historically, the City of Rolling Hills has generated surpluses in its operations, further indicating financial strength and stability. During the fiscal year ended June 30, 2021, both at a City-wide level and for the General Fund, the City ended the year with revenues almost matching expenditures. Given that the originally adopted budget anticipated using reserves for ongoing operating costs and capital improvement projects of approximately $480,000, ending the year essentially balanced is a very welcome and favorable outcome.
For fiscal year 2021, the favorable year-end results are largely due to expenditure savings rather than better than expected revenue performance. As such, at a budgetary level, the City will continue to face a structural imbalance that began last fiscal year largely due to reduction in building-related revenues impacted by the global pandemic. In fiscal year 2018, Licenses and Permit revenues peaked at $739,138. In fiscal year 2021, revenues were just $183,378.
To the degree these revenues start to pick, which we evidence of in the first half of fiscal year 2022, this will help close the structural gap.
One of the positive aspects of the City's revenues is that 64% of total General Fund revenues are from property taxes. Although these revenues only grew by 1.8% from the prior year, property tax revenues are generally very stable and do are not materially impacted by the normal ebbs and flows of the economic cycle or, more recently, by COVID-19.
Lastly, as discussed in the Independent Auditor's Report, the auditors issued what is referred to as an "Unmodified Opinion" which means the auditors have opined that the City's financial statements are free of material misstatement.
The Finance/Audit/Budget Committee reviewed the audited financial statements and the related audit reports on April 11, 2022 and recommended City Council approval.
FISCAL IMPACT:
None.
RECOMMENDATION:
Staff recommends City Council accept and file the City of Rolling Hills Financial Statements for 85 the Fiscal Year Ended June 30, 2021.
ATTACHMENTS:
CL_AGN_220411_2021 Financial_Audit_Results-RH.pdf
CL_AGN_220411_City of Rolling Hills FS Final 04-08-22.pdf CL_AGN_220411_City of Rolling Hills Report on IC Final 04-08-22.pdf CL_AGN_220411_City of Rolling Hills Audit Communication Letter Final 04-08-22.pdf CL_AGN_220425_Item7I_RH City Audit_PublicComment_Redacted.pdf 86 CITY OF ROLLING HILLS
FISCAL YEAR ENDED JUNE 30, 2021
FINANCIAL AUDIT RESULTS
87 www.lslcpas.com
FY 2021 Audit Communication Results
Financial Audit
• Opinion Letter (New Format)
• Report on Internal Control and Other Matters
• Audit Communication Letter (SAS 114 – conclusion)
88 www.lslcpas.com
Opinion Letter
• Unmodified Opinion
– Now the First Paragraph
– Based on our audit of significant transactions, our understanding of the City’s policies and procedures, and our testwork results, we have issued an Opinion that the financials statements are free of material misstatements at June 30, 2021.
89 www.lslcpas.com
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters
• In planning and performing the audit, we consider the City’s Internal Controls over Financial Reporting specific to giving an opinion of the Financial Statements, but this is not the purpose of the audit.
• No opinion is expressed on the internal controls
• During our course of audit procedures weaknesses may
come to our attention and communicated to
Management and to you in this letter. None to report at this time.
90 www.lslcpas.com
Audit Communication Letter (SAS 114 – conclusion)
• Accounting Practices
– Significant and Appropriate Estimates: OPEB and Pension Liabilities • No Difficulties Encountered in Performing the Audit
• No Disagreements with Management to disclose
• Management Representation includes a letter to the
auditors regarding their acceptance of responsibilities and disclosures of no known errors or fraudulent
activities to communicate to auditors
91 www.lslcpas.com
Audit Communication Letter (Continued)
• Upcoming Standards
– GASB 87 – Leases
• This will change how the value of the outstanding balance will be shown.
• Evaluate contracts/agreements as a lessor/lessee for any exchange of property use.
92 www.lslcpas.com
Thank you
• Contact information:
– [email protected]
– 714-672-0022
• Any Questions
93 CITY OF ROLLING HILLS, CALIFORNIA
FOR THE FISCAL YEAR ENDED JUNE 30, 2021 FINANCIAL STATEMENTS 94 CITY OF ROLLING HILLS, CALIFORNIA
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
PREPARED BY:
THE CITY OF ROLLING HILLS, CALIFORNIA
FINANCIAL SERVICES DEPARTMENT
95 THIS PAGE INTENTIONALLY LEFT BLANK
96 CITY OF ROLLING HILLS, CALIFORNIA
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................ 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................... 13 Statement of Activities .................................................................................................................... 14 Fund Financial Statements:
Balance Sheet - Governmental Funds ........................................................................................... 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..................................................................................................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds .................................................................................................... 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................... 22 Statement of Net Position - Proprietary Funds ............................................................................... 23 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds ........................................................................................................... 24 Statement of Cash Flows - Proprietary Funds ............................................................................... 25 Notes to Financial Statements .............................................................................................................. 27 97 CITY OF ROLLING HILLS, CALIFORNIA
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information .............................................................................. 51 Budgetary Comparison Schedule – General Fund ......................................................................... 52 Budgetary Comparison Schedule – Transit Fund .......................................................................... 53 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous ............................ 54 Schedule of Plan Contributions – Miscellaneous ........................................................................... 55 Schedule of Changes in the Net OPEB Asset and Related Ratios ................................................ 56 Schedule of Plan Contributions – OPEB ........................................................................................ 57
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ....................................................... 58 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ..................................................................... 60 Budgetary Comparison Schedules – Special Revenue Funds:
Community Facilities Fund ....................................................................................................... 62 Traffic Safety Fund ................................................................................................................... 63 Measure R Fund ...................................................................................................................... 64 COPS Fund .............................................................................................................................. 65 CLEEP Fund ............................................................................................................................ 66 Measure M Local Fund ............................................................................................................ 67 LA County Measure W ............................................................................................................. 68 Budgetary Comparison Schedules – Capital Projects Funds:
Underground Utility Fund ......................................................................................................... 69 Capital Projects Fund ............................................................................................................... 70 98 Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Rolling Hills, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Rolling Hills, California, (the City) as of and for the year ended June 30, 2021, 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 of City of Rolling Hills, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
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 Auditor’s 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 audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; 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 date of the financial statements. 99 To the Honorable Mayor and Members of the City Council City of Rolling Hills, California
Auditor’s 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 auditor’s report that includes our opinion. 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 the 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’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.
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the General Fund and the Transit Fund, the schedule of proportionate share of the net pension liability, the schedule of plan contributions – miscellaneous plan, the schedule of changes in net OPEB asset and related ratios, and the schedule of plan contributions – OPEB, 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 accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 100
To the Honorable Mayor and Members of the City Council
City of Rolling Hills, California
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 and individual nonmajor fund financial statements and schedules 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 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 auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 7, 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 the City’s internal control over financial reporting and compliance.
Brea, California
April 7, 2022
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4 102
Management Discussion and Analysis
The following narrative provides an overview and analysis of the financial activities of the City of Rolling Hills for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the City’s financial statements.
Financial Highlights
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 $8,156,622 (net position). Of this amount, $5,091,420, (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $7,556,283. Of this amount $5,175,508 is unassigned and available for spending at the City’s discretion.
At the end of the current year, unassigned fund balance for the General Fund was $5,175,508 which represents 2.54 times the total General Fund expenditures. General Fund revenues available for appropriation were $10,160 more than budgeted while actual expenditures were $474,880 less than budgeted. After transfers in and out, the General Fund showed a $33,195 increase in fund balance.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements contain the following three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements.
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business.
These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
The statement of net position presents information on all of the City’s assets, deferred inflows/outflows of resources and liabilities, with the difference between the two reported as net position. Over time, increases or 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 showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change regardless of the timing of related cash flows. Thus, some of the revenues and expenses reported in this statement will have no effect on cash until some future fiscal period.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover some or all of their costs through user fees and charges (business-type activities).
Governmental activities. With the exception of refuse services, all of the City’s basic services are reported in this category, including the general administration, public safety, planning and development, recreation and public works. Property taxes, sales tax, real estate transfer tax, licenses and permits, franchise fees, charges for services, interest income, grants, contributions from other agencies, and other revenues finance these activities.
5 103
Business-type activities. The City charges a fee to customers to cover all or most of the costs of certain services it provides. The City’s Refuse Collection operation is reported in this category.
The government-wide financial statements can be found on pages 13 to 15 of this report.
Fund Financial Statements. The fund financial statements provide detailed information about the City’s most significant funds. All of the funds of the City can be divided into three categories: governmental funds, and proprietary funds.
Governmental funds. Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and balances left at year-end that are available for spending.
These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The difference between the results in the Governmental Fund financial statements to those in the Government wide financial statements are explained in a reconciliation following each Governmental Fund financial statement.
In addition to the major funds reported separately on the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance, the City also maintains 7 special revenue funds and one capital project fund. Data from these funds are combined into a single, aggregated presentation referred to as other governmental funds.
Individual fund data for each of these non-major governmental funds are provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all of its governmental and proprietary funds. A budget comparison statement has been provided for the General Fund to demonstrate compliance with this budget.
This comparison can be found on page 52 of this report.
The basic governmental fund financial statements can be found on pages 16 to 22 of this report.
Proprietary funds. When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Within the category of proprietary funds are Enterprise Funds and Internal Service Funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its Refuse activity. Internal service funds are an accounting devise used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its Municipal Self Insurance costs. Because these services predominantly benefit governmental rather than business-type functions, this fund has been included within the governmental activities in the governmentwide financial statement.
The basic proprietary fund financial statements can be found on pages 23 to 25 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 27 to 49 of this report.
Other Information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 58 to 61 of this report. 6 104
Governmental-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.
The City’s net position for fiscal years 2019-20 and 2020-21 are shown in Table 1. In the City of Rolling Hills, total assets and deferred outflows exceeded total liabilities and deferred inflows by $8,156,622 at June 30, 2021. This is a slight decrease from prior year. Overall, the City’s financial position has been very stable over the last few years, which is a good thing to see. 2021 2020 2021 2020 2021 2020
Assets:
Current and other assets $ 8,344,698 8,319,369$ 54,046$ 519,911$ 8,398,744$ $ 8,839,280 Capital assets 684,427 613,790 - 684,427 - 613,790
Total Assets 9,029,125 8,933,159 54,046 519,911 9,083,171 9,453,070 Deferred outflows of
resources:
Pension/OPEB related items 236,068 236,265 - 236,068 236,265 Liabilities:
Current and other liabilities 1,088,082 937,253 - 412,545 1,088,082 1,349,798 Total Liabilities 1,088,082 937,253 - 412,545 1,088,082 1,349,798 Deferred inflows of resources:
Pension related items 74,535 92,719 - - 74,535 92,719
Net position:
Invested in capital assets 684,427 613,790 684,427 - 613,790 Restricted 2,380,775 2,386,275 2,380,775 - 2,386,275
Unrestricted 5,037,374 5,139,387 54,046 107,366 5,091,420 5,246,753 Total Net Position 8,102,576$ 8,139,452$ 54,046$ 107,366$ 8,156,622$ $ 8,246,818 Government Activities Business Activities Primary Government Total
Table 1
City of Rolling Hills
Net Position
Of the City of Rolling Hills net position shown in the bottom section of Table 1, 8.4% reflects its investment in capital assets. An additional portion of the City of Rolling Hills net position, 29.2% represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position of $5,091,420 (62.4%) may be used to meet the government’s ongoing obligations. It is worth noting that the unrestricted net position of over $5 million is approximately 150% of total expenditures. This puts the City in a very strong financial position relative to most cities across the country, which provides a high level of resources to respond to natural disasters, economic downturns such as the Great Recession in 2008, and other unexpected events that may call on these resources. 7 105
Governmental Activities. A summary of the changes to the net position is provided in Table 2 below.
As previously noted, the governmental activities category includes all City funds except for the Refuse Collection Fund. In addition, this category almost entirely is made up of the General Fund, which is where most city services, along with tax revenues that primarily pay for those services, are reported.
As shown in Table 2 above, the City’s governmental activities decreased slightly by $36,876 during the current fiscal year. Excluding transfers, the year ended with a small surplus of $7,830. Given that the originally adopted fiscal year 2021 General Fund budget called for the use of reserves in the amount of $348,518, the year-end results are quite favorable.
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for Services $ 247,203 $ 414,416 $ 784,200 $ 789,835 $ 1,031,403 $ 1,204,251 Operating Grants and contributions 494,533 275,477 - - 494,533 275,477 General revenues:
Property taxes 1,222,948 1,201,368 - - 1,222,948 1,201,368 Franchise taxes 10,753 14,498 - - 10,753 14,498
Other taxes 116,711 51,856 - - 116,711 51,856
Motor vehicle in-lieu - unrestricted 236,725 226,033 - - 236,725 226,033 Use of money and property 160,061 292,721 - - 160,061 292,721 Other 3,278 334 3,917 20,154 7,195 20,488
Total Revenues 2,492,212 2,476,703 788,117 809,989 3,280,329 3,286,692 Expenses:
General government 1,105,892 1,004,875 - - 1,105,892 1,004,875 Public safety 399,379 394,187 - - 399,379 394,187
Planning and development 768,665 835,459 - - 813,918 835,459 Recreation - 2,341 - - - 2,341
Public works 210,446 158,591 - - 165,193 158,591
Refuse collection - - 886,143 856,144 886,143 856,144
Total Expenses 2,484,382 2,395,453 886,143 856,144 3,370,525 3,251,597 Excess (Deficiency) Before Transfers 7,830 81,250 (98,026) (46,155) (90,196) 35,095 Transfers (44,706) 24,000 44,706 (24,000) - -
Increase (Decrease) in Net Position (36,876) 105,250 (53,320) (70,155) (90,196) 35,095 Net Position - Beginning 8,139,452 8,034,202 107,366 177,521 8,246,818 8,211,723 Net Position - Ending $ 8,102,576 $ 8,139,452 $ 54,046 $ 107,366 $ 8,156,622 $ 8,246,818 Total
Government Activities Business Activities Primary Government Table 2
City of Rolling Hills
Changes in Net Position
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Another thing to note is that the fiscal year 2021 results are only slightly below the results in fiscal year 2020, which indicates a certain degree of stability given that both revenues and expenditures have not fluctuated very much over the last two years.
Business-Type Activities. The program for the business-type activities includes refuse collection operations.
Refuse collection services are considered a utility and, as such, are typically fully funded from direct charges to customers utilizing these services. For this reason, they tend to operate much like the private sector and thus are classified as a “business-type activity.” In the case of the City’s refuse operation, refuse rates have been partially subsidized by unrestricted General Fund revenues since 2016 in order to keep rates flat at $1,100 per year per parcel in spite of increases each year to the contracted services provided by a private hauling company. In fiscal year 2021, the General Fund transferred $68,706 to the Refuse Collection Fund.
This was partially offset by a transfer from the Refuse Collection Fund of $24,000 back to the General Fund to cover administrative overhead costs. This explains the net transfer of $44,706 shown in Table 2 above.
The net result of operations was a decrease in net position of $53,320, reducing the net position to just $54,046.
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of fiscal year 2020-21, the City’s governmental funds reported combined ending fund balances of $7,556,283, which indicates a very strong financial position, largely due to the General Fund. While this is a decrease of $48,651 from the previous year, overall the net position has been stable over the last few years.
In contrast to governmental funds as a whole, the General Fund’s financial position slightly improved by $33,195 for a net position at June 30, 2021 of $5,650,328. This is a much better result than the dollar amounts may suggest given the original fiscal year 2021 budget anticipated a deficit of $478,845. Excluding net transfers of -$40,431, which are generally more discretionary, the net result of operations (operating revenues less operating expenditures) was $73,626.
Overall General Fund expenditures increased by approximately $25,245 from prior year. Although revenues also did not change much, increasing slightly from fiscal year 2020 by $61,395, individual revenue categories changed more dramatically from the prior year. For example, property taxes increased by 1.8% to $1,222,948 from the prior year. With property tax revenues making up 64% of General Fund operating revenues, growth is welcomed and helps the City keep up with the increasing costs of providing services.
Although much smaller, real property transfer tax revenue almost doubled to $93,449. The City also received or earned approximately $113,000 in one-time revenues, including $63,000 in Proposition A exchange revenues as a result of providing other neighboring cities $84,000 of the City’s restricted Proposition A revenues. The remaining $50,000 is funding received from the State as COVID relief funds.
On the flip side, General Fund revenues License and Permits continues its decline that started after peaking in fiscal year 2018 at $739,138 and has fallen to $183,378 in fiscal year 2021. From the prior year alone, these revenues fell by 50.3%. This is directly tied to the impacts of the pandemic on building activity and building-related permit revenues. Although property tax revenues have remaining strong, due to the strength 9 107
of the real estate market in spite of the pandemic, this decline has put an overall strain on the General Fund from a budgetary perspective as discussed more below.
Another decline is in Use of Money and Property revenue which fell by approximately $125,000 to $159,203. This loss is entirely due to decreases in the interest rates during the fiscal year and the requirement to adjust investments for unrealized losses in investments.
The Underground Utility Fund on the City’s governmental funds balance sheet is a major fund. The Capital Projects – Utility Fund provides funds for consultant and construction services for underground utilities projects and other infrastructure improvements. The Capital Projects – Utility Fund has a total fund balance of $1,383,880. In fiscal year 2019, the City exchanged $675,295 with a neighboring City and received Southern Cal Edison Rule 20A credits of $1,125,491 for undergrounding projects. Virtually all of these credits will be used starting in fiscal year 2022 for two undergrounding projects, one on Crest Road East and other on Eastfield Drive.
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in greater detail.
Ending unrestricted net position for the Refuse Collection - Enterprise Fund is $54,046. The total change in net position for the Refuse Collection - Enterprise Fund was a net position decrease of $53,320.
Ending unrestricted net position for the Municipal Self Insurance Fund - Internal Service Fund was unchanged at $260,374
General Fund Budgetary Highlights
The originally adopted fiscal year 2021 budget, plus amendments, was unbalanced. Anticipated revenues of $2,134,400 were $451,845 below budgeted expenditures of $2,586,245. However, actual revenues including transfers came in slightly higher than originally anticipated at $2,144,560, and actual expenditures were $2,111,365 for a net result of $33,195. The largest variance on the revenue side was in property taxes. The budget of $1,247,600 assumed a normal growth of approximately 2-3%; however, actual revenues grew by
6.5% to $1,350,412. Otherwise, all revenues were close to budgeted amounts. On the expenditure side, the favorable variance was largely due to salary and benefit savings caused by staff turnover, as well as other line-items with varying levels of savings.
Capital Asset and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021 amounts to $684,427. This investment includes land for the City Hall campus, tennis courts, Poppy Trail land, Hesse’s Gap, Hix Ring and Storm Hill Park. Additional information on the City of Rolling Hills capital assets can be found in Note 5 on page 38 of this report.
Long-term Debt. The City has no bonded indebtedness. At the end of the current fiscal year, the City’s compensated absences decreased by $27,496 to $46,759.
Other Post-Employment Health Care Benefits
The City offers its retired employees medical benefits through CalPERS, which provides medical insurance benefits to eligible retirees. Through CalPERS, the City pre-funds these benefits while the employees are actively working. Pursuant to GASB Statement 78, adopted during fiscal year 2017-18, the City is required to recognize a liability for any unfunded accrued liabilities as determined by an actuary. As of June 30, 2021, the City’s total accrued liability was $411,066. However, this liability was offset by the prefunded investments held by CalPERS on the City’s behalf which totaled $657,747. As a result, the City’s net 10 108
position was a net asset of $246,681, which is included on the Statement of Net Position. See Note 9 on pages 46 to 49.
Pension Plan Obligations
The City provides a defined benefit pension plan to its employees which is administered by CalPERS.
Details of this pension plan can be found in Note 8 found on page 41. Pursuant to GASB Statement 68, the City reports any unfunded accrued liabilities in its financial statements. As of June 30, 2021, the net pension liability was $759,963.
Economic Factors and Next Year’s Budgets
The City Council adopted the Fiscal Year 2021-22 budget in June 2021, and the following factors were considered in preparing the budget:
General Fund revenues were projected to decrease by approximately 3% in total. Fiscal year 2021-22 General Fund budgeted operating expenditures (i.e., excluding transfers) are $675,681 higher than the 2020-21 budgeted expenditures. The largest increases were in the City Administrator’s Office and Planning Department based on new subscriptions to technology installations to improve internal process, deferred maintenance at the City Hall campus, and compliance efforts simultaneously for the 5th Cycle Housing Element, and the 6th Cycle Housing Element.
Development activity was expected to remain stable, along with building-related revenue. The City’s General Fund adopted budget anticipates having a deficit after transfers in and out of $1,217,499 for Fiscal Year 2021-22. Included are transfers out to the Capital Improvement Fund of $88,000 for various projects, to the Refuse Collection Fund of $135,200 for a rate subsidy, and to the Traffic Safety Fund of $10,000 for road striping.
Contacting the City’s Financial Department
This financial report is designed to provide a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City’s Finance Department at the City of Rolling Hills, 2 Portuguese Bend Road, Rolling Hills, California 90274. 11 109
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CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $ 6,812,708 $ - $ 6,812,708
Receivables:
Accounts 123,446 54,046 177,492
Accrued interest 11,748 - 11,748
Deposits 675,295 - 675,295
Restricted cash and investments 474,820 - 474,820
Capital assets not being depreciated 658,634 - 658,634
Capital assets, net of depreciation 25,793 - 25,793
Net other post-employment benefits asset 246,681 - 246,681 Total Assets 9,029,125 54,046 9,083,171
Deferred Outflows of Resources:
Pension deferrals 195,138 - 195,138
Other post-employment benefit deferrals 40,930 - 40,930 Total Deferred Outflows of Resources 236,068 - 236,068
Liabilities:
Accounts payable 245,210 - 245,210
Accrued liabilities 8,782 - 8,782
Deposits payable 27,368 - 27,368
Compensated absences, due within one year 12,000 - 12,000 Noncurrent liabilities:
Compensated absences 34,759 - 34,759
Net pension liability 759,963 - 759,963
Total Liabilities 1,088,082 - 1,088,082
Deferred Inflows of Resources:
Pension deferrals 47,197 - 47,197
Other post-employment benefit deferrals 27,338 - 27,338 Total Deferred Inflows of Resources 74,535 - 74,535
Net Position:
Investment in capital assets 684,427 - 684,427
Restricted:
Public safety 33,249 - 33,249
Public works 276,452 - 276,452
Capital projects 1,587,045 - 1,587,045
Quimby Act 9,209 - 9,209
Pension stabilization trust 474,820 - 474,820
Unrestricted 5,037,374 54,046 5,091,420
Total Net Position $ 8,102,576 $ 54,046 $ 8,156,622
JUNE 30, 2021
Primary Government
The notes to financial statements are an integral part of this statement. 13 111
CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Operating
Charges for Contributions
Expenses Services and Grants
Functions/Programs
Governmental Activities:
General government $ 1,105,892 $ 473 $ 63,000
Public safety 399,379 23,194 157,731
Planning and development 768,665 223,536 -
Public works 210,446 - 273,802
Total Governmental Activities 2,484,382 247,203 494,533 Business-Type Activities:
Refuse collection 886,143 784,200 -
Total Business-Type Activities 886,143 784,200 -
Total $ 3,370,525 $ 1,031,403 $ 494,533
General Revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position, Beginning of the Year
Net Position, End of the Year
Program Revenues
The notes to financial statements are an integral part of this statement. 14 112
Primary Government
Governmental Business-Type
Activities Activities Total
$ (1,042,419) $ - $ (1,042,419)
(218,454) - (218,454)
(545,129) - (545,129)
63,356 - 63,356
(1,742,646) - (1,742,646)
- (101,943) (101,943)
- (101,943) (101,943)
(1,742,646) (101,943) (1,844,589)
1,222,948 - 1,222,948
23,262 - 23,262
10,753 - 10,753
93,449 - 93,449
236,725 - 236,725
160,061 - 160,061
3,278 3,917 7,195
(44,706) 44,706 -
1,705,770 48,623 1,754,393
(36,876) (53,320) (90,196)
8,139,452 107,366 8,246,818
$ 8,102,576 $ 54,046 $ 8,156,622
Net (Expenses) Revenues and Changes in Net
Position
The notes to financial statements are an integral part of this statement. 15 113
CITY OF ROLLING HILLS, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Special
Revenue Fund
Capital Projects
Fund
General
Assets:
Cash and investments $ 5,155,284 $ 167,039 $ 708,585
Receivables:
Accounts 123,446 - -
Accrued interest 11,748 - -
Deposits - - 675,295
Restricted cash and investments 474,820 - -
Total Assets $ 5,765,298 $ 167,039 $ 1,383,880
Liabilities:
Accounts payable $ 78,820 $ 149,000 $ -
Accrued liabilities 8,782 - -
Deposits payable 27,368 - -
Total Liabilities 114,970 149,000 -
Fund Balance:
Restricted:
Public safety - police - - -
Grants - public works - 18,039 -
Capital projects - - 1,383,880
Quimby Act - - -
Pension stabilization trust 474,820 - -
Unassigned 5,175,508 - -
Total Fund Balance 5,650,328 18,039 1,383,880
Total Liabilities and Fund Balance $ 5,765,298 $ 167,039 $ 1,383,880 Underground
Transit Fund Utility Fund
The notes to financial statements are an integral part of this statement. 16 114
CITY OF ROLLING HILLS, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Deposits
Restricted cash and investments
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Total Liabilities
Fund Balance:
Restricted:
Public safety - police
Grants - public works
Capital projects
Quimby Act
Pension stabilization trust
Unassigned
Total Fund Balance
Total Liabilities and Fund Balance
Nonmajor Total
Governmental Governmental
Funds Funds
$ 521,426 $ 6,552,334
- 123,446
- 11,748
- 675,295
- 474,820
$ 521,426 $ 7,837,643
$ 17,390 $ 245,210
- 8,782
- 27,368
17,390 281,360
33,249 33,249
258,413 276,452
203,165 1,587,045
9,209 9,209
- 474,820
- 5,175,508
504,036 7,556,283
$ 521,426 $ 7,837,643
The notes to financial statements are an integral part of this statement. 17 115
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CITY OF ROLLING HILLS, CALIFORNIA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds $ 7,556,283
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 684,427
Compensated absences are not due and payable in the current period, and therefore, are not reported in the funds. (46,759)
Governmental funds report all pension contributions as expenditures; however, in the statement of activities, the excess/deficiency of the total pension liability over/under the plan fiduciary net position is reported as a net pension liability/asset. (759,963) Pension-related deferred outflows of resources that have not been included as financial uses in the governmental fund activity are as follows:
Contributions made after the actuarial measurement date $ 92,977 Difference between expected and actual experiences 39,163 Net difference between projected and actual earnings on plan investments 22,576 Adjustments due to differences in proportions 40,422 195,138 Pension-related deferred inflows of resources that have not been included as financial resources in the governmental fund activity are as follows:
Changes in assumptions (5,420)
Difference in proportionate share (41,777) (47,197)
Governmental funds report all other post-employment benefits contributions as expenditures; however, in the statement of net position, the excess of the plan fiduciary net position over the total other post-employment benefits liability is reported as a net other post-employment benefits asset. 246,681 Other post-employment benefits-related deferred outflows of resources that have not been included as financial uses in the governmental fund activity are as follows:
Contributions made after the actuarial measurement date 18,424 Assumption changes 16,379
Differences between projected and actual return on assets 6,127 40,930 Other post-employment benefits-related deferred inflows of resources that have not been included as financial resources in the governmental fund activity are as follows:
Differences between expected and actual experience (25,507) Differences between projected and actual return on assets (1,831) (27,338) Internal service funds are used by management to charge the costs of certain activities, such as equipment and technology replacement, to individual funds.
The assets and liabilities of the internal service funds must be added to the statement of net position. 260,374
Net Position of Governmental Activities $ 8,102,576
The notes to financial statements are an integral part of this statement. 19 117
CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special
Revenue Fund
Capital Projects
Fund
General
Revenues:
Taxes $ 1,350,412 $ - $ -
Licenses and permits 183,378 - -
Intergovernmental 369,130 69,642 -
Charges for services 40,631 - -
Use of money and property 159,203 292 -
Fines and forfeitures 4,793 - -
Miscellaneous 3,278 - -
Total Revenues 2,110,825 69,934 -
Expenditures:
Current:
General government 1,061,393 - -
Public safety 223,199 - -
Planning and development 749,794 - -
Public works - 149,000 7,120
Capital outlay 2,813 - 39,345
Total Expenditures 2,037,199 149,000 46,465
Excess (Deficiency) of Revenues
Over (Under) Expenditures 73,626 (79,066) (46,465)
Other Financing Sources (Uses):
Transfers in 33,735 - -
Transfers out (74,166) - -
Total Other Financing Sources (Uses) (40,431) - -
Net Change in Fund Balance 33,195 (79,066) (46,465)
Fund Balance, Beginning of the Year 5,617,133 97,105 1,430,345 Fund Balance, End of the Year $ 5,650,328 $ 18,039 $ 1,383,880 Transit Fund
Underground
Utility Fund
The notes to financial statements are an integral part of this statement. 20 118
CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance, Beginning of the Year
Fund Balance, End of the Year
Nonmajor Total
Governmental Governmental
Funds Funds
$ - $ 1,350,412
- 183,378
310,887 749,659
- 40,631
566 160,061
- 4,793
- 3,278
311,453 2,492,212
- 1,061,393
176,180 399,379
- 749,794
53,753 209,873
33,560 75,718
263,493 2,496,157
47,960 (3,945)
5,460 39,195
(9,735) (83,901)
(4,275) (44,706)
43,685 (48,651)
460,351 7,604,934
$ 504,036 $ 7,556,283
The notes to financial statements are an integral part of this statement. 21 119
CITY OF ROLLING HILLS, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds $ (48,651) Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays was less than depreciation expense in the current period.
Capital outlay $ 75,145
Depreciation (4,508) 70,637
Compensated absences 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. (27,496)
Pension obligation 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. (49,717)
Other post-employment benefits obligation 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. 18,351 Change in Net Position of Governmental Activities $ (36,876) The notes to financial statements are an integral part of this statement. 22 120
CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Governmental
ActivitiesInternal
Service Fund
Assets:
Current:
Cash and investments $ - $ 260,374
Accounts receivable 54,046 -
Total Current Assets 54,046 260,374
Total Assets 54,046 260,374
Net Position:
Unrestricted 54,046 260,374
Total Net Position $ 54,046 $ 260,374
Business-Type
Activities -
Enterprise Fund
Refuse
Collection Fund
The notes to financial statements are an integral part of this statement. 23 121
CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Governmental
ActivitiesInternal
Service Fund
Operating Revenues:
Sales and service charges $ 784,200 $ -
Miscellaneous 3,917 -
Total Operating Revenues 788,117 -
Operating Expenses:
Refuse collection 886,143 -
Total Operating Expenses 886,143 -
Operating Loss Before Transfers (98,026) -
Transfers in 68,706 -
Transfers out (24,000) -
Change in Net Position (53,320) -
Net Position, Beginning of the Year 107,366 260,374
Net Position, End of the Year $ 54,046 $ 260,374
Business-Type
Activities -
Enterprise Fund
Refuse
Collection Fund
The notes to financial statements are an integral part of this statement. 24 122
CITY OF ROLLING HILLS, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Governmental
ActivitiesInternal
Service Fund
Cash Flows from Operating Activities:
Cash received from customers and users $ 777,579 $ -
Cash paid to suppliers for goods and services (1,298,688) - Net Cash Used for Operating Activities (521,109) -
Cash Flows from Non-Capital Financing Activities:
Cash transfers out (24,000) -
Cash transfers in 68,706 -
Net Cash Used for Non-Capital Financing Activities 44,706 - Net Decrease in Cash and Cash Equivalents (476,403) -
Cash and Cash Equivalents, July 1 476,403 260,374
Cash and Cash Equivalents, June 30 $ - $ 260,374
Reconciliation of Operating Loss to Net Cash
Used for Operating Activities:
Operating loss $ (98,026) $ -
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Increase in accounts receivable (10,538) -
Decrease in accounts payable (412,545) -
Total adjustments (423,083) -
Net Cash Provided by Operating Activities $ (521,109) $ - Non-Cash Investing, Capital, and Financing Activities:
There were no non-cash transactions during the fiscal year Business-Type
Activities -
Enterprise Fund
Refuse
Collection Fund
The notes to financial statements are an integral part of this statement. 25 123
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26 124
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies The basic financial statements of the City of Rolling Hills, California (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. a. Description of Entity
The accompanying basic financial statements present the financial activity of the City of Rolling Hills. The City is the level of government primarily accountable for activities relevant to the operations of the City of Rolling Hills, California.
The City of Rolling Hills (the City) was incorporated on January 25, 1957, under the provisions of the State of California. The City operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety, sanitation, animal control, culture and recreation, public improvement planning and zoning, and general administrative services.
The Rolling Hills Community Association is not a part of the City's reporting entity because the City has no accountability for fiscal matters of the Rolling Hills Community Association. b. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include:
1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds.
Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
27 125
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued) c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. Exceptions to this general rule are charges between the City’s proprietary funds function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for various functions concerned.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when the government receives cash.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then use unrestricted resources as needed.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
The Underground Utility capital projects fund is used to facilitate the expenditures necessary to construct the City's underground utility projects.
The Transit special revenue fund is used to account for Proposition A and C funds received from the Los Angeles Metropolitan Transportation Authority. 28 126
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City reports the following major proprietary fund:
The Refuse Collection Fund is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
Additionally, the City reports the following fund types:
The internal service fund accounts for the financing of goods and services provided by one department to other departments on a cost reimbursement basis. The City’s internal service fund is for self-insurance.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the government’s proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting these definitions are reported as non-operating revenues and expenses.
d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cash and Investments
All cash and investments, except those that are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and, therefore, are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents and are shown as restricted assets for financial statement presentation purposes.
Investments for the City, as well as for its component units, are reported at fair value.
The City's policy is generally to hold investments until maturity.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." All trade and property tax receivables are shown net of allowance for uncollectibles. 29 127
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued) Prepaid Costs
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements using the purchases method.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the governmental activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost when purchased or constructed. Donated capital assets are recorded at acquisition value at the date of acquisition.
The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, equipment, and infrastructure of the primary government are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Building improvements 7-50
Improvements other than buildings 20
Computer equipment 5-20
Equipment and vehicles 5-20
Furniture and fixtures 20
Compensated Absences
It is the City's policy to permit employees to accumulate a limited amount of earned but unused vacation, which will be paid to employees in the period taken or upon separation from City's service. All vacation pay is accrued when incurred in the government-wide financial statements. In governmental funds, the cost of vacations is recognized when payments are made to employees.
Accumulated sick leave benefits are not recognized as liabilities of the City. The City's policy is to record sick leave as an operational expense in the period taken, since such benefits do not vest, nor is payment probable; however, unused sick leave is added to the creditable service period for calculation of retirement benefits when the employee retires.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and governmental fund balance sheet 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 or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.
The government has two items that qualify for reporting in this category. They are deferred outflows relating to the net pension obligation and deferred outflows related 30 128
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued) to other post-employment benefits reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, the net difference between projected and actual earnings on plan investments, changes in actuarial assumptions, differences between expected and actual experiences, and adjustments due to differences in proportions. The amounts for contributions made after the measurement period will be recognized in the subsequent fiscal year; the net difference between projected and actual earnings on plan investments will be amortized over five years; and all remaining deferrals will be amortized over the remaining expected average remaining service life.
In addition to liabilities, the statement of financial position or governmental fund balance sheet 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(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government may report one item which arises only under a modified accrual basis of accounting that qualifies for reporting in this category, accordingly, unavailable revenue, is reported only in the governmental funds balance sheet and is related to grant revenue.
These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The other item that qualifies for reporting in this category are deferred inflows relating to the net pension obligation reported in the government-wide statement of net position. These inflows are the result changes in actuarial assumptions, differences between expected and actual experiences, adjustments to proportions, and differences in the proportionate share of contributions.
These amounts are deferred and amortized over the remaining service life.
Fund Equity
In the fund financial statements, government funds report the following fund balance classification:
Non-spendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council through resolution. The City has no committed fund balance as of June 30, 2021.
Assigned include amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The assigned balance is set aside with the intent to be used for a specific purpose by the City Council through resolution.
31 129
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued) Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.
An individual governmental fund could include non-spendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications.
The City established certain a minimum fund balance policy as follows:
The General Fund, Community Facilities Fund, and Underground Utility Fund shall maintain unrestricted fund balance (amount remaining after non-spendable and restricted fund balance) equivalent to a minimum of 100% of originally adopted annual expenditures (excluding one-time expenditures greater than $25,000) before transfers plus any City Council approved committed or assigned fund balance.
Fund Equity Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
Property Tax
Property tax revenue is recognized on the basis of GASB Code Section P70, that is, in the fiscal year for which the taxes have been levied providing they become available.
Available means due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period.
The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 AM on the first day in January prior to the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, by December 10 and April 10, respectively. Unsecured personal property taxes become due on March 1 each year and are delinquent, if unpaid, on August 31. 32 130
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Organization and Summary of Significant Accounting Policies (Continued) Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD): June 30, 2019
Measurement Date (MD): June 30, 2020
Measurement Period (MP): July 1, 2019 to June 30, 2020
Other Post-Employment Benefits Plan
For purposes of measuring the net OPEB liability (asset), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by the California Public Employees’ Retirement System (CalPERS), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD): June 30, 2019
Measurement Date (MD): June 30, 2020
Measurement Period (MP): July 1, 2019 to June 30, 2020
33 131
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
II. DETAILED NOTES ON ALL FUNDS
Note 2: Cash and Investments
As of June 30, 2021, cash and investments were reported in the accompanying financial statements as follows:
Cash and Investments:
Governmental activities 6,812,708 $
Total cash and investments 6,812,708
Restricted cash and investments:
Governmental activities 474,820
Total restricted cash and investments 474,820
Total 7,287,528 $
Cash and investments as of June 30, 2021, consisted of the following:
Cash on hand $ 1,500
Demand deposits 17,554
Restricted investments (Section 115 Trust) 474,820
Investments 6,793,654
Total Cash and Investments $ 7,287,528
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated annually to the various funds based on average daily cash balances. Interest Income from cash and investments with fiscal agents is credited directly to the related fund.
a. Deposits
As of June 30, 2021, the carrying amount of the City’s deposits was $17,554 and the bank balance was $52,210. The $34,656 difference represents outstanding checks and deposits in transit.
34 132
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.
b. Investments
Under provision of the City’s investment policy, and in accordance with the California Government Code, the following investments are authorized:
U.S. Treasury Bonds, Notes and Bills
Money Market Savings Accounts
Local Agency Investment Fund (State Pool)
Deposit of Funds
c. Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee.
Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
d. Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. e. Pension Rate Stabilization Program Section 115 Trust In July 2018, the City Council authorized participation in the PARS Pension Rate Stabilization Program Section 115 Trust in order to mitigate rising pension costs through CalPERS. The initial funding amount was $185,000. The program has been established as a multiple employer trust so that public agencies regardless of size can join the program and receive the necessary economies of scale to keep administrative feels low and avoid any setup costs. The trust permits the City, under Federal and State law, to invest in a more diversified array of investments to maximize investment returns long term. The balance of the Trust at June 30, 2021 is $474,820 and is reported as restricted cash and investments.
35 133
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
f. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City mitigates its credit risk generally by following its three primary investment objectives, in order, of safety, liquidity and yield. The California Government Code generally limits allowable investments to those classes of investments with lower risk (and therefore lower yields). The City's investment policy further restricts these investments to the highest quality within a category and excludes certain otherwise allowable investments as not meeting the City's liquidity requirement.
Credit risk is measured by the assignment of a rating by a nationally recognized statistical rating organization.
As of June 30, 2021, all securities were investment grade and were legal under State and City law. Investments in U.S. government securities are not considered to have a credit risk and, therefore, their credit quality is not disclosed As of June 30, 2021, the City's investments in external investment pools and money market mutual funds are unrated. g. Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party.
As of June 30, 2021, none of the City’s deposits or investments were exposed to custodial credit risk.
h. Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. As of June 30, 2021, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer then it is exposed to credit risk. The Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this.
As of June 30, 2021, none of the City’s deposits or investment were exposed to concentration of credit risk.
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
i. Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy establishes a maximum maturity of three years for all individual investments.
As of June 30, 2021, the City had the following investments and original maturities:
1 year 1 - 3 3 - 5 Fair
or less years years Value
Investments:
Local Agency Investment Fund 3,475,996 $ $ - $ 3,475,996 - $ Money Market Saving Accounts 104,196 - 104,196 -
Certificates of Deposits 740,069 2,473,393 3,213,462 -
Restricted investments:
Money Market Funds 474,820 - 474,820 -
$ 4,795,081 $ 2,473,393 $ 7,268,474 - $
Investment Maturities (in Years)
j. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. At June 30, 2021, all of the City’s investments are valued using Level 1 inputs, with the exception of the Local Agency Investment Fund and money market funds, which are considered to be uncategorized.
Note 3: Receivables
Receivables at June 30, 2021, for the City's individual major funds, and non-major and internal service funds in the aggregate, including applicable allowances for uncollectible accounts, are detailed below. All receivables are expected to be collected within one year, except for delinquent property taxes.
Refuse
General Collection
Fund Fund Total
Accounts $ 123,446 -$ 123,446$
Taxes assessed for rubbish collection 54,046 - 54,046
Total Receivables $ 123,446 54,046$ 177,492$
Accounts Receivable
37 135
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Interfund Transfers
Individual fund operating transfers for the fiscal year ended June 30, 2021, are as follows:
Refuse
General Collection Non-Major
Funds Fund Fund Funds Total
Transfers In:
General Fund - $ 24,000 $ 9,735 $ $ 33,735
Refuse collection fund 68,706 - 68,706 -
Non-Major Funds 5,460 - - 5,460
Total $ 74,166 $ 24,000 $ 9,735 $ 107,901
Transfers Out
Of the $74,166 transferred out of the General Fund, $5,460 was transferred to the non-major governmental funds and $68,706 was transferred to the Refuse Collection Fund to support operating costs and to cover traffic safety efforts. The Refuse Collection Fund transferred out $24,000 to the General Fund to cover administrative expenditures in the current fiscal year.
The transfer of $9,735 to the General fund was to cover Measure W costs.
Note 5: Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:
Balance Balance
June 30, 2020 Increases Decreases June 30, 2021
Governmental Activities:
Capital assets, not being depreciated:
Land 564,040 $ - $ - $ 564,040 $
Construction-in-progress 19,449 75,145 - 94,594
Total Capital Assets,
Not Being Depreciated 583,489 75,145 - 658,634
Capital assets, being depreciated:
Land Improvements 176,139 - - 176,139
Equipment 11,987 - - 11,987
Fixtures 26,591 - - 26,591
Total Capital Assets,
Being Depreciated 214,717 - - 214,717
Less accumulated depreciation:
Land Improvements 176,139 - - 176,139
Equipment 3,596 2,397 - 5,993
Fixtures 4,681 2,111 - 6,792
Total Accumulated
Depreciation 184,416 4,508 - 188,924
Total capital assets
being depreciated, net 30,301 (4,508) - 25,793
Governmental Activities
Capital Assets, net 613,790 $ 70,637 $ - $ 684,427 $
38 136
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 5: Capital Assets (Continued)
During the fiscal year ended June 30, 2021, depreciation expense was $4,508 and allocated to general government functional expense.
Note 6: Compensated Absences
The following is a summary of changes in compensated absences of the City for the fiscal year ended June 30, 2021:
Balance Balance Due Within
June 30, 2020 Additions Deletions June 30, 2021 One Year Compensated Absences $ 19,263 37,960$ 10,464$ 46,759$ 12,000 Total $ 19,263 37,960$ 10,464$ 46,759$ 12,000$
Liabilities for compensated absences are typically liquidated by the General Fund.
Note 7: Liability, Insured Programs and Workers’ Compensation Protection a. Description of Self-Insured Pool Pursuant to Joint Powers Agreement The City of Rolling Hills is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
b. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. 39 137
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Liability, Insured Programs and Workers’ Compensation Protection (Continued) The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.
Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2020-21 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
c. Purchased Insurance
Pollution Legal Liability Insurance
The City of Rolling Hills participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Rolling Hills. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
Property Insurance
The City of Rolling Hills participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies.
City of Rolling Hills property is currently insured according to a schedule of covered property submitted by the City of Rolling Hills to the Authority. City of Rolling Hills property currently has all-risk property insurance protection in the amount of $1,048,388. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Crime Insurance
The City of Rolling Hills purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. 40 138
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Liability, Insured Programs and Workers’ Compensation Protection (Continued) d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21.
Note 8: Pension Plan Obligations
a. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City of Rolling Hills’ cost-sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. The City of Rolling Hills has a Miscellaneous cost-sharing plan including the Classic Tier and PEPRA Tier.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
41 139
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Pension Plan Obligations (Continued)
Below is a summary of the plans’ provisions and benefits in effect at June 30, 2021, for which the City of Rolling Hills has contracted:
Major Benefit Options Miscellaneous Misc. PEPRA
Hire date
Prior to
January 1, 2013
January 1, 2013
and thereafter
Benefit Provision
Benefit formula 2% @60 2% @62
Social Security Yes No
Full/Modified Modified Modified
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age Minumum 50 yrs
Monthly benefits, as a % of
eligible compensation 1.092% to 2.418% 1.0% to 2.5%
Required employer contribution rates 35.649% 8.483%
Required employee contribution rates 6.918% 7.250%
New entrants are not allowed in the Miscellaneous Classic Tier.
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2021, the contributions recognized as a reduction to the net pension liability for all Plans was $84,285.
b. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City of Rolling Hills reported net pension liability for its proportionate shares of the net pension liability of the Plan was $759,963. 42 140
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Pension Plan Obligations (Continued)
The City of Rolling Hills’ net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2019 and 2020, was as follows:
Miscellaneous Classic
Proportion - June 30, 2019 0.00672%
Proportion - June 30, 2020 0.00699%
Change - Increase (Decrease) 0.00026%
For the year ended June 30, 2021, the City of Rolling Hills recognized pension expense of $142,695. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to 92,977 $ - $
measurement date
Change in assumptions 5,420
Difference between expected and actual experiences 39,163 - Net difference between projected and actual
earnings on plan investments 22,576 -
Adjustment due to differences in proportions 40,422 -
Difference in proportionate share of contributions - 41,777 Total 195,138 $ 47,197 $
The $92,977 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Deferred Outflows
June 30 of Resources
2022 7,281 $
2023 20,025
2024 16,830
2025 10,828
43 141
CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Pension Plan Obligations (Continued)
Actuarial Assumptions
For the measurement period ended June 30, 2020 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2019, total pension liability.
The June 30, 2019 and the June 30, 2020, total pension liabilities were based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds
Post Retirement Benefit
Increase
Contract COLA up to 2.5% until Purchasing
Power Protection Allowance Floor on
Purchasing Power applies
Actuarial Assumptions
(1) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
Subsequent Event
On November 15, 2021, the CalPERS Board of Administration selected a new asset allocation mix that will guide the fund’s investment portfolio for the next for years, while at the same time retaining the current target rate of return. The Board also approved adding 5 percent leverage to increase investment diversification. The new asset allocation takes effect July 1, 2022 and is expected to decrease employer contribution rates from less than 1 percent to a decrease of more than 2 percent depending on the plan type. Employees in the PEPRA plans will likely see increases in their contribution rates. Contribution changes will take effect in fiscal year 2023-24.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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 plan investment expense and inflation) are developed for each major asset class.
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Pension Plan Obligations (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ 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 rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
Asset Class (1)
Assumed Asset
Allocation
Real Return
Years 1 - 10 (2)
Real Return
Years 11+ (3)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0 1.00 2.62
Inflation Assets 0.0 0.77 1.81
Private Equity 8.0 6.30 7.23
Real Assets 13.0 3.75 4.93
Liquidity 1.0 0.0 (0.92)
(1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability/ (asset) of the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower (6.15 percent) or 1% point higher (8.15 percent) than the current rate:
Plan's Net Pension
Liability/(Assets)
Discount Rate - 1%
(6.15%)
Current Discount Rate
(7.15%)
Discount Rate +1%
(8.15%)
Miscellaneous Plan 1,194,292 $ 759,963 $ 401,091 $
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Pension Plan Obligations (Continued)
c. Pension Rate Stabilization Program Section 115 Trust The City holds investments in a Section 115 Trust for pension stabilization. The current market value of the trust is $474,820. This trust fund is not included in the calculation of the net pension liability, as the assets are not in the custody of the plan administrator, CalPERS. Refer to Note 2 for additional information.
Note 9: Other Post-Employment Health Care Benefits
a. Plan Description
The City provides retiree medical benefits through an agent multiple-employer defined benefit healthcare plan, administered by the California Public Employees’ Retirement System (CalPERS) which provides medical insurance benefits to eligible retirees. A separate financial report is not available for the plan. Employees are eligible for retiree health benefits if they retire from the City on or after age 60 with at least 5 years of service with the City and are eligible for a PERS pension.
b. Employees Covered
Membership of the plan consisted of 4 eligible active employees and 5 enrolled eligible retirees at June 30, 2021. These amounts do not reflect current retirees not enrolled in the CalPERS health plan who are eligible to enroll in the plan at a later date. c. Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council. The City must agree to make a defined monthly payment towards the cost of each retiree's coverage. The actual contribution is based on projected pay-as-you-go financing requirements. For the measurement dated ended June 30, 2020, the City’s contributions were $18,424 in total payments, which were recognized as a reduction to the OPEB liability.
d. Net OPEB Asset
The City’s net OPEB asset was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation dated June 30, 2019 to determine the June 30, 2020 total OPEB liability, based on the following actuarial methods and assumptions:
Inflation: 2.75% per year
Investment Return / Discount Rate: 6.50% per year
Healthcare Trend: 4.00% per year
Payroll Increase: 2.75% per year
Mortality: 2014 CalPERS Mortality for Active Miscellaneous Employees
Retirement Rates: 2009 CalPERS 2.0% @ 60 Rates for
Miscellaneous Employees (adjusted to reflect a
minimum retirement age of 52 for those hired
after 2012)
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Other Post-Employment Health Care Benefits (Continued) The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Assumed
Gross Return
All Equities 40.00% 7.795%
All Fixed Income 43.00% 4.500%
Real Estate Investment Trusts 8.00% 7.500%
All Commodities 4.00% 7.795%
Treasury Inflation Protected Securities (TIPS) 5.00% 3.250% Total 100.00%
e. Discount Rate
The discount rate used to measure the total OPEB liability was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
f. Changes in the OPEB Liability (Asset)
Total OPEB Fiduciary Total OPEB
Liability Net Position Liability (Asset)
Roll back balance at June 30, 2019 399,235 $ 624,277 $ (225,042) $ Service Cost 15,232 - 15,232
Interest on TOL 25,506 - 25,506
Expected Investment Income - 40,568 (40,568)
Employer Contributions - 18,424 (18,424)
Administrative Expense - (308) 308
Benefit Payments (18,424) (18,424) -
Expected Minus Actual Benefit Payments** (10,483) - (10,483) Expected Balance at June 30, 2020 411,066 664,537 (253,471) Experience (Gains)/Losses - -
Changes in Assumptions - -
Investment Gains/(Losses) - (6,790) 6,790
Net Change during 2018-19 11,831 33,470 (21,639)
Balance at June 30, 2020* 411,066 $ 657,747 $ (246,681) $ *May include a slight rounding error.
**Deferrable as an Experience Gain or Loss
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Other Post-Employment Health Care Benefits (Continued) g. Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the net OPEB asset of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease
(5.5%)
Current
Discount Rate
(6.5%)
1% Increase
(7.5%)
Net OPEB Asset (207,254) $ $ (246,681) $ (280,056)
h. Sensitivity of the Net OPEB Asset to Changes in the Healthcare Cost Trend Rate The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease
Current Healthcare Cost
Trent Rates 1% Increase
Net OPEB Asset (286,072) $ (246,681) $ (199,958) $
i. OPEB Plan Fiduciary Net Position
CalPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from CalPERS’ website at www.calpers.ca.gov.
j. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $73. As of fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent
to measurement date 18,424 $ - $
Assumption changes 16,379 -
Difference in projected and
actual return on assets 6,127 -
Experience gains/losses - (25,507)
Investment gains/losses - (1,831)
Deferred Balances 40,930 $ (27,338) $
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Other Post-Employment Health Care Benefits (Continued) The $18,424 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. All other deferred items will be amortized and recognized in pension expense as follows:
Deferred
Fiscal Year Ended (Inflows) of
June 30, Resources
2022 (405)
2023 (408)
2024 (752)
2025 (143)
2026 (1,501)
Thereafter (1,623)
Note 10: Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. Pursuant to the IRC 457 subsection (g); all amounts of compensation deferred under the deferred compensation plan, all property, or rights are solely the property and rights of the employee and beneficiaries of the plan. Deferred compensation funds are not subject to the claims of the City’s general creditors; consequently, the assets and related liabilities of the plan are not included within the City’s financial statements. The ending investment balance of the plan as of June 30, 2021, was $1,596,297.
Note 11: Commitments and Contingencies
a. Litigation
In the opinion of the California Joint Powers Insurance Authority, there are no known claims which would exceed the City's applicable coverage. The City's management is not aware of any lawsuits or claims that would have a material adverse effects on the financial position of the City.
b. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of non-compliance were disclosed by prior year's audits of the financial statements or by a prior year single audit of a Federal grant program; grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.
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CITY OF ROLLING HILLS, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Stewardship, Compliance and Accountability
General Budget Policies
The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year.
Annual budgets are adopted and presented for reporting purposes on a basis consistent with generally accepted accounting principles.
The City Council reviews a tentative budget and adopts a final budget after a public hearing is conducted to receive comments prior to adoption. The City's governing board satisfied these requirements.
Expenditures may not exceed the total annual budgeted amount in any category without the approval of the City Council. Throughout the fiscal year, monthly financial reports comparing actual figures with budgeted figures are prepared and distributed to the City Manager and members of the City Council. As these reports are reviewed, attention is drawn to variations between budgeted amounts and actual amounts and if necessary the City Council considers the need for increases in expenditure categories. The original adopted budgets are revised by the City Council during the year to give consideration to these modified expenditure categories and to unanticipated income.
It is this final revised budget including all revisions and amendments approved by the City Council subsequent to the initial budget adoption that is presented in the financial statements.
The level of appropriated budgetary control is the total adopted budget which is defined as the total budget for all funds and divisions. The City Manager may authorize transfers of appropriations within the sub-categories of the major expenditure categories of the adopted budget. Supplemental appropriations during the year must be approved by the City Council.
Unexpended or unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are reappropriated in the subsequent year's budget by action of the City Council.
Excess of expenditure over appropriation per activity is as follows:
Final Budget Expenditures Excess
Major Funds
General Fund
Capital Outlay 2,000 $ 2,813 $ $ 813
Fund
51 149
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 5,617,133 $ 5,617,133 $ 5,617,133 $ - Resources (Inflows):
Taxes 1,247,600 1,247,600 1,350,412 102,812
Licenses and permits 281,250 281,250 183,378 (97,872)
Intergovernmental 289,550 339,550 369,130 29,580
Charges for services 21,300 21,300 40,631 19,331
Use of money and property 168,000 168,000 159,203 (8,797) Fines and forfeitures 14,900 14,900 4,793 (10,107)
Miscellaneous 37,800 37,800 3,278 (34,522)
Transfers in 24,000 24,000 33,735 9,735
Amounts Available for Appropriations 7,701,533 7,751,533 7,761,693 10,160 Charges to Appropriations (Outflows):
General government 1,269,533 1,269,533 1,061,393 208,140 Public safety 291,785 291,785 223,199 68,586
Planning and Development 822,400 845,400 749,794 95,606 Capital outlay 2,000 2,000 2,813 (813)
Transfers out 177,527 177,527 74,166 103,361
Total Charges to Appropriations 2,563,245 2,586,245 2,111,365 474,880 Budgetary Fund Balance, June 30 $ 5,138,288 $ 5,165,288 $ 5,650,328 $ 485,040 The notes to required supplementary information are an integral part of this schedule. 52 150
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
TRANSIT FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 97,105 $ 97,105 $ 97,105 $ - Resources (Inflows):
Intergovernmental 57,500 57,500 69,642 12,142
Use of money and property 2,600 2,600 292 (2,308)
Amounts Available for Appropriations 157,205 157,205 167,039 9,834 Charges to Appropriation (Outflow):
Public works 135,000 135,000 149,000 (14,000)
Total Charges to Appropriations 135,000 135,000 149,000 (14,000) Budgetary Fund Balance, June 30 $ 22,205 $ 22,205 $ 18,039 $ (4,166) The notes to required supplementary information are an integral part of this schedule. 53 151
CITY OF ROLLING HILLS, CALIFORNIA
COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020 2019 2018 2017 2016 2015
Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the Net Pension Liability 0.00699% 0.00672% 0.00679% 0.00633% 0.00611% 0.00539% 0.00678% Proportionate Share of the Net Pension Liability $ 759,963 $ 688,971 $ 622,418 $ 627,859 $ 528,827 $ 369,954 $ 421,924 Covered Payroll $ 522,620 $ 458,829 $ 408,643 $ 492,817 $ 465,123 $ 453,661 $ 410,896 Proportionate Share of the Net Pension Liability as a
Percentage of Covered Payroll 145.41% 150.16% 152.31% 127.40% 113.70% 81.55% 102.68% Proportionate Share of the Fiduciary Net Position as a
Percentage of the Plan's Total Pension Liability 75.10% 75.30% 75.30% 73.30% 74.10% 78.30% 81.00% Notes to Schedule of Proportionate Share of the Net Pension Liability:
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only seven years are shown.
Changes of Assumptions: In 2018, demographic and inflation rate were changes in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a Golden Handshakes).
54 152
CITY OF ROLLING HILLS, CALIFORNIA
COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 92,977 $ 84,285 $ 68,379 $ 54,671 $ 53,328 $ 45,578 $ 34,611 Contribution in Relation to the Actuarially Determined Contribution (92,977) (84,285) (68,379) (54,671) (53,328) (45,578) (34,611) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 470,458 $ 522,620 $ 458,829 $ 408,643 $ 492,817 $ 465,123 $ 453,661 Contributions as a Percentage of Covered Payroll 19.76% 16.13% 14.90% 13.38% 10.82% 9.80% 7.63% Notes to Schedule of Plan Contributions:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization method Level percentage of pay, a summary of the current policy is provided in the table below:
Non-investment
Amortization Period 30 Years 5 Years
- Active Plans 2.750%
- Inactive Plans 0% 0% 0%
Ramp Up 5 0 0
Ramp Down 5 0 0
Asset valuation method
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Varies by Entry Age and Service
Direct rate smoothing
Source
2.750% 2.750%
5 5
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.
Driver
20 Years 20 Years
7.00% (net of pension plan investment and administrative expenses, includes inflation) All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.
The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.
2.750%
5 Golden
Handshake
Assumption/
Method
(Gain)/Loss
0%
2.750%
2.50%
2.75%
June 30, 2018
Entry Age Normal Cost Method
Investment
Benefit
Change
5 0%
30 years
55 153
CITY OF ROLLING HILLS, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET OPEB ASSET AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020 2019 2018
Measurement Date 6/30/2021 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service cost $ 15,232 $ 19,302 $ 18,785 $ 18,282
Interest on the total OPEB liability 25,506 24,323 22,828 20,310 Benefit payments (18,424) (18,424) (18,424) (17,715)
Expected Minus Actual Benefit Payments (10,483) (879) - - Experience (Gains)/Losses - (22,094) - -
Changes in assumptions - 22,803 - -
Net change in total OPEB liability 11,831 25,031 23,189 20,877 Total OPEB liability - beginning 399,235 374,204 351,015 330,138 Total OPEB liability - ending (a) 411,066 399,235 374,204 351,015 Plan Fiduciary Net Position:
Contribution - employer 18,424 18,424 18,424 17,715
Net investment income 40,568 37,919 35,713 37,288
Benefit payments (18,424) (18,424) (18,424) (17,715)
Administrative expense (308) (125) (1,017) (449)
Investment Gains/Losses (6,790) 3,053 (1,742) -
Other - - 542 -
Net change in plan fiduciary net position 33,470 40,847 33,496 36,839 Plan fiduciary net position - beginning 624,277 583,430 549,934 513,095 Plan fiduciary net position - ending (b) 657,747 624,277 583,430 549,934 Net OPEB Liability/(Asset) - ending (a) - (b) $ (246,681) $ (225,042) $ (209,226) $ (198,919) Plan fiduciary net position as a percentage of the total OPEB liability 160.01% 156.37% 155.91% 156.67% Covered-employee payroll $ 522,620 $ 458,829 $ 408,643 $ 492,817 Net OPEB asset as a percentage of covered-employee payroll 47.20% 49.05% 51.20% 40.36% Notes to Schedule of Changes in Net OPEB Asset and Related Ratios:
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.
Future years' information will be displayed up to 10 years as information becomes available.
Changes in assumptions: The mortality assumption was updated from the prior valuation. The mortality assumptions are based on the 2014 CalPERS Active Mortality for Miscellaneous Employees and 2014 CalPERS Retiree Mortality for Miscellaneaous Employees. 56 154
CITY OF ROLLING HILLS, CALIFORNIA
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020 2019 2018
$ 18,424 $ 18,424 $ 18,424 $ 17,422
(18,424) (18,424) (18,424) (17,422)
$ - $ - $ - $ -
$ 470,458 $ 522,620 $ 458,829 $ 408,643
3.92% 3.53% 4.02% 4.26%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Valuation Date June 30, 2019
Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Market value
Inflation 2.75%
Payroll Growth 2.75%
Investment Rate of Return 6.50% per annum
Healthcare cost-trend rates
Retirement Age
Mortality
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 2014 CalPERS Mortality for Active Miscellaneous Employees Entry Age Normal
Level percent of payroll over a closed rolling 15-year period
4.00%
2014 CalPERS 2.0%@60 Rates for Miscellaneous Employees
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll 57 155
CITY OF ROLLING HILLS, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments $ 9,209 $ - $ 106,575 $ 37,902
Total Assets $ 9,209 $ - $ 106,575 $ 37,902
Liabilities and Fund Balance:
Liabilities:
Accounts payable $ - $ - $ - $ 17,390
Total Liabilities - - - 17,390
Restricted:
Public safety -police - - - 20,512
Grants - public works - - 106,575 -
Capital Projects - - - -
Quimby Act 9,209 - - -
Total Fund Balances 9,209 - 106,575 20,512
Total Liabilities and Fund Balance $ 9,209 $ - $ 106,575 $ 37,902 Community
Facilities Fund
Traffic Safety
Fund Measure R COPS
Special Revenue Funds
58 156
CITY OF ROLLING HILLS, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Total Assets
Liabilities and Fund Balance:
Liabilities:
Accounts payable
Total Liabilities
Restricted:
Public safety -police
Grants - public works
Capital Projects
Quimby Act
Total Fund Balances
Total Liabilities and Fund Balance
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
$ 12,737 $ 103,249 $ 48,589 $ 203,165 $ 521,426
$ 12,737 $ 103,249 $ 48,589 $ 203,165 $ 521,426
$ - $ - $ - $ - $ 17,390
- - - - 17,390
12,737 - - - 33,249
- 103,249 48,589 - 258,413
- - - 203,165 203,165
- - - - 9,209
12,737 103,249 48,589 203,165 504,036
$ 12,737 $ 103,249 $ 48,589 $ 203,165 $ 521,426
Special Revenue Funds
Capital
Projects Fund
Measure M
Local Return
LA County
CLEEP Measure W
59 157
CITY OF ROLLING HILLS, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenues:
Intergovernmental $ - $ - $ 23,714 $ 156,727
Use of money and property 18 - 206 147
Total Revenues 18 - 23,920 156,874
Expenditures:
Current:
Public safety - - - 176,180
Public works - 5,460 - -
Capital outlay - - - -
Total Expenditures - 5,460 - 176,180
Excess (Deficiency) of Revenues
Over (Under) Expenditures 18 (5,460) 23,920 (19,306)
Other Financing Sources:
Transfers in - 5,460 - -
Transfers out - - - -
Total Other Financing Sources - 5,460 - -
Net Change in Fund Balance 18 - 23,920 (19,306)
Fund Balance, Beginning of the Year 9,191 - 82,655 39,818 Fund Balance, End of the Year $ 9,209 $ - $ 106,575 $ 20,512 Special Revenue Funds
Community
Facilities Fund
Traffic Safety
Fund Measure R COPS
60 158
CITY OF ROLLING HILLS, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenues:
Intergovernmental
Use of money and property
Total Revenues
Expenditures:
Current:
Public safety
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources:
Transfers in
Transfers out
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance, Beginning of the Year
Fund Balance, End of the Year
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
$ - $ 26,869 $ 103,577 $ - $ 310,887
28 167 - - 566
28 27,036 103,577 - 311,453
- - - - 176,180
- - 45,253 3,040 53,753
- - - 33,560 33,560
- - 45,253 36,600 263,493
28 27,036 58,324 (36,600) 47,960
- - - - 5,460
- - (9,735) - (9,735)
- - (9,735) - (4,275)
28 27,036 48,589 (36,600) 43,685
12,709 76,213 - 239,765 460,351
$ 12,737 $ 103,249 $ 48,589 $ 203,165 $ 504,036
Special Revenue Funds
CLEEP
Measure M Local
Return
LA County
Measure W
Capital Projects
Fund
61 159
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 9,191 $ 9,191 $ 9,191 $ - Resources (Inflows):
Use of money and property 100 100 18 (82)
Transfers in 11,000 11,000 - (11,000)
Amounts Available for Appropriations 20,291 20,291 9,209 (11,082) Charges to Appropriations (Outflows):
Recreation 15,000 15,000 - 15,000
Total Charges to Appropriations 15,000 15,000 - 15,000
Budgetary Fund Balance, June 30 $ 5,291 $ 5,291 $ 9,209 $ 3,918 62 160
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources (Inflows):
Transfers in 20,000 20,000 5,460 (14,540)
Amounts Available for Appropriations 20,000 20,000 5,460 (14,540) Charges to Appropriations (Outflows):
Public works 20,000 20,000 5,460 14,540
Total Charges to Appropriations 20,000 20,000 5,460 14,540 Budgetary Fund Balance, June 30 $ - $ - $ - $ -
63 161
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE R FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 82,655 $ 82,655 $ 82,655 $ - Resources (Inflows):
Intergovernmental 19,500 19,500 23,714 4,214
Use of money and property 900 900 206 (694)
Amounts Available for Appropriations 103,055 103,055 106,575 3,520 Budgetary Fund Balance, June 30 $ 103,055 $ 103,055 $ 106,575 $ 3,520 64 162
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COPS FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 39,818 $ 39,818 $ 39,818 $ - Resources (Inflows):
Intergovernmental 155,000 300 156,727 156,427
Use of money and property 1,500 (2,700) 147 2,847
Amounts Available for Appropriations 196,318 37,418 196,692 159,274 Charges to Appropriations (Outflows):
Public safety 164,898 - 176,180 (176,180)
Total Charges to Appropriations 164,898 - 176,180 (176,180) Budgetary Fund Balance, June 30 $ 31,420 $ 37,418 $ 20,512 $ (16,906) 65 163
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CLEEP FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 12,709 $ 12,709 $ 12,709 $ - Resources (Inflows):
Use of money and property 300 300 28 (272)
Amounts Available for Appropriations 13,009 13,009 12,737 (272) Charges to Appropriations (Outflows):
Public safety 2,700 2,700 - 2,700
Total Charges to Appropriations 2,700 2,700 - 2,700
Budgetary Fund Balance, June 30 $ 10,309 $ 10,309 $ 12,737 $ 2,428 66 164
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE M LOCAL RETURN FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 76,213 $ 76,213 $ 76,213 $ - Resources (Inflows):
Intergovernmental 22,100 22,100 26,869 4,769
Use of money and property 600 600 167 (433)
Amounts Available for Appropriations 98,913 98,913 103,249 4,336 Budgetary Fund Balance, June 30 $ 98,913 $ 98,913 $ 103,249 $ 4,336 67 165
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LA COUNTY MEASURE W FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources (Inflows):
Intergovernmental 110,000 110,000 103,577 (6,423)
Use of money and property 900 900 - (900)
Amounts Available for Appropriations 110,900 110,900 103,577 (7,323) Charges to Appropriations (Outflows):
Public works 38,750 38,750 45,253 (6,503)
Transfers out - - 9,735 (9,735)
Total Charges to Appropriations 38,750 38,750 54,988 (16,238) Budgetary Fund Balance, June 30 $ 72,150 $ 72,150 $ 48,589 $ (23,561) 68 166
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
UNDERGROUND UTILITY FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,430,345 $ 1,430,345 $ 1,430,345 $ - Amounts Available for Appropriations 1,430,345 1,430,345 1,430,345 - Charges to Appropriations (Outflows):
Public works 150,000 150,000 7,120 142,880
Capital outlay 85,000 85,000 39,345 45,655
Total Charges to Appropriations 235,000 235,000 46,465 188,535 Budgetary Fund Balance, June 30 $ 1,195,345 $ 1,195,345 $ 1,383,880 $ 188,535 69 167
CITY OF ROLLING HILLS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 239,765 $ 239,765 $ 239,765 $ - Resources (Inflows):
Transfers in 89,000 89,000 - (89,000)
Amounts Available for Appropriations 328,765 328,765 239,765 (89,000) Charges to Appropriations (Outflows):
Public works - - 3,040 (3,040)
Capital outlay 89,000 89,000 33,560 55,440
Total Charges to Appropriations 89,000 89,000 36,600 52,400 Budgetary Fund Balance, June 30 $ 239,765 $ 239,765 $ 203,165 $ (36,600) 70 168
Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 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
To the Honorable Mayor and Members of the City Council
City of Rolling Hills, 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 Rolling Hills, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 30, 2021.
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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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.
169
To the Honorable Mayor and Members of the City Council
City of Rolling Hills, California
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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Brea, California
April 7, 2022
170
Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 April 7, 2022
To the Honorable Mayor and Members of the City Council
City of Rolling Hills, 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 the City of Rolling Hills, California (the City) for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 7,2022. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings and Other Issues
Qualitative Aspects of Significant Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year 2020-2021. We noted no transactions entered into by the City 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 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 City’s financial statements were:
Management’s estimates of its net pension liability and net other post-employment benefits asset are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net other post-employment benefits asset in determining that they are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Significant Unusual Transactions
Management is responsible for the policies and practices used to account for significant unusual transactions. No significant unusual transactions have occurred during fiscal year 2020-2021.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
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To the Honorable Mayor and Members of the City Council
City of Rolling Hills, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.
These differences are described below. In addition, none of the misstatements detected as a result of our audit procedures were material, either individually or in the aggregate, to the financial statements taken as a whole.
Unadjusted Audit Differences Cause
Accured payroll
Accrued payroll
was not recorded (19,069) $
Cumulative effect (before effect of prior year differences) (19, 069) Effect of unadjusted audit difference - prior year -
Cumulative effect (after effect of prior year differences) (19,0 $ 69) Current Year Over
(Under) Revenues and
Expenditures/Expenses
and Changes in Fund
Balance/Equity
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Circumstances that Affect the Form and Content of the Auditor’s Report New auditing standards were implemented in fiscal year 2020-2021 related to Statement of Auditing Standards 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, through Statement of Auditing Standards 140, Supplementary Information in Relation to the Financial Statements as a Whole. These standards updated the form and content of the financial statement auditor’s report. The purpose of the change was to present an easier format for users to understand the results of the audit and management’s responsibilities.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated April 7, 2022.
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To the Honorable Mayor and Members of the City Council
City of Rolling Hills, California
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 City’s financial statements or a determination of the type of auditor’s 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.
Other Audit Findings or Issues Discussed with Management We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the City and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management discussion and analysis, the budgetary comparison schedule for the General Fund, the schedule of proportionate share of the net pension liability, the schedule of plan contributions – miscellaneous, the schedule of changes in net OPEB asset and related ratio, and the schedule of plan contributions – OPEB, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual non major fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, 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, 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.
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2020-2021 audit:
GASB Statement No. 84, Fiduciary Activities.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14 and 61.
GASB Statement No. 98, the Annual Comprehensive Financial Report. 173
To the Honorable Mayor and Members of the City Council
City of Rolling Hills, California
The following GASB pronouncements are effective in the following fiscal years’ audits and should be reviewed for proper implementation by management:
Fiscal year 2022
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
Restriction on Use
This information is intended solely for the use of City Council and management of the City of Rolling Hills and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Brea, California
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From: McKinnie Consulting
To: City Clerk
Cc: Elaine Jeng
Subject: RH City Audit -- Comments on Retirement Plan Information Date: Monday, April 25, 2022 12:06:31 PM
I have reviewed the 2021 Audit Report and have the following comments regarding the Retirement Plan information.
McKinnie Background
David McKinnie has been a retirement plan consulting actuary for about 50 years Clients have included municipalities, but primarily large corporate (i.e., Fortune 500) plans – both pension and retiree medical
Has maintained work through McKinnie Consulting for last 20 years City of Rolling Hills Retirement Plan Issue
Actuarial information is complex – two primary issues
Complex reporting format
Plan sponsors must understand how to use their information in financial management Audit report
Accountants must follow accounting procedures
Accountants may rely on other professionals (i.e., actuaries) Cal Pers Actuarial Information
Actuarial assumptions must comply with statutes
Actuarial assumptions should not conflict with legislative foundation Impact on Rolling Hills
Problem: actuarial assumptions may not be reasonable and could understate liabilities which may effectively understate undesignated funds available for ongoing operations McKinnie estimated possible understatement of liabilities (Pension Plan + Retiree Medical Plan) of $500,000 to $800,000 as of June 30, 2021
Comments in the Audit Report (pages 5 and 7 in Management Discussion and Analysis) that the unassigned or unrestricted funds are a certain percent of expenses (150% or more) may be inaccurate if retirement plan liabilities are understated – while these comments are not incorrect in the context of the Audit Report, they could be very misleading when information is translated to day-to-day use -- these comments should be removed from the Audit report as they are judgmental and could be misleading
Recommended Action
The only impact on the Audit Report is the recommended removal of the comment indicated above – has no impact on audit numbers or other comments in Audit Report If it has not been done in the past, the retirement plan information should be reviewed with a qualified actuary who has public sector experience to gain full understanding Any understatement of retirement plan liabilities should be reflected in future information for management decisions of the use of undesignated funds
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The City should review its funding strategy of the Pension and Retiree Medical Plans and adjust if needed based on reasonable actuarial assumptions This is a long term problem and requires a long-term solution – action should begin now to maintain solid future City of Rolling Hills operations
I plan to be at the April 25, 2022 City Council meeting to present this information and address any questions.
Thank you, DAVID McKinnie
David McKinnie
Rolling Hills, California 90276
Home Phone:
Cell Phone:
Email:
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Agenda Item No.: 7.J
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JANE ABZUG, DEPUTY CITY ATTORNEY
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: APPROVE MINOR ADDITION TO THE EMPLOYEE HANDBOOK AND PERSONNEL POLICY MANUAL.
DATE: April 25, 2022
BACKGROUND:
In review of the City Manager's employment agreement, the City Attorney's office determined that the Employee Handbook and Personnel Manual needs a clarification on page 2. The following footnote is added to the Employee Handbook and Personnel Manual:
The provisions of this Employee Handbook and Personnel Policy Manual apply to the position of the City Manager provided, however, that to the extent any provision in the contract for the City Manager conflicts with this Employee Handbook, the provision in the contract for City Manager shall prevail.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
HR_EHB_220425_Final.pdf
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CITY OF ROLLING HILLS
EMPLOYEE HANDBOOK
AND
PERSONNEL POLICY MANUAL
Update: April 25. 2022
178
2 INTRODUCTION
Welcome to the City of Rolling Hills! We trust you will find working for the City professionally challenging, an excellent career opportunity, a positive experience and an environment that strives to provide a work / life balance. The City prides itself on excellent customer service, the highest level of professionalism, being responsive and communicative, maintaining a small-town, rural atmosphere, and sustaining the privacy of the community. City staff are committed to public service, excellence and efficiency in the provision of services, the ICMA Code of Ethics, and the principles of democracy and professional management afforded by the Council-Manager form of government. As a member of the City team, we look forward to your positive contributions in these areas.
This handbook has been developed to provide new staff persons with important introductory information regarding the City’s personnel benefits and policies on matters relevant to all employees. On subjects not included in this handbook, please ask the City Manager or the Human Resources Director. Updates to the policies herein will be provided in separate announcements throughout your career with the City.
CITY ORGANIZATION
The City of Rolling Hills is a “contract city” that operates under the Council-Manager form of government. As a contract city, Rolling Hills contracts with the Los Angeles County Sheriff Department (Lomita Station) and Building & Safety Department (Lomita Office) for police and building permit services, respectively. Fire protection, water, electricity, natural gas, and road maintenance are also the responsibility of other non-City agencies. Under the Council-Manager form of government, the City is governed by five Council members who are elected at-large in municipal elections held every two years. City Council terms are staggered so that in one election, three members will be elected and in the next election, two members will be elected. The City Council hires a City Manager who is responsible for day-to-day operations of the City, implementing City Council policy and all aspects of staff supervision.1 The City Council also hires a City Attorney for legal counsel.
Rolling Hills is a “general law” city and, as such, its authority is established under the California State Constitution. The City has an adopted Municipal Code that contains the ordinances of the City.
UNIQUE FEATURES OF THE CITY OF ROLLING HILLS
Rolling Hills is a private, gated community under the rules and regulations of two separate and unrelated agencies, the City of Rolling Hills and the Rolling Hills Community Association (RHCA). The RHCA has authority and responsibility for road maintenance, access into the City, architectural review, and all easements and trails. Under the auspices of the RHCA, the roads in the City are not public. They are private property 1 The provisions of this Employee Handbook and Personnel Policy Manual apply to the position of City Manager; provided, however, that to the extent any provision in the contract for the City Manager conflicts with this Employee Handbook, the provision in the contract for City Manager shall prevail. 179
3 maintained by the RHCA. The City of Rolling Hills, in contrast, is responsible for land use regulation, building permits, environmental issues, traffic safety (e.g., roadway striping and signage), law enforcement through a contract with the Sheriff’s Department, emergency preparedness, municipal elections, and other typical city functions.
Approximately 75% of the City’s revenues derive from property taxes with the remaining 25% basically from building permits.
Rolling Hills is also a residential community with no business or industrial activities. The community consists of only one-story, ranch-style, single-family homes. Properties are typically one or two acres. Each lot is required to have a barn and corral or area designated for a barn and corral. There are a total of twenty-three miles of equestrian and hiking trails. Some trails are connected to trails in the Palos Verdes Peninsula Land Conservancy or other peninsula-wide trails. There is also no leash law; dogs are free to roam throughout the community. These characteristics are intended to maintain the integrity and identity of Rolling Hills as a rural community.
As a City team member, it is important to understand the distinction between the City and RHCA in order to provide residents and the public with the best customer service.
IN ROLLING HILLS, SERVICE IS THE BUSINESS!
Local government is a service-oriented and public profession. City employees directly connect with the public in many different ways. In Rolling Hills, it is an expectation that members of the City team maintain a pleasant, friendly, and cooperative demeanor to each other and in all capacities when working and communicating with the public. Care should be taken to act in a professional and respectful, courteous manner at all times, for example, on the telephone, in written communications (emails and letters), and during encounters in public settings (at meetings, the public counter, and events). City staff must keep in mind that they are ambassadors of the City and represent the organization.
With service as our business, it is the responsibility of City staff to be responsive and helpful to residents and assist the public. In that capacity, City staff also has the responsibility to exercise sound judgment and appropriate discretion to circumstances and situations.
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4 TABLE OF CONTENTS
Chapter Title Page
I Purpose and Application................................................................. 5 II Definition of Terms.......................................................................... 6 III General Provisions........................................................................ 10 IV Classification................................................................................. 12 V Compensation............................................................................... 14 VI Benefits......................................................................................... 18 VII Hours of Work............................................................................... 22 VIII Applications and Applicants.......................................................... 23 IX Examinations ................................................................................ 26 X Employment Eligibility Lists .......................................................... 28 XI Method of Filling Vacancies.......................................................... 29 XII Probationary Period ...................................................................... 30 XIII Attendance and Leaves ................................................................ 31 XIV Holidays ........................................................................................ 39 XV Changes in Employment Status.................................................... 41 XVI Separation from Employment ....................................................... 42 XVII Reports and Records .................................................................... 44 XVIII Grievance Procedures .................................................................. 46 XIX Discipline....................................................................................... 48 XX Performance Evaluations and Annual Work Plans ....................... 51 XXI Vehicle Use................................................................................... 53 XXII Professional Development............................................................ 54 XXIII Employee Standards of Conduct .................................................. 55 181
5 CHAPTER I
PURPOSE AND APPLICATION
Section 1. Purpose: The purpose of the City of Rolling Hills Employee Handbook and Personnel Policy Manual is to establish lawful procedures for dealing with personnel matters.
The personnel provisions set forth herein constitute the personnel rules and regulations for the City of Rolling Hills. Employees are expected to read this Handbook carefully, and to know and understand its contents. The City reserves the right to make changes to this Handbook at any time without prior notice. Employees’ at-will employment can only be changed by the City Council and by written agreement signed by the employee and the City Manager. Except as otherwise provided in this Handbook, no one has the authority to make any promise or commitment contrary to what is in this Handbook. Employees are responsible for knowing about and understanding those changes once they have been disseminated. The City also reserves the right to interpret the provisions of this Handbook.
This Handbook replaces all earlier Handbooks and supersedes all prior inconsistent policies, practices, and procedures.
Section 2. Application: These rules apply to all employees of the City of Rolling Hills unless a specific rule or procedure indicates otherwise.
Section 3. No Contract Created: These rules do not create any contract of employment, express or implied, or any right in the nature for a contract.
Section 4. Handbook Acknowledgement: Employees should sign the acknowledgement form at the end of this Handbook and return it to the City Manager or Designee. This will provide the City with a record that each employee has received this Handbook.
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6 CHAPTER II
DEFINITION OF TERMS
DEFINITION OF TERMS
Unless the context indicates otherwise the following terms, whenever used in this document, shall be defined as follows:
Advancement: A salary increase within the limits of the pay range established for the position.
At-Will: All employment at the City is “at-will.” This means that both employees and the City have the right to terminate employment at any time, with or without advance notice, and with or without cause. Employees also may be demoted or disciplined and the terms of their employment may be altered at any time, with or without cause, at the discretion of the City. Only the City Council has the authority to alter this arrangement, to enter into an agreement for employment for a specified period of time, or to make any agreement contrary to this at-will status. Any such agreement must be in writing, must be signed by the employee and the City Manager, and must express a clear and unambiguous intent to alter the at-will nature of the employment relationship.
Nothing contained in this Handbook or any other documents provided to employees is intended to be, nor should it be, construed as a guarantee that employment (or any benefit) will be continued for a specific time period.
For example, any salary figures provided to an employee in annual or monthly terms are stated for the sake of convenience. They are not intended to create an employment contract for one or more months or years.
Employees should ask the City Manager if they have any questions about their status as an employee at-will.
City Manager’s Designee: The person assigned to the Human Resources function (Human Resources Director).
Demotion: The movement of an employee from one class to another class having a lower maximum rate of pay. A demotion may be voluntary or involuntary.
Domestic Partner: A domestic partnership is legally established in California when all of the following requirements are met: both persons file a Declaration of Domestic Partnership with the Secretary of State; both persons have a common residence; neither person is married to someone else or is a member of another domestic partnership with someone else that has not been terminated, dissolved, or adjudged a nullity; two persons are not related by blood in a way that would prevent them from being married to each other in another state; both persons are at least 18 years of age; 183
7 either of the following: (a) both persons are members of the same sex; or (b) one or both of the persons are over the age of 62, and meet certain eligibility criteria pursuant to the Social Security Act; and both persons are capable of consenting to the domestic partnership.
Eligible: When used as a noun, means a person whose name is considered for appointment to a position.
Employment Eligibility List: A list of one or more names of persons who are being considered for a position vacancy generated from candidate resumes, the results of an examination, or some other method of identifying eligible persons.
Examinations:
(a) Open-competitive examination: An examination for a particular position which is open to all persons meeting the qualifications for the class.
(b) Promotional examination: An examination for a particular position, admission to the examination being limited to employees identified by the City Manager or Designee.
(c) Continuous examination: An open competitive examination which is administered periodically and as a result of which names are placed on an employment list, in order of final scores, for a period of not more than one (1) year.
Exempt: An employee not entitled to overtime compensation under the Fair Labor Standards Act.
Job Classifications: For the purposes of the City’s personnel rules and regulations, each position title shall correspond to the City’s list of classifications and salary range.
(a) Full-time Exempt: Various executive, administrative, and professional positions exempt from overtime requirements. (b) Full-time Non-Exempt: Positions subject to overtime requirements and working 37.5 hours per week.
(c) Hourly Benefited: Positions known as regular part-time working twelve (12) months per year and an average of twenty (20) or more hours per week on a year-round basis. Benefits are provided to regular part-time employees on a pro-rated basis.
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8 (d) Hourly Non-benefited: At-will positions also known as either seasonal part-time or part-time. These employees are sometimes referred to as “Temporary”.
(e) Seasonal Part-time: A position utilized up to 37.5 hours per week on a seasonal or partial year basis, but not more than 1,000 hours per fiscal year. If an employee identified as seasonal part time works more than 1,000 hours in a fiscal year he or she does not acquire regular employee status.
(f) Part-time: A position with an average of 19.5 hours or less per week and no more than 1,000 hours per fiscal year. If an employee identified as part time works more than 1,000 hours in a fiscal year he or she does not acquire regular employee status.
Layoff: The involuntary separation of a regular status employee or reduction to a position in a lower classification because the position is no longer needed.
Personnel Ordinance: City of Rolling Hills Municipal Code, Title 2, as amended from time to time.
Probationary Period: A working test period during which an employee is required to demonstrate his or her fitness for the duties to which he or she is appointed by actual performance of the duties of the position. The probationary period or initial period of employment is considered a part of the examination process and shall be utilized for closely observing the employee’s work to determine the employee’s fitness for the position.
Promotion: The movement of an employee from one position to another position having a higher maximum rate of pay and different job duties from the previous position.
Provisional Appointment: A temporary appointment of a person who possesses the minimum qualifications established for a particular class, and who has been appointed to a position in the absence of available eligible personnel. This is sometimes referred to as an “Interim Appointment”.
Reclassification: The change of a position from one position to another as a result of the gradual accretion or reduction of duties and/or responsibilities over time.
Regular Employee: A full-time employee who has successfully completed his or her probationary period and has been retained as an employee.
Regular Part-Time Employee: An employee who has successfully completed his or her probationary period.
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9 Rejection: The separation of an employee from employment during the probationary period or examination process.
Reinstatement: The re-employment, without examination, of a former regular employee.
Temporary Employee: An employee who has been appointed to a full-time or part-time position of limited duration.
Transfer: A change of an employee from one position to another position in having the same maximum salary limits, involving the performance of similar duties and responsibilities, and requiring the same qualifications.
Y Rate: When an employee is moved to a different position with a lower salary range, the employee will retain his/her current salary until the salary of the new position has a maximum salary rate that is equal to or higher than the current salary.
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10 CHAPTER III
GENERAL PROVISIONS
Section 1. Equal Employment Opportunity: It is the City’s policy to provide equal employment opportunity for all applicants and employees. The City does not unlawfully discriminate on the basis of race, color, religion, religious creed (including religious dress and religious grooming practices), sex (including pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender identity (including transgender identity), gender expression (including transgender expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning, or is perceived to be transitioning), sex stereotyping, national origin, ancestry, citizenship, age (40 years and over), mental disability and physical disability (including HIV and AIDS), legally protected medical condition or information (including genetic information), protected medical leaves (requesting or approved for leave under the Family and Medical Leave Act or the California Family Rights Act), military and/or veteran status, service, or obligation, reserve status, national guard status, marital status, domestic partner status, sexual orientation, status as a victim of domestic violence, sexual assault or stalking, enrollment in a public assistance program, engaging in protected communications regarding employee wages or otherwise exercising rights protected under the California Fair Pay Act, requesting a reasonable accommodation on the basis of disability or bona fide religious belief or practice, or any other basis protected by local, state, or federal laws. Consistent with the law, the City also makes reasonable accommodations for disabled applicants and employees; for pregnant employees who request an accommodation [with the advice of their health care providers] for pregnancy, childbirth, or related medical conditions; for employees who are victims of domestic violence, sexual assault, or stalking; and for applicants and employees based on their religious beliefs and practices.
The City prohibits sexual harassment and the harassment of any individual on any of the other protected bases listed above. The City also prohibits retaliation against a person who reports or assists in reporting suspected violations of this policy, cooperates in investigations or proceedings arising from a violation of this policy, or engages in other activities protected under this policy.
This policy applies to all areas of employment including recruitment, hiring, training, promotion, compensation, benefits, transfer, disciplinary action, and social and recreational programs. It is the responsibility of every manager and employee to conscientiously follow this policy. Any employee having any questions regarding this policy should discuss them with the City Manager’s Designee.
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11 Section 2. Political Activity Prohibited: City employees shall not engage in political activities in violation of Government Code Section 3201 et seq. No one employed by the City may engage in political activities on City premises, while engaged in official duties, using City equipment, or wearing an official City uniform.
Section 3. Outside Employment: No employee may hold outside employment that is incompatible with his/her City employment. Each regular employee who holds any other position in addition to City employment shall submit a written request to the City Manager prior to accepting such employment.
Section 4. Employee Duties: Employees are required to carry out the primary duties and responsibilities of their employment.
Section 5. Violation of Rules: Violation of the provisions of these rules shall be grounds for disciplinary action.
Section 6. Amendment and Revision of Rules: Amendments and revisions to these rules must be recommended by the City Manager and approved by the City Council.
Section 7. Employee Standards of Conduct and ICMA Code of Ethics: Employees are requested to be mindful of the ICMA Code of Ethics and uphold the intent of the tenets and guidelines of the Code. Employees are required to adhere to the Employee Standards of Conduct (Chapter XXIII).
Section 8. Federal Taxes: Completion of appropriate IRS forms will be required of all personnel at the time of employment. The number of exemptions claimed will determine the amount of federal tax deductions.
Section 9. Social Security: All employees, full and part time, will be required to have a Social Security number and/or meet other legal requirements including proof of citizenship or permanent residency status at the time of employment. Social Security deductions will be made according to established schedule provided by government agencies.
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12 CHAPTER IV
CLASSIFICATION
Section 1. Classification Plan: The City of Rolling Hills has an established list of classifications as follows:
Full-time Exempt
City Manager
Planning and Community Services Director
City Clerk/Executive Assistant to the City Manager
Senior Management Analyst
Senior Planner
Full-time Non-Exempt
Administrative Assistant, City Clerk Department
Code Enforcement Officer/Assistant Planner
Hourly Non-Benefited
Finance Director
Human Resources Director
Account Manager
Part-time Planning Technician, Planning Department
Each position in the City service is defined by specifications, including title, definition of the position, supervision received and exercised, a description of the duties and responsibilities of positions in each class, and the training, experience, and other qualifications to be required of applicants for positions in each class.
Section 2. Adoption, Amendment, and Revision of Plan: The list of classifications may be amended from time to time by resolution of the City Council.
Section 3. New Positions: When a new position is created, an employment eligibility list will be established before an appointment is made, unless the position is filled by a promotional appointment.
Section 4. Classification Studies: Classification studies shall be conducted from time to time to determine if the duties and responsibilities of a position have substantively changed, have become inequitably aligned in relation to other classifications within the City service, and/or are otherwise incorrectly designated. The City Manager or Designee shall conduct the classification study and as a result, a position may be reclassified to a more appropriate classification, whether new or already authorized, at a higher or lower maximum salary level.
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13 After conducting a classification study of the position(s), the City Manager will recommend classification changes, if any, to the City Council for approval.
Section 5. Qualifying Examination: A reclassification with a title change that results in a salary increase above the old classification may require of the incumbent a qualifying examination to determine whether or not the incumbent possesses the minimum qualifications for the new class. The method for the qualifying examination shall be determined by the City Manager or Designee. It may be an interview, demonstration of skills and abilities, or a written examination. An incumbent proposed for a reclassification who does not pass the qualifying examination shall retain his or her original title until such time as he or she does pass the qualifying examination.
An employee whose position is being reclassified upward and who has demonstrated competency for the position, need not take a qualifying examination.
Section 6. Y-Rate: When a reclassification results in a lower maximum rate of pay for the incumbent, the incumbent shall be “Y-Rated” at the salary level he/she has earned up to that time.
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14 CHAPTER V
COMPENSATION
Section 1. Compensation Plan: The City has established salary ranges covering all positions in the City service, showing the minimum and maximum rates of pay. The salary ranges can be found on the City’s website under the Finance Department.
Section 2. Amendment of Plan: The compensation plan may be amended from time to time by action of the City Council.
Section 3. Comprehensive Compensation Survey: A Comprehensive Compensation Survey will be conducted as needed, to assure that the City’s jobs are paid equitably against the labor market. The Survey will include each position and include labor market comparisons to:
Carson
El Segundo
Hermosa Beach
Hidden Hills
La Habra Heights
Lawndale
Lomita
Palos Verdes Estates
Rancho Palos Verdes
Rolling Hills Estates
Signal Hill
Section 4. Salary upon Initial Hire: The City Manager shall have the discretion to place the employee at a salary level within the salary range of the position into which the employee is hired.
Section 5. Merit Advancement: The City Manager has the authority and discretion to adjust all regular and part-time employee salaries within their range at any time. The City Manager shall justify a salary change within the range with documentation and based on the performance and skill-level of the employee.
Section 6. Evaluation: Each employee will be formally evaluated annually on the anniversary of his or her employment in regards to the employee’s performance of his or her work responsibilities. In the evaluation, the City Manager will consider and evaluate the employee’s salary for a potential merit advancement. If the evaluation is untimely and in the evaluation, the employee is deemed meritorious of a salary adjustment within the salary range, the employee will receive the increase retroactively. Performance evaluations and Annual Work Plans will be tracked by the City Manager or his or her Designee.
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15 Section 7. Probationary Period: At the end of the probation period and annually thereafter on the anniversary date of hire, each employee will be evaluated by the City Manager with regard to work performance. An adjustment to the base salary within the salary range will be considered. Adjustments to the base salary are subject to the determination and approval of the City Manager; adjustments to the base salary upon completion of the probation period are not automatic.
Section 8. Effective Date of Increase: Salary increases shall be effective the first day of the pay period following the approved effective date.
Section 9. Salary on Promotion: An employee promoted to a position having a greater maximum salary will be placed at a salary that results in not less than a three and one-half percent (3.5%) increase above the employee’s current regular salary. The City Manager may establish the salary at a higher level within the range.
Section 10. Salary on Demotion: An employee who is demoted will be placed within the salary range for the position into which demoted. The salary will be set at a level that is lower and closest to the salary the employee was receiving before the demotion.
Section 11. Salary on Reclassification: An employee whose position title is changed but will be performing similar duties will receive the salary set forth below. (a) If the new position title maintains the same salary range, the salary will not change.
(b) If the new position title has a higher salary range, at the discretion of the City Manager, the salary adjustment will be determined in the same manner as a promotion.
(c) If the new position title has a lower salary range, the employee will be Y-rated.
Section 12. Pay Periods: Employees shall be compensated by paycheck or electronic transfers every two weeks. Checks or electronic transfers in payment for compensation will be made available by the City to employees.
Section 13. Bilingual Pay: The City does not provide a bilingual premium pay differential in addition to regular pay for employees who are requested by the City to use bilingual skills during their scheduled work hours on a recurring basis.
Section 14. Overtime:
(a) As a matter of general policy, the City does not permit employees to work overtime and will provide adequate staff to handle normal 192
16 operations. However, non-exempt employees may be required to work overtime at the discretion of the City Manager.
(b) Overtime for non-exempt employees is defined as hours assigned to be worked and actually worked in excess of thirty-seven and onehalf (37.5) hours in the designated work week. (c) Non-exempt employees working overtime when not expressly authorized to do so shall be subject to discipline.
(d) Overtime assigned and worked by non-exempt employees shall be compensated at time and one-half their regular rate of pay. The employee may request, and the City Manager shall have the unrestricted discretion to approve or not approve, compensation in the form of accrued compensatory time at time and one-half pay, except an employee may not accrue more than thirty-seven and onehalf (37.5) hours compensatory time at any time. (e) If a non-exempt employee is required to work on an observed holiday beyond the regular thirty-seven and one-half (37.5) hour work week, he or she shall be entitled to pay at the rate of two (2) times the regular rate of pay.
(f) Employees who are exempt from the Fair Labor Standards Act (FLSA) are compensated on a salary basis and are not eligible for overtime.
Section 15. Acting Pay: An employee who is provisionally appointed to an acting or interim position that is in a higher salary range than that of the position title in which the employee is normally assigned shall receive acting compensation.
(a) Acting pay shall be provided only for appointments with duration greater than twenty-one (21) consecutive calendar days and shall be retroactive to the effective date of the acting appointment and continue until completion of appointment.
(b) Such acting appointments shall be made in writing by the City Manager.
(c) Compensation shall be at the entrance of the salary range of the acting position or a minimum of three and one-half percent (3.5%) higher than the employee receives, whichever is greater.
Section 16. Cost of Living Adjustment (COLA): Annually, employees will receive a COLA in their salary or hourly rate based on the month of March, Los Angeles/Orange County/Riverside Consumer Price Index (CPI) for all items. The COLA will be applied to employee salaries or hourly rates 193
17 automatically not to exceed 3.5% on July 1 of every year based on the March CPI.
On July 1 of every year, position salary ranges will also adjust automatically.
The salary range will adjust based on the month of March, Los Angeles/Orange County/Riverside CPI for all items not to exceed 3.5%.
Section 17. Exceptional Performance Recognition: The City’s program for recognizing an employee’s exceptional performance is described in Chapter XX. 194
18 CHAPTER VI
BENEFITS
Section 1. Retirement Plan:
(a) The City is a member of the Public Employees Retirement System (PERS). Eligible Regular employees of the City hired prior to December 31, 2012 are enrolled in the 2%@60 retirement program.
Under PERS Regulations, employees hired on or after January 1, 2013 and who are considered “Classic” employees will be enrolled in the 2%@60 retirement program. Eligible Regular employees of the City hired on or after January 1, 2013 are enrolled in the 2%@62 and
2.5%@67 retirement program consistent with State Assembly Bills 340 and 197 enacted September 12, 2012 and City Resolution No. 1136. All conditions of PERS apply to all eligible Regular employees of the City of Rolling Hills.
(b) The pensionable compensation used to calculate the defined benefits paid to employees hired after December 31, 2012 will not exceed the maximum amount specified in the federal retirement system (United States Code Title 42 § 430(b), as may be amended from time to time); as adjusted annually based on changes to the Consumer Price Index for all Urban Consumers.
(c) Regular employees hired after December 31, 2012 pay 100% of the employee portion of the retirement program or 50% of the “normal cost,” defined as that portion of the present value of projected benefits under the defined benefit plan that are attributable to the current year of service (also known as the “Member Contribution Rate as a percentage of payroll”), whichever is higher. Exercising its authority to implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC), all employee’s payments for the retirement program are tax deferred. For employees hired after December 31, 2012, the City is prohibited from making contributions greater than the amount specified in the federal retirement system. (d) The final compensation is the average full time monthly pay rate for the highest 36 consecutive months. If the service is coordinated with Social Security, the final compensation will be reduced according to State law. “Compensation” is defined as the normal monthly rate of pay or base pay for the employee for services rendered on a full-time basis during normal working hours, pursuant to the City’s pay schedule. It does not include pay for unused sick leave or time off or overtime pay.
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19 (e) Employees are permitted to replenish their PERS out of their own funds, if they have chosen to remove those funds from PERS following termination of previous employment.
(f) All employees, full and part time, are required to participate in the Social Security System.
(g) Newly retired former employees, or employees of another PERS member, are required to sit out for at least 180 days before returning to work for the City to avoid forfeiture of their retired status. Such employees also cannot serve more than 960 hours in a calendar year. This subsection shall not apply to employees hired to fill a critically needed position, where the appointment has been approved by City Council in a public meeting.
(h) Any public official or employee who is convicted of a felony related to performance of his or her official duties, related to seeking an elected office or appointment, in connection with obtaining benefits, or committed against a child who the official or employee has contact with as part of his or her official duties, forfeits all pension benefits earned or accrued after the date of the conviction.
Section 2. Health and Life Insurance:
(a) The City maintains Workers’ Compensation Insurance for workrelated injuries. Group term life insurance, long-term disability insurance, health insurance, prescription drug, dental insurance, and vision insurance is also provided for all Regular Exempt and NonExempt full-time employees who have successfully completed their twelve month probationary period.
(b) The City of Rolling Hills provides 100% of the single-party premium for health, dental, and vision insurance, inclusive of prescription drug coverages within the health plans, of each Regular employee who has successfully completed their probationary period. The City will pay 80% of the premium for the eligible dependents of Regular employees up to a maximum monthly family premium of $1,642.21 based on the 2015 rate for the Anthem Traditional HMO plan. The City will contribute up to a maximum monthly premium of $202 for dental insurance based on the 2015 rate for Met Life DPPO plan and up to a maximum monthly premium of $30 for vision insurance based on the 2015 rate for VSP plan2 following successful completion of the Regular employee’s probationary period.
2 Resolution 1249 sets the City’s monthly contribution to insurance premiums for the eligible dependents of regular employees for calendar year 2020, 2021, 2022 and 2023 as follows: (1) health insurance up to a maximum of $1,658.42; (2) dental insurance up to a maximum of $204.02; (3) vision insurance up to a 196
20 Information describing coverage is available from the Finance Department.
(c) Through the implementation of an IRS compliant Section 125 plan, the City will provide Regular employees with the ability to withhold pre-tax income from his/her salary to pay his/her portion of insurance premiums.
Section 3. Credit Union:
(a) Applications are available to all employees for membership in the F & A Federal Credit Union. Automatic payroll deductions may be arranged.
Section 4. Deferred Compensation and Employment Longevity Plan:
(a) The City of Rolling Hills offers an employee funded deferred compensation program. Applications are available in the Finance Department.
(b) According to the following schedule, effective July 1, 2009, the City of Rolling Hills will match employee contributions up to the IRS limit.
Years of service City match to employee’s
contribution (up to __% of
salary)
0 - 1.99 0%
2 – 2.99 1%
3 – 5.99 2%
6 – 8.99 3%
9 – 11.99 4%
12 – 14.99 5%
15+ 6%
Section 5. Other benefits:
(a) The City provides single-party health coverage for its Regular employee retirees through PERS. Heath plan options and terms of the program are governed through the City’s contract with PERS.
Regular employees hired after December 31, 2012 will be qualified to receive single-party retiree health coverage from the City providing 1) the Regular employee retires from the City of Rolling Hills and 2)
maximum of $30.30. The maximum contribution for each policy will be increased by 2% for calendar year 2024 and beyond.
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21 the Regular employee has been in the employment of the City of Rolling Hills for a minimum of 5 consecutive, uninterrupted years. (b) A surviving beneficiary of a current or former employee hired before January 1, 2013 will receive benefits through PERS, as appropriate to individual circumstances. The terms of these benefits are specified in the City’s contract with PERS.
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22 CHAPTER VII
HOURS OF WORK
Full-time employees are assigned to the 9/75 flex plan under which they will work seventyfive (75) hours in a nine (9) day period.
Section 1. The 9/75 Plan: Full-time employees work 37.5 hours over a 5-day workweek exclusive of meal periods as follows:
Alternating Week 1 Alternating Week 2
Mon - Wed: 7:30am to 5:00pm Mon - Wed: 7:30am to 5:00pm Thursday: 7:30am to 5:00pm Thursday: 7:30am to 3:30pm
Friday: 7:30am to 5:00pm Friday: off
Section 2. Alternate Work Schedule: Full-time employees may be assigned to work days or hours other than those set forth in Section 1.
Section 3. Work Week Defined: The work period or work week will begin at 12:01 p.m. on Friday and end the following Friday at 12:00 noon for all full-time employees working under the 9/75 work schedule if the employee is scheduled to be off every other Friday.
Section 4. Work Week Schedule Change: The City may change the work week when public necessity or convenience so requires.
Section 5. Request to Change Schedule: Employees for whom personal necessity requires a different schedule than above, may make a request for the alternate schedule to the City Manager. Alternate schedules must begin no earlier than 7:00 a.m. and end no later than 6:00 p.m. and will not include a shorter meal period than below.
Section 6. Meal Period: Because City employees are public employees the sections of the California Labor Code regarding mandatory meal and rest periods are not applicable. Meal periods are non-paid and nonworking time and shall be one hour for all full-time employees. Every effort will be made to schedule such meal period during the middle of the shift.
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23 CHAPTER VIII
APPLICATIONS AND APPLICANTS
Section 1. Announcement: All recruitments for positions shall be publicized by means as the City deems advisable. The announcements shall specify the title and pay of the position, duties and responsibilities of the work to be performed, minimum requirements established, the manner of making application, and other pertinent information.
Section 2. Application: Applications shall be made as prescribed on the announcement. Application forms shall require information covering training, experience, and other pertinent information. All applications must be signed by the person applying.
Section 3. Disqualification: The City Manager or Designee may reject any application which indicates on its face that the applicant does not possess the minimum qualifications required for the position or for any material cause which, in the judgment of the City Manager or Designee would render the applicant unsuitable for the position. Falsification of any information presented on the employment application shall be grounds for rejection/disqualification from the recruitment and/or termination from employment, if applicant is appointed to the position.
Section 4. Prohibition Against Nepotism: It is the policy of the City to seek the best possible candidates through appropriate search procedures. The City seeks to eliminate or limit even the appearance of impropriety where possible. As such, the City has adopted the following policy regarding application and/or hiring of employee relatives.
For purpose of this policy, “relative” shall mean a spouse, domestic partner, parent, parent-in-law, step-parent, legal guardian, sibling, step-sibling, sibling-in-law, child, step-child, child-in-law, legal ward, grandchild, or grandparent.
Each applicant is required to disclose the identity of any relative who is a current employee. An applicant’s failure to disclose a relative who is a current employee may result in the rejection of the applicant or future disciplinary action against the applicant after employment, up to and including termination.
Relatives of current employees shall not be hired into positions in which one relative may supervise, directly or indirectly, any other relative. One or more of the following roles, undertaken on a regular, acting, overtime, or other basis shall constitute direct or indirect supervision:
1. Occupying a position in an employee’s direct line of supervision; 200
24 2. Functional supervision, such as a lead worker, crew leader, or shift supervisor; or
3. Participating in personnel actions including, but not limited to, appointment, transfer, promotion, demotion, layoff, suspension, termination, assignments, approval of merit increases, evaluations, and grievance adjustments.
Relatives of current employees shall not be hired into positions in which one relative may work in a capacity which would allow a current employee to evaluate or control the terms, conditions, and/or performance circumstances of employment of a relative. Relatives of current employees shall not be hired into any position in which the employment of such relative has the potential for adversely impacting the supervision, safety, security, or morale of other employees. The City shall review each applicant who is a relative of a current employee to determine whether hiring the applicant would result in any of the prohibited situations. If the City Manager or Designee finds that any of those situations exists, then the applicant may be rejected, or may be considered for employment in a position that does not present the above situations.
Current employees shall not participate, directly or indirectly, in the recruitment or selection process for a position for which a relative is an applicant. Current employees having hiring powers or authority to recommend hires shall not, either directly or indirectly, seek to influence or assist in the hiring of any relative to any position within the City. Current employees shall not participate or interfere in, or otherwise attempt to influence, any personnel actions affecting his or her relative including, but not limited to, transfer, promotion, demotion, layoff, suspension, termination, assignments, approval of merit increases, evaluations, and grievance adjustments.
Change In Status. Current employees must report a change of status to the City Manager or Designee in advance of the effective date where feasible, but in no event later than a reasonable time after the effective date of the change of status. For purposes of this policy, “a change of status” is the change in the legal status or personnel status of one or more current employees.
1. Changes in legal status include but are not limited to marriage, divorce, separation, or any such change through which a current employee becomes a relative or ceases to be a relative of another current employee.
2. Changes in personnel status include but are not limited to promotion, demotion, transfer, re-assignment, resignation, retirement, or termination of a current employee who is a relative of another current employee. 201
25 Within thirty (30) days from receipt of notice, the City shall undertake a caseby-case consideration and individualized assessment of the particular work situation to determine whether the change of status has the potential for creating an adverse impact on supervision, safety, security, or morale. The City Manager or Designee shall make a good faith effort to regulate, transfer, condition, or assign duties in such a way as to minimize problems of supervision, safety, security, or morale. Notwithstanding this, the City retains the right to exercise its discretion to refuse to implement a change in personnel status due to its potential for creating an adverse impact on supervision, safety, security, or morale.
The City shall reasonably monitor and regulate both relatives’ conduct and performance for a period of one (1) year from the date of the determination.
If the City determines that a change of status has caused potential for creating an adverse impact on supervision, safety, security, or morale, the City shall re-visit the prior determination.
Depending on the nature and severity of the situation, the City may transfer one of the relatives to a similar position that would not be in violation of this policy. The transfer will be granted provided the relative qualifies and there is an opening to be filled. There can be no guarantee that the new position will be within the same classification or at the same salary level. If the situation cannot be resolved by transfer or by good faith efforts to regulate, transfer, condition, or assign duties in such a reasonable way that would not be in violation of this policy, one of the relatives must separate from City employment.
Pre-Existing Relationships. Where situations exist prior to the effective date of this policy that may be in conflict with these rules, reasonable efforts shall be made to address the situation so as to minimize potential problems of supervision, safety, security, or morale and to avoid future conflict. 202
26 CHAPTER IX
EXAMINATIONS
Section 1. Types of Examinations: The selection techniques used in the examination process shall measure the knowledge and abilities of the applicants to execute the duties and responsibilities of the position to which they seek to be appointed.
Examinations shall consist of selection techniques which will test fairly the qualifications of candidates. The City Manager or Designee may select the appropriate examination(s) to be utilized in the selection process.
Section 2. Promotional Examinations: All candidates for promotion must meet the minimum qualifications identified by the City Manager or Designee.
The City Manager or Designee will determine whether the examination is open competitive or a promotional appointment.
Section 3. Continuous Examinations: Open-competitive examinations may be administered periodically for a single position as the needs of the service require. Names shall be placed on employment lists, in order of final scores, for a period of not more than one (1) year, unless extended by the City Manager or Designee.
Section 4. Conduct of Examinations: The City Manager or Designee will determine the manner and methods and by whom examinations shall be prepared and administered.
Section 5. Reasonable Accommodation in Testing: Should an otherwise qualified applicant who is disabled request a reasonable accommodation for any part of the testing process the City may modify the process to reduce or eliminate the testing barrier.
Section 6. Background Investigations: Following a conditional offer of employment, each prospective employee shall submit to a criminal background check.
The City does not consider, distribute, or disseminate information about any of the following while conducting a criminal background check in connection with a job application: an arrest not followed by a conviction, except when the applicant is out on bail or his/her own recognizance pending trial; a referral to or participation in a pre-trial or post-trial diversion program; and a conviction that has been sealed, dismissed, expunged, or statutorily eradicated pursuant to law.
If the City’s criminal background check reveals an applicant’s prior conviction, the City shall conduct an individualized assessment to determine whether the conviction has a direct and adverse relationship with the specific job duties that may justify denying employment. The following 203
27 factors shall be considered as part of the individualized assessment: the nature and gravity of the offense or conduct; the time that has passed since the offense or conduct and completion of the of the sentence; and the nature of the job held or sought.
If the results of the City’s individualized assessment justify denying employment the applicant shall be provided with notice and an opportunity to respond within five business days. Written notice of the preliminary decision to deny employment shall be provided to the applicant. The written notice shall contain the identity of the disqualifying conviction, a copy of the conviction history report, an explanation of the applicant’s right to respond to the notice before a final decision is made, notice of the deadline to respond within five business days, and an explanation informing the applicant that the response can include evidence challenging the accuracy of the conviction history report and/or evidence of rehabilitation or mitigating circumstances.
If the City makes a final decision not to hire the applicant based on the conviction history after considering the applicant’s response the City shall provide a final determination notice that includes notice of the final denial, any existing procedure the City has for the applicant to challenge the final decision, and the applicant’s right to file a complaint with the Department of Fair Employment and Housing.
Section 7. Immigration Reform and Control Act of 1986: In compliance with the Immigration Reform and Control Act of 1986, all new employees must verify identity and entitlement to work in the United States by providing required documentation.
Section 8. Notification of Selection Process Results: Each person competing in an employment selection process shall be given notice of the results from the examination.
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28 CHAPTER X
EMPLOYMENT ELIGIBILITY LISTS
Section 1. Employment Eligibility Lists: As soon as possible after the completion of a continuous examination, the City Manager or Designee will prepare and keep available an employment eligibility list consisting of the names of applicants who qualified in the examination, arranged alphabetically.
Section 2. Removal of Applicants from Lists: The name of any person appearing on an employment eligibility list shall be removed by the City Manager or Designee if the person eligible requests in writing that his or her name be removed, fails to respond to a notice mailed to his or her last known address, or has been certified for appointment and has not been appointed.
Section 3. Use of Employment Eligibility Lists: A vacant position may be filled by the appointment of a person whose name is on an employment eligibility list for the position.
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29 CHAPTER XI
METHOD OF FILLING VACANCIES
Section 1. Types of Appointment: All vacancies shall be filled by re-employment, transfer, voluntary demotion, promotion, or from eligible applicants by a process deemed appropriate by the City Manager or Designee.
Section 2. Appointment: After interview(s) and an examination if deemed necessary for the selection of a candidate, the City Manager or Designee shall thereupon notify the person of the conditional offer of appointment, subject to passing a required medical examination and all background investigations.
Section 3. Temporary Assignments: Employees may be temporarily assigned higher or lower duties without a change in pay. Such action shall not be deemed as a transfer, demotion, promotion, or reclassification. In all cases where periodic or regular variations in assignments occur because of seasonal needs, the temporary change of duties or a change of the work schedule shall be considered as incidental to the position.
Section 4. Extended Assignment to Vacant Higher Position: Employees assigned to perform duties in a vacant higher level regular position in excess of twentyone (21) consecutive calendar days as authorized by the City Council shall be entitled to a salary rate increase to the higher level for the time actually worked in the assignment. (See CHAPTER V, Section 15, Acting Pay.) The duration of such assignment to a vacant higher position shall not exceed one (1) year. It is the responsibility of the City Manager to adjust the salary rate increase.
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30 CHAPTER XII
PROBATIONARY PERIOD
Section 1. Probationary Period: Upon initial and promotional appointment to a position, an employee must serve a probationary period of 1 year of actual and continuous service. Periods of time on paid or unpaid leave excluding five (5) days or less automatically extends the probationary period by the number of days the employee is on leave. The City Council may, by resolution, establish a longer probation period for a specified classification prior to the time of an appointment. Continuous service with the City in a temporary position may be calculated into the probationary period upon hiring the individual into a regular position at the discretion of the City Manager. Completion of the probationary period does not entitle an employee to continued employment for any length of time. Completion of the probationary period does not alter the at-will nature of the employment.
Section 2. Purpose of Probationary Period: During the probationary period, the City Manager shall review, examine, and monitor the conduct, capacity, efficiency, skill, responsibility, integrity, and effectiveness of an employee to determine whether the employee is fully qualified for employment in the position to which the employee has been appointed.
Section 3. Extension of Probationary Period: The probationary period may be extended by the City Manager for a period up to six (6) months by written notice to the employee prior to the expiration of the original probationary period.
Section 4. Reduction of Probationary Period: The probationary period may be shortened by the City Manager.
Section 5. Rejection During Probation: At any time during the probationary period an employee may be rejected from employment without cause and without right of appeal.
Section 6. Rejection During Probation From a Promotional Position: A promoted employee who has attained regular status in another position of City employment who does not successfully complete the probationary period in the promoted position may be returned to the former position without right to review or appeal unless terminated for cause.
Section 7. Use of Leave During Probation: Accrued sick leave may be used any time by the probationary employee during the probationary period. Vacation leave hours are accrued during the probationary period, but shall be available for use upon completion of 1 year of service unless otherwise approved by the City Manager.
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31 CHAPTER XIII
ATTENDANCE AND LEAVES
Section 1. Attendance: Full-time employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leave.
Absence of any employee without leave may result in disciplinary action, including discharge.
Section 2. Vacation Leave: Vacation is a right, earned as a condition of employment, to a leave of absence with pay for the recreation and well-being of the employee. If an employee has exhausted sick leave, vacation may be used for sick leave upon request of the employee and with approval of the City Manager.
(a) Employees shall accrue, on a pro-rata basis, vacation leave for completed pay periods. Such vacation allowance shall be available for use on the first day following the pay period in which it is earned; however, vacation allowance shall be available for use after one year by a probationary employee.
(b) All Full-time employees accrue vacation as follows:
Years of Service
Completed Vacation Days Accrual
0 – 3 5/6 day per month
3 1 day per month
5 1 1/4 days per month
10 1 2/3 days per month
(c) Maximum Accrual: Employees shall be permitted to accumulate a maximum of 40 days of vacation leave or the maximum amount accumulated in a two-year period of employment, whichever is less.
Employees who have accumulated the maximum amount of vacation leave shall accrue no further vacation leave until they use sufficient leave to fall below the maximum that may be accumulated. (d) Waiver of Maximum Accrual: A waiver must be requested by the employee and approved by the City Manager, for a period not to exceed thirteen (13) pay periods per fiscal year. If, at the end of the waiver period the maximum accrual amount is exceeded, vacation accrual for the affected employee will stop. No further vacation time will be accrued until the employee’s vacation leave balance is below the maximum accrual amount. In the event that the failure to utilize vacation past the thirteen pay period waiver is due to the City’s inability to allow an employee to take vacation (as opposed to an employee’s delay and/or failure to request vacation time off), the 208
32 employee may, with City Manager authorization, continue to accrue vacation.
(e) Vacation Leave Cash Out Option: In December of each year, if an employee has over two weeks of accrued vacation after using accrued vacation leave for one week (37.5 hours) of vacation during the calendar year, he or she may “cash out” up to two weeks of the accrued vacation (75 hours) at his or her base rate of pay. (f) The minimum charge against accumulated vacation leave shall be fifteen (15) minutes or multiples thereof. Vacation leave shall be compensated at the employee’s base rate of pay.
(g) The time during a calendar year at which an employee may take his or her vacation shall be determined by the City Manager with due regard for the wishes of the employee and particular regard for the needs of the City.
(h) All vacation leave requests shall be made with as much advance notice as possible, and prior approval must be given by the City Manager. When circumstances warrant and advance notice is impractical, the City Manager may approve the use of vacation leave for emergency absences. If an employee does not request time off in advance and simply does not show up for work, the City Manager may deny the use of vacation time or any leave accruals, and said employee may be subject to disciplinary action.
(i) When a fixed holiday falls within a vacation period, the holiday time shall not be charged against an employee’s earned vacation benefits.
(j) Employees who terminate or retire shall be paid for all accrued vacation leave earned at their base rate of pay at the time of their separation of employment.
(k) Employees on Unpaid Leave: Employees on Unpaid Leave do not accrue Vacation Leave.
(l) Employees not Eligible for Vacation: All part-time employees including temporary, emergency, and seasonal part time, do not accrue Vacation Leave.
Section 3. Paid Sick Leave: Employees who are hired to work at least thirty days are eligible for California Paid Sick Leave.
Paid Sick Leave may be taken for below prescribed purposes:
209
33 1. The diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee or an employee’s family member; or
2. To attend legal proceedings, or to obtain medical treatment, counseling, or other victims’ services for domestic violence, sexual assault, or stalking.
A “family member” for these purposes is defined as a child (a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis), a parent (a biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child), a spouse or registered domestic partner, a grandparent, grandchild, and sibling. Additionally, Paid Sick Leave may be used for an employee who is a victim of domestic violence, sexual assault, or stalking.
Accrual: Employees shall accrue one day of sick leave (7.5 hours) with full pay for each month of service. Sick leave shall be available for use the first day following the payroll period in which it is earned. If the employee does not take the full amount of sick leave allowed in any year, the amount not taken shall be accumulated from year to year, to a maximum of 30 days.
Separation of Employment: Upon separation of employment (voluntary termination, involuntary termination, retirement, etc.) employees are not entitled to be compensated for unused Paid Sick Leave. However, previously unused paid sick days must be reinstated if an employee separates from employment and then is rehired within one year.
To the extent possible, employees must provide reasonable advance notice of their need for Paid Sick Leave under this policy. If the need is not foreseeable, the employee must provide notice as soon as practicable. Paid Sick Leave under this policy will not constitute a break in service for the purpose of City benefits or seniority.
Minimum Use: The minimum charge against accumulated sick leave shall be fifteen (15) minutes or multiples thereof. Approved sick leave with pay shall be compensated at the employee’s base rate of pay.
Notification: Employees should notify the City Manager prior to, or within 45 minutes after the time set for the beginning of his/her regular duties if using paid sick leave. The City Manager may request a certificate issued by a licensed physician or other satisfactory proof of illness if the sick leave extends more than 3 consecutive days.
Violations: Violation of sick leave privileges may result in disciplinary action when in the opinion of the City Manager, the employee has been excessively absent or has abused such privileges. Employees who do not 210
34 call in within 45 minutes of the start of their assignment may be denied use of sick leave.
Employees on Unpaid Leave: Employees on unpaid leave do not accrue Paid Sick Leave.
Employees may donate accrued paid sick time up to two (2) days per calendar year to other employees in need of additional paid time off to seek medical treatment for themselves. Donation of paid sick time to another employee will only be permitted after that recipient employee has exhausted all other available accrued leave. The donation of paid sick time is strictly voluntary.
Section 4. Occupational Injury or Illness Leave: Whenever a person is compelled to be absent from employment with the City on account of injury or illness arising out of or in the course of that employee’s employment as determined by the Workers’ Compensation Act, the employee may elect to apply pro-rated accrued sick leave, if any, to such absence to receive compensation of an amount of the difference between the compensation received under the Workers’ Compensation Act and that of the employee’s regular pay, not to exceed the amount of the employee’s earned sick leave. An employee, in such instance, may also elect to use any earned vacation time in like manner after sick leave is exhausted. An employee, in such instance, may also elect to use any earned Floating Holiday hours in like manner after sick leave and earned vacation time is exhausted. Employees shall receive full salary in lieu of Workers’ Compensation benefits and paid sick leave for the first twenty-four (24) hours following an occupational injury or illness, if authorized absence is by order of an accepted physician under the Workers’ Compensation sections of the California Labor Code.
Section 5. Bereavement Leave: When circumstances are such and the City Manager determines that conditions warrant, full-time employees may be granted up to three (3) days of paid bereavement leave per occurrence following completion of one year of employment in the event of the death of a spouse, domestic partner, child, brother, sister, parent, parents-in-laws, or grandparent.
Section 6. Jury Duty and Witness Leave: If a regular full-time employee is required to serve as a juror, such employee shall receive regular pay less amounts received while actually performing jury service for a period of service not to exceed 10 days of jury service. The City will not pay mileage or other additional expenses incurred by jury duty. Employees will be required to provide a Jury Duty Certification form to their supervisor, to be attached to their time sheet for that time period.
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35 Employees shall be granted leave with pay when subpoenaed to testify as a witness other than as a party or an expert.
Employees absent from work due to jury duty or witness leave must notify the City Manager of the status of their leave daily.
Section 7. California CFRA Leave:
The California Family Rights Act (CFRA) provides eligible employees the opportunity to take unpaid, job-protected leave for certain specified reasons. The maximum amount of leave is twelve (12) weeks within a 12- month period. All employees who have worked at least twelve (12) months in the preceding seven (7) years and have worked at least 1,250 hours within the twelve (12) months preceding the date the leave commences are eligible for CFRA leave.
(a) Reasons for leave: CFRA leave may be used for the following reasons:
(1) To care for or bond with a newborn child.
(2) To care for or bond with a child placed with the employee and/or the employee’s registered domestic partner for
adoption or foster care.
(3) To care for an immediate family member (spouse, parent, registered domestic partner, child or registered domestic partner’s child, sibling, grandparent, or grandchild) with a serious health condition.
(4) For the employee’s serious health condition that makes the employee unable to perform his or her job (except pregnancy, which is covered under PDL and does not run concurrently with CFRA).
(5) For a qualifying military exigency related to the covered active duty or call to covered active duty of a spouse, domestic partner, child, or parent in the United States armed forces.
Eligible employees may take CFRA leave in a single block of time, intermittently, or by reducing the normal work schedule when medically necessary for the serious health condition of the employee or immediate family member. Employees may choose to use accrued paid sick leave or vacation time with some or all of the CFRA leave.
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36 When seeking leave under this policy, employees must provide the City Manager or Designee with the following: (1) Thirty (30) days’ notice of the need to take CFRA leave (if foreseeable), or notice as soon as practicable in the case of unforeseeable leave; (2) Medical certification supporting the need for leave within fifteen (15) calendar days of the company’s request for the certification. Failure to do so may result in the delay of the commencement of leave or denial of a leave request; (3) Periodic reports as deemed appropriate during the leave regarding the employee’s status and intent to return to work; and (4) A return-to-work release before returning to work if the leave was due to the employee’s serious health condition.
The City will maintain health insurance coverage for employees and /or their families when CFRA leave is taken on the same terms as if the employee had continued to work. In some instances, the City may recover premiums paid to maintain health coverage or other benefits for employees and/or their families.
Section 8. California Paid Family Leave: The City participates in a private voluntary disability insurance program that it offers to its employees as a legal alternative to the mandatory State Disability Insurance (SDI). Employees may inquire into this program with the City Manager or Human Resources Director.
Section 9. Pregnancy Disability Leave: A full-time employee is eligible for up to four (4) months of unpaid leave for an actual disability caused by the employee’s pregnancy, childbirth, or related medical condition.
(a) During the pregnancy disability leave time, paid leave may be charged to accrued benefit time such as vacation and floating holiday, at the employee’s request. In addition, accrued sick leave may be used at the employee’s request, in accordance with Section
3. (b) Health insurance benefits shall continue for the duration of the pregnancy disability leave under the same conditions as if the employee had continued employment. If the employee fails to return to work after the period of leave to which the employee is entitled has expired, the City is entitled to recover the premiums paid on behalf of the employee for maintaining coverage.
(c) The City Manager may require the employee to file a physician’s certificate or personal affidavit and to provide reasonable notice of the date the leave will begin and the estimated duration of the leave. (d) Employees disabled by pregnancy may also take intermittent leave or be provided reasonable accommodation to continue work. 213
37 (e) Employees returning from Pregnancy Disability Leave generally are entitled to be reinstated in the same position, subject to certain conditions, and consistent with applicable law.
Section 10. Lactation Accommodation Policy: The City provides accommodations to lactating employees who need to express breast milk during work hours in accordance with applicable law. The City will provide the employee with the use of a room or other location (not a bathroom) to express breast milk that is in close proximity to the employee’s work area, shielded from view, and free from intrusion. Such space will meet the requirements of the California Labor Code including a surface to place a breast pump and personal items, a place to sit, access to electricity, a sink with running water, and a refrigerator for storing breast milk.
Employees who are nursing have a right to request a lactation accommodation. Such requests may be made verbally or in writing, and should indicate the need for an accommodation in order to express breast milk at work, and should be directed to the City Manager or Designee. The City will promptly respond to such requests and indicate the approval or denial of the break request. The City reserves the right to deny an employee’s request for a lactation break if the additional break time will seriously disrupt City operations.
The requested break time should, if possible, be taken concurrently with other scheduled break periods.
The City prohibits any form of discrimination or retaliation against an employee for exercising or attempting to exercise any rights provided by this policy. Any such conduct or other violations of this policy should be reported to the City Manager or Designee. Employees have the right to file a complaint with the California Labor Commissioner for violation of a lactation accommodation right described in this policy.
Section 11. Election Leave: If a full-time employee does not have sufficient time outside of working hours to vote at a statewide election, the voter may, without loss of pay, take off enough working time, which when added to the voting time available outside of working hours will enable the voter to vote. Regular part-time employees are eligible for election leave based upon hours scheduled to work. No more than two (2) hours of the time taken off for voting shall be without loss of pay. The time off for voting shall be only at the beginning or end of the regular work shift, whichever allows for the greatest free time for voting and the least time off from the regular working shift, unless otherwise mutually agreed upon. The employee shall give the City Manager at least two working days’ notice that time off for voting is desired.
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38 Section 12. Leave of Absence Without Pay: The City Manager may grant a regular employee a leave of absence without pay for a period not to exceed one (1) month. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request. Approval will be in writing. Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted. Failure on the part of an employee on leave to report promptly at its expiration, or within a reasonable time after notice to return to duty, shall be cause for discharge.
Such leave of absence shall not be counted as a break in service for purposes of satisfying the continuous employment requirement for vacation allowance.
An employee on leave of absence without pay does not accrue sick leave, vacation time, or receive benefits while on leave. Such employee does not lose or forfeit any sick leave or unpaid vacation time that had been accumulated prior to the time being granted.
Section 13. Military Leave: Military leave shall be granted to City employees in accordance with the provisions of current federal and state law.
Section 14. Administrative Leave: At the discretion of the City Manager and in special circumstances, Regular employees may be provided administrative leave without loss in pay or the deduction of other leave accrued.
Section 15. Disability Accommodation: It is the City’s policy to comply with the Americans with Disabilities Act (ADA), as well as applicable state and local laws relating to disability issues. The City will not discriminate against any employee with respect to any terms, privileges, or conditions of employment because of his or her physical or mental disability. The City will also reasonably accommodate all employees and applicants with disabilities who are otherwise qualified to safely perform the essential duties of the job unless any such accommodations would impose an undue hardship in the City’s operations.
If an employee needs a reasonable accommodation to perform the essential job duties of his or her position, the employee should make the request to the City Manager or Designee. The City believes in an interactive process with the employee to identify and consider possible accommodations that would enable the employee to perform his or her position’s essential job duties.
Reasonable accommodation is available to all disabled employees, where his or her disability affects the performance of job functions and when such accommodations would not impose undue hardship. All employment decisions are based on the merits of the situation in accordance with defined criteria, not the disability of the individual. 215
39 CHAPTER XIV
HOLIDAYS
Section 1. Holidays Observed: The City observes the following paid holidays:
1. New Year’s Day (January 1)
2. Martin Luther King Jr. Day (observed the third Monday in January)
3. President’s Day (observed the third Monday in February)
4. Memorial Day (observed the last Monday in May)
5. Independence Day (July 4)
6. Labor Day (observed the first Monday in September)
7. Veteran’s Day (November 11)
8. Every day appointed by the President or Governor for a public fast, thanksgiving, or holiday including Thanksgiving Day
9. Friday following Thanksgiving Day
10. Christmas Eve (December 24)
11. Christmas Day (December 25)
Holidays which fall on Saturday shall be observed the preceding Friday and holidays which fall on Sunday shall be observed on the following Monday.
Paid holidays are only for the observed days.
If an observed holiday falls on an eight and one-half (8.5) hour work day under the 9/75 work schedule, those employees on the 9/75 schedule shall receive eight and one-half (8.5) hours of holiday pay.
If an observed holiday falls on a seven (7) hour workday under the 9/75 work schedule, those employees on the 9/75 schedule shall receive seven (7) hours of holiday pay.
If the holiday falls on a regular day off for that employee, that employee will take the preceding day off.
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40 Section 2. Floating Holiday:
(a) Each full-time employee is allowed eight and one-half (8.5) hours per calendar year, January through December with the approval of the City Manager.
(b) Floating holiday hours are not cumulative and must be used during the above period or said employee will lose the allocated hours. (c) Each employee must submit a request in advance.
(d) An employee is eligible to use floating holiday hours as they are allocated.
(e) Floating holiday hours may be used in lieu of sick leave only if all other benefit time has been exhausted.
Section 3. Eligibility for Holidays: All employees are eligible for holiday pay except the following:
(a) Seasonal and part-time employees.
(b) Temporary employees.
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41 CHAPTER XV
CHANGES IN EMPLOYMENT STATUS
Section 1. Transfer: An employee may be transferred by the City Manager at any time from one position to another position. Transfer shall not be used to effectuate a promotion, demotion, advancement, or reduction, each of which may be accomplished only as provided in these rules. No person shall be transferred to a position for which he/she does not possess the minimum qualifications.
Section 2. Promotion: When practicable and consistent with the best interests of the City, vacancies may be filled by promotion. All candidates for promotion must meet the minimum qualifications identified by the City Manager or Designee.
If, in the opinion of the City Manager or Designee, a vacancy in the position could be filled better by an open, competitive recruitment instead of a promotional appointment, he/she shall arrange for an open competitive examination.
Section 3. Demotion: The City Manager may demote an employee whose ability to perform his/her required duties falls below standard. No employee shall be demoted to a position for which he/she does not possess the minimum qualifications.
Section 4. Suspension: The City Manager may suspend an employee at any time for cause.
Section 5. Reclassification: The City Manager may reclassify a position from one position to another if there has been a gradual accretion or reduction of duties and/or responsibilities over time.
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42 CHAPTER XVI
SEPARATION FROM EMPLOYMENT
Section 1. Job Abandonment: An employee is deemed to have resigned if the employee is absent for three (3) consecutive workdays without prior authorization and without notification during the period of absence. On the second working day of unauthorized absence, the City Manager shall send an overnight letter to the employee’s last known address informing the employee that if the employee fails to report to work within one (1) workday, or receive authorization for such absence, the employee will be deemed to have resigned and extending to the employee an informal pre-disciplinary conference. Employees separated from employment for job abandonment will be reinstated with such charge removed from the employee’s record upon presentation of justification for absence such as severe accident, severe illness, false arrest, or mental or physical impairment which prevented notification. Employees have no right to appeal if deemed to have resigned as a result of job abandonment.
Section 2. Discharge: An at-will employee may be discharged at any time with or without cause or notice.
Section 3. Lay-off: The City Manager may lay off an employee because of change in duties or organization or shortage of work or funds.
(a) Notification: Employees to be laid off shall be given, whenever possible, at least ten (10) calendar days prior notice. (b) Order of Layoff: Employees shall be laid off in the inverse order of their seniority and with regard to their responsibilities. Seniority shall be determined based upon date of hire in the position. A lay off out of the inverse order of seniority may be made if, in the City’s judgment, retention of special job skills is required.
(c) Re-employment Rights for Laid-off Employees: Regular employees, who have received a satisfactory or better evaluation for the twelve (12) months prior to lay off, have completed their probationary period, and who have been laid off shall be automatically placed on a reemployment list for one year for the classification from which they were laid off.
Section 4. Resignation: An employee wishing to leave City service in good standing shall file with the supervising official at least ten (10) working days before leaving the service, a written resignation stating the effective date and reasons for leaving. Failure to give such notice shall mean the employee did not terminate in good standing, unless the City Manager has waived the two-week notice requirement. Failure to comply with this Chapter shall be entered on the service record of the employee and be cause for denying 219
43 future employment by the City. A resignation becomes final when accepted by the City Manager and only at the City Manager’s discretion can be withdrawn.
Section 5. Reinstatement: A regular employee who has resigned, or has otherwise been separated while in good standing, may be considered for reinstatement by the City Manager, to a position in the former employee’s same or comparable position for a period of two (2) years after resignation or separation provided such a position is vacant and available. The employee shall be reinstated to the salary range and step held at the time of resignation or separation and shall receive a new anniversary date which shall be the first date of employment upon reinstatement. The employee will serve a new probationary period.
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44 CHAPTER XVII
REPORTS AND RECORDS
Section 1. General: The City maintains a personnel file on each employee. An employee’s personnel file shall contain only material that is necessary and relevant to the administration of the City’s personnel program. Personnel files are the property of the City, and access to the information they contain is restricted.
Section 2. Notifying City of Changes in Personal Information: Each employee is responsible to promptly notify the City Manager or Designee of any changes in relevant personal information, including:
• Mailing address
• Telephone number
• Persons to contact in emergency
• Number and names of dependents
Section 3. Location of Personnel Files: The personnel files will be kept secure and confidential by the City Manager or Designee.
Section 4. Medical Information:
(a) Separate Confidential Files. All medical information about an employee or applicant is kept separately and is treated as confidential, in accordance with federal and state law. (b) Information in Medical Files. The City will not obtain medical information about an employee or applicant except in compliance with the California Confidentiality of Medical Information Act. To enable the City to obtain certain medical information, the employee or applicant may need to sign an authorization for release of employee medical information.
(c) Access to Medical Information. Access to employee or applicant medical information shall be strictly limited to only those with a legitimate need to have such information for City business reasons.
In the case of an employee with a disability, managers and supervisors may be informed regarding necessary restrictions on the work or duties of the employee and necessary accommodations.
Section 5. References and Release of Information in Personnel Files:
(a) Public Information: Upon request, the City will release to the public information about its employees as required by the Public Records Act. The City will not disclose personnel information that it considers would constitute an unwarranted invasion of personal privacy. 221
45 (b) Reference Checks: All requests from outside the City for reference checks or verification of employment concerning any current or former employee must be referred to the City Manager or Designee.
Information will be released only if the employee signs an authorization for release of employment information, except that without such authorization, the following limited information will be provided: dates of employment and job title.
Section 6. Employee Access to Personnel File: An employee may inspect his or her own personnel file at reasonable times and at reasonable intervals. An employee who wishes to review his or her file should contact the City Manager or Designee to arrange an appointment. The review must be done in the presence of the City Manager or Designee.
Section 7. Destruction of Records: Personnel files, payroll records, and records relating to personnel recruitment, including correspondence, applications, examinations, and reports will be destroyed according to the City’s Records Retention Schedule.
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46 CHAPTER XVIII
GRIEVANCE PROCEDURES
Section 1. Definition:
(a) Grievance: A “grievance” is a written allegation by an employee, submitted as herein specified, claiming violation(s) of the specific express terms of the Employee Handbook and Personnel Policy Manual, or expressing concern relating to an aspect of employment, and for which there is no other specific method of review provided by City law.
(b) Grievant: A grievant is an employee or group of employees adversely affected by an act or omission of the City.
(c) Day: A day is any day the agency is open to the public, that is any day except Saturdays, Sundays, and legal holidays recognized by the City.
Section 2. Procedure:
Step A: Informal Discussion: The grievant shall discuss the controversy with the City Manager on an informal basis in an effort to resolve the situation.
The issue will be considered resolved if not presented to the City Manager within ten (10) working days following the day the event occurred upon which the controversy is based. The City Manager shall respond within five (5) working days following the meeting with the grievant. Failure of the City Manager to respond within such time limit shall entitle the grievant to process the controversy to the next step.
Step B: First Level of Review: If the controversy is not settled at Step A, the grievant may submit the grievance in writing to the City Manager within five (5) working days of the receipt of the grievance response at Step A. Failure of the grievant to deliver the written grievance shall constitute a waiver of the grievance. The City Manager shall meet with the grievant and a written decision and statement of facts and issues shall be rendered to the grievant within ten (10) working days from the date of the written grievance. Failure of the City Manager to respond within such time limit shall entitle the grievant to process his/her grievance at the next level of review. If the City Manager is the subject of the grievance the grievance shall be submitted to the Personnel Committee instead of the City Manager.
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47 Step C: Second Level Review: If the grievance is not settled at Step B, the grievant may place the grievance in writing to and present it to the Rolling Hills City Council within five (5) working days of receipt of the Step B grievance response. Failure of the grievant to deliver such written notice shall constitute a waiver of the grievance. The City Council shall hear the grievance at a regular meeting, and a written decision and statement of facts and issues shall be rendered to the grievant. The decision of the City Council shall be final and binding.
Section 3. Reprisals: Employees shall be insured freedom from reprisal for using the grievance procedure.
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48 CHAPTER XIX
DISCIPLINE
Nothing in this Section is intended to alter the at-will status of employment with the City.
Consistent with the City’s Employment At Will policy, you and the City each have the right to terminate the employment relationship at any time with or without cause and with or without prior notice. As well, the City reserves the right to terminate any employment relationship, to demote, and to otherwise discipline an employee without resort to the below disciplinary procedures.
Section 1. Types of Disciplinary Action:
(a) Oral Warning: A formal discussion with an employee, by the City Manager, about performance or conduct problems, the need for the employee to improve, and what specific improvement is expected.
The City Manager shall make a written record of the warning. (b) Written Reprimand: A formal written notice to the employee regarding performance or conduct problems, the need for the employee to improve, and what specific improvement is expected.
The written reprimand goes in the employee’s personnel file. (c) Suspension: Removal of an employee from duty without pay for a specified period.
(d) Reduction in Pay: A reduction in pay from the employee’s current salary to a lower salary.
(e) Demotion: A reduction in position title and salary. (f) Dismissal or Discharge: Separation from employment of an employee for cause.
Section 2. Grounds for Disciplinary Action Involving Regular Employees: Grounds for discipline include, but are not limited to, the following:
(a) Fraud in securing employment or making a false statement on an application for employment.
(b) Incompetency; i.e., the inability to comply with the minimum standard of an employee’s position for a significant period of time. (c) Inefficiency or inexcusable neglect of duty, i.e., failure to perform duties required of an employee within his/her position. (d) Willful disobedience or insubordination, a willful failure to submit to duly appointed and acting supervision or to conform to duly 225
49 established orders or directions of persons in a supervisory position, or insulting or demeaning any fellow employee.
(e) Dishonesty.
(f) Possession, distribution, sale, use, or being under the influence of alcohol or illegal drugs or narcotics while on duty or while operating a vehicle in the course of City business or potentially dangerous equipment leased or owned by the City.
(g) Excessive absenteeism.
(h) Inexcusable absence without leave.
(i) Abuse of sick leave, i.e., taking sick leave without a doctor’s certificate when one is required, or misuse of sick leave. (j) The conviction of either a misdemeanor or a felony related to the position held will constitute grounds for dismissal of any employee.
The record of conviction will be conclusive evidence of the fact that the conviction occurred. The City Manager may inquire into the circumstances surrounding the commission of the crime in order to support the degree of discipline. A plea or verdict of guilty, or a conviction showing a plea of nolo contendere, is deemed to be a conviction within the meaning of this Section.
(k) Discourteous treatment of the public or other employees. (l) Improper or unauthorized use of City property.
(m) Refusal to subscribe to any oath or affirmation which is required by law in connection with agency employment.
(n) Any willful act or conduct undertaken in bad faith, either during or outside of duty hours, which is of such a nature that it causes discredit to the City.
(o) Inattention to duty or negligence in the care and handling of City property.
(p) Violation of the rules and regulations of the City. (q) Outside employment not specifically authorized.
(r) Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an employee for the performance of his or her official duties.
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50 (s) The refusal of any officer or employee of the City to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in which the investigation of government bribery or misconduct in agency office is involved shall constitute of itself sufficient ground for the immediate discharge of such officer or employee.
(t) Willful violation of any of the provisions of an ordinance, resolution, rule, regulation, or policy prescribed by the City.
(u) Improper political activity. Example: Campaigning for or espousing the election or non-election of any candidate in national, state, county, or municipal elections while on duty and/or during working hours or in City uniform on or off duty; or the dissemination of political material of any kind while on duty and/or during working hours or in uniform.
(v) Working overtime without authorization.
(w) Possession of weapons on agency property unless authorized. (x) Making false or malicious statements concerning any employee, the City, or the City’s policies or practices.
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51 CHAPTER XX
PERFORMANCE EVALUATIONS AND ANNUAL WORK PLANS
Section 1. General: Performance evaluation is the process of evaluating and recording the performance of each employee. The performance evaluation is best used:
(a) To maintain a high level of efficiency or assist in raising efficiency by commending the employee.
(b) To indicate to the employee those points in which he/she shows weak performance, and suggest the proper means of raising his/her working performance to the standard level.
(c) To inform the employee of good performance.
(d) To encourage better working relationships and mutual understanding by letting the employee know where he/she stands with relation to the City Manager’s evaluation of his/her work.
(e) To establish an annual work plan consisting of goals and tasks to be accomplished.
Section 2. Responsibility for Evaluation: The City Manager is responsible for proper preparation of the performance evaluation for each employee. The City Manager should carefully review the complete position description, and the goals and objectives for the employee, if any, before beginning each evaluation, to remind himself/herself of what should be expected from the employee.
Section 3. Discussion with Employee: The performance evaluation must be discussed with the employee. During the interview, as well as in the performance evaluation documentation, special attention should be given to discussing specific ways in which the employee can improve his/her performance. An opportunity should also be afforded to the employee to comment and bring up any questions he or she may have.
Section 4. Schedule: Performance evaluations for probationary employees are to be presented at the end of the first six (6) months, and after the first twelve (12) months, to correspond to the completion of the one year probationary period. After the probationary evaluation, an evaluation should be done on an annual basis on the employee’s anniversary date.
Section 5. Appeal Procedure: It is the intent of the City to offer fair and equitable appeals procedures for employees’ performance evaluations. Below are the official guidelines.
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52 (a) Employee and City Manager meet to review and discuss the employee’s performance evaluation.
(b) The employee may respond in writing to the contents of the evaluation. The employee must submit this response to the City Manager within ten (10) working days immediately following receipt of the evaluation. The decision shall be rendered in writing within fifteen (15) working days by the City Manager, and the decision of the City Manager shall be final.
Section 6. Exceptional Performance Recognition: Based on fiscal year finances and Council approval, the City Manager is provided a pool of funds to recognize an employee’s exceptional performance. Annually, the City will endeavor to budget a 5% increase in salaries. The amount of funds potentially available in the bonus pool is the difference between the CPI adjustment provided to staff in July (see Chapter V) and 5%. An employee can be given exceptional performance recognition of no more than the difference between the CPI and 5% as a one-time check, gift card, or item (the recognition, in other words, does not become part of the employees’ salary) for exceptional performance during the prior fiscal year. The recognition will require the City Manager to document and justify the action.
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53 CHAPTER XXI
VEHICLE USE
Section 1. Use of Private Vehicles: Private automobiles are not to be used for the City business except as authorized. The City Manager may authorize such use at the reimbursement rate equal to that set forth by the Internal Revenue Service. Payments shall be based upon the most direct route to and from the destination and garage and parking expenses shall be paid in addition to the current rate, upon submission of paid receipts within the fiscal year of the trips. To receive mileage reimbursement, the employee must acknowledge and be in compliance with the City’s Vehicle Use Policy.
Section 2. Auto Allowance: Select employees will receive a monthly car allowance.
This stipend will be in lieu of any mileage reimbursement and is intended to cover all actual expenses incurred. If additional garage, parking, and other related auto expenses are incurred above the monthly allowance, they are reimbursable.
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54 CHAPTER XXII
PROFESSIONAL DEVELOPMENT
Section 1. Training: The City Manager and employees of the City are eligible to request specialized training in the form of symposiums, special courses, forums, professional association meetings, professional development courses, etc., at the City’s expense. The City retains the sole authority to approve or deny requests for specialized training.
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55 CHAPTER XXIII
EMPLOYEE STANDARDS OF CONDUCT
Section 1. Code of Ethics:
(a) Each officer, official, and employee has an obligation to the residents, to the people’s elected representatives, and to fellow employees to meet the highest ethical and professional standards and to enhance the public’s respect and trust for the City government and its operations.
(b) Employees of the City have responsibilities unique from their counterparts in the private industry. Employment with the City carries an obligation of personal integrity and conduct that serves to establish public respect, confidence, and trust.
(c) Employees represent the City of Rolling Hills and the quality of City service is judged through their performance and conduct. The residents of Rolling Hills have the right to expect that City employees will provide services in an efficient, thorough, and courteous manner. (d) The City, as a condition of employment, expects to receive from the employee:
(1) Initiative and a conscientious effort to perform productive work.
(2) Cooperative, positive, responsive, and courteous relations with fellow employees, supervisors, subordinates, and the public.
(3) A continuous effort to strive for greater knowledge and skill on the job in order to maintain performance at a high level. (4) Compliance with all policies, regulations, rules of conduct, and ordinances established by the City.
(5) Responsible work habits demonstrated by:
a. Dependability, promptness, reliable attendance, and
performing required duties competently,
b. Keeping informed of developments and matters
affecting job performance,
c. Being flexible and adaptable to change,
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56 d. Accepting constructive suggestions and criticism. (6) Neat and clean grooming and attire appropriate to the job assignment.
a. Work days
Appropriate dress shall be professional and business casual, representative of an office environment and appropriate for meetings and interaction with the public.
b. Other
As appropriate for the position, the employee is required to have shoes and clothing for meetings in the field, visits to construction sites, and walking on trails.
(7) Support in principle of the ICMA (International City/County Management Association) Code of Ethics and related tenants.
No employee will accept a fee, compensation, gift, payment of expenses, or any other thing of monetary value in any circumstances in which acceptance may result in or create the appearance of any one or more of the following:
1. Use of public office and/or employment for
personal or private gain.
2. Preferential treatment of any person.
3. Loss of complete independence or impartiality.
4. Making a City decision outside of official
channels.
5. Reduction of public confidence in the integrity of
City government and/or its employees.
6. Impeding government efficiency or economy.
Section 2. Policy Against Harassment, Discrimination, and Retaliation The City strictly prohibits and has “zero tolerance” for discrimination and harassment in any phase of the employment, including but not limited to recruitment, testing, hiring, upgrading, promotion/demotion, transfer, layoff, termination, rates of pay, benefits, and selection for training. This includes sexual harassment (which includes harassment based on sex, pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical 233
57 conditions), as well as harassment, discrimination, and retaliation based on such factors as race, color, religion, religious creed (including religious dress and religious grooming practices), sex, national origin, ancestry, citizenship, age (40 years and older), mental disability and physical disability (including HIV and AIDS), legally-protected medical condition or information (including genetic information), protected medical leaves (requesting or approved for leave under the California Family Rights Act), military and/or veteran status, service, or obligation, reserve status, national guard status, marital status, domestic partner status, gender, gender identity (including transgender identity), gender expression (including transgender expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning, or is perceived to be transitioning), sex stereotyping, sexual orientation, status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, engaging in protected communications regarding employee wages or otherwise exercising rights protected under the California Fair Pay Act, requesting a reasonable accommodation on the basis of disability or bona fide religious belief or practice, or any other basis protected by federal, state, or local laws.
Discrimination and Harassment Defined. Discrimination and harassment may consist of offensive verbal, physical, or visual conduct when such conduct is based on or related to an individual’s sex or membership in one of the above-described protected classifications, and: (1) Submission to the offensive conduct is an explicit or implicit term or condition of employment; (2) Submission to or rejection of the offensive conduct forms the basis for an employment decision affecting the employee; or (3) The offensive conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creates an intimidating, hostile, or offensive working environment.
Examples of Sexual Harassment. For the purpose of clarification, examples of what may constitute prohibited sexual harassment include, but are not limited to, the following:
1. Making unsolicited sexual advances or written, verbal, physical, or visual contact with sexual overtones. (Written examples: suggestive or obscene letters, notes, invitations. Verbal examples: derogatory comments, slurs, jokes, epithets. Physical examples: touching, assault, blocking or impeding access, leering gestures, display of sexually suggestive objects or pictures, cartoons, or posters.)
2. Continuing to express sexual interest after being informed that the interest is unwelcome. (Reciprocal attraction is not considered sexual harassment.)
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58 3. Making reprisals, threats of reprisal, or implied threats of reprisal following a negative response. (For example, implying or actually withholding support for an appointment, promotion, or change of assignment; suggesting a poor performance report will be prepared; or suggesting probation will be failed.)
4. Engaging in implicit or explicit coercive sexual behavior which is used to control, influence, or affect the career, salary, or work environment of another employee.
5. Offering favors or employment benefits, such as promotions, favorable performance evaluations, favorable assigned duties or shifts, recommendations, reclassifications, etc., in exchange for sexual favors. (Similar conduct when applied to other protected classes such as race, color, creed, national origin, age, disability, medical condition, religion, sexual orientation, or marital status may constitute harassment and violation of this Policy. For example, racial jokes or degrading comments about age or ethnic background can constitute harassment under this policy). Accordingly, in order to avoid the risk of discipline, such acts should be avoided in all circumstances.
Internal Complaint Procedure. Any applicant or employee who believes that he or she has been the victim of sexual or other prohibited discrimination or harassment by co-workers, supervisors, clients or customers, visitors, vendors, corporate officers, or others must immediately notify the City Manager or Designee of the alleged conduct. If the employee believes that, for any reason, the City Manager is the source of the conduct or is biased, the employee may submit the complaint to the Personnel Committee.
Internal Investigation and Resolution. Following receipt of a discrimination or harassment grievance, the City shall begin an immediate and thorough investigation to determine if sexual or other discrimination/harassment has occurred. The investigation shall be conducted in an impartial manner and all information shall be maintained confidential to the extent possible. After full consideration of all relevant facts and circumstances involving the inquiry, a timely decision will be made by the City and appropriate disciplinary or other action will be taken, up to and including termination of employment.
Prohibition Against Retaliation. Retaliation against anyone for opposing conduct prohibited by the City’s anti-discrimination/harassment policies or for filing a complaint with or otherwise participating in an investigation, proceeding, or hearing conducted by the City, or any authorized governmental agency, is strictly prohibited and may subject the offending person to, among other things, disciplinary action, up to and including termination of employment.
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59 External Reporting. In addition to the City’s internal complaint procedure, an employee may file a complaint with the California Department of Fair Employment and Housing (DFEH) or the U.S. Equal Employment Opportunity Commission (EEOC).
Section 3. Injury and Illness Policy
The City of Rolling Hills has an adopted Injury and Illness Policy for the purpose of preventing injury and illness at work. The policy applies to all employees.
Section 4. Information Technology Policy
The City of Rolling Hills has an adopted Information Technology Policy for the purpose of defining inappropriate use of the electronic information, technological equipment (e.g., computers), and technological systems (e.g., email). The policy applies to all employees.
Section 5. Smoking Policy
The City of Rolling Hills is a smoke-free City. Employees are not permitted to smoke within the City limits.
Section 6. Drug and Alcohol Use Policy
The City strictly prohibits its employees from using alcohol or drugs in connection with their employment, as it constitutes a threat to the safe and efficient performance of an employee’s duties. At no time shall any employee be under the influence of any controlled drug or alcohol while on the job, including but not limited to marijuana (with, or without, prescription).
Please note that, while Proposition 64 (2016) legalized use of recreational marijuana in California, the City still will find a positive test for marijuana as a valid basis for discipline, up to and including termination of employment. (Employees who are taking lawful medications pursuant to a physician’s prescription, except in the case of medical marijuana, who has also certified that they may efficiently perform their duties without jeopardizing the health or safety of others will not be considered to have violated this policy for taking such prescription medicine).
Prohibitions. The following conduct is prohibited and may result in discipline, up to and including termination:
1. Using or possessing alcohol or other controlled substances while on duty.
2. Reporting for duty or remaining on duty when the employee used any controlled substances, except if the use is pursuant to the instructions of a physician who has advised the employee that the substance does not 236
60 adversely affect the employee’s ability to safely operate a vehicle or otherwise perform the employee’s job.
3. Reporting for duty or remaining on duty if the employee tests as having a blood alcohol concentration of 0.02 or greater.
4. Reporting for duty or remaining on duty if the employee tests positive for controlled substances (including, but not limited to, marijuana, whether prescribed or not).
5. Refusing to submit to any alcohol or controlled substances test required by this Policy. An employee who refuses to submit to a required drug/alcohol test will be treated in the same manner as an employee who tested 0.02 or greater on a blood alcohol test or tested positively on a controlled substances test. A “refusal to submit” to an alcohol or controlled substances test required by this policy includes, but is not limited to:
• A refusal to provide a urine sample for a drug test;
• An inability to provide a urine sample without a valid medical explanation;
• A refusal to complete and sign the breath alcohol testing form, or otherwise to cooperate with the testing process in a way that prevents the completion of the test;
• An inability to provide breath or to provide an adequate amount of breath without a valid medical explanation;
• Tampering with or attempting to adulterate the urine specimen or collection procedure;
• Not reporting to the collection site in the time allotted by the supervisor or manager who directs the employee to be tested; • Leaving the scene of an accident without a valid authorization.
Reasonable Suspicion Testing. All employees may be required to submit to an alcohol or drug test if a supervisor has reasonable suspicion to believe the employee is under the influence of alcohol or controlled substances.
Reasonable suspicion alcohol and drug testing will generally be administered within two hours of the observation. If not, the supervisor should provide written documentation as to why the test was not promptly conducted.
Consequences of Failing an Alcohol or Drug Test. A positive result from a drug or alcohol test may result in disciplinary action, up to and including termination, even for a first offense. The City also reserves the right to 237
61 discipline or terminate an employee convicted of an offense which involves the use, distribution, or possession of illegal drugs. If an employee is not terminated, the employee:
1. Must be removed from performing any job function and immediately placed in an unpaid status.
2. Must submit to an examination by a substance abuse professional.
Upon a determination by the substance abuse professional, the employee may be required to undergo treatment for his or her alcohol or drug abuse.
The City is not required to pay for this treatment.
3. Shall not be returned to his or her former position until the employee submits to a return to duty controlled substance and/or blood alcohol test (depending on which test the employee failed) which indicates and alcohol concentration level of less than 0.02 or a negative result on a controlled substance test.
4. Will be required to submit to unannounced follow up testing and, possibly other conditions if he or she has been returned to his or her position.
Compliance With State and Federal Law. At all times, the City will comply with current applicable state and federal law concerning drug and alcohol testing. Issues or inconsistencies that are not addressed in this policy will be determined by referring to state or federal law and regulations governing drug and alcohol testing. The City reserves the right to make changes to this policy at any time, for the purpose of complying with state and/or federal law or regulation as it exists now or as it may be amended. 238
62 EMPLOYEE HANDBOOK ACKNOWLEDGEMENT
I acknowledge receipt of the City of Rolling Hills Employee Handbook and warrant and represent that I have read and understand the document. I had an opportunity to ask questions and receive clarification from the City regarding conditions of employment, policies, and rules contained in this Handbook. I agree to observe and abide by the conditions of employment, policies, and rules contained in this Handbook.
I understand and agree that my relationship with the City is ‘‘at-will,’’ which means that my employment is for no definite period and may be terminated by me or by the City at any time and for any reason with or without cause or advance notice. I understand that the City retains the right to make decisions involving employment as needed in order to conduct its work in a manner that is beneficial to the employees and the City.
I understand and agree that nothing in the Handbook creates or is intended to create a promise or representation of continued employment and that employment at the City is employment “at-will”; employment may be terminated at the will of either the City or myself with or without cause. I understand and agree that the terms of my at-will employment may not be modified or superseded except by the City Council and by written agreement signed by me and the City Manager, that no other employee or representative of the City has the authority to enter into any such agreement, and that any agreement to employ me for any specified period of time or that is otherwise inconsistent with the terms of this Acknowledgment will be unenforceable unless in writing, approved by the City Council and signed by me and the City Manager.
My signature below certifies that I understand that the foregoing agreement on “at-will” status is the sole and entire agreement between the City and me concerning my employment and the circumstances under which my employment may be terminated. I also understand that if I violate the rules, policies, and procedures set forth herein that I may be subject to discipline, up to and including termination of my employment. This Handbook supersedes all prior agreements, understandings, and representations concerning my employment. I understand that if I have questions regarding the Handbook that I can discuss them with the City Manager’s Designee.
Name Date
239
Agenda Item No.: 7.K
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JANE ABZUG, DEPUTY CITY ATTORNEY
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: CONSIDER AND APPROVE AMENDED CITY MANAGER
EMPLOYMENT CONTRACT.
DATE: April 25, 2022
BACKGROUND:
The City Council conducted the City Manager's annual performance evaluation in October 2021 for the period between September 28, 2020 and September 28, 2021.
DISCUSSION:
As a result of the performance evaluation, certain terms of the employment contract for the City Manager are proposed to be amended.
FISCAL IMPACT:
If the amended employment contract is approved, there would be an expenditure increase of approximately $5,600 to the City Administration Department for Fiscal Year 2021-2022.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
SecondAmendment_CM_Agreement_ElaineJeng_2022_F.pdf
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65277.00001\31326953.1
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT is
made and entered into as of this 25th day of April, 2022, by and between the CITY OF ROLLING HILLS, a general law city and municipal corporation (hereinafter “City”), and ELAINE H. JENG (hereinafter “Employee”), both of whom understand as follows:
R E C I T A L S
A. City and Employee entered into an Employment Agreement on August 13, 2018 to appoint Employee as City Manager of the City of Rolling Hills (the “Agreement”).
B. City and Employee entered into a First Amendment to the Agreement on April 12, 2021 to increase the annual salary, car allowance, and management leave and to reflect a higher contribution for Employee’s health insurance and 457 plan (the “First Amendment”).
C. City evaluated Employee’s annual performance for the period of September 28, 2020 to September 28, 2021 under the terms of the Agreement.
D. City and Employee now desire to amend the Agreement for a second time to increase the annual salary, provide a one-time bonus payment, and allow cash out of vacation accrual without requiring use of one week of vacation as a condition precedent (the “Second Amendment”).
NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained the parties agree as follows:
1. Paragraph 5 (Salary) of the Agreement is amended to read as follows:
5. Salary. City agrees to pay Employee for the services required by this Agreement a monthly base annual salary of Two Hundred Twenty Thousand and Two Hundred and Twenty-Three Dollars ($220,223.00) payable in installments at the 241
65277.00001\31326953.1 2
same time as other employees of the City are paid. The salary shall be adjusted annually by the cost of living (COLA) on the same basis as other employees of the City.
City agrees to pay Employee a monthly car allowance of Four Hundred Dollars ($400) per month. The car allowance is intended to reimburse Employee for the use of her private vehicle for City business. Employee must provide her own automobile for her use in performing her duties and is responsible for all maintenance, repair, fuel and insurance expenses for said vehicle. Employee shall use her personal cellular telephone for transaction of City business and City agrees to reimburse Employee $110 per month for use of her phone for business.
At the time of her annual evaluation as provided for in paragraph 12 herein, City agrees to evaluate Employee’s salary and/or any other benefits Employee receives under this Agreement and to make modifications in such amounts and to such an extent (whether in the nature of a cost of living adjustment, merit increase, bonus or other compensation enhancement or otherwise) as City Council in its discretion may determine that it is desirable to do so. Employee may be given exceptional performance recognition in the form of a one-time check for exceptional performance during the prior fiscal year.
2. Paragraph 12 (Sick Leave, Vacation and Holidays) of the Agreement is amended to read as follows:
11. Sick Leave, Vacation and Holidays.
A. Sick Leave. Employee shall earn 3.46 hours of sick leave per pay period up to a maximum accrual of 225 hours. Employee may carry over accrued sick leave as provided in the Employee Handbook and Personnel Policy Manual.
B. Vacation. Employee shall earn 159 hours of vacation per year. In December of each year, if Employee has over two weeks of accrued vacation, Employee may “cash out” up to two weeks of the accrued vacation (75 hours) at Employee’s base rate of pay.
C. Management Leave. Employee shall be provided eighty
(80) hours of management leave each calendar year in lieu of the floating holiday provided for in the Employee Handbook and Personnel Policy Manual. Management 242
65277.00001\31326953.1 3
leave will not accrue or carry over from year to year nor does it have any cash value.
Management leave will be prorated for partial years’ service.
D. Other Leave. Employee shall be entitled to bereavement leave in the same manner as employees of the City.
E. Holidays. Employee shall be entitled to the same number of paid holidays per year as provided to other City employees.
3. Upon full execution of this Second Amendment, City agrees to pay Employee a one-time bonus in the amount of $5,604.00.
4. All terms and conditions of the Agreement not amended by this Second Amendment and the First Amendment shall remain in full force and effect.
5. This Second Amendment shall be effective as of January 24, 2022.
IN WITNESS WHEREOF the parties have executed this Second Amendment as of the day and year first above written.
EMPLOYEE
________________________
ELAINE H. JENG, CITY MANAGER
CITY OF ROLLING HILLS
By:
________________________
JIM BLACK, MAYOR
ATTEST:
________________________
CHRISTIAN HORVATH, CITY CLERK
243
Agenda Item No.: 11.A
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: DISCUSSION AND CONSIDERATION OF REQUEST BY THE NEEDS OF
SENIORS COMMITTEE TO HOLD AN EVENT AT THE CITY HALL
CAMPUS IN JUNE.
DATE: April 25, 2022
BACKGROUND:
On April 15, 2022, the City received a request from the Rolling Hills Community Association (RHCA) on behalf of the Needs of Seniors Committee to hold an event at the City Hall Campus during the first week of June on either a Wednesday or Thursday. They would like permission to bring in a food truck and set up tables on the grassy area between the City Hall and RHCA buildings.
Staff has currently requested follow-up information and will be contacting our insurance carrier.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Provide direction to staff.
ATTACHMENTS:
244
Agenda Item No.: 11.B
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ELAINE JENG, CITY MANAGER
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: DISCUSS POTENTIAL USES FOR THE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS.
DATE: April 25, 2022
BACKGROUND:
In March 2021, the $1.9 trillion bill called the American Rescue Plan Act 2021 was enacted. In May 2021, the U.S. Department of Treasury (USDOT) released guidance on distribution of the funds to non-entitlement cities. These guidelines were issued to assist the California Department of Finance (DOF) in issuing final city-by-city allocations to help the process of distributing non-entity city funds. Based on guidance from the USDOT, the money will be disbursed in two tranches, half in June 2021 and half in June 2022. As of June 3, 2021, DOF estimated that the City of Rolling Hills allocation was $441,363.
The state developed a secure web form for eligible cities and towns to request funding and upload certification documents required by Treasury. To request funds, cities were required to complete the web form, provide total annual operating budget, accept the award terms and conditions, and comply with Title VI. Request for funds had to be submitted no later than June 23, 2021. The City Attorney reviewed the award terms, conditions and assurances of compliance with Title VI, Civil Rights Act of 1964 and noted that conditions are typical of requirements for receipt of federal funds. At the June 14, 2021 meeting, the City Council accepted the estimated allocation of $441,363.
The USDOT designated the city allocation as the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021.
DISCUSSION:
On January 6, 2022, the USDOT released the Final Rule on the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). On January 17, 2022, the City Attorney's office issued a memo on the Final Rule to assist municipalities in understanding the eligible uses of the funds.
The referenced memo is attached to this staff report. The Final Rules went into effect on April 1, 2022.
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In the Final Rule, the six categories of eligible use categories are:
1. Support Public Health Expenditures
2. Address the Negative Economic Impacts of the Public Health Emergency
3. Serving the Hardest-Hit Communities and Families
4. Replace Lost Public Sector Revenue
5. Provide Premium Pay to Essential Workers
6. Invest in Water, Sewer, and Broadband Infrastructure Eligible expenses for the City of Rolling Hills
In discussing the Final Rule with the City Attorney's office, with respect to two capital improvement projects that the City Council expressed as priority projects during the 2022 Strategic Planning Workshop, the City Attorney's office opined that the City Hall ADA Improvement project would not quality for the funds. Based on staff's reading of the Final Rule, the tennis courts improvements would not qualify for the funds.
The Final Rule provides clarification on the use of funds for service, programs, and capital expenditures when responding to public health emergency and negative economic impact of the public health emergency. The capital expenditure projects "must be related and reasonably proportional to the pandemic impact identified and reasonably designed to benefit the impacted population or class." As such, the City Hall ADA Improvements project would not qualify since the improvements are not related or proportional to the pandemic impact unless the project was redesigned with elements that would address the public health emergency.
The funds can be used to address deferred maintenance to water and sewer systems, as well as additional resiliency measures to address climate change. The Final Rule also permits the use of funds for stormwater infrastructure, if it is found "necessary," which is defined as (1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which may include a reasonable project of increased need, whether due to population growth or otherwise; (2) a cost-effective means for meeting that need, taking into account available alternatives; and (3) for investments in infrastructure that supply drinking water in order to meet project population growth, projected to be sustainable over its estimated useful life. The city's proposed 8" sewer main along Portuguese Bend Road/Rolling Hills Road appears to be an eligible expense under this category.
With respect to the "replace lost public sector revenue," the Final Rule provides for a standard allowance of $10 million for the lost revenue category. This standard allowance does not increase or decrease the total award amount given to the recipient. Once selected in the report to regulators, the City will use such selection for the perpetuity of the SLFRF program. The lost revenue category can be used to pay the Los Angeles County Sheriff's contract.
Timeline for the Use of SLFRF
The funds may only cover costs incurred from March 3, 2021 through December 31, 2024.
Unlike Coronavirus Relief Funds, ARPA program funds are only required to be obligated by December 24, 2024 and must be expended by December 31, 2026.
Records, Reporting, and Recoupment
Recipients must maintain records for a period of five years after all funds have been expended or December 31, 2021, whichever is later. The City of Rolling Hills is required to submit an annual project and expenditure report by April 30. The initial report is due on April 30, 2022. 246
The USDOT notes that funds used in ways that violate the Final Rule are subject to remediation and recoupment. These violations may be identified through reports and other sources. If and when a violation is found, the USDOT will provide notice to the recipient in writing with an opportunity to request reconsideration. If the USDOT does not receive a request for reconsideration, the initial notice will be deemed as the final notice.
FISCAL IMPACT:
The first disbursement of the $441,363 allocation or $220,682 was received by the city in July 2021. The second disbursement is anticipated in June 2022. The full allocation will offset the use of General Fund on eligible expenses resulting in a savings to the General Fund.
RECOMMENDATION:
Discuss and provide direction to staff.
ATTACHMENTS:
2022-01-17 US Treasury - ARPA Final Rule - Guidance v2-c1.PDF 247
09900.00200\34726008.1 1
On January 6, 2022, the U.S. Treasury released the Final Rule on the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). Treasury also published an overview of the Final Rule and BB&K published an alert on the Final Rule. The Final Rule goes into effect on April 1, 2022.
Until then, the Interim Final Rule remains in effect and funds that are used consistently with the Interim Final Rule are in compliance with the SLFRF program.1 Overview of Key Changes in the Final Rule
The Final Rule does not create any additional categories of eligible uses of funds aside from the initial six; however, it does expand some definitions and eligibility within certain categories, as described below. For reference, the six categories of eligible use categories are:
1. Support Public Health Expenditures
2. Address the Negative Economic Impacts of the Public Health Emergency
3. Serving the Hardest-Hit Communities and Families2
4. Replace Lost Public Sector Revenue
5. Provide Premium Pay to Essential Workers
6. Invest in Water, Sewer, and Broadband Infrastructure Below is a brief overview of the key changes in the Final Rule:
Public Health and Economic Impacts:
The Final Rule clarifies the use of funds for programs and services to address public health and economic impacts, including the use of funds for capital expenditures to support an eligible COVID-19 public health or economic response. Disproportionately Impacted Communities and Families:
1 U.S. Treasury, Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule, pg. 5 (January 2022); See also Statement Regarding Compliance with Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule, U.S. Department of Treasury, https://home.treasury.gov/system/files/136/SLFRF-ComplianceStatement.pdf. 2 This category is discussed below under the Negative Economic Impacts Category.
To: All Interested Parties
From: Ana Schwab
Andre Monette
Lowry Crook
Gerard Lederer
Date: January 17, 2022
RE: U.S. Treasury Final Rule on Coronavirus State and Local Fiscal Recovery Funds 248
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The Final Rule expands the set of households and communities that are presumed to be “impacted” and “disproportionately impacted” by the pandemic. This expansion allows recipients to utilize funds in a broad manner without additional analysis for these households, communities and entities. Replacing Lost Public Sector Revenue:
The Final Rule provides public sector recipients with the option to either select a standard amount of $10 million in lost revenue or complete a full revenue loss calculation. Once a recipient makes the selection, it cannot be changed during the program. If the recipient chooses the standard amount, that does not increase or decrease the recipient’s allocation amount.
Premium Pay:
The Final Rule broadens the “eligible workers” category and therefore affords premium pay without written justification, while also maintaining a focus on lowerincome and frontline workers. Water, Sewer and Broadband Infrastructure:
The Final Rule adds new categories of eligible uses for water and sewer investments, including lead remediation, stormwater infrastructure, and aid for private wells and septic units. Further, it significantly expands the eligibility of uses for broadband infrastructure, including investment to address access, affordability and reliability.
Additionally, in the Final Rule and supporting guidance, Treasury notes the distinction between subrecipient and beneficiary. This distinction is important for recipients when determining who needs to receive a contract to receive ARPA funds and who may be awarded funding without additional requirements on the secondary-recipient. Whether a subaward is made to a subrecipient or beneficiary, the recipient City will need to report on expenditures to both. The key distinctions are:3
Subrecipient:
o A subrecipient is an entity that receives a subaward to carry out a project funded by Fiscal Recovery Funds on behalf of a recipient. o Terms and conditions of Federal awards flow down to subawards to subrecipients, requiring subrecipients to comply with all requirements of recipients such as the treatment of eligible use of funds, federal procurement, and reporting requirements.
3 U.S. Treasury, Project and Expenditure Report User Guide – State and Local Fiscal Recovery Funds, pg. 87. (January 7, 2022).
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Beneficiary:
o Individuals or entities that are direct beneficiaries of a project funded by Fiscal Recovery Funds are not considered subrecipients.
o Households, communities, small businesses, nonprofits, and impacted industries are all potential beneficiaries of projects carried out with ARPA funds.
o Beneficiaries are not subject to the requirements place on subrecipients in the Uniform Guidance, including audit pursuant to the Single Audit Act and 2 CFR Part 200, Subpart F or subrecipient reporting requirements.
When determining if a subawardee is a subrecipient or beneficiary, the recipient should follow this chart as a guide:
Analysis of the Use of the Coronavirus State and Local Fiscal Recovery Funds 1) Support public health expenditures
The Interim Final Rule and the Final Rule provide that the funds can be used to address a broad range of public health needs related to the COVID-19 pandemic. When seeking to utilize funds under this category, recipients should (1) identify a COVID-19 public health impact on an individual or class (i.e. group) and (2) design a program that responds to that impact.4 To assist 4 Overview of the Final Rule, pg. 12.
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recipients, Treasury has provided a non-exhaustive list of enumerated uses. Further, Treasury provides recipients with flexibility to (1) identify and respond other pandemic impacts and (2) serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations.5
When expending funds to respond to the public health emergency, there are four subcategories of eligible uses: (1) COVID-19 mitigation and prevention; (2) Medical Expenses; (3) Behavior HealthCare (such as mental health treatment, substance use treatment, and other behavioral health services); and (4) Preventing and Responding to Violence.6 2 + 3) Address negative economic impacts caused by the public health emergency and Serving the Hardest-Hit Communities and Families
The Interim Final Rule and Final Rule permit the use of funds to address the negative economic impacts caused by the public health emergency. As with the public health expenditures category, when seeking to utilize funds under this category, recipients should (1) identify a negative economic impact on an individual or class (i.e. group) and (2) design a program that responds to that impact.7 To assist recipients, Treasury has provided a non-exhaustive list of enumerated uses. Further, Treasury provides recipients with flexibility to (1) identify and respond 5 Overview of the Final Rule, pg. 12. For uses beyond those enumerated, for both this section and the negative economic impacts section, please see the below section highlighting some specifics. 6 Overview of the Final Rule, pg. 14-15.
7 Overview of the Final Rule, pg. 12.
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other pandemic impacts and (2) serve other populations that experienced pandemic impacts, beyond the enumerated uses and presumed eligible populations.8 In order to address the impacts of the public health emergency more broadly and to simplify the administration of the program on recipients, in the Final Rule Treasury has provided guidance for impacted and disproportionately impacted groups, and presumptions of eligible use that accompany each category.9 The distinctions are described under each subsection.
1. Assistance to Households and Communities
a. Treasury presumes the following households and communities are impacted by the pandemic:10
Low-or-moderate income households or communities
o Low-or-moderate income households and communities are defined as those with (i) income at or below 300% of the Federal Poverty Guidelines for the size of the household based on the most recently published poverty guidelines or (ii) income at or below 65 percent of the area median income for the county and size of household based on the most recently published data.
o Treasury has created a tool for determining Low and Moderate Income (LMI) Households.
Households that experienced unemployment
8 Overview of the Final Rule, pg. 12. For uses beyond those enumerated, for both this section and the negative economic impacts section, please see the below section highlighting some specifics. 9 U.S. Treasury, Coronavirus State and Local Fiscal Recovery Funds – Final Rule, pg. 16; See also Overview of the Final Rule, pg. 16.
10 Final Rule, pg. 41; See also Overview of the Final Rule, pg. 17. 252
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Households that experienced increased food or housing insecurity Households that qualify for the Children’s Health Insurance Program (CHIP), Childcare subsidies through the Child Care Development Fund (CCDF) Program, or Medicaid
When providing affordable housing programs: households that qualify for the National Housing Trust Fund and Home Investment Partnerships Program
When Providing services to address lost instructional time in K-12 Schools: any student that lost access to in-person instruction for a significant period of time
b. Treasury has promulgated a list of enumerated eligible uses for responding to the impacted households and communities.11
c. Treasury presumes the following households and communities are disproportionately impacted by the pandemic:12
11 Overview of the Final Rule, pg. 18.
12 Final Rule, pg. 41-2; Overview of the Final Rule, pg. 19. 253
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Low-income households and communities
o Low-income households and communities are those with (i) income at or below 185 percent of the Federal Poverty
Guidelines for the size of its household based on the most recently published poverty guidelines or (ii) income at or below 40 percent of area median income for its county and size of household based on the most recently published data.
Households residing in Qualified Census Tracts
Households that qualify for Temporary Assistance for Needy Families (TANF); Supplemental Nutrition Assistance Program (SNAP); Free and Reduced-Price Lunch (NSLP) and/or School Breakfast (SBP) programs, Medicare Part D Low-Income Subsidies, Supplemental Security Income (SSI), Head Start and/or Early Head Start, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Section 8 Vouchers, Low-Income Home Energy Assistance Program (LIHEAP), and Pell Grants. For services to address educational disparities, Treasury will recognize Title I eligible schools as disproportionately impacted and responsive services that support the school generally or support the whole school as eligible.
Households receiving services provided by Tribal governments Households residing in the U.S. territories or receiving services from these governments
d. Treasury has promulgated a list of enumerated eligible uses for responding to the disproportionately impacted households and communities.13 13 Overview of the Final Rule, pg. 20.
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2. Assistance to Small Businesses14
a. Treasury defines a small business as one that no more than 500 employees, or if applicable, the size standard in number of employees established by the Small Business Administration for the industry in which the business concern or organization operates and is a small business concern as defined in section 3 of the Small Business Act (which includes, among other requirements, that the business is independently owned and operated and is not dominant in its field of operation.15
b. Similar to its position on assistance to households and communities, Treasury has provided a distinction between impacted small businesses and disproportionately impacted small businesses. These distinctions too come with enumerated lists of eligible uses.
c. Impacted Small Businesses impacted by the pandemic can be identified using the following factors (as well as others the recipient deems appropriate and in line with the statute, rule, regulations, and accompanying guidance):
i. Decreased revenue or gross receipts;
ii. Financial insecurity;
iii. Increased costs;
iv. Capacity to weather financial hardship;
v. Challenges covering payroll, rent or mortgage, and other operating costs
d. Enumerated eligible uses to assist impacted Small Businesses are:
14 Overview of the Final Rule, pg. 21-22.
15 Overview of the Final Rule, pg. 21.
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i. Loans or grants to mitigate financial hardship, such as by supporting payroll and benefits, costs to retain employees, and mortgage, rent, utility, and other operating costs
ii. Technical assistance, counseling, or other services to support business planning
e. Small Businesses are considered disproportionately impacted if they are:
i. Operating in a Qualified Census Tract
ii. Operated by Tribal government or on Tribal lands
iii. Operating in a U.S. Territory
f. Enumerated eligible uses to assist disproportionately impacted Small Businesses are:
i. Rehabilitation of commercial properties, storefront improvements, and façade improvements
ii. Technical assistance, business incubators and grants for start-up or expansion costs for small businesses
iii. Support for microbusinesses including financial, childcare, and transportation costs
3. Assistance to Nonprofits16
a. Nonprofits are considered eligible if they are 501(c)(3) or 501(c)(19) taxexempt organizations. b. Impacted nonprofits may be identified by the recipient using the following factors (as well as others the recipient deems appropriate and in line with the statute, rule, regulations, and accompanying guidance):
i. Decreased revenue (i.e. from donations and fees)
ii. Financial insecurity
iii. Increased costs (i.e. uncompensated increases in service need) iv. Capacity to weather financial hardship
v. Challenges covering payroll, rent or mortgage, and other operating costs
c. Enumerated eligible uses to assist impacted nonprofits are:
i. Loans or grants to mitigate financial hardship
ii. Technical or in-kind assistance or other services that mitigate negative economic impacts of the pandemic
16 Overview of the Final Rule, pg. 23.
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d. Nonprofits are considered disproportionately impacted if they are:
i. Operates in a Qualified Census Tract
ii. Operated by Tribal governments or on Tribal lands
iii. Operates in U.S. Territories
e. Eligible uses to address disproportionately impacted nonprofits are at the discretion of the recipient so long as they are related and reasonably proportional to addressing the disproportionate impacts.
4. Assistance to Impacted Industries17
a. There is no distinction of impacted or disproportionately impacted under this category.
b. To provide assistance under this category the recipient needs to designate an impacted industry. When designating an industry, recipients have flexibility to define narrowly or broadly but are encouraged to define narrow and discrete industries eligible for aid.
i. If the industry is in travel, tourism, or hospitality (including Tribal development districts), then the industry is deemed impacted ii. If the industry is outside of the above categories, the industry may be impacted if:
1. The industry experience at least 8 percent employment loss from pre-pandemic levels, or
2. The industry is experiencing comparable or worse economic impacts as the national tourism, travel, and hospitality industries as of the date of the final rule, based on the totality of economic indicators or qualitative data, and if the impacts were generally due to the COVID-19 public health emergency. c. Assistance to eligible impacted industries is limited to businesses, attractions, and Tribal development districts operating prior to the pandemic and affected by required closures and other efforts to contain the pandemic. Recipients are encouraged to provide aid broadly to all businesses within the impacted industry.
d. Enumerated assistance to impacted industries are:
17 Overview of the Final Rule, pg. 24-25.
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i. Aid to mitigate financial hardship, such as supporting payroll costs, lost pay and benefits for returning employees, support of operations and maintenance of existing equipment of facilities
ii. Technical assistance, counseling, or other services to support business planning
iii. COVID-19 mitigation and infection prevention measures In addition to the four subcategories noted above, Treasury also has a subcategory for Public Sector Capacity and within this Treasury has identified three main categories of eligible uses to increase capacity and workforce: (1) Public Safety, Public Health, and Human Services Staff; (2) Government Employment and Rehiring Public Sector Staff; and (3) Effective Service Delivery.
Public Safety, Public Health, and Human Services Staff o ARPA funds may be used for payroll and covered benefits for this category of workers, for the portion of the employee’s time spent responding to COVID19. The Rule lays out three steps for this eligible use:
The rule lays out guides for employees considered under each category Government Employment and Rehiring Public Sector Staff o ARPA funds may be used to hire up to pre-pandemic levels (to a baseline adjusted for historic underinvestment in the public sector); provide additional funds for employees who experienced pay cuts or were furloughed; avoiding layoffs, providing worker retention incentives; and paying for ancillary administrative costs related to hiring, support, and retention. Effective Service Delivery
o ARPA funds may be used to improve efficiency of public health and economic programs through tools such as program evaluation, data, outreach, and administrative needs caused or exacerbated by the pandemic. 4) Replace lost public sector revenue
In response to many comments submitted to Treasury, the Final Rule directs recipients to choose one of two ways to determine the amount of revenue loss experienced. Once determined, the recipient has up to that amount to spend on general government services.
Treasury defines general government “generally [as] any service traditionally provided by a government, including construction of roads and other infrastructure, provision of public safety 258
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and other services, and health and educational services.”18 General government services may include but are not limited to:
To determine the amount of Revenue Loss, recipients must choose from one of the following, once the manner of calculation is chosen, the recipient may not switch methods. The two methods are:19
1. Standard Allowance of $10 million
Under the Standard Allowance, provides a simple, convenient way to determine revenue loss. All recipients may choose this option if they would like, however, they cannot spend more than their award amount (i.e. if the award amount was $8 million, a recipient can choose the Standard Allowance, but cannot spend above $8 million on general government services under this category).
2. Calculation of actual revenue loss at four distinct points in time according to the formula in the Final Rule
The calculation of actual revenue would be done according to the following formula at four points in time, either: (a) end of each calendar year for 2020, 2021, 2022, and 2023 or (b) at the end of each fiscal year of the recipient. Recipients can choose which time-point to calculate and must remain consistent throughout the program.
Formula to calculate actual revenue loss:20
Step 1: Calculate revenues collected in the most recent full fiscal year prior to the public health emergency (i.e., last full fiscal year before January 27, 2020), called the base year revenue.
Step 2: Estimate counterfactual revenue, which is equal to the following formula, where n is the number of months elapsed since the end of the base year to the calculation date:
The growth adjustment is the greater of either a standard growth rate—5.2 percent—or the recipient’s average annual revenue growth in the last full three fiscal years prior to 18 Overview of the Final Rule, pg. 9.
19 Overview of the Final Rule, pg. 9
20 Overview of the Final Rule, pg. 10
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the COVID-19 public health emergency. Note the 5.2 percent is an increase from the Interim Final Rule which had the standard growth rate at 4.1 percent.
Step 3: Identify actual revenue, which equals revenues collected over the twelve months immediately preceding the calculation date.
Under the final rule, recipients must adjust actual revenue totals for the effect of tax cuts and tax increases that are adopted after the date of adoption of the final rule (January 6, 2022). Specifically, the estimated fiscal impact of tax cuts and tax increases adopted after January 6, 2022, must be added or subtracted to the calculation of actual revenue for purposes of calculation dates that occur on or after April 1, 2022.
Recipients may subtract from their calculation of actual revenue the effect of tax increases enacted prior to the adoption of the final rule. Note that recipients that elect to remove the effect of tax increases enacted before the adoption of the final rule must also remove the effect of tax decreases enacted before the adoption of the final rule, such that they are accurately removing the effect of tax policy changes on revenue.
Step 4: Revenue loss for the calculation date is equal to counterfactual revenue minus actual revenue (adjusted for tax changes) for the twelve-month period. If actual revenue exceeds counterfactual revenue, the loss is set to zero for that twelve-month period.
Revenue loss for the period of performance is the sum of the revenue loss on for each calculation date.
Treasury has also updated the definition of general revenue in the Final Rule in two ways:21
1. Recipients that operate utilities that are part of the recipient’s own government can choose whether to include revenue from these utilities in the calculation of lost revenue.
2. Recipient may include liquor store revenue as general revenue for purposes of calculating lost revenue.
In determining which mechanism to utilize for calculating lost revenue, Treasury will release an amended reporting form in which recipients will be able to select a one-time irrevocable election.22
21 U.S. Treasury, Coronavirus State and Local Fiscal Recovery Funds – Final Rule, pg. 245. 22 Final Rule, pg. 240
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When entering the reporting information for the lost revenue category, the below table identifies the information that will be required depending on which method the recipient choses:
5) Provide premium pay for essential workers23
The Interim Final Rule laid out a list of eligible workers, as well as a definition of eligible workers for recipients to use when determining their premium pay program. The Final Rule affirms this list and definition, while also broadening the list of eligible workers who can receive premium pay without a written justification. Premium pay is able to be given to those who are deemed essential workers and performed essential work during the pandemic. Premium pay must be in addition to wages or compensation. Further, for awards recipients may give workers up to $13/hour and may not exceed $25,000 for any single worker during the program. Pay may be given in installments or lump sums.
23 Overview of the Final Rule, pg. 35-36.
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There are three steps recipients need to undertake when utilizing this eligible use category:
Step 1: Identify an eligible worker. Eligible worker defined as a worker “needed to maintain continuity of operations of essential critical infrastructure sectors.” In addition to the below eligible workers, the chief executive (or equivalent) of each recipient may designate additional non-public sectors as critical “so long as doing so is necessary to protecting the health and wellbeing of the residents of such jurisdictions.” Including:
Step 2: Verify the worker performs/performed essential work. To be essential work, the work must be in person (cannot be for telework) and involves either (1) regular, in-person interactions with patients, the public or coworkers of the individual that is performing the work; or (2) regular physical handing of items that were handled by, or are to be handled by, patients, the public, or coworkers of the individual that is performing the work.
Step 3: Confirm the premium pay responds to the eligible employee’s eligible work during the COVID-19 public health emergency. Under the Final Rule, the following may receive premium pay without written justification:24
Eligible worker receiving premium pay is earning (with the premium pay included) at or below 150 percent of their residing state or county’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual basis; or
24 Overview of the Final Rule, pg. 36.
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Eligible working receiving premium pay is not exempt from the Fair Labor Standards Act overtime provisions; or
If a worker does not meet either of the above requirements, the recipient must subject written justification to Treasury describing how the premium pay is responsive.
Restrictions on Premium Pay
This eligible use category may not be used to reimburse a recipient for premium pay or hazard pay that has already been received by a worker. o Note, premium pay may be given retroactively, it just cannot be used to reimburse the recipient.
May not designate a volunteer an eligible worker to receive premium pay. Elected Officials may not receive premium pay. The Final Rule clearly articulates the Award Terms and Conditions signed by each recipient binds each recipient to 2 CFR 200.112 on conflicts of interest. As such, “elected officials are prohibited from using their official position and control over [ARPA] funds for their own private gain. This policy also prohibits, among other things, elected officials from steering funds to projects in which they have a financial interest or using funds to pay themselves premium pay.”25
When reporting Premium Pay, recipients will need to identify the sectors designated as essential critical infrastructure, the number of workers to be served, and also provide a narrative on how the premium pay is responsive to the eligible workers performing essential work during the public health emergency
6) Invest in water, sewer, and broadband infrastructure The Final Rule affirms and expands the use of ARPA funds for eligible water, sewer, and broadband investments.
Water and Sewer26
Recipients are able to utilize ARPA funds to address deferred maintenance to water and sewer systems, as well as additional resiliency measures to address climate change. Projects are eligible if they would be eligible for the Clean Water and Drinking Water State Revolving Loan Funds (SRF). To check a project’s eligibility, recipients should 25 Final Rule, pg. 233.
26 Overview of the Final Rule, pg. 37-38.
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refer to the Clean Water SRF Handbook and the Drinking Water SRF Handbook. In addition to the SRF eligible projects, the Final Rule permits the use of funds for stormwater infrastructure, residential wells, lead remediation, and certain rehabilitations of dams and reservoirs if it is found to be necessary, as defined by the final rule.
The Final Rule defines necessary as (1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which may include a reasonable projection of increased need, whether due to population growth or otherwise, (2) a costeffective means for meeting that need, taking into account available alternatives, and (3) for investments in infrastructure that supply drinking water in order to meet projected population growth, projected to be sustainable over its estimated useful life.
Further considerations for additional eligible projects may include:
Culvert repair, resizing, and removal, replacement of storm sewers, and additional types of stormwater infrastructure
Infrastructure to improve access to safe drinking water for individual served by residential wells, including testing initiatives and treatment/remediation strategies that address contamination Dam and reservoir rehabilitation if primary purpose of dam or reservoir is for drinking water supply and project is necessary for provision of drinking water
Broad set of lead remediation projects eligible under EPA grant programs authorized by the Water Infrastructure Improvements for the Nation Act (WIIN), such as lead testing, installation of corrosion control treatment, lead service line replacement, as well as water quality testing, compliance monitoring, and remediation activities, including replacement of internal plumbing and faucets and fixtures in schools and childcare facilities Broadband27
The Final Rule significantly expands the use of ARPA funds for broadband infrastructure. When undertaking a use of funds under this category, recipients should:
1. Identify an eligible area for investment
It is encouraged that projects serve locations that do not have access to reliable wireline 100 Mbps download and 20 Mbps upload services.
Additionally, recipients may identify additional project investments including projects to address a lack of access to reliable high-speed 27 Overview of the Final Rule, pg. 39-40.
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broadband service, lack of affordable broadband, and/or lack of reliable service.
When pursuing a project that is outside of the 100/20 parameters, the recipient must ensure that the funds are used to address an identified need for additional broadband investment that is not met by existing federal or state funding commitments and also ensure the funds will not be used for costs that will be reimbursed by other federal or state funding streams.
2. Design a project to meet high-speed technical standards Pursued projects must reliably meet or exceed symmetrical 100 Mbps download and uploads speeds. Where not possible due to the excessive cost, geography, or topography, the project must be designed to reliably meet or exceed 100/20 Mbps and scalable to a minimum of symmetrical 100 Mbps download and upload speeds.
3. Require enrollment in a low-income subsidy program
Recipients must require the service provider of any ARPA broadband project that provides service to households to either: participate in the FCC’s Affordable Connectivity Program (ACP) or provide access to a broadbased affordability program to low-income consumers that provides benefits commensurate to ACP. It is also encouraged that projects offer at least one low-cost option without data usage caps at sufficient speeds for multiple users to simultaneously telework.
The Final Rule also expressly allows recipients to invest in modernization of cybersecurity for existing and new broadband infrastructure, with no speed considerations. 265
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Capital Expenditures
The Final Rule provides clarification on the use of funds for services, program, and capital expenditures when responding to the public health emergency and negative economic impact of the public health emergency. In the clarification on capital expenditures, Treasury states that capital expenditure projects “must be related and reasonably proportional to the pandemic impact identified and reasonably designed to benefit the impacted population or class.”28 The below is a chart from Treasury to identify when a written justification is or is not required:
Treasury has also stated that the following capital expenditures are not eligible uses:
construction of new correctional facilities as a response to an increase in rate of crime; construction of new congregate facilities to decrease spread of COVID-19 in the facility; and construction of convention centers, stadiums, or other large capital projects intended for general economic development or to aid impacted industries.
Uses Beyond Those Enumerated29
While Treasury provided lists of enumerated uses, recipients have the ability to identify additional eligible uses, outside of those enumerated. When doing so, recipients should use the below criteria provided by Treasury:
28 Overview of the Final Rule, pg. 30.
29 Overview of the Final Rule, pg. 32.
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Identify COVID-19 Public Health or Economic Impact
When identify a COVID-19 public health or negative economic impact on an individual or class, recipients should determine if the individual or class is impacted or disproportionately impacted. Treasury defines impacted, for this section, as those who were “impacted by the disease itself or the harmful consequences of the economic disruptions resulting from or exacerbated by the COVID-19 public health emergency.” Treasury defines disproportionately impacted, for this section, as those who “experienced disproportionate public health or economic outcomes from the pandemic.
Treasury recognizes that pre-existing disparities, in many cases, amplified the impacts of the pandemic, causing more severe impacts in underserved communities.” Further, when identifying impacts, the recipient may classify the impact as a class or individual level.
Recipients should retain documentation supporting the impact (may be streamlined).
Recipients have flexibility to identify a class – or group of households, small businesses, or nonprofits – who experienced the impact identified. After identifying the class and impact, recipients need to document only that the individuals serve fall within the class. Recipients do not have to document specific impacts to each individual served.
When designating a class, recipients should consider:
There should be a relationship between the definition of the class the proposed response
Classes may be determined on a population basis or on a geographic basis and the response should be appropriately matched
Recipients may designate classes that experienced disproportionate impact by assessing the impact of the pandemic and finding that some populations experienced meaningfully more severe impacts than the general public
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o Recipients can use academic research or government research publications or with recipient’s own data or other existing sources
o Qualitative research and sources such as resident interviews or feedback from relevant state or local agencies
o Consider quality of the research, data, and applicability Design a Response that Addresses or Respond to the Impact When designing a response to address or respond to the impact, recipient should ensure the program, service, or other intervention must be designed to benefit the identified impact and must be reasonably proportional and related to the identified impact. Treasury defined reasonably proportional as “the scale of the response compared to the scale of the harm, as well as the targeting of the response to beneficiaries compared to the amount of the harm experienced.” When addressing a matter for a disproportionately impacted community, the program may address a preexisting disparity that contributed to more severe health and economic outcomes during the pandemic.
Restriction on the Use of Funds
The Coronavirus State and Local Fiscal Recovery Funds may not be able to be used by states or territories to directly or indirectly offset a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation during the covered period to reduce any tax or delay the imposition of taxes. Additionally, no recipient may use any of these funds: to deposit into any pension fund; to service debt or replenish financial reserves; to satisfy a settlement or judgment (unless the settlement requires recipient to provide a service or incur other costs that are an eligible use of ARPA funds, then the funds may be used for that); and may not use the funds for projects that conflict with the purpose of ARPA and its accompanying guidance – for example programs or conditions that may worsen the public health crisis.
Non-Federal Match or Cost-Share Requirements30
ARPA funds under the lost revenue category may be used generally to meet the nonfederal cost-share or matching requirements of other federal programs. However, the funds may not be used as the non-federal share for the state’s Medicaid and CHIP programs. Further, except for funds under the lost revenue category, funds may not be used to meet non-federal match or cost-share except where otherwise provided by statute.
30 Final Rule, pg. 368-70.
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Timeline for the Use of Fiscal Recovery Funds
The Coronavirus State and Local Fiscal Recovery Funds may only cover costs incurred from March 3, 2021 through December 31, 2024. Unlike Coronavirus Relief Funds, funds under this program from ARPA are only required to be obligated by December 31, 2024. The funds must be expended by December 31, 2026.31
Records, Reporting, and Recoupment
Recipients must maintain records for a period of five years have all funds have been expended or returned to Treasury, whichever is later. Treasury directs that “[t]his includes those which demonstrate the award funds were used for eligible purposes in accordance with the ARPA, Treasury’s regulations implementing those sections, and Treasury’s guidance on eligible use of funds.”32 Recipients should direct subrecipients, who by definition of their role are acting on behalf of the recipient, to also keep records for a period of five years after the funds are expended or December 31, 2031, whichever is later.
Below is a table highlighting when reporting is due to Treasury. Treasury also created a list for recipients to identify their Reporting Tiers, which can be referenced for assistance. 31 Overview of the Final Rule, pg. 8.
32 U.S. Treasury, Project and Expenditure Report User Guide – State and Local Fiscal Recovery Funds, pg. 80 (January 7, 2022).
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Treasury notes that Funds used in ways that violate the Final Rule are subject to remediation and recoupment.33 These violations may be identified through reports and other sources. If and when a violation is found, Treasury will provide notice to the Recipient in writing with an opportunity to request reconsideration. If Treasury does not receive a request for reconsideration, the initial notice will be deemed the final notice.
Additional Information
Treasury published a webinar on the Final Rule and an accompanying slide presentation.
These are both helpful resources.
For any additional questions please reach out to any of the authors of this memorandum. 33 Overview of the Final Rule, pg. 44.
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Agenda Item No.: 11.C
Mtg. Date: 04/25/2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ALAN PALERMO, PROJECT MANAGER
THRU: ELAINE JENG P.E., CITY MANAGER
SUBJECT: REVIEW DESIGN PROGRESS FOR THE 8" SEWER MAIN ALONG ROLLING HILLS ROAD; AND APPROVE AN AMENDED
PROFESSIONAL SERVICES AGREEMENT WITH NV5 FOR
ADDITIONAL SERVICES TO COMPLETE CONSTRUCTION
DOCUMENTS.
DATE: April 25, 2022
BACKGROUND:
The City Council engaged the services of NV5 to provide engineering design for the 8" sewer main along Portuguese Bend Road/Rolling Hills Road. Since the commencement of the design work, NV5 has met the 65% design, 90% design, and the 100% design milestones.
This proposed sewer main crosses several jurisdictions and approval from each jurisdiction is necessary before the project is deemed complete. The additional jurisdictions reviewing the plans are Rolling Hills Estates and City of Torrance.
The City of Torrance has made several requests requiring additional design services in order to approve the plans. First request is the requirement to have Traffic Control Plans for construction activity be prepared, submitted, reviewed, and approved with the Sewer Improvement Plans. The second request is for additional field utility research involving potholing to field verify existing water pipelines and storm drain pipelines to verify the required clearance from the proposed sewer line. The proposed sewer line is not meeting clearance requirements using current as-built information for existing water pipelines and storm drain pipelines and after several discussions with City of Torrance design options have been exhausted.
NV5's request for additional services includes additional design services for the proposed sewer as required once the field location of existing utilities is verified. Their proposal also includes an option to design relocation of existing water pipelines to support the sewer design if necessary/no other sewer design options are available.
The current estimate for construction cost is $1,833,852 and is attached for reference. The cost estimate includes the upsizing of the existing 8" sewer main along Rolling Hills Road to 271
10" and 12" sewer required by the Los Angeles County Sanitation and the City of Torrance, at three different locations and the construction of 1,653 linear feet of a new 8" sewer main along Rolling Hills Road into the City of Rolling Hills. This cost estimate includes all the other components required for a sewer main construction project (manholes, traffic control, sewer bypass for construction, etc.) and a 20% contingency cost. This cost estimate will be updated with design changes resulting from the field verification of existing utilities and any other agency comments.
DISCUSSION:
The additional design services are necessary to obtain approval from the City of Torrance and proceed to the construction phase of this project.
Upon approval of the plans and specifications from all necessary jurisdictions, the project will be presented to City Council for funding allocation, and approval to release for bid for construction. The project could be constructed in phases and the plans are currently structured to be released as one or two projects. Phase 1 would be the construction of the new 8" sewer from Rolling Hills City Hall/Gate House to the existing 8" sewer in Rolling Hills Road in the City of Rolling Hills Estates. The down stream 8" sewer should be able to accommodate sewer flows from City Hall and the Gate House. The cost for Phase 1 would be approximately $1,100,000 and can be partially funded with the City's ARPA allocation of $441,000.
Phase 2 would encompass upgrading the 8" sewer within City of Torrance to 10" and 12" sewer and this upgrade is needed to support future connections of residential lots in Rolling Hills to the proposed sewer system. The timing for when this improvement is needed would be contingent on future sewer projects in Rolling Hills that would require this downstream upgrade be in place.
FISCAL IMPACT:
NV5's fee proposal to complete engineering design for the Sewer Improvement Project is $92,411 . The fee includes bid support, construction administration during the bidding and construction phases of the project, and an optional fee for waterline design. There is no funding available in the adopted FY 2021-2022 budget for the design fee. If the City Council should move forward with an amended agreement with NV5 to complete construction documents to obtain all agency approvals, General Fund Reserves will be used to pay for the engineering design fees.
RECOMMENDATION:
Approve additional service to complete construction documents requested by the City of Torrance and direct staff to prepare Amendment No. 1 to the service agreement with NV5 in the amount of $92,411.
ATTACHMENTS:
CL_AGN_220314_CC_SewerMain_PortugueseBend_CostEstimate_2021.pdf NV5_Rolling Hills Sewer Main Torrance Additions 3282022-2.pdf 272
Description Unit Cost Quantity Amount
Item
No. Sewer Main - Portuguese Bend Road/ Rolling Hills Road 1 Mobilization and Demobilization (approx. 7%) 80,000 1 LS $80,000 2 Temporary Traffic Control Plan and Implementation 50,000 1 LS $50,000 3 Traffic Striping, Legends, and Pavement Markers Restoration 15,000 1 LS $15,000 4 Best Management Practices BMP 25,000 1 LS $25,000
5 Furnish, Install and Remove Temporary Bypass Pumping System with Pipes and all Appurtenances 50,000 1 LS $50,000
6 Remove Existing 8" VCP Sewer 20 578 LF $11,560
7 Construct 8” VCP Sewer 350 1,653 LF $578,550
8 Construct 10” VCP Sewer 500 351 LF $175,500
9 Construct 12” VCP Sewer 600 281 LF $168,600
10 Connect 12" VCP Sewer Main to existing Manhole and Modify Base 15,000 2 EA $30,000 11 Connect 10" VCP Sewer Main to existing Manhole and Modify Base 15,000 2 EA $30,000 12 Connect 8” VCP Sewer Main to existing Manhole and Modify Base 15,000 1 EA $15,000 13 Construct New 48” Precast Concrete Sewer Manhole 25,000 4 EA $100,000 14 Remove Existing Manhole at Station 12+93.11 10,000 0 EA $0 15 Reconnect Existing Sewer Laterals to New Sewer Main 5,000 4 EA $20,000 16 Construct a New 4" Sewer Lateral to City Hall, Tennis Courts & Gate House Restroom and Cap End for Future Use 2,500 3 EA $7,500
17 CCTV New Sewer Main 10,000 1 LS $10,000
18 Remove interfering portion of Abandoned Utility and plug ends 1,500 1 EA $1,500 19 Pressure Wash/Clean existing Manhole and apply Epoxy/Polyurethane Lining System (including the base) 10,000 6 EA $60,000
20 Remove and Replace, in kind, Existing Improvements including but not limited to Curb and Gutter, PCC Sidewalk landscaping and Irrigation, protect existing wood fencing
500 200 SF $100,000
Subtotal $1,528,210
Contingency $305,642
ESTIMATED CONSTRUCTION COST TOTAL 1,833,852 $
Engineer's Opinion of Probable Construction Cost
20%
CITY OF ROLLING HILLS
22-Nov-21
Portuguese Bend Sewer Main_Cost Estimate_11222021.xlsx
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163 Technology Drive, Suite 100 | Irvine, CA 92618 | www.NV5.com | Office 949.585.0477 March 28, 2022
Alan Palermo
City of Rolling Hills
2 Portuguese Bend Road
Rolling Hill, CA 90274
Subject: Rolling Hills Portuguese Bend Sewer Main Improvement Project –Traffic Control Plans, Potholing, Updated Design, Waterline Relocation
Dear Mr. Palermo,
NV5 is currently completing the design for the Rolling Hills Portuguese Bend Sewer Main Improvement Project. The project impacts the intersection of Crenshaw Boulevard and Rolling Hills Road along with Rolling Hills Road itself on both sides of the street. The City of Torrance has recently requested an engineered traffic control plan in order for the Contractor to install the new sewer. We will follow the appropriate applicable standards such as City, County, and State Standard Plans and Specifications, APWA Standard Specifications for Public Works Construction “Greenbook,” and Manual of Traffic Uniform Control Devices.
It appears due to the alignment of the sewer, the traffic control will have to be phased. For the first phase, the majority of Rolling Hills Road is a 60-foot travelway with the sewer running near the centerline of the street. It appears that NV5 will be able to design traffic control to allow the Contractor to work in the center of the roadway with a single lane of traffic on each side of the roadway with “no street parking” posted. For the second phase, the sewer moves to one side of Rolling Hills Road, so traffic will be switched to the opposite side of the road, again with a single lane of traffic each way with “no street parking” posted. The final phase will impact the intersection at Crenshaw Boulevard and Rolling Hills Road.
NV5 will prepare traffic control plans for the intersection of Crenshaw Boulevard with Rolling Hills Road along with Rolling Hills Road within the above three phases. NV5 will prepare a base map for the project area based on Google Earth images, since these required traffic control plans are outside of our original survey limits. NV5 will assume that the City of Torrance will review the plans and has planned for a submission to the City of Torrance and a resubmission upon incorporation of the City’s initial comments to the City for their approval. Akram Hindiyeh, PE, TE, a State of California Registered Traffic Engineer, will supervise the preparation of the traffic control plans by our CAD Designer, Rafael Gutierrez, who is already familiar with the project, having previously completed the sewer design drawings for the City of Torrance.
NV5 will work with our subconsultant, TE Roberts, to perform the Potholing. NV5 understands that TE Robert’s crew is subject to prevailing wages and NV5 will mark-up TE Robert’s subconsultant costs by 15%. The potholing will include the City of Torrance Permits currently listed on the City’s website for $1,561, as well as traffic control plans required for permitting which we are assuming $2,500 for, and hot patch back of the pothole locations at an additional $2,500 for the two water lines (8-inch and 6-inch to Fire Hydrant) and 72-inch Storm Drain pothole.
NV5 will update the design to reflect the pothole information for the potholes on Station 12+43.44 to Station 10+34.94. We will include updates to the specifications for pipe sleeves as required at crossings.
NV5 assumes two (2) resubmittals to the City of Torrance for review.
We have included an optional scope and fee to design/revise the existing 8-inch and 6-inch waterlines 274
163 Technology Drive, Suite 100 | Irvine, CA 92618 | www.NV5.com | Office 949.585.0477