Agenda packet — Roseville City Council, August 7, 2024 (part 1 of 2)

AGENDA
August 7, 2024

CITY COUNCIL
6:00 p.m.

Council Chambers
311 Vernon Street
Roseville, CA
www.roseville.ca.us

THE CITY OF ROSEVILLE WELCOMES YOUR PARTICIPATION
If an agenda item is open to public comment, such public comment shall be addressed to the chair of the meeting.

Public Comment
- Speakers have three minutes under Public Comment to speak on issues that
are not listed on the agenda and are within the City's jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda.

Consent Calendar
- If applicable, the Consent Calendar consists of routine items that may be approved by one motion. Any person can remove an item from the Consent Calendar to be discussed separately.

Agenda Items
- Speakers have five minutes to address items that are listed on the agenda.

Levine Act Provisions
-

The Levine Act requires a Party (or its agent (s)) to a Proceeding before the City of Roseville that involves any action or consideration to their contract, license, permit, or other entitlement for use, to disclose any campaign contribution made to City elected or appointed officers (including Councilmembers, Planning Commissioners, and members of other City boards and commissions) totaling more than $250 within the 12 months before the City decision.

Americans with Disabilities Act
- Notify the City Clerk or Secretary at least 72 hours in advance if special assistance is required to participate in a meeting including the need of auxiliary aids or services.

Audio/Visual Presentations
- If making a presentation regarding an agenda item, audio/visual materials must be submitted to the City Clerk or Secretary at least 72 hours in advance.

Security procedures are in place to attend Roseville City Council meetings.

All attendees must
successfully pass through a security metal detector.

Any person with a prohibited item will not be
allowed entry.

Prohibited items include, but are not limited to: firearms (even with valid CCW), knives, pepper spray/mace, explosives of any kind/ any weapons and/or dangerous devices of any kind, illegal drugs and alcohol.

Roseville City Clerk 311 Vernon Street, Roseville, CA 916-774-5200 TDD 916-774-5220

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

4. MEETING PROCEDURES

5. PUBLIC COMMENTS

6. CONSENT CALENDAR

BEGINNING OF CONSENT CALENDAR
Minutes

6.1. Minutes of Prior Meetings
Memo from City Clerk Technician Melissa Lipp and City Clerk Carmen Avalos recommending the City Council approve the minutes of the July 17, 2024 City Council Meeting.

CC #:
3480
File #:
0102-03
CONTACT:

Melissa Lipp [email protected] 916-774-5268

Bids / Purchases / Services

6.2. Church Street and Pump Station 26 Collection System Improvements Project – Award of Construction Agreement
Memo from Assistant Engineer William Montz and Environmental Utilities Director Richard Plecker recommending the City Council adopt RESOLUTION NO. 24-272

APPROVING AN AGREEMENT, BY AND BETWEEN THE
CITY OF ROSEVILLE AND MOUNTAIN CASCADE, INC., AND

AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE. Staff
requests Council approval and award of a
Construction Agreement to Mountain Cascade, Inc. for the Church Street and Pump Station 26 Collection System Improvements Project. The agreement amount is for $7,065,151, which includes $4,278,000 for the work at Church Street funded by the Wastewater Rehabilitation Fund and $2,787,151 for the work at Pump Station 26 funded by the South Placer Wastewater Authority.

Additionally, this item requests authorization for the City Manager or his designee to approve and pay for contract change orders for the project that could increase the contract amount by no more than 5% for the work at Church Street in the amount of $213,900, and by no more than 5% for the work at Pump Station 26 in the amount of $139,358 for a total not-to-exceed change order amount of $353,258 and a total, not-to-exceed contract amount of $7,418,409.

CC #:
3462
File #:
0203-09
CONTACT:

William Montz 916-938-0154 [email protected]

6.3. On-Call Construction Fencing Services – Contract Purchase Agreements Memo from Assistant Engineer William Montz and Environmental Utilities Director Richard Plecker recommending the City Council adopt RESOLUTION NO. 24-275 APPROVING A CONTRACT PURCHASE AGREEMENT, BY

AND BETWEEN THE CITY OF ROSEVILLE AND ARROW CREATIVE
SOLUTIONS, INC. DBA ARROW FENCE, AND AUTHORIZING THE CITY

MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE (3003937); and adopt RESOLUTION NO. 24-276

APPROVING A

CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY

OF ROSEVILLE AND CRUSADER FENCE COMPANY, LLC, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE (3003939). Staff
requests Council approval of
two (2) On-Call Construction Fencing Service Agreements with a not-to-exceed cost for the services of $350,000 per year per Agreement, for up to four years, and authorization for the City Manager to execute them on behalf of the City.

These projects may be funded from the Environmental Utilities' Rehabilitation Program, Operating Budget, or Capital Improvement Program. There will be no fiscal impact on the General Fund.

CC #:
3466
File #:
0203-09
CONTACT:

William Montz 916-938-0154 [email protected]

6.4. West Zone Reclaimed Water Tanks Rehabilitation Project - Award of Construction Agreement and Budget Adjustment
Memo from Senior Engineer Inderpreet Chaggar and Environmental Utilities Director Richard Plecker recommending the City Council adopt RESOLUTION NO. 24-283

APPROVING AN AGREEMENT, BY AND BETWEEN THE

CITY OF ROSEVILLE AND EURO STYLE MANAGEMENT, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE; and adopt ORDINANCE NO. 6848
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024- 25 BUDGET AND DECLARING THIS ORDINANCE TO BE
IMMEDIATELY EFFECTIVE AS AN APPROPRIATION MEASURE. Staff requests Council
approval and award of a Construction Agreement to Euro Style Management in the amount of $1,069,944 for the West Zone Reclaimed Water Tanks Rehabilitation Project. Staff also requests authorization for the City Manager or his designee to approve and pay for contract change orders for this project that could increase the contract amount by no more than 10 percent ($97,268) or a not-to-exceed total contract amount of $1,069,944. Lastly, staff requests approval of a budget adjustment to increase the project budget by $879,304 to $1,379,304, from available resources in the Wastewater Rehabilitation Fund.

CC #:
3475
File #:
0203-09
CONTACT:

Inderpreet K Chaggar 916-774-5553 [email protected]

6.5. 60kV Circuit Breaker Replacement Project - Capital Improvement Project Approval, Sole Source Purchase Order and Budget Adjustment Memo from Power Engineer Vincent Bottoni and Electric Utility Director Daniel Beans recommending the City Council adopt ORDINANCE NO. 6849 AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024- 25 BUDGET AND DECLARING THIS ORDINANCE TO BE
IMMEDIATELY EFFECTIVE AS AN APPROPRIATION MEASURE. Staff requests Council approve a Capital Improvement Project creation and a sole source purchase of one Siemens circuit breaker. A sole source purchase is recommended because the City has standardized its 60kV circuit breaker fleet (over 60 currently installed) on this circuit breaker to facilitate maintenance, training and spare parts, and Roseville Electric needs to replace the circuit breaker at the Sierra Vista substation with an identical model as the foundation and wiring has been designed specifically for the Siemens SPS2 circuit breaker. Staff also requests Council approval of a budget adjustment appropriating $395,000 in the Electric Fund to the Project in order to purchase materials and perform labor to replace a 60kV circuit breaker at Pleasant Grove One substation.

CC #:
3476
File #:
0203-07
CONTACT:

Vincent Bottoni 916-774-5641 [email protected]

6.6. Fire System Services - Contract Purchase Agreement Amendment Memo from Administrative Technician Darci Carpenter and Public Works Director Jason Shykowski recommending the City Council adopt RESOLUTION NO. 24-273
APPROVING AMENDMENT #1 TO

CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY
OF ROSEVILLE AND SIERRA BUILDING SYSTEMS, INC. A LOW

VOLTAGE INTEGRATOR, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE
(3003134).

Staff requests Council approve a first amendment to the contract purchase agreement with Sierra Building Systems Inc. to increase the contract by $40,000, from $80,000 to $120,000. The requested spending increase is essential to maintaining necessary expenditures under the existing agreement for the remainder of the contract period, supporting ongoing fire systems compliance, maintenance, and the replacement of the intrusion alarm panel at Martha Riley Library. Funding for the first amendment is included in the FY2024- 25 budget in the Facility Services and Facility Rehabilitation Funds.

CC #:
3464
File #:
0203-13
CONTACT:

Darci Carpenter 916-774-5702 [email protected]

6.7. Martha Riley Library Data Center Heating, Ventilation, and Air Conditioning Replacement (RFQ 10-3386) – Contract Purchase Agreement Memo from Buyer Tiffany Valdez and Assistant City Manager/Chief Financial Officer Dennis Kauffman recommending the City Council adopt RESOLUTION NO. 24-274 APPROVING A CONTRACT PURCHASE AGREEMENT, BY

AND BETWEEN THE CITY OF ROSEVILLE AND MESA ENERGY
SYSTEMS, INC. DBA EMCOR SERVICES MESA ENERGY AND

AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE (3003971). Staff requests Council approve a
contract purchase agreement with Mesa Energy Systems, Inc. dba Emcor Services Mesa Energy as the lowest responsive and responsible bidder for Request for Quotation No. 10-3386, Martha Riley Library Data Center Heating, Ventilation, and Air Conditioning Replacement. The cost of the Agreement is $585,447. Additionally, adopt a resolution authorizing the City Manager to sign the Contract Purchase Agreement and authorizing the Public Works Director or designee to approve change order requests for this project up to 10% ($58,544.70) as a construction contingency, for a grand total of $643,991.70. The
FY2021-22 Riley Library -
Facilities Rehabilitation
project is
funded primarily by the Facility Rehabilitation
Fund, which receives its funding from the General Fund. Other funding sources include the Water Rehabilitation Fund, Wastewater Rehabilitation Fund, Solid Waste Rehabilitation Fund, and the Electric Fund.

CC #:
3465
File #:
0203-04
CONTACT:

Tiffany Valdez 916-746-1109 [email protected]

Resolutions

6.8. Power Transaction - Enabling Agreement
Memo from Electric Resource Planner Glenn Hoffman and Electric Utility Director Daniel Beans recommending the City Council adopt RESOLUTION NO. 24-277 APPROVING AN AGREEMENT, BY AND BETWEEN THE

CITY OF ROSEVILLE AND UNITED STATES OF AMERICA,

DEPARTMENT OF ENERGY ACTING BY AND THROUGH THE

BONNEVILLE POWER ADMINISTRATION, AND AUTHORIZING THE

CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF
ROSEVILLE. Staff requests Council approval of an
agreement to Enable Future
Purchases, Sales and Exchanges of Power and Other Services (Enabling Agreement) with Bonneville Power Administration for wholesale power transactions.

There is no fiscal impact associated with the execution of the Enabling Agreement.

CC #:
3467
File #:
0800-03
CONTACT:

Glenn Hoffman 916-746-1670 [email protected]

6.9. Vista Oaks Subdivision Located in Rocklin - Summary Vacation of Public Utility Easement
Memo from City Engineer Marc Stout and Development Services Director Mike Isom recommending the City Council adopt RESOLUTION NO. 24- 278

ORDERING SUMMARY VACATION OF A PUBLIC UTILITY

EASEMENT
.

Staff requests Council approve the vacation of the easement as described therein and authorize the City Manager to execute any documents, including a quitclaim deed, required to effectuate the conveyance of the vacated easement to the respective property owners if requested by their title company.

These actions have no fiscal impact to the City's General Fund.

CC #:
3469
File #:
1002-06
CONTACT:

Marc Stout 916-774-5482 [email protected]

6.10. Waste Services Cost-of-Service Study – Professional Services Agreement Memo from Environmental Utilities Business Analyst Joseph Barrow and Environmental Utilities Director Richard Plecker recommending the City Council adopt RESOLUTION NO. 24-280

APPROVING A PROFESSIONAL

SERVICES AGREEMENT, BY AND BETWEEN THE CITY OF
ROSEVILLE AND R3 CONSULTING GROUP, INC., AND AUTHORIZING

THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE.

Staff requests Council approve a professional services
agreement with R3 Consulting Group, Inc. for a utility rate study for waste services in the amount of $79,850. Funding is from the available resources in the Environmental Utilities Department’s FY2024-25 annual budget in the Waste Services Operations Fund.

CC #:
3472
File #:
0203-09
CONTACT:

Joseph Barrow 916-746-1732 [email protected]

6.11. Engage, Empower, Implement Program - Grant Application Memo from Economic Development Analyst Gina McColl and Economic Development Director Melissa Anguiano recommending the City Council adopt RESOLUTION NO. 24-282 APPROVING A GRANT APPLICATION TO

THE SACRAMENTO AREA COUNCIL OF GOVERNMENTS FOR THE

ENGAGE, EMPOWER, IMPLEMENT PROGRAM, AND AUTHORIZING

THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE ALL RELATED

FORMS AND AGREEMENTS ON BEHALF OF THE CITY OF
ROSEVILLE. Staff requests Council approve an application to the Sacramento Area Council of Governments for the Engage, Empower, Implement Program Grant and to execute the necessary application, standard agreement and relevant documents. The grant funds would be used to implement next steps resulting from the City’s involvement with the Invest Health Partnership’s City Health Dashboard Data Challenge grant in partnership with Health Education Council and its affiliates to advance workforce development and economic vitality in support of the City’s Economic Development Strategic Plan. The recommended action does not impact the City's General Fund.

CC #:
3474
File #:
0110 & 0214
CONTACT:

Gina McColl 916-774-5452 [email protected]

Ordinances (for introduction and adoption - appropriation/urgency measures)

6.12. Church Street and Pump Station 26 Collection System Improvements Project – Professional Services Agreement and Budget Adjustment
Memo from Assistant Engineer William Montz and Environmental Utilities Director Richard Plecker recommending the City Council adopt RESOLUTION NO. 24-279 APPROVING A PROFESSIONAL SERVICES AGREEMENT,

BY AND BETWEEN THE CITY OF ROSEVILLE AND INFERRERA
CONSTRUCTION MANAGEMENT GROUP, INC., AND AUTHORIZING

THE CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE; and adopt ORDINANCE NO. 6845 AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25 BUDGET AND

DECLARING THIS ORDINANCE TO BE IMMEDIATELY EFFECTIVE AS AN APPROPRIATION MEASURE. Staff requests Council approval and award of a Professional Services Agreement to Inferrera Construction Management Group, Inc. to provide Construction Management Services for the Church Street and Pump Station 26 Collection System Improvements Project.

The agreement amount is for a total of $642,497, which includes $445,150 for the work at Church Street funded by the Wastewater Rehabilitation Fund, and $197,347 for the work at Pump Station 26 funded by the South Placer Wastewater Authority. Staff also requests approval of a budget adjustment of $300,000 to fund the Church Street portion of the work from available resources in the Wastewater Rehabilitation Fund.

CC #:
3470
File #:
0203-09 & 0201-01
CONTACT:

William Montz 916-938-0154 [email protected]

6.13. Wastewater Industrial Pretreatment Program Update and Commercial Discharger Program Development – Professional Services Agreement and Budget Adjustment
Memo from Wastewater Utility Manager Tracie Mueller and Environmental Utilities Director Richard Plecker recommending the City Council adopt RESOLUTION NO. 24-281

APPROVING A PROFESSIONAL SERVICES

AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND

BROWN AND CALDWELL, AND AUTHORIZING THE CITY MANAGER
TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE; and adopt ORDINANCE NO. 6847 OF THE COUNCIL OF THE CITY OF

ROSEVILLE AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL
YEAR 2024-25 BUDGET AND DECLARING THIS ORDINANCE TO BE
IMMEDIATELY EFFECTIVE AS AN APPROPRIATION MEASURE.

Staff
requests Council approval and award of a Professional Services Agreement to Brown and Caldwell for the Industrial Pretreatment Program Update and Commercial Discharger Program Development Project. The agreement amount is for a total

of $344,023 from the Wastewater Regional Rehabilitation Fund. Staff also requests approval of a budget adjustment of $175,000 for the project, from available resources in the Wastewater Regional Rehabilitation Fund, increasing the current project budget from $275,000 to $450,000. The City will be reimbursed for approximately 35% of project costs from its partners, the South Placer Municipal Utility District and Placer County.

CC #:
3473
File #:
0203-09
CONTACT:

Tracie Mueller 916-746-1812 [email protected]

6.14. Council Discretionary Funds - Budget Adjustment
Memo from Management Analyst Heather Blanco and City Clerk Carmen Avalos recommending the City Council adopt ORDINANCE NO. 6843
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024- 25 BUDGET AND DECLARING THIS ORDINANCE TO BE
IMMEDIATELY EFFECTIVE AS AN APPROPRIATION MEASURE. Staff request Council approval of a budget adjustment in the amount of $3,822 to carry forward unappropriated FY2023-24 Discretionary Funds for use in FY2024-25. There is no fiscal impact to the City's General Fund.

CC #:
3463
File #:
0102 & 0201-01
CONTACT:

Heather Blanco 916-746-1171 [email protected]

6.15. Rex Fortune Adventure Club Facility Project - Budget Adjustment Memo from Recreation Superintendent Rob Nakamura and Parks, Recreation & Libraries Director Jill Geller recommending the City Council adopt ORDINANCE NO. 6844 AUTHORIZING CERTAIN AMENDMENTS TO
THE FISCAL YEAR 2024-25 BUDGET AND DECLARING THIS

ORDINANCE TO BE IMMEDIATELY EFFECTIVE AS AN
APPROPRIATION MEASURE. Staff requests Council approve a budget adjustment in the amount of $114,000, appropriating funds in the Youth Development Fund to the Adventure Club Facility - Rex Fortune Project for completion of the installation of the portable facility on the Rex Fortune Elementary School campus. A $637,500 project was approved and funded on September 7, 2022 to purchase and install a modular building in partnership with the Center Unified School District for the purpose of providing Adventure Club services. Additional funds are required for unplanned Division of State Architect’s expenses for permitting and inspection requirements, fees for a lot line adjustment between the Center Unified School District and the City, and unplanned expenses for underground utility and asphalt preparation and surfacing. This budget adjustment will increase the total project budget to $751,500. The building is expected to be completed and open for business for the 2024-25 school year. There are available resources in the Youth Development Fund for this project.

CC #:
3468
File #:
0704 & 0201-01
CONTACT:

Rob Nakamura 916-774-5135 [email protected]

Ordinances (for second reading and adoption)

6.16. Second Reading - Roseville Municipal Code Amendment - Massage Services ORDINANCE NO. 6846 AMENDING CHAPTER 9.10 OF TITLE 9 OF THE

ROSEVILLE MUNICIPAL CODE REGARDING MASSAGE SERVICES,
for second reading and adoption.

CC #:
3471
File #:
0323
CONTACT:

Erika Broussard 916-746-1069
[email protected]
Josh Simon 916-774-5059 [email protected]
Travis Cochran 916-774-5325 [email protected]

Reports / Requests

6.17. Annual Audit Reports for the Fiscal Year Ended June 30, 2023 - Environmental Utilities Enterprise Funds, Other Post-Employment Benefit Trust Fund, and Roseville Natural Gas Financing Authority
Memo from Accounting Manager Teri Quinlan and Assistant City Manager/Chief Financial Officer Dennis Kauffman recommending the City Council receive three informational financial reports for the fiscal year ended June 30, 2023, along with four required auditor communication letters. There is no impact to the City's General Fund.

CC #:
3461
File #:
0202
CONTACT:

Teri Quinlan 916-774-5316 [email protected]

END OF CONSENT CALENDAR

7. APPOINTMENTS

7.1. Library Board and Senior Commission - Unscheduled Vacancy Appointments Memo from City Clerk Technician Katrina Six and City Clerk Carmen Avalos recommending the City Council appoint one (1) individual to the Library Board to a term expiring December 31, 2026 from the applications received from:

Barbara Fullmer and Vicki Whitlock; and appoint one (1) individual to the Senior Commission to a term expiring December 31, 2024 from the applications received from: Sheri Kimbro, Shyan Lee, and Hannah Wagner.

CC #:
3479
File #:
0103 & 0103-04-03 & 0103-12-03
CONTACT:

Katrina Six 916-774-5267 [email protected]

8. SPECIAL REQUESTS/REPORTS/PRESENTATION

8.1. Council Discretionary Funds - CalAsian Foundation
Memo from Executive Assistant Heather Blanco and City Clerk Carmen Avalos requesting the City Council consider a request for $500 from Council Discretionary Funds for the CalAsian Foundation for their 2nd annual Pickleball Tournament. The balance remaining in the Council’s Discretionary Funds for FY2024-25 is $18,821. There is no fiscal impact to the City’s General Fund.

CC #:
3477
File #:
0102
CONTACT:

Heather Blanco 916-746-1171 [email protected]

8.2. Summary of Federal, State, and Local Marijuana and Hemp Laws Memo from Deputy City Attorney Travis Cochran and Assistant City Manager Ryan DeVore recommending the City Council receive a presentation regarding the history and current status of federal and state laws for marijuana and hemp, what the City has done to regulate marijuana, and a loophole in federal law that makes regulation of intoxicating hemp products challenging. A presentation regarding this information was requested by a majority of the City Council during its May 1, 2024 meeting.

CC #:
3478
File #:
0500
CONTACT:

Ryan DeVore 916-774-5362 [email protected]
Travis Cochran 916-774-5325 [email protected]

9. COUNCIL REPORTS / PUBLIC COMMENTS

10. ADJOURNMENT

COUNCIL COMMUNICATION
CC #:

File #:

Title:

Meeting Heading
Contact:

Meeting Date: 8/7/2024
Item #: 0.1.

COUNCIL COMMUNICATION
CC #:

File #:

Title:

Consent Calendar
Contact:

Meeting Date: 8/7/2024
Item #:

COUNCIL COMMUNICATION
CC #:
3480
File #:
0102-03
Title:

Minutes of Prior Meetings
Contact:

Melissa Lipp [email protected] 916-774-5268

Meeting Date: 8/7/2024
Item #: 6.1.

RECOMMENDATION TO COUNCIL
Approve the minutes of the
July 17, 2024 City Council Meeting.

BACKGROUND
Not applicable.

FISCAL IMPACT
There is no fiscal impact associated with this request.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The City Council minutes are not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal B - Support community engagement and advocacy

Respectfully Submitted,
Melissa Lipp, City Clerk Technician
Carmen Avalos, City Clerk

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
July 17, 2024

COUNCIL COMMUNICATION
CC #:
3462
File #:
0203-09
Title:

Church Street and Pump Station 26 Collection System Improvements Project – Award of Construction Agreement
Contact:

William Montz 916-938-0154 [email protected]

Meeting Date: 8/7/2024
Item #: 6.2.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council:

1 .

Approve a construction agreement for the Church Street and Pump Station 26 Collection System Improvements project with Mountain Cascade, Inc. in the amount of $7,065,151 and adopt a resolution authorizing the City Manager to execute it. 2 .

Authorize the City Manager or his designee to approve and pay for contract change orders for this construction project that could increase the contract amount by no more than 5% ($353,258) or a not-to-exceed total contract amount of $7,418,409.

BACKGROUND
Upgrades to existing critical Wastewater Collection’s pipeline infrastructure near Church Street as well as along Sierra College Boulevard in Roseville are needed to prevent future sanitary sewer overflows during storm events which violate the Wastewater Collection’s Waste Discharge Requirements.

Church Street (Schedule A):

In April 2023, Water Works Engineers provided the Church Street Alternatives Modeling Results Technical Memorandum, outlining options to relieve surcharging and reduce the risk of sewer spills in the Church Street area which occurred during storm events during the winter of 2022/2023. City staff selected the alternative that includes upsizing of multiple sewer gravity mains via pipe bursting, open cut installation of a new sewer gravity main, and abandonment of an existing gravity sewer main. The Wastewater Collections Group needs this work to be completed as soon as possible to avoid future sewer overflows during future wet weather seasons and potential fines.

Pump Station 26 (Schedule B):

The City of Roseville’s sewer system hydraulic model indicates that the regional trunk sewer on Old Auburn Road could be subject to overflows, and that this capacity deficiency will be further exacerbated under buildout development. Woodard and Curran was commissioned by the City of Roseville to conduct an analysis comparing multiple options to correct the capacity issue. This Project incorporates recommendations from this analysis to improve pipeline capacity limitations along Sierra College Boulevard.

Combined Projects:

City staff is combining the Church Street Collection System Improvements Project with the Regional Pump Station 26 and Force Main Capacity Improvements Project (Pump Station 26 Project). The two projects include a similar scope of work involving gravity sewer main pipe bursting and areas of open-cut pipe installation. Pipe bursting is being used where possible on both projects to minimization of traffic disruptions and reduce restoration costs.

After two unsuccessful bids for the pipeline work in the Pump Station 26 Project in 2023, EU staff identified the option to combine the pipeline work in the Pump Station 26 Project with the newly identified work in the Church Street Capacity Analysis to create a larger, more attractive bid package.

The new plans and specifications for the project were approved by City Council on May 15, 2024, and a Request for Bids for construction services was published on May 16, 2024. On June 17, 2024 two contractors submitted proposals to the City Clerk’s office and a public bid opening identified Mountain Cascade, Inc. as the apparent low bidder.

FISCAL IMPACT
The Construction Agreement with Mountain Cascade is $7,065,151, which includes $4,278,000 for the work at Church Street (Schedule A) funded by the Wastewater Rehabilitation Fund and $2,787,151 for the work at Pump Station 26 (Schedule B) funded by the South Placer Wastewater Authority. The requests for authorization for the City Manager or his designee to approve and pay for contract change orders for the project could increase the contract amount by no more than 5% for the work at Church Street (Schedule A) in the amount of $213,900, and by no more than 5% for the work at Pump Station 26 (Schedule B) in the amount of $139,358 for a total not-to-exceed change order amount of $353,258 and a total, not-to-exceed contract amount of $7,418,409.

ENVIRONMENTAL REVIEW
The proposed project involves minor alteration in the condition of the land, water, and or vegetation which will not remove healthy, mature scenic trees. This activity is categorically exempt from CEQA as a Class 4 Exemption (State CEQA Guidelines Section 15304). The Exemption has been prepared and no further CEQA action is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F – Invest in well-planned infrastructure and growth.

Respectfully Submitted,
William "Bill" Montz, Assistant Engineer
Richard Plecker, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-272
Agreement_Mountain Cascade
Bid Summary Sheet
CEQA
RESOLUTION NO. 24-272

APPROVING AN AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND MOUNTAIN CASCADE, INC., AND AUTHORIZING THE CITY MANAGER TO

EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, an Agreement for the Church Street and Pump Station 26 Collection System Improvements project, by and between the City of Roseville and Mountain Cascade, Inc., has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to approve change orders for the project, consistent with the contract terms, provided that the net cost of all change orders shall not exceed five percent (5%) of the contract price.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

Devin Whittington on behalf of Richard Plecker

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office Development Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: Church Street and Pump Station 26 Collection System Improvements Project

Project Location(s): Sierra College Boulevard between Eureka Road and south of East Roseville Parkway, Roseville, CA 95747 and Church Street between Birch Street and Atkinson Street , Atkinson Street between Elm Stret and Hickory Street, and Hickory Street between Atkinson Street and Porter Drive, Roseville, CA 95661

Project Description: The Environmental Utilities Department (EU) is making upgrades to critical wastewater collections infrastructure at two locations: within Church Street, Atkinson Street, and Hickory Street (Church Street Collection System Improvements) and another site within Sierra College Boulevard, referred to as Pump 26 (PS 26). These improvements are needed to prevent future sanitary sewer overflows during storm events resulting in a violation of Wastewater Collection’s Waste Discharge Permit. The selected fix for this issue includes upsizing of multiple sewer gravity mains via pipe bursting, open cut installation of a new sewer gravity main, and abandonment of an existing gravity sewer main for the Church Street Collection System Improvements.

The PS 26 improvements were initially approved as a separate project in 2022, but the City decided to separate out the pipeline work, which has not yet been awarded. EU staff decided to combine the remaining PS 26 work, involving gravity sewer main pipe bursting, areas of open- cut pipe installation, and installation of a new weir manhole, with the Church S treet Collection System Improvements due to the similar nature of the work required. These trenchless methods will result in significant cost savings and a minimization of traffic disruptions, and the larger project size when combined with the Church Street Collection System Improvements creates a more attractive bid package. Both project located are entirely paved, and there are no sensitive habitats on the sites or immediately adjacent.

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project: City of Roseville Environmental Utilities Department

Reason why this Project is Exempt: The project qualifies for a Class 4 Categorical Exemption as described in Section 15304 of the California Environmental Quality Act (CEQA) guidelines which states:

“Class 4 (Minor Alterations to Land) consists of…minor public…alterations which do not involve the removal of healthy, mature, scenic trees…”

The project consists of improvements to pipelines and installation of new manholes located entirely within existing streets using primarily trenchless pipe bursting methods, with only select areas of open cut trenching. Both project areas are entirely within existing paved streets and are not located in or within the vicinity of sensitive areas and would not result in removal of a mature scenic tree(s).

Consequently the Class 4 Categorical Exemption applies.

Lead Agency Contact Person: Rana Moore, Roseville Department of Environmental Utilities (916- 774-5581).

Signature: Date: 4-22-2024
Jessica Lynch, Environmental Coordinator
City of Roseville

COUNCIL COMMUNICATION
CC #:
3466
File #:
0203-09
Title:

On-Call Construction Fencing Services – Contract Purchase Agreements Contact:

William Montz 916-938-0154 [email protected]

Meeting Date: 8/7/2024
Item #: 6.3.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt resolutions authorizing the City Manager to execute Contract Purchase Agreements for On-Call Construction Fencing Services with Arrow Fence Company and Crusader Fence Company.

Additionally, staff requests authority for the City Manager or his designee to execute three (3) additional one (1) year renewals without further City Council approval, provided the applicable budget is approved by the City Council each year, or until City staff determines that continuing with any of the above-mentioned vendors is not in the City’s best interest.

BACKGROUND
The City of Roseville Environmental Utilities Department (EU) owns and operates the Dry Creek Wastewater Treatment Plant (DCWWTP), Pleasant Grove Wastewater Treatment Plant (PGWWTP), Barton Road Water Treatment Plant (BRWTP), a distribution system for water, a collection system for wastewater, and a recycled water system.

From time to time, EU has new or existing sites which require security fencing upgrades that need to be completed in a relatively short period of time. These security upgrades may be funded from the Environmental Utilities’ Rehabilitation Program, Operating Budget, or Capital Improvement Program and must be completed due to operational or maintenance needs.

On May 15, 2024, a Request for Proposal #08-137 was released, soliciting On-Call Construction Fencing Services looking for contractors that:
• Have the ability to respond quickly to the City needs. • Are efficient in developing and delivering the desired scope of work. • Can provide services at a reasonable overall cost to the City.

Two (2) firms submitted proposals to the City Clerk’s office for review and consideration. Based upon review of the proposals by the EU Proposal Evaluation Committee, the proposals of Arrow Fence Company and Crusader Fence Company were both identified as providing high value to the City using the evaluation criteria outlined in the RFP.

FISCAL IMPACT
The not-to-exceed cost for the services for each agreement is $350,000 per year. The not-to- exceed cost for the two (2) agreements is $700,000 per year, for up to four years. There is no guaranteed minimum amount of work provided in the contracts, and payment will only be made for work completed. These projects may be funded from the Environmental Utilities’ Rehabilitation Programs, Operating Budgets, and/or Capital Improvement Programs. There will be no fiscal impact on the General Fund.

ENVIRONMENTAL REVIEW
The proposed project involves the operation, repair, and maintenance of an existing facility. This activity is categorically exempt from CEQA as a Class 1 Exemption (State CEQA Guidelines Section 15301). The Exemption has been prepared and no further CEQA action is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
William Montz, Assistant Engineer
Richard Plecker, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-275
CPA Arrow Fence Company
Resolution 24-276
CPA Crusader Fence Company
CEQA
RESOLUTION NO. 24-275

APPROVING A CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND ARROW CREATIVE SOLUTIONS, INC. DBA ARROW FENCE,

AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT

ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a contract purchase agreement (3003937) to provide on-call construction fencing services, by and between the City of Roseville and Arrow Creative Solutions, Inc. dba Arrow Fence, has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

BE IT FURTHER RESOLVED, that the City Manager or his or her designee is authorized to execute three (3) additional one (1) year renewals without further City Council approval, provided that the applicable budget is approved by the City Council, or until staff determines that continuing with this consultant is not in the best interest of the City.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20 , by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

RESOLUTION NO. 24-276

APPROVING A CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY

OF ROSEVILLE AND CRUSADER FENCE COMPANY, LLC, AND AUTHORIZING THE

CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a contract purchase agreement (3003939) to provide on-call construction fencing services, by and between the City of Roseville and Crusader Fence Company, LLC, has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20 , by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

00842602
1056652
1000449929
x

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office Development Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: Environmental Utilities On- Call Engineering Services (RFP # 08- 137) – Award of On-Call Construction Fencing Services Agreements

Project Location(s): Dry Creek Wastewater Treatment Plant (WWTP), 1800 Booth Road, Roseville, CA 95747 (APN 473-040-033-000), Pleasant Grove WWTP, 5051 Westpark Drive, Roseville, 95747 ( APN 017-101-025-000), and Barton Road Water Treatment Plan (WTP), 9595 Barton Road, Granite Bay, CA 95746 (APN 050-070-073-000)

Project Description: The Environmental Utilities Department recommends the approval of two on-call construction fencing service agreements with two consultants: Arrow Fence Company and Crusader Fence Company. The agreements would be used to provide security fences at City facilities on an as -needed basis for operational or maintenance needs. Approval of the ser vice agreements would not result in an expansion of use.

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project: City of Roseville Environmental Utilities Department

Reason why this Project is Exempt: The project qualifies for a Class 1 Categorical Exemption as described in Section 15301 of the California Environmental Quality Act (CEQA) guidelines which states:

“Class 1 (Existing Facilities) consists of the operation, repair, [and] maintenance… of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use.

The project consists of a two service agreements to provide security fencing at the Dry Creek and Pleasant Grove WWTPs and the Barton Road WTP for operations and maintenance as needed.

The project would not result in expansion of use. Consequently , the Class 1 Categorical Exemption applies.

Lead Agency Contact Person : William “Bill” Montz, Roseville Department of Environmental Utilities (916-938-0154).

Signature: Date: 6/19/2024
Jessica Lynch, Environmental Coordinator
City of Roseville

COUNCIL COMMUNICATION
CC #:
3475
File #:
0203-09
Title:

West Zone Reclaimed Water Tanks Rehabilitation Project - Award of Construction Agreement and Budget Adjustment
Contact:

Inderpreet K Chaggar 916-774-5553 [email protected]

Meeting Date: 8/7/2024
Item #: 6.4.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council:

1. Approve the Construction Agreement with Euro Style Management for the Project in the amount of $972,676 and adopt a resolution authorizing the City Manager to execute it on behalf of the City.

2. Authorize the City Manager or his designee to approve and pay for contract change orders for this project that could increase the contract amount by no more than 10 percent ($97,268) or a not- to-exceed total contract amount of $1,069,944.

3. Adopt
an ordinance to approve a budget adjustment of $879,304 from available resources in the Wastewater Rehabilitation Fund to fully fund this project.

BACKGROUND
In 2023, the City’s Environmental Utilities Department (EU) retained engineering design professionals to complete a condition assessment of the West Zone Reclaimed Water Tanks 1 and 2. Water Works Engineers (WWE) and V&A Consulting Engineers completed the condition assessment. Tanks 1 and 2 were constructed in 2006 and each tank is a 74-foot diameter by 32- foot tall, welded steel water tank with approximately 1-million-gallon capacity. The condition assessment found that structural components of the tanks including the center support column and the roof rafters are significantly corroded and require structural rehabilitation and/or replacement.

The interior coating has also failed. In 2023, EU retained WWE to complete the rehabilitation design (construction plans and specifications) for Tanks 1 and 2.

On April 3, 2024, City Council authorized to advertise rehabilitation plans and specifications for the reclaimed water tanks. On May 20, 2024, the City received three (3) bids for the subject project with Euro Style management being the apparent low bidder. EU staff reviewed the proposal and recommends the contract be awarded to Euro Style Management.

FISCAL IMPACT
The total costs of the project include: Construction Agreement with Euro Style Management for $972,676, contingency for potential change orders not to exceed $97,268, the On-Call Engineering Services Agreement with WWE for Engineering Services During Construction for $72,001, the On-Call Construction Management Agreement with WWE for $130,365, and an additional $106,994 for secondary labor of City staff working on this project. The initial project budget was $500,000. The recommended budget adjustment of $879,304 will increase the budget to $1,379,304 and fully fund the project from available resources in the Wastewater Rehabilitation Fund.

ENVIRONMENTAL REVIEW
The proposed project involves the repair of an existing facility. This activity is categorically exempt from CEQA as a Class 1 Exemption (State CEQA Guidelines Section 15301). The Exemption has been prepared and no further CEQA action is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Inderpreet Chaggar, Senior Engineer
Richard Plecker, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-283
Agreement_Euro Style Management
Ordinance 6848
Bid Summary Sheet
CEQA Exemption

RESOLUTION NO. 24-283

APPROVING AN AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND

EURO STYLE MANAGEMENT, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, an Agreement for the West Zone Reclaimed Water Tanks Rehabilitation project, by and between the City of Roseville and Euro Style Management, has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

ORDINANCE NO. 6848

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1 . The City of Roseville Annual Budget, Fiscal Year 2024 -25, is hereby amended as listed on the attached budget adjustment for the West Zone Reclaimed Water Tanks Rehabilitation project.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.

PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

EXPENDITURES/EXPENSES/TRANSFERS OUT

REQUEST FOR BUDGET ADJUSTMENT
Updated 5/24/2024
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment 6230 6587 84001 500344 822,310 Increase capital outlay budget for project # 500344 6230 5080 84001 500344 56,994 Increase internal project labor

EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 879,304

REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

REVENUES/TRANSFERS IN TOTAL -

NET ADJUSTMENT 879,304

FUND BALANCE
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment 6230 3601 00000 000000 (879,304) Reduce available resources in the Wastewater Rehabilitation Fund
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL (879,304)

Justification for Budget Adjustment:

The West Zone Recycled Water Tank Rehabilitation (# 500344) project was established to design and perform the rehabilitation of the two West Zone recycled water tanks. During the tank assessment we found that structural modifications were needed on these tanks which requires an increase from the originally planned cost. This project requires an additional $879,304 to fully fund for the award of the construction contract. The total project budget is available from resources in the Wastewater Rehabilitation Fund and will fully fund this phase of the project. This request will bring the project's total lifetime budget to $1,379,304.

REQUESTER NAME & TITLE: Inderpreet Chaggar FISCAL YEAR: 2024-25 PREPARER NAME & TITLE: Archana Wagley, Sr. EU Business Analyst COUNCIL DATE (if applicable): 08/07/24 DEPARTMENT/DIVISION: EUD Wastewater Utility ORDINANCE:

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office Development Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: West Zone Reclaimed Water Tanks 1 and 2 Rehabilitation

Project Location(s): 5118 Phillip Road, Roseville, CA 95747. Assessor’s Parcel Number 017- 101-025-000.

Project Description : The Environmental Utilities Department (EU) recommends City Council authorize for bid a project to rehabilitate the West Zone Reclaimed Water Tanks 1 and 2 located at 5118 Phillip Road located just east of the Roseville Energy Park (REP) and north of the Pleasant Grove Wastewater Treatment Plant (PGWWTP). The tanks were built in 2006 , and in 2023, EU had a consultant prepare a condition assessment, which recommended structural rehabilitation including replacement of some structural components a nd recoating within the inside of both tanks. The proposed rehabilitation would not result in any changes to the facilities’ size, location, or capacity . The entire project site i s paved, and there are no sensitive habi tats on the site or immediately adjacent.

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project: City of Roseville Environmental Utilities Department

Reason why this Project is Exempt: The project qualifies for a Class 1 Categorical Exemption as described in Section 15301 of t he California Environmental Quality Act (CEQA) guidelines which states:

“Class 1 (Existing Facilities) consists of the… repair… of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. Examples include but are not limited to: (b) Existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services; [and] (d) Restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety.”

The project consists of the replacement of some structural component s and recoating within the inside of two existing reclaimed water tanks located adjacent to two other major utility sites, the REP and PGWWTP. The project would not result in increased capacity or unplanned expansion of use. Consequently, the Class 1 Categorical Exemption applies.

Lead Agency Contact Person : Inderpreet K Chaggar, Roseville Department of Environmental Utilities (916-774-5553).

Signature: Date: 1-22-2024
Jessica Lynch, Environmental Coordinator
City of Roseville

COUNCIL COMMUNICATION
CC #:
3476
File #:
0203-07
Title:
60kV Circuit Breaker Replacement Project - Capital Improvement Project Approval, Sole Source Purchase Order and Budget Adjustment
Contact:

Vincent Bottoni 916-774-5641 [email protected]

Meeting Date: 8/7/2024
Item #: 6.5.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council authorize the establishment of a new Capital Improvement Project – the 60kV Circuit Breaker Replacement Project (the "Project"), approve a purchase order for a 60kV circuit breaker at the Pleasant Grove One substation, and adopt an ordinance to approve a budget adjustment appropriating $395,000 in the Electric Fund to the Project for purchasing a 60kV circuit breaker.

BACKGROUND
A circuit breaker at the Pleasant Grove One (PG1) substation is nearing the end of its operating life and is due for replacement. This substation serves a large commercial customer. The customer is currently undertaking major facility upgrades and the Electric Department is using this opportunity to schedule an outage and replace a critical 60kV circuit breaker while they perform their facility work. A Siemens SPS2 circuit breaker that is not currently being used at the Sierra Vista substation will be moved to the PG1 substation to facilitate this work during this window of opportunity. Additionally, a new, identical, Siemens SPS2 circuit breaker will be obtained with a sole source purchase order to replace the circuit breaker that is being used from the Sierra Vista substation.

A sole source is necessary for two reasons: the City has standardized its 60kV circuit breaker fleet (over 60 currently installed) on this circuit breaker to facilitate maintenance, training and spare parts, and Roseville Electric needs to replace the circuit breaker at the Sierra Vista substation with an identical model as the foundation and wiring has been designed specifically for the Siemens SPS2 circuit breaker. This approach will allow staff to complete the work during this important window without being adversely impacted from the long lead times (approximately 80 weeks) associated with ordering the circuit breaker. Funds in the 60kV Circuit Breaker Replacement Project will be utilized for the circuit breaker work at both the Pleasant Grove One and Sierra Vista substations.

FISCAL IMPACT
Council approval of the ordinance will result in a budget adjustment to establish the FY2024-25 budget authority for the 60kv Circuit Breaker Replacement Project of $395,000 with a corresponding decrease in available resources in the Electric Fund.

ENVIRONMENTAL REVIEW
The proposed project involves the replacement of existing structures and facilities. This activity is categorically exempt from CEQA as a Class 2 Exemption (State CEQA Guidelines Section 15302). The Exemption has been prepared and no further CEQA action is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Vincent Bottoni, Power Engineer
Dan Beans, Electric Utility Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6849
CEQA Exemption
ORDINANCE NO. 6849

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2024-25, is hereby amended as listed on the attached budget adjustment for the 60kV Circuit Breaker Replacement project.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

PASSED AND ADOPTED by the Council of the City of Roseville, this ______________ day of _________________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:
_______________________________
MAYOR
ATTEST:
__________________________
City Clerk
REQUESTER NAME & TITLE: Vince Bottoni, Power Engineer FISCAL YEAR: 2024-25 PREPARER NAME & TITLE: Matt Nelson, Sr Electric Business Analyst COUNCIL DATE (if applicable): 08/07/24 DEPARTMENT/DIVISION: Electric / Engineering ORDINANCE:

EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
6001 6587 84701 500530 105,000
6001 5080 84701 500530 290,000
395,000

REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
-
395,000

FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
6001 3601 00000 000000 (395,000)
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
(395,000)
Justification for Budget Adjustment:

Establish and increase budget for 60kV Breaker
Replacement CIP (equipment costs)

REVENUES/TRANSFERS IN TOTAL
Establish and increase budget for 60kV Breaker
Replacement CIP (labor costs)

EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL

DESCRIPTION
Staff recommends that Council authorize the establishment of a new Capital Improvement Project – the Electric - 60kV Circuit Breaker Replacement Project (the "Project"), and adopt an ordinance to approve a budget adjustment appropriating $395,000 in the Electric Fund to the Project for replacing circuit breakers at substations.

One 60kV circuit braker needs immediate replacement in order to perform protection upgrades at Pleasant Grove Number One (PG1) substation. This circuit breaker is also nearing the end of its functional life. A circuit breaker from Sierra Vista substation will be moved to PG1 substation for this replacement. Additionally, a new circuit breaker will be ordered to replace the breaker taken from Sierra Vista substation. The requested budget adjustment for the 60 kV Circuit Breaker Replacement Project will be utilized for the circuit breaker replacement work at both PG1 and Sierra Vista Substations.

FUND BALANCE TOTAL

REQUEST FOR BUDGET ADJUSTMENT
Updated 5/24/2024

ACCOUNT STRING DESCRIPTION
Decrease Electric Fund available resources

NET ADJUSTMENT

ACCOUNT STRING DESCRIPTION

ACCOUNT STRING

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office D evelopment Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: 60 kV Circuit Breaker Replacement Project

Project Location(s): 1550 Westbrook Boulevard, Roseville, CA 95747 (APN 499-010- 063-000) and 7501 Foothills Boulevard, Roseville, CA 95747 (APN 017-232-001-000)

Project Description: Roseville Electric is proposing to replace two 60 kV circuit breakers at the Sierra Vista Substation and the PG1 Substation. In order to perform protection upgrades at PG1 substation, one 60 kV circuit breaker requires replacement because it is nearing the end of its functional life. The project would move an existing circuit breaker from the Sierra Vista Substation to the PG1 Substation so that replacement can take place as soon as possible. The project includes the purchase of a new 60 kV circuit breaker to replace the circuit breaker that would be moved to PG1.

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project: Roseville Electric

Reason why this Project is Exempt: This project qualifies for a Class 2 Exemption as described in Section 15302 of the California Environmental Quality Act (CEQA) guidelines which states:

"Class 2 consists of the replacement or reconstruction of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that previously existing, including but not limited to: (b) existing facilities of both investor and publicly -owned utilities used to provide electric power. ... or other public utility services."

The proposed project involves replacement of two 60kV circuit breakers at two existing substations. No sensitive environmental resources would be disturbed. For this reason, the Class 2 exemption is applicable to the proposed project.

Lead Agency Contact Person: Vince Bottoni, Roseville Electric - Engineering, 2090 Hilltop Circle, Roseville, CA 95747, (916) 768-2086

Signature: Date: 04/23/2024
Jessica Lynch, Environmental Coordinator
City of Roseville

COUNCIL COMMUNICATION
CC #:
3464
File #:
0203-13
Title:

Fire System Services - Contract Purchase Agreement Amendment Contact:

Darci Carpenter 916-774-5702 [email protected]

Meeting Date: 8/7/2024
Item #: 6.6.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution to approve Amendment #1 to Contract Purchase Agreement 3003134 with Sierra Building Systems, Inc. a Low Voltage Integrator, and authorize the City Manager to execute it on behalf of the City of Roseville.

BACKGROUND
Sierra Building Systems, Inc. manages inspection, testing, maintenance, and repairs for fire protection, sprinkler systems, and building intrusion alarms systems in City facilities. This final contract period marks the only rate increase by Sierra Building Systems throughout the original and subsequent renewal periods of the 5-year agreement with the City of Roseville. The original Council Communication for this contract agreement did not include provisions for annual incremental increases, coinciding with the recent rate increase. Therefore, the requested spending increase is essential to maintaining necessary expenditures under the existing agreement for the remainder of the contract period, supporting ongoing fire systems compliance, maintenance, and the replacement of the intrusion alarm panel at Martha Riley Library.

FISCAL IMPACT
The amendment will increase the contract value by $40,000, from $80,000 to $120,000. Funding for this amendment is included in the FY2024-25 budget in the Facility Services and Facility Rehabilitation Funds.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15061(c)(3) and §15378. A service agreement for fire system services meets the above criteria and is not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal E - Deliver exceptional city services

Respectfully Submitted,
Darci Carpenter, Administrative Technician
Jason Shykowski, Public Works Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-273
CPA 3003134 Amendment 1 - Sierra Bldg Sys
RESOLUTION NO. 24-273

APPROVING AMENDMENT #1 TO CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND SIERRA BUILDING SYSTEMS, INC. A LOW

VOLTAGE INTEGRATOR, AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT

ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, Amendment #1 to Contract Purchase Agreement (3003134) to provide fire system inspection, testing, maintenance and repair services, by and between the City of Roseville and Sierra Building Systems, Inc. a Low Voltage Integrator, has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Amendment is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20 , by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

COUNCIL COMMUNICATION
CC #:
3465
File #:
0203-04
Title:

Martha Riley Library Data Center Heating, Ventilation, and Air Conditioning Replacement (RFQ 10-3386) – Contract Purchase Agreement Contact:

Tiffany Valdez 916-746-1109 [email protected]

Meeting Date: 8/7/2024
Item #: 6.7.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution to approve a Contract Purchase Agreement (3003971) with Mesa Energy Systems, Inc. dba Emcor Services Mesa Energy as the lowest responsive and responsible bidder for Request for Quotation No. 10-3386, Martha Riley Library Data Center Heating, Ventilation, and Air Conditioning Replacement, and authorize the City Manager to execute it on behalf of the City of Roseville. Staff also requests City Council approval for change order authority for a 10% construction contingency.

BACKGROUND
The City maintains several critical facilities that support essential services and help to achieve City Council goals. These facilities house vital equipment and require proper environmental controls to function effectively. The designated facility needs climate control improvements to ensure continued reliability and meet the City's disaster and business recovery needs.

Riley’s current
Heating, Ventilation, and Air Conditioning system is over 15 years old and does not have an enterprise-grade humidity control system. The Public Works and IT Departments collaborated to assess Riley’s current status and define requirements to publish a Request for Quotations.

A formal bid was issued with the following vendor responses:

Bidder

Lump Sum Total

Mesa Energy Systems, Inc. dba Emcor Services Mesa Energy

$585,447
West Sacramento, CA
Air Systems Service & Construction

$506,000
Sacramento, CA
RBH Construction, Inc.

$598,026
Folsom, CA
The apparent lowest bidder was deemed non-responsive because their bid submission was missing nine of the 11 required documents that were listed in the bid packet.

FISCAL IMPACT
The cost of the Agreement is $585,447. Authorized change orders on an as-needed basis up to 10% ($58,544.70) as a construction contingency, would bring the total contract amount to $643,991.70. The
FY2021-22 Riley Library - Facilities Rehabilitation Project is funded primarily
by the Facility Rehabilitation Fund, which receives its funding from the General Fund. Other funding sources include the Water Rehabilitation Fund, Wastewater Rehabilitation Fund, Solid Waste Rehabilitation Fund, and the Electric Fund.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Tiffany Valdez, Buyer
Dennis Kauffman, Assistant City Manager/Chief Financial Officer

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-274
CPA 3003971
CEQA Exemption
RESOLUTION NO. 24-274

APPROVING A CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND MESA ENERGY SYSTEMS, INC. DBA EMCOR SERVICES MESA

ENERGY AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT

ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a contract purchase agreement (3003971) for the Martha Riley Library Data Center Heating, Ventilation, and Air Conditioning Replacement, by and between the City of Roseville and Mesa Energy Systems, Inc. dba Emcor Services Mesa Energy, has been reviewed by the City Council.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said contract purchase agreement is approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to approve change orders, consistent with the contract terms, provided that the net cost of all change orders shall not exceed ten percent (10%) of the contract amount.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office Development Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: Martha Riley Library Data Center HVAC Replacement – Contract Purchase Agreement

Project Location(s): 1501 Pleasant Grove Boulevard Roseville, California 95747

Project Description: This project would approve the authorization of a contract purchase agreement and replacement of the existing outdated Heating, Ventilation, and Air Conditioning (HVAC) equipment located at the Martha Riley Library Data Center. The City has 3 data centers providing core technical infrastructure. Data centers are dependent upon consistent power and proper cooling with effective humification control. Without proper cooling and humidity controls, the data center will become unreliable and not suitable for the City’s Disaster Recovery Plan. The data center’s current HVAC system is over 15 years old and does not have an enterprise- grade humidity control system, and as a result must be replaced to ensure its continued operation. The new HVAC system will not result in any expansion of use.

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project: City of Roseville Public Works Department

Reason why this Project is Exempt: This project qualifies for a Class 1 E xemption as described in Section 15301 of the California Environmental Quality Act (CEQA) guidelines which states:

“Class 1 consists of the…repair…of existing publi c…structures, facilities, [or] mechanical equipment…involving negligible or no expansion of existing or former use…. Examples include but are not limited to: (a) Interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances…”

The project is confined to within the existing Martha Riley Library and would not result in expansion of use. No environmentally sensitive resources are located within or adjacent to the property; therefore the Class 1 exemption is applicable to the proposed project.

Lead Agency Contact Person: Tiffany Valdez, Finance Department - Purchasing, 311 Vernon Street, Roseville, CA 95678. (916) 746-1109.

Signature: Date: 7/15/2024
Jessica Lynch, Environmental Coordinator, City of
Roseville

COUNCIL COMMUNICATION
CC #:
3467
File #:
0800-03
Title:

Power Transaction - Enabling Agreement
Contact:

Glenn Hoffman 916-746-1670 [email protected]

Meeting Date: 8/7/2024
Item #: 6.8.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the attached Agreement to Enable Future Purchases, Sales and Exchanges of Power and Other Services (Enabling Agreement) with Bonneville Power Administration (BPA) for wholesale power transactions.

BACKGROUND
BPA is a federal Power Marketing Agency in the Pacific Northwest that often has excess power available for sale. BPA requires a specific enabling agreement with counterparties to comply with certain federal requirements including resale provisions. An enabling agreement is a form of contract that enables power transactions by agreeing to the common provisions such as payment timelines and default provisions while leaving the changing provisions such as price and timing for power to be negotiated when a transaction is consummated. The attached agreement replaces an existing agreement that expires on August 5, 2024.

FISCAL IMPACT
There is no fiscal impact associated with the execution of the agreement.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The Enabling Agreement meets the above criteria and is not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A – Remain fiscally responsible in a changing world.

Respectfully Submitted,
Glenn Hoffman, Electric Resources Planner
Daniel Beans, Electric Utility Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-277
BPA Enabling Agreement
RESOLUTION NO. 24-277

APPROVING AN AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE

AND UNITED STATES OF AMERICA, DEPARTMENT OF ENERGY ACTING BY

AND THROUGH THE BONNEVILLE POWER ADMINISTRATION, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF

THE CITY OF ROSEVILLE

WHEREAS, an Agreement to Enable Future Purchases, Sales and Exchanges of Power and Other Services (Contract No. 24PM-16705), between the City of Roseville and the United States of America, Department of Energy, acting by and through the Bonneville Power Administration, has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20__, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

Contract No. 24PM-16705

AGREEMENT TO ENABLE

FUTURE PURCHASES, SALES AND EXCHANGES

OF POWER AND OTHER SERVICES
executed by the

BONNEVILLE POWER ADMINISTRATION
and

CITY OF ROSEVILLE

Table of Contents
Section
Page

1. Term of Agreement ............................................................................................. 2

2. Underlying Provisions ....................................................................................... 2

3. Definitions ............................................................................................................ 2

4. Revision of Exhibits; Interpretation ............................................................... 3

5. Resale Provisions ................................................................................................ 3

6. Power Scheduling Provisions .......................................................................... 4

7. Netting ................................................................................................................... 4

8. Termination Provisions ..................................................................................... 4

9. Applicable Law .................................................................................................... 4

10. Notices and Contact Information .................................................................... 5

11. Entire Agreement ................................................................................................ 5

12. Dispute Resolution ............................................................................................. 5

13. Signatures ............................................................................................................. 6

Exhibit A BPA’s Wholesale Power Ra te Schedules and General Rate Schedule Provisions
Exhibit B BPA Power Services Scheduling Provisions
Exhibit C WSPP Agreement

This AGREEMENT TO ENABLE FUTURE PURCHASES, SALES AND
EXCHANGES OF POWER AND OTHER SERVICES (Agreement), is executed by the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE POWER ADMINISTRATION (BPA), and CITY OF ROSEVILLE (Customer), a(n) a Municipality organized under the laws of the State of California.. BPA and Customer are sometimes referred to individually as “Party” and collectively as “Parties.”

24PM-16705, City of Roseville 2

RECITALS

The Parties wish to provide a contractual mechanism for future purchases, sales and exchanges of Power (firm and nonfirm) and other products and services which the Parties may agree from time to time to make available as specified below.

This Agreement is not a present purchase, sale or exchange of such Power, or other products and services, and does not constitute any advance agreement or obligation for any Party to make available or to purchase or exchange any amount of such Power or other products and services.

BPA is authorized pursuant to law to mark et electric power and energy generated at various Federal hydroelectric projects in the Pacific Northwest or acquired from other resources, to construct and operate transmission facilities, to provide transmission and other services, and to enter into agreements to carry out such authority.

The Parties agree as follows:

1. TERM OF AGREEMENT
This Agreement shall become effective at 2400 hours on the date of execution (Effective Date), and shall terminate three years from the Effective Date, unless terminated earlier in accordance with the termination provisions specified in Section 8. All obligations and liabilities accrued hereunder are preserved until satisfied. Execution of this Agreement shall terminate any prior ‘Agreement to Enable Future Purchases, Sales, or Exchanges of Power and Other Services’ between the Parties.

The Parties agree that the pre-existing agreement 21PM-16452 shall terminate on the Effective Date of this Agreement.

2. UNDERLYING PROVISIONS
Unless otherwise specified in this Agreement, all provisions required to perform either Party’s obligations under this Agreement shall be as described in the WSPP Agreement, attached hereto as Exhibit C. Customer has read such terms of the current WSPP agreement and agrees to the incorporation of the terms referenced in this Agreement, and agrees to review any modification or amendments to the WSPP Agreement as shown on the WSPP website, www.wspp.org.

The provisions of the
WSPP agreement pertaining to WSPP membership requirements or WSPP administrative matters are not incorporated into this Agreement.

3. DEFINITIONS
Capitalized terms in this Agreement shall have the meanings defined below.

(a) “Excess Federal Power” means ex cess Federal power as defined in Section 508 of Public Law 104-46.

(b) “Confirmation Agreement” means an agreement, consistent with Section 32 of the WSPP Agreement, confirming a transaction for the purchase and sale of products and services under the WSPP Agreement.

24PM-16705, City of Roseville 3

(c) “Power” means Excess Federal Power or firm or nonfirm Surplus Power (or both) made available by BPA, and firm or nonfirm capacity or energy or both made available by Customer.

(d) “Surplus Power” means surplus peakin g capacity, or surplus energy or both, as defined in Sections 5(f) and 9(c) of Public Law 96-501, and Sections 1(c) and 1(d) of Public Law 88-552.

4. REVISION OF EXHIBITS; INTERPRETATION

(a) Revision of Exhibit A
The Wholesale Power Rate Schedules and General Rate Schedule Provisions included in Exhibit A shall be replaced by successor Wholesale Power Rate Schedules and General Rate Schedule Provisions established in accordance with the provisions of Section 7(i) of the Northwest Power Act and Federal Energy Regulatory Commission rules and is available on BPA’s Website.

(b) Revision of Exhibit B
BPA shall revise and replace Exhibit B in accordance with the provisions contained in Exhibit B.

(c) Revision of Exhibit C
Exhibit C shall include all future WSPP amendments and revisions, unless a Party notifies the other Party in writing that all or a portion of an amendment or revision is unacceptable within 30 days of its effective date. If either Party finds such future amendments and revisions unacceptable, then such amendments or revisions shall not be included in Exhibit C of this Agreement.

(d) Interpretation
In the event of a conflict between the terms of any Exhibit and the terms of the body of this Agreement, the terms of the body of this Agreement shall prevail.

5. RESALE PROVISIONS

(a) Resale by Customer of Surplus Power sold by BPA under this Agreement shall, to the extent required by law, comply with the requirements of Section 5(a) of the Bonneville Project Act, as amended (16 U.S.C.

Section 832). This provision shall not apply to sales of Excess Federal Power.

BPA will identify in each Confirmation Agreement that the Power it sells to the Customer is either: (1) Surplus Power; or (2) Excess Federal Power.

(b) Customer may purchase any Surplus Power under this Agreement only pursuant to Section 5(a) of this Agreement. In the event that BPA discovers that Customer violated this Section 5 in the course of its performance pursuant to a Confirmation Agreement, such Confirmation Agreement shall

24PM-16705, City of Roseville 4

be immediately terminated; provided, however, any and all liabilities incurred prior to such termination shall remain until satisfied.

6. POWER SCHEDULING PROVISIONS
All power transactions under this Agreement shall be scheduled and implemented in accordance with the Scheduling Provisions in Exhibit B.

7. NETTING
Payment amounts under this Agreement shall be netted in accordance with the Parties’ Netting Agreement (BPA Contract No. 06PB-11760).

8. TERMINATION PROVISIONS
Each Party shall have the right to terminate this Agreement upon 30 calendar days’ written notice to the other Party; provided, however, that if any Confirmation Agreement between the Parties remains in effect after the termination date of this Agreement and incorporates by reference, individually or generally, provisions of this Agreement, such provisions shall survive the termination of this Agreement and be binding on the Parties until after the termination of the last such agreement.

9. APPLICABLE LAW
All transactions under this Agreement shall be subject to Federal law governing the sale, exchange, or other disposition of Power and other services, including but not limited to, Public Law 75-329 (the Bonneville Project Act, as amended, 16 U.S.C. 832 et seq.), Public Law 88-552 (the Pacific Northwest Preference Act of August 31, 1964, as amended, 16 U.S.C. 837 et seq.), Public Law 93-454 (the Federal Columbia River Transmission System Act, as amended, 16 U.S.C. 838(a) et seq.), Public Law 96-501 (Pacific Northwest Electric Power Planning and Conservation Act, 16 U.S.C. 839 et seq.), and Section 508 of Public Law 104-46 (codified at 16 U.S.C.A. 832m (West Cum. Ann. Pock. Pt. 1996)).

All sales of Surplus Power for use outside the Pacific Northwest under this agreement are subject to the provisions of Public Law 88-552 and Section 9(c) of Public Law 96-501, and the Parties hereby acknowledge their respective responsibilities thereunder. Pursuant to Public Law 88-552, BPA shall have the right to curtail a portion of, or terminate all of: (a) the capacity associated with a surplus firm peaking capacity sale on 60 months’ written notice; or (b) the energy associated with a surplus energy sale on a 60-day written notice specifying the amounts and duration of the curtailment or termination, if such capacity and/or energy is needed to meet the capacity and/or energy requirements in the Pacific Northwest. Such curtailments to Customer shall be limited to the amounts and duration necessary to cover BPA’s projected Pacific Northwest needs. The sale of capacity and/or energy to Customer under this Agreement shall continue in months during which such capacity and/or energy is not needed, as determined by BPA, in the Pacific Northwest.

24PM-16705, City of Roseville 5

10. NOTICES AND CONTACT INFORMATION
Any notice required under this Agreement that requires such notice to be provided under the terms of this section shall be provided in writing to the other Party in one of the following ways:

(1) delivered in person;

(2) by a nationally recognized deliver y service with proof of receipt;

(3) by United States Certified Mail with return receipt requested;

(4) electronically, if both Parties have me ans to verify the electronic notice’s origin, date, time of transmittal and receipt; or

(5) by another method agreed to by the Parties.

Notices are effective when received. Either Party may change the name or address for delivery of notice by providing notice of such change or other mutually agreed method. The Parties shall deliver notices to the following person and address:

If to City of Roseville:

City of Roseville
2090 Hilltop Circle
Roseville, CA 95747
Attn: Daniel Beans
Electric Utility Director
Phone: 916-774-5603
FAX: 916-774-5583
E-Mail: [email protected]
If to BPA:

Bonneville Power Administration
905 NE 11
th Ave.

P.O. Box 3621
Portland, OR 97208-3621
Attn: Mark E. Miller
Account Executive
Phone: 503-230-4003
E-Mail: [email protected]

11. ENTIRE AGREEMENT
This Agreement, including documents expressly incorporated by reference, constitutes the entire agreement between the Parties. It supersedes all previous communications, representations, or contracts, either written or oral, which purport to describe or embody the subject matter of this Agreement.

12. DISPUTE RESOLUTION
Notwithstanding anything to the contrary in the WSPP Agreement, before initiating binding arbitration pursuant to Section 21.3(d), 22.3(e)(i), or 22.3(f) of the WSPP Agreement, or if the Parties elect to pursue binding arbitration of any other dispute, the Parties shall draft and sign an agreement which shall meet the requirements of the Administrative Disputes Resolution Act of 1996, 5 U.S.C. §§ 571-584, including the requirements to set forth the precise issue in dispute, the amount in controversy and the maximum monetary award allowed. Under no circumstances shall specific performance be an available remedy against BPA in arbitration.

24PM-16705, City of Roseville 6

13. SIGNATURES
This Agreement may be executed in several counterparts, all of which taken together will constitute one single agreement, and may be executed by electronic signature and delivered electronically. The Parties have executed this Agreement as of the last date indicated below.

CITY OF ROSEVILLE UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration

By By

Name Name Mark E. Miller
(Print/Type) (Print/Type)

Title Title Account Executive

Date Date

24PM-16705, City of Roseville
Exhibit A, BPA’s Wholesale Power Rate Schedules and General Rate Schedule Provision 1 of 1

EXHIBIT A
BPA’S WHOLESALE POWER RATE SCHEDULES AND GENERAL RATE

SCHEDULE PROVISIONS

BPA’s Wholesale Power Rate Schedules and General Rate Schedule Provisions are available on the BPA website, www.bpa.gov.

24PM-16705, City of Roseville
Exhibit B, BPA Power Services Scheduling Provisions
1 of 1

EXHIBIT B

BPA POWER SERVICES SCHEDULING PROVISIONS

1. PURPOSE
Unless otherwise specified, all transactions shall be scheduled in accordance with the WECC, North American Energy Standards Board (NAESB), and the North American Electric Reliability Council (NERC). The purpose of this exhibit is to identify power scheduling requirements and coordination procedures necessary for the delivery of electric power products bought or sold under this Agreement.

2. PRESCHEDULING REQUIREMENTS
Final hourly Schedules must be submitted by the Customer to BPA Power Services Preschedule for the next day(s) transactions by 1100 PT of each Preschedule Day, unless otherwise agreed. After 1100 PT Preschedules can be accepted if mutually agreed to by BPA Power Services Preschedule and the Customer, and the Preschedules are accepted by the transmission provider(s).

3. REVISIONS
BPA may unilaterally revise this Exhibit

(a) to implement changes that BPA determin es are necessary to allow it to meet its power and scheduling obligations under this Agreement, or

(b) to comply with requirements of WECC, NAESB, or NERC, or their successors or assigns.

BPA shall provide any written material revisions of this exhibit with a reasonable time for comment, prior to BPA providing written notice of the revision. Revisions are effective 2 days after BPA provides written notice of the revisions unless, in BPA’s sole judgment, less notice is necessary to comply with an emergency change to the requirements of WECC, NAESB, NERC, or their successors or assigns. In this case, BPA shall specify the effective date of such revisions.

24PM-16705, City of Roseville
Exhibit C, WSPP Agreement
1 of 1

EXHIBIT C

WSPP AGREEMENT

The current WSPP Agreement is available from the WSPP website, www.wspp.org.

COUNCIL COMMUNICATION
CC #:
3469
File #:
1002-06
Title:

Vista Oaks Subdivision Located in Rocklin - Summary Vacation of Public Utility Easement
Contact:

Marc Stout 916-774-5482 [email protected]

Meeting Date: 8/7/2024
Item #: 6.9.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution vacating the easement as described therein and authorize the City Manager to execute any documents, including a quitclaim deed, required to effectuate the conveyance of the vacated easement to the respective property owners if requested by their title company.

BACKGROUND
Staff was contacted by the developer who is in the process of acquiring property located in the City of Rocklin, CA just north of the City of Roseville. The property is known as Vista Oaks and includes collectively the area within APN's 046-020-003 and 046-010-007. The property's title is clouded by an old existing easement that dates back to the 1930's that was dedicated to the City of Roseville for a canal and reservoir. The easement is clouding title by not allowing the property to be developed because the canal and reservoir's exact location cannot be located by survey from the verbiage provided in the recorded easement deed. It has also been determined from reviewing old records kept at Placer County that the canal and reservoir were never located on this property. The developer has requested that the City vacate the easement so they can proceed with the development of the property. Vacating the easement will allow the title company to remove the easement of record from title releasing the property from its incumbrance. City staff has reviewed all the documentation related to this easement and determined that the easement is no longer required and serves no interest to the City.

Streets and Highways Code, Section 8300 et. seq., states that an easement may be terminated (vacated) by adopting a resolution of vacation. There are two pathways for vacation: summary or general. An abandonment request for a public utility easement, like this easement, is eligible for the simpler summary vacation method when any one of the three potential conditions applies:

1 .

The easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed abandonment. 2 .

The easement has been in place for less than five years, but has been in place for at least a year and has not been used for the purpose for which it was dedicated or acquired. 3 .

The need for the easement has been superseded by relocation, and there are no other public facilities in the easement.

Pursuant to the Streets and Highways Code, Section 9333 and 9335, and Chapter 4 relating thereto, staff concludes that condition 1 (as described above) for a summary vacation applies and recommends approval of the vacation request. The area within the City surrounding the property has since been developed, the canal and reservoir no longer exist, the canal and reservoir were never located on the subject property, and it's clear that the easement is no longer needed.

Therefore, staff concludes the condition of a summary vacation listed within Streets and Highways Code Section 8333 applies and recommends that the City vacate the easement.

FISCAL IMPACT
There is no fiscal impact to the City's General Fund associated with this approval.

ENVIRONMENTAL REVIEW
The proposed project involves minor alteration in land use limitations in areas with an average slope of less than 20%, which do not result in any changes in land use or density. This activity is categorically exempt from CEQA as a Class 5 Exemption (State CEQA Guidelines Section 15305). The Exemption has been prepared and no further CEQA action is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Marc Stout, City Engineer
Mike Isom, Development Services Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Vicinity Map
Resolution 24-278
Quitclaim Deed
CEQA Exemption
Vicinity Map
Vista Oaks
Diagram of Property
046-020-003-000
046-010-007-000
City of Rocklin
City of Roseville
.
0 0.2 0.1
Miles
US Interstate 80
SU
NSET

FIVESTAR
WH
ITNEY
SIE
RRA
COLLEG
E

ROSEVILLE SECR

ET RAVINEGALLERIA
LEAD
HILL
Vicinity Map
Property line follows the
centerl
ine of the creek.

The easement being
abandoned (BK 75 of
deeds PG 616) ma
y or
may not exist on this
property.

RESOLUTION NO. 24-278

ORDERING SUMMARY VACATION OF A PUBLIC UTILITY EASEMENT

BE IT RESOLVED by the City Council of the City of Roseville as follows:

WHEREAS, in accordance with the provisions of section 8333, et seq., of the Streets and Highways Code (Chapter 4, Summary Vacation), it is hereby found that an easement just north of the City of Roseville, located on property known as Vista Oaks (APN 046-020-003 and APN 046-010-007), described in Exhibit A and depicted in Exhibit B, attached hereto and incorporated herein by reference, is no longer needed, and there are no public facilities in the easement; and

WHEREAS, the easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed abandonment; and IT IS HEREBY ORDERED:

1. That the easement as described in Exhibit “A” and depicted in Exhibit “B” is hereby vacated pursuant to Streets and Highways Code Section 8335, and shall, as of the date of adoption of this resolution, no longer constitute an easement; and

2. The City Manager is hereby authorized to execute any other documents required to effectuate the conveyance of the abandoned/vacated easement to the respective property owners including a Quitclaim Deed in a form and as described in the relevant agenda item; and

3. The City Clerk is hereby directed to cause a certified copy of this Resolution and Order, attested to by said Clerk under the seal of the City of Roseville, to be recorded in the Office of the County Recorder, and take any other actions necessary to effectuate the intent of this Resolution and Order, including recording a Quitclaim Deed.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR

ATTEST:

City Clerk

EXHIBIT A

The easement pursuant to that certain document recorded April 20, 1907 in Book 75 of Deeds at

Page 616 ends

recorded November 13, 1928 in Book 262, Page 193, in the office of the County Recorder of Placer County, and as further conveyed by that document recorded August 13, 1934 in Book 335, Page 78, in the office of the County Recorder of Placer County, as the easement may or may not exist on the property described below:

Legal Description of the Property

Real property in the unincorporated area of the County of Placer, State of California, described as follows:

Exhibit 1
1 THE EASEMENT BEING ABANDONED (BK 75
OF DEEDS PG 616) MAY OR MAY NOT EXIST

ON THIS PROPERTY

PROPERTY LINE

FOLLOWS THE

CENTERLINE OF

THE CREEK

1 RECORDING REQUESTED BY AND

WHEN RECORDED MAIL THIS DEED
AND TAX STATEMENTS TO:

(SPACE ABOVE FOR RECORDER'S USE)
The undersigned Grantor declares:

DOCUMENTARY TRANSFER TAX IS $0 ( R&T Code 11922)
( ) on the consideration or value of property conveyed; or ( ) computed on the consideration or value less liens or encumbrances remaining at the time of sale. ( ) Unincorporated area; ( ) City of ___________________

QUITCLAIM DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CITY OF ROSEVILLE, a municipal corporation organized and existing under the laws of the State of California ("Grantor"), hereby remises, releases , and forever quitclaims to RONALD M.

GUNTERT, JR., TERRY M. GUNTERT, CELIA GUNTERT WEDDING, KAREN GUNTERT ADAMS, AND CHRISTIAN H. GUNTERT, AS TENANTS IN COMMON (collectively, “Grantee”), all of Grantor's right, title , and interest, if any, in that certain real property located in the County of Placer, State of California, and more particularly described in Exhibit 1 attached hereto and incorporated herein by this reference (the "Property").

This Quitclaim Deed is being recorded to terminate all right, title, and interest of Grantor in, to, and under, and release the Property from all rights of any nature granted to Grantor and encumbrances placed upon the Property pursuant to that certain document recorded April 20, 1907 in Book 75 of Deeds at Page 616, in the office of the County Recorder of Placer County, as conveyed by that document recorded November 13, 1928 in Book 262, Page 193, in the office of the County Recorder of Placer County, and as further conveyed by that document recorded August 13, 1934 in Book 335, Page 78, in the office of the County Recorder of Placer.

Dated: June __, 2024 CITY OF ROSEVILLE, a municipal
corporation,

By:

Name: DOMINICK CASEY
Its: City Manager

2 ALL-PURPOSE ACKNOWLEDGMENT

State of California )
)
County of )

On ______________, before me,____ _______________________________, Notary Public, personally appeared ________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrumen t and acknowledged to me that he/she/the y executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under
the laws of State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal

_________________________________________________________ Place Notary Seal Above Signature of Notary Public

OPTIONAL

Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to an other document.

Description of Attached Document
Title or Type of Document:

Document Date: Number of Pages:

Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer’s Name: Signer’s Name:
 Individual  Individual
 Corporate Officer – Title(s):  Corporate Officer – Title(s):
 Partner -  Limited  General  Partner -  Limited  General  Attorney-in-Fact RIGHT THUMBPRINTOF
SIGNER  Attorney-in-Fact RIGHT THUMBPRINTOF
SIGNER
 Trustee

 Trustee

 Guardian or Conservator  Guardian or Conservator
 Other:

Signer is Representing:

 Other:

Signer is Representing:

A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Exhibit 1
3 EXHIBIT 1
to Quitclaim Deed
Legal Description of the Property

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office Development Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: Summary Vacation - Vista Oaks Subdivision Located in Rocklin (APN 046-020-003)

Project Location: 45.95-acre site on two parcels (no address on file) located east of Interstate 80 and Secret Ravine, north of city boundary and Viola Way ( APNs 046-020- 003-000 and 046-010-007), Rocklin, CA 95677.

Project Description: City staff were contacted by the developer of a property located in the City of Rocklin just north of the city boundary known as Vista Oaks and were informed that the property's title is clouded by an old existing easement that dates back to the 1930's. The easement was dedicated to the City of Roseville for a canal and reservoir. However, the location of the reservoir and canal cannot be determined so presumably the easement was never in use. There is no reason for the City to retain the easement, and vacating the easement will allow the title company to remove the easement of record from title releasing the property from its incumbrance.

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project : City of Roseville Development Services Department

Reason why this Project is Exempt: This project qualifies for a Class 5 exemption as described in Section 15305 of the California Environmental Quality Act (CEQA) guidelines which states:

“Class 5 consists of minor alterations in land use limitations in areas with an average slope of less than 20%, which do not result in any changes in land use or density…”

The proposed summary vacation is consistent with the above criteria, and t herefore a Class 5 exemption applies to the project.

Lead Agency Contact Person: Marc Stout, Development Services Department, 311 Vernon Street, Roseville, CA 95678. (916) 774-5482.

Signature: Date: 6/25/2024
Jessica Lynch, Environmental Coordinator
City of Roseville

COUNCIL COMMUNICATION
CC #:
3472
File #:
0203-09
Title:

Waste Services Cost-of-Service Study – Professional Services Agreement Contact:

Joseph Barrow 916-746-1732 [email protected]

Meeting Date: 8/7/2024
Item #: 6.10.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council approve a professional services agreement with R3 Consulting Group, Inc. (R3 Consulting) for a utility rate study for waste services in the amount of $79,850 and adopt a resolution to authorize the City Manager to execute it.

BACKGROUND
The Environmental Utilities Department (EU) is coordinating the development of a waste services utility rate study for fiscal years (FY) 2025-26 and 2026-27. The scope of the cost-of-service rate study includes a 5-year financial forecast, comprehensive financial planning and rate models, review and potential update of existing EU fiscal policies, and documentation of the analyses.

EU published a Request for Proposal (RFP #08-137) on April 23rd, 2024, for a Waste Services Utility Cost-of-Service Study. On May 30, 2024, the City Clerk’s office received proposals from (2) firms for review and consideration. Based on evaluation criteria established in the RFP, staff determined the highest-ranking firm to be R3 Consulting.

FISCAL IMPACT
Funding of $79,850 for the professional services agreement is included in the FY2024-25 budget in the Waste Services Operations Fund.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)).

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal F - Invest in well-planned infrastructure and growth

Respectfully Submitted,
Joseph Barrow, Environmental Utilities Business Analyst Richard Plecker, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-280
Professional Services Agreement
RESOLUTION NO. 24-280

APPROVING A PROFESSIONAL SERVICES AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND R3 CONSULTING GROUP, INC., AND AUTHORIZING THE

CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a professional services agreement for a waste services cost-of-service study, by and between the City of Roseville and R3 Consulting Group, Inc., has been reviewed by the City Council; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said professional services agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024]

PROFESSIONAL SERVICES AGREEMENT
Waste Services Cost-of-Service Study

THIS AGREEMENT is made and entered into this ___ day of ________________, 20__, by and between the City of Roseville, a municipal corporation (“CITY”), and R3 Consulting Group, Inc., a California corporation (“CONSULTANT”); and

W I T N E S S E T H:

WHEREAS, CITY issued Request for Proposal # 08-137 for professional services consisting of preparation of a Waste Services Cost-of-Service Study; and WHEREAS, CONSULTANT has prepared a response to the Request for Proposal dated June 20, 2024, which describes the scope of services to be performed by CONSULTANT, and the hourly rates for performance of such services; and
WHEREAS, CONSULTANT is qualified and experienced to provide such professional services.

NOW, THEREFORE, the parties agree as follows:

1. Services. CONSULTANT shall perform, at the direction of CITY, the scope of services as described in EXHIBIT “A,” attached hereto and incorporated herein by this reference.

2. Compensation. For its services provided hereunder, CONSULTANT shall be compensated on a time and expense basis in accordance with the budget estimate as described in [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 2 EXHIBIT “B,” attached hereto and incorporated herein by this reference. Total compensation shall not exceed seventy-nine thousand, eight hundred fifty dollars ($79,850).

CONSULTANT shall submit one monthly invoice for its services. Such invoices shall be delineated by task, the person performing the services, and the hourly rate, which shall be stated in time increments of not greater than one tenth (1/10) hours. CITY shall pay invoices within thirty (30) days after receipt, if the services specified in the invoice have been satisfactorily completed.

3. Indemnification. To the fullest extent allowed by law, CONSULTANT shall defend, indemnify, and save and hold harmless CITY, its officers, agents, employees and volunteers from any claims, suits or actions of every name, kind and description brought forth, or on account of, injuries to or death of any person (including but not limited to workers and the public), or damage to property, resulting from or arising out of CONSULTANT's willful misconduct or negligent act or omission while engaged in the performance of obligations or exercise of rights created by this Agreement, except those matters arising from CITY's sole negligence or willful misconduct. The parties intend that this provision shall be broadly construed.

CONSULTANT’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 3 law. The defense and indemnity obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

4. Insurance. CONSULTANT agrees to continuously maintain, in full force and effect, the following minimum policies of insurance during the term of this Agreement.

COVERAGE LIMITS OF LIABILITY

Workers’ Compensation Statutory

Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate
Personal Injury:
$1,000,000 each occurrence
$2,000,000 aggregate

Automobile Liability $1,000,000 combined single limit

Professional Liability (errors and $1,000,000 per claim omissions) $2,000,000 aggregate

a. Form. CONSULTANT shall submit a certificate evidencing such coverage for the period covered by this Agreement in a form satisfactory to Risk Management and the City Attorney, prior to undertaking any work hereunder. Any insurance written on a claims made basis is subject to the approval of Risk Management and the City Attorney. b. Additional Insureds. CONSULTANT shall also provide a separate endorsement form or section of the policy showing CITY, its officers, agents, employees and volunteers as additional insureds for each type of coverage, except for Workers’ Compensation and Professional Liability. Such insurance shall specifically cover the contractual liability of CONSULTANT. The additional insured coverage under the CONSULTANT’s policy shall be primary and noncontributory, as evidenced by a separate endorsement or section of the policy, and shall not seek contribution from CITY’s insurance or self-insurance. In addition, the [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 4 additional insured coverage shall be at least as broad as the Insurance Services Office (“ISO”) CG 20 01 Endorsement. Any available insurance proceeds in excess of the specified minimum insurance coverage requirements and limits shall be available to the additional insureds.

Furthermore, CONSULTANT shall require its subcontractors to agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under this Agreement. Additionally, CONSULTANT shall obligate its subcontractors to comply with these same provisions with respect to any tertiary subcontractor, regardless of tier. A copy of CITY’s indemnity and insurance provisions will be furnished to the subcontractor or tertiary subcontractor upon request.
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 5 f. Self-Insured Retentions. All self-insured retentions (“SIR”) must be disclosed to Risk Management for approval and shall not reduce the limits of liability.

5. Records. CONSULTANT and its subcontractors shall maintain all files and records relating to the services performed hereunder during the term of this Agreement and for a period of not less than one (1) year after the date of termination or expiration. Provided, however, that in the event of litigation or settlement of claims arising from the performance of this Agreement, CONSULTANT and its subcontractors shall maintain all files and records until such litigation, appeals or claims are resolved. Duly authorized representatives of CITY shall [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 6 have right of access during normal business hours and after reasonable notice to CONSULTANT’s and subcontractors’ files and records relating to the services performed hereunder and may review and copy the files and records at appropriate stages during performance of the services and during the one (1) year period following termination or expiration of this Agreement. CONSULTANT shall include this provision in its contracts with all subcontractors.

6. Time is of the Essence. Time is of the essence of this Agreement.

7. Prevailing Wages. When applicable, for purposes of this Agreement, CONSULTANT and its subcontractors shall comply with all applicable prevailing wage laws, e.g., but not limited to, California Labor Code Sections 1770 et seq. In accordance with said Section 1775, CONSULTANT shall forfeit as a penalty to the City two hundred dollars ($200) for each calendar day or portion thereof for each worker paid less than the prevailing rates for such work or craft in which such worker is employed for any work done on-site under the Agreement by CONSULTANT or by any subcontractor in violation of the provisions of the Labor Code and in particular, Labor Code Sections 1770 to 1780, inclusive. In addition to said penalty and pursuant to said Section 1775, the difference between such stipulated prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the stipulated prevailing wage shall be paid to each worker by CONSULTANT or the applicable subcontractor.

Pursuant to the provisions of California Labor Code Section 1773, the contracting department has identified the source, stated below, of the general prevailing rate of wages applicable to the site to be done, for straight time, overtime, and holiday work. The holiday wage rate listed shall be applicable to all holidays recognized in the collective bargaining [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 7 agreement of the particular craft, classification or type of worker concerned. These wage rates may be obtained from the State Department of Industrial Relations and/or the following website address: http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.

8. Compliance with Laws. CONSULTANT shall comply with all federal, state and local laws, ordinances and policies as may be applicable to the performance of services under this Agreement.

9. Ability to Perform. CONSULTANT agrees and represents that it has the time, ability and professional expertise to perform the services required under this Agreement.

CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 8 conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Agreement.

11. Governing Agreement. In the event of any conflict between this Agreement and its EXHIBITS, the provisions of this Agreement shall govern. In the event of any conflict between any of the EXHIBITS, the provisions of the first in order of attachment shall govern.

12. The Levine Act Disclosure. The Levine Act (Govt. Code, Section 84308) requires a Party (and its agent(s), if any) to a Proceeding before the City of Roseville that involves any action or consideration related to their contract, license, permit, or other entitlement for use, to disclose any campaign contributions made to CITY elected or appointed officers totaling more than $250 within the twelve (12) months prior to the CITY decision and while a proceeding is pending, and includes certain prohibitions on contribution activity thereafter. If applicable campaign contributions have been made by CONSULTANT and/or its agent(s), CONSULTANT is responsible for compliance, including for its disclosure obligations, if any, as further described at:
https://www.roseville.ca.us/government/departments/city_clerk/transparency/levine_act.

13. Assignment. CONSULTANT is employed to perform unique personal services.

CONSULTANT shall not assign this Agreement without the prior written consent of CITY.

CONSULTANT shall not employ or otherwise incur any obligation to pay other specialists or experts for services in connection with this Agreement, without prior written consent of CITY.

14. Independent Contractor. CONSULTANT, inclusive of its agents, officers, employees, volunteers, independent contractors, and subcontractors, shall act as an independent contractor, and covenants and agrees that it will conduct itself consistent with such status, that it [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 9 will neither hold itself out as, nor claim to be, an officer or employee of CITY by reason of this Agreement.

CONSULTANT and CITY agree that: (a) CONSULTANT is free from the control and direction of CITY in connection with the performance of the work; (b) CONSULTANT is providing services directly to CITY; (c) CONSULTANT has and will maintain at all relevant times a business license; (d) CONSULTANT maintains a business location that is separate from CITY; (e) CONSULTANT is customarily engaged in an independently established business of the same nature as that involved in the work performed hereunder; (f) CONSULTANT actually contracts with other businesses to provide the same or similar services and maintains a clientele without restrictions from CITY; (g) CONSULTANT advertises and holds itself out to the public as available to provide the same or similar services; (h) CONSULTANT provides its own tools, vehicles, and equipment to perform the services; (i) CONSULTANT has negotiated its own rates; (j) CONSULTANT set its own hours and location of work in accomplishing CITY’s on- call needs; and (k) CONSULTANT has the right to control the manner and means of accomplishing the result desired and exercises its own expert independent judgement.

15. Representations and Warranties. CONSULTANT warrants that it has not employed or retained any company or person, other than a bona fide employee working for CONSULTANT, to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to terminate as void this Agreement, without liability, or, in its discretion, to deduct from the [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 10 Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

16. Successors in Interest. This Agreement shall be binding upon the heirs, successors, executors, administrators and assigns of the respective parties hereto.

17. Copyright, Ownership and Use of Materials. All tangible material (“Material”) created or delivered pursuant to this Agreement is considered a work made for hire under the Copyright Act. To the extent such Material does not qualify as a work made for hire, CONSULTANT hereby assigns to CITY all right, title, and interest, including but not limited to all copyrights, in all Material created by CONSULTANT in its performance under this Agreement. Material constitutes the scope of work outlined in Exhibit A and attached hereto, and all written and other tangible expressions, including but not limited to, drawings (including computer aided drawings), papers, documents, reports, surveys, renderings, exhibits, sketches, maps, models, prints, paintings or photographs, in any and all media or formats in which such materials have been created or are maintained. All Material furnished by CONSULTANT is, and shall remain, the property of CITY.

CONSULTANT shall execute any documents necessary to effectuate such assignment.

In the event that CONSULTANT uses, employs, designates, or retains any person or entity who is not an employee of CONSULTANT, to perform any work required of it pursuant to this Agreement, CONSULTANT shall require said person or entity to execute an agreement containing the preceding paragraph.

18. Termination of Agreement. The City may terminate this Agreement without cause by giving CONSULTANT ten (10) days advance written notice from the City Manager.

CONSULTANT may terminate this Agreement without cause by giving CITY thirty (30) days [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 11 advance written notice. In the event of termination through no fault of CONSULTANT, CITY shall compensate CONSULTANT for services performed as of the date of termination, upon the release to CITY of all Material hereunder, in any and all media or formats in which such materials have been created or are maintained. CITY retains the right to receive and use any Material, notwithstanding any termination or any dispute regarding the amount to be paid.

19. Attorney’s Fees; Venue; Governing Law. If either party commences any legal action against the other party arising out of this Agreement or the performance hereof, the prevailing party in such action shall be entitled to recover its reasonable litigation expenses, including but not limited to, court costs, expert witness fees, discovery expenses, and attorney’s fees. Any action arising out of this Agreement shall be brought in Placer County, California, regardless of where else venue may lie. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

20. Modification. This Agreement and each provision contained herein may be waived, amended, supplemented or eliminated only by mutual written agreement of the parties.

21. Severability. If any of the provisions contained in this Agreement are for any reason held invalid or unenforceable, such holding shall not affect the remaining provisions or the validity and enforceability of the Agreement as a whole.

22. Notices. Any notices to parties required by this Agreement shall be delivered personally or mailed, U.S. first class postage prepaid, addressed as follows:

CITY OF ROSEVILLE CONSULTANT

Joseph Barrow Carrie Baxter, Principal
Environmental Utilities Business Analyst Project Lead
1800 Booth Road 1512 Eureka Road, Suite 220
Roseville, CA 95747 Roseville, CA 95661

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 12 Either party may amend its address for notice by giving notice to the other party in writing.

23. Integrated Agreement. This is an integrated agreement and contains all of the terms, considerations, understanding and promises of the parties. It shall be read as a whole.

IN WITNESS WHEREOF, the City of Roseville, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attested to by its City Clerk under the authority of Resolution No. ______, adopted by the Council of the City of Roseville on the ___ day of ____________, 20__, and CONSULTANT has caused this Agreement to be executed.

CITY OF ROSEVILLE, a R3 CONSULTING GROUP, INC., a
municipal corporation California corporation

BY: _______________________________ BY: _______________________________ DOMINICK CASEY its: _______________________________ City Manager
and
ATTEST:

BY: _______________________________
its: _______________________________

BY: _______________________________

CARMEN AVALOS
City Clerk

APPROVED AS TO FORM:

BY: _______________________________

MICHELLE SHEIDENBERGER
City Attorney

(SIGNATURES CONTINUED ON NEXT PAGE)
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024] 13 APPROVED AS TO SUBSTANCE:

BY: _______________________________

RICHARD PLECKER
Environmental Utilities Director

Devin Whittington on behalf of Richard Plecker
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024]

EXHIBIT “A”
City of Roseville | Cost-of-Service Study 1
B. PROJECT PLAN

Our approach to this rate study engagement is to develop a rate model that is based on sound, documented, operational and financial projections. Key to that is an effective accounting of current revenues and expenses that can serve as the basis for the projections. New programs, opportunities for operational efficiencies, State legislative requirements under AB 1826 and SB 1383, new CARB regulations, and other factors also need to be considered.

As a starting point for the project, we will review the prior rate model developed by R3 for the City and determine the characteristics of that model which the City would like to include in the updated rate model, as well as potential new characteristics and capabilities that it wishes to incorporate.

As part of the development of the rate model, R3 will work with the City to assure that the rate model incorporates the capabilities and characteristics needed to address the range of issues facing the City’s solid waste collection operations, including but not limited to:
› Required capital reserves, to replace existing vehicles and equipment on an appropriate schedule and purchase new collection vehicles, carts, containers, and other equipment to handle potential future growth.
› Current diversion levels, the potential for increased diversion through multi-family, commercial and industrial programs and the impact of any such increased diversion on both revenues and expenses. › Current system capacity, to incorporate additional accounts (e.g., expanded commercial recycling; account growth) and the points at which additional collection routes will be required. › The reasonableness and appropriateness of the methods used to allocate revenues and operating and non-operating expenses among the various lines of business (residential, commercial, and roll -off service), including street sweeping and storm drain maintenance activities that are funded through the rates.

To accomplish this objective requires a collaborative effort between the City and R3. Throughout the engagement, we will provide the City with drafts of our work products that clearly document the supporting bases for all assumptions, projections, and other relevant data inputs. This allows all parties to review and comment on the data and ensure that it accurately reflects current and anticipated future conditions.

Our overriding objective is to provide the City with a thorough and clear analysis of rates over the five- year planning period and a documented rate model that will provide the City with an easy -to-use tool for ongoing rate analysis and rate setting needs.

Scope of Work
Task 1 Request for Information and Project Kick-off
Objective
Kick off the project with City staff, confirm project deliverables, schedules and processes and request data needed for subsequent analysis.

Task 1.1 Request for Information
Upon authorization to proceed, R3 will provide the City with a preliminary list of information and documents anticipated to be necessary to complete this rate study.

Requested documents may include, but will not necessarily be limited to, the following:
› Current utility policies, procedures, and regulatory requirements › List of all services and service levels for City solid waste customers. › Customer subscription levels by customer rate class.

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 2
› List of all weekly routes and available productivity data (i.e., total weekly accounts serviced and accounts per route per day if available).
› Financial and budgetary reports.
› Historical revenue and expense line item data.
› Current fiscal year line item budget and year-to-date expenditures. › Capital projects expense projections.
› Vehicle and equipment list.
› Equipment replacement schedules.
› Projected annual customer growth and/or City projections for business, development, and population growth for the next five years.
› Current reserve accounts and balances.
› Current solid waste development fee amounts.
› Organizational chart for City solid waste operations. › Current fiscal year revenue and expense line item budget. › Any one-time or periodic revenues and non-customer rate revenues should be clearly identified. › Any one-time or periodic expenses that are not normal ongoing expenses should be clearly identified. › List of all reserve accounts, with intended uses noted, and most recent Fiscal Year End balances. › Current and projected capital projects expenses and schedules. › Vehicle and equipment list with type of vehicle, model year and age indicated. › Equipment replacement schedule.
› Example reports from the City to facilitate incorporation into the five-year financial plan and rate model. › Any other relevant data.

R3 will review the data and identify any additional requirements or issues to be discussed at the Task 1.2 Kick -Off Meeting.

Task 1.2 Kick-off Meeting
R3 believes that all successful projects begin with a mutual understanding and confirmation of key project objectives, schedules, client interests and expectations.

To that end, though we have a clear understanding of all necessary tasks and requirements for this project, we suggest a kick-off meeting with City staff at the start of the project to:
› Review the scope of work, deliverables, and schedule. › Confirm City staff expectations and desires regarding project communications between R3 and the City › Confirm a schedule for regular biweekly updates via conference call or email to City staff. › Confirm City’s understanding of the Task 1.1 Request for Information and discuss items for clarification. › Discuss current rate policies and historical rate issues. › Current and historical revenue and expenses.
› Cost-of-service expense allocations.
› Growth projections.
› Reserve funds.
› Anticipated new programs and/or changes in operations or service levels. › Discuss other questions and comments related to the successful completion of the project.

R3 will work with City staff to schedule the kick-off meeting, which will include key R3 project staff and should include key City staff at the City’s discretion. R3 will prepare and distribute the meeting agenda and will lead the meeting in coordination with City staff.

We also anticipate reviewing the City’s current rate model (previously prepared for the City by R3) and discussing the required characteristics and attributes of an updated rate model. These discussions will help ensure a successful project by clarifying the objectives and expectations of the City.

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 3
Task 1 Deliverables
– Detailed request for information and documentation submitted to City staff via email one week prior to the kick-off meeting.
– Initial review of requested information, with follow-up as needed. – Development of the kick-off meeting agenda.
– Facilitation of the kick-off meeting.

Task 2 Review Current Utility Policies/Procedures and Regulatory Requirements Objective
Review current utility policies and procedures and regulatory requirements as they affect operations, capital projects, revenue program requirements, and rate structures.

Methodology
Understanding the City’s current utility policies, procedures and regulatory requirements is a critical first step to developing a five-year financial plan, rate model ,and five-year rates for the City. Via this task, R3 will refresh our understanding of the City’s policies, procedures, and requirements.

For this task, R3 will review the City’s current utility policies, procedures and regulatory requirements as they relate to the City’s solid waste collection operations, capital projects, revenue program requirements, and the rate modeling that is to be performed as part of this engagement. We will also review the City’s Municipal Code as it relates to the collection of solid waste and recyclables within the City.

Task 2 Deliverable
– Written summary of the City’s current utility policies, procedures, and regulatory requirements as they pertain to the five-year financial plan, rate model and five-year rates included in Task 6.

Task 3 Develop Five-Year Financial Plan
Objective
Review operating costs as a result of future growth of the City and potential expansion of collection programs, such as commercial recycling and organics. Identify and summarize the City’s current rate structure, operating expenses, capital costs, revenue streams, reserve funds, and billing program.

The objective of this task is to develop a five-year financial plan that provides for the projection of the City’s revenues and expenses for solid waste operations over a five-year planning period, accounting for the factors listed below.

The financial plan will include the City’s current services and may include costs of additional services that may be recommended and will be structured such that the impact of various rate adjustment options on the City’s finances over the planning period can be effectively evaluated.

Factors to be reviewed and evaluated in the development of the five-year financial plan include:
› Current operating expenses.
› Projected future operating costs resulting from residential, commercial and/or development growth. › Projected future operating costs resulting in new, changed and/or expanded collection programs such as commercial recycling and organics services.
› Vehicle and equipment replacement.
› Transfer, processing and disposal costs.
› Staffing needs.
› Capital needs including trucks, containers, facilities, and other capital expenses. › Emergency operating reserve funds.
› The City’s current rate structure, revenue streams and billing program. › Other elements as identified by the City and R3 (e.g., three-cart collection system, on-call residential bulky waste collection, adding or revising billing rates for locking, push/pull, container replacement, and auto can serviced by rear loaders).

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 4
Specific methods for reviewing and evaluating the needed expenses and revenues that will be projected in the five- year financial plan are provided in the following subtasks.

Task 3.1 Review Current and Projected Operational Requirements As part of the development of the five-year financial plan, R3 will work with City staff to document current and projected operational requirements. This will include documenting the current number of accounts and the associated workloads, routes, staffing levels and other operational factors. Estimates of future operational requirements and costs to address future growth and potential expansion of collection programs, such as commercial recycling and organics (for example, in response to SB 1383), will also be developed. It is assumed that as part of this task the City’s existing equipment replacement schedule will be reviewed and updated as appropriate to be consistent with the projected operational requirements.

As part of this task, R3 will conduct a high-level review to determine the productivity of collection operations and the level of capacity that exists within the current routes to incorporate additional accounts due to expanded programs (e.g., commercial recycling) and/or growth. This information will be used to help model the timing of new equipment purchases over the five-year planning horizon, and in particular, to help refine assumptions and estimates relating to projected growth in the City.

Task 3.2 Document Current Financial Baselines
This task involves documenting current financial baselines, including all applicable revenue and expense line items, fund reserves, capital cost estimates and any other relevant data. It is anticipated that this information will, with any appropriate adjustments, form the basis for projections over the five-year planning period. To the extent feasible, R3 will evaluate and incorporate historical information from prior rate study projects for the City to allow for review and analysis of historical trends. Any available year-to-date information will also be reviewed.

Task 3.3 Prepare Revenue Projections
Revenue projections will be prepared for the five-year planning period. These projections will account for both rate related revenue and non-rate related revenue (e.g., interest income, bond proceeds, grants, sale of assets, development fees, etc.), and the impact of growth and any other relevant factors. Rate revenue projections will be based on current rates, which will then be adjusted as part of the rate modeling that will be performed in a subsequent task.

Task 3.4 Prepare Expense Projections
The purpose of this task is to prepare projections of the City’s solid waste operation expenditures over the five-year planning period. This task will build upon the basis for projections that is established as part of Task 3.3.

In developing these projections, we will coordinate with appropriate City staff, as necessary, to review the historical expenditures and discuss the assumptions, conditions, and trends affecting the projections. The format for these projections will correspond to the City’s existing accounting records, but will also incorporate any modifications discussed in the kick-off meeting. R3 will assume that a cash-basis accounting system is used, whereby expenditures will be included in the fiscal year in which they occur.

The expense projections that are prepared will account for anticipated inflation adjustments, and other financial planning elements for the City’s solid waste operation:
› Current revenue and expenses.
› Growth projections.
› Transfer, processing and disposal costs.
› Staffing needs.
› Vehicle and equipment replacement schedules, corporation yard repairs and improvements. › Operating reserves.

As an element of the expense projections, R3 will prepare a cost-of-service analysis, which is a key aspect of compliance with Proposition 218 requirements.

The cost-of-service analysis can be conducted on two levels:
› Line-of-Business Cost-of-Service Analysis – The analysis of revenues and expenses among lines of business (e.g., residential, commercial, industrial) with the intent of balancing revenues and expenses to eliminate any subsidies that may exist across lines of business (e.g., commercial rates subsidizing residential rates).

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 5
› Individual Rate Cost- of-Service Analysis – The analysis of rates and the relationships between rates within a given rate structure to determine the extent to which an individual rate reflects the cost of the associated service level (e.g., the cost to service a 4-yard container one time per week compared to the cost to service a 1-yard container four times per week).

The purpose of this task is to evaluate the reasonableness of any cost-of-service allocations that the City has developed among the various lines of business. If the City has not allocated costs to the various lines of business, we will work with the City as part of this task to develop such projections.

One specific focus of this task will be to quantify the cost of commercial recycling services and the impact of potential expansion of those services in response to the State’s mandatory commercial organics recycling requirements under SB 1383. This will support the determination of a specific cost-of-service rate for commercial organics recycling and various other commercial recycling rate options.

Task 3.5 Prepare Capital Project Expense Projections
To the extent that the City’s solid waste operation is projecting capital project expenses, w e will review available capital project expense projections and, as appropriate, make any suggestions for updating or otherwise modifying those projections based on available data, including the operational projections developed in a prior task. Any such capital project expenses will be incorporated into the rate model and five-year rates.

Task 3.6 Review Operating Reserve Funds and Uses
R3 will review the City’s reserve accounts to determine if the balance of each reserve with respect to the intended purposes are sufficient to fund the necessary one-time expenses. This review will specifically include identifying the funding necessary to replace vehicles and equipment according to an established replacement schedule, and fund any projected capital costs (e.g., growth, AB 1826 and SB 1383 programs, etc.). The rate model developed will be constructed so rates are sufficient to generate the necessary reserve funds over the planning period, and account for the use of those reserves as needed to fund the associated expenses as they are expected to incur.

Task 3.7 Prepare Financial Plan Model
The various revenue and expense projections developed in the prior tasks will be used to construct a simple, easy-to- use, easy-to-modify and easy-to-update Excel-based five-year financial plan (upon which the rate model and five-year rates will also be built). As noted in the beginning of this Task 3, this five-year financial plan will be cost-effectively developed for the City based on the prior plan(s) developed for the City by R3 and/or incorporating other more recent financial plans developed by R3.

This Excel model will include results of all Task 3 subtasks as well as capabilities and components (e.g., reserve fund balances and funding requirements) identified by the City and R3 during implementation of this Task. One important component of developing such an easy-to-use five-year financial plan is that it will provide a means to evaluate various expense, revenue and rate adjustment scenarios. This financial plan will also include the City’s current rate structure, operating expenses, capital costs, revenue streams and reserve funds, and projected fin ancial performance over the five-year planning period.

Task 3 Deliverables
– Identification of current and projected operational requirements. – Documentation of current financial baselines.
– Projections of five-year revenues and expenses.
– Projections of five-year capital needs and expenses.
– An Excel-based five-year financial plan that is easy-to-use and update and will be the basis of the rate model and five-year rates developed in Task 4.

Task 4 Develop Rate Model and Five-Year Rate Options
Objective
Determine the sufficiency of the current rate structure to meet ongoing needs, including a projection of how long this may be the case. Review impact of projected new development on rates. Determine solid waste service charges.

Prepare a user-friendly computer rate model and manual for City use. The model should be capable of being used by the City to plan its capital improvements program and determine impact fees and rates. Models should also provide flexibility to integrate City’s financial system and to compute rates. Includes a one-day training seminar for City staff.

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 6
Task 4.1 Prepare Rate Model
Using the five-year financial plan developed in Task 3, and in conjunction with City staff, R3 will analyze various rate adjustment scenarios that are sufficient to fund the City’s annual operating costs over the five- year planning horizon, and provide necessary funding for vehicle replacement, residential and commercial/development growth, operating reserves, and other expense and revenue drivers identified in completing Task 2.

The resultant rate model will:
› Use best industry practices to determine the ability of the current rates and current rate structure to meet the City’s ongoing solid waste operational needs, and over what time frame. › Identify the specific impact that growth and new development will have on the rates as projected. › Use the five-year financial findings and projections to recommend solid waste rates and services charges that are cost-based, equitable and legally defensible.
› Provide rates which meet the legal requirements of Proposition 218.

Rate adjustment scenarios may include:
› A single rate adjustment that will set rates and satisfy the revenue requirement over a set planning period without need for additional adjustment (i.e., no additional annual indexed adjustments). › A single rate adjustment that will set rates and satisfy the revenue requirement over the set planning period, with additional planned annual CPI indexed adjustments.
› Consistent annual rate adjustments over a set amount of time to introduce the rate structure changes more gradually.
› Periodic rate adjustments (e.g., rate adjustments every two or three years).

The model will be developed using Excel and will include the following:
› Embedded footnotes in cells to identify the sources of data and methodologies used to develop the new data. › Color-coding to indicate the budget items that should be modified/updated annually. › Overall annual required rate adjustments needed to meet revenue needs. › Other components as requested by the City.

R3 will work with the City to establish how the resultant rate model can provide the flexibility to integrate information from the City’s financial system into the model and thus compute rates over time. This will start with the Task 1 information request, during which we will request examples of reports from the City’s financial system to ensure that reports from the City’s system can be integrated into the five-year financial plan and thus into the rate model.

Task 4.2 Review Rate Structure
As part of the development of the rate model, the City’s current rate structures will be reviewed to determine if the current rate structure can meet the ongoing needs of the City. To the extent that the current rate structure appears not to be able to meet the ongoing needs of the City, alternative rate structure options will be identified and presented to City staff. A key focus of this analysis is a review of the current commercial account distribution and an assessment of that distribution in light of the associated rate structure and the rate relationships between the various service levels.

Ideally, from an operational efficiency standpoint, each account would be provided with appropriate storage volume so that service frequency could be limited to one time per week. This would allow the City to meet the weekly service volume requirements with the least amount of resources at the lowest possible cost to the system users.

Task 4.3 Update Rate Model and Provide Training to City Staff R3 will prepare (or update if feasible) a rate manual which clearly details procedures for City staff to update the five-year financial plan and rate model.

The rate manual will provide City staff with the specific information necessary to effectively upd ate and analyze various rate adjustment options and will include:
› A description of the format of the rate model, including key in-feed data points, calculations, formulas, and assumptions.
› A discussion of the rate model’s rate adjustment capabilities. › A description of each of the five-year financial plan and rate model worksheets.

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 7
› Specific steps to take for annually updating the rate model, evaluating rate adjustment scenarios, and developing specific rate adjustment recommendations.

As part of this task, R3 will conduct a one-day training seminar for City staff. In addition, R3 proposes to work with City staff in advance of that training session to familiarize staff with the rate model and provide hands -on experience using the rate model to analyze various rate adjustment options and develop the recommended rate adjustments.

Task 4 Deliverables
– Excel-based rate model meeting the descriptions noted above. – Development of up to five (5) alternative scenarios for adjusting rates to meet expense and revenue requirements over the planning period.
– Recommended rate adjustments corresponding to each of the five (5) alternative scenarios. – Charts, tables, and graphics showing the proposed rates for each FY. – Updated rate manual for City use.
– One (1) day training seminar on the five-year financial plan, rate model, and rate manual.

Task 5 Conduct Rates and Services Survey
Objective
Survey at least five other local government agencies that provide municipal solid waste and recycling services to establish service/rate benchmarks. The list of agencies will be conducted in collaboration with the City. The survey will include a review of cans or carts, bin and drop boxes for residential, multi-family and commercial customers.

The survey will include an analysis, or any information, on how the jurisdictions are setting rates and allocating revenues and expenses based on Proposition 218. The survey will also include other questions the City identifies as valuable in comparing the refuse rate such as community size, special pick-up charges, disposal fees, governmental and regulatory fees, and other services (such as street sweeping) included in the rates.

Methodology
To assist the City in placing current and potential services in the context of neighboring communities, R3 will conduct a survey of comparable service and rates for at least five other municipally operated solid waste operations. R3 regularly works to review rates and services for municipal operations, and also regularly conducts surveys of rates and services throughout the State. As such, we are well positioned to provide a cost -effective survey for the City.

R3 has a list of all the municipal solid waste operations in the State, and prior to conducting this task, we suggest that R3 and the City establish which specific cities’ rates and services are most appropriate for comparison. Careful selection of comparable agencies is important – variances in rate setting methodology, potential subsidies between residential and commercial sectors, local interpretations of Proposition 218, post -collection agreement terms, government and regulatory fees, distribution of container sizes in the community, and many other factors can make a seemingly “apples-to-apples” comparison very complex, with results that may not be representative for the purposes of this comparison and benchmarking exercise.

It is important to note that the survey will include more than a simple “rate comparison.” To the extent this information is available, the survey will also include disposal and organics processing fees, franchise fees, AB 939 Fees, Vehicle Impact Fees, services provided at “no cost” to the communities (street sweeping, collection from public schools, public buildings and facilities, etc.), diversion requirements, frequency of recycling and organic collection, methods for collecting bulky waste, fuel types used for collection vehicles, and provisions for dedicated “sustainability coordinators.”

In order to select appropriate comparisons prior to conducting the survey, R3 will prepare a list of known municipal solid waste operations along with currently retained information about the rates, services, location and other conditions that will facilitate selection of appropriate comparable communities. We will provide this information to City staff and then solicit the City’s input on the top 7-10 communities for inclusion in the survey.

R3 will then communicate with staff at the selected cities to gather information including:
› Community population, and total number of accounts for residential, commercial and industrial customers. › Number of accounts at each service level option for residential, commercial and industrial customers (which is critical to an “apples-to-apples” comparison and not generally evaluated by others who conduct such surveys).

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 8
› Services rates for all container sizes, waste streams, and other services. › Detailed list of services that are provided via any “bundled” service rates, and the specific service offerings for those services (e.g. bulky item pickups, extra service charges, street sweeping services, City services, serv ices to schools, HHW service, etc.).
› Types, sizes, and frequency of collection of containers provided for residential, commercial, and industrial customers.
› Specific information regarding how rates are allocated with respect to the requirements of Proposition 218. › Specific information regarding post-collection costs including disposal, organics processing, and recyclables processing fees, as applicable.
› Governmental and regulatory fess, as applicable.
› Other information discussed and confirmed in consultation between R3 and the City.

R3 will seek this information voluntarily from the 7-10 communities selected in consultation with the City via phone, email, and written request. If we are unable to acquire complete survey information for five (5) comparable communities based on the voluntary request we may suggest that the City issue a formal Public Records Act request for the necessary information; however, we would like to avoid that being necessary because of the time, effort, and relationship impacts that can arise from making such requests.

Task 5 Deliverables
– Survey results for a minimum of five (5) comparable communities. – Incorporation of findings, tables, charts, and overall survey results into our Task 6 reports.

Task 6 Reports and Presentations
Objective
Prepare a draft report for City review. Incorporate City comments in final report. Prepare and deliver presentations designed to facilitate an understanding for the financing. Presentations will be addressed to the public -at-large, developers, landowners, City staff, and City Council.

Task 6.1 Draft and Final Report
R3’s findings and recommendations will be organized in an electronic Draft Rate Report that explains the financial plan and rate study. The Draft Report will be submitted to City staff for review and comment, and an electronic Final Report will be prepared based on comments received from the City.

The Draft and Final Rate Reports will include recommended rate adjustments over the five- year planning period and will summarize the findings and recommendations from Tasks 1 through 5 above, including charts showing the proposed rates, and detailed calculations of the expected solid waste expenditure budget for each year, and the expected solid waste revenue based on rates proposed via the rate study.

Task 6.2 Presentations
Our cost estimate for the tasks and deliverables proposed herein includes two presentations to the City Council, with up to four additional presentations to the public-at-large, developers, landowners, City staff, and the City.

Within our cost estimate, we have included the development of a PowerPoint presentation summarizing our work and based on the contents of our Draft and Final Reports. We will provide a draft copy of the presentation to City staff for review and comment, with the draft being revised into a final presentation. Our proposed cost estimate includes presenting our work, findings, and recommendations to the City Council for a rate hearing and rate adoption.

R3 understands that additional presentations may be desired by the City, and R3 stands ready to provide additional presentations with the City’s approval, and at additional cost above our base cost estimate and at the per presentation rates listed in the cost estimate provided separately.

Task 6 Deliverables
– One (1) electronic Draft Report and one (1) electronic copy of the Final Report, all of which will include:
» Explanations of the Financial Plan and Rate Model, and Rate Study. » Charts, tables, and graphics clearly showing the proposed rates.

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 9
» A detailed calculation of the expected solid waste expenditure budget for each year. » A detailed calculation of the expected solid waste revenue based on rates proposed in the rate study. – Two (2) presentations to the City Council.
» One (1) City Council hearing regarding the financial plan, rate model, and five- year rates. » One (1) City Council rate adoption meeting.
– Four (4) additional stakeholder presentations to the public-at-large, developers, landowners, City staff, and the City.

Project Schedule
R3 has thoroughly reviewed the City’s request for proposals and desired scope of work in preparing this proposal.

We have similarly reviewed project commitments and staff availability; we are confident that staff assigned to this engagement have sufficient time available to complete the requested tasks and present our deliverables within the expected project timeline. Additional detail on our current and planned projects and staff utilization can be provided upon request.

Compliance with Timeline Established by City
We have also noted the City’s desires for:
› A complete draft report submitted to the City within 6 months after award of contract.

As shown in Table 1, on the following page, the City would need to select R3 for award of contract by September 1, 2024, in order to fulfill the schedule as presented.

R3 is prepared to meet this schedule, which includes complete draft report submitted to the City within 120- days of contract award, a final report submitted to the City within 60-days of days of receipt of complete written City comments, and adoption of the new rate and revenue program prior to March 1, 2025.

Ability to Meet City’s Schedule
R3’s ability to meet this schedule will be dependent on award of contract by September 1, 2024, timeliness, and completeness of City’s responses to requests for information necessary to completion of our scope of work, the City’s ability to complete City reviews as noted in the schedule, and the City’s ability to schedule the two (2) provided City Council meetings in January and February 2025. Any and all changes from the above noted conditions will create unavoidable delays in what is a tight-fitting schedule requested by the City.

While R3 remains positioned to meet the City’s schedule, we also understand that schedules may slide due to unforeseen circumstances experienced by our clients. Should the City wish to revise and relax the schedule for completion of project tasks, this does not pose an issue to R3. Additionally, we should note that R3 will be available as needed to match schedules to be most compatible with City staff needs for the duration of the project; however, we do request that meetings be scheduled two-weeks in advance whenever possible for best availability.

Please also note additional presentations above the two (2) provided for in the proposal are not accounted for in this schedule. Additional presentations may be scheduled at the direction of City staff and will incur an additional cost.

E. PROJECT PLAN
City of Roseville | Cost-of-Service Study 10
Table 1: Project Schedule

TASK

START DATE

COMPLETION DATE

1. Request for Information and Project Kick-Off

September 2, 2024

September 9, 2024

2. Review Current Utility Policies/Procedures &
Regulatory Requirements

September 10, 2024

September 23, 2024

3. Develop Five-Year Financial Plan

September 10, 2024

October 31, 2024

4. Develop Rate Model and Five-Year Rate Options

November 1, 2024

December 16, 2024

5. Conduct Rates and Services Survey

December 2, 2024

January 3, 2025

6. Reports and Presentations

December 23, 2024

February 28, 2025
E. PROJECT PLAN
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088008.DOCX;07/01/2024]

EXHIBIT “B”
City of Roseville | Cost-of-Service Study 20

C. COST PROPOSAL

R3 proposes to complete the project for a total cost of $79,850. Table 1, below, shows the total cost breakdown by task. Additional consulting services beyond those proposed will be charged at the standard rates shown in Table 2, on the following page. Fees for work completed will be billed monthly at the first of each month, for the preceding month, and are due within 30 days of the invoice date.

Table 1: Cost Breakdown

TASK
STAFF

HOURS

COST Carrie
Baxter
Scott
Hanin
Jordan
Muratsuchi
Angela
Micheletti
Principal Principal Sr. Consultant Associate
Consultant

1. Request for Information
and Project Kick-Off

4 2

6 4

16 $ 3,660

2. Review Current Utility
Policies/Procedures and
Regulatory Requirements

4 -

20 24

$ 4,500

3. Develop Five-Year
Financial Plan

18 18

80 25

141

$ 30,925

4. Develop Rate Model and
Five-Year Rate Optional
Plan

10 2

40 12

64 $ 13,580

5. Conduct Rates and
Services Survey

6 -

25 31

$ 5,925

6. Reports and Presentations

32 10

40 4

86 $ 21,260
TOTAL 362 $ 79,850
F. COST PROPOSAL
City of Roseville | Cost-of-Service Study 21

Table 2: Standard Rates

CLASSIFICATION RATE
Principal $ 300
Sr. Director $ 300
Director $ 255
Sr. Managing Consultant $ 235
Managing Consultant $ 210
Sr. Consultant $ 200
Consultant $ 180
Associate Consultant $ 165
Expert Witness 1.5x Rates Listed Above

REIMBURSABLE COSTS
Consultants/Subcontractors Cost plus 10%
Lodging and Meals Direct cost
Travel — Private or company car At Current Federal Rate Travel — Other Direct cost
Delivery and other expenses Direct cost

F. COST PROPOSAL

COUNCIL COMMUNICATION
CC #:
3474
File #:
0110 & 0214
Title:

Engage, Empower, Implement Program - Grant Application
Contact:

Gina McColl 916-774-5452 [email protected]

Meeting Date: 8/7/2024
Item #: 6.11.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution authorizing the City Manager or his designee to submit an application to the Sacramento Area Council of Governments for funding in an amount not to exceed $500,000; and if awarded, the execution of a memorandum of understanding and other related documents necessary to participate in and comply with its Engage, Empower, Implement Program.

BACKGROUND
In early 2016, the non-profit Health Education Council (HEC) contacted City staff to determine the possibility of partnering with the City and with other organizations on a grant opportunity addressing healthy communities. Named California Non-Profit of the Year in 2016, the HEC is dedicated to providing access, education, advocacy and training to empower individuals towards a healthy life.

In May 2016, staff was notified that Roseville was one of 50 communities nationwide (out of more than 180 communities that applied) selected to receive an 18-month grant made possible from the Robert Wood Johnson Foundation (RWJF) and Reinvestment Fund with the aim to improve health in low-income neighborhoods. Recognizing that the majority of health outcomes are driven by where people live, work, play, pray, shop and learn, the Invest Health initiative sought to develop a plan to improve health through cross-sector community collaborations that can foster and develop more healthful environments.

The Invest Health Partnership has attracted $11 million in investments to date and continues to be awarded grant funding to further our work. It has proven a tremendous success in building trust, gaining insight, investing according to community priorities, and having an engagement network in place when opportunities arise. For example, at the start of the pandemic, the partnership allowed for the rapid development and implementation of the City’s Family Meal Roseville program, distributing 16,000 meals from six Roseville restaurants to food-insecure families and seniors at more than a half dozen sites throughout the city in a six-week period.

The latest grant is the City Health Dashboard Data Challenge in partnership with New York University awarded in April 2024 that examines a broad dataset related to the social determinants of health including economic stability and education access and quality, which also align with elements of the City’s Economic Development Strategic Plan. The Data Challenge provides funding to develop and examine insights and implications from the data. The next step is to obtain funding for implementation, which is the impetus for applying to the Engage, Empower, Implement grant from the Sacramento Area Council of Governments.

Engage, Empower, Implement (EEI) will support community-based planning and activities in the six-county region with a specific focus on meaningful community engagement in disinvested communities. This program provides local governments an opportunity to develop stronger relationships with community-based organizations, invest in meaningful community engagement, and commit to improving their planning processes – including making them more inclusive. It also provides community-based organizations an opportunity to learn about and participate in local planning processes, collaborate with local governments, and identify ways to work together in the future. Planning efforts funded by EEI will include a robust community engagement process that commits to listening to and acting on community-identified priorities to plan, design, and implement projects that meet their needs.

Along with the City as the lead applicant, the sub-applicant HEC, and SACOG would enter into a Memorandum of Understanding if the grant application is successful in securing funds.

FISCAL IMPACT
The grant allows for reimbursement of staff time, along with Community Based Organization (CBO) funding for engagement activities in the community. No General Fund resources will be used.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Support community engagement and advocacy

Respectfully Submitted,
Gina McColl, Economic Development Analyst
Melissa Anguiano, Economic Development Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-282
EEI Grant Application Guidelines
RESOLUTION NO. 24-282

APPROVING A GRANT APPLICATION TO THE SACRAMENTO AREA COUNCIL OF

GOVERNMENTS FOR THE ENGAGE, EMPOWER, IMPLEMENT PROGRAM, AND

AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE ALL RELATED

FORMS AND AGREEMENTS ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, in early 2016, the non-profit Health Education Council (HEC) contacted City staff to determine the possibility of partnering with the City and with other organizations on a grant opportunity addressing healthy communities; and

WHEREAS, in May 2016, staff was notified that Roseville was one of 50 communities nationwide (out of more than 180 communities that applied) selected to receive an 18-month grant made possible from the Robert Wood Johnson Foundation (RWJF) and Reinvestment Fund with the aim to improve health in low-income neighborhoods; and

WHEREAS, the latest grant is the City Health Dashboard Data Challenge in partnership with New York University awarded in April 2024 that examines a broad dataset related to the social determinants of health including economic stability and education access and quality, which also align with elements of the City’s Economic Development Strategic Plan; and

WHEREAS, the next step is to obtain funding for implementation, which is the impetus for applying to the Engage, Empower, Implement grant from the Sacramento Area Council of Governments; and

WHEREAS, Engage, Empower, Implement will support community-based planning and activities in the six-county region with a specific focus on meaningful community engagement in disinvested communities; and

WHEREAS, staff requests approval to submit the grant application to the Sacramento Area Council of Governments on behalf of the City of Roseville.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Roseville hereby approves the City Manager or his designee to submit a grant application to the Sacramento Area Council of Governments for the Engage, Empower, Implement program.

BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to execute all related forms and agreements needed to submit the application and accept the grant if awarded on behalf of the City of Roseville.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk
Engage, Impower, Implement Guidelines 1

Grant Application Guidelines

Application Period
May 24 – August 9, 2024, at 11:00 p.m.

Contact Information
Rosie Ramos: [email protected]
Nicole Zhi Ling Porter: [email protected]

Learn more about the program:

Visit the EEI Website

Engage, Impower, Implement Guidelines 2

Contents
................................................................ 1 Grant Overview .............................................................................................................................................. 3 Background ................................................................................................................................................ 3 Purpose, Vision, and Goals ........................................................................................................................ 4 Funding Overview ...................................................................................................................................... 4 Eligibility ......................................................................................................................................................... 5 Eligible Activities ........................................................................................................................................ 5 Eligible Scopes of Work.............................................................................................................................. 6 Defining Disinvested Communities & Identifying a Community Engagement Area ................................. 6 Eligible Applicants ...................................................................................................................................... 7 Application Types ................................................................................................................................... 7 Timeline ......................................................................................................................................................... 9 Screening Criteria........................................................................................................................................... 9 Award Selection ......................................................................................................................................... 9 Project Rubric........................................................................................................................................... 10 Reporting Requirements.......................................................................................................................... 10 Grant Administration ................................................................................................................................... 11 Disbursement of Funds ............................................................................................................................ 11

Engage, Impower, Implement Guidelines 3

Engage, Empower , Implement Funding Program Guidelines

Grant Overview
The Sacramento Area Council of Governments (SACOG) is seeking applications for the Engage, Empower, Implement (EEI) funding program. This document outlines all grant application details and describes the eligibility requirements, program schedule, and application evaluation process.

This $3.8 million program will fund partnerships between local government entities and community- based organizations (CBOs) for community-based planning and pre-construction project development activities in the six-county greater Sacramento region, with a specific focus on meaningful community engagement in disinvested communities. The six-county greater Sacramento region includes the counties of El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba, and all the cities within them, minus the Tahoe Basin in El Dorado and Placer counties.

Eligible applicants include local government agencies, tribal governments, and community-based organizations. More detail for each type of applicant is included below.

SACOG staff will provide technical assistance during the application period to review project concepts and scopes of work or to offer networking or connection opportunities with CBOs and government entities. Interested applicants are highly encouraged to reach out to schedule a technical assistance meeting in the first four (4) weeks of the application period to ensure the eligibility of a proposals concept and scope. Please reach out to Rosie Ramos ([email protected]) or Nicole Zhi Ling Porter ([email protected]) to schedule a meeting to discuss.

The application period is May 24 – August 9, 2024.

Background
The EEI program was developed in collaboration with community organizations and input from local jurisdictions. SACOG worked with a consultant team to engage with and understand the needs of CBOs and the challenges they experience when working with government entities. These engagement efforts informed the development of a Briefing Book, which captured the feedback from CBOs and provided specific program recommendations, and Program Framework, which outlined key components for the guidelines to be developed from, adopted by the SACOG Board of Directors in November 2023. The following guidelines were developed based upon the adopted framework, example peer funding programs, and meaningful community engagement best practices.

Community engagement is only truly meaningful when it is done with the intention of listening and then acting on what the community shares.

Engage, Impower, Implement Guidelines 4

Purpose, Vision, and Goals
Engage, Empower, Implement will support community-based planning and pre-construction project development activities in the six-county region with a specific focus on meaningful community engagement in disinvested communities. This program provides local governments an opportunity to develop stronger relationships with CBOs, invest in meaningful community engagement, and commit to improving their planning processes – including making them more inclusive. It also provides community- based organizations an opportunity to learn about and participate in local planning processes, collaborate with local governments, and identify ways to work together in the future.

Planning efforts funded by EEI will include a robust community engagement process that commits to listening to and acting on community-identified priorities to plan, design, and implement projects that meet their needs.

The goals of Engage, Empower, Implement are as follows:

1. Focus on partnerships with community-based organizations that can build capacity and understanding at both the community and local government levels.

2. Establish authentic and meaningful engagement as the first step in the planning process.

3. Provide the tools, best practices, and incentives needed to make it possible for more public agencies to deliver equitable projects for the future.

4. Integrate racial equity considerations more fully into regional investment priorities.

5. Align planning with federal and state performance objectives and policy goals for advancing equity in decision making processes.

6. Position the Sacramento region for competitive federal and state funding.

Funding Overview
• Total funding available: up to $3,800,000 for eligible applications; full amount will not be awarded in the event of insufficient or ineligible applications. • Grant minimum / maximum request:
o Jurisdiction & CBO Partnerships: $150,000 / $500,000
o Independent CBO: Up to $80,000
o Tribal government: Up to $500,000
• Required match: no match is required.
• Other considerations:
o Elevating the needs of rural communities – rural applicants can receive additional points (see project rubric).
o The allocated award will be divided between the jurisdiction and CBO as follows:
▪ At minimum, 50% of the total award budget will go to the CBO; up to 70% is highly encouraged.

Engage, Impower, Implement Guidelines 5

▪ The balance, after accounting for the CBO share, is available to the jurisdiction for any costs associated with the project including staff time and consultant costs.
o For each grant award, the community-based organization partner can receive up to $25,000 of their allocated budget upfront. Remaining expenses shall be submitted within the agreed-upon timing between the city/county lead and the CBO for reimbursement. The amount of any upfront funding made available for CBO partners will be established based on need and funding availability but should be clearly indicated in the application.

Eligibility
Eligible Activities
All proposed projects should focus on listening to community participants, centering their needs, and taking direction from the community. Proposals should not include projects that are already identified or planned, unless applicants can strongly demonstrate meaningful community engagement that led to the current project phase AND the critical need for meaningful community engagement leading into the next project milestone.

The following activities and project proposals are eligible, but the list below is not exhaustive. Please reach out if you have questions about eligible project scope activities. All eligible scopes are encouraged to consider their positive impact, if any, to a community’s air quality and/or mobility.

Eligible proposal concepts:
• Community Needs Assessment
• Transportation Needs Assessment (including active transportation needs) • Housing Needs Assessment
• Economic Development Assessment/Workforce Development • Efforts related to improving air quality
o Tree canopy assessment
o Air quality assessment
• Safety Assessments
• Planning efforts with community that prioritize safety, mobility, and accessibility for all transportation network users.
• Transit and transit-related planning efforts that can provide an equitable and safe transportation network for disinvested communities facing historic disinvestment. • Planning efforts that address climate change and sustainability. • Education and training programs

There is a wide variety of eligible expenses because of the various funding sources being used for the program. Please reach out to program staff to discuss possible concepts. For reference, the Uniform Guidance (2 CFR Part 200 Subpart E – Cost Principles) can provide guidance, but it is encouraged to reach out to staff.

Engage, Impower, Implement Guidelines 6

Eligible Scopes of Work
Eligible scopes will include a robust community engagement plan with specific strategies to develop a final product / plan or identify a project and next steps for implementation; projects / plans should benefit historically disinvested communities. The scope will include a project closeout report and performance evaluation metrics to measure the project’s success.

If activities proposed in the grant application scope of work are not allowable under the current funding sources being used, SACOG may seek to identify other funding sources that could be exchanged to allow for these activities. Applicants with questions about whether a proposal is eligible should reach out to SACOG staff to discuss. SACOG will work with applicants to identify which activities qualify for federal reimbursement and which do not. SACOG recognizes that determining eligibility can be a complicated task. It is highly encouraged that interested applicants reach out to SACOG in the first four weeks of the application period to discuss possible scopes and make these determinations. Please see the scope of work template for reference.

SACOG will work with each grant awardee to ensure that planned project activities meet the funding eligibility requirements and are prepared for programming in the federal Metropolitan Transportation Improvement Program (MTIP) and Regional Overall Work Program as applicable to assure timely access to funds.

Defining Disinvested Communities & Identifying a Community Engagement Area SACOG recognizes that pre-defined areas for historically disinvested communities can often leave vulnerable populations out. For that reason, EEI provides flexibility to applicants in determining the manner in which “disinvested communities” are identified in a proposal. To the extent practicable, it is encouraged that engagement areas / communities be within an area designated by one of the definitions / tools listed below. While not a requirement, aligning a proposal with one or more of these tools can provide competitive advantages for future efforts to fund implementation activities by assuring alignment with various federal or state programs.

Applicants can work with / in communities that are not designated by pre-defined terms or tools, so long as the applicant can demonstrate the community’s need for planning support through demographics, income-levels, environmental impacts, and / or other issues. Applicants should define if their community is disinvested in some capacity. The pre-defined areas and tools used to assess historically disinvested communities can be viewed on SACOG’s web map and are listed below for reference:
• Disadvantaged Communities (DACs)
• SACOG Environmental Justice Areas (EJ Areas)
• Locally defined environmental justice/disadvantaged communities etc. • CalEnviroScreen 4.0
• Justice40 Maps (e.g. areas of persistent poverty, historical disadvantaged communities, urban, rural)
Engage, Impower, Implement Guidelines 7

• Environmental Protection Agency (EPA) Justice Screening • Climate and Economic Justice Screening Tool
• Environmental Justice Block Groups
• Healthy Places Index

Eligible Applicants
Eligible applicants include the following:
• Cities, counties, and other federal aid eligible government entities in the counties of El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba (excluding the Tahoe Basin in El Dorado and Placer Counties).
• Community-based organizations (CBOs) operating in the aforementioned six-county region. For the purposes of this grant, a CBO is defined as a public or private nonprofit organization of demonstrated effectiveness that: (A) is representative of a community or significant segments of a community; and (B) provides educational or related services to individuals in the community. o Eligible CBOs that apply independently (not partnered with a government entity) will need to provide proof of financial and management capacity to administer the grant. o Eligible CBOs that demonstrate financial and management capacity are eligible to apply independently, though applicants will need to demonstrate collaboration with a city or county partner through a letter of acknowledgement.
• Tribal Governments in the counties of El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba and cities within are eligible to apply, either independently or in partnership with a community- based organization. Both federally recognized and non-federally recognized tribes can apply.

Application Types
I) Partnership Grants
City / County / Tribal Government / other government entity in partnership with a CBO Local government agencies (cities and counties), government entities (transit agencies, air districts, and other federal aid eligible recipients), and Tribal Governments in the counties of El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba are eligible to apply in partnership with a community-based organization. The CBO must be representative of and / or trusted in the disinvested community identified in your application, and capable of continuing to build trust with the identified community.

For this type of grant application, the city / county / government entity / tribe will apply as the lead applicant and list the CBO as a sub-applicant. The sub-applicant must be identified and included in the scope development process.

For projects funded under the Partnership Grant type, the lead applicant, sub-applicant, and SACOG will enter into a three-party Memorandum of Understanding (MOU) that will identify each parties’ roles and responsibilities as they relate to the proposed scope of work. The lead applicant (government entity) will be responsible for administering funds for the partnership and issuing payment to the sub-applicant, to be established in the MOU and general grant contract. The MOU will also establish the grant payment Engage, Impower, Implement Guidelines 8

process including fund-specific details, in particular for partnerships needing an up-front payment to the CBO from SACOG. The MOU will be established after selection of applicants.

Selected applicants in a partnership will be eligible to receive between $150,000 and $500,000.

II. Individual Community-based Organization Grants
CBO only; no partner applicant; requires letter of acknowledgement from City / County / other government entity
Community-based organizations (CBOs) that demonstrate fiscal and management capacity for grant oversight are eligible to apply for their own grant, independent of a government agency. For this grant type, a CBO will apply as the lead applicant. There will be up to two awards in this category for qualified applications.

CBO led applications are required to include a Letter of Acknowledgement with their application. This letter must be from the city or county that their identified disinvested community is located in. For example: if a CBO lead applicant proposes to work in the community of Knights Landing, they will need a Letter of Acknowledgement from Yolo County. Though not included as an official partner in the grant award contract, collaboration with the identified community’s city or county is a key part of the EEI process and vision to co-create projects with a community that can be supported and implemented by cities / counties / other government entities in the future.

Selected applicants that apply independently will be eligible to receive up to $80,000.

III. Individual Tribal Government Grants
Tribal Government only; partner applicant optional (either with a CBO or a city/county) Tribal governments are eligible to apply as independent lead applicants or with a CBO partner. SACOG recognizes tribal government sovereignty and will not require contractual partnership with other government entities, but encourages it where meaningful and useful.

Selected applicants applying independently or in partnership will be eligible to receive up to $500,000.

Engage, Impower, Implement Guidelines 9

Timeline
Call for applications May 24, 2024
Technical Assistance (scope development, networking, etc.) May 24 – July 12, 2024 Applications due August 9, 2024
SACOG Board approves final award list October 17, 2024
Grant & Contract execution November – January 2024
Post-award interviews, as requested November 2024
Project Launch March 2025
Project Completion Early 2027

Screening Criteria
Eligible projects must meet the following eligibility criteria to be considered for award. This shall be at the sole discretion of SACOG pending recommendations by the EEI Review Board. • Project must be located within the six-county SACOG region (El Dorado, Placer, Sacramento, Sutter, Yolo and/or Yuba counties). Projects within the Tahoe basin of El Dorado and Placer counties are not eligible.
• Only one grant application may be submitted per proposed community/area. • The application must follow the eligible scope of work requirements. • The project must be planned for completion within two (2) years of the agreement being signed.
• The project must meet requirements described in these guidelines and support the Engage, Empower, Implement program purpose.

Award Selection
SACOG staff will assemble and convene an Engage, Empower, Implement Review Board to review applications and make award recommendations. The review board will be comprised of SACOG and local city and county staff, representatives from community-based organizations, and community leaders.

SACOG will announce a call for interested participants in June, then provide informational and instructional meetings for all selected review board members. The review board will be expected to review and score applications in August 2024 over a two-to-three-week review period using the included rubric.

EEI is intended to fund a variety of innovative and community-focused projects in different locations and contexts throughout the region including rural, suburban, and urban communities. In addition to including individuals from both the public and community organizing sectors, participants on the review board should represent the diversity of places throughout the region to ensure strong representation from rural, suburban, and urban communities. The review board will recommend a list of applications for consideration that will then be taken to the SACOG Board for final approval.

Engage, Impower, Implement Guidelines 10

Project Rubric
The EEI Review Board will score eligible applications using the EEI rubric. Along with the rubric, it is an important aspect for EEI to have geographic diversity. We would like to see this program implemented across the six-counties and while the geography of an application will not be scored, the review board will be asked to consider geographic diversity of where projects are being awarded.

Reporting Requirements
The items below should be planned and budgeted for in an applicant’s scope of work:

Required Deliverables
• Final Product Deliverable (varies by applicant): the final product identified in an applicant’s scope of work (e.g. community needs assessment, policy toolkit, etc.) • Project Closeout Report: documentation of the included engagement strategies (e.g. focus groups, meetings, surveys summaries, etc.)
• Evaluation Metrics: Specific details of how an effort will be measured, including but not limited to pre- and post- engagement assessments and levels of participation. • Community Documentation of Needs and Opportunities: community engagement findings, potential next steps to address findings, and regional opportunities that can be leveraged to further identified next steps.
• Best Practices & Lessons Learned: documentation of strategies and activities that worked well, that did not work well, and why.
• Local Government Support (1): Post-project presentation to the respective City Council or Board of Supervisors sharing out lessons learned, project concepts, and other relevant information collected.
• Local Government Support (2): A letter of intent from the local government describing the commitment to seeing through the implementation of the efforts / ideas / plans that came from the engagement effort funded though EEI.

Additional Deliverables
The following items may be asked of applicants to continue to share lessons learned, highlight stories and evaluate EEI impact.
• Presentations to SACOG Committees and/or Board of Directors: up to 4 presentations • Process Interviews / Narratives: documentation of if / how the EEI process had an impact on community trust and relationship building (visual, narrative, social media, etc.) • Communication Materials: infographics, final reports, etc. that can be shared on the SACOG website and social media platforms

Engage, Empower, Implement Grant Application Guidelines Grant Administration
The following section outlines some key features for the grant administration:
• Applicants will have two years to implement and exhaust the awarded funds following programing of funds.
o If a project is seeing challenges to close out the effort within two years, the lead applicant must notify SACOG in writing six-months in advance. o SACOG staff will make all efforts to help grantees ensure the funds can be spent within two years of award. SACOG encourages applicants to reach out to SACOG staff early if projects may experience delays to discuss solutions, including potential for extensions on a case-by-case basis.
• For partnership grants, the lead city / county / tribal government / or other government entity will act as the fiscal agent and enter a three-party Memorandum of Understanding (MOU) with SACOG and the partner CBO. The MOU will identify each party’s roles and responsibilities. • CBOs (independent and partnered) can receive an advance direct payment from SACOG for up to $25,000. Remaining costs will be billed directly to the awarded applicant (city or county) as reimbursements, based on tasks in the scope of work. Reimbursements should be billed on the agreed-upon schedule between the city or county and the CBO. • For federal money, agencies will submit their request for authorization paperwork before January 31, 2025, as feasible. If more time is needed, SACOG will assist. • For cities/counties already receiving federal money, SACOG can work to consolidate federal funds if possible, with a city or county lead agency.

Disbursement of Funds
After review and selection of awardees, selected recipients will receive funds as follows based on federal aid eligibility and if they are an independent applicant or in a partnership. For federal aid eligible partnerships, the lead agency, CBO, and SACOG, or individual tribal governments, will need to enter a federal contract to receive the federal funds. The federal funds will then be programmed directly to the lead agency. The lead agency, CBO, and SACOG will also enter into an MOU that states roles and responsibilities and an agreement to provide a payment from SACOG to the CBO directly for up to $25,000 in advance funds if waiting for federal reimbursement would be a burden for the CBO partner.

For the federal awards, the grantee will follow reimbursement processes directly with Caltrans by submitting monthly to quarterly requests. For non-federal eligible and independent applications, the grantee will enter a direct contract/MOU with SACOG.

If you anticipate wanting to use the upfront payment of up to $25,000 from SACOG, please also fill out the Advance Funding Request.

COUNCIL COMMUNICATION
CC #:
3470
File #:
0203-09 & 0201-01
Title:

Church Street and Pump Station 26 Collection System Improvements Project – Professional Services Agreement and Budget Adjustment
Contact:

William Montz 916-938-0154 [email protected]

Meeting Date: 8/7/2024
Item #: 6.12.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council:

1 .

Adopt a resolution to approve a professional services agreement to Inferrera Construction Management Group, Inc. (ICM) to provide construction management services to the Church Street and Pump Station 26 Collection System Improvements Project, and authorize the City Manager to execute it.
2 .

Adopt an ordinance to approve a budget adjustment of $300,000 from available resources in the Wastewater Rehabilitation Fund for the Church Street improvements.

Church Street (Schedule A):

Pump Station 26 (Schedule B):

Combined Projects:

After two unsuccessful bids for the pipeline work in the Pump Station 26 Project in 2023, EU staff identified the option to combine the pipeline work (Schedule B) in the Pump Station 26 Project with the newly identified work in the Church Street Capacity Analysis to create a larger, more attractive bid package.

A Request for Proposals (RFP) for Construction Management Services was published on May 16, 2024 and on June 13, 2024, four proposals were submitted to the City Clerk’s office. After internal review, ICM was determined to be the top ranked proposer to provide Construction Management Services for the Church Street and Pump Station 26 Collection System Improvements Project.

FISCAL IMPACT
The total contract value of the agreement with ICM is in the amount of $642,497. Of this contract amount, $197,347 is for the Pump Station 26 portion of the work, and $445,150 is for the Church Street portion of the work.

Funding is provided by two sources. The South Placer Wastewater Authority (SPWA) is funding the Pump Station 26 work, for which the approved project funding is sufficient to pay the total cost of the work. The Wastewater Rehabilitation Fund is funding the Church Street work. The requested budget adjustment of $300,000 from available resources in the Wastewater Rehabilitation Fund will fully fund the Church Street portion of the work, bringing the total project budget to $5,660,000.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F – Invest in well-planned infrastructure and growth.

Respectfully Submitted,
William Montz, Assistant Engineer
Richard Plecker, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-279
PSA_ICM
Ordinance 6845
CEQA Exemption
RESOLUTION NO. 24-279

APPROVING A PROFESSIONAL SERVICES AGREEMENT, BY AND BETWEEN THE

CITY OF ROSEVILLE AND INFERRERA CONSTRUCTION MANAGEMENT GROUP, INC., AND AUTHORIZING THE CITY MANAGER TO EXECUTE IT

ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a professional services agreement for construction management services for the Church Street and Pump Station 26 Collection System Improvements project, by and between the City of Roseville and Inferrera Construction Management Group, Inc., has been reviewed by the City Council; and

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024]

PROFESSIONAL SERVICES AGREEMENT
Construction Management Services for the Church Street
and Pump Station 26 Collection System Improvements Project

THIS AGREEMENT is made and entered into this ___ day of ________________, 20__, by and between the City of Roseville, a municipal corporation (“CITY”), and Inferrera Construction Management Group, Inc., a California corporation (“CONSULTANT”); and

W I T N E S S E T H:

WHEREAS, CITY issued Request for Proposal #08-144 for professional services consisting of construction management services for the Church Street and Pump Station 26 Collection System Improvements Project; and
WHEREAS, CONSULTANT has prepared a response to the Request for Proposal dated June 13, 2024, which describes the scope of services to be performed by CONSULTANT, and the hourly rates for performance of such services; and
WHEREAS, CONSULTANT is qualified and experienced to provide such professional services.

NOW, THEREFORE, the parties agree as follows:

1. Services. CONSULTANT shall perform, at the direction of CITY, the scope of services as described in EXHIBIT “A,” attached hereto and incorporated herein by this reference.
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 2 2. Compensation. For its services provided hereunder, CONSULTANT shall be compensated on a time and expense basis in accordance with the budget estimate as described in EXHIBIT “B,” attached hereto and incorporated herein by this reference. Total compensation shall not exceed six hundred forty-two thousand, four hundred ninety-seven dollars ($642,497).

CONSULTANT agrees to defend and indemnify CITY if, despite the parties intent and practice, any venue, agency, or court with competent jurisdiction determines that CONSULTANT and/or any of its agents, officers, employees, volunteers, independent contractors, or subcontractors, are characterized as employee(s) of CITY. [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 3 CONSULTANT’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law. The defense and indemnity obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

4. Insurance. CONSULTANT agrees to continuously maintain, in full force and effect, the following minimum policies of insurance during the term of this Agreement.

COVERAGE LIMITS OF LIABILITY

Workers’ Compensation Statutory

Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate
Personal Injury:
$1,000,000 each occurrence
$2,000,000 aggregate

Automobile Liability $1,000,000 combined single limit

Professional Liability (errors and $1,000,000 per claim omissions) $2,000,000 aggregate

a. Form. CONSULTANT shall submit a certificate evidencing such coverage for the period covered by this Agreement in a form satisfactory to Risk Management and the City Attorney, prior to undertaking any work hereunder. Any insurance written on a claims made basis is subject to the approval of Risk Management and the City Attorney. b. Additional Insureds. CONSULTANT shall also provide a separate endorsement form or section of the policy showing CITY, its officers, agents, employees and volunteers as additional insureds for each type of coverage, except for Workers’ Compensation and Professional Liability. Such insurance shall specifically cover the contractual liability of CONSULTANT. The additional insured coverage under the CONSULTANT’s policy shall be [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 4 primary and noncontributory, as evidenced by a separate endorsement or section of the policy, and shall not seek contribution from CITY’s insurance or self-insurance. In addition, the additional insured coverage shall be at least as broad as the Insurance Services Office (“ISO”) CG 20 01 Endorsement. Any available insurance proceeds in excess of the specified minimum insurance coverage requirements and limits shall be available to the additional insureds.

Furthermore, CONSULTANT shall require its subcontractors to agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under this Agreement. Additionally, CONSULTANT shall obligate its subcontractors to comply with these same provisions with respect to any tertiary subcontractor, [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 5 regardless of tier. A copy of CITY’s indemnity and insurance provisions will be furnished to the subcontractor or tertiary subcontractor upon request.
f. Self-Insured Retentions. All self-insured retentions (“SIR”) must be disclosed to Risk Management for approval and shall not reduce the limits of liability.

5. Records. CONSULTANT and its subcontractors shall maintain all files and records relating to the services performed hereunder during the term of this Agreement and for a period of not less than one (1) year after the date of termination or expiration. Provided, however, that in the event of litigation or settlement of claims arising from the performance of [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 6 this Agreement, CONSULTANT and its subcontractors shall maintain all files and records until such litigation, appeals or claims are resolved. Duly authorized representatives of CITY shall have right of access during normal business hours and after reasonable notice to CONSULTANT’s and subcontractors’ files and records relating to the services performed hereunder and may review and copy the files and records at appropriate stages during performance of the services and during the one (1) year period following termination or expiration of this Agreement. CONSULTANT shall include this provision in its contracts with all subcontractors.

6. Time is of the Essence. Time is of the essence of this Agreement.

Pursuant to the provisions of California Labor Code Section 1773, the contracting department has identified the source, stated below, of the general prevailing rate of wages [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 7 applicable to the site to be done, for straight time, overtime, and holiday work. The holiday wage rate listed shall be applicable to all holidays recognized in the collective bargaining agreement of the particular craft, classification or type of worker concerned. These wage rates may be obtained from the State Department of Industrial Relations and/or the following website address: http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.

8. Compliance with Laws. CONSULTANT shall comply with all federal, state and local laws, ordinances and policies as may be applicable to the performance of services under this Agreement.

9. Ability to Perform. CONSULTANT agrees and represents that it has the time, ability and professional expertise to perform the services required under this Agreement.

10. Public Contracts: Conflicts of Interest. CONSULTANT’s duties and services under this Agreement shall not include preparing or assisting CITY with any portion of the CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 8 CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Agreement.

13. Assignment. CONSULTANT is employed to perform unique personal services.

CONSULTANT shall not assign this Agreement without the prior written consent of CITY.

CONSULTANT shall not employ or otherwise incur any obligation to pay other specialists or experts for services in connection with this Agreement, without prior written consent of CITY.

14. Independent Contractor. CONSULTANT, inclusive of its agents, officers, employees, volunteers, independent contractors, and subcontractors, shall act as an independent [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 9 contractor, and covenants and agrees that it will conduct itself consistent with such status, that it will neither hold itself out as, nor claim to be, an officer or employee of CITY by reason of this Agreement.

15. Representations and Warranties. CONSULTANT warrants that it has not employed or retained any company or person, other than a bona fide employee working for CONSULTANT, to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to terminate as void this Agreement, without liability, or, in its discretion, to deduct from the [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 10 Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

16. Successors in Interest. This Agreement shall be binding upon the heirs, successors, executors, administrators and assigns of the respective parties hereto.

CONSULTANT shall execute any documents necessary to effectuate such assignment.

18. Termination of Agreement. The City may terminate this Agreement without cause by giving CONSULTANT ten (10) days advance written notice from the City Manager.

CONSULTANT may terminate this Agreement without cause by giving CITY thirty (30) days [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 11 advance written notice. In the event of termination through no fault of CONSULTANT, CITY shall compensate CONSULTANT for services performed as of the date of termination, upon the release to CITY of all Material hereunder, in any and all media or formats in which such materials have been created or are maintained. CITY retains the right to receive and use any Material, notwithstanding any termination or any dispute regarding the amount to be paid.

20. Modification. This Agreement and each provision contained herein may be waived, amended, supplemented or eliminated only by mutual written agreement of the parties.

22. Notices. Any notices to parties required by this Agreement shall be delivered personally or mailed, U.S. first class postage prepaid, addressed as follows:

CITY OF ROSEVILLE CONSULTANT

Rana Moore Jeffrey Inferrera, PE
Associate Engineer President
2005 Hilltop Circle 7040 Settlers Trail
Roseville, CA 95747 Shingle Springs, CA 95682

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024] 13 APPROVED AS TO SUBSTANCE:

BY: _______________________________

RICHARD PLECKER
Environmental Utilities Director

Devin Whittington on behalf of Richard Plecker
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024]

EXHIBIT “A”
Proposal for

CONSTRUCTION MANAGEMENTAND INSPECTION SERVICES
Church Street and Pump Station 26 Collection System Improvements Project

1 Scope of Services

The following tasks describe the Scope of Services to be provided by ICM for the Project. ICM and its subconsultant Youngdahl will provide the required labor (including equipment and materials) to complete these services throughout the construction duration of the Project.

Task 1 - Construction Management Project Management

• Monthly invoicing with summary of work performed, issues identified, and table showing percent spent versus percent complete for the CM contract.

• Contractor schedule evaluation and tracking (actual vs. planned progress).

• Coordination and communications between City, Contractor, Design Consultant, and with external utility representatives.

• Coordination and communications with City inspection support staff including:

o Wastewater Utility assigned staff member who will be assigned to the project to provide sewer utility coordination related to wastewater operations, wastewater utility locates, operations and repair questions, and assistance with potholing inspection.

o Water Utility assigned staff member(s) who will be assigned to the project as needed to provide water utility coordination related to water operations, water supply for construction, locates and required repairs.

o Public information officer as needed to support and advise on public outreach efforts.

CM will attend public meetings as needed.

o Technical Services Engineer/Project Manager who will be assigned to the project part time to support efforts with traffic control, encroachment permit submittals, and other required City coordination.

Task 2 - Construction Contract Administration

• Records management. ICM will use Procore for management and tracking of submittals, RFIs, change events, and other CM data management activities on this project.

• Lead and document the weekly progress meetings.

• Coordinate, lead and document site meetings with the Contractor, Design Consultant and City staff as necessary.

• Develop and maintain equipment and labor tracking logs.

• Review of Contractor’s administrative contract execution for compliance with Contract Document requirements.

Proposal for

CONSTRUCTION MANAGEMENTAND INSPECTION SERVICES
Church Street and Pump Station 26 Collection System Improvements Project

2 • Review Contractor’s pay requests (including non-certified review of certified payroll and labor compliance) and make recommendations to City as to acceptability of request.

• Routing of Contractor’s submittals for review by Design Consultant and/or City for compliance with Contract Documents. Review baseline schedule, monthly schedule updates, and schedule of values.

• Routing of Contractor’s requests for information (RFIs) and either provide information from Contract Documents back to the Contractor or route response from Design Consultant for resolution.

• Routing of Design Consultant’s revised documents to the Contractor.

• Routing and confirmation of Contractor’s required documentation to show adherence to the California Department of Drinking Water (DDW) waivers included in the Contract Documents or as approved during the course of the project.

• Tracking and review of Contractor’s record drawing changes. ICM will verify that as- builts have been accurately updated, for work conducted during each payment cycle, prior to submitting the Contractors payment request. ICM will include a signed certification with each payment cycle, indicating that the as-builts submitted during the cycle accurately reflect the construction modifications from the design plans set.

• Communication with Contractor regarding acceptability of work.

• Coordination with the Contractor regarding testing and start-up.

• Review of Contractor’s compliance with regulatory permits and mitigation measures.

Task 3 - Change Management

• Review of submittals in support, and recommendations for resolution, of claims and disputes.

• Investigation and inspection of site conditions that differ from those described in the Contract Documents.

• Development of change order requests.

• Review and evaluation of contractor contract change order submittals.

• Coordination of approval of change orders to City prior to authorizing Contractor to perform work.

Task 4 - Field Inspection

This task includes the following services for a field inspector:

• Construction observation visits on a regular basis. We anticipate full time inspection during pipeline construction and rehabilitation, testing, potholing, and paving. We Proposal for

CONSTRUCTION MANAGEMENTAND INSPECTION SERVICES
Church Street and Pump Station 26 Collection System Improvements Project

3 anticipate part time, as needed, inspection for punchlist items. The frequency and length of observations for traffic control and surface restoration will be coordinated with the City.

• Review and inspection of Contractor’s work for compliance with Contract Documents on a daily basis.

• Review and monitoring of corrective actions taken by Contractor needed to fix work that is not in compliance with the Contract Documents.

• Completion of field inspection diaries.

• Maintaining digital labeled and logged photographic records of construction in progress.

• Notification to Contractor of non-compliance with workplace safety and health standards and, if not corrected or of a perilous nature, notification to City of non-compliance.

• Review of, but not responsible for, Contractor’s survey layouts.

Task 5 - Materials Testing Services

Youngdahl Consulting will provide field and laboratory testing services as follows:

• Provide testing services, including concrete and compaction testing.

• Provide necessary personnel to perform the testing.

• Coordinate and schedule testing services.

• Provide real time results of field testing to contractor so that the Contractor can correct and improve their work product as needed.

• Provide field test results real time in the field orally and follow up with official test results in a timely manner. Provide laboratory test results in a timely manner also. Test results to be distributed to the appropriate recipients.

• Provide final report for each test.

Task 6 - Final Completion Services

• Provide coordination, review of submittals and oversight for collection system reconnection, testing and start-up. Review of submittals will be concurrent to review by the City and the Design Consultant.

• Site inspection to determine if facilities are complete and in compliance with Contract Documents.

• Coordinate with the Contractor to ensure that required submittals including operations and maintenance manuals, warranties, bonds, lien release information and record drawing have been submitted and approved.

Proposal for

CONSTRUCTION MANAGEMENTAND INSPECTION SERVICES
Church Street and Pump Station 26 Collection System Improvements Project

4 • Coordination and scheduling of construction walk-through, and final inspection with the City, Contractor and Design Engineer.

• Preparation of punch list and inspection of punch list item corrective actions.

• Final review (in consultation with the Design Consultant) of as-built drawings made by the Contractor.

• Recommendation to City as to the release of payments and retention to Contractor.

• Preparation and submittal of a complete set of organized construction contract records.

Task 7 (Optional) - Second Inspector Second Shift

• Dependent upon Contractor's schedule and on an as-needed basis, provide second shift inspector, if day and night work is concurrent.

• This Task 7 will accomplish the same tasks as presented in Task 4.

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D001\P006\00088016.DOCX;07/09/2024]

EXHIBIT “B”
City of Roseville Church Street and Pump Station 26 Collection System Improvements Project ICM's Estimated Budget for CM and Inspection Services - Both Schedules Personnel 1 Personnel 2 Personnel 3 Personnel 4 Personnel 5 Subconsultant Regular Regular Second Shift Regular Second Shift
$210 per hour $180 per hour $200 per hour $95 per hour $200 per hour Administration Phone Task Task Kyle Drury Paul Lopez Paul Lopez Colleen Inferrera Matt LivingstonYoungdahl Fee Vehicle Computer Internet Totals Task 1 Construction Management 48,090$ 10,875 $ 362 $ 1,087$ 60,414$ Task 2 Contract Administration 48,090$ 9,120 $ 57,210 $ Task 3 Change Management 48,090$ 48,090 $
Task 4 Inspection 234,000 $ 53,600$ 10,875 $ 363 $ 1,088$ 299,926$ Task 5 Special Inspection 71,588 $ 3,579$ 75,167 $ Task 6 Final Completion Services 48,090$ 48,090 $ Task 7 (Optional) Second Inspector 53,600 $ 53,600 $ Subtotal 192,360$ 234,000$ 53,600$ 9,120$ 53,600$ 71,588$ 3,579$ 21,750$ 725 $ 2,175$ Total Both Schedules 642,497$
6/28/2024 ICM
City of Roseville Church Street and Pump Station 26 Collection System Improvements Project ICM's Estimated Budget for CM and Inspection Services - Schedule A Only Personnel 1 Personnel 2 Personnel 3 Personnel 4 Personnel 5 Subconsultant Regular Regular Second Shift Regular Second Shift
$210 per hour $180 per hour $200 per hour $95 per hour $200 per hour Administration Phone Task Task Kyle Drury Paul Lopez Paul Lopez Colleen Inferrera Matt LivingstonYoungdahl Fee Vehicle Computer Internet Totals Task 1 Construction Management 30,450$ 7,125 $ 237 $ 712$ 38,524$ Task 2 Contract Administration 30,450$ 5,700 $ 36,150 $ Task 3 Change Management 30,450$ 30,450 $
Task 4 Inspection 181,440 $ 7,125 $ 238 $ 713$ 189,516$ Task 5 Special Inspection 63,296 $ 3,165$ 66,461 $ Task 6 Final Completion Services 30,450$ 30,450 $ Task 7 (Optional) Second Inspector 53,600 $ 53,600 $ Subtotal 121,800$ 181,440$ - $ 5,700$ 53,600$ 63,296$ 3,165$ 14,250$ 475 $ 1,425$ Total Schedule A 445,151$
6/28/2024 ICM
City of Roseville Church Street and Pump Station 26 Collection System Improvements Project ICM's Estimated Budget for CM and Inspection Services - Schedule B Only Personnel 1 Personnel 2 Personnel 3 Personnel 4 Personnel 5 Subconsultant Regular Regular Second Shift Regular Second Shift
$210 per hour $180 per hour $200 per hour $95 per hour $200 per hour Administration Phone Task Task Kyle Drury Paul Lopez Paul Lopez Colleen Inferrera Matt LivingstonYoungdahl Fee Vehicle Computer Internet Totals Task 1 Construction Management 17,640$ 3,750 $ 125 $ 375$ 21,890$ Task 2 Contract Administration 17,640$ 3,420 $ 21,060 $ Task 3 Change Management 17,640$ 17,640 $
Task 4 Inspection 52,560 $ 53,600$ 3,750 $ 125 $ 375$ 110,410$ Task 5 Special Inspection 8,292 $ 415$ 8,707 $ Task 6 Final Completion Services 17,640$ 17,640 $ Task 7 (Optional) Second Inspector - $
Subtotal 70,560$ 52,560$ 53,600$ 3,420$ - $ 8,292$ 415$ 7,500$ 250 $ 750$ Total Schedule A 197,347$
6/28/2024 ICM
ICM

Inferrera Construction Management Group, Inc.

Fee Schedule
For the City of Roseville
Church Street and PS26 Collection System Project

Labor Hourly Rates by Position

Principal in Charge $250
Construction Manager $210
Construction Inspector $180
Administrator $95

Expense Rates

Vehicle per month $1,500
Field Computer, per month $50
Field Phone/Internet, per month $150
Other ODCs billed separately

Administrative Fees

Expenses 0%
Subconsultants 5%

Notes:

1. Minimum 4-hour onsite charge per site or off-site visits.

2. Overtime for work performed on Monday thru Friday will be charged 1.5 times the hourly rate for time worked over eight hours a day up to 12 hours, and 2 times the hourly rate for time worked over twelve hours.

3. Work on Saturday will be charged the 1.5 times overtime rate for the first eight hours and 2 times the hourly rate for time worked over 8 hours.

4. Work on Sunday and Holidays will be charged at the 2 times overtime rate.

5. Second shift work performed commencing after 2 p.m. or before 4 a.m. will be charged an additional $20 per hour.

6. This Rate Schedule is valid until December 31, 2025.

ORDINANCE NO. 6845

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2024-25, is hereby amended as listed on the attached budget adjustment for the Church Street Wet Weather Upgrades project.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

EXPENDITURES/EXPENSES/TRANSFERS OUT

REQUEST FOR BUDGET ADJUSTMENT
Updated 5/24/2024
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

6230

5080

84001

500341

30,000 To increase internal labor budget for the Church Street Wet Weather Upgrades Project (500341)

6230

5301

84001

500341

270,000 To increase professional services budget for the Church Street Wet Weather Upgrades Project (500341)

EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 300,000

REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

REVENUES/TRANSFERS IN TOTAL -

NET ADJUSTMENT 300,000

FUND BALANCE
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment 6230 3601 00000 000000 (300,000) Reduce available resources in the Wastewater Rehabilitation Fund
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL (300,000)

Justification for Budget Adjustment:

The Church Street Wet Weather Upgrades Project (500341) funds upgrades to the Church Street area to handle wet weather scenarios. The project includes an evaluation, alternatives analysis, design, construction and construction management services. This project requires an additional $300,000 to fully fund the construction management services, which includes internal project labor and professional services. This request brings the existing project budget from $5,360,000 to a new total budget of $5,660,000.

REQUESTER NAME & TITLE: Rana Moore, Associate Engineer FISCAL YEAR: 2024-25 PREPARER NAME & TITLE: Linda York, EU Business Analyst COUNCIL DATE (if applicable): 08/07/24 DEPARTMENT/DIVISION: EU Technical Services ORDINANCE:

Notice of Exemption

To: Placer County Clerk From: City of Roseville
Recorder’s Office Development Services Dept.
2954 Richardson Drive 311 Vernon Street
Auburn, CA 95603 Roseville, CA 95678

Project Title: Church Street and Pump Station 26 Collection System Improvements Project

Public Agency Approving Project: Roseville City Council

Agency/Individual Carrying Out Project: City of Roseville Environmental Utilities Department

Reason why this Project is Exempt: The project qualifies for a Class 4 Categorical Exemption as described in Section 15304 of the California Environmental Quality Act (CEQA) guidelines which states:

“Class 4 (Minor Alterations to Land) consists of…minor public…alterations which do not involve the removal of healthy, mature, scenic trees…”

Consequently the Class 4 Categorical Exemption applies.

Lead Agency Contact Person: Rana Moore, Roseville Department of Environmental Utilities (916- 774-5581).

Signature: Date: 4-22-2024
Jessica Lynch, Environmental Coordinator
City of Roseville

COUNCIL COMMUNICATION
CC #:
3473
File #:
0203-09
Title:

Wastewater Industrial Pretreatment Program Update and Commercial Discharger Program Development – Professional Services Agreement and Budget Adjustment Contact:

Tracie Mueller 916-746-1812 [email protected]

Meeting Date: 8/7/2024
Item #: 6.13.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council:

1 .

Approve a professional services agreement with Brown and Caldwell in the amount of $344,023 for the Industrial Pretreatment Program Update and Commercial Discharger Program Development Project, and adopt a resolution to authorize the City Manager to execute it.
2 .

Adopt an ordinance to approve a budget adjustment of $175,000 from available resources in the Wastewater Regional Rehabilitation Fund for the Wastewater Industrial Pretreatment Program Update Project.

BACKGROUND
The Wastewater Industrial Pretreatment Program Update Project was developed to focus on maintaining compliance and proper funding for oversight of commercial and industrial discharges into the regional sewer system and wastewater treatment plants as required by the United States Environmental Protection Agency (EPA) and Central Valley Regional Water Quality Control Board (CVRWQCB).

In 1984, the City developed and received approval for the Industrial Pretreatment Program (IPP) from EPA. This original IPP is still in place today.

Since the time of its inception, the IPP has
grown to 19 significant industrial users (three more are in the application process), and over 1,300 non-significant industrial and unpermitted commercial dischargers that require routine monitoring and contact to ensure compliance with federal, state, and local standards. The City provides oversight and administration of the IPP within the entire South Placer Wastewater Agency (SPWA) sewer service area. Additionally, the City provides oversight and administration of non- significant industrial and unpermitted commercial dischargers within the City’s boundary.

Environmental Utilities published a Request for Proposal (RFP #08-128) on March 5th, 2024, for this project. On April 8th, 2024, the City Clerk’s office received proposals from three (3) consultants for review and consideration. Based on evaluation criteria established in the RFP, staff determined the highest-ranking consultant to be Brown and Caldwell.

In this project the City’s Wastewater Utility will evaluate and update the existing IPP and update and/or develop rules and regulations pertaining to the Commercial Dischargers Program (CDP).

Brown and Caldwell will audit the existing program documents, local discharge limits, staffing level, program funding mechanisms, code requirement, policies and procedures, and prepare a comprehensive update to the IPP and develop a formal CDP. Brown and Caldwell will develop a cost of service analysis to recommend staffing levels, prepare municipal code updates, help obtain approval from the CVRWCQB and EPA, and provide outreach documents to help explain the necessary changes.

FISCAL IMPACT
The total contract value of the agreement with Brown and Caldwell is $344,023. The recommended budget adjustment totaling $175,000 will fully fund the project including internal City labor and the professional services. This request brings the original budget of $275,000 to a new total project budget of $450,000. This project is funded by the Wastewater Regional Rehabilitation Fund; the City will be reimbursed for approximately 35% of project costs from its partners, the South Placer Municipal Utility District and Placer County.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services

Respectfully Submitted,
Tracie Mueller, Wastewater Utility Manager
Richard Plecker, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 24-281
Professional Service Agreement
Ordinance 6847

RESOLUTION NO. 24-281

APPROVING A PROFESSIONAL SERVICES AGREEMENT, BY AND BETWEEN THE

CITY OF ROSEVILLE AND BROWN AND CALDWELL, AND AUTHORIZING THE CITY

MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE

WHEREAS, a professional services agreement for the Industrial Pretreatment Update and Commercial Discharger Program Development project, by and between the City of Roseville and Brown and Caldwell, has been reviewed by the City Council; and

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR

ATTEST:

________________________
City Clerk

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024]

PROFESSIONAL SERVICES AGREEMENT
Industrial Pretreatment Update and Commercial Discharger Program Development Project

THIS AGREEMENT is made and entered into this ___ day of ________________, 20__, by and between the City of Roseville, a municipal corporation (“CITY”), and Brown and Caldwell, a California corporation (“CONSULTANT”); and

W I T N E S S E T H:

WHEREAS, CITY issued Request for Proposal #08-128 for professional services consisting of providing a comprehensive update to the existing Industrial Pretreatment Program and Commercial Discharger Program; and
WHEREAS, CONSULTANT has prepared a response to the Request for Proposal dated April 08, 2024, which describes the scope of services to be performed by CONSULTANT, and the hourly rates for performance of such services; and
WHEREAS, CONSULTANT is qualified and experienced to provide such professional services.

NOW, THEREFORE, the parties agree as follows:

1. Services. CONSULTANT shall perform, at the direction of CITY, the scope of services as described in EXHIBIT “A,” attached hereto and incorporated herein by this reference.
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 2 2. Compensation. For its services provided hereunder, CONSULTANT shall be compensated on a time and expense basis in accordance with the budget estimate as described in EXHIBIT “B,” attached hereto and incorporated herein by this reference. Total compensation shall not exceed three hundred forty-four thousand, twenty-three dollars ($344,023).

3. Indemnification. To the fullest extent allowed by law, CONSULTANT agrees to indemnify, including the cost to defend CITY, and its officers, agents, employees and volunteers from any claims, demands, costs or liability that arise out of, or pertain to or relate to the negligence, recklessness, or willful misconduct of CONSULTANT and its agents in the performance of services under this contract, but this indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by CITY or the agents, servants, or independent contractors who are directly responsible to CITY, or arising from the active negligence of CITY. Notwithstanding any terms of this section, indemnification and defense obligations shall conform to California Civil Code Section 2782.8.

CONSULTANT agrees to defend and indemnify CITY if, despite the parties intent and practice, any venue, agency, or court with competent jurisdiction determines that CONSULTANT and/or any of its agents, officers, employees, volunteers, independent contractors, or subcontractors, are characterized as employee(s) of CITY. [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 3 CONSULTANT’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law. The defense and indemnity obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

4. Insurance. CONSULTANT agrees to continuously maintain, in full force and effect, the following minimum policies of insurance during the term of this Agreement.

COVERAGE LIMITS OF LIABILITY

Workers’ Compensation Statutory

Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate
Personal Injury:
$1,000,000 each occurrence
$2,000,000 aggregate

Automobile Liability $1,000,000 combined single limit

Professional Liability (errors and $1,000,000 per claim omissions) $2,000,000 aggregate

a. Form. CONSULTANT shall submit a certificate evidencing such coverage for the period covered by this Agreement in a form satisfactory to Risk Management and the City Attorney, prior to undertaking any work hereunder. Any insurance written on a claims made basis is subject to the approval of Risk Management and the City Attorney. b. Additional Insureds. CONSULTANT shall also provide a separate endorsement form or section of the policy showing CITY, its officers, agents, employees and volunteers as additional insureds for each type of coverage, except for Workers’ Compensation and Professional Liability. Such insurance shall specifically cover the contractual liability of CONSULTANT. The additional insured coverage under the CONSULTANT’s policy shall be [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 4 primary and noncontributory, as evidenced by a separate endorsement or section of the policy, and shall not seek contribution from CITY’s insurance or self-insurance. In addition, the additional insured coverage shall be at least as broad as the Insurance Services Office (“ISO”) CG 20 01 Endorsement. Any available insurance proceeds in excess of the specified minimum insurance coverage requirements and limits shall be available to the additional insureds.

Furthermore, the requirements for coverage and limits shall be: (1) the minimum coverage and limits specified in this Agreement; or (2) the full coverage and maximum limits of any insurance proceeds available to the named insureds, whichever is greater. Nothing in this section, however, requires CONSULTANT in the absence of litigation to reveal its Commercial General and/or Excess limits beyond where insurance limits are shown above in the Coverage Limits of Liability section.
c. Cancellation/Modification. CONSULTANT shall provide ten (10) days written notice to CITY prior to cancellation or non-payment of premium any insurance required by this Agreement.
d. Umbrella/Excess Insurance. The limits of insurance required in this Agreement may be satisfied by a combination of primary and excess insurance. Any excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY (if agreed to in a written contract) before CITY’s own insurance shall be called upon to protect it as a named insured. e. Subcontractors. CONSULTANT agrees to include in its contracts with all subcontractors the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, to the extent they apply to the scope of the subcontractor’s work. [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 5 Furthermore, CONSULTANT shall require its subcontractors to agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under this Agreement. Additionally, CONSULTANT shall obligate its subcontractors to comply with these same provisions with respect to any tertiary subcontractor, regardless of tier. A copy of CITY’s indemnity and insurance provisions will be furnished to the subcontractor or tertiary subcontractor upon request.
f. Self-Insured Retentions. All self-insured retentions (“SIR”) must be disclosed to Risk Management for approval and shall not reduce the limits of liability.

Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or CITY. CITY reserves the right to obtain a full copies of any insurance policy, with confidential information redacted. The failure to exercise this right shall not constitute a waiver of such right.
g. Waiver of Subrogation. CONSULTANT hereby agrees to waive subrogation which any insurer of CONSULTANT may acquire from CONSULTANT by virtue of the payment of any loss under a Workers Compensation, Commercial General Liability or Automobile Liability policy. All Workers Compensation, Commercial General Liability and Automobile Liability policies shall be endorsed with a waiver of subrogation in favor of CITY, its officers, agents, employees and volunteers for all worked performed by CONSULTANT, its employees, agents and subcontractors.
h. Liability/Remedies. Insurance coverage in the minimum amounts set forth herein shall not be construed to relieve CONSULTANT of liability in excess of such coverage, nor shall it preclude CITY from taking such other actions as are available to it under any other provisions of this Agreement or law.
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 6 5. Records. CONSULTANT and its subcontractors shall maintain all files and records relating to the services performed hereunder during the term of this Agreement and for a period of not less than one (1) year after the date of termination or expiration. Provided, however, that in the event of litigation or settlement of claims arising from the performance of this Agreement, CONSULTANT and its subcontractors shall maintain all files and records until such litigation, appeals or claims are resolved. Duly authorized representatives of CITY shall have right of access during normal business hours and after reasonable notice to CONSULTANT’s and subcontractors’ files and records relating to the services performed hereunder and may review and copy the files and records at appropriate stages during performance of the services and during the one (1) year period following termination or expiration of this Agreement. CONSULTANT shall include this provision in its contracts with all subcontractors.

6. Time is of the Essence. Time is of the essence of this Agreement.

CONSULTANT shall not be responsible for delays caused by circumstances beyond its reasonable control, including, but not limited to (1) strikes, lockouts, work slowdowns or stoppages, or accidents, (2) acts of God, (3) failure of CITY to furnish timely information, and (4) faulty performance or nonperformance by CITY, CITY’s independent consultants or contractors, or by governmental agencies. CONSULTANT shall not be liable for damages arising out of any such delay, nor shall the CONSULTANT be deemed to be in breach of this Agreement as a result thereof.

7. Prevailing Wages. When applicable, for purposes of this Agreement, CONSULTANT and its subcontractors shall comply with all applicable prevailing wage laws, e.g., but not limited to, California Labor Code Sections 1770 et seq. In accordance with said [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 7 Section 1775, CONSULTANT shall forfeit as a penalty to the City two hundred dollars ($200) for each calendar day or portion thereof for each worker paid less than the prevailing rates for such work or craft in which such worker is employed for any work done on-site under the Agreement by CONSULTANT or by any subcontractor in violation of the provisions of the Labor Code and in particular, Labor Code Sections 1770 to 1780, inclusive. In addition to said penalty and pursuant to said Section 1775, the difference between such stipulated prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the stipulated prevailing wage shall be paid to each worker by CONSULTANT or the applicable subcontractor.

Pursuant to the provisions of California Labor Code Section 1773, the contracting department has identified the source, stated below, of the general prevailing rate of wages applicable to the site to be done, for straight time, overtime, and holiday work. The holiday wage rate listed shall be applicable to all holidays recognized in the collective bargaining agreement of the particular craft, classification or type of worker concerned. These wage rates may be obtained from the State Department of Industrial Relations and/or the following website address: http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.

Pursuant to Labor Code Section 1773.2, general prevailing wage rates set forth above, which forms a part of this Agreement, shall be posted by CONSULTANT at a prominent place at the work site. Prevailing wage rates to be posted at the work site will be furnished by the contracting department. The possibility of wage increases is one of the elements to be considered by CONSULTANT in determining its proposal and will not under any circumstances be considered as the basis of a claim against CITY or the Agreement. [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 8 8. Compliance with Laws. CONSULTANT shall comply with all federal, state and local laws, ordinances and policies as may be applicable to the performance of services under this Agreement.

9. Ability to Perform. CONSULTANT agrees and represents that it has the time, ability and professional expertise to perform the services required under this Agreement in accordance with generally accepted engineering principles and practices in effect at the time services are rendered.

CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Agreement.

12. The Levine Act Disclosure. The Levine Act (Govt. Code, Section 84308) requires a Party (and its agent(s), if any) to a Proceeding before the City of Roseville that [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 9 involves any action or consideration related to their contract, license, permit, or other entitlement for use, to disclose any campaign contributions made to CITY elected or appointed officers totaling more than $250 within the twelve (12) months prior to the CITY decision and while a proceeding is pending, and includes certain prohibitions on contribution activity thereafter. If applicable campaign contributions have been made by CONSULTANT and/or its agent(s), CONSULTANT is responsible for compliance, including for its disclosure obligations, if any, as further described at:
https://www.roseville.ca.us/government/departments/city_clerk/transparency/levine_act.

13. Assignment. CONSULTANT is employed to perform unique personal services.

CONSULTANT shall not assign this Agreement without the prior written consent of CITY.

CONSULTANT shall not employ or otherwise incur any obligation to pay other specialists or experts for services in connection with this Agreement, without prior written consent of CITY.

14. Independent Contractor. CONSULTANT, inclusive of its agents, officers, employees, volunteers, independent contractors, and subcontractors, shall act as an independent contractor, and covenants and agrees that it will conduct itself consistent with such status, that it will neither hold itself out as, nor claim to be, an officer or employee of CITY by reason of this Agreement.

CONSULTANT and CITY agree that: (a) CONSULTANT is free from the control and direction of CITY in connection with the performance of the work; (b) CONSULTANT is providing services directly to CITY; (c) CONSULTANT has and will maintain at all relevant times a business license; (d) CONSULTANT maintains a business location that is separate from CITY; (e) CONSULTANT is customarily engaged in an independently established business of the same nature as that involved in the work performed hereunder; (f) CONSULTANT actually [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 10 contracts with other businesses to provide the same or similar services and maintains a clientele without restrictions from CITY; (g) CONSULTANT advertises and holds itself out to the public as available to provide the same or similar services; (h) CONSULTANT provides its own tools, vehicles, and equipment to perform the services; (i) CONSULTANT has negotiated its own rates; (j) CONSULTANT set its own hours and location of work in accomplishing CITY’s on- call needs; and (k) CONSULTANT has the right to control the manner and means of accomplishing the result desired and exercises its own expert independent judgement.

15. Representations and Warranties. CONSULTANT warrants that it has not employed or retained any company or person, other than a bona fide employee working for CONSULTANT, to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to terminate as void this Agreement, without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

16. Successors in Interest. This Agreement shall be binding upon the heirs, successors, executors, administrators and assigns of the respective parties hereto.

17. Copyright, Ownership and Use of Materials. All tangible material (“Material”) created or delivered pursuant to this Agreement is considered a work made for hire under the Copyright Act. To the extent such Material does not qualify as a work made for hire, CONSULTANT hereby assigns to CITY all right, title, and interest, including but not limited to all copyrights, in all Material created by CONSULTANT in its performance under this [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 11 Agreement. Material constitutes the scope of work outlined in Exhibit A and attached hereto, and all written and other tangible expressions, including but not limited to, drawings (including computer aided drawings), papers, documents, reports, surveys, renderings, exhibits, sketches, maps, models, prints, paintings or photographs, in any and all media or formats in which such materials have been created or are maintained. All Material furnished by CONSULTANT is, and shall remain, the property of CITY after payment to CONSULTANT.

CONSULTANT shall execute any documents necessary to effectuate such assignment.

18. Termination of Agreement. The City may terminate this Agreement without cause by giving CONSULTANT ten (10) days advance written notice from the City Manager.

CONSULTANT may terminate this Agreement without cause by giving CITY thirty (30) days advance written notice. In the event of termination through no fault of CONSULTANT, CITY shall compensate CONSULTANT for services performed as of the date of termination, upon the release to CITY of all Material hereunder, in any and all media or formats in which such materials have been created or are maintained. CITY retains the right to receive and use any Material, notwithstanding any termination or any dispute regarding the amount to be paid.

19. Attorney’s Fees; Venue; Governing Law. If either party commences any legal action against the other party arising out of this Agreement or the performance hereof, the prevailing party in such action shall be entitled to recover its reasonable litigation expenses, including but not limited to, court costs, expert witness fees, discovery expenses, and attorney’s [\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024] 12 fees. Any action arising out of this Agreement shall be brought in Placer County, California, regardless of where else venue may lie. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

20. Modification. This Agreement and each provision contained herein may be waived, amended, supplemented or eliminated only by mutual written agreement of the parties.

22. Notices. Any notices to parties required by this Agreement shall be delivered personally or mailed, U.S. first class postage prepaid, addressed as follows:

CITY OF ROSEVILLE CONSULTANT

Tracie Mueller Mike Harrison
Wastewater Utility Manager Principal-in-Charge
1800 Booth Road 11020 White Rock Road, Suite 200
Roseville, CA 95747 Rancho Cordova, CA 95670

Either party may amend its address for notice by giving notice to the other party in writing.

23. Integrated Agreement. This is an integrated agreement and contains all of the terms, considerations, understanding and promises of the parties. It shall be read as a whole.

(SIGNATURES ON NEXT PAGE)
Devin Whittington on behalf of Richard Plecker
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024]

EXHIBIT “A”

Brown and Caldwell City of Roseville IPP and CDP Development Project: 1

Attachment A

Industrial Pretreatment Update and
Commercial Discharger Program
Development Scope of Services
Background
The City owns and operates two wastewater treatment plants (WWTPs), Dry Creek and Pleasant Grove, which serve the City of Roseville, Granite Bay, Rocklin, Loomis, Penryn, Newcastle, portions of Placer County, and the South Placer Municipal Utility District. Jointly, this is all considered the South Placer Wastewater Auth ority (SPWA), in which the City implements the approved pretreatment program. The City’s industrial pretreatment program (IPP) has grown significantly since it was first approved in 1984 and now permits 19 significant industrial users (SIUs) and approximately 1,300 commercial users. There have been limited to no updates to the program since its inception and the City is seeking a comprehensive update to the existing IPP and commercial discharger program (CDP).

Scope of Services
Brown and Caldwell will provide the following described services up to the limit of the Budget.

Phase 1: Project Management
Project management shall be provided for an anticipated 19-month project duration and will include the following:

General Project Management: BC will manage and coordinate efforts of the project team, assign staff, delegate responsibilities, review work progress, monitor budget and schedule, prepare invoices, implement internal quality assurance and quality control (QA/QC) procedures prior to issuance of deliverables, and otherwise direct the progress for each work task. BC shall develop a project management plan (PMP) that will include the plan for quality management. BC PM will maintain a decision log and a risk register as part of this task.

Monthly Invoice and Status Reports: BC will prepare a status report with the monthly invoice. This report will include:
• Completed tasks this period
• Planned/execute task completion for next period
• Schedule updates
• Notification of any potential scope changes
• Cost benefit analysis including percent spent compared to the budget and forecast possible overages Deliverables
• Up to 19 monthly progress reports
• Bi-weekly progress meetings up to 30 minutes with the BC Project Manager • Meeting minutes and action item log
Assumptions
• 19 months of project management

Brown and Caldwell City of Roseville IPP and CDP Development Project : 2

• All deliverables will be provided in electronic format Phase 2: IPP and CDP Evaluation
This task will include a comprehensive evaluation of the IPP and CDP documents described hereafter.

Task 2.1: Program Documentation Evaluation
This task will include reviewing and evaluating the documents provided as part of this Request for Proposal (RFP). This includes review and evaluation of the following:
• Partner’s Joint Powers Agreement
• Approved Pretreatment Program for the U.S. EPA
• IPP Implementation Procedures Manual
o Permit Application Templates
o Permit Templates
o Inspection Forms
o FOG Program Documents
• Enforcement Response Plan
• Roseville Municipal Code
• Placer County Municipal Code
• SPMUD Municipal Code
This will include a review and comparing the documents to the federal pretreatment requirements at 40 CFR Part 403.

Additionally, BC will utilize tools to evaluate these documents consistently and systematically such as the U.S. EPA’s Legal Authority Checklist, U.S. EPA’s guidance manuals including the 1989 Guidance for Developing Control Authority Enforcement Response Plans and the 1994 Guidance Manual for Multijurisdictional Pretreatment Programs.

Additionally, BC will utilize various local, state, and regional guidance on CDP management.

Deliverables
• RFP of requested information
• One Workshop with up to three BC staff
• One draft comprehensive Technical Memorandum of findings and recommendations for Task 2.1 – 2.2 • Final comprehensive Technical Memorandum of findings and recommendations for Ta sk 2.1 – 2.2 Assumptions
• The fee and schedule are based on BC being provided editable versions (e.g., Microsoft Word) documents within the RFP within ten business days of notice to proceed or executed contract. • BC understands some of these documents are not available in an editable format and will require word processing support, which is represented in the fee and schedule • This task will include an in-person interview with City staff for up to three BC staff conducted in conjunction with in-person interviews detailed in Task 2.3
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The documents and information provided by the City will not be reviewed by BC for accuracy or quality but will be updated based on the results of this Project, remaining existing information will not be reviewed and will be used as provided.
• The schedule assumes a four-week review period for the City. • Review and updates are limited to the documentation listed in the RFP. • All deliverables will be provided in electronic format (e.g., Microsoft Word, Microsoft Excel, and/or pdf format).

Task 2.2. Local Limits Evaluation
BC will evaluate local limits for both Dry Creek and Pleasant Grove WWTPs and will complete the following as part of this task:

Brown and Caldwell City of Roseville IPP and CDP Development Project : 3

• Evaluate existing local limits in accordance with the 2004 U.S. EPA Local Limits Development Guidance:
o Evaluate existing Maximum Allowable Headworks Loadings (MAHLs) compared to WWTP influent loadings o Population trends
o Industrial User (IU) inventory
o IU flow trends
o WWTP Compliance History
o Evaluate changes to the conditions or limiting criteria for which the existing local limits were calculated (e.g., changes in the NPDES permit or water quality standards) • Evaluate list of pollutants of concern (POCs), together with results of data, to assess if new POCs need a local limit.

If new local limits need to be developed or existing local limits need to be revised based on the result of work completed in this phase of work, development of local limits will be performed by BC in Task 3.2. If local limits do not need updating, BC will develop a local limits evaluation technical memorandum. This task may require additional sampling and analysis if there are gaps in historical sampling data.

BC will evaluate the impacts the Western Placer Waste Management Authority (WPWMA) landfill leachate has on ultraviolet (UV) disinfection. BC will evaluate historical data, including daily flow, instantaneous flow (if available), and UV transmittance. While there is no precedent in the United States for UV transmittance and/or organic acids local limits, BC has experience with regulating landfill leachate flow and flow rates. BC will est imate maximum daily flows and instantaneous flowrates and work with the City and the WPWMA landfill to discuss onsite storage.

Deliverables
• Data Needs Request
• Sampling and Analysis Plan (SAP)
• Workshop to review SAP with up to three BC staff
• One draft of the portion that will be included in Technical Memorandum detailed in Task 2.1 • Final Technical Memorandum detailed in Task 2.1
• One draft UV Disinfection Leachate Inhibition Technical Memorandum • One Final UV Disinfection Leachate Inhibition Technical Memorandum Assumptions
• If additional sampling is required, the City will conduct all sampling • The City will be responsible for the cost of laboratory analysis • The City will provide historical sampling data in an electronic data deliverable (EDD) format (e.g., Microsoft Excel file)
• Manual data entry from pdf formatted files will increase the level of effort and is not currently included in this budget
• The documents and information provided by the City will not be reviewed by BC for accuracy or quality and will be used as provided.
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments
• The schedule assumes a four-week review period for the City • All deliverables will be provided in electronic format Task 2.3: Staffing Level Evaluation
BC will interview staff to understand workflows, responsibilities, and current staffing levels. Interviews will be conducted in-person, and BC will spend time with staff understanding their current role and responsibilities , organization structure, and workflows. The workflows will be segmented into the following functional groups:
• Technical Assistance: Technical assistance will include tasks such as permit writing, enforcement, industrial waste surveys, and self-monitoring reports and data review.

Brown and Caldwell City of Roseville IPP and CDP Development Project : 4

• Industrial Monitoring: Industrial Monitoring will include tasks such as field sampling and inspections. • FOG Program Monitoring: FOG Program Monitoring will include task such as inspections and general program management.
• Laboratory Analysis: Laboratory analysis will determine if sample analysis is conducted in-house, sent to a contract laboratory, or a hybrid of both.
• Administrative: Administrative includes management support, communication with industrial users, data management, and public participation.
• Staffing Qualifications: BC will utilize the 1983 U.S. EPA Procedures Manual for Reviewing a POTW Pretreatment Program Submission and its guidance on staffing levels. Existing staffing levels will be documented in the technical memorandum along with any recommendations for changes to the existing structure and staffing levels.

Deliverables
• One workshop with up to three BC staff
• One draft Technical Memorandum combined with Task 2.4 • Final Technical Memorandum combined with Task 2.4
Assumptions
• BC will provide services up to the limit of the Task budget. • Up to six staff interviews will be conducted by up to three BC staff and will be conducted in-person for up to one hour.

Task 2.4: Program Funding Mechanism Evaluation
BC will review historical budgets, actual costs, and the current fiscal year budget to understand the baseline funding required for implementation of the IPP, CDP and FOG Program. This will include an annualized itemization of labor costs (salaries and benefits), annualized capital costs (if applicable), operation and maintenance costs (vehicles, samplers, supplies, travel, lab fees, etc.), overhead (rent, phones, computer usage), debt service (if applicable), and other applicable costs (consultants, BC will also forecast future funding needs based on potential changes in staffing, equipment, program needs, and trends in historical funding.

BC will also evaluate the current funding mechanisms used to capture the cost of program implementation. This will include a historical itemization of revenue generation. BC will develop a financial statement that show s annual expenses and revenues for up to three years historically and future funding needs. BC will develop recommendations for cost recovery to fully funding the programs, which may include permit fees, sampling and analysis fees, inspection fees, etc.

Deliverables
• One draft Technical Memorandum detailed in Task 2.3
• Final Technical Memorandum detailed in Task 2.3
Assumptions
• The City will provide up to three years of historical budgets, expenditure, and revenues • The City will provide the current fiscal year budget
• Budgets, expenditures, and revenue documentation will be provided within one month of notice to proceed or contract execution
• This task does not include evaluating and/or updating the IU capacity fees, volumetric wastewater discharge fees, or high-strength wastewater discharge fees
• The documents and information provided by the City will not be reviewed by BC for accuracy or quality and will be used as provided.
• All deliverables will be provided in electronic format Phase 3: IPP Comprehensive Update
This task will include a comprehensive update of IPP findings and required/recommended update based on the completion of Tasks 2.1 – 2.4.

Task 3.1: IPP Program Documentation Update

Brown and Caldwell City of Roseville IPP and CDP Development Project : 5

This task will include updating the documents listed below, as applicable:
• Partner’s Joint Powers Agreement
• Approved Pretreatment Program for the U.S. EPA
• IPP Implementation Procedures Manual
o Permit Application Templates
o Permit Templates
o Inspection Forms
• Enforcement Response Plan
• Roseville Municipal Code
Recommendations will also be provided for updates to the following:
• Placer County Municipal Code
• SPMUD Municipal Code
The updates made will be based on the completion of Task 2. Upon acceptance of the TM s described in Task 2, BC will move forward with making the necessary updates to the IPP documents. Updates will be made in track changes in Microsoft Word file format.

Deliverables
• One draft of the updates to program documents
• Final updates to program documents
Assumptions
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City. • The documents and information provided by the City will not be reviewed by BC for accuracy or quality but will be updated based on the results of this Project, remaining existing information will not be reviewed and will be used as provided.
• All deliverables will be provided in electronic format Task 3.2: Local Limits Development
BC will develop Maximum Allowable Headworks Loadings (MAHLs), where applicable, for the following environmental criterion:
• Acute and chronic water quality standards
• NPDES permit limits
• Reuse standards (if applicable)
• Sludge/Biosolids treatment and end uses and/or sludge disposal and landfilling (if applicable) • Treatment plant design criteria and process inhibition • Protection of treatment works, collection system, and workers BC will need sampling data for domestic/commercial background contributions/loadings. Additional sampling may be required for this, and if so, BC will develop a SAP. BC will calculate the Maximum Allowable Industrial Loading (MAIL) for each POC and industrial allocations identified in Task 2.2, which can be mass-based or concentration-based. BC will work with the City to determine the allocation method for local limits. Local limits may be uniformly or non -uniformly allocated to industrial users.

Deliverables
• SAP
• One draft Local Limits Development Technical Memorandum • Final Local Limits Development Technical Memorandum
Assumptions

Brown and Caldwell City of Roseville IPP and CDP Development Project : 6

• If additional sampling is required, the City will conduct all sampling • The City will be responsible for the cost of laboratory analysis. • The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City. • This task will receive a separate technical memorandum as it may need to be submitted to the Regional Water Board for review and approval.
• All deliverables will be provided in electronic format Task 3.3: IPP Staffing Level Update
Upon acceptance of the TM described in Task 2.3, BC will provide an updated staffing plan based on the findings, requirements, and recommendations from Task 2.3. BC will utilize the 1983 U.S. EPA Procedures Manual for Reviewing a POTW Pretreatment Program Submission and its guidance on staffing levels.

Deliverables
• One draft IPP Staffing Technical Memorandum
• Final IPP Staffing Technical Memorandum
Assumptions
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City. • All deliverables will be provided in electronic format Task 3.4: IPP Program Funding Mechanism Update
Upon acceptance of the TM described in Task 2.1, BC will develop a financial statement that shows annual expenses and revenues for up to three years historically and future funding needs. BC will develop the final agreed upon strategy for cost recovery to fully fund the IPP.

Deliverables
• One draft IPP Program Funding Technical Memorandum
• Final IPP Program Funding Technical Memorandum
Assumptions
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City. • All deliverables will be provided in electronic format Phase 4: Comprehensive CDP Development
BC understands that while the City implements a robust CDP, this program does not have its own programmatic regulatory and implementation framework. BC will work with the City to develop these in order for the program to have the necessary legal authority and implementation strategies laid out. The subtask s hereafter describe the scope of work.

Task 4.1: CDP Program Documentation Development
This task will include the updates to the Partner’s Joint Powers Agreement and development of the following documents:
• CDP Implementation Procedures Manual
• CDP Enforcement Response Plan
• Municipal Code
The documents made will be based on the completion of Task 2.1. Upon acceptance of the TM described in Task 2.1, BC will move forward with developing the CDP documents.

Brown and Caldwell City of Roseville IPP and CDP Development Project : 7

Deliverables
• One draft CDP program documents based upon all findings and recommendations from Task 2.1, 2.3, and 2.4 • Final CDP program documents based upon all findings and recommendations from Task 2.1, 2.3, and 2.4 Assumptions
• The City will provide all files in a Microsoft Word file format • The documents and information provided by the City will not be reviewed by BC for accuracy or quality but will be updated based on the results of this Project, remaining existing information will not be reviewed and will be used as provided.
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City.

Task 4.2: CDP Staffing Level Update
Upon acceptance of the TM described in Task 2.3, BC will provide an updated staffing plan based on the findings, requirements, and recommendations from Task 2.3. BC will utilize the information provided from Task 2.3.

Deliverables
• One draft CDP Staffing Level Technical Memorandum
• Final CDP Staffing Level Technical Memorandum
Assumptions
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City.

Task 4.3: IPP Program Funding Mechanism Development
Upon acceptance of the TM described in Task 2.3, BC will develop a financial statement that shows annual expenses and revenues for up to three years historically and future funding needs. BC will develop the final agreed upon strategy for cost recovery based on fully funding the CDP.

Deliverables
• One draft CDP Funding Mechanism Technical Memorandum
• Final CDP Funding Mechanism Technical Memorandum
Assumptions
• The City will review and provide one set of consolidated comments in Microsoft Word utilizing track changes and comments.
• The schedule assumes a four-week review period for the City.

Phase 5: Adoption and Approval
BC understands that the work completed in Tasks 3 and 4 will include updates to codes, local limits, enforcement response plans, implementation manuals, and many other documents. Many of these updated and newly developed documents will require approval by the Regional Board and adoption by City Council. Additionally, support from the Partnering agencies will also be required. This task will include supporting the City with a workshop with the Partnering agencies, council adoption and regional board approval.

Deliverables
• Slide deck for presentation to Partners, City Management, and Regional Board • Final documents from Tasks 2 and 3 required for approval/adoption Assumptions
• BC has included 4 months of time in the schedule for adoption and approval • PowerPoint presentation (ppt) file will be provided by BC • City to provide hard copies as required

Brown and Caldwell City of Roseville IPP and CDP Development Project : 8

• BC will provide services to the limit of the task budget Phase 6: Optional In-Person Meetings
BC will perform in-person meetings and workshops with the following:
- City’s Public Utility Commission (PUC)
- EU Department
- City Council
- SPMUD Board Meeting
- Placer County Board of Supervisors
- Chamber of Commerce
- Up to one additional meeting that will be identified in collaboration with the City and BC This task will include time for one BC staff and include travel costs for up to 8 trips to include 2 nights per trip.

Deliverables
• Meeting minutes and agendas (if required)
Phase 7: Unallocated Funding
BC will work with the City to develop a scope, fee, and schedule for additional tasks identified during this project. Upon acceptance by the City of the scope, fee, and scheduled and notice to proceed, BC will begin execution of these tasks.

These tasks will not exceed $28,000. If tasks do exceed $28,000, a contract amendment will be required.

Assumptions
• Client will provide written notice-to-process for optional tasks

[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D025\P005\00087940.DOCX;07/02/2024]

EXHIBIT “B”

Brown and Caldwell City of Roseville IPP and CDP Development Project : 9

Proposed Schedule and Fee

BC will perform the work on a time-and-materials basis with a 3.20 labor multiplier, for a limiting fee not to exceed $344,023 which includes $62,916 of optional tasks. Requested work that exceeds this budget will require an amendment.

A 4% increase on labor rates is included for work conducted after December 31, 2024.

Table 1 // Project Schedule
Task
Jun
‘24
Jul
‘24
Aug
‘24
Sep
‘24
Oct
‘24
Nov
‘24
Dec
‘24
Jan
‘25
Feb
‘25
Mar
‘25
Apr
‘25
May
‘25
Jun
‘25
Jul
‘25
Aug
‘25
Sep
’25
Oct
‘25
Nov
‘25
Dec
‘25
Task 1: Project
Management
Task 2: IPP
and CDP
Evaluation

Task 3:

Comprehensive
IPP Update

Task 4:

Comprehensive
CDP
Development

Task 5:

Adoption and
Approval

Task 6:

Optional Tasks
QA/QC

Brown and Caldwell City of Roseville IPP and CDP Development Project: 10

Exhibit B // Estimated Project Cost
Exhibit B presents the estimated hours by task and the estimated other direct charges.

Joshua
Balentine
Esther
Okamura
Lindsay
Surio
Mike
Harrison
Anna
Holdosh
Forrest
Lindsey
Laurel
Rognstad
Dawn
Schock
Adam
Festger
Kevin
Torrens Airfare Business &
Travel Meals Lodging Rental Car
Phase Phase Description Total Labor
Hours
Total Labor
Effort Total ODCs Total Expense
Cost
Total Expense
Effort Total Effort
$258.46 $134.91 $112.29 $349.60 $115.62 $132.32 $164.80 $146.05 $276.80 $335.90 100 Project Management 60 60 25 8 0 0 0 0 0 0 153 29,960 0 0 0 0 0 0 0 29,960 **** Default 60 60 25 8 0 0 0 0 0 0 153 29,960 0 0 0 0 0 0 0 29,960 Leave Blank and Protected
200 IPP & CDP Evaluation 96 0 0 0 100 252 316 24 12 12 812 133,380 0 0 0 0 0 0 0 133,380 **** Default 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
001 Program Documentation 40 0 0 0 60 160 160 20 0 0 440 67,736 0 0 0 0 0 0 0 67,736 002 Local Limits 24 0 0 0 40 60 60 0 12 12 208 36,007 0 0 0 0 0 0 0 36,007 003 Staffing Level 16 0 0 0 0 16 48 4 0 0 84 14,908 0 0 0 0 0 0 0 14,908 004 Program Funding Mechanisms 16 0 0 0 0 16 48 0 0 0 80 14,729 0 0 0 0 0 0 0 14,729 Leave Blank and Protected
300 Comprehensive IPP Update 26 0 0 0 54 88 176 12 0 0 356 57,310 0 0 0 0 0 0 0 57,310 **** Default 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
001 Program Documentation 8 0 0 0 0 40 80 4 0 0 132 21,704 0 0 0 0 0 0 0 21,704 002 Local Limits 10 0 0 0 48 48 60 4 0 0 170 25,956 0 0 0 0 0 0 0 25,956 003 Staffing Level 4 0 0 0 0 0 12 4 0 0 20 3,739 0 0 0 0 0 0 0 3,739 004 Program Funding Mechanisms 4 0 0 0 6 0 24 0 0 0 34 5,910 0 0 0 0 0 0 0 5,910 Leave Blank and Protected
400 Comprehensive CDP Development 24 0 0 0 40 148 16 8 0 0 236 35,210 0 0 0 0 0 0 0 35,210 **** Default 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
001 Program Documentation 8 0 0 0 40 100 16 8 0 0 172 24,303 0 0 0 0 0 0 0 24,303 002 Staffing Levels 8 0 0 0 0 24 0 0 0 0 32 5,453 0 0 0 0 0 0 0 5,453 003 Program Funding Mechanisms 8 0 0 0 0 24 0 0 0 0 32 5,453 0 0 0 0 0 0 0 5,453 Leave Blank and Protected
500 Approval and Adoption Support 36 0 0 0 0 36 36 0 0 0 108 20,801 0 0 0 0 0 0 0 20,801 **** Default 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
001 Partner Agencies 12 0 0 0 0 12 12 0 0 0 36 6,934 0 0 0 0 0 0 0 6,934 002 State/EPA 12 0 0 0 0 12 12 0 0 0 36 6,934 0 0 0 0 0 0 0 6,934 003 Industrial/Commercial Users 12 0 0 0 0 12 12 0 0 0 36 6,934 0 0 0 0 0 0 0 6,934 Leave Blank and Protected
600 Optional Tasks 60 0 0 0 0 0 40 0 0 0 100 22,100 4,800 1,776 4,800 1,440 12,816 12,816 12,816 34,916 **** Default 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
001 Optional In-Person Meetings 60 0 0 0 0 0 40 0 0 0 100 22,100 4,800 1,776 4,800 1,440 12,816 12,816 12,816 34,916 Leave Blank and Protected
700 Unallocated Budget 35 0 0 0 50 36 51 0 0 0 172 28,000 0 0 0 0 0 0 0 28,000 **** Default 35 0 0 0 50 36 51 0 0 0 172 28,000 0 0 0 0 0 0 0 28,000 Leave Blank and Protected
800 ODCs 0 0 0 0 0 0 0 0 0 0 0 0 1,800 666 1,800 180 4,446 4,446 4,446 4,446 **** Default 0 0 0 0 0 0 0 0 0 0 0 0 1,800 666 1,800 180 4,446 4,446 4,446 4,446 Leave Blank and Protected
GRAND TOTAL 337 60 25 8 244 560 635 44 12 12 1,937 326,761 6,600 2,442 6,600 1,620 17,262 17,262 17,267 344,023 Hours and Dollars are rounded to nearest whole number. To display decimals, change the format of the cells.

ORDINANCE NO. 6847

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1 . The City of Roseville Annual Budget, Fiscal Year 2024 -25, is hereby amended as listed on the attached budget adjustment for the Wastewater Industrial Pretreatment Program Update and Commercial Discharge Program Development project.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

EXPENDITURES/EXPENSES/TRANSFERS OUT

REQUEST FOR BUDGET ADJUSTMENT
Updated 5/24/2024
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

6231

5301

84001

500342

94,023 To increase professional services budget for Wastewater Industrial Pretreatment Program Update (500342)

6231

5080

84001

500342

80,977 To increase internal labor budget for Wastewater Industrial Pretreatment Program Update (500342)

EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 175,000

REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

REVENUES/TRANSFERS IN TOTAL -

NET ADJUSTMENT 175,000

FUND BALANCE
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

6231

3601

00000

000000

(175,000) Reduce available resources in the Wastewater Regional Rehabilitation Fund
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL (175,000)

Justification for Budget Adjustment:

The Wastewater Industrial Pretreatment Program Update (500342) focuses on maintaining compliance and proper funding for oversight of commercial and industrial discharges as required by the EPA. This project requires an additional $175,000 to fully fund this effort whic h includes internal project labor and professional services. This request brings the orginal budget of $275,000 to a new total project budget of $450,000.

Since this is a regional wastewater project, the City will be reimbursed approximately 35% of project costs from its partners, the South Placer Municipal Utility District and Placer County.

REQUESTER NAME & TITLE: Tracie Mueller, Wastewater Utility Manager FISCAL YEAR: 2024-25 PREPARER NAME & TITLE: Linda York, EU Business Analyst COUNCIL DATE (if applicable): 08/07/24 DEPARTMENT/DIVISION: EUD Wastewater Utility ORDINANCE:

COUNCIL COMMUNICATION
CC #:
3463
File #:
0102 & 0201-01
Title:

Council Discretionary Funds - Budget Adjustment
Contact:

Heather Blanco 916-746-1171 [email protected]

Meeting Date: 8/7/2024
Item #: 6.14.

RECOMMENDATION TO COUNCIL
Recommend that the City Council adopt an ordinance approving a budget adjustment in the amount of $3,822 to carry forward unappropriated FY2023-24 Discretionary Funds for use in FY2024-25.

BACKGROUND
The Citizens' Benefit Fund was established in 1993 with the net proceeds from the sale of the Roseville Hospital. The City Council may, after receiving the recommendation of the Roseville Grants Advisory Commissioner, annually appropriate up to 90 percent of the annual earnings of the Citizens' Benefit Fund for the purpose of improving the quality of life for the citizens of the City of Roseville. The City Council, without the recommendation of the Roseville Grants Advisory Commission, may annually appropriate a minor amount up to $15,000 of the annual earnings for the purpose of improving the quality of life in Roseville.

The City's fiscal year ended on June 30, 2024, at which time the balance was $3,822.

Per Section 4.06.040 of the Roseville Municipal Code, the unappropriated amount will be carried forward to subsequent fiscal years. Doing so would allow the Council greater flexibility on discretionary requests received in FY2024-25. Carrying forward the unspent $3,822 will increase the Council Discretionary Funds for FY2024-25 from $15,000 to $18,822. The method to process the carry-over is the standard budget adjustment request form.

FISCAL IMPACT
There is no fiscal impact to the City's General Fund. Annually, the Assistant City manager/Chief Financial Officer allocates $15,000 of the annual earning on the Citizens' Benefit Fund per section

4.06.040 in the Municipal Code and includes it in the annual budget along with the Citizens' Benefit Fund resources available for appropriation each year. These earning are restricted for the purpose of improving the quality of life for Roseville residents and appropriated by the City Council.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. A budget adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Deliver exceptional city services

Respectfully Submitted,
Heather Blanco, Executive Assistant
Carmen Avalos, City Clerk

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6843
ORDINANCE NO. 6843

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2024-25, is hereby amended as listed on the attached budget adjustment to carry forward unappropriated City Council Discretionary Funds for use in Fiscal Year 2024-25.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

EXPENDITURES/EXPENSES/TRANSFERS OUT

REQUEST FOR BUDGET ADJUSTMENT
Updated 5/24/2024
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment 3901 5570 54091 3,822 Council Discretionary Funds FY24 to FY25 balance carry forward - Function-30504

EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 3,822

REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

REVENUES/TRANSFERS IN TOTAL -

NET ADJUSTMENT 3,822

FUND BALANCE
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment 3901 3601 00000 000000 (3,822) Decrease Citizens Benefit Fund balance 3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL (3,822)

Justification for Budget Adjustment:

Per Roseville Municipal Code - Section 4.060.040, City Council has the authority to carry forward any unappropriated Citizens Benefit Fund Council Discretionary Funds from one fiscal year to the next. City Council action will be taken on 8/7/2024 to request the carry forward of $3,822 from FY2024 to FY2025, which will increase the Council's Discretionary Funds for FY2025 to $18,822 allowing the Council greater flexibility on discretionary requests received in FY2025.

REQUESTER NAME & TITLE: Heather Blanco, Executive Assistant FISCAL YEAR: 2024-25 PREPARER NAME & TITLE: Heather Blanco, Executive Assistant COUNCIL DATE (if applicable): 08/07/24 DEPARTMENT/DIVISION: City Manager ORDINANCE:

COUNCIL COMMUNICATION
CC #:
3468
File #:
0704 & 0201-01
Title:

Rex Fortune Adventure Club Facility Project - Budget Adjustment Contact:

Rob Nakamura 916-774-5135 [email protected]

Meeting Date: 8/7/2024
Item #: 6.15.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt an ordinance to approve a $114,000 budget adjustment for the Adventure Club Facility - Rex Fortune project with funds appropriated from available resources in the Youth Development Fund, to complete the installation of the Rex Fortune Adventure Club Modular Facility.

BACKGROUND
On September 7, 2022, City Council adopted an ordinance to approve a budget adjustment and interfund loan to purchase and install the Rex Fortune Adventure Club modular building in the amount of $637,500. Although the building was purchased in December of 2022, the installation was delayed based on school and program enrollment numbers as well as a new requirement of Division of State Architect’s (DSA) permitting and inspection that would be required for this project and all future City building installations on school campuses. Additionally, the site plan needed an adjustment to the lot line between the school district campus and the adjacent City park to accommodate the footprint of the Adventure Club modular facility. The additional expense for the lot line adjustment and to move utility lines and complete grading and asphalt changes is $114,000, increasing the total project budget to $751,500. The building is expected to be completed and open for business for the 2024-25 school year.

FISCAL IMPACT
The recommended budget adjustment will increase the Adventure Club Facility - Rex Fortune Project budget by $114,000, bringing the total project budget to $751,500. There are available resources in the Youth Development Fund for this project.

ENVIRONMENTAL REVIEW
The proposed projects involve the construction of a minor additional structure on existing school grounds, and is categorically exempt from CEQA as a Class 14 Exemption (State CEQA Guidelines 15314). The Exemption has been prepared and no further CEQA action is required .

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C – Maintain a safe and healthy community
Goal D – Enhance economic vitality
Goal E – Deliver exceptional city services
Goal F – Invest in well-planned infrastructure and growth

Respectfully Submitted,
Rob Nakamura, Recreation Superintendent
Jill Geller, Parks, Recreation & Libraries Director

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6844
CEQA Exemption
ORDINANCE NO. 6844

ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25

BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY

EFFECTIVE AS AN APPROPRIATION MEASURE

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2024-25, is hereby amended as listed on the attached budget adjustment for the Rex Fortune Adventure Club Facility project.

SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.

PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2024, by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

EXPENDITURES/EXPENSES/TRANSFERS OUT

REQUEST FOR BUDGET ADJUSTMENT
Updated 5/24/2024
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

6591

6587

84001

500312

114,000 Increase capital outlay expenditure budget - Adventure Club Facility - Rex Fortune (Project 500312)

EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 114,000

REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment

REVENUES/TRANSFERS IN TOTAL -

NET ADJUSTMENT 114,000

FUND BALANCE
ACCOUNT STRING BUDGET ($) DESCRIPTION Fund Account Center Project Adjustment 6591 3601 00000 000000 (114,000) Reduce Youth Development Fund Balance 3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL (114,000)

Justification for Budget Adjustment:

The Parks, Recreation & Libraries Department is requesting a budget adjustment to increase the Adventure Club Facility - Rex Fortune project budget (#500312) in the amount of $114,000, increasing the total project budget to $751,500. The additional funds are required for unplanned Division of State Architect’s (DSA) expenses for permitting and inspection requirements, fees for a lot line adjustment between the Center Unified School District and the City of Roseville, and unplanned expenses for underground utility and asphalt preparation and surfacing. The building is expected to be completed and open for business for the 2024-25 school year. There are adequate funds available in the Youth Development Fund (6591) fund balance for this project.

REQUESTER NAME & TITLE: Rob Nakamura, Recreation Superintendent FISCAL YEAR: 2024-25 PREPARER NAME & TITLE: Lisa Saunders, Management Analyst COUNCIL DATE (if applicable): 08/07/24 DEPARTMENT/DIVISION: Parks, Recreation, and Libraries ORDINANCE:

COUNCIL COMMUNICATION
CC #:
3471
File #:
0323
Title:

Second Reading - Roseville Municipal Code Amendment - Massage Services Contact:

Erika Broussard 916-746-1069
[email protected]
Josh Simon 916-774-5059 [email protected]
Travis Cochran 916-774-5325 [email protected]

Meeting Date: 8/7/2024
Item #: 6.16.

RECOMMENDATION TO COUNCIL
ORDINANCE NO. 6846 AMENDING CHAPTER 9.10 OF TITLE 9 OF THE ROSEVILLE MUNICIPAL CODE REGARDING MASSAGE SERVICES, for second reading and adoption.

BACKGROUND
Not applicable.

FISCAL IMPACT
Not applicable.

ENVIRONMENTAL REVIEW
Not applicable.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services

Respectfully Submitted,
Travis Cochran, Deputy City Clerk
Josh Simon, Police Captain

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Ordinance 6846
ORDINANCE NO. 6846

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEVILLE AMENDING CHAPTER 9.10 OF TITLE 9 OF THE ROSEVILLE MUNICIPAL CODE REGARDING

MASSAGE SERVICES

THE CITY OF ROSEVILLE ORDAINS:

SECTION 1. Chapter 9.10 of Title 9 of the Roseville Municipal Code is hereby amended to read as follows:

Chapter 9.10

MASSAGE SERVICES
Sections:

9.10.010. Purpose and intent.

9.10.020. Definitions.

9.10.030 Requirements for massage businesses.

9.10.040 Advertisements.

9.10.050 Massage business permit—Application.

9.10.060 Term of massage business permits.

9.10.070 Massage business permit fee.

9.10.080 Massage business permit issuance—Investigation—Grounds for denial.

9.10.090 Appeal from police chief determination—Permit conditions and denials.

9.10.100 Hearing—Scheduling.

9.10.110 Hearing—Notice.

9.10.120 City manager action.

9.10.130 Suspension and revocation—Notice.

9.10.140 Grounds for suspension and revocation of an active permit.

9.10.150 Appeal from police chief determination—Permit renewals, suspensions and revocations.

9.10.160 New permit application after denial, revocation or suspension.

9.10.170 Limited exemption to CAMTC certification for massage professionals.

9.10.180 Minors.

9.10.190 Health requirements.

2 9.10.200 Operating requirements for massage businesses—General conditions.

9.10.210 Operating requirements for massage businesses—Facilities.

9.10.220 Operating requirements for massage businesses—Operations.

9.10.230 Operating requirements for mobile massage services.

9.10.240 Display of permits and certifications.

9.10.250 Permit—Non-transferable, change of address or contact information.

9.10.260 Exemptions.

9.10.270 Criminal penalties.

9.10.280 Civil injunction.

9.10.290 Administrative remedies.

9.10.300 Cumulative remedies, procedures and penalties.

9.10.310 Separate offense for each day.

9.10.320 Severability.

9.10.010. Purpose and intent.

It is the purpose and intent of the City of Roseville to comply with California law while also protecting the health, safety and welfare of the inhabitants of the city through the enactment of standards of professional competence and operational requirements which promote the therapeutic use of massage therapy.

This chapter is not intended to be exclusive and compliance with city regulations will not excuse noncompliance with any state or local laws or regulations that are uniformly applied to other professional or personal services businesses including, without limitation, all zoning applications; business license regulations; building, fire, electrical, and plumbing codes; and health and safety laws and regulations applicable to professional or personal services businesses.

The California State Legislature implemented uniform statewide regulations pertaining to massage therapy and massage businesses (enacted by AB 1147 in 2014 and extended by AB 2194 in 2017 to January 1, 2021, by AB 1537 to January 1, 2023, and by AB 2687 to January 1, 2027) now codified in Chapter 10.5 of Division 2 of the California Business and Professions Code (commencing at Section 4600 et seq.), hereinafter referred to as the “Massage Therapy Act,” which created a statewide system for issuing massage therapist certification, thereby preempting certain local permitting systems and requirements for those that are certified. The statewide permitting system is administered by the California Massage Therapy Council (“CAMTC”).

The Massage Therapy Act allows local jurisdictions to enforce certain business licensing and to establish reasonable health and safety requirements for massage businesses, not in conflict

3 with the Massage Therapy Act. To enable the city to carry out the local regulation and review of massage businesses found in the Massage Therapy Act, the city must maintain massage business regulations in the Roseville Municipal Code.

The city wishes to promote the ethical practice of massage therapy as an important healing art and to prevent and discourage the misuse of massage therapy as a front for prostitution activities in violation of the law, including, but not limited to, subdivisions (a) and (b) of Section 647 of the California Penal Code, as may be amended.

The adoption of qualification standards for massage service providers based upon the CAMTC certification program established under the Massage Therapy Act and the enhancement of the city’s reasonable regulations on the operation of massage businesses and the conduct of all massage service providers will serve to reduce the risk of potentially injurious and illegal activity.

This chapter establishes a local regulatory system for massage businesses to operate within the city.

9.10.020. Definitions
The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:
“Applicant” means any person that seeks a massage business permit as required by this chapter.
“California massage therapy council (CAMTC)” means the California Massage Therapy Council created pursuant to Business and Professions Code Section 4602(a). “Certificate” means the certificate issued by the CAMTC to massage therapists, pursuant to Business and Professions Code Section 4601(h) and to massage practitioners pursuant to subdivision 4601(g), 4604.1(a), or 4604.2(c) that entitles the holder to practice massage. When used in this chapter, “certification” means a person who has an active and valid CAMTC certificate.
“City” means the City of Roseville.
“Compensation” means the payment, loan, advance, donation, contribution, deposit, or gift of money or anything of value.
“Convicted” means having entered a plea, or receiving a verdict, of guilty. “Convicted” also includes having entered a plea of nolo contendere. “Exempt therapist” means an individual granted an exemption from the CAMTC certification requirement pursuant to this chapter and is issued an exemption certificate. “Independent contractor” means a person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another’s control except for what is specified in a mutually binding agreement for a specific job.

4 “Manager” means a person who supervises, inspects, directs, organizes, controls, or in any other way is responsible for or in charge of the conduct of the activities within a massage business.
“Massage” or “massage therapy” means the systematic and scientific manipulation and treatment involving the external manipulation or pressure of soft tissue for therapeutic purposes.

Massage therapy includes any method of pressure on or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating, or stimulating of the external surfaces of the body with hands, apparatus or appliances, with or without such supplementary aids as rubbing alcohol, liniments, antiseptics, oils, powder, creams, lotions, ointment, or other similar preparations.

Massage therapy scope of practice does not include diagnosis, prescribing of drugs or medicines, spinal or other joint manipulations, nor any service or procedure for which a license to practice medicine, chiropractic, physical therapy, acupuncture, or podiatry is required by law. “Massage business” means a fixed place of business, premises, facility, establishment, or membership club where any person gives, performs or administers massage for compensation. “Massage professional” means any person who performs or administers to another person massage for compensation. Massage professionals shall include massage practitioners and massage therapists.
“Mobile massage services” means services in which a massage professional gives, performs or administers to another person a massage for compensation at a location other than a massage business permitted pursuant to this chapter.
“Owner” means any and all owners of a massage business including any of the following persons:

1. A sole provider as defined in this section;

2. Any general partner of a general or limited partnership that owns a massage business;

3. Any person who has an ownership interest in a corporation that owns a massage business;

4. Any person who is a member of a limited liability company that owns a massage business;

5. A massage professional acting as an independent contractor as defined in this section;

6. All owners of any other type of business association that owns a massage business.
“Permit” means the massage business permit.
“Person” means any natural person, individual, group, firm, association, partnership, corporation, company, sole proprietorship, or any other legal entity.

5 “Police chief” means the chief of police of the City of Roseville and his or her designee. “Sole provider” means a massage business where the owner owns 100 percent of the business, is the only person who provides massage services for compensation for that business, and has no other employees or independent contractors.

9.10.030 Requirements for massage businesses.

A. It is unlawful for any person to own, conduct, operate or maintain a massage business within the city without having a valid massage business permit issued pursuant to this chapter. Massage business permits shall also be required of any permanent or semi-permanent seated massage or reflexology installation.

B. It is unlawful for any person to own, conduct, operate or maintain a massage business within the city unless all persons providing massage services at the massage business each hold an active and valid certificate from the CAMTC as a massage practitioner or massage therapist or qualify as an exempt therapist. A massage business permit shall in no way be construed to allow any person to perform massage services within the city without either an active and valid certificate from the CAMTC or qualifying as an exempt therapist.

C. Each massage business holding an active and valid city-issued massage business permit pursuant to this chapter, which employs or retains any massage professional who does not have an active and valid certificate from the CAMTC as a massage practitioner or massage therapist or qualify as an exempt therapist pursuant to this chapter, will have until December 31, 2024, to comply with the requirements of paragraph (B) of this section.

9.10.040 Advertisements.

It is unlawful for any person to advertise massage services within the city without complying with the requirements provided for in this chapter.

9.10.050 Massage business permit—Application.

A. An application for a massage business permit shall be made by the owner, as defined in Section 9.10.020. Such application shall designate the person or persons who will be the manager, if applicable, of the premises.

B. All applications for permits shall be filed with the police chief on such forms as he or she may prescribe, and shall contain such information as the police chief shall reasonably deem necessary for the proper processing of the application. The application for a permit does not authorize the operation of a massage business unless and until such permit has been granted.

C. Any application for a massage business permit shall contain the following information:

1. The full true name and any other names used by the applicant. If the applicant is:
a. An individual, the individual shall state his or her full legal name.

6 b. A partnership, the partnership shall state its complete name, address, and the names of all partners, whether the partnership is general or limited, and a copy of the partnership agreement, if any. In addition, the application must designate the person who will provide all information required by this chapter.
c. A corporation, the corporation shall state its complete name, the date of its incorporation, evidence that the corporation is in good standing under the laws of California, the names and capacities of all officers and directors, and the name of the registered corporate agent and the address of the registered agent for service of process.

In addition, the application must designate the person who will provide all information required by this chapter.

2. The true, full and precise name under which the massage business is to be conducted, as well as any and all names under which the massage business is to be advertised.

3. The address where the massage business is to be located and all telephone numbers for the massage business.

4. The name and address of the owner of the real property upon or in which the proposed massage business is to be conducted and, if applicable, the lessor. In the event the applicant is not the legal owner of the property, the application must be accompanied by a copy of the lease containing specific language from the owner of the property acknowledging that a massage business will be located on the property. If the lease does not contain such language, then the applicant shall submit other documentation demonstrating the property owner’s knowledge and approval of the operation of a massage business on the property.

5. The current residential address and telephone number of the owner, as well as the manager (if the manager is a different person) who will be principally in charge of the operation of the massage business, and the previous residential addresses and business addresses within the previous five years, if any.

6. The applicant’s height, weight, eye color, and hair color.

7. Written proof to the satisfaction of the city that the applicant is at least 18 years of age.

8. The applicant’s business, occupation or employment history for the five years immediately preceding the date of the application.

9. The massage or similar business license history of the applicant, including whether such person, previously operating in this city or another city, county or state under a certificate, license or permit, has had such certificate, license or permit denied, revoked or suspended; and the reasons and dates for any such denial, revocation or suspension.

10. All criminal convictions, except minor traffic violations.

7 11. A complete and current list of the names and birthdates of all proposed massage professionals and other employees or independent contractors who are or will be employed or retained in the massage business, if known, and information demonstrating whether each massage professional is operating as an employee or independent contractor. If not known at the time of submission of the application, the applicant shall provide the required information no later than ten calendar days prior to opening for business.

12. A clear, color photocopy of a valid, government issued identification card for each applicant.

13. A complete set of fingerprints (LiveScan) for each applicant. The applicant shall be responsible for payment of any fingerprinting fees. Applicants in good standing as determined by the police chief are exempt from this requirement.

14. If the owner will provide massage services, then either the owner’s original CAMTC certificate and original CAMTC photo identification card, or the owner’s exemption certificate.

15. Authorization for the city, its agents, and employees to seek verification of the information contained in the application.

16. Such other identification and information as the police chief may reasonably require in order to discover the truth of the matters herein specified and as required to be set forth in the application.

17. A current and valid policy of insurance issued by an insurance company authorized to do business in the state of California evidencing that the applicant is insured under a liability insurance policy providing minimum coverage of $1,000,000 for injury or death to any one person arising out of the operation of any massage business and the administration of a massage.

18. Proof of current City of Roseville business license for the massage business.

19. A statement in writing and dated by the person providing the information, that he or she certifies under penalty of perjury, that all information contained in the application is true and correct.

D. In the event that the police chief requires further information, or deems the application incomplete, the applicant shall be notified in writing of the required information within twenty calendar days of submitting the application. Additional information shall be provided within fifteen calendar days of the date of the request, after which time the application shall be deemed abandoned. Abandoned and incomplete applications shall be denied.

9.10.060 Term of massage business permits.

A permit for a massage business shall be issued for a term of two years. It may be renewed by the police chief for additional two-year periods upon application by the permittee

8 unless the permit is suspended or revoked in accordance with Section 9.10.140. An application for renewal shall be accompanied by a nonrefundable fee as established by resolution adopted by the city council, as amended from time to time.

During the term of a permit, if the permittee has any change in the information submitted on the original or any renewal application, the permittee shall notify the chief of police in writing of any such change within fourteen calendar days of the change.

9.10.070 Massage business permit fee.

Every application for a massage business permit shall be accompanied by a nonrefundable fee as established by resolution adopted by the city council, as amended from time to time. The application and fee required pursuant to this section shall be in addition to any other license, permit or fee required by federal, state or local law.

9.10.080 Massage business permit issuance—Investigation—Grounds for denial.

A. Upon receipt of a completed massage business permit application, the police chief shall conduct an investigation, including an inspection of the massage business, if applicable, to ascertain whether a permit should be issued as requested. The police chief shall, within forty-five calendar days of receipt of the completed application, approve, condition or deny the permit.

B. The police chief may deny a permit provided for in this chapter if he or she finds any of the following:

1. The applicant, any owner, or any person directly engaged, employed, or retained in the massage business, has:
a. Been convicted of a violation of any provision of law pursuant to which a person is required to register under the provisions of Penal Code Section 290, or conduct in violation of California Penal Code Sections 266h, 266i, 314, 315, 316, 318, subsections (b) or (d) of Penal Code Section 647, Penal Code Section 653.23, as may be amended, or convicted of an attempt to commit or conspiracy to commit any of the above-mentioned offenses, or any other crime involving dishonesty, fraud, deceit, or moral turpitude or when the prosecution accepted a plea of guilty or nolo contendere to a charge of a violation of California Penal Code Sections 415 or 602, as may be amended, or any lesser included or related offense, in satisfaction of, or as a substitute for, any of the previously listed crimes, or any crime committed while engaged in the ownership of a massage business or the practice of massage.
b. Been convicted of a violation of Health and Safety Code Section 11550 or any offense involving the illegal sale, distribution or possession of a controlled substance specified in Health and Safety Code Sections 11054, 11055, 11056, 11057 or 11058, as may be amended.
c. Been convicted of any offense in any other state or U.S. territory, which is the equivalent of any of the abovementioned offenses.

9 d. Been subjected to a permanent injunction against the conduction or maintaining of a nuisance pursuant to Sections 11225 through 11235 of the California Penal Code, as may be amended, or any similar provisions of law in a jurisdiction outside the state of California.
e. Committed an act in another jurisdiction which, if committed in this state, would have been a violation of law and which, if done by a permittee under this chapter, would be grounds for denial, suspension or revocation of the permit. f. Committed any act, which, if done by a permittee, would be grounds for suspension or revocation of a permit.
g. Had a massage business permit or massage therapist/practitioner permit or other similar license or permit denied, suspended or revoked for cause by the city, any state, local agency or other licensing authority, or has had to surrender a permit or license as a result of pending criminal charges or in lieu of said permit or license being suspended or revoked.

2. The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application or in any documentation required to be filed in conjunction with said application.

3. The application does not contain all the information required by Section

9.10.050 and applicant fails to complete the application after having been notified of any additional information or documents required.

4. The applicant is not at least 18 years of age.

5. The massage business, as proposed, does not comply with all applicable laws, including, but not limited to, health, zoning, fire, building, and safety requirements and standards imposed by the laws of the state and the ordinances of the city, including this chapter.

6. The applicant failed to obtain all the necessary approvals from the necessary city departments or other governmental agencies, including, but not limited to, the city’s development services department.

7. The applicant has refused to or cannot meet the requirements established by this code.

8. The required fee(s) have not been paid and/or any other requirements of this chapter have not been satisfied within the time specified.

9. The massage business is proposed in the same location in which a massage business has previously been closed due to criminal activity within three years prior to the date of the application.

C. Notwithstanding subsection B, the applicant shall not be denied a permit solely on the basis that he or she has been convicted of a felony if he or she has obtained a certificate of rehabilitation under Section 4852.01 of the California Penal Code, as may be amended, or on the

10 basis that he or she has been convicted of a misdemeanor not specified in Section

9.10.080(B)(1)(a), (b), or (c) of this chapter.

D. If the police chief, upon completion of the investigation, determines the applicant does not fulfill the requirements set forth in this chapter, the police chief shall deny the application by dated written notice to the applicant. The applicant shall have the right of appeal as set forth in Section 9.10.090.

E. Upon issuance of any permit, the police chief may limit the permit by any condition reasonably necessary to preserve the intent and purpose of this chapter. Such permit limitations shall be in writing and provided to the permittee.

9.10.090 Appeal from police chief determination—Permit conditions and denials.

The police chief shall cause a written notice of his or her decision to issue, condition or deny a permit to be mailed to the applicant by certified U.S. mail, postage prepaid, return receipt requested. An applicant aggrieved by the police chief’s decision to condition or deny a permit may appeal such decision to the city manager, or his or her designee, by filing a written notice with the city clerk within fourteen calendar days of the applicant’s receipt of the police chief’s written notice of decision. If an appeal is not filed within such time, the police chief’s decision shall be final.

9.10.100 Hearing—Scheduling.

Upon appeal to the city manager, or his or her designee, the permit application shall be scheduled for a hearing within forty-five calendar days, or as soon thereafter as is practicable.

9.10.110 Hearing—Notice.

Notice of hearing shall be given by the posting of notice on the premises where the activity is to be conducted for a period of not less than five calendar days prior to the date of the hearing. In addition, a copy of the notice of hearing shall be mailed to the applicant at least five calendar days in advance of the hearing.

9.10.120 City manager action.

Following a hearing, the city manager, or his or her designee, may grant the permit subject to such conditions as it deems reasonable under the circumstances, or it may deny the issuance of the permit if it finds any of the grounds specified in Section 9.10.080(B). The decision of the city manager, or his or her designee shall be final.

9.10.130 Suspension and revocation—Notice.

Any permit issued under the terms of this chapter may be suspended immediately by the police chief, and subsequently revoked by the police chief after a hearing, upon determining that any of the grounds specified in Section 9.10.140 exist. No permit shall be revoked by virtue of this section until a hearing has been held by the police chief. Written notice of the time and place of such hearing shall be served upon the person to whom the permit was granted at least five

11 calendar days prior to the date set for such hearing. Such notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending such permit. Service of notice may be either by personal delivery to the person to be notified, or by depositing it in the U.S. mail in a sealed envelope, postage prepaid, addressed to the person to be notified at his or her address as it appears in his or her application for a permit. The hearing must be held within ten calendar days of the date of service of notice. During any suspension period resulting from the police chief’s immediate suspension of the permit pursuant to this section, the permit shall be temporarily null and void, and the business operations and all services provided by such massage business shall be prohibited until a hearing has been held by the police chief.

9.10.140 Grounds for suspension and revocation of an active permit.

Any permit issued under the terms of this chapter may be suspended or revoked if any permittee, his or her agent, employee, or independent contractor:

A. Has demonstrated a pattern of violating or failing to comply with the terms and conditions of the permit.

B. Does any act which violates any of the grounds for denial of the permit.

C. Has demonstrated a pattern of violating any other provision of this chapter or any federal, state or local law or regulation relating to his or her permitted activity.

D. Has demonstrated a pattern of engaging in or permitting misconduct substantially related to the qualifications, functions or duties of the permittee.

E. Conducts the massage business in a manner contrary to the peace, health, or safety of the public.

F. Has made any false, misleading or fraudulent statement of material fact in the application or in any documentation required to be filed in conjunction with said application or has omitted material information from the application or in any documentation required to be filed in conjunction with said application.

G. Has been convicted of any of the crimes identified in Section 9.10.080(B)(1)(a), (B)(1)(b) or (B)(1)(c).

H. Employs, retains, or otherwise allows any person to provide massage services without: (1) an active and valid certificate from the CAMTC as a massage practitioner or massage therapist; or (2) qualifying as an exempt therapist and having a valid exemption certificate.

I. Engages in unprofessional conduct, including, but not limited to, the following:

1. Engaging in sexually suggestive advertising related to massage services.

2. Engaging in any form of sexual activity on the premises of a massage business where massage is provided for compensation.

12 3. Engaging in sexual activity while providing massage services for compensation.

4. Practicing massage on a suspended or revoked permit.

5. Practicing massage without a permit.

6. Providing massage of the genitals or anal region.

7. Providing massage of the female breasts without the written consent of the person receiving the massage and a referral from a licensed California health provider.

8. Dressing while engaged in the practice of massage for compensation, or while visible to clients in a massage business, in any of the following:
a. Attire that is transparent, see-through, or substantially exposes the massage professional’s undergarments.
b. Swim attire, if not providing a water based massage modality approved by the CAMTC.
c. A manner that exposes the massage professional’s breasts, buttocks, or genitals.
d. A manner that constitutes a violation of Section 314 of the California Penal Code, as may be amended.
e. A manner that is otherwise deemed by the CAMTC to constitute unprofessional attire based on the custom and practice of the profession in California.

9.10.150 Appeal from police chief determination—Permit renewals, suspensions and revocations.

Any permittee aggrieved by the decision of the police chief in refusing to renew, suspending or revoking a permit may, within fourteen calendar days from the issuance of the police chiefs written decision, appeal to the city manager, or his or her designee, by filing a written notice with the city clerk. If such appeal is not filed within fourteen calendar days, the decision of the police chief shall be final. If an appeal is filed in a timely manner, the city manager, or his or her designee shall, after notice as provided in Section 9.10.110, hold a hearing on the appeal, and deny the renewal for any of the grounds specified in Section 9.10.080 or suspend or revoke the permit for any of the grounds specified in Section 9.10.140. The city manager’s, or his or her designee’s decision shall be final.

9.10.160 New permit application after denial, revocation or suspension.

If a massage business permit is suspended or revoked pursuant to this chapter, no permit shall be granted to the former permittee to conduct or carry on a massage business within three years after such suspension or revocation. Furthermore, when an application for a permit is denied for cause, no new application for a permit from the same person shall be accepted within

13 two years after denial unless the applicant can show a material change in his or her situation that would justify the issuance of such permit.

9.10.170 Limited exemption to CAMTC certification for massage professionals.

A. The city recognizes that some massage professionals currently practicing within the city may not meet the current requirements set forth by the CAMTC due to changes in educational or other requirements, particularly changes in requirements concerning hours of schooling, although the person has been in practice as a massage professional for a significant period. The city will therefore allow individuals who were working within the city as a massage therapist prior to August 1, 2024, and who meet the requirements of this section to continue to practice massage as a massage professional under this exemption without certification from the CAMTC.

B. An individual seeking this exemption must demonstrate each of the following to the satisfaction of the police chief or his or her designee.

1. Evidence that the individual worked as a massage professional in the city, either pursuant to their own massage business permit or under the massage business permit of another, on an ongoing basis for at least three years prior to August 1, 2024.

2. Evidence that the individual holds a diploma or certificate of graduation from a school of massage that requires a resident course of study of not less than one hundred twenty-five (125) hours to be given before the student shall be furnished with a diploma or certificate of graduation from such school showing the successful completion of such course of study. Schools offering correspondence course(s) not requiring actual attendance of class and/or schools not approved by the state of California under the provisions of Section 4601(a) of the California Business and Professions Code or an equivalent out of state school shall not be deemed acceptable for purposes of this section.

C. An individual granted an exemption from the CAMTC certification requirement pursuant to this section shall be referred to as an “exempt therapist”. An exempt therapist will be issued an exemption certificate that includes a statement from the police chief that the person met the requirements of this exemption. Any individual granted an exemption certificate is required to display, in the same manner this chapter requires the display of CAMTC certification, the exemption certificate showing that the person met the requirements of this exemption.

D. An exemption from the CAMTC certification requirement pursuant to this section is valid for two years from the date of issuance of the exemption certificate and must be renewed every two years thereafter. Any exempt therapist who allows their exemption certificate to expire shall not be eligible to renew such exemption certificate or operate as a massage professional under this exemption. Failure to obtain a renewal on or before the date an existing exemption certificate expires shall make the individual ineligible for a continued exemption.

E. The city may establish a nonrefundable fee by resolution adopted by the city council, as amended from time to time, to recover costs associated with initial applications and annual renewals of an exemption certificate.

14 F. Individuals who do not submit an initial application on or before December 31, 2024, for the exemption described in this section shall be ineligible to qualify for the exemption.

G. An exempt therapist is subject to and shall comply with all the requirements of this chapter, except for the CAMTC certification requirements.

9.10.180 Minors.

It is unlawful for any person to employ or retain anyone under the age of 18 years as a massage professional. It is unlawful for any person under the age of 18 to perform services as a massage professional.

9.10.190 Health requirements.

A. It shall be the responsibility of a massage professional to refrain from providing massage services, if the massage professional has reason to believe that he or she has any communicable or contagious disease, any open wound of any nature, or any other condition which may be hazardous to the health of a client. Any massage professional having reason to believe that he or she may have any such disease or condition shall promptly notify his or her employer, or, if the massage professional is an independent contractor, to notify the person with whom he or she has been retained, and it shall thereafter be unlawful for the employer or owner to utilize the services of the massage professional unless the disease or condition is no longer present.

B. Whenever the manager has reason to suspect that a massage professional has a communicable or contagious disease, he or she shall require the suspected individual to have an examination by a licensed physician. If the massage professional is found to have a disease or condition which may be hazardous to the health of a client, his or her employment or services rendered under contract shall be discontinued until reinstatement as a massage professional is approved in writing by a licensed physician certifying that the massage professional is free from communicable or contagious diseases.

9.10.200 Operating requirements for massage businesses—General conditions.

A. It is unlawful and a public nuisance to own, conduct, control, or operate a massage business unless the owner or manager designated in the application for the massage business is present within such massage business at all times.

B. An owner and/or manager shall be responsible for the conduct of all massage professionals while they are on the massage business premises. Any act or omission of any massage professional, whether an employee or an independent contractor, constituting a violation of the provisions of this chapter shall be deemed an act or omission of the owner or manager for the purposes of determining whether the massage business permit shall be revoked, suspended, conditioned, denied, or renewed.

C. No massage professional shall provide massage of the genitals or anal region of any client or the breasts of any female client without the written consent of the female client and a referral from a licensed California health care provider, nor shall any owner or manager of a massage business allow or permit such massage to the above specified areas. A massage shall not

15 be given and no client shall be in the presence of a massage professional, independent contractor, owner, manager, or other employee of a massage business unless the client’s genitals and the female client’s breasts are fully covered by a non-transparent covering.

D. The hours of operation of the massage business must be posted in the front window, or on the door if there is no front window, and clearly visible from outside the massage business.

E. The owner and/or manager shall ensure that the CAMTC certificate or exemption certificate for each on-duty massage professional is conspicuously displayed, visible from the entrance and/or reception and waiting area of the massage business, and that each massage professional has at his or her immediate disposal the CAMTC photo identification card or copy of the applicable exemption certificate at all times when working in the massage business. Such identification shall be provided upon request by a member of the public, the CAMTC, a member of law enforcement, or a city official.

F. No owner and/or manager shall employ or retain any person as a massage professional who does not have an active and valid CAMTC certificate or exemption certificate.

Every owner or manager shall report to the chief of police any change of employees or independent contractors, whether by new or renewed employment, discharge or termination, on the form and in the manner required by the chief of police. The owner or manager shall provide the name of the employee or contractor and the date of hire or termination within seven calendar days of the date of hire or termination.

G. All owners, managers, massage professionals, other employees and independent contractors of the massage business shall be fully clothed at all times while furnishing massage services. No such individual shall dress while engaged in the practice of massage for compensation in any of the following:

1. Attire that is transparent, see-through, or substantially exposes the individual’s undergarments.

2. Swim attire, if not providing a water-based modality approved by the CAMTC.

3. A manner that exposes the individual’s breasts, buttocks, or genitals.

4. A manner that constitutes a violation of Section 314 of the Penal Code, as may be amended.

5. A manner that is otherwise deemed by the CAMTC to constitute unprofessional attire based on the custom and practice of the profession in California.

H. No massage business shall operate as a school of massage, or use the same facilities as that of a school of massage.

I. The massage business shall be open to inspection by the police chief, the fire chief, the building official, any enforcement officer (as defined by Section 2.50.020 of the Roseville Municipal Code) or their authorized representatives during normal business hours of

16 the massage business, without a search or inspection warrant, to ascertain compliance with the provisions of this chapter.

9.10.210 Operating requirements for massage businesses—Facilities.

All owners and managers shall comply with the following operating requirements for massage businesses as well as any other conditions specified by the police chief:

A. Structure. Massage businesses shall be carried on in a permanent building. The owner shall obtain all required building permits per the California Building Code (“CBC”).

B. Signs. Any signs shall be in conformance with the current sign ordinances of the city. Each owner and/or manager shall post and maintain, adjacent to the main entrance and the front of the business, a readable informational sign identifying the premises as a massage business.

C. Services List. Each owner and/or manager shall post and maintain a list of services available and the cost of such services in the lobby of the massage business in a conspicuous public place. The services shall be described in English. No owner or manager shall permit, and no person employed or retained by the massage business shall offer to perform, any services or charge any fees other than those posted.

D. Lighting. The interior of the massage business shall maintain adequate illumination to make the conduct of employees, independent contractors, and clients within the premises readily discernible. No strobe or flashing lights shall be used.

E. Ventilation. In each massage room, the owner and/or manager shall provide minimum ventilation in accordance with the applicable building and fire codes.

F. Toilet Facilities. A minimum of one toilet and one separate wash basin shall be provided for clients in each massage business. The wash basin shall provide soap and hot and cold running water at all times and shall be located within close proximity to the massage rooms.

A permanently installed soap dispenser, filled with soap, and a single service towel dispenser or hand dryer shall be provided at the restroom wash basin. Bar soaps shall not be used. A trash receptacle shall be provided in each toilet room.

G. Massage Rooms. The room where massage is administered for each client shall have doors that remain unlocked at all times any client is in the room. A separate dressing area and clothing storage area is required where the massage is performed in a place other than where the client changes his or her clothing. Doors to such dressing rooms shall be self-closing.

H. Maintenance. Wet and dry heat rooms, shower rooms and bath and toilet rooms shall be thoroughly cleaned and disinfected as needed, but at least once each day the premises are open. All facilities for the massage business must be in good repair and shall be thoroughly cleaned and sanitized at least on a daily basis when the massage business is in operation.

I. Massage Tables. A massage table shall be provided in each massage room and all massages shall be performed on the massage table, with the exception of “Thai,” “Shiatsu,” and similar modalities of massage therapy, which may be performed on a padded mat on the floor.

17 No more than one client may occupy a massage table at the same time. Beds and floor mattresses shall not be permitted on the premises.

J. Front Door. One front door that enters into the lobby and/or other waiting room shall be provided for client use. All clients and any persons other than employees or independent contractors shall be required to enter and exit through the front door of the massage business.

K. Window Coverings. Any windows in the lobby shall not be covered. The lobby must be clearly visible from the exterior of the massage business at all times.

9.10.220 Operating requirements for massage businesses—Operations.

All owners and managers shall comply with the following operating requirements for massage businesses as well as any other conditions specified by the police chief:

A. Sanitation. Each owner and/or manager shall provide and maintain on the premises adequate equipment and supplies for disinfecting and sterilizing instruments used in providing massages. Every portion of a massage business, including appliances and apparatus, shall be kept clean and in a sanitary condition. Appliances, apparatus, and equipment shall be disinfected after each use.

B. Linen. Shared use of towels or linen shall not be permitted. Towels and linen shall be laundered or changed promptly after each use and stored in a sanitary manner.

C. Living Quarters Prohibited. No person or persons shall be allowed to reside, dwell, occupy or live inside a massage business at any time. A kitchen, if any, shall be for the sole use of employees and independent contractors, and shall be installed in an “employees only” area.

D. Persons Consuming Alcohol or Drugs. No person shall enter, be, or remain in any part of a massage business while under the influence of an alcoholic beverage or drug unless it is a drug prescribed for that individual. The owner or manager shall not permit any person under the influence of an alcoholic beverage or non-prescribed drug to enter or remain on such premises. Furthermore, no person shall administer or receive a massage while consuming or using an alcoholic beverage or drug unless it is a drug prescribed for that individual.

E. Recordings. No building or part thereof where massage or massage services are being conducted shall be equipped with any electronic, mechanical or artificial device used, or capable of being used, for recording or videotaping or monitoring the activities, conversation or other sounds in the treatment room or room used by clients. In the event a portable recording device is located within a treatment room, the camera and/or microphone of the device shall be rendered inoperable.

F. Warning Devices. The presence of any device which can be utilized as an early warning system, to alert the employees or independent contractors of a massage business to the presence of law enforcement officers or city authorities is prohibited in any massage business.

Said devices may include, but are not limited to, light or music dimmers, electronic detection devices, external or internal video equipment and alarm systems other than those used for fire alarms. Standard alert chimes to notify staff that a client has entered are permitted.

18 G. Coverings. Each massage business shall provide to all clients clean, sanitary, and opaque coverings of a minimum size of 30 inches by 60 inches, capable of covering the clients’ specified anatomical areas, including, but not limited to, the genital area, buttocks, and female breasts. No shared use of such covering shall be permitted, and re-use is specifically prohibited unless adequately cleaned prior to its re-use.

H. Records. Every owner and/or manager shall keep a record of the dates and hours of each treatment or service, the name, address, and phone number of the client, the name of the massage professional administering such service and a description of the treatment or services rendered. These records shall be prepared prior to administering any massage or treatment and shall be retained for a period of two years after such treatment or service. These records shall be open to inspection upon demand by the police chief, the fire chief, the building official, any enforcement officer (as defined by Section 2.50.020 of the Roseville Municipal Code) or their authorized representatives or emergency personnel for emergency purposes.

I. Hours of Operation. No massage business shall be open for business except during the hours of 6:00 a.m. to 10:00 p.m. on any day.

J. Doors. All exterior doors (except a rear entrance for staff only) and interior doors must remain unlocked during business hours, unless there is no massage business staff available to assure the security of clients and massage professionals who are behind closed doors. This subsection shall not apply to sole providers as defined in Section 9.10.020 of this chapter.

K. Dress Code for Clients and Visitors. Except for a client who is inside a massage room for the purpose of receiving a massage, no clients or visitors shall be permitted in or on the massage business premises at any time who are not fully clothed in outer garments of nontransparent material, or who display or expose themselves in underclothing, sheer clothing, or similar intimate apparel that exposes the breasts, buttocks, or genital area.

L. Advertising.

1. Any advertising matter published or distributed shall include in legible print the massage business permit number.

2. No massage business shall place, publish or distribute or cause to be placed, published or distributed any advertising matter that:
a. Depicts any portion of the human body that would reasonably suggest to prospective clients that any service is available other than legitimate massage services; or b. Depicts individuals in suggestive poses that would reasonably suggest to prospective clients that any service is available other than legitimate massage services; or c. Employs language in the text of any advertising that would reasonably suggest to prospective clients that any service is available other than legitimate massage services.
d. Advertises on a website known to advertise or promote illegal activities.

19 M. Display of Human Trafficking Notices. The massage business shall comply with the requirements of California Civil Code Section 52.6 related to the posting of information for victims of human trafficking.

9.10.230 Operating requirements for mobile massage services.

A. All equipment and apparatus shall be kept in a clean and sanitary condition and shall be disinfected after each use.

B. No massage professional performing mobile massage services shall dress while engaged in the practice of massage for compensation in any manner as outlined in Section

9.10.140(I)(8).

C. Each massage professional performing mobile massage services shall have in his or her possession proof of an active and valid massage business permit while administering massage.

D. Mobile massage services must be performed in accordance with all other conditions as set forth in this chapter, and shall not include any services prohibited from being offered at a massage business under this chapter.

E. No mobile massage services shall be conducted except during the hours of 6:00 a.m. to 10:00 p.m. on any day.

F. No massage professional performing mobile massage services shall provide massage of the genitals or anal region of any client. No massage professional performing mobile massage services shall provide massage to the breasts of any female client without the written consent of the female client and a referral from a licensed California health care provider. A massage shall not be given and no client shall be in the presence of a massage professional performing mobile massage services unless the client’s genitals and the female client’s breasts are fully covered by a non-transparent covering.

G. A list of services shall be available for review of the client or authorized representative of the police chief upon request and shall be described in English. No massage professional shall offer to perform mobile massage services other than those listed.

H. No person shall administer or receive a mobile massage while under the influence of an alcoholic beverage or drug unless it is a drug prescribed for that individual.

9.10.240 Display of permits and certifications.

A. Every massage business permit issued pursuant to this chapter shall be conspicuously displayed so that it may be easily seen by any client or other person on the massage business premises.

B. Any person providing massage services or mobile massage services shall have either: (1) an active and valid CAMTC certificate and CAMTC photo identification card; or (2) an active and valid exemption certificate, which shall be readily available for inspection at all times while providing such services, and shall show the CAMTC certificate and identification

20 card or exemption certificate to any member of the public, the CAMTC, a member of law enforcement, or a city official upon request.

C. Any person who provides mobile massage services, or who is a sole proprietor or independent contractor leasing space at a massage business, shall have their massage business permit available for inspection at all times while providing such services, and shall show the massage business permit to any authorized representative of the city.

9.10.250 Permit—Non-transferable, change of address or contact information.

Any massage business permit issued pursuant to this chapter is valid only at the address, if applicable, and for the person specified therein and cannot be sold, transferred or assigned to any other person. Change of the massage business address requires the owner or manager to notify the police chief in writing ten calendar days prior to the massage business moving to a new location and requires an inspection of the massage business prior to the massage business accepting clients for massage therapy. Failure to notify the police chief of the change of address shall render any permit void and any operation of a massage business unlawful.

9.10.260 Exemptions.

The following persons and businesses shall be exempt from the requirements of this chapter.

A. Persons holding an active and valid certificate to practice the healing arts under the laws of the state of California and their employees, including, but not limited to, holders of medical degrees such as physicians, surgeons, chiropractors, osteopaths, naturopaths, podiatrists, acupuncturists, physical therapists, registered nurses, and licensed vocational nurses, when practicing the healing arts within the scope of an applicable license.

B. State-licensed hospitals, nursing homes, sanitariums, physiotherapy businesses, or other state-licensed physical or mental health facilities and their employees or independent contractors.

C. Schools of massage approved by the state of California under the provisions of Section 4601(a) of the California Business and Professions Code and their students in training, provided such students provide massage therapy only under the direct personal supervision of an instructor.

D. Barbers and cosmetologists who are licensed under the laws of the state of California, while providing massage therapy within the scope of their licenses, provided that such massage therapy is limited solely to the neck, face, scalp, feet, and lower limbs up to the knees, and hands and arms, of their clients.

E. Persons who, acting within the scope of their employment, provide massage therapy to semi-professional or professional athletes or athletic teams, facilities or events, so long as such persons do not practice massage therapy as their primary occupation within city limits.

9.10.270 Criminal penalties.

21 It is unlawful and a public nuisance to intentionally violate any of the provisions of this chapter. Violation of this chapter shall be a misdemeanor.

9.10.280 Civil injunction.

The violation of any provision of this chapter shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of city, create a cause of action for injunctive relief.

9.10.290 Administrative remedies.

In addition to the civil remedies and criminal penalties set forth above, any person that violates the provisions of this chapter may be subject to administrative remedies, as set forth by city ordinance.

9.10.300 Cumulative remedies, procedures and penalties.

Unless otherwise expressly provided, the remedies, procedures and penalties provided by this chapter are cumulative to each other and to any others available under state law or other city ordinances.
§ 9.10.310 Separate offense for each day.

Any person that violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be punished accordingly. § 9.10.321 Severability.

The provisions of this chapter are hereby declared to be severable. If any provision, clause, word, sentence, or paragraph of this chapter or the application thereof to any person, establishment, or circumstances shall be held invalid, such invalidity shall not affect the other provisions or application of this chapter.

SECTION 2. This ordinance shall be effective at the expiration of thirty (30) days from the date of adoption.

SECTION 3. The City Clerk is hereby directed to cause this ordinance to be published in full at least once within fourteen (14) days after it is adopted in a newspaper of general circulation in the City, or shall within fourteen (14) days after its adoption cause this ordinance to be posted in full in at least three (3) public places in the City and enter in the Ordinance Book a certificate stating the time and place of said publication by posting.

PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of _______________, 20__, by the following vote on roll call:

22 AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

______________________________
MAYOR
ATTEST:

_________________________________
City Clerk

COUNCIL COMMUNICATION
CC #:
3461
File #:
0202
Title:

Annual Audit Reports for the Fiscal Year Ended June 30, 2023 - Environmental Utilities Enterprise Funds, Other Post-Employment Benefit Trust Fund, and Roseville Natural Gas Financing Authority
Contact:

Teri Quinlan 916-774-5316 [email protected]

Meeting Date: 8/7/2024
Item #: 6.17.

RECOMMENDATION TO COUNCIL
Staff recommends that the City Council receive three informational financial reports, along with four required auditor communication letters, for the fiscal year ended June 30, 2023. This item requires no Council action and is for information purposes only.

BACKGROUND
The following informational reports are included with this communication:

City of Roseville Environmental Utilities Enterprise Funds Financial Statements, including the Auditors’ Report on Internal Controls over Financial Reporting and on Compliance and Other Matters
City of Roseville Other Post-Employment Benefit Trust
(OPEB Trust)
Financial Statements
Roseville Natural Gas Financing Authority (RNGFA) Financial Statements, including the Auditors’ Report on Internal Controls over Financial Reporting and on Compliance and Other Matters
City of Roseville Environmental Utilities Enterprise Funds Auditor Communication Letter OPEB Trust Auditor Communication Letter
RNGFA Auditor Communication Letter
OPEB Trust Auditors’ Report on Internal Controls over Financial Reporting and on Compliance and Other Matters

The City Charter requires that the City Council engage an independent certified public accounting firm to conduct an annual financial audit of the City. Lance, Soll, and Lunghard, LLP (LSL), a certified public accounting firm, conducted the audits of the City’s financial statements for the fiscal year ended June 30, 2023. The City Council accepted the City’s Annual Comprehensive Financial Report, along with other financial audit reports, on June 5, 2024.

Separately issued financial statements are prepared and audited for the Environmental Utilities Enterprise Funds, the OPEB Trust, and RNGFA that detail activity in the current fiscal year and year-end balances. There were no financial statement or compliance findings included these reports. The OPEB Trust financial statements were presented to the OPEB Trust Review Committee at their meeting on July 24, 2024.

The auditor’s communication letters are required by audit standards. These letters convey there were no difficulties encountered performing the audits or disagreements between the auditors and City staff. The letters also include information about significant estimates and footnote disclosures included in the financial statements.

The internal control reports are also required communication that describes the scope of the auditors’ testing of internal controls and compliance and the results of that testing. The auditors did not identify any deficiencies in internal controls in these reports.

FISCAL IMPACT
There is no fiscal impact as a result of these informational reports.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The financial reports meet the above criteria and are not subject to CEQA. No additional environmental review is required.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world

Respectfully Submitted,
Teri Quinlan, Accounting Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
FY23 Environmental Utilities Enterprise Funds audit report FY23 OPEB Trust audit report
FY23 RNGFA audit report
FY23 Environmental Utilities Enterprise Funds auditors' communication letter FY23 OPEB Trust auditors' communication letter
FY23 RNGFA auditors' communication letter
FY23 OPEB Trust internal control report

ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS

ROSEVILLE, CALIFORNIA
YEAR ENDED JUNE 30, 2023 FINANCIAL STATEMENT

ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS

ROSEVILLE, CALIFORNIA

Financial Statements

Year Ended June 30, 2023

THIS PAGE INTENTIONALLY LEFT BLANK

ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS

ROSEVILLE, CALIFORNIA

Financial Statements

Year Ended June 30, 2023

Table of Contents

Page

Independent Auditors’ Report ........................................................................................................................................ 1

Basic Financial Statements
Statement of Net Position ....................................................................................................................................... 5 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 6 Statement of Cash Flows ........................................................................................................................................ 7 Notes to Financial Statements ................................................................................................................................ 9

Required Supplementary Information
Schedule of the Environmental Utilities Enterprise Funds’ Proportionate Share of the City’s Miscellaneous Plan Net Pension Liability ................................................................................................... 32 Schedule of Pension Contributions ....................................................................................................................... 34 Schedule of the Environmental Utilities Enterprise Funds’ Proportionate Share of the City’s Net OPEB Liability ....................................................................................................................................... 36 Schedule of OPEB Contributions .......................................................................................................................... 38

Supplementary Information
Combining Statement of Net Position ................................................................................................................... 44 Combining Statement of Revenues, Expenses and Changes in Net Position .................................................... 50 Combining Statement of Cash Flows ................................................................................................................... 56

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards .............................................................................................................................. 61

THIS PAGE INTENTIONALLY LEFT BLANK
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT

To the Public Utilities Commission
Environmental Utilities Department
Roseville, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the Environmental Utilities Enterprise Funds (Funds) of the City of Roseville, California (the “City”),
as of and for the year ended June 30, 2023, and the related no tes to the financial statements, which collectively comprise the Fund’s basic financial statements as listed in the table of contents.

In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of the Funds as of June 30, 2023, and the re spective changes in financial position and cash flows thereof for the year then ended in accordance with accoun ting 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 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 State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

Change in Accounting Principle

As described in Note 1 to the financial statements, in 2023, th e City adopted new accounting guidance GASB Statement No. 96, Subscription Based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

Component Unit Reporting

As discussed in Note 1, the financial statements of the Environ mental Utilities Enterprise Funds are intended to present the financial position, the changes in financial position, and, where applicable, cash flows of only that portion of the City that is attributable to the transactions of the Funds. They do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2023, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting pri nciples generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

To the Public Utilities Commission
Environmental Utilities Department
Roseville, California

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including an y currently known information that may raise substantial doubt shortly thereafter.

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 is sue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted a uditing standards and Government Auditing Standards will always detect a material m isstatement 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 generally accepted au diting standards and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skept icism 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 th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of inter nal 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.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the required pension and other postemployment benefits sch edules, as listed on the table of contents, 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 Accountin g Standards Board who considers it to be an 2 To the Public Utilities Commission
Environmental Utilities Department
Roseville, California

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 acc epted 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.

Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial stateme nts, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fi nancial reporting for placing the basic financial statements in an appropriate operational, economic, o r historical context. Our opinions on the basic financial statements are not affected by this missing information.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Fund’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purpose s of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financia l 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2024, on our consideration of the City’s internal control over the Fund‘s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant a greements and other matters. The purpose of that report is solely to describe the scope of our testing of intern al control over financial reporting and compliance and the results of that testing, and not to provide an opinion on t he effectiveness of the City’s internal control over the Fund‘s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over the Fund‘s financi al reporting and compliance.

Sacramento, California
June 21, 2024
3 THIS PAGE INTENTIONALLY LEFT BLANK
4 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Statement of Net Position
June 30, 2023
Assets:

Current:

Cash and investments in City Treasury 126,090,589$ 91,434,986$ 39,835,330$ 257,360,905$ Restricted cash and investments with fiscal agents 5,361,059 - - 5,361,059 Receivables:

Accounts, net of allowance for doubtful accounts 4,919,976 9,591,463 4,411,869 18,923,308 Accrued interest 311,701 1,073,299 115,043 1,500,043 Notes and loans 32,098 76,668,345 - 76,700,443 Prepaid costs 47,768 47,572 24,833 120,173 Inventories 3,750,529 120,995 263,306 4,134,830 Restricted:

Developer permit fees receivable 4,266,977 4,282,115 41,403 8,590,495 Total Current Assets 144,780,697 183,218,775 44,691,784 372,691,256 Noncurrent:

Land and construction in progress 31,667,674 124,013,591 2,723,769 158,405,034 Capital assets being depreciated, net 622,596,768 646,533,328 1,880,977 1,271,011,073 Total Noncurrent Assets 654,264,442 770,546,919 4,604,746 1,429,416,107 Total Assets 799,045,139 953,765,694 49,296,530 1,802,107,363 Deferred Outflows of Resources:

Deferred charge on refunding 1,192,871 - - 1,192,871 Deferred outflows related to OPEB 720,000 846,000 460,000 2,026,000 Deferred outflows related to pensions 6,673,918 9,315,069 5,864,799 21,853,786 Total Deferred Outflows of Resources 8,586,789 10,161,069 6,324,799 25,072,657 Liabilities:

Current:

Accounts payable 3,568,362 4,460,769 1,429,595 9,458,726 Accrued liabilities 478,702 1,305,334 292,198 2,076,234 Unearned revenues 108,472 2,270,461 193,581 2,572,514 Deposits payable 82,122 76,273 73,606 232,001 Current portion of compensated absences 984,749 1,414,188 872,077 3,271,014 Current portion of long-term debt 3,203,543 366,372 30,504 3,600,419 Investment in JPA - 1,970,423 - 1,970,423 Total Current Liabilities 8,425,950 11,863,820 2,891,561 23,181,331 Noncurrent:

Landfill closure and post closure liability - - 370,183 370,183 Compensated absences 596,160 739,869 288,476 1,624,505 Net OPEB liability 3,799,000 5,574,000 3,709,000 13,082,000 Net pension liability 22,992,912 32,092,188 20,205,358 75,290,458 Long-term debt, noncurrent portion 22,197,331 77,110,365 81,486 99,389,182 Total Noncurrent Liabilities 49,585,403 115,516,422 24,654,503 189,756,328 Total Liabilities 58,011,353 127,380,242 27,546,064 212,937,659 Deferred Inflows of Resources:

Deferred inflows related to OPEB 2,628,000 3,218,000 1,828,000 7,674,000 Total Deferred Inflows of Resources 2,628,000 3,218,000 1,828,000 7,674,000 Net Position:

Net investment in capital assets 630,056,439 693,070,182 4,492,756 1,327,619,377 Restricted for debt service 4,134,075 5,516,260 - 9,650,335 Unrestricted 112,802,061 134,742,079 21,754,509 269,298,649 Total Net Position 746,992,575$ 833,328,521$ 26,247,265$ 1,606,568,361$ Enterprise Funds
Water Wastewater Waste Services Total
See Notes to Financial Statements.
5 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Statement of Revenues, Expenses
and Changes in Net Position
Year Ended June 30, 2023
Operating Revenues:

Charges for services 38,140,013$ 54,299,357$ 41,683,100$ 134,122,470$ Other 263,795 72,317 170,382 506,494 Total Operating Revenues 38,403,808 54,371,674 41,853,482 134,628,964 Operating Expenses:

Operations and administration 26,131,946 63,939,603 34,566,283 124,637,832 Depreciation and amortization 12,323,622 14,539,225 498,232 27,361,079 Total Operating Expenses 38,455,568 78,478,828 35,064,515 151,998,911 Operating Income (Loss) (51,760) (24,107,154) 6,788,967 (17,369,947) Nonoperating Revenues (Expenses):

Subventions and grants 54,235 337,255 5,192 396,682 Interest and rents revenue (8,114) (100,768) (231,967) (340,849) Interest and fiscal charges (1,021,464) (586,034) 211,460 (1,396,038) Decrease in SPWA reserves - 12,703,843 - 12,703,843 Loss on disposal of capital assets (106,410) (62,391) - (168,801) Total Nonoperating
Revenues (Expenses) (1,081,753) 12,291,905 (15,315) 11,194,837 Income (Loss) Before Transfers (1,133,513) (11,815,249) 6,773,652 (6,175,110) and Capital Contributions
Capital contributions - connection/impact fees 16,610,599 22,289,732 930,139 39,830,470 Capital contributions from developers and other agencies 24,563,670 33,645,891 - 58,209,561 Transfers in 65,316 115,437 98,454 279,207 Transfers out (5,365,231) (3,225,316) (5,444,904) (14,035,451) Changes in Net Position 34,740,841 41,010,495 2,357,341 78,108,677 Net Position - Beginning 712,251,734 792,318,026 23,889,924 1,528,459,684 Net Position - Ending 746,992,575$ 833,328,521$ 26,247,265$ 1,606,568,361 Water Wastewater Waste Services Total
Enterprise Funds
See Notes to Financial Statements.
6 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Statement of Cash Flows
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Receipts from customers 38,795,827$ 54,350,239$ 41,423,600$ 134,569,666$ Payments to suppliers (19,680,618) (52,026,391) (26,762,589) (98,469,598) Payments to employees (10,076,736) (10,625,405) (6,041,436) (26,743,577) Changes in deposits (2,200) (10,054) 1,300 (10,954) Net Cash Provided by Operating Activities 9,036,273 (8,311,611) 8,620,875 9,345,537 Cash Flows from Non-Capital
Financing Activities:

Cash transfers out (5,365,231) (3,225,316) (5,444,904) (14,035,451) Cash transfers in 65,316 115,437 98,454 279,207 (Increase) decrease in notes and loans receivable (7,295) (44,817,061) - (44,824,356) Landfill payments - - (213,888) (213,888) Subventions and grants 54,235 337,255 5,192 396,682 Net Cash Used by
Non-Capital Financing Activities (5,252,975) (47,589,685) (5,555,146) (58,397,806) Cash Flows from Capital
and Related Financing Activities:

Capital contributions 24,563,670 33,645,891 - 58,209,561 Acquisition and construction of capital assets (39,892,731) (32,614,931) (463,680) (72,971,342) Principal paid on capital debt (2,975,000) - - (2,975,000) Interest paid on capital debt (1,021,464) (586,034) 211,460 (1,396,038) Proceeds from capital debt issued - 45,209,363 - 45,209,363 Connection/impact fees 16,610,599 22,289,732 930,139 39,830,470 Net Cash Provided (Used) by
Capital and Related Financing Activities (2,714,926) 67,944,021 677,919 65,907,014 Cash Flows from Investing Activities:

Fair market adjustment (2,194,776) (2,308,798) (901,817) (5,405,391) Interest received 1,867,749 2,208,029 669,851 4,745,629 Net Cash Provided (Used) by
Investing Activities (327,027) (100,769) (231,966) (659,762) Net Increase in Cash
and Cash Equivalents 741,345 11,941,956 3,511,682 16,194,983 Cash and Cash Equivalents at Beginning of Year 130,710,303 79,493,030 36,323,648 246,526,981 Cash and Cash Equivalents at End of Year 131,451,648$ 91,434,986$ 39,835,330$ 262,721,964$ Enterprise Funds
Water Wastewater Waste Services Total
See Notes to Financial Statements.
7 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Statement of Cash Flows
Year Ended June 30, 2023
Enterprise Funds
Water Wastewater Waste Services Total
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:

Operating income (loss) (51,760)$ (24,107,154)$ 6,788,967$ (17,369,947)$ Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided by Operating Activities:

Depreciation and amortization 12,323,622 14,539,225 498,232 27,361,079 (Increase) decrease in receivables 292,410 (2,290,883) (623,463) (2,621,936) (Increase) decrease in inventory (345,724) 20,203 (42,384) (367,905) (Increase) decrease in prepaid expense (47,768) (47,572) (24,833) (120,173) Increase (decrease) in accounts payable (2,481,044) (479,591) 269,431 (2,691,204) Increase (decrease) in accrued liabilities 47,783 590,113 (17,994) 619,902 Increase (decrease) in deposits payable (2,200) (10,054) 1,300 (10,954) Increase (decrease) in subscriptions - (49,680) (23,252) (72,932) Increase (decrease) in unearned revenue 99,609 2,269,448 193,581 2,562,638 Increase (decrease) in net pension liability 7,542,533 12,824,405 9,029,740 29,396,678 Increase (decrease) in OPEB liability (443,000) (424,000) (223,000) (1,090,000) (Increase) decrease in deferred pension related items (8,012,579) (10,984,480) (6,833,086) (25,830,145) (Increase) decrease in deferred OPEB related items (63,000) (415,000) (460,000) (938,000) Increase (decrease) in compensated absences 177,391 253,409 87,636 518,436 Total Adjustments 9,088,033 15,795,543 1,831,908 26,715,484 Net Cash Provided (Used) by
Operating Activities 9,036,273$ (8,311,611)$ 8,620,875$ 9,345,537$ Non-Cash Investing, Capital, and Financing Activities:

Net amortization of premium and deferred loss (461,965) - - (461,965) Gain/(Loss) on disposition of capital assets (106,410) - - (106,410) See Notes to Financial Statements.
8 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 1: SUMMARY OF SIGNIF ICANT ACCOUNTING POLICIES

A. General

The City of Roseville – Environm ental Utilities Enterprise Fund s (Funds) are enterprise funds of the City of Roseville (City) that own and operate the water, wastew ater, and waste services and provide these services to the businesses and residents of the City. The Funds are under the policy control of the City Council. The accompanying financial statements only reflec t the activity of the Funds. The Funds are an integral part of the City and the Funds’ financial statements a re included in the basic financial statements of the City.

The financial statements are intended to reflect the financial position and changes in financial position and cash flows of the Funds only. Accord ingly, the financial statements do not purport to, and do not, present fairly the financial position of the City and changes in financial position, or, its cash flows thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America.

B. Basis of Presentation

The financial statements of the Funds are prepared in conformity with accounting principles generally accepted in the United States of America. T he Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The Funds include the following funds:

Water Funds – These funds account for all financial transactions relating to the City’s Water service. Services are on a user charge basis to residents and business owners located in Roseville. The Water Funds include the Water Operations, Water Constr uction, Water Rehabilitation, Water Meter Retrofit, Water Rate Stabilization, and Utility Shared Services Funds.

Wastewater Funds – These funds account for all financial transactions relating t o the City’s Wastewater Collection and Treatment. Services are on a user charge basis t o residents and business owners located in Roseville. The Wastewater Funds include the Wastewater Operations, Wastewater Construction, Wastewater Rehabilitation, Wastewater Regional Rehabilitation and Wastewater Rate Stabilization Funds.

Waste Services Funds – These funds account for all financial transactions relating t o the City’s waste services.

Services are on a user charge basis to residents and business o wners located in Roseville. The Waste Services Funds include the Waste Services Operations, Waste Services Cap ital Purchases, Waste Services Rehabilitation and Waste Services Rate Stabilization Funds.

C. Basis of Accounting

The Funds are accounted for as enterprise funds (proprietary fu nd type). A fund is an accounting entity with a self-balancing set of accounts established to record the financ ial position and results of operations of a specific governmental activity. The activities of enterprise funds close ly resemble those of the private sector in which the purpose is to conserve and add to economic resources. Enterpris e funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.

The financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

When both restricted and unrestricted resources are available f or use, it is the Fund’s policy to use restricted resources first, then unrestricted resources as they are needed. 9 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. Cash and Investments

Cash and investments with origi nal maturities of three months o r less are treated as cash and equivalents for purpose of preparing the statement s of cash flows. Also, each F und’s portion of the City’s overall cash and investment pool is treated as cash and equivalents since these amounts are in substance demand deposits.

Further information related to the City’s cash and investment p ool can be found in the City’s Annual Comprehensive Financial Report.

E. Inventories

Inventories are valued at cost, using the weighted-average method and consist primarily of merchandise held for internal consumption.

F. Deposits from Customers

Deposits from Customers may be required by the Funds from comme rcial and residential customers when they establish their account as specified in section 14.04.030 of the City’s Municipal Code.

G. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources represents a consumpt ion of net assets that applies to a future period(s) and so will not be rec ognized as an outflow of resources (expense) until then. The Fu nds have three items that qualify for reporting in this category. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The deferred outflows related to pensions are described in note 6. The deferred outflows related to OPEB are described in note 7.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. Deferred inflows of resources represents an acqui sition of net assets that applies to a future period(s) and so will not be rec ognized as an inflow of resources (revenue) until that time. Th e Funds have two items that qualify for reporting in this category. The deferred inflows related to pensions are described in note 6.

The deferred inflows related to OPEB are described in note 7.

H. Revenue Recognition an d Classification of Revenues

Revenues are recognized when earned based on cycle billings ren dered to customers. All residential and commercial utility customers are billed once per month. There a re twenty-two billing cycles per month which include all types of customers, based on their location within the City. Revenues for services provided but not billed at the end of a fiscal year are accrued.

Contributions of cash or assets to proprietary funds from state and federal agencies, developers and others are recorded as revenue when earned.

Operating revenues consist mainly of charges for services. Oper ating revenues are used to finance the cost of operations, including the cost of delivering and providing services, maintenance and recurring capital replacement.

All other revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

I. Compensated Absences

Compensated Absences including accumulated unpaid vacation, sic k pay and other employee benefits are accounted for as expenses in the year earned.
10 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Changes in compensated absences payable in the Funds consist of the following:

Beginning Balance 4,377,083$
Additions 2,630,080
Payments (2,111,644)
Ending Balance 4,895,519$
Current Portion 3,271,014$

J. Use of Estimates

The preparation of financial statements in conformity with gene rally accepted accounting principles (GAAP) requires management to make estimat es and assumptions that affe ct the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

K. Fair Value Measurement

The funds categorize the fair value measurements of their inves tments based on the hierarchy established by generally accepted accounting principles. The fair value hierar chy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: 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.

L. Pension

For purposes of measuring the net pension liability, deferred o utflows of resources and deferred inflows of resources related to pension, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan a nd additions to/deductions from the plan’s fiduciary net position have been determined on the same basis a s they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

M. Other postemployment benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outf lows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City of Roseville Retiree Healthcare Plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized wh en due and payable in accordance with the benefit terms. Investments are reported at fair value.

N. Capital Assets

All capital assets are valued at historical cost or estimated h istorical cost if actual historical cost is not available.

Contributed capital assets are valued at their estimated acquis ition value on the date contributed. The City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems.

Capital assets with limited useful lives are depreciated over t heir estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents tha t year’s pro rata share of the cost of capital assets.
11 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Depreciation is calculated using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expe nse each year until the asset is fully depreciated.

The City has assigned the useful lives and capitalization thresholds listed below to capital assets:

Useful Lives
Capitalization
Thresholds
Buildings 40 years 20,000 $
Improvements 20-75 years no threshold
Machinery and Equipment 6-20 years 5,000
Plants and Substations:

Sewer 50 years 5,000
Water 50 years 5,000
Distribution System:

Sewer 75 years no threshold
Water 75 years no threshold

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized v alue of the asset constructed, net of interest earned on the invested proceeds over the same period.

O. Net Position

Net Position is the excess of a fund’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources. Net Position is divided into three categories described below:

Net investment in capital assets describes the portion of Net Position which is represented by the current net book value of the capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws , or other restrictions which the City cannot unilaterally alter. Restricted for debt service represents the portion of net position held in reserve in the event other resources of the Authority are not adequate to make required debt service payments.

Unrestricted describes the portion of Net Position which is not restricted as to use.

P. New Accounting Pronouncements

Effective in Future Fiscal Years

GASB Statement No. 101 – In June 2022, t he GASB iss ued Statement No. 96, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The Statement is effective for reporting periods b eginning after June 15, 2023. The City has not determined the effect on the Electric Fund’s financial statements. 12 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS

The City pools cash from all sources and all funds, except cert ain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.

The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by an electronic entry registering the owner in the r ecords of the institution issuing the security, called the book entry system. Individual investments are generally made by the City’s fiscal agents as required under its debt issues. In order to maximize security, the City employs the trust department of a bank as the custodian of all City managed investments, regardless of their form.

The City’s investments are carried at fair value, as required b y generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

A. Classification

Cash and investments of the Funds are classified in the financi al statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agreements.

Cash and investments as of June 30, 2023, consist of the following:

Cash and inv estments in City Treasury 257,360,905$
Restricted cash and investments with fiscal agent 5,361,059 Total cash and inv estments 262,721,964$
Cash on Hand 510$
City pooled cash and investments 257,360,395
Inv estments 5,361,059
Total cash and investments 262,721,964$
13 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

B. Investments Authorized by the California Government Code and the City’s Investment Policy

The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provision s of the California Government Code or the City’s Investment Policy where it is more restrictive:

Maximum
Maturity
Minimum
Credit Quality
Maximum
Percentage
Allowed
Maximum
Investment in
One Issuer
U.S. Treasury Obligations (a) 5 Years None None None
U.S. Agency Securities (a) 5 Years None None None
Mortgage Pass-Through Securities 5 Years AA 20% None
Forward Delivery Agreements N/A A None None
Local Agency Bonds 5 Years None None None
Repurchase Agreements 1 Years None None None
Bankers' Acceptances 180 Days None 40% 30%
Commercial Paper 270 Days A-1 25% 10% (b)
Medium-Term Notes (Corporate Notes) 5 Years A 30% None
Collateralized Time Deposits 5 Years None 30% None
Negotiable Certificates of Deposit 5 Years A 30% None
Local Agency Investment Fund N/A None None LAIF Limit
Insured Saving Accounts N/A None None None
Money Market Mutual Funds N/A None 20% 10%
Shares in a California Common Law Trust N/A None None None Interest Rate Swaps (c) N/A None None None
Supranationals 5 Years AA 30% None
Authorized Investment Type
(a) In specified fund accounts where liquidity is not the primary investment objective, the maximum maturity can be up to ten years with granted express authority by the City Council. Such investments cannot be made less than three months following the approval of extended investment terms. All longer-term investments must be federal Treasury or Agency securities.
(b) Eligible Commercial Paper may not represent more than 10 percent of the outstanding paper of an issuing corporation.
(c) Interest rate swaps may only be used in conjunction with enterprise fund debt or investments, not the General Fund.

14 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

C. Investments Authorized by Debt Agreements

The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The Cali fornia Government Code requires these funds to be invested in accordance with City resolutions, bond indentures o r State statutes. The table below identifies the investment types that are authorized for investments held by fi scal agents. The table also identifies certain provisions of these debt agreements:

Maximum
Maturity
Minimum
Credit Quality
U.S. Treasury Obligations (a) N/A None
U.S. Agency Securities (a) N/A None
Mortgage Pass-Through Securities N/A AAAm-G
Certificates of Deposit 360 days None to A-1
Savings Accounts Deposit Account (fully insured) N/A None Inv estment Agrements N/A A+ to AA
State or Municipality Bonds/Notes N/A One of two highest rating categories
Federal Funds or Bankers' Acceptances 270 days None to A-1 Commercial Paper (b) 270 days A-1 to AA
Local Agency Investment Fund (LAIF) N/A None
California Asset Management Program N/A None
d. Guaranteed mortgage-backed bonds or guaranteed pass through obligations of the Government National Mortgage Association e. Guaranteed Title X I financings of the U.S. Maritime Administration f. Project notes, local authority bonds, new communities debentures and U.S. public housing notes and bonds of the U.S. Department of Housing and Urban Development
(b) Bonds, debentures, notes or other evidence or indebtedness issued or guaranteed by any of the following non-full faith and credit of the U.S. government agencis:

Authorized Inv estment Type
(a) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by the Agency, provided they are backed by the full faith and credit of the United States of America, as follows:
a. Certificates of beneficial ownership of the Farmers Home b. F ederal Housing Administration debentures
c. Participation certificates of the G eneral Services Administration d. Senior debt obligations of the St udent Loan Marketing Association e. Obligations of the Resolution Funding Corporation f. Consolidated system-wide bonds and notes of the Farm Credit System a. Senior debt obligations of the Federal Home Loan Bank S ystem b. Participation certificates and senior debt obligations of the Federal Home Loan Mortgage Corporation
c. Mort gage-backed securities and senior debt obligations of the Federal National Mortgage Association

15 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

D. Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its int erest rate risk by holding most investments to maturity.

Information about the sensitivity of the fair values of the investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the investments by maturity or earliest call date:

E. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the eve nt of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

All of the City’s investments in securities are held in the name of the City and held at the location of the City’s third party custodian. Therefore, the City is not exposed to custodial credit risk.

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. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

No investments were rates by Standard and Poor’s investment rating system as of June 30, 2023.

12 Months
or Less
1 year to
3 years
More than
5 years Total
Cash held in City's Investment Pool 257,360,395$ - $ - $ 257,360,395$ Investments held with fiscal agent:

Guaranteed Investment Contract - - 250,608 250,608 Money Market Mutual Funds 5,110,451 - - 5, 110,451 Total investments 262,470,846 $ - $ 250,608$ 262,721,454$ Remaining Maturity (in Months)
June 30, 2023
Not Rated:

Cash held in City's inv estment pool 257,360,395 $
Money Market Mutual Funds 5,110,451
Guaranteed Investment Contract 250,608
Total inv estments 262,721,454 $
16 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 2: CASH AND INVESTMENTS (CONTINUED)

G. Fair Value Measurements

The Funds categorize their fair value measurements within the f air value hierarchy established by generally accepted accounting principles. The hierarchy is based on the v aluation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets f or identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on t he lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

The cash and investments held by the City are not categorized.

The Funds have the following recurring fair value measurements as of June 30, 2023:

Pooled cash and investments

The Funds’ cash balance was pooled with various other City fund s for deposit and investment purposes. The City’s treasury is responsible for the cash management of the Fund’s cash balance, which pools available cash for investment purposes. Each City fund owns a share of pooled cash and investments, which are separately maintained, and interest income was apportioned based on its av erage month-end cash balances to the total of the pooled cash and investments.

The Funds’ pooled cash and investments balance at June 30, 2023 is $262,721,454. The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment Risk Disclosures , are reported in the annual report of the City. The Fund recognizes its position in the City investment pool at fair value based on information provided by the City. Deposits and withdrawals to t he pool are made on the basis of $1 and not fair value. Accordingly, the inputs used to measure fair value are uncategorized and not defined as Level 1, Level 2 or Level 3. Additional information regarding interest rate risk, concentration of credit risk, custodial credit risk and fair value measurements of the City’s pooled cash and investments is presented in the City’s Annual Comprehensive Financial Report.

Level 1 Level 2 Level 3 Total
MoneyMarket Mutual Funds 5,110,451$ -$ -$ 5,110,451$ Total inv estments at fair v alue 5,110,451$ -$ -$ 5,110,451 Investments with uncategorized inputs
Cash held in City's investment pool 257,360,395
Guaranteed Investment Contract 250,608
257,611,003
Total investments 262,721,454$
17 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 3: INTERFUND TRANSACTIONS

A. Transfers Among Funds and with Other City Funds

With City Council approval, resources may be transferred from one fund to another. Transfers between funds during the fiscal year ended June 30, 2023, were as follows:

Amount
Transferred
Water Operations City General Fund 15,778 $ (H) Water Rate Stabilization Water Operations 500,000 (C) Water Construction Water Operations 58,350 (D) Water Rehabilitation Water Operations 21,262,471 (B), (F) City General Fund 49,538 (H)
Wastewater Operations Wastewater Rate Stabilization 1,000,000 (C) City General Fund 13,537 (H)
Water Construction 53,263 (F)
Wastewater Rehabilitation Wastewater Operations 7,271,229 (B) City General Fund 48,637 (H)
Wastewater Regional Rehabilitation Wastewater Operations 6,200,00 0 (B) Wastewater Rehabilitation 1,200,000 (B)
Waste Services Operations City General Fund 63,537 (E), (H) Waste Services Rehabilitation Waste Services Operations 616,549 (B) City General Fund 34,917 (H)
Gross Transfers In 38,387,806 $
Intrafund Eliminations (38,108,599)
Total Transfers In 279,207 $
Amount
Transferred
City of Rosev ille Non-Major Water Operations 1,444,438 $ (A) Governmental Funds Wastewater Operations 725,316 (A) Waste Services Operations 444,904 (A)
2,614,658
City of Rosev ille Water Operations 4,200,000 (G) Fleet Replacement Fund Wastewater Operations 2,500,000 (G) Waste Services Operations 5,000,000 (G)
11,700,000
Gross Transfers Out 14,314,658 $
Total net transfers out 14,035,451$
Fund Receiving Transfers Fund Making Transfers
Fund Receiving Transfers Fund Making Transfers
18 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 3: INTERFUND TRANSACTIONS (CONTINUED)

(A) Transfer to fund utility impact reimbursement, debt service, and/or shared project costs. (B) Transfers to fund future rehabilitation costs.
(C) Transfers within utility to support rates.
(D) Transfers to fund project.
(E) Transfer to fund operation.
(F) Transfer of capital assets between funds.
(G) Transfer to fund electrification of fleet vehicles. (H) Transfer for unspent project funds.

B. Current Interfund Balances

Current interfund balances arise in the normal course of busine ss and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2023, interfund balances comprised the following:

Long-Term Interfund Advances

At June 30, 2023, the funds below had made advances which were not expected to be repaid within the next year.

Water Operations advance bears interest from 3 to 5 percent. It will be repaid over a period of 13 years ending in 2030.

Amount
Water Construction Water Operations 385,000 $
385,000
Intrafund Eliminations (385,000)
Total - $
Due from Other Funds Due to Other Funds
Amount
Water Construction Water Operations 2,305,000 $
2,305,000
Intrafund Eliminations (2,305,000)
Total - $
Advances from Other Funds Fund Receiving Advance
19 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 4: CAPITAL ASSETS

A. Capital Asset Additions, Retirements, and Transfers

Capital assets at June 30, 2023 comprise of the following:

B. Depreciation/Amortization Allocation

Depreciation expense is charged to individual enterprise funds based on their usage of the related assets. The amount allocated to each individual fund is as follows:

Balance at June
30, 2022 Additions Retirements Transfers
Balance at June
30, 2023
Capital assets, not being depreciated
Land 12,113,466 $ - $ - $ - $ 12, 113,466$ Easements 19,000 - - - 19,000 Construction in progress 157,179,036 20,641,702 - (31, 548,170) 146,272,568 Total capital assets not being depreciated 169,311,502 20,641,702 - (31, 548,170) 158,405,034 Capital assets, being depreciated
Buildings 4,460,793 - - - 4, 460,793 Improvements 36,682,688 - - - 36, 682,688 Machinery and equipment 16,049,516 342,810 - 647,493 17,039,819 Plant and substations 297,695,633 - - 28, 282,116 325,977,749 Distribution 1,328,189,743 51,986,830 (366,664) 2,618,561 1,382,428,470 Subscriptions 754,763 215,321 - - 970,084 Total capital assets being depreciated 1,683,833,136 52,544,961 (366,664) 31,548,170 1,767,559,603 Less accumulated depreciation for
Buildings (1,514,946) (111,519) - - (1, 626,465) Improvements (3,651,663) (814,045) - - (4, 465,708) Machinery and equipment (10,290,586) (1,537,664) - - (11, 828,250) Plant and substations (135,173,253) (6,205,587) - - ( 141,378,840) Distribution (318,754,867) (18,504,538) 197,864 - ( 337,061,541) Subscriptions - (187,726) - - (187,726) Total accumulated depreciation (469,385,315) (27,361,079) 197,864 - ( 496,548,530) Net capital assets being depreciated 1,214,447,821 25,183,882 (168,800) 31,548,170 1,271,011,073 Environmental Utilities Enterprise
Funds Capital Assets, net 1,383,759,323$ 45,825,584$ (168,800)$ -$ 1, 429,416,107$ Water Operations 9,135,907$
Water Construction 2,120,884
Water Rehabilitation 594,571
Water Meter Retrofit 472,260
Wastewater Operations 7,283,283
Wastewater Construction 5,687,247
Wastewater Rehabilitation 1,568,695
Waste Services Operations 334,349
Waste Services Capital Purchases 20,931
Waste Services Rehabilitation 142,952
Total Env ironmental Utilities Enterprise Funds 27,361,079$ 20 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 5: SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS

The Funds are a subscriber for a noncancellable subscription of information technology services. The Funds recognize a subscription liability and an intangible right ‐to‐use subscription asset (subscription asset) in the financial statements. The Funds recognize subscription liabilit ies with an initial, individual value of $75,000 or more.

At the commencement of a subscription, the Funds initially measures the subscription liability at the present value of payments expected to be made during the subscription term. S ubsequently, the subscription liability is reduced by the principal portion of subscription payments made. The sub scription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequen tly, the subscription asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to subscriptions include how the Funds determine (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.

• The Funds use the interest rate charged by the vendor as the d iscount rate. When the interest rate charged by the vendor is not provided, the Funds generally use its esti mated incremental borrowing rate as the discount rate for subscriptions.

• The subscription term includes the noncancellable period of th e subscription. Subscription payments included in the measurement of the subscription liability are composed o f fixed payments that the Funds are reasonably certain to exercise.

The Funds monitor changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain chang es occur that are expected to significantly affect the amount of the subscription liability.

NOTE 6: LONG-TERM DEBT

The Funds generally incur long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt.

A. Current Year Transactions and Balances

Amount of
SBITA Capital Accumulated
Assets Amortization
970,084$ 187,726 $
Subscription Type
Software as a service
Original Issue
Amount
Balance at
June 30, 2022 Additions Retirements
Balance at
June 30, 2023
Current
Position
Certificate of Participation:
2015 Water Utility Revenue
42,565,000$ 24,815,000 $ - $ (2,975,000)$ 21,840,000 $ 3,125,000 $ 6,899,891 3,695,715 - (461,965) 3,233,750 - Total certificates of participation 49,464,891 28,510,715 - (3,436,965) 25,073,750 3,125,000 Direct Placement Loans:

State Revolving Fund Loans 108,021,755 31,851,283 45,209,363 - 77,060,646 267,963 Total direct placement loans 108,021,755 31,851,283 45,209,363 - 77,060,646 267,963 Subscriptions - 754,763 215,321 (114,879) 855,205 207,456 Total Environmental Utilities
Enterprise Funds Debt 294,037,801 $ 61,116,761 $ 45,424,684 $ (3,551,844) $ 102,989,601 $ 3,600,419 $ * See Note 9 for additional information regarding the Revenue Bond adjustments and Note 5.c for the Direct Placement Loans adjustment.

2.00% - 5.00%, due 12/1/29
Add: bond premium
21 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 6: LONG-TERM DEBT (CONTINUED)

B. 2015 Water Utility R evenue Refunding Certificates of Participation

On August 20, 2015, the Roseville Finance Authority issued the Water Revenue Certificates of Participation, Series 2015, in the principal amount of $42,565,000 to refund t he 2007 Water Utility Certificates of Participation.

The certificates bear interest at 2.00 percent to 5.00 percent and are due semi-annually on December 1 and June 1 of each year. The certificates are repayable by a pledge of net revenue from the Water Utility System.

Principal payments are due annually on December 1 through 2030.

As of June 30, 2023, the total principal and interest remaining to be paid on the certificates was $25,293,550. As disclosed in the official statement, all net revenues of the Wa ter Utility System are expected to provide coverage over debt service of 120 percent over the life of the certifica tes. For fiscal year 2023, net revenues amounted to $22,608,710 which represented coverage of 547 percent over the $4,134,075 in debt service. The balance outstanding as of June 30, 2023, was $21,840,000.

C. 2020 State Revolving Fund Loans

In June 2020, the City entered into two loan agreements with th e State Water Resources Control Board to secure funding for the Pleasant Grove Wastewater Treatment Plant Expan sion (Expansion) project and the Pleasant Grove Wastewater Treatment Plant Energy Recovery (Energy Recove ry) project in the form of loans from the Clean Water State Revolving Fund. In addition, the City entered into agreements with the South Placer Wastewater Authority (Authority), which is responsible for these projects, for the City to reimburse project costs to the Authority from loan disbursements and for the Authority to reimburse the City for costs of the loans. The loans bear interest at 1.30 percent and require net revenues equal to at least 120 percent of the maximum annual debt service with respect to the City’s share of outstanding wastewa ter obligations. For fiscal year 2023, wastewater net revenues amounted to $18,870,800 which represented coverage of 254 percent over the $7.4 million in maximum annual debt service. Interest accrues on the loans as p roject cost reimbursements are disbursed.

Beginning one year after completion of construction, repayment of the principal and accrued interest will be paid annually. The projects are currently under construction with estimated completion dates in July 2023.

The Expansion project loan is approved for up to $78,347,000 an d has a balance outstanding of $67,367,735 as of June 30, 2023. The Energy Recovery project loan is approved for up to $29,674,755 and has a balance outstanding of $9,696,911 as of June 30, 2023. As of June 30, 2 023, a total of $4,000,000 of this loan has been disbursed and forgiven.

Annual debt service requirements are shown below for all long-term debt of the Funds:

Principal Interest Principal Interest Principal Interest $3,125,000 $1,003,575 267,963$ 124,339 $ 3,392,963 $ 1,127,914 $ 3,290,000 843,200 1,890,952 1,001,406 5,180,952 1,844,606 3,455,000 674,575 2,154,338 973,759 5,609,338 1,648,334 3,630,000 497,450 2,182,344 945,753 5,812,344 1,443,203 3,815,000 311,325 2,210,715 917,383 6,025,715 1,228,708 2029-2033 4,525,000 123,425 11,492,209 4,148,278 16,017,209 4,271,703 2034-2038 - - 12,258,879 3,381,609 12,258,879 3,381,609 2039-2043 - - 13,076,694 2,563,793 13,076,694 2,563,793 2044-2048 - - 13,949,068 1,691,419 13,949,068 1,691,419 2049-2053 - - 14,879,640 760,847 14,879,640 760,847 2054-2058 - - 2,697,844 35,109 2,697,844 35,109 Totals 21,840,000 3,453,550 $ 77,060,646 16,543,695 $ 98,900,646 19,997,245 $ Reconciliation of long-term debt
Add deferred bond premium 3,233,750 - 3,233,750 Net long-term debt 25,073,750 $ 77,060,646 $ 102,134,396 $ 2027
2028
Certificates of Participation Loans Total
For the Year Ending June 30,
2024
2025
2026
22 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 6: LONG-TERM DEBT (CONTINUED)

D. Original Issue Discounts and Premiums

Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

NOTE 7: PENSION PLAN

Plan Description – The Funds participate and contribute to the City’s Miscellaneous Plan (Plan), an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and adminis trative agent for its participating member employers. Benefit provisions under the Plan is established by State statute and may be amended by 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. For financial reporting purposes, the Funds report a proportionate share of the City’s net pension liability. Accordingly, the disclosures and required supplementary information (RSI) has been reported for the Funds as a cost-sharing participant.

Benefits Provided – CalPERS provides retirement and disability benefits, annual c ost 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: th e 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.

Pension Liability, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions

The Plan’s provisions and benefits in effect at June 30, 2023, are summarized as follows:

Contributions – Section 20814(c) of the California Public Employees’ Retireme nt law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding con tributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Funds are required to contribute the difference between the actuarially determined rate and the contribution rates of employees.

Employee contribution rates for the fiscal year ended June 30, 2023, were 8.0 percent for the Classic Plan Members and 7.0 percent for the PEPRA Plan members. The Funds’ proportionate share of the City’s contributions to the miscellaneous plan is $5,720,618 for the year ended June 30, 2023.

Hire date Prior to January 1, 2013 After to January 1, 2013 Benefit v esting schedule 5 years serv ice 5 years serv ice Benefit payments monthly for life monthly for life
Retirement age 50-55 52-67
Monthly benefits, as a % of annual salary 2.0-2.7% 1.0-2.5% Required employee contribution rates 8.000% 7.000%
Required employer contribution rates* 11.684% 13.819%
Miscellaneous
23 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 7: PENSION PLAN (CONTINUED)

As of June 30, 2023, the Funds reported a combined net pension liability of $75,290,458 for their proportionate share of the Plan’s net pension liability.

The net pension liability of the P lan was measured as of June 3 0, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuar ial valuation as of June 30, 2021 rolled forward to June 30, 2022. The Funds’ proportion of the Plan’s net pension liability was based on the Funds’ fiscal year 2022 contributions to the Plan relative to the total contributions of the City has a whole.

The Funds’ proportionate share of the City’s miscellaneous pens ion plan net pension liability, measured as of June 30, 2023 was 17.09 percent, which is a 6.67 percent decrease from the prior year.

For the year ended June 30, 2023, the Funds recognized pension expense of $7,316,457. At June 30, 2023, the Funds reported deferred outflows of resource s and deferred inflows of resources related to pension from the following sources:

The amount of $8,160,238, reported as pension contributions sub sequent to the measurement date, will be recognized as a reduction of the net pension liability in the y ear ended June 30, 2023. Other amounts w ill be recognized as a reduction to pension expense as follows:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to the measurement date 8,160,2 38$ - $ Changes in assumptions 5,396,846 -
Differences between expected and actual experience 1,652,721 - Net differences between projected and actual earnings on pension plan investments 6,643,981 -
Total 21,853,786 $ - $
2023
Net Deferred Outflows of
Resources
2024 3,714,986 $
2025 3,258,692
2026 2,535,999
2027 4,183,871
Total 13,693,548 $
Year Ending June 30,
24 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 7: PENSION PLAN (CONTINUED)

Actuarial Assumptions – The Funds’ proportion of the City’s total pension liabilities in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions.

The underlying mortality assumptions and all other actuarial as sumptions used in the June 30, 2022 valuation were based on the results of a December 2017 actuarial experien ce study for the period of 1997 to 2015. Further details of the experience study can be found on the CalPERS website.

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 an inflation) are developed for each major asset class.

In determining the long-term expected rate of return on pension plan investments, CalPERS took into account both short and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future year s. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benef its for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Invetment Rate of Return
Mortality
(1) Depending on age, service and type of employment

2.80%

3.3-14.2% (1)

7.000%
Derived using CalPERS membership data
Miscellaneous
June 30, 2021
June 30, 2022
Entry-Age Normal Cost Method

6.90%

2.80%
25 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 7: PENSION PLAN (CONTINUED)

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.

Discount Rate – The discount rate used to measure the total pension liability was 6.9 percent for each plan. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the district’s contribut ions will be m ade at rates equal to the difference between actuarially determined contributions rates and the empl oyee rate. Based on those assumptions, each pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Funds’ proportionate share of the City’s Miscellaneous Plan Net Pension Liability to Changes in the Discount Rate – The following presents the Funds’ proportionate share of the net pension liability of the Plan, calculated using the discount rate for t he Plan, as well as what the Funds’ proportionate share of the net pension liability would be if it were calculated usi ng a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

Assumed
Asset
Allocation
Real Return
Years 1-10(2)
Real Return
Years 11+(3)
Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets 0% 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% 0.00% -0.92%
Total 100%
2- An expected inflation of 2.0% used for this period
3- An expected inflation of 2.92% used for this period
2023
Asset Class(1)
1- In the Basic Financial Statement, Fixed Income is included i n Global Miscellaneous
1% Decrease 5.90%
Net Pension Liability 103,927,544$
Current Discount Rate 6.90%
Net Pension Liability 75,290,458$
1% Increase 7.90%
Net Pension Liability 51,679,853$
26 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 7: PENSION PLAN (CONTINUED)

Pension Plan Fiduciary Net Position – Detailed information regarding the City’s collective net pension liability is available in the City’s separately issued Annual Comprehensive Financial Report (ACFR). The City’s financial statements may be obtained by cont acting the City of Roseville’ s Finance Department. That report may also be obtained on the internet at www.roseville.ca.us.

NOTE 8: POST-EMPLOYMEN T HEALTH CARE BENEFITS

Plan Description

The City provides medical benefits to substantially all retiree s under the City of Roseville Other Post-Employment Benefit Plan (Pl an), a single employer defined benefit healthcare plan administered by the Trust Investment Review Committee. The City is responsible for establishing and amending the funding policy of the Plan. The Plan financial statem ents can be obtained at www.rose ville.ca.us or by contacting the City of Roseville Finance Department at 311 Vernon Street, Roseville, California 95678. For financ ial reporting purposes, the Funds reports a proportionate share of the City’s net OPEB liability. Accordingly, the disclosures and required supplementary information (RSI) has been reported for the Funds as a cost-sharing participant.

Benefits Provided – The Plan provides medical, dental, and vision insurance benef its to eligible retirees and their dependents. Benefits are provided through a third-party insurer, and the full cost of the benefits is covered by the Plan. Benefit provisions are established and may be amended by City labor agreements, which are approved by the City Council.

Contributions – The contribution requirements of plan members and the City ar e established and may be amended by the City Council. The City Council establishes rates based on actuarially determined rates. For the year ended June 30, 2023, the Funds contributed $1,761,283 to the Plan.

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB – At June 30, 2023, the Funds reported a liability of $13,082,000 for their proportionate share of the City’s net OPEB liab ility.

The net OPEB liability was measured as of June 30, 2023, and th e total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of J une 30, 2021. The Funds’ proportion of the net OPEB liability was based on the Fund’s fiscal year 2022 contributions to the Plan relative to the total contributions of the City as a whole. At June 30, 2023, the Funds’ proportion was 16.63 percent, which is a decrease of

0.30 percent from its proportion measured as of June 30, 2023.

For the year ended June 30, 2023, the Funds recognized an OPEB expense of $57,158. At June 30, 2023, the Funds reported deferred outflows of resource s and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Changes in assumptions 1,067,163 $ 2,760,582 $ Differences between expected and actual experience - 4,913,418 Net differences between projected and actual earnings on pension plan investments 958,837 -
Total 2,026,000$ 7,674,000$
2023
27 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 8: POST-EMPLOYMENT HEAL TH CARE BENEFITS (CONTINUED)

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB w ill be recognized as a reduction to OPEB expense as follows:

Actuarial Assumptions - The total OPEB liability in the June 30, 2021, actuarial valu ation was determined using the following actuarial assumptions applied to all periods incl uded in the measurement, unless otherwise specified:

The long-term expected rate of return on OPEB 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 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:

Net Deferred Inflows
of Resources
2024 (1,550,831)$
2025 (1,186,956)
2026 (422,982)
2027 (1,165,091)
2028 (797,858)
Thereafter (524,282)
Total (5,648,000)$
Year Ending June 30,
Valuation Date June 30, 2021
Measurement Date June 30, 2023
Contribution Policy
Discount Rate 5.75%
Expected Long-Term Rate of Return 5.75%
Inflation 2.50%
Mortality, Retirement, Disability, Termination CalPERS 1997-2015 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP-2019 Salary Increase 2.75%
Medical Trend
Healthcare participation Tier 1: 100%
Tier 2 & Tier 3 RFF: 80% at 50% of cap to 100% of cap
Tier 3 Non-RFF & Tier 4: 60%
Mortality Derived using CalPERS membership data
(1) Depending on age, service and type of employment
Prefunded with pay-go plus percent of pay which
varies by employee group.

Non-Medicare - 6.5% for 2023, decreasing to an ultimate rate of 3.75% in 2076
M e d i c a r e-6 . 5 %f o r2 0 2 3 ,d e c r e a s i n gt oa nu l t i m a t er a t eo f

4.0% in 2076
Target
Allocation Real Return 1
Equities 60% 4.65%
Fixed Income 40% 0.78%
Total 100%
1An expected of Inflation is 2.50% used
Asset Class
28 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 8: POST-EMPLOYMENT HEAL TH CARE BENEFITS (CONTINUED)

Discount rate. The discount rate used to measure the total OPEB liability was 5.75 percent. The projection of cash flows used to determine the disc ount rate assumed that City con tributions will be m ade 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 f or current active and inactive employees.

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.

Sensitivity of the Environmental Funds’ proportionate share of the net OPEB liability to changes in the discount rate

The following presents the Funds’ proportionate share of the ne t OPEB liability, as well as what the Funds’ proportionate share of the net OPEB liab ility would be if it were calculated using a discount rate that i s 1-percentage-point lower (4.75 percent) or 1-percentage-point higher (6.75 percent) than the current discount rate:

Sensitivity of the Environmental Funds’ proportionate share of the net OPEB liability to changes in the healthcare cost trend rate

The following presents the Funds’ proportionate share of the ne t OPEB liability, as well as what the Funds’ proportionate share of the net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

OPEB plan fiduciary net position – Detailed information about the Plan’s fiduciary net position is available in the separately issued City of Roseville Other Postemployment Benefits Trust financial report.

NOTE 9: RISK MANAGEMENT

The Funds are included in the City’s risk management program. T he City is exposed to various risks of loss related to worker’s compensation, torts, theft of, damage to an d destruction of assets; errors and omissions; and natural disasters for which the City self-insures and/or carrie s commercial insurance. Earthquake damage is not included in the property insurance coverage carried by the City. All funds of the City participate in the program and make payments to the Risk Management Internal Service Fund based on estimates of the amounts needed to pay operating costs, insurance premiums, and prior and current year claims.

NOTE 10: SOUTH PLACER WASTEWATER AUTHORITY

The City is a member of the South Placer Wastewater Authority ( SPWA), a joint powers agency which operates under a joint powers agreement among three public agencies, the City of Roseville, South Placer Municipal Utility District and Placer County. The pur pose of SPWA is to provide f or the planning, financing, acquisition, construction and operation of the Regional Wastewater Facilities. Under the terms of the amended and restated funding agreement, effective January 31, 2019, the City will ow n and operate the Regional Wastewater Facilities and the member agencies will share the operating costs of the F acilities after construction is complete. The Regional Wastewater Facilities include the Dry Creek Plant and the Pleasant Grove Plant. 1% Decrease
(4.75%)
Discount Rate
(5.75%)
1% Increase
(6.75%)
Net OPEB Liability 18,239,156 $ 13,082,000 $ 8,900,297 $ 1% Decrease
(Non- Medicare

5.5%
decreasing to

2.75%)
Discount Rate
(Non- Medicare

6.5%
decreasing to

3.75%)
1% Increase
(Non- Medicare

7.5%
decreasing to

4.75%)
Net OPEB Liability 8,989,175 $ 13,082,000 $ 17,547,963 $ 29 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Notes to the Financial Statements
Year Ended June 30, 2023

NOTE 10: SOUTH PLACER WASTEW ATER AUTHORITY (CONTINUED)

Under the terms of the Reallocation and Repayment Agreement, effective January 31, 2019, the three agencies are responsible for the repayment of all the revenue bonds. The City’s share of this obligation is 64.57%. The City’s net investment in SPWA Reserve s at June 30, 2023, was a liability of $1,970,423, which includes the City’s rate stabilization fund balance of $100,944,819. During the year ended June 30, 2023, the City paid $21,301,533 to SPWA based on connection fees collected during the fiscal year.

SPWA’s financial statements can be obtained from the City of Ro seville, 311 Vernon Street, Roseville, California, 95678.

NOTE 11: MUNICIPAL SOLID WASTE LANDFILL CLOSURE AND POST CLOSUR E CARE COSTS

State and federal laws and regulations require that the City perform certain maintenance and monitoring functions at the Roseville sanitary landfill site, which is closed, through the year 2024. Accordingly, the City has recorded a liability and expense in the Waste Services Enterprise Fund for the estimated postclosure care cost. The recorded amount is based on applicable state and local laws and regulations concerning closure and postclosure care. If additional postclosure care requirements are determined (due to changes in technology or applicable laws or regulations, for example), these costs may result in increased charges to future landfill users or the usage of future tax revenues. During fiscal year 2023, the changes of landfill closure liabilities were as follows:

Beginning Balance 584,071$
Deductions (213,888)
Ending Balance 370,183$
30 REQUIRED SUPPLEMENTARY INFORMATION

31 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Schedule of the Environmental Utilities Enterprise Funds' Proportionate Share of the City's Miscellaneous Plan Net Pension Liability
As of June 30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018
Proportionate of the City's miscellaneous plan 23.04% 22.92% 22.24% 23.89% net pension liability
Proportionate share of the City's miscellaneous plan 38,280,956$ 40,337,310$ 45,402,874$ 54,604,965$ net pension liability
Covered payroll 15,090,600$ 15,784,820$ 16,538,824$ 18,089,649$ Proportionate share of the net pension liability as a
percentage of covered payroll 253.67% 255.54% 274.52% 301.86% Miscellaneous plan fiduciary net position as a
percentage of the total pension liability 67.62% 66.97% 63.89% 63.85% Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 32 2019 2020 2021 2022 2023

24.38% 23.84% 24.84% 23.76% 17.09%
56,591,332$ 59,010,067$ 65,734,461$ 45,893,780$ 75,290,458$ 18,632,338$ 16,513,256$ 17,837,256$ 21,891,924$ 20,643,286$ 303.73% 357.35% 368.52% 209.64% 364.72%

65.21% 65.09% 64.55% 75.39% 63.29%
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
33 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Schedule of Pension Contributions
Last Ten Years**
2015 2016 2017 2018
Valuation Date June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016 Miscellaneous Miscellaneous Miscellaneous Miscellaneous Actuarial Determined Contribution 3,657,536$ 3,906,008$ 4,656,142$ 4,392,306$ (3,657,536) (3,906,008) (4,656,142) (4,392,306) -$ -$ -$ -$ Covered payroll 15,784,820$ 16,538,824$ 18,089,649$ 18,632,338$ Contributions as a percentage of covered payroll 23.17% 23.62% 25.74% 23.57% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality
Contribution in relation to the Actuarially Determined Contribution Contribution Deficiency (Excess)
Entry age normal cost method
Level percentage of pay, a summary of the current policy is provided in the table below:
**Historical information is required only for measurement periods for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown.

All other actuarial assumptions used in the June 30, 2018 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.

2.75%

7.00%, net of pension plan investment expenses, including inflation.

Varies by Entry Age and Service
Market Value

2.50%
34 2019 2020 2021 2022 2023
June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous 4,962,133$ 5,489,807$ 6,761,884$ 720,789$ 5,720,618$ (4,962,133) (5,489,807) (6,761,884) (720,789) (5,720,618) -$ -$ -$ -$ -$ 16,513,256$ 17,837,256$ 21,891,924$ 20,643,286$ 14,848,222$

30.05% 30.78% 30.89% 3.49% 38.53%
35 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Schedule of the Environmental Utilities Enterprise Funds' Proportionate Share of the City's Net OPEB Liability
Last Ten Years**
2018 2019 2020
Measurement Date June 30, 2018 June 30, 2019 June 30, 2020 Proportionate of the City's mescellaneous plan 17.65% 18.74% 18.84% net OPEB liability
Proportionate share of City's miscellaneous plans 25,203,000$ 26,400,000$ 22,076,000$ net OPEB liability
Covered payroll 18,089,649$ 18,632,338$ 16,513,256$ Proportionate share of net OPEB liability as a 139.32% 141.69% 133.69% percentage of covered payroll
Miscellaneous plan fiduciary net position as a 37.07% 40.98% 48.58% percentage of the total OPEB liability
36 2021 2022 2023
June 30, 2021 June 30, 2022 June 30, 2023

18.98% 16.93% 16.63%
18,906,000$ 14,172,000$ 13,082,000$
17,837,256$ 21,891,924$ 20,643,286$
105.99% 64.74% 63.37%

58.95% 60.73% 64.17%
37 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Schedule of OPEB Contributions
Last Ten Years**
2018 2019 2020
Valuation Date June 30, 2017 June 30, 2017 June 30, 2019 2,796,000$ 2,873,000$ 3,106,000$
(2,796,000) (2,873,000) (3,106,000) -$ -$ -$ 18,089,649$ 18,632,338$ 16,513,256$

15.46% 15.42% 18.81%
Notes to Schedule:

Methods and assumptions used to determine contributions:

Most Recent Valuation Date June 30, 2021
Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increase
Discount rate
Mortality
Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Actuarially Determined Contribution
Level percent of pay
Contribution in Relation to the Actuarially Determined Contributions ** 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.

Entry Age Normal, level percent of payroll
Investment gains and losses spread over 5 year rolling period Derived using CalPERS membership data

5.75%

2.50%
Aggregate of 2.75%
38 2021 2022 2023
June 30, 2019 June 30, 2022 June 30, 2022
2,914,000$ 1,809,309$ 1,761,283$
(2,914,000) (1,809,309) (1,761,283) -$ -$ -$ 17,837,256$ 21,891,924$ 20,643,286$

16.34% 8.26% 8.53%
Level percent of pay
Entry Age Normal, level percent of payroll
Investment gains and losses spread over 5 year rolling period Derived using CalPERS membership data

5.75%

2.50%
Aggregate of 2.75%
39 THIS PAGE INTENTIONALLY LEFT BLANK
40 SUPPLEMENTARY INFORMATION

41 THIS PAGE INTENTIONALLY LEFT BLANK
42 FUND DESCRIPTIONS

Water Enterprise Fund:

Water Operations Fund – accounts for all revenues and expenses related to the operations of the City owned and operated water utility. This is funded primarily by customer user charges.

Water Construction Fund – accounts for water ut ility capital projects funded primarily by development fees and grants.

Water Rehabilitation Fund – accounts for water utility rehabilitation projects funded by customer user charges.

Water Meter Retrofit Fund – accounts for all revenues and expenses related to installing water meters.

Water Rate Stabilization Fund – accounts for all revenues and expenses related to maintaining t he short-term and long-term financial health of the water utility and mitigating risks associated with financial exposures. This is funded primarily by customer user charges.

Utility Shared Services – accounts for utility billing and meter reading activity for all utility funds.

Wastewater Enterprise Fund:

Wastewater Operations Fund – accounts for all revenues and expenses related to the operati ons of the City owned and operated wastewater utility. This is funded primarily by customer user charges.

Wastewater Construction Fund – accounts for regional development fees, local connection fees and deferred development fees.

Wastewater Rehabilitation Fund – accounts for wastewater utility rehabilitation projects funded by customer user charges.

Wastewater Regional Rehabilitation Fund – accounts for regional wastewater utility rehabilitation proje cts. This is funded by the regional wastewater facilities member agencies comprised of the City, South Placer Municipal Utility District and Placer County.

Wastewater Rate Stabilization Fund – accounts for all revenues and expenses related to maintaining t h e s h o r t - term and long-term financial health of the wastewater utility a nd mitigating risks associated with financial exposures. This is funded primarily by customer user charges.

Waste Services Enterprise Fund:

Waste Services Operations Fund – accounts for all revenues and expenses related to the operati ons of the City owned and operated solid waste utility. This is funded primarily by customer user charges.

Waste Services Capital Purchase Fund – accounts for waste services ut ility capital purchases funded by development fees.

Waste Services Rehabilitation Fund – accounts for waste services utility rehabilitation projects funded by customer user charges.

Waste Services Rate Stabilization Fund – accounts for all revenues and expenses related to maintaining the short-term and long-term financial health of the waste services utility and mitigating risks associated with financial exposures. This is funded primarily by customer user charges. 43 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Net Position
June 30, 2023
Assets:

Current:

Cash and investments in City Treasury 22,477,585$ 47,394,238$ 41,619,376$ 1,661,207$ Restricted cash and investments with fiscal agents - 5,361,059 - - Receivables:

Accounts, net of allowance for doubtful accounts 4,885,884 12,683 11,421 705 Accrued interest - 177,241 72,807 4,445 Notes and loans 2,189 - - 29,909 Prepaid expense 47,768 - - - Inventories 3,750,529 - - - Due from other funds - 385,000 - - Restricted:

Developer permit fee receivable - 4,224,011 - 42,966 Total Current Assets 31,163,955 57,554,232 41,703,604 1,739,232 Noncurrent:

Advances to other funds - 2,305,000 - - Land and construction in progress 6,526,492 24,134,978 1,006,204 - Capital assets being depreciated, net 478,176,049 116,650,869 25,512,151 2,257,699 Total Noncurrent Assets 484,702,541 143,090,847 26,518,355 2,257,699 Total Assets 515,866,496 200,645,079 68,221,959 3,996,931 Deferred Outflows of Resources:

Deferred charge on refunding - 1,192,871 - - Deferred outflows related to OPEB 720,000 - - - Deferred outflows related to pensions 6,673,918 - - - Total Deferred Outflows of Resources 7,393,918 1,192,871 - - Liabilities:

Current:

Accounts payable 657,181 2,668,560 242,592 - Accrued liabilities 391,566 87,136 - - Uneared revenues 108,472 - - - Deposits payable 82,122 - - - Due to other funds 385,000 - - - Current portion of compensated absences 984,749 - - - Current portion of long-term debt 78,543 3,125,000 - - Investment in JPA - - - - Total Current Liabilities 2,687,633 5,880,696 242,592 - Noncurrent:

Advances from other funds 2,305,000 - - - Landfill closure and post closure liability - - - - Compensated absences 596,160 - - - Net OPEB liability 3,799,000 - - - Net pension liability 22,992,912 - - - Long-term debt, non-current portion 248,580 21,948,751 - - Total Noncurrent Liabilities 29,941,652 21,948,751 - - Total Liabilities 32,629,285 27,829,447 242,592 - Deferred Inflows of Resources:

Deferred OPEB related items 2,628,000 - - - Total Deferred Inflows of Resources 2,628,000 - - - Net Position:

Net Investment in capital assets 498,006,882 103,174,790 26,144,808 2,729,959 Restricted for debt service - 4,134,075 - - Unrestricted (10,003,753) 66,699,638 41,834,559 1,266,972 Total Net Position 488,003,129$ 174,008,503$ 67,979,367$ 3,996,931$ Water Enterprise Fund
Operations Construction Rehabilitation Meter Retrofit 44 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Net Position
June 30, 2023
Assets:

Current:

Cash and investments in City Treasury
Restricted cash and investments with fiscal agents
Receivables:

Accounts, net of allowance for doubtful accounts
Accrued interest
Notes and loans
Prepaid expense
Inventories
Due from other funds
Restricted:

Developer permit fee receivable
Total Current Assets
Noncurrent:

Advances to other funds
Land and construction in progress
Capital assets being depreciated, net
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:

Deferred charge on refunding
Deferred outflows related to OPEB
Deferred outflows related to pensions
Total Deferred Outflows of Resources
Liabilities:

Current:

Accounts payable
Accrued liabilities
Uneared revenues
Deposits payable
Due to other funds
Current portion of compensated absences
Current portion of long-term debt
Investment in JPA
Total Current Liabilities
Noncurrent:

Advances from other funds
Landfill closure and post closure liability
Compensated absences
Net OPEB liability
Net pension liability
Long-term debt, non-current portion
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:

Deferred OPEB related items
Total Deferred Inflows of Resources
Net Position:

Net Investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
(CONTINUED)
12,926,097$ 12,086$ -$ 126,090,589$ - - - 5,361,059 - 9,283 - 4,919,976 40,957 16,251 311,701
- - - 32,098 - - - 47,768 - - - 3,750,529 - - (385,000) - -
- - - 4,266,977 12,967,054 37,620 (385,000) 144,780,697 - - (2,305,000) - - - - 31,667,674 - - - 622,596,768 - - (2,305,000) 654,264,442 12,967,054 37,620 (2,690,000) 799,045,139 - - - 1,192,871 - - - 720,000 - - - 6,673,918 - - - 8,586,789 29 - - 3,568,362 - - - 478,702 - - - 108,472 - - - 82,122 - - (385,000) - - - - 984,749 - - - 3,203,543 - - - - 29 - (385,000) 8,425,950 - - (2,305,000) - - - - - - - - 596,160 - - - 3,799,000 - - - 22,992,912 - - - 22,197,331 - - (2,305,000) 49,585,403 29 - (2,690,000) 58,011,353 - - - 2,628,000 - - - 2,628,000 - - - 630,056,439 - - - 4,134,075 12,967,025 37,620 - 112,802,061 12,967,025$ 37,620$ -$ 746,992,575$ Total
Interfund
Eliminations
Rate
Stabilization
Utility Shared
Services
Water Enterprise Fund
45 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Net Position
June 30, 2023
Assets:

Current:

Cash and investments in City Treasury
Restricted cash and investments with fiscal agents
Receivables:

Accounts, net of allowance for doubtful accounts
Accrued interest
Notes and loans
Prepaid expense
Inventories
Due from other funds
Restricted:

Developer permit fee receivable
Total Current Assets
Noncurrent:

Advances to other funds
Land and construction in progress
Capital assets being depreciated, net
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:

Deferred charge on refunding
Deferred outflows related to OPEB
Deferred outflows related to pensions
Total Deferred Outflows of Resources
Liabilities:

Current:

Deferred OPEB related items
Total Deferred Inflows of Resources
Net Position:

Net Investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
20,120,610$ 5,325,119$ 32,041,037$ 19,004,915$ - - - - 6,582,823 3,000,000 8,640 - 71,300 825,516 120,256 22,909 - 76,668,345 - - 47,572 - - - 120,995 - - - - - - - - 4,282,115 - - 26,943,300 90,101,095 32,169,933 19,027,824 - - - - 5,556,242 115,753,941 1,916,400 787,008 388,402,974 193,028,619 65,101,735 -
393,959,216 308,782,560 67,018,135 787,008 420,902,516 398,883,655 99,188,068 19,814,832 - - - - 846,000 - - - 9,315,069 - - - 10,161,069 - - - 1,133,247 3,004,545 215,981 106,962 492,782 812,552 - - 4,110 63,009 - 2,203,342 76,273 - - - - - - - 1,414,188 - - - 98,409 267,963 - - - 1,970,423 - - 3,219,009 6,118,492 215,981 2,310,304 - - - - - - - - 739,869 - - - 5,574,000 - - - 32,092,188 - - - 317,682 76,792,683 - - 38,723,739 76,792,683 - - 41,942,748 82,911,175 215,981 2,310,304 3,218,000 - - - 3,218,000 - - - 352,992,946 271,445,257 68,352,630 279,349 - 5,516,260 - - 32,909,891 39,010,963 30,619,457 17,225,179 385,902,837$ 315,972,480$ 98,972,087$ 17,504,528$ Construction Rehabilitation
Regional
Rehabilitation Operations
Wastewater Enterprise Fund
46 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Net Position
June 30, 2023
Assets:

Current:

Cash and investments in City Treasury
Restricted cash and investments with fiscal agents
Receivables:

Accounts, net of allowance for doubtful accounts
Accrued interest
Notes and loans
Prepaid expense
Inventories
Due from other funds
Restricted:

Developer permit fee receivable
Total Current Assets
Noncurrent:

Advances to other funds
Land and construction in progress
Capital assets being depreciated, net
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:

Deferred charge on refunding
Deferred outflows related to OPEB
Deferred outflows related to pensions
Total Deferred Outflows of Resources
Liabilities:

Current:

Deferred OPEB related items
Total Deferred Inflows of Resources
Net Position:

Net Investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
(CONTINUED)
Waste Services
Enterprise
Fund
14,943,305$ -$ 91,434,986$ 27,062,521$ - - - - - - 9,591,463 4,411,869 33,318 - 1,073,299 76,746 - - 76,668,345 - - - 47,572 24,833 - - 120,995 263,306 - - - - - - 4,282,115 - 14,976,623 - 183,218,775 31,839,275 - - - - - - 124,013,591 1,156,402 - - 646,533,328 1,330,927 - - 770,546,919 2,487,329 14,976,623 - 953,765,694 34,326,604 - - - - - - 846,000 460,000 - - 9,315,069 5,864,799 - - 10,161,069 6,324,799 34 - 4,460,769 1,282,194 - - 1,305,334 292,066 - - 2,270,461 193,581 - - 76,273 73,606 - - - - - - 1,414,188 872,077 - - 366,372 30,504 - - 1,970,423 - 34 - 11,863,820 2,744,028 - - - - - - - 370,183 - - 739,869 288,476 - - 5,574,000 3,709,000 - - 32,092,188 20,205,358 - - 77,110,365 81,486 - - 115,516,422 24,654,503 34 - 127,380,242 27,398,531 - - 3,218,000 1,828,000 - - 3,218,000 1,828,000 - - 693,070,182 2,601,391 - - 5,516,260 - 14,976,589 - 134,742,079 8,823,481 14,976,589$ -$ 833,328,521$ 11,424,872$ Rate
Stabilization Operations
Interfund
Eliminations
Wastewater Enterprise Fund
Total
47 THIS PAGE INTENTIONALLY LEFT BLANK
48 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Net Position
June 30, 2023
Assets:

Current:

Cash and investments in City Treasury
Restricted cash and investments with fiscal agents
Receivables:

Accounts, net of allowance for doubtful accounts
Accrued interest
Notes and loans
Prepaid expense
Inventories
Due from other funds
Restricted:

Developer permit fee receivable
Total Current Assets
Noncurrent:

Advances to other funds
Land and construction in progress
Capital assets being depreciated, net
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:

Deferred charge on refunding
Deferred outflows related to OPEB
Deferred outflows related to pensions
Total Deferred Outflows of Resources
Liabilities:

Current:

Deferred OPEB related items
Total Deferred Inflows of Resources
Net Position:

Net Investment in capital assets
Restricted for debt service
Unrestricted
Total Net Position
6,081,956$ 3,566,012$ 3,124,841$ -$ 39,835,330$ - - - - - - - - - 4,411,869 16,982 12,159 9,156 - 115,043 - - - - - - - - - 24,833 - - - - 263,306 - - - - - 41,403 - - - 41,403 6,140,341 3,578,171 3,133,997 - 44,691,784 - - - - - - 1,567,367 - - 2,723,769 220,685 329,365 - - 1,880,977 220,685 1,896,732 - - 4,604,746 6,361,026 5,474,903 3,133,997 - 49,296,530 - - - - - - - - - 460,000 - - - - 5,864,799 - - - - 6,324,799 14 147,387 - - 1,429,595 - 132 - - 292,198 - - - - 193,581 - - - - 73,606 - - - - - - - - - 872,077 - - - - 30,504 - - - - - 14 147,519 - - 2,891,561 - - - - - - - - - 370,183 - - - - 288,476 - - - - 3,709,000 - - - - 20,205,358 - - - - 81,486 - - - - 24,654,503 14 147,519 - - 27,546,064 - - - - 1,828,000 - - - - 1,828,000 175,393 1,715,972 - - 4,492,756 - - - - - 6,185,619 3,611,412 3,133,997 - 21,754,509 6,361,012$ 5,327,384$ 3,133,997$ -$ 26,247,265$ Interfund
Eliminations
Waste Services Enterprise Fund
Rehabiliation Total
Capital
Purchase
Rate
Stabilization
49 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Revenues, Expenses
and Changes in Net Position
Year Ended June 30, 2023
Operating Revenues:

Charges for services 38,140,013$ -$ -$ -$ Other 263,795 - - - Total Operating Revenues 38,403,808 - - - Operating Expenses:

Operations and administration 24,420,881 86,739 1,615,992 56 Depreciation and amortization 9,135,907 2,120,884 594,571 472,260 Total Operating Expenses 33,556,788 2,207,623 2,210,563 472,316 Operating Income (Loss) 4,847,020 (2,207,623) (2,210,563) (472,316) Nonoperating Revenues (Expenses):

Subventions and grants 54,235 - - - Interest and rents revenue (loss) 1,065,858 158,962 (1,173,910) (14,926) Interest and fiscal charges (expense) (160,979) (860,485) - - Increase (decrease) in SPWA reserves - - - - Pass through connection fees to SPWA - - - - Gain (loss) on disposal of capital assets (78,715) (27,695) - - Total Nonoperating
Revenues (Expenses) 880,399 (729,218) (1,173,910) (14,926) Income (Loss) Before Transfers 5,727,419 (2,936,841) (3,384,473) (487,242) and Capital Contributions
Capital contributions - connection/impact fees 498,570 15,870,543 - 241,486 Capital contributions from developers and other agencies 24,545,110 10,967 - 7,593 Transfers in 15,778 58,350 21,312,009 - Transfers out (27,132,789) (53,263) - - Changes in Net Position 3,654,088 12,949,756 17,927,536 (238,163) Net Position:

Net Position - Beginning 484,349,041 161,058,747 50,051,831 4,235,094 Net Position - Ending 488,003,129$ 174,008,503$ 67,979,367$ 3,996,931$ Water Enterprise Fund
Operations Construction Rehabilitation Meter Retrofit 50 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Revenues, Expenses
and Changes in Net Position
Year Ended June 30, 2023
Operating Revenues:

Charges for services
Other
Total Operating Revenues
Operating Expenses:

Operations and administration
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):

Subventions and grants
Interest and rents revenue (loss)
Interest and fiscal charges (expense)
Increase (decrease) in SPWA reserves
Pass through connection fees to SPWA
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
and Capital Contributions
Capital contributions - connection/impact fees
Capital contributions from developers and other agencies Transfers in
Transfers out
Changes in Net Position
Net Position:

Net Position - Beginning
Net Position - Ending
(CONTINUED)
-$ -$ -$ 38,140,013$ - - - 263,795 - - - 38,403,808 5,769 2,509 - 26,131,946 - - - 12,323,622 5,769 2,509 - 38,455,568 (5,769) (2,509) - (51,760) - - - 54,235 (62,482) 18,384 - (8,114) - - - (1,021,464) - - - - - - - - - - - (106,410) (62,482) 18,384 - (1,081,753) (68,251) 15,875 - (1,133,513) - - - 16,610,599 - - - 24,563,670 500,000 - (21,820,821) 65,316 - - 21,820,821 (5,365,231) 431,749 15,875 - 34,740,841 12,535,276 21,745 - 712,251,734 12,967,025$ 37,620$ -$ 746,992,575$ Interfund
Eliminations/
Reclassifications
Water Enterprise Fund
Rate
Stabilization
Utility Shared
Services Total
51 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Revenues, Expenses
and Changes in Net Position
Year Ended June 30, 2023
Operating Revenues:

Charges for services
Other
Total Operating Revenues
Operating Expenses:

Operations and administration
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):

Net Position - Beginning
Net Position - Ending
53,891,699$ -$ 394,000$ 13,658$ 72,317 - - - 53,964,016 - 394,000 13,658 39,105,096 - 726,730 174,245 7,283,283 5,687,247 1,568,695 - 46,388,379 5,687,247 2,295,425 174,245 7,575,637 (5,687,247) (1,901,425) (160,587) - 337,255 - - 161,427 503,094 (301,235) (433,730) (9,214) (576,820) - - - 12,703,843 - - - (23,926,341) - - (62,391) - - - 89,822 (10,958,969) (301,235) (433,730) 7,665,459 (16,646,216) (2,202,660) (594,317) - 22,289,732 - - 20,634,556 13,011,335 - - 1,066,800 - 7,319,866 7,400,000 (16,696,545) - (1,200,000) - 12,670,270 18,654,851 3,917,206 6,805,683 373,232,567 297,317,629 95,054,881 10,698,845 385,902,837$ 315,972,480$ 98,972,087$ 17,504,528$ Construction Rehabilitation
Regional
Rehabilitation
Wastewater Enterprise Fund
Operations
52 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Revenues, Expenses
and Changes in Net Position
Year Ended June 30, 2023
Operating Revenues:

Charges for services
Other
Total Operating Revenues
Operating Expenses:

Operations and administration
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):

Net Position - Beginning
Net Position - Ending
(CONTINUED)
Waste Services
Enterprise
Fund
-$ -$ 54,299,357$ 41,683,100$ - - 72,317 170,382 - - 54,371,674 41,853,482 7,191 23,926,341 63,939,603 34,018,061 - - 14,539,225 334,349 7,191 23,926,341 78,478,828 34,352,410 (7,191) (23,926,341) (24,107,154) 7,501,072 - - 337,255 5,192 (30,324) - (100,768) (104,188) - - (586,034) 211,460 - - 12,703,843 - - 23,926,341 - - - - (62,391) - (30,324) 23,926,341 12,291,905 112,464 (37,515) - (11,815,249) 7,613,536 - - 22,289,732 20 - - 33,645,891 - - (15,671,229) 115,437 63,537 (1,000,000) 15,671,229 (3,225,316) (6,061,453) (1,037,515) - 41,010,495 1,615,640 16,014,104 - 792,318,026 9,809,232 14,976,589$ -$ 833,328,521$ 11,424,872$ Rate
Stabilization Operations
Interfund
Eliminations/
Reclassifications
Wastewater Enterprise Fund
Totals
53 THIS PAGE INTENTIONALLY LEFT BLANK
54 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Revenues, Expenses
and Changes in Net Position
Year Ended June 30, 2023
Operating Revenues:

Charges for services
Other
Total Operating Revenues
Operating Expenses:

Operations and administration
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):

Net Position - Beginning
Net Position - Ending
-$ -$ -$ -$ 41,683,100$ - - - - 170,382 - - - - 41,853,482 202,488 345,762 (28) - 34,566,283 20,931 142,952 - - 498,232 223,419 488,714 (28) - 35,064,515 (223,419) (488,714) 28 - 6,788,967 - - - - 5,192 (37,128) (21,104) (69,547) - (231,967) - - - - 211,460 - - - - - - - - - - - - - - - (37,128) (21,104) (69,547) - (15,315) (260,547) (509,818) (69,519) - 6,773,652 930,119 - - - 930,139 - - - - - - 651,466 - (616,549) 98,454 - - - 616,549 (5,444,904) 669,572 141,648 (69,519) - 2,357,341 5,691,440 5,185,736 3,203,516 - 23,889,924 6,361,012$ 5,327,384$ 3,133,997$ -$ 26,247,265$ Interfund
Eliminations/
Reclassifications
Rate
Stabilization
Waste Services Enterprise Fund
Rehabilitation
Capital
Purchase Totals
55 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Cash Flows
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers 38,202,401$ 675,859$ -$ -$ Cash paid to suppliers (15,377,468) (2,110,033) (2,214,379) (41,811) Cash paid to employees (10,064,753) (11,983) - - Changes in deposits (2,200) - - - Net Cash Provided (Used) by Operating Activities 12,757,980 (1,446,157) (2,214,379) (41,811) Cash Flows from Non-Capital
Financing Activities:

Cash transfers out (27,132,789) (53,263) - - Cash transfers in 15,778 58,350 21,312,009 - Payments (receipts) on advances to (from) other funds (385,000) - - - (Increase) decrease in due from other funds - 385,000 - - Increase (decrease) in due to other funds - 281,130 (281,130) - (Increase) decrease in notes and loans receivable - - - (7,295) Landfill payments - - - - Subventions and grants 54,235 - - - Net Cash Provided (Used) by
Non-Capital Financing Activities (27,447,776) 671,217 21,030,879 (7,295) Cash Flows from Capital
and Related Financing Activities:

Capital contributions 24,545,110 10,967 7,593 Acquisition and construction of capital assets (26,354,361) (12,570,253) (968,117) - Principal paid on capital debt - (2,975,000) - - Interest paid on capital debt (160,979) (860,485) - - Proceeds from capital debt issued - - - - Connection/impact fees received 498,570 15,870,543 - 241,486 Connection/impact fees paid to SPWA - - - - Net Cash Provided (Used) by
Capital and Related Financing Activities (1,471,660) (524,228) (968,117) 249,079 Cash Flows from Investing Activities:

Fair market adjustment 683,029 (732,473) (1,857,379) (42,997) Interest received 382,829 564,528 683,469 42,004 Net Cash Provided (Used) by
Investing Activities 1,065,858 (167,945) (1,173,910) (993) Net Increase (Decrease) in Cash
and Cash Equivalents (15,095,598) (1,467,113) 16,674,473 198,980 Cash and Cash Equivalents at Beginning of Year 37,573,183 54,222,410 24,944,903 1,462,227 Cash and Cash Equivalents at End of Year 22,477,585$ 52,755,297$ 41,619,376$ 1,661,207$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) 4,847,020$ (2,207,623)$ (2,210,563)$ (472,316)$ Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Depreciation and amortization 9,135,907 2,120,884 594,571 472,260 (Increase) decrease in receivables (301,016) 675,859 (29,594) (41,752) (Increase) decrease in inventory (345,724) - - - (Increase) decrease in prepaid expense (47,768) - - Increase (decrease) in accounts payable 111,041 (2,023,294) (568,793) (3) Increase (decrease) in accrued liabilities 59,766 (11,983) - - Increase (decrease) in deposits payable (2,200) - - - Increase (decrease) in subscriptions - - - - Increase (decrease) in unearned revenue 99,609 - - - Increase (decrease) in net pension liability 7,542,533 - - - Increase (decrease) in net OPEB liability (443,000) - - - (Increase) decrease in deferred pension related items (8,012,579) - - - (Increase) decrease in deferred OPEB related items (63,000) - - - Increase (decrease) in compensated absences 177,391 - - - Total Adjustments 7,910,960 761,466 (3,816) 430,505 Net Cash Provided (Used) by
Operating Activities 12,757,980$ (1,446,157)$ (2,214,379)$ (41,811)$ Non-Cash Investing, Capital, and Financing Activities:

Net amortization of premium and deferred loss (461,965)$ -$ -$ -$ Gain/(Loss) on disposition of capital assets (106,410) - - Water Enterprise Fund
Operations Construction Rehabilitation Meter Retrofit 56 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Cash Flows
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers
Cash paid to suppliers
Cash paid to employees
Changes in deposits
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:

Cash transfers out
Cash transfers in
Payments (receipts) on advances to (from) other funds
(Increase) decrease in due from other funds
Increase (decrease) in due to other funds
(Increase) decrease in notes and loans receivable
Landfill payments
Subventions and grants
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:

Capital contributions
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from capital debt issued
Connection/impact fees received
Connection/impact fees paid to SPWA
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:

Fair market adjustment
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Depreciation and amortization
(Increase) decrease in receivables
(Increase) decrease in inventory
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in subscriptions
Increase (decrease) in unearned revenue
Increase (decrease) in net pension liability
Increase (decrease) in net OPEB liability
(Increase) decrease in deferred pension related items
(Increase) decrease in deferred OPEB related items
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:

Net amortization of premium and deferred loss
Gain/(Loss) on disposition of capital assets
(CONTINUED)
-$ -$ (82,433)$ 38,795,827$ (5,764) (13,596) 82,433 (19,680,618) - - - (10,076,736) - - (2,200) (5,764) (13,596) - 9,036,273 - - 21,820,821 (5,365,231) 500,000 - (21,820,821) 65,316 - - (385,000) (770,000) - - 385,000 770,000 - - - - - - - (7,295) - - - - - - - 54,235 500,000 - - (5,252,975) - - - 24,563,670 - - - (39,892,731) - - - (2,975,000) - - - (1,021,464) - - - - - - - 16,610,599 - - - - - - - (2,714,926) (244,659) (297) - (2,194,776) 176,238 18,681 - 1,867,749 (68,421) 18,384 - (327,027) 425,815 4,788 - 741,345 12,500,282 7,298 - 130,710,303 12,926,097$ 12,086$ -$ 131,451,648$ (5,769)$ (2,509)$ -$ (51,760)$ - - - 12,323,622 - (11,087) - 292,410 - - - (345,724) - - - (47,768) 5 - - (2,481,044) - - - 47,783 - - - (2,200) - - - - - - - 99,609 - - - 7,542,533 - - - (443,000) - - - (8,012,579) - - - (63,000) - - - 177,391 5 (11,087) - 9,088,033 (5,764)$ (13,596)$ -$ 9,036,273$ -$ -$ -$ (461,965)$ - - - - Interfund
Eliminations/
Reclassifications Total
Water Enterprise Fund
Rate
Stabilization
Utility Shared
Services
57 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Cash Flows
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers
Cash paid to suppliers
Cash paid to employees
Changes in deposits
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:

Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Net amortization of premium and deferred loss
Gain/(Loss) on disposition of capital assets
51,910,857$ 753,561$ 389,896$ 2,198,780$ (26,847,507) - (1,485,673) (83,488) (11,199,375) - - - (10,054) - - - 13,853,921 753,561 (1,095,777) 2,115,292 (16,696,545) - (1,200,000) - 1,066,800 - 7,319,866 7,400,000 - - - - - - - - - - - - - (44,817,061) - - - - - - - 337,255 - - (15,629,745) (44,479,806) 6,119,866 7,400,000 20,634,556 13,011,335 - - (20,699,806) (11,173,265) (234,201) (507,659) - - - - (9,214) (576,820) - - 45,209,363 - -
- 22,289,732 - - - (23,926,341) - - (74,464) 44,834,004 (234,201) (507,659) (202,011) (166,726) (832,643) (924,252) 378,988 669,820 515,857 490,522 176,977 503,094 (316,786) (433,730) (1,673,311) 1,610,853 4,473,102 8,573,903 21,793,921 3,714,266 27,567,935 10,431,012 20,120,610$ 5,325,119$ 32,041,037$ 19,004,915$ 7,575,637$ (5,687,247)$ (1,901,425)$ (160,587)$ 7,283,283 5,687,247 1,568,695 - (2,056,256) (207,211) (4,104) (18,220) 20,203 - - - (47,572) - - - (135,214) 323,793 (758,943) 90,757 16,143 573,970 - - (10,054) - - - (49,680) - - - 3,097 63,009 - 2,203,342 12,824,405 - - - (424,000) - - - (10,984,480) - - - (415,000) - - - 253,409 - - - 6,278,284 6,440,808 805,648 2,275,879 13,853,921$ 753,561$ (1,095,777)$ 2,115,292$ -$ -$ -$ -$ - - - - Operations Construction Rehabilitation
Regional
Rehabilitation
Wastewater Enterprise Fund
58 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Cash Flows
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers
Cash paid to suppliers
Cash paid to employees
Changes in deposits
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:

Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Net amortization of premium and deferred loss
Gain/(Loss) on disposition of capital assets
(CONTINUED)
Waste Services
Enterprise
-$ (902,855)$ 54,350,239$ 41,427,371$ (12,267) (23,597,456) (52,026,391) (26,294,059) - 573,970 (10,625,405) (6,020,565) - - (10,054) 1,300 (12,267) (23,926,341) (8,311,611) 9,114,047 (1,000,000) 15,671,229 (3,225,316) (6,061,453) - (15,671,229) 115,437 63,537 - - - - - - - - - - - - - - (44,817,061) - - - - (213,888) - - 337,255 5,192 (1,000,000) - (47,589,685) (6,206,612) - - 33,645,891 - - - (32,614,931) (73,746) - - - - - - (586,034) 211,460 - - 45,209,363 - - - 22,289,732 - - 23,926,341 - - - 23,926,341 67,944,021 137,714 (183,166) - (2,308,798) (648,622) 152,842 - 2,208,029 544,456 (30,324) - (100,769) (104,166) (1,042,591) - 11,941,956 2,940,983 15,985,896 - 79,493,030 24,121,538 14,943,305$ -$ 91,434,986$ 27,062,521$ (7,191)$ (23,926,341)$ (24,107,154)$ 7,501,072$ - - 14,539,225 334,349 (5,092) - (2,290,883) (619,692) - - 20,203 (42,384) - - (47,572) (24,833) 16 - (479,591) 210,742 - - 590,113 (18,126) - - (10,054) 1,300 - - (49,680) (23,252) - - 2,269,448 193,581 - - 12,824,405 9,029,740 - - (424,000) (223,000) - - (10,984,480) (6,833,086) - - (415,000) (460,000) - - 253,409 87,636 (5,076) - 15,795,543 1,612,975 (12,267)$ (23,926,341)$ (8,311,611)$ 9,114,047$ -$ -$ -$ -$ - - - - Operations Total
Interfund
Eliminations/
Reclassifications
Rate
Stabilization
Wastewater Enterprise Fund
59 ENVIRONMENTAL UTILITIES ENTERPRISE FUNDS
Combining Statement of Cash Flows
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers
Cash paid to suppliers
Cash paid to employees
Changes in deposits
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:

Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Net amortization of premium and deferred loss
Gain/(Loss) on disposition of capital assets
Totals
-$ -$ 1,091$ (4,862)$ 41,423,600$ (206,139) (267,277) 24 4,862 (26,762,589) - (20,871) - - (6,041,436) - - - - 1,300 (206,139) (288,148) 1,115 - 8,620,875 - - - 616,549 (5,444,904) - 651,466 - (616,549) 98,454 - - - - - - - - - - - - - - - - - - - - - - - - (213,888) - - - - 5,192 - 651,466 - - (5,555,146) - - - - - (66,221) (323,713) - - (463,680) - - - - - - - - - 211,460 - - - - - 930,139 - - - 930,139 - - - - - 863,918 (323,713) - - 677,919 (144,096) (60,786) (48,313) - (901,817) 106,947 39,682 (21,234) - 669,851 (37,149) (21,104) (69,547) - (231,966) 620,630 18,501 (68,432) - 3,511,682 5,461,326 3,547,511 3,193,273 - 36,323,648 6,081,956$ 3,566,012$ 3,124,841$ -$ 39,835,330$ (223,419)$ (488,714)$ 28$ -$ 6,788,967$ 20,931 142,952 - - 498,232 (3,654) (1,208) 1,091 - (623,463) - - - - (42,384) - - - - (24,833) 3 58,690 (4) - 269,431 - 132 - - (17,994) - - 1,300 - - - - (23,252) - - - - 193,581 - - - - 9,029,740 - - - - (223,000) - - - - (6,833,086) - - - - (460,000) - - - - 87,636 17,280 200,566 1,087 - 1,831,908 (206,139)$ (288,148)$ 1,115$ -$ 8,620,875$ -$ -$ -$ -$ -$ - - - - - Capital
Purchase Rehabilitation
Interfund
Eliminations/
Reclassifications
Rate
Stabilization
Waste Services Enterprise Fund
60 1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com

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 Public Utilities Commission
Environmental Utilities Department
Roseville, California

We have audited, in accordance with the auditing standards gene rally 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 Environmental Utilities Enterprise Funds, (the “Funds”), enterprise funds of the City of Roseville, Calif ornia (the “City”) as of and for the year ended June 30, 2023, and the related notes to the financial statement s, which collectively comprise the Funds’ basic financial statements, and have issued our report thereon dated June 21, 2024.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statement s, we considered the City’s internal control over Funds’ 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 allo w 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 b asis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less s evere 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 contr ol 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 or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Funds’ 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 ma terial 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.

61 To the Public Utilities Commission
Environmental Utilities Department
Roseville, 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 e ffectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Sacramento, California
June 21, 2024
62 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
),6&$/<($5(1'('-81( $118$/),1$1&,$/5(3257

&,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867

$QQXDO)LQDQFLDO5HSRUW

)LVFDO<HDU(QGHG-XQH

&,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867

$QQXDO)LQDQFLDO5HSRUW

)LVFDO<HDU(QGHG-XQH

7DEOHRI&RQWHQWV

3DJH

,QGHSHQGHQW$XGLWRUV¶5HSRUW )LQDQFLDO6WDWHPHQWV
6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ 6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ 1RWHVWR)LQDQFLDO6WDWHPHQWV 5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ
6FKHGXOHRI&KDQJHVLQ1HW23(%/LDELOLW\DQG5HODWHG5DWLRV 6FKHGXOHRI(PSOR\HU&RQWULEXWLRQV 6FKHGXOHRI,QYHVWPHQW5HWXUQV
()RXUWK6WUHHW6XLWH
6DQWD$QD&$

1%UHD%OYG6XLWH
%UHD&$

:DWHUZD\$YHQXH6XLWH

7KH:RRGODQGV7;

5LYHU3OD]D'U6XLWH
6DFUDPHQWR&$

$YHQLGDGHOD&DUORWDௗ6XLWH
/DJXQD+LOOV&$

ZZZOVOFSDVFRP
,1'(3(1'(17$8',7256¶5(3257

7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5RVHYLOOH&DOLIRUQLD

5HSRUWRQWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWV

Opinion

:HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRIWKH&L W\RI5RVHYLOOH2WKHU3RVW(PSOR\PHQW%HQHILW 7UXVW
23(%7UXVW
DSHQVLRQ
DQGRWKHUHPSOR\HHEHQHILW
WUXVWIXQGRIWKH&LW\RI5RVHYLOOH&DOLIRUQLD
WKH³&LW\´

DVRIDQGIRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRW HVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\ FRPSULVHWKH23(%7UXVW¶VEDVLFILQDQFLDOVWDWHPHQWVDVOLVWHGLQWKHWDEOHRIFRQWHQWV
,QRXURSLQLRQWKHILQDQFLDOVWDWHPHQWVUHIHUUHGWRDERYHSUHVHQWIDLUO\LQDOOPDWHULDOUHVSHFWVWKHILQDQFLDOSRVLWLRQ RIWKH23(%7UXVWRIWKH&LW\DVRI-XQHDQGWKHFKDQJHVLQILQDQFLDOSRVLWLRQIRUWKH\HDUWKHQHQGHGLQ DFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD
Basis for Opinion

:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Auditing Standards LVVXHG E\ WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV2XUUHVSRQVLELOLWLHV XQGHUWKRVHVWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH $XGLWRU¶V 5HVSRQVLELOLWLHV IRU WKH $XGLW RI WKH )LQDQFLDO 6WDWHPHQWV VHFWLRQ RI RXU UHSRUW :H DUH UHTXLUHG WR EH LQGHSHQGHQW RI WKH &LW\ DQG 23(% 7UXVW DQG WR PHHW RXU RWKHU HWKLFDO UHVSRQVLELOLWLHV LQ DFFRUGDQFH ZLWK WKH UHOHYDQWHWKLFDOUHTXLUHPHQWVUHODWLQJWRRXUDXGLW:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQW DQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQV
(PSKDVLVRI0DWWHU

$VGLVFXVVHGLQ1RWHWKHILQDQFLDOVWDWHPHQWVSUHVHQWRQO\W KH23(%7UXVWDQGGRQRWSXUSRUWWRDQGGRQRW SUHVHQWIDLUO\WKHILQDQFLDOSRVLWLRQRIWKH&LW\DVRI-XQH WKHFKDQJHVLQLWVILQDQFLDOSRVLWLRQRUZKHUH DSSOLFDEOHLWVFDVKIORZVIRUWKH\HDUWKHQHQGHGLQDFFRUGDQF HZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ WKH8QLWHG6WDWHVRI$PHULFD2XURSLQLRQLVQRWPRGLILHGZLWKUHVSHFWWRWKLVPDWWHU
Responsibilities of Management for the Financial Statements
0DQDJHPHQWLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWK DFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDDQGIRUWKHGHVLJQLPSOHPHQWDWLRQDQG PDLQWHQDQFHRILQWHUQDOFRQWUROUHOHYDQWWRWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHH IURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRUHYHQWV FRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRU WZHOYH PRQWKV EH\RQG WKH ILQDQFLDO VWDWHPHQW GDWH LQFOXGLQJ DQ\ FXUUHQWO\ NQRZQ LQIRUPDWLRQ WKDW PD\ UDLVH VXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU

7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5RVHYLOOH&DOLIRUQLD

Auditor’s Responsibilities for the Audit of the Financial Statements
2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURP PDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLV VXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHVRXURSLQLRQV 5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXWLVQRWDEVROXWHDVVXUDQFHDQGWKHUHIRUHLVQRWDJXDUDQWHH WKDW DQ DXGLW FRQGXFWHG LQ DFFRUGDQFH ZLWK JHQHUDOO\ DFFHSWHG DXGLWLQJ VWDQGDUGV DQG Government Auditing Standards ZLOO DOZD\V GHWHFW D PDWHULDO PLVVWDWHPHQW ZKHQ LW H[LVWV 7KH ULVN RI QRW GHWHFWLQJ D PDWHULDO PLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDVIUDXGPD\LQYROYHFROOXVLRQIRUJHU\ LQWHQWLRQDORPLVVLRQVPLVUHSUHVHQWDWLRQVRUWKHRYHUULGHRILQWHUQDOFRQWURO0LVVWDWHPHQWVDUHFRQVLGHUHGPDWHULDO LIWKHUHLVDVXEVWDQWLDOOLNHOLKRRGWKDWLQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\ZRXOGLQIOXHQFHWKHMXGJPHQWPDGHE\ DUHDVRQDEOHXVHUEDVHGRQWKHILQDQFLDOVWDWHPHQWV
,Q SHUIRUPLQJ DQ DXGLW LQ DFFRUGDQFH ZLWK JHQHUDOO\ DFFHSWHG DX GLWLQJ VWDQGDUGV DQG Government Auditing StandardsZH

• ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW
• ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKH ILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRU HUURU DQG GHVLJQ DQG SHUIRUP DXGLW SURFHGXUHV UHVSRQVLYH WR WK RVH ULVNV 6XFK SURFHGXUHV LQFOXGH H[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDOVWDWHPHQWV
• 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDX GLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUH DSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[ SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRI WKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG
• (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGW KHUHDVRQDEOHQHVVRIVLJQLILFDQWDFFRXQWLQJ HVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWV
• &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYH QWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVH VXEVWDQWLDOGRXEWDERXWWKH23(%7UXVW¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUDUHDVRQDEOHSHULRGRI WLPH

:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKHSODQQHG VFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUVWKDWZHLGHQWLILHG GXULQJWKHDXGLW

Required Supplementary Information

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¶V UHVSRQVHV WR RXU LQTXLULHVWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRWKHUNQRZOHGJH ZHREWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDO VWDWHPHQWV :H GR QRW H[SUHVV DQ RSLQLRQ RU SURYLGH DQ\ DVVXUDQFH RQ WKH LQIRUPDWLRQ EHFDXVH WKH OLPLWHG SURFHGXUHVGRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH
2
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5RVHYLOOH&DOLIRUQLD

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
2WKHU5HSRUWLQJ5HTXLUHGE\Government Auditing Standards
,QDFFRUGDQFHZLWKGovernment Auditing StandardsZHKDYHDOVRLVVXHGRXUUHSRUWGDWHG$SULORQRXU FRQVLGHUDWLRQ RI WKH &LW\¶V LQWHUQDO FRQWURO RYHU WKH 23(% 7UXV W¶V ILQDQFLDO UHSRUWLQJ DQG RQ RXU WHVWV RI LWV FRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUD FWVDQGJUDQWDJUHHPHQWVDQGRWKHUPDWWHUV7KH SXUSRVHRIWKDWUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUW HVWLQJRILQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQG FRPSOLDQFHDQGWKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGH DQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDO FRQWURORYHUILQDQFLDOUHSRUWLQJRURQFRPSOLDQFH7KDWUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFH ZLWK Government Auditing Standards LQ FRQVLGHULQJ WKH &LW\¶V LQWHUQDO FRQWURO RYHU WKH 23(% 7UXVW¶V ILQDQFLDO UHSRUWLQJDQGFRPSOLDQFH

6DFUDPHQWR&DOLIRUQLD
$SULO
3 CITY OF ROSEVILLE

OTHER POST-EMPLOYMENT BENEFIT TRUST
Statement of Fiduciary Net Position
June 30, 2023
Assets:

Cash held with City investment pool 578,032$
Investments:

Money market funds 483,059
Equity funds 81,295,878
Fixed income security funds 48,231,171
Real estate investment partnership 10,290,532
Receivables:

Accounts 3,212
Total Assets 140,881,884
Liabilities:

Accounts payable 5,981
Total Liabilities 5,981
Net Position:

Net Position restricted for postemployment benefits other than pensions 140,875,903 Total Net Position 140,875,903$
See Notes to Financial Statements.
4 CITY OF ROSEVILLE

OTHER POST-EMPLOYMENT BENEFIT TRUST
Statement of Changes in Fiduciary Net Position
Fiscal Year Ended June 30, 2023
Additions:

Contributions:

Intergovernmental 13,334$
Employer contributions 9,874,065
Investment income 10,468,395
Total Additions 20,355,794
Deductions:

Retiree health plan benefit payments 8,938,257
Contract services 40,390
Total Deductions 8,978,647
Net increase in fiduciary net position 11,377,147
Net position restricted for postemployement benefits other than pensions Beginning of the Year 129,498,756
End of the Year 140,875,903$
See Notes to Financial Statements.
5 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
1RWHWRWKH)LQDQFLDO6WDWHPHQWV
)LVFDO<HDU(QGHG-XQH

127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6

3ODQ'HVFULSWLRQ

7KH&LW\RI5RVHYLOOH&DOLIRUQLD
&LW\
VSRQVRUVDQGDGPLQLVWHUVDGHILQHGEHQHILWRWKHUSRVWHPSOR\PHQW EHQHILW SODQ
3ODQ
IRUEHQHILWVRWKHUWKDQSHQVLRQ7KH3ODQLVDVLQJ OHHPSOR\HUV\VWHPDQGDQLQWHJUDOSDUWRI WKH&LW\ 7KHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDUHLQFOXGHGDVDQRWKHUSRVWHPSOR\PHQWEHQHILWVWUXVWIXQG LQWKHEDVLF ILQDQFLDOVWDWHPHQWVRIWKH&LW\

%DVLVRI$FFRXQWLQJ

7KH3ODQ¶VILQDQFLDOVWDWHPHQWVDUHSUHSDUHGXVLQJWKH DFFUXDO EDVLVRIDFFRXQWLQJ&RQWULEXWLRQVDUHUHFRJQL]HG ZKHQWKH\EHFRPHGXH7UXVWPDLQWHQDQFHDQGSURIHVVLRQDOVHUYLFHIHHVDUHUHFRJQL]HGZKHQWKH\DUHLQFXUUHG
)DLU9DOXH0HDVXUHPHQWDQG$SSOLFDWLRQ

)DLU YDOXH PHDVXUHPHQWV DUH FDWHJRUL]HG ZLWKLQ WKH IDLU YDOXH K LHUDUFK\ HVWDEOLVKHG E\ JHQHUDOO\ DFFHSWHG DFFRXQWLQJSULQFLSOHV7KHKLHUDUFK\LVEDVHGRQWKHYDOXDWLRQ LQSXWVXVHGWRPHDVXUHWKHIDLUYDOXHRIWKHDVVHW 7KH KLHUDUFK\ JLYHV WKH KLJKHVW SULRULW\ WR XQDGMXVWHG TXRWHG SULFHV LQ DFWLYH PDUNHWV IRU LGHQWLFDO DVVHWV RU OLDELOLWLHV
/HYHO PHDVXUHPHQWV
DQG WKH ORZHVW SULRULW\ WR XQREVHUYDEOH LQSXWV /HYHO PHDVXUHPHQWV
7KH
WKUHHOHYHOVRIWKHIDLUYDOXHKLHUDUFK\DUHGHVFULEHGDVIROORZV

/HYHO ± ,QSXWV WR WKH YDOXDWLRQ PHWKRGRORJ\ DUH XQDGMXVWHG TXRWHG SULFHV IRU LGHQWLFDO DVVHWV RU OLDELOLWLHV LQ DFWLYHPDUNHWVWKDWWKH7UXVWKDVWKHDELOLW\WRDFFHVV
/HYHO±,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\LQFOXGH

• 4XRWHGSULFHVIRUVLPLODUDVVHWVRUOLDELOLWLHVLQDFWLYHPDUNHWV
• 4XRWHGSULFHVIRULGHQWLFDORUVLPLODUDVVHWVRUOLDELOLWLHVLQLQDFWLYHPDUNHWV
• ,QSXWVRWKHUWKDQTXRWHGSULFHVWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\ DQG
• ,QSXWV WKDW DUH GHULYHG SULQFLSDOO\ IURP RU FRUURERUDWHG E\ REVHUYDEOH PDUNHW GDWD E\ FRUUHODWLRQ RU RWKHU PHDQV

/HYHO ± ,QSXWV WR WKH YDOXDWLRQ PHWKRGRORJ\ DUH XQREVHUYDEOHDQG VLJQLILFDQW WR WKH IDLU YDOXH PHDVXUHPHQW 8QREVHUYDEOHLQSXWVUHIOHFWWKH7UXVW¶VRZQDVVXPSWLRQVDERXWWKHLQSXWVPDUNHW SDUWLFLSDQWVZRXOGXVHLQSULFLQJ WKHDVVHWRUOLDELOLW\
LQFOXGLQJDVVXPSWLRQVDERXWULVN

8VHRI(VWLPDWHV

7KH SUHSDUDWLRQ RI ILQDQFLDO VWDWHPHQWV LQ FRQIRUPLW\ ZLWK DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD UHTXLUHV PDQDJHPHQW WR PDNH HVWLPDWHVDQG DVVXPSWLRQV WKDW DIIHFW FHUWDLQ UHSRUWHG DPRXQWVDQGGLVFORVXUHV$FWXDOUHVXOWVFRXOGGLIIHUIURPWKRVHHVWLPDWHV
6 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
1RWHWRWKH)LQDQFLDO6WDWHPHQWV
)LVFDO<HDU(QGHG-XQH

127(
3/$1'(6&5,37,21

7KH &LW\ SURYLGHV PHGLFDO EHQHILWV WR VXEVWDQWLDOO\ DOO UHWLUHHV FRYHUHG E\ WKH 3ODQ $XWKRULW\ WR HVWDEOLVK DQG DPHQGWKHEHQHILWWHUPVZLWKWKH3ODQLVJUDQWHGWRWKH&LW\&RXQFLO
3ODQ0HPEHUVKLS

3ODQPHPEHUVKLSDW-XQHFRQVLVWHGRIWKHIROORZLQJ

,QDFWLYHSODQPHPEHUVFXUUHQWO\UHFHLYLQJEHQHILWV ,QDFWLYHSODQPHPEHUVHQWLWOHGWREHQHILWSD\PHQWV $FWLYH0HPEHUV
7RWDO

&RQWULEXWLRQV

&LW\ &RXQFLO KDV WKH DXWKRULW\ WR HVWDEOLVK DQG DPHQG FRQWULEXW LRQ UHTXLUHPHQWV &LW\ &RXQFLO HVWDEOLVKHV FRQWULEXWLRQV EDVHG RQ DFWXDULDOO\ GHWHUPLQHG DPRXQWV )RU WKH\HDU HQGHG -XQH FRQWULEXWLRQV WR WKH 3ODQZHUH

%HQHILWV3URYLGHG

%HQHILWVDUHSURYLGHGSXUVXDQWWRDJUHHPHQWVZLWKLQGLYLGXDOODERUXQLWVGRFXPHQWHGWKURXJKPHPRUDQGXPV RI XQGHUVWDQGLQJ DQG UHVROYHG E\ &LW\ &RXQFLO $ VXPPDU\ RI HOLJLELOLW\ DQG EHQHILWV RIIHUHG DUH VKRZQ RQ WKH IROORZLQJSDJH

7 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
1RWHWRWKH)LQDQFLDO6WDWHPHQWV
)LVFDO<HDU(QGHG-XQH

127(
3/$1'(6&5,37,21
&217,18('

(OLJLELOLW\
5HWLUHGLUHFWO\IURPWKH&LW\XQGHU&DO3(56
DJH
D
DQG\HDUVRI&DO3(56VHUYLFHRUGLVDELOLW\UHWLUHPHQW

%HQHILW

&LW\SDLGSUHPLXPVXEMHFWWRWKHIROORZLQJFDSV
0DQDJHPHQW&RQILGHQWLDO
5RVHYLOOH3ROLFH$VVRFLDWLRQ
0DQDJHPHQW&RQILGHQWLDO 5RVHYLOOH)LUHILJKWHUV$VVRFLDWLRQ 5RVHYLOOH3ROLFH$VVRFLDWLRQ ,QWHUQDWLRQDO%URWKHUKRRGRI(OHFWULFDO:RUNHUV 5RVHYLOOH)LUHILJKWHUV$VVRFLDWLRQ
,QWHUQDWLRQDO%URWKHUKRRGRI(OHFWULFDO:RUNHUV 6WDWLRQDU\(QJLQHHUV/RFDO

5RVHY LOOH3ROLFH2IILFHUV$VVRFLDWLRQ
&LW\SDLGSUHPLXPVXEMHFWWRWKHIROORZLQJFDSV

6XEMHFWWRYHVWLQJVFKHGXOH
6WDWLRQDU\(QJLQHHUV/RFDO

5RVHY LOOH3ROLFH2IILFHUV$VVRFLDWLRQ /HVVWKDQ\HDUV E

\HDUV
\HDUV
\HDUV
\HDUV
\HDUV
3D\UROO \HDUV
\HDUV
\HDUV
\HDUV

\HDUV
\HDUV
)LY H\HDUV&LW\VHUY LFHUHTXLUHG
6WDWLRQDU\(QJLQHHUV/RFDO
YHVWHGLIGLVDEOHG
0DQDJHPHQW&RQILGHQWLDO 0XVWUHWLUHIURP&LW\WRUHFHLY H&LW\KHDOWK ,QWHUQDWLRQDO%URWKHUKRRGRI(OHFWULFDO:RUNHUV 6DYLQJVDFFRXQWFRQWULEXWLRQV 5RVHY LOOH3ROLFH2IILFHUV$VVRFLDWLRQ
5RVHYLOOH3ROLFH$VVRFLDWLRQ
3(0+&$0LQLPXP 3(0+&$0LQLPXP
5RVHYLOOH+HDOWK6DYLQJV$FFRXQW
5RVHYLOOH+HDOWK6DYLQJV$FFRXQW

(PSOR\HHFRQWULEXWHSHUFHQWRISD\UROOWRKHDOWKVDYLQJVDFFRXQW (PSOR\HHFRQWULEXWHSHUFHQWRISD\UROOWRKHDOWKVDYLQJVDFFRX QW 3D\UROO 3D\UROO

1RQ5HSUHVHQWHG
(OLJLEOHIRU3(0+&$
'HQWDO9LVLRQDQG/LIH
1RQH
6XUYLY LQJ6SRXVH&RQWULEXWLRQ
5HWLUHHPHGLFDOEHQHILWFRQWLQXHVWRVXUYLYLQJVSRXVHLIUHWLUHHOHFWV&DO3(56VXUYLYRUDQQXLW\

D
$JHIRU0LVFHOODQHRXV3(35$HPSOR\HHV

E
&LW\PXVWSD\DWOHDVWWKH3(0+&$PLQLPXP

F
(OLJLEOHIRU3(0+&$PLQLPXPRQO\
&LW\ FRQWULEXWLRQ RI PRQWK DIWHU \HDUV &LW\ 6HUYLFH \HDUVRI&LW\6HUY LFHUHTXLUHG

&LW\ FRQWULEXWLRQ RI PRQWK DIWHU \HDUV &LW\ 6HUYLFH \HDUVRI&LW\6HUYLFHUHTXLUHG
+LUHGDIWHU-DQXDU\DQGEHIRUH$XJXVW
PRQWK VXEMHFW WR 7LHU YHVWLQJ VFKHGXOH EDVHG RQ &LW\ 6HUYLFH (PSOR\HHV FRQWULEXWH WR SHUFHQW RI SD\UROO WR 3)0 WUXVW VWDUWLQJ

<HDUVRI&LW\6HUY LFH
7LHU1RQ5))
+LUHGRQRUDIWHU-DQXDU\
F

+ LUHGRQRUDIWHU2FWREHU
F

7LHU 5))
+LUHGRQRUDIWHU-DQXDU\
<HDUVRI&LW\6HUY LFH <HDUVRI&LW\6HUY LFH

+LUHGRQRUDIWHU-DQXDU\
*URXS
7L HU

&DO3(566HUYLFH 3HUFHQWRI&$3
7LHU 7LHU
+LUHGRQRUDIWHU-DQXDU\+ LUHGSULRUWR-DQXDU\ +LUHGRQRUDIWHU-DQXDU\
*URXS

7KH&LW\RI5RVHYLOOH2WKHU3RVW(PSOR\PHQW%HQHILW3ODQUHSRUW VWKHDVVHWVDQGDFWLYLWLHVRIDOOEHQHILWWLHUVLQD WUXVW IXQG $OO DVVHWV DFFXPXODWHG IRU WKH SD\PHQW RI EHQHILWVPD\ EH XVHG WR SD\ EHQHILWV RI DQ\ RI WKH SODQ PHPEHUVRUEHQHILFLDULHV

8 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
1RWHWRWKH)LQDQFLDO6WDWHPHQWV
)LVFDO<HDU(QGHG-XQH

127(
,19(670(176

,QYHVWPHQW3ROLF\

7KH 3ODQ
V SROLF\ UHJDUGLQJ WKH DOORFDWLRQ RI LQYHVWHG DVVHWV L V HVWDEOLVKHG DQG PD\ EH DPHQGHG E\ WKH &LW\ &RXQFLOE\DPDMRULW\YRWHRILWVPHPEHUV,WLVWKHSROLF \RIWKH&LW\&RXQFLOWRSXUVXHDQLQYHVWPHQWVWUDWHJ\ WKDW UHGXFHV ULVN WKURXJK WKH SUXGHQW GLYHUVLILFDWLRQ RI WKH SRUWIROLR DFURVV D EURDG VHOHFWLRQ RI GLVWLQFW DVVHW FODVVHV 7KH 3ODQ
V LQYHVWPHQW SROLF\ DLPV WR DFKLHYH ORQJWHUP JURZWK RI WUXVW DVVHWV 7KH IROORZLQJ ZDV WKH DGRSWHGDVVHWDOORFDWLRQSROLF\DVRI-XQH

7DU JHW
(TXLWLHV
)L[ HG,QFRPH

&RQFHQWUDWLRQV

7KHIROORZLQJLQYHVWPHQWVZHUHJUHDWHUWKDQRIWKHSRRO

)DLU9DOXH
3)00XOWL0DQDJHU)L[HG,QFRPH)XQG 3)00XOWL0DQDJHU'RPHVWLF(TXLW\)XQG

3)00XOWL0DQDJHU,QWHUQDWLRQDO(TXLW\)XQG
3)05HDO(VWDWH,QYHVWPHQW3DUWQHUVKLS

,QY HVWPHQW7 \SH

0RQH\ZHLJKWHGUDWHRIUHWXUQ

)RUWKH\HDUHQGHG-XQH WKH DQQXDO PRQH\ZHLJKWHGUDWHRIUHWXUQRQ 23(%SODQLQYHVWPHQWV QHWRI 23(% SODQ LQYHVWPHQW H[SHQVH ZDV
7KH PRQH\ZHLJKWHG UDWH RI UHWXUQ H[SUHVVHV LQYHVWPHQW SHUIRUPDQFHQHWRILQYHVWPHQWH[SHQVHDGMXVWHGIRUWKHFKDQJLQJDPRXQWVDFWXDOO\LQYHVWHG
)DLU9DOXH0HDVXUHPHQWV

7KH7UXVWKDVWKHIROORZLQJUHFXUULQJIDLUYDOXHPHDVXUHPHQWVDVRI-XQH

7KH 0RQH\ 0DUNHW )XQGV DUH EDVHG RQ FRVW DV WKH DPRXQWV DUH GXH ZLWKLQ GD\V DQG DUH QRW WUDGHG RQ WKH
PDUNHW

%DODQFHDW /HYHO
&DVKKHOGZLWK&LW\LQYHVWPHQWSRRO 8QFDWHJRUL]HG 0RQH\PDUNHWIXQGV
8QFDWHJRUL]HG
0XWXDO)XQGV(TXLW\

0XWXDO)XQGV)L[HG,QFRPH
5HDO(VWDWH,QYHVWPHQW3DUWQHUVKLS

7RWDO,QYHVWPHQWVE\)DLU9DOXH/HYHO ,QY HVWPHQW7 \SH
9 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
1RWHWRWKH)LQDQFLDO6WDWHPHQWV
)LVFDO<HDU(QGHG-XQH

127(
1(723(%/,$%,/,7<2)7+(&,7<

7KHFRPSRQHQWV RIWKH QHW 23(%OLDELOLW\RIWKH&LW\PHDVXUHGDVRI-XQH DUHVKRZQ EHORZ 7KHWRWDO 23(%OLDELOLW\LVEDVHGRQDQDFWXDULDOYDOXDWLRQDVRI-XQHUROOHGIRUZDUGWR-XQH
7RWDO23(%/LDELOLW\

3ODQ)LGXFLDU\1HW3RVLWLRQ

&LW\
V1HW23(%/LDELOLW\

3ODQILGXFLDU\QHWSRVLWLRQDVDSHUFHQWDJHRIWKHWRWDO23(%OLDELOLW\

$FWXDULDODVVXPSWLRQV

7KH WRWDO 23(% OLDELOLW\ ZDV GHWHUPLQHG E\ DQ DFWXDULDO YDOXDWL RQ DV RI -XQH UROOHG IRUZDUG WR -XQH XVLQJWKHIROORZLQJDFWXDULDODVVXPSWLRQVDSSOLHGWRDOOSHULRGVLQFOXGHGLQWKHPHDVXUHPHQW
,QIODWLRQ
3D\UROOLQFUHDVH
,QYHVWPHQWUDWHRIUHWXUQ
+HDOWKFDUHFRVWWUHQG IRUIRU1RQ0HGLFDUHGHFUHDVLQJWRLQ

IRUIRU0HGLFDUHGHFUHDVLQJWRLQ 0RUWDOLW\ ZLWKGUDZDO DQG GLVDELOLW\ UDWHV IRU VHUYLFH UHWLUHPH QWV DQG EHQHILFLDULHV ZHUH EDVHG RQ &DO3(56

0RUWDOLW\ 7DEOH SURMHFWHG IXOO\ JHQHUDWLRQDO ZLWK 6FDOH 03 PRGLILHG WR FRQYHUJH WR XOWLPDWH LPSURYHPHQWUDWHVLQ

/RQJWHUPH[SHFWHGUDWHRIUHWXUQ

7KH ORQJWHUP H[SHFWHG UDWH RI UHWXUQ ZDV GHULYHG EDVHG R Q WKH LQIODWLRQ DVVXPSWLRQ RI DQG ORQJ WHUP DVVHW DOORFDWLRQ RI
GRPHVWLF HTXLWLHV LQWHUQDWLRQDO HTXLW\ DQG IL[HG LQFRPH 7KH JHRPHWULF UHDO UDWHV RI UHWXUQ IRU HDFK PDMRU DVVHW FODVV LQFOXGHG LQ WKH 3ODQ¶V WDUJHW DVVHW DOORFDWLRQ DV RI -XQH DUHVXPPDUL]HGLQWKHIROORZLQJWDEOH

([SHFWHG5HDO
5DWHRI5HWXUQ
0XWXDO)XQGV(TXLW\
)L[HG,QFRPH
$VVHW&ODVV&RPSRQHQW

'LVFRXQWUDWH

7KHGLVFRXQWUDWHZDVVHWHTXDOWRWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQ RI ZDVXVHGVLQFHFXUUHQWDVVHWVIXWXUH&LW\FRQWULEXWLRQV DQGIXWXUHPHPEHUFRQWULEXWLRQVDUH SURMHFWHGWR EHVXIILFLHQWWRFRYHUDOOIXWXUHEHQHILWSD\PHQWVDQGH[SHQVHV 10 &,7<2)526(9,//(
27+(53267(03/2<0(17%(1(),775867
1RWHWRWKH)LQDQFLDO6WDWHPHQWV
)LVFDO<HDU(QGHG-XQH

127(
1(723(%/,$%,/,7<2 )7+(&,7<
&217,18('

6HQVLWLYLW\RIWKHQHW23(%OLDELOLW\WRFKDQJHVLQWKHGLVFRXQWUDWH
7KHIROORZLQJ SUHVHQWVWKHQHW23(%OLDELOLW\RIWKH&LW\ FDOF XODWHGXVLQJ WKHGLVFRXQWUDWH RI DVZHOO DV ZKDW WKH &LW\¶V QHW 23(% OLDELOLW\ ZRXOG EH LI LW ZHUH FDOFXODWHG XVLQJ D GLVFRXQW UDWH WKDW LV SHUFHQWDJHSRLQW ORZHU

RUSHUFHQWDJHSRLQWKLJKHU

WKDQWKHFXUUHQWUDWH

'HFUHDVH

&XUUHQW
'LVFRXQW5DWH

,QFUHDVH

&LW\
V1HW23(%/LDELOLW\

6HQVLWLYLW\RIWKHQHW23(%OLDELOLW\WRFKDQJHVLQWKHKHDOWKFDUHFRVWWUHQGUDWH
7KH IROORZLQJ SUHVHQWV WKH QHW 23(% OLDELOLW\ RI WKH &LW\ FDOF XODWHG XVLQJ WKH KHDOWKFDUH FRVW WUHQG UDWH RI ZLWK DQQXDO GHFUHDVHV IURP SULRU \HDU GHFUHDVLQJ WR DV ZHOO DV ZKDW WKH &LW\¶V QHW 23(% OLDELOLW\ ZRXOGEHLI LWZHUHFDOFXODWHGXVLQJDKHDOWKFDUHFRVWWUHQGUDWHWKDWLVSHUFHQWDJHSRLQWORZHU ZLWKDQQXDO
GHFUHDVHVIURP SULRU\HDUGHFUHDVLQJ WR
RU SHUFHQWDJHSRLQWKLJKHU
ZLWKDQQXDO GHFUHDVHVIURP
SULRU\HDUGHFUHDVLQJWR

'HFUHDVH

GHFUHDVLQJ
WR

&XUUHQW+HDOWKFDUH
&RVW7 UHQG5DWH

GHFUHDVLQJ
WR

,QFUHDVH

GHFUHDVLQJ
WR

&LW\
V1HW23(%/LDELOLW\

11

5(48,5(' 6833/(0(17$5< ,1)250$7,21
12 CITY OF ROSEVILLE

OTHER POST-EMPLOYMENT BENEFIT TRUST
Schedule of Changes in the City’s Net OPEB Liability and Related Ratios Last Ten Years**
2017 2018 2019
Measurement Date June 30, 2018 June 30, 2018 June 30, 2019 Total OPEB Liability
Service cost 6,814,000$ 6,665,000 $ 6,021,000 $ Interest on the total OPEB liability 14,435,000 15,256,000 14,291,000 Differences between expected and actual experiences - (29,958,000) - Changes in assumptions - 11,123,000 - Benefit payments, including refunds of employee contributions (8 ,475,000) ( 8,449,000) ( 8,550,000) Net change in total OPEB liability 12,774,000 (5,363,000) 11,762,000 Total OPEB liability - beginning 219,497,000 232,271,000 226,908,000 Total OPEB liability - ending (a) 232,271,000 226,908,000 238,670,000 Plan Fiduciary Net Position
Contributions - employer 12,129,300 14,213,477 15,342,178 Miscellaneous revenue - - 69,429 Net investment income 6,832,238 5,902,312 7,122,750 Benefit payments (6,886,960) ( 8,449,000) ( 8,550,000) Administrative expenses (183,025) (210,775) (144,591) Net change in plan fiduciary net position 11,891,553 11,456,014 13,839,766 Plan fiduciary net position - beginning 60,772,073 72,663,626 84,119,640 Plan fiduciary net position - ending (b) 72,663,626 84,119,640 97,959,406 Net OPEB Liability/(Assets) - ending (a) - (b) 159,607,374$ 142,788,360$ 140,710,594$ Plan fiduciary net position as a percentage of the total OPEB liability 31.28% 37.07% 41.04% Covered-employee payroll 101,578,000$ 106,770,729$ 108,508,739$ Net OPEB liability as a percentage of covered-employee payroll 157.13% 133.73% 129.68% Notes to Schedule:
** Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2017 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

Changes in assumptions: None
Changes of benefit terms: None
13 2020 2021 2022 2023
June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 5,701,000$ 5 ,414,588$ 5 ,759,625$ 5 ,143,281$ 14,961,000 14,125,117 14,588,405 12,237,069 (17,999,000) - ( 21,544,252) - (5,591,000) 7 ,744,727 ( 17,673,776) - (9,988,000) ( 10,333,464) ( 10,649,042) ( 11,021,257) (12,916,000) 16,950,968 ( 29,519,040) 6, 359,093 238,670,000 225,754,000 242,704,968 2 13,185,928 225,754,000 242,704,968 213,185,928 2 19,545,021 16,425,867 15,353,152 15,400,470 11,961,366 - - - - 5,318,871 28,457,424 ( 18,288,504) 10,511,924 (9,988,000) ( 10,333,464) ( 10,649,042) ( 11,021,257) (34,934) (81,197) (75 ,790) ( 40,389) 11,721,804 33,395,915 ( 13,612,866) 11,411,644 97,959,406 109,681,210 143,077,125 1 29,464,259 109,681,210 143,077,125 129,464,259 1 40,875,903 116,072,790$ 99,627,843$ 83,721,669$ 78,669,118$

48.58% 58.95% 60.73% 64.17%
107,995,767$ 115,547,480$ 128,628,850$ 1 42,721,264$ 107.48% 86.22% 65.09% 55.12%
14 CITY OF ROSEVILLE

OTHER POST-EMPLOYMENT BENEFIT TRUST
Schedule of Employer Contributions
Last Ten Years**
2017 2018 2019 2020
Valuation Date June 30, 2015 June 30, 2017 June 30, 2017 June 30, 2 019 16,740,000$ 15,132,000 $ 15,342,000 $ 13,739,000 $ (12,129,300) (14,213,000) (15,226,000) (16,485,000) 4,610,700$ 919,000$ 116,000$ ( 2,746,000)$ 101,578,000$ 106,770,729 $ 108,508,739 $ 107,995,767 $

11.94% 13.31% 14.03% 15.26%
Notes to Schedule:

Methods and assumptions used to determine contributions:

Most Recent Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, level percent of payroll Amortization Method Level percent of pay
Asset Valuation Method Investment gains and losses spread over 5 year rolling period Inflation 3.00% 2.75% 2.75% 2.75%
Salary Increase 3.25% CPI plus
merit increases

3.00% CPI plus
merit increases

3.00% CPI plus
merit increases
Investment rate of return 6.50% 6.25% 6.25% 6.25%
Tiers
CalPERS Hire
Age
Estimated
Retirement Age
Retirement age Misc. 32.9 57.9
Police 25.7 54.0
Fire 26.7 55.6
Misc. 36.6 60.9
Police 27.1 56.8
Fire 27.0 57.6
Mortality CalPERS 1997-2015 Mortality Tables with Scale MP-2021 Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions ** Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2017 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

Actuarial methods and assumptions used to set the actuarially determinedcontribution for Fiscal Year 2023 were from the June 30, 2021 actuarial valuation.
15 2021 2022 2023
June 30, 2019 June 30, 2021 June 30, 2021
14,026,000$ 10,687,000 $ 10,591,000 $
(15,353,152) (15,400,470) (11,961,366)
(1,327,152)$ ( 4,713,470)$ ( 1,370,366)$
115,547,480$ 128,628,850 $ 142,721,264 $

13.29% 11.97% 8.38%

2.75% 2.50% 2.50%

3.00% CPI plus
merit increases

2.75% CPI plus
merit increases

6.00% 5.75% 5.75%
16 CITY OF ROSEVILLE

OTHER POST-EMPLOYMENT BENEFIT TRUST
Schedule of Investment Returns
Last Ten Years**
2017 2018 2019 2020

2.05% 8.07% 6.93% 5.75%
Notes to Schedule:

Fiscal year 2017 was the first year of implementation, therfore only seven years are shown.

Annual money weighted rate of return, net investment expense 17 2021 2022 2023

25.81% -12.28% 7.94%
18 526(9,//(1$785$/*$6),1$1&,1*$87+25,7<

$&20321(1781,72)7+(&,7<2)526(9,//(&$/,)251,$

<($5(1'('-81( %$6,&),1$1&,$/67$7(0(176

526(9,//(1$785$/*$6),1$1&,1*$87+25,7<

$&20321(1781,72)7+(&,7<2)526(9,//(&$/,)251,$

%DVLF)LQDQFLDO6WDWHPHQWV

<HDU(QGHG-XQH

526(9,//(1$785$/*$6),1$1&,1*$87+25,7<

$&20321(1781,72)7+(&,7<2)526(9,//(&$/,)251,$

%DVLF)LQDQFLDO6WDWHPHQWV

<HDU(QGHG-XQH

7DEOHRI&RQWHQWV

3DJH

,QGHSHQGHQW$XGLWRUV¶5HSRUW
%DVLF)LQDQFLDO6WDWHPHQWV

6WDWHPHQWRI1HW3RVLWLRQ 6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HW3RVLWLRQ 6WDWHPHQWRI&DVK)ORZV
1RWHVWR)LQDQFLDO6WDWHPHQWV
,QGHSHQGHQW$XGLWRUV¶5HSRUWRQ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJ DQGRQ&RPSOLDQFHDQG2WKHU0DWWHUV%DVHGRQDQ$XGLWRI)LQDQFLDO6WDWHPHQWV 3HUIRUPHGLQ$FFRUGDQFHZLWKGovernment Auditing Standards
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com

Roseville City CouncilAugust 7, 2024

Roseville City Council
August 7, 2024