City of San Juan Bautista
The “City of History”
www.san-juan-bautista.ca.us
AGENDA
CITY COUNCIL MEETING
TUESDAY ~ JANUARY 24, 2023 ~ 6:00 P.M.
(RESCHEDULED FROM JANUARY 17, 2023)
CITY HALL COUNCIL CHAMBERS
311 Second Street
San Juan Bautista, California
– HYBRID MEETING –
PUBLIC PARTICIPATION BY ZOOM AND IN PERSON
THIS MEETING WILL BE OPEN TO THE PUBLIC UNDER THE FOLLOWING CONDITIONS:
All Attendees must comply and wear a face covering if not fully vaccinated and show proof. If providing proof attendees will not need to wear a face covering. If you are exempt from the state face covering guidance or not fully vaccinated, you will be required to wear a mask to attend the meeting; All attendees must comply with any other rules of procedures/instructions announced by the Mayor and/or City Staff. Any violations of the above may result in the Mayor closing the meeting, effective immediately, or clearing the room, as well as other enforcement actions. The meeting will be available through Zoom for those who wish to join or require accommodations with the instructions below:
The meeting can also be accessed by the public in the following methods: Through Zoom (https://zoom.us/join) per the instruction stated below, and on Facebook.
Join Zoom Webinar https://us02web.zoom.us/j/87023777420 or call 1 (669) 900-6833
Webinar ID: 870 2377 7420
PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE CITY COUNCIL. DURING THE MEETING: TO PROVIDE VERBAL PUBLIC COMMENTS ON AN AGENDA
ITEM DURING THIS MEETING CALL THE PHONE NUMBER LISTED ABOVE OR LOG INTO ZOOM AND ENTER THE MEETING ID NUMBER AS LISTED ABOVE.
When the Mayor announces public comment is open for the item which you wish to speak, press *9 on your telephone keypad or if joining by Zoom, use the raise your hand icon. When called to speak, please limit your comments to three (3) minutes, or such other time as the Mayor may decide, consistent with the time limit for all other speakers for the particular agenda item. Comments from other platforms will not be considered during the meeting. If you would like to participate during the meeting you MUST use Zoom.
If you are unable to join the meeting, written comments may be mailed to the Deputy City Clerk at City Hall (P.O. Box 1420, San Juan Bautista, CA 95045), or emailed to [email protected] not later than 5:00 p.m. on January 24, 2022, and will be read into the record during public comment on the item.
THIS MEETING WILL BE CONDUCTED PURSUANT TO GOVT. CODE §54953(e)(1)(A).
In order to minimize the spread of the COVID 19 virus the City Council is conducting this meeting by Zoom webinar and will be offering alternative options for public participation. You are encouraged to watch the meeting live on Zoom or Facebook.
City Council Meeting
January 24, 2023
If you challenge any planning or land use decision made at this meeting in court, you may be limited to raising only those issues you or someone else raised at the public hearing held at this meeting, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Please take notice that the time within which to seek judicial review of any final administrative determination reached at this meeting is governed by Section 1094.6 of the California Code of Civil Procedure.
A Closed Session may be called during this meeting pursuant to Government Code §54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the City.
Materials related to all items on this agenda are available in the agenda packet on the City website www.san-juanbautista.ca.us subject to Staff’s ability to post the documents before the meeting, or by emailing deputycityclerk@sanjuan-bautista.ca.us or calling the Deputy Clerk (831) 623-4661 during normal business hours.
1. Call to Order
Pledge of Allegiance
Roll Call
2. Ceremonial Items
A. Swearing in of Elizabeth Soto as Deputy City Clerk and Administrative Services Manager
3. Public Comment
This portion of the meeting is reserved for persons desiring to address the Council on matters not on this agenda. The law does not permit Council action or extended discussion of any item not on the agenda except under special circumstances. If Council action is requested, the Council may place the matter on a future agenda.
4. Consent Items
All matters listed under the Consent Agenda may be enacted by one motion authorizing actions indicated for those items so designated. There will be no separate discussion of these items unless requested by a member of the City Council, a staff member, or a citizen.
A. Adopt a Resolution of the City Council of the City of San Juan Bautista Proclaiming and Reaffirming the Existence of Local Emergencies in the City B. Approve the Affidavit of Posting Agenda
C. Approve the Affidavit of Posting Public Hearing Notice D. Adopt a Resolution of the City Council of the City of San Juan Bautista Approving the City of San Juan Bautista Debt Management Policy E. Waive Reading of Ordinances and Resolutions on the Agenda Beyond Title
5. Presentations, Proclamations, Informational Items and Reports A. Proclamation for San Benito County LULAC for their 35th Anniversary B. Proclamation for Black History Month
In compliance with the Americans with Disabilities Act, the City will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the Deputy City Clerk a minimum of 48 hours prior to the meeting at (831) 623-4661.
City Council Meeting
January 24, 2023
C. City Council and Staff Announcements
This is an opportunity for Council and staff to share the community calendar and announce upcoming dates of interest to the general public.
D. Reports from City Council Representatives to Regional Organizations and Committees and Report by Attendees to League of California Cities New Council Academy
E. Treasurer’s Report and Monthly Financial Statements
F. City Manager’s Report
a. Fire Department Update
b. Sherriff Department Update
6. Public Hearings
A. Adopt an Ordinance Amending Chapter 5, Article 1 of the City of San Juan Bautista Building Code, and adopting the California Building Standards Code 2022 Edition of the California Fire Code and Appendices Title 24, Part 9. (Continued to the next meeting)
B. Adopt an Ordinance Amending Chapter 5, Article 1 of the City of San Juan Bautista Municipal Code regarding the Adoption of the 2022 California Building Codes and Related International Codes. (Continued to the next meeting)
7. Action Items
A. Fiscal Year 2021-2022 Audit Presentation by Ryan Jolley; and Adopt a Resolution of the City Council of the City of San Juan Bautista Accepting the San Juan Bautista Municipal Audit for Fiscal Year 2021-2022.
B. Adopt a Resolution of the City Council of the City of San Juan Bautista Authorizing the City Manager to Execute a Professional Services Agreement with Citygate to Complete a Strategic Plan, Organizational Review, Fiscal Sustainability Update, and Public Safety Services Review.
C. Select First Foundation Bank as the Interim Financing Lender for the Wastewater Treatment System Compliance Project and Adopt a Resolution Authorizing the City Manager to Commence Financing Negotiations and Drafting of Legal Documents for the $14.6 Million Wastewater Revenue Bond Anticipation Notes/Line of Credit.
D. Adopt a Resolution of the City Council of the City of San Juan Bautista Authorizing the City Manager to Execute an Agreement with Microvi Biotech Inc. for Water Treatment Services.
E. Appointments to Fill Planning Commission Vacancies based on Recommendations by Ad Hoc Committee Report.
F. Mayor’s Selection of Representatives to Committees, Regional Boards, etc.
G. Adopt a Resolution of the City Council of the City of San Juan Bautista Affecting the Disposition of Parklets Pending Governors Action Lifting COVID State of Emergency.
H. Adopt a Resolution of the City Council of the City of San Juan Bautista Acknowledging the Fire Department will Perform Inspection of Certain Occupancies Required Annually Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code and Authorize the Acceptance of Senate Bill No. 1205.
City Council Meeting
January 24, 2023
I. Adopt a Resolution of the City Council of the City of San Juan Bautista Adopting the 2022 San Benito County Multi-Jurisdictional Hazard Mitigation Plan (“HMP”) J. Introduce an Ordinance to Amend Sections 2-1-105 And 2-2-115(B) of the San Juan Bautista Municipal Code to Vest the Authority in the City Manager to Appoint the City Clerk.
8. Discussion Items
A. Receive an Update on Accepting Applications for Appointment of City Treasurer
9. Adjournment
Item #4A
City Council Meeting
January 24, 2023
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RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN BAUTISTA
MAKING FINDINGS AND DETERMINATIONS UNDER GOVERNMENT CODE §54953 FOR CONTINUING VIRTUAL AND HYBRID MEETINGS
WHEREAS, COVID-19 is a viral respiratory disease from which variants have emerged and which has now spread across the world as a pandemic with multiple confirmed cases in California and, as of December 14, 2022, the federal Centers for Disease Control and Prevention (CDC) rated the risk level for community transmission of COVID-19 in San Benito County as High; and
WHEREAS, under authority provided by Government Code section 8625 on March 4, 2020, Governor Newsom issued a Proclamation of State of Emergency in response to the COVID19 pandemic that remains in effect; and WHEREAS, on March 17, 2020, the City Council declared a State of Emergency in the City of San Juan Bautista due to COVID-19 that remains in effect; and WHEREAS, on April 12, May 10, July 8, and October 19, 2021, Governor Newsom proclaimed states of emergency that remain in effect across all counties of California due to extreme and expanding drought conditions; and
WHEREAS, on April 19, 2022, the City Council declared the City of San Juan Bautista to be in a state of emergency pursuant to Water Code section 350 that remains in effect due to the severity of the drought and directed commencement of certain water conservation regulations as provided by Municipal Code Section 6-4-116; and
WHEREAS, on October 17, 2022, Governor Newsom announced the COVID-19 State of Emergency will end on February 28, 2023; and
WHEREAS, the City Council is committed to preserving and nurturing public access and participation in its public meetings; and
WHEREAS, the Legislature enacted Assembly Bill 361 (AB 361), approved by the Governor and filed with the California Secretary of State on September 16, 2021, which amended Government Code section 54953 of the Brown Act (Government Code sections 54950-54963) to allow local agencies to meet fully virtually or in a hybrid format (that is, a meeting format containing both virtual and in-person components) without fully complying with the teleconference rules set forth in Government Code section 54953(b)(3) during a proclaimed state of emergency if state or local officials have imposed or recommended measures to promote social distancing; and
WHEREAS, the Health & Human Services Agency of the County of San Benito has issued a health advisory entitled “COVID-19 What you need to know” that recommends social distancing Resolution No. 2022-XX
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as a way to slow the spread of a virus including keeping a distance of approximately three feet from the nearest person while in a workplace; and
WHEREAS, The California Department of Industrial Relations Division of Occupational Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including the City, to train and instruct employees about measures, including physical distancing, that can decrease the spread of COVID19; and WHEREAS, the City Council authorized the City Manager to enforce the provisions of Municipal Code Section 6-4-116 as of May 1, 2022, until such time as the drought has ended; and WHEREAS, the City Council desires that the City of San Juan Bautista, including all commissions, committees, and other Brown Act bodies shall continue to be able to hold virtual or hybrid meetings pursuant to AB 361 and Government Code section 54953(e)(1)(A).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Juan Bautista as follows:
Section 1. The City Council has reconsidered the circumstances of the local states of emergency in accordance with Government Code sections 8630(c) and 54953(e)(3)(A), the information related to these matters and the Recitals set forth above are true and correct and are incorporated as findings into this Resolution by this reference.
Section 2. The City Council finds state and local officials continue to recommend measures to promote social distancing and water conservation.
Section 3. The City Council and all other commissions, committees or other Brown Act bodies of the City shall be authorized to continue to meet virtually in accordance with Government Code section 54953(e)(1)(A) without compliance with section 54953(b)(3).
Section 4. This Resolution does not prevent or prohibit the City Council or any commission, committee or other Brown Act body of the City from holding virtual or hybrid meetings (containing both virtual and in-person components) provided such meetings comply with Government Code section 54953(e)(2)(A-G) and with all state and local health orders.
Commissions, committees and other Brown Act bodies shall comply with all rules established by the City Council and/or City Manager for attendance at meetings.
Section 5. The City Council shall take action to renew this Resolution every thirty days for as long as any state of emergency continues in force and local officials continue to recommend any measures to promote social distancing, but the City Council may terminate the Resolution at any time. In the event that more than 30 days pass between regular City Council meetings, the City Council shall take action at a virtual or a hybrid meeting to renew this Resolution before deliberating, either at the beginning of the next regular meeting or at a special meeting.
Resolution No. 2022-XX
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Section 6. If any provision of this Resolution or the application of such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.
Section 7. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista at a regular meeting duly held this 24th day of January 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________
Leslie Q. Jordan, Mayor
ATTEST:
____________________________
Elizabeth Soto, Deputy City Clerk
Item #4B
City Council Meeting
January 24, 2023
AFFIDAVIT OF POSTING
I, ELIZABETH SOTO, DO NOW DECLARE, UNDER THE PENALTIES OF
PERJURY THAT I AM THE ACTING ADMINISTRATIVE SERVICES MANAGER FOR THE CITY OF SAN JUAN BAUTISTA, AND THAT I POSTED THREE (3) TRUE COPIES OF THE ATTACHED CITY COUNCIL MEETING AGENDA. I FURTHER DECLARE THAT I POSTED SAID AGENDA ON THE 20TH DAY OF JANUARY 2023, AND I POSTED THEM IN THE FOLLOWING LOCATIONS IN
SAID CITY OF SAN JUAN BAUTISTA, COUNTY OF SAN BENITO,
CALIFORNIA.
1. ON THE BULLETIN BOARD AT CITY HALL, 311 SECOND STREET.
2. ON THE BULLETIN BOARD AT THE CITY LIBRARY, 801 SECOND STREET.
3. ON THE BULLETIN BOARD AT THE ENTRANCE TO THE UNITED
STATES POST OFFICE, 301 THE ALAMEDA
SIGNED AT SAN JUAN BAUTISTA, COUNTY OF SAN BENITO, CALIFORNIA, ON THE 20th DAY OF JANUARY 2023.
_____________________________________________________
ELIZABETH SOTO
DEPUTY CITY CLERK/ADMINISTRATIVE SERVICES MANAGER
Item #4C
City Council Meeting
January 24, 2023
AFFIDAVIT OF POSTING PUBLIC HEARING NOTICE
I, ELIZABETH SOTO, DO NOW DECLARE UNDER THE PENALTIES OF
PERJURY, THAT I AM THE DEPUTY CITY CLERK FOR THE CITY OF SAN JUAN BAUTISTA, AND THAT I POSTED THREE (3) TRUE COPIES OF THE ATTACHED CITY COUNCIL PUBLIC HEARING NOTICE. I FURTHER
DECLARE THAT I POSTED SAID NOTICE ON THE 13th DAY OF JANUARY 2023, AND I POSTED THEM IN THE FOLLOWING LOCATIONS IN SAID CITY OF SAN JUAN BAUTISTA, COUNTY OF SAN BENITO, CALIFORNIA.
1. ON THE BULLETIN BOARD AT CITY HALL, 311 SECOND STREET.
2. ON THE BULLETIN BOARD AT THE CITY LIBRARY, 801 SECOND STREET.
3. ON THE BULLETIN BOARD AT THE ENTRANCE TO THE UNITED
STATES POST OFFICE, 301 THE ALAMEDA
SIGNED AT SAN JUAN BAUTISTA, COUNTY OF SAN BENITO, CALIFORNIA, ON THE 20th DAY OF JANUARY 2023.
____________________________________________
ELIZABETH SOTO, DEPUTY CITY CLERK
NOTICE OF PUBLIC HEARING
CITY OF SAN JUAN BAUTISTA
Pursuant to Government Code Section 65090, the City Council of the City of San Juan Bautista gives notice of a public hearing on January 24, 2023 at 6:00 p.m.
During the public hearing, the following items will be discussed:
• Consider an Ordinance Amending Chapter 5, Article 1 of the City of San Juan Bautista Building Code, and adopting the California Building Standards Code 2022 Edition of the California Fire Code and Appendices Title 24, Part 9. • Consider an Ordinance Amending Chapter 5, Article 1 of the City of San Juan Bautista Municipal Code regarding the Adoption of the 2022 California Building Codes and Related International Codes.
Staff reports and the full text of all items to be discussed will be available for public review at City Hall and on the City website on January 20, 2023. All members of the public are encouraged to attend the hybrid meeting and may address the City Council on the issues during the public hearing. Written comments may be hand delivered or mailed to City Hall (311 Second Street, P.O. Box 1420, San Juan Bautista, CA 95045), or emailed to [email protected] not later than 5:00 p.m., January 24, 2023.
If a challenge is made on the action of the proposed project, pursuant to Government Code Section 65009 court testimony may be limited to only those issues raised at the public hearing described in this notice or in written correspondence delivered to the City at or prior to the public hearing.
Posted 1/13/2023p
The meeting will be held in person and accessible electronically via teleconference.
For teleconferencing, members of the public are instructed to be on mute during the proceedings and to speak only when public comment is allowed, after requesting and receiving recognition from the Mayor.
The meeting will be hybrid, that is in person and virtual via Zoom. You can access the meeting at https://us02web.zoom.us/j/87023777420. An agenda will be posted on the City website and distributed not later than January 20.
Item #4D
City Council Meeting
January 24, 2023
Date: January 24, 2023 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL
AGENDA TITLE: DISCUSSION/ACTION REGARDING APPROVING A
DEBT MANAGEMENT POLICY
MEETING DATE: January 24, 2023
SUBMITTED BY: Don Reynolds, City Manager
Cameron Weist, Bond Counsel
RECOMMENDED ACTION:
Adopt a Resolution Approving the City of San Juan Bautista Debt Management Policy.
BACKGROUND / DISCUSSION:
Government Code section 8855(i) requires any issuer of public debt to provide to California Debt and Investment Advisory Commission (CDIAC) no later than 30 days prior to the sale of any debt issue a “Report of Proposed Debt Issuance” and to certify on such Report of Proposed Debt Issuance that they have adopted local debt policies concerning the use of debt and that the proposed debt issuance is consistent with those policies. The City is currently working with USDA and others on the interim financing for the Hollister Force Main Development Project, which will be subject to the Government Code section 8855 requirements. The City’s local debt policies must include (A) through (E), below.
A) The purposes for which the debt proceeds may be used.
B) The types of debt that may be issued.
C) The relationship of the debt to, and integration with, the issuer’s capital improvement program or budget, as applicable.
D) Policy goals related to the City’s planning goals and objectives.
E) The internal control procedures that the City has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use.
In addition to the requirement set forth by Government Code section 8855(i), it is prudent financial management for the City to adopt a debt management policy that sets parameters for issuing debt, managing the City’s debt portfolio and provides guidance to decision makers. Adoption of the attached Debt Management Policy will help ensure that City debt is issued and managed prudently to maintain a sound fiscal position and that any future credit rating is protected.
Item #4D
City Council Meeting
January 24, 2023
Date: January 24, 2023 2
The attached Debt Management Policy has been written to include all elements required by CDIAC as well as best management practices expected by the pertinent credit markets and municipal bond industry. In “Section 3 Objectives” it requires that debt service payments be fully integrated into the City’s annual Budget, and be transparent. “Section 4: Delegation of Authority” establishes the “Financing Team” to include bond counsel Cameron Weist from Weist Law Firm, registered bond counsel for the United States Department of Agriculture (“USDA”), that helped draft this policy, municipal finance advisor Dmitry Semenov of Ridgeline Municipal Advisory Services and Wendy Cummings CPA who helped edit the policy. Adopting this policy is a requirement to receive loan financing from the USDA and the State Revolving Loan Fund. The USDA has obligated a $10 million low interest loan for the City’s sewer project. This policy will assist the City in pursuing and maintaining quality credit ratings in addition to providing guidance to decision makers.
FISCAL IMPACT:
There are no negative financial impacts expected to emanate from adoption of the subject Resolution.
ALTERNATIVES:
1. Adopt Resolution as presented, thereby approving the Debt Management Policy attached as Exhibit A to the Resolution.
2. Do not approve but provide alternative direction to staff.
ATTACHMENTS:
A. Resolution Approving the City Debt Management Policy B. Proposed Debt Management Policy
RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN BAUTISTA APPROVING THE CITY OF
SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
WHEREAS, the City Council (the “Council”) of City of San Juan Bautista (the “City”) recognizes that cost-effective access to the capital markets depends on prudent management of the City’s debt program; and
WHEREAS, SB 1029 (amending Government Code section 8855) has been signed into law and imposes a new requirement on California local government agencies who will issue municipal debt; and
WHEREAS, Government Code section 8855(i) requires any issuer of public debt to provide to California Debt and Investment Advisory Commission (CDIAC) no later than 30 days prior to the sale of any debt issue a report of the proposed issuance (the “Report of Proposed Debt Issuance”), and must certify on the Report of Proposed Debt Issuance that they have adopted local debt policies concerning the use of debt and that the proposed debt issuance is consistent with those policies (the “CDIAC Requirements”); and
WHEREAS, the City, and possibly other agencies controlled by the City, expect to be an issuer of new debt in 2023 and thereafter within the meaning of SB 1029 and the CDIAC Requirements; and
WHEREAS, the Council wishes to set parameters for issuing debt, managing the debt portfolio and providing guidance to decision makers; and WHEREAS, the Council hereby finds and determines that adoption of the attached Debt Management Policy (the “Debt Management Policy”) will help ensure that debt is issued and managed prudently in order to maintain sound fiscal policy, and is intended to also satisfy the requirements of SB 1029 and the CDIAC Requirements; and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Juan Bautista, as follows:
Section 1. Recitals. The Council hereby specifically finds and declares that each of the recitals set forth above are true and correct and are hereby incorporated in conjunction with the respective staff report.
Section 2. Approval of the Debt Management Policy. The Council hereby finds and declares that the proposed Debt Management Policy attached as Exhibit “A” hereto, is hereby approved as the official City of San Juan Bautista Debt Management Policy to be effective January 24, 2023.
Section 3. Authorization to Manage Debt Issuance Functions. The City Manager and Finance Director are hereby authorized to manage debt issuance functions for the City in accordance with the Debt Management Policy.
Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista at a regular meeting duly held this 24th day of January 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Leslie Q. Jordan, Mayor
ATTESTED:
____________________________
Elizabeth Soto, Deputy City Clerk
DEBT MANAGEMENT POLICY
CITY OF SAN JUAN BAUTISTA, CALIFORNIA
JANUARY 24, 2023
CITY OF SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
Date: January 24, 2023 1
Section 1: Policy
This Debt Management Policy sets forth debt management objectives for the City of San Juan Bautista (the “City”), and any other entity for which the City Council of the City (the “Council”) acts as legislative body, and the term “City” shall refer to each of such entities, and the term “Council” shall refer to the governing boards of each such entity.
This Debt Management Policy establishes general parameters for issuing and administering debt. Recognizing that cost-effective access to the capital markets depends on prudent management of debt incurred by the City (or any of its controlled entities), the Council has adopted this Debt Management Policy by resolution.
This Debt Management Policy is intended to comply with California Government Code Section 8855(i).
Section 2: Scope
The City is committed to long-term financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The City may issue debt for the purposes stated in this Debt Management Policy. The City intends to implement policy decisions commensurate with goals and objectives set forth for its annual operations, capital budgets and its capital improvement plan (the “Capital Improvement Program”).
The guidelines established by this policy will govern the issuance and management of all debt funded for long-term capital financing needs and not for general operating functions. When used in this policy, “debt” refers to all forms of indebtedness, including bonds, notes, loans, certificates of participation, installment sale agreements and lease obligations.
The City recognizes that changes in the capital markets and other unforeseen circumstances may require action that deviates from this Debt Management Policy. In cases that require exceptions to this Debt Management Policy, approval from the Council will be necessary for implementation.
Section 3: Objectives
The purpose of this Debt Management Policy is to assist the City in pursuit of the following equally important objectives, while providing full and complete financial disclosure and ensuring compliance with applicable state and federal laws:
• Minimize debt service and issuance costs
• Maintain access to cost effective borrowing
• Preserve financial flexibility while assuring public transparency • Achieve the highest practical credit rating
• Ensure full and timely repayment of debt
• Maintain full and complete financial disclosure and reporting • Ensure compliance with debt covenants
• Ensure compliance with applicable state and federal laws Budget Integration – The decision to incur new indebtedness should be integrated with the policy decisions embedded in the Council-adopted budget (the “Budget”). Annual debt service payments shall be included in the Budget.
CITY OF SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
Date: January 24, 2023 2
The City will integrate its debt issuances with the goals of its Capital Improvement Program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes. The City will seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general or enterprise funds.
Biennial Review – Recognizing that cost-effective access to the capital market depends on prudent management of the City’s debt program, a biennial review of this Debt Management Policy should be performed. Any substantive changes to this Debt Management Policy shall be brought to the Council for consideration and approval.
Section 4: Delegation of Authority
This Debt Management Policy grants the acting City Manager and acting Finance Director the authority to select the Financing Team, coordinate the administration and issuance of debt, communicate with the rating agencies, and fulfill all of the pre-issuance and post-issuance requirements imposed by or related to state law, federal tax law and federal securities law.
Financing Team Definitions and Roles – The financing team is the working group of City staff and outside consultants necessary to complete a debt issuance proposal for presentation to City Council, including, but not limited to, bond counsel, disclosure counsel, underwriter, placement agent, municipal advisor, trustee, pricing consultant and/or arbitrage analyst.
Typically, the City Manager and Finance Director form the City staff portion of the Financing Team. As needed, other staff members or designees (such as a standing committee of the City) may be appointed to the Financing Team.
Consultant Selection –The City will consider the professional qualifications and experience of consultants as it relates to the specific bond issue or other financing under consideration. In certain instances, the City will conduct a request for proposal/qualification process to select such consultants. The City Manager and Finance Director may, however, decide to select such consultants without having to undertake a request for proposal/qualification process, on an asneeded basis.
Section 5: Policies
A. Purposes for which Debt may be Issued
1. Long-Term Debt. Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the City.
a. Long-term debt financings are appropriate when the following conditions exist:
• When the project to be financed is necessary to provide basic services. • When the project to be financed will provide benefit to constituents over multiple years. • When total debt does not constitute an unreasonable burden to the City and its taxpayers and/or ratepayers, as applicable.
CITY OF SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
Date: January 24, 2023 3
• When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring.
b. Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.
c. The City may use long-term debt financings subject to the following conditions:
• The project to be financed must be approved by the Council. • The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%. • The City estimates that sufficient revenues will be available to service the debt through its maturity.
• The City determines that the issuance of the debt will comply with the applicable state and federal law.
2. Short-Term Debt. Short-term debt may be issued to provide financing for the City’s operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be used to finance short-lived capital projects; for example, the City may undertake lease-purchase financing for equipment. Additionally, short-term debt financing may be utilized as interim funding for capital projects that will later be funded through long-term debt and/or grant funding.
B. Methods of Financing
The City Manager and Finance Director will investigate all possible financing alternatives including, but not limited to, bonds, notes, loans, certificates of participation, installment sale agreements, lease obligations, state bond pools, and grants, which may be structured and consummated under any of the below described methods of financing.
1. Cash Funding. The City funds a significant portion of capital improvements from reserves accumulated from one-time revenues, which have been set aside for investment in the City’s infrastructure.
2. Bank Loans / Lines of Credit. The City will evaluate bank loans and lines of credit as a possible method of financing.
3. Other Loans. The City will evaluate other financing programs, including but not limited to federal and state “loans” from the United States Department of Agriculture, State Revolving Fund, Water Infrastructure Finance and Innovation Act, etc.
4. Bond Financing. The City may issue any bonds which are allowed under federal and state law including but not limited to general obligation bonds, certificates of participation, revenue bonds, landsecured (assessment and special tax) bonds, refunding bonds and other obligations (see below for detail).
CITY OF SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
Date: January 24, 2023 4
• General Obligation Bonds. General Obligation Bonds (GO Bonds) may only be issued with two-thirds approval of the City’s registered voters. The California State Constitution (Article XVI, Section 18) limits the use of the proceeds from GO Bonds to “the acquisition or improvement of real property.”
• Lease Revenue Bonds, Certificates of Participation (COPs) and Lease-Purchase Transactions. Lease financings may take a variety of forms, including certificates of participation, lease revenue bonds and direct leases (typically for equipment). When the City finances acquisition or construction of capital improvements or equipment with a lease financing, the City agrees to lease either the financed asset or a different asset and, most commonly, the City’s lease payments are securitized in the form of certificates of participation or lease revenue bonds. This type of financing requires approval of Council. • Revenue Bonds. Revenue Bonds are generally issued by the City for enterprise funds that are financially self-sustaining without the use of taxes and therefore rely on the revenues collected by the enterprise fund to repay the debt. This type of financing requires approval of Council.
• Assessment Bonds. The Improvement Bond Act of 1915 (Streets and Highways Code Section 8500 et seq.) and other state laws, subject to Article XIIID of the California Constitution, allow the City to issue bonds to finance improvements that provide “specific benefit” to the assessed real property. Installments are collected on the secured property tax roll of the County. This type of financing is secured by the lien upon and assessments paid by the real property owners and does not obligate the City’s general fund or other funds. This type of financing requires approval of Council.
• Special Tax Bonds. Under the Mello-Roos Community Facilities Act of 1982, the City may issue bonds on behalf of a Community Facilities District (CFD) to finance capital facilities, most commonly in connection with new development. These bonds must be approved by a two-thirds vote of the qualified electors in the CFD, which the Mello-Roos Act defines to mean registered voters if there are 12 or more registered voters in the CFD and, if there are fewer than 12 registered voters, the landowners in the CFD. Bonds issued by the City under the Mello-Roos Act are secured by a special tax on the real property within the CFD. Council will approve any special tax bonds prior to placement on a ballot for voter consideration. The financed facilities do not need to be physically located within the CFD.
As this type of financing is secured by the special tax lien upon the real property it does not obligate the City’s general fund or other funds.
• Refunding Obligations. Pursuant to the Government Code and various other financing statues applicable in specific situations, the Council is authorized to provide for the issuance of bonds for the purpose of refunding any long-term obligation of the City. Absent any significant non-economic factors, a refunding is required to meet the following test: 1) the refunding musts produce a minimum net debt service savings (net of reserve fund earnings
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and other offsets, and taking transaction costs into account) of at least 3% of the par value of the refunded bonds on a net present value basis, using the refunding issue’s True Interest Cost (TIC) as the discount rate, unless either the City Manager and Finance Director determines that a lower savings percentage is acceptable for issues or maturities with short maturity dates, and 2) the final maturity of the original bonds cannot be extended unless expressly determined otherwise by the Council. Additionally, the City Manager or Finance Director may determine that there are other, compelling “non-economic” reasons (i.e. removal of onerous covenants, terms or conditions).
• Other Obligations. There may be special circumstances when other forms of debt are appropriate and may be evaluated on a case-by-case basis. Such other forms include, but are not limited to: bond anticipation notes, grant anticipation notes, lease revenue bonds, pension obligation bonds, etc.
Section 6: Structure and Term
Term of Debt – Debt will be structured for the shortest period possible, consistent with a fair allocation of costs to current and future users. The standard term of long-term debt borrowing is typically 15-40 years.
Consistent with its philosophy of keeping its capital facilities and infrastructure systems in good condition and maximizing a capital asset’s useful life, the City will make every effort to set aside sufficient current revenues to finance ongoing maintenance needs and to provide reserves for periodic replacement and renewal. Generally, no debt will be issued for a period exceeding the useful life or average useful lives of projects to be financed.
Debt Repayment Structure – In structuring a bond issue, the City will manage the amortization of the debt and, to the extent possible, match its cash flow to the anticipated debt service payments. In addition, the City will seek to structure debt with aggregate level debt service payments over the life of the debt. Structures with unlevel debt service will be considered when one or more of the following exist:
• Such structuring is beneficial to the City’s aggregate overall debt payment schedule. • Such structuring will allow debt service to more closely match project revenues during the early years of the project’s operation.
Bond Maturity Options – For each issuance, the City will select serial bonds or term bonds, or both.
Interest Rate Structure – The City currently issues securities on a fixed interest rate basis only. Fixed rate securities ensure budget certainty through the life of the issue and avoid the volatility of variable rates. The use of variable rate securities may be issued if authorized by the Council on a case-by-case basis.
Credit Enhancement – Credit enhancement may be used to improve or establish a credit rating on a City debt obligation. Types of credit enhancement include letters of credit, bond insurance and surety policies. The City Manager and Finance Director will recommend the use of a credit enhancement if it reduces the overall cost of the proposed financing or if the use of such credit enhancement furthers the City’s overall financial objectives.
Debt Service Reserve Fund – Debt service reserve funds are typically held by a Trustee to make principal and interest payments to bondholders in the event the pledged revenues are insufficient to do so. The City will fund debt service
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reserve funds when it is in the City’s overall best financial interest. The City may decide not to utilize a reserve fund if the City Manager and Finance Director, in consultation with bond counsel and municipal advisor, determines there would be no adverse impact to the City’s relevant existing legal provisions, credit rating and/or interest rates.
Per Internal Revenue Service rules, the maximum size of the reserve fund on tax-exempt bond issuance is the lesser of • 10% of the initial principal amount of the debt;
• 125% of average annual debt service; or
• 100% of maximum annual debt service.
In lieu of holding a cash funded reserve, the City may substitute a surety bond or other credit instrument in its place.
The decision to cash fund a reserve fund rather than to use a credit facility is dependent upon the cost of the credit instrument and the investment opportunities.
Call Options / Redemption Provisions – A call option or optional redemption provision gives the City the right to prepay or retire debt prior to its stated maturity date. This option may permit the City to achieve interest savings in the future through the refunding or prepayment of the bonds. The City may be required to pay a higher interest rate as compensation to the buyer for the risk of having the bond called in the future. In addition, if a bond is called, the holder may be entitled to a premium payment (call premium). Because the cost of call options can vary depending on market conditions, an evaluation of factors will be conducted in connection with each issuance. The City Manager and Finance Director shall evaluate and recommend the use of a call option on a case-by-case basis.
Section 7: Method of Issuance and Sale; Disclosure
Debt issues are sold to a single underwriter or to an underwriting syndicate, either through a competitive sale or a negotiated sale. A negotiated sale may involve the sale of securities to investors through an underwriter or the private placement of the securities with a financial institution or other sophisticated investor. The selected method of sale will be that which is most beneficial to the City in terms of lowest net interest rate, most favorable terms in financial structure, market conditions and requirement of City staff time involvement. The City Manager and Finance Director will review conditions in conjunction with information and advice presented by the City’s Financing Team.
Competitive Sales of Bonds – In a competitive sale, the terms of the debt will be defined by the City and the City’s Finance Team, and the price of the debt will be established through a bidding process amongst impartial underwriters and/or underwriting syndicates. The issue is awarded to the underwriter judged to have submitted the best bid that offers the lowest true interest cost taking into account underwriting spread, interest rates and any discounts or premiums.
Negotiated Sale of Bonds – A method for sale for bonds, notes, or other financing vehicles in which the City selects in advance, based upon proposals received or by other means, one or more underwriters to work with it in structuring, marketing and finally offering an issue to investors. The negotiated sale method is often used when the issue is: a firsttime sale by an issuer (a new credit), a complex security structure, such as variable rate transaction, an unusually large issue, or in a highly volatile or congested market where flexibility as to bond sale timing is important.
Private Placement – A private placement is a variation of a negotiated sale in which the City, usually with the help of a placement agent, will attempt to place the entire new issue directly with a single investor. The investor will negotiate the specific terms and conditions of the financing before agreeing to purchase the issue. Private placements are generally undertaken because the transaction is complex or unique, requiring direct negotiations with the investor,
CITY OF SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
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or because the issue is small or of a shorter duration and a direct offering provides economies of scale, lower interest costs and reduced continuing disclosure.
Derivative Products – Because of their complexity, unless otherwise amended, Derivative Products such as interest rate swaps, interest floaters, and other hybrid securities are prohibited by this Debt Management Policy.
Initial Disclosure Requirements – The City acknowledges its disclosure responsibilities. Under the guidance of disclosure counsel, the City will distribute or cause an underwriter to distribute its Preliminary Official Statement and final Official Statement (neither is typically required in a private placement, although in some cases a “private placement memorandum” may be required by the investor).
The Financing Team shall be responsible for soliciting “material” information (as defined in Securities and Exchange Rule 10b-5) from City departments and identifying contributors who may have information necessary to prepare portions of the Official Statement or who should review portions of the Official Statement. In doing so, the Financing Team shall confirm that the Official Statement accurately states all “material” information relating to the decision to buy or sell the subject bonds and that all information in the Official Statement has been critically reviewed by an appropriate person.
In connection with an initial offering of securities, the City and other members of the Financing Team will:
• Identify material information that should be disclosed in the Official Statement; • Identify other persons that may have material information (contributors); • Review and approve the Official Statement;
• Ensure the City’s compliance, and that of its related entities, with federal and state security laws, including notification to the California Debt and Investment Advisory Commission (“CDIAC”) of the proposed debt issue no later than 30 days prior to the sale of any debt issue, and submission of a final report of the issuance to the CDIAC by any method approved by the CDIAC.
The Financing Team shall critically evaluate the Official Statement for accuracy and compliance with federal and state securities laws. The approval of an Official Statement shall be placed on the Council agenda, and shall not be considered as a Consent Calendar item. The staff report will summarize the Council’s responsibilities with respect to the Official Statement and provide the Council the opportunity to review a substantially final Official Statement. The Council shall undertake such review as deemed necessary by the Council to fulfill the Council’s securities law responsibilities.1 For any privately placed debt with no Official Statement, the final staff report describing the issue and such other documents will be provided to the Council for approval. 1 The Securities and Exchange Commission (the SEC), the agency with regulatory authority over the City’s compliance with the federal securities laws, has issued guidance as to the duties of the Council with respect to its approval of any preliminary official statement (the “POS”). In it’s “Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC stated that, if a member of the Board of Supervisors has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the bonds, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such fact or facts are adequately disclosed in the POS. In the Release, the SEC stated that the steps that a member of the Board of Supervisors would take include becoming familiar with the POS and questioning staff and consultants about the disclosure of such facts.
CITY OF SAN JUAN BAUTISTA DEBT MANAGEMENT POLICY
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Section 8: Creditworthiness Objectives
Ratings are a reflection of the general fiscal soundness of the City and the capabilities of its management. Typically, the higher the credit ratings are, the lower the interest cost is on the City’s debt issues. To enhance creditworthiness, the City is committed to prudent financial management, systematic capital planning, and long-term financial planning; however, the City also recognizes that external economic, natural, or other events may, from time to time, affect the creditworthiness of its debt.
The most familiar nationally recognized bond rating agencies are Standard and Poor’s, Moody’s Investors Service, Fitch Ratings and KBRA. When issuing a credit rating, rating agencies consider various factors, including, but not limited to:
• City’s fiscal status;
• City’s general management capabilities;
• Economic conditions that may impact the stability and reliability of debt repayment sources; • City’s reserve levels;
• City’s debt history and current debt structure;
• Project(s) being financed; and
• Covenants and conditions in the governing legal documents.
Bond Ratings – The Financing Team will assess whether a credit rating should be obtained for an issuance. The City typically seeks a rating from at least one nationally recognized rating agency on new and refunded issues being sold in the public market. The City Manager and Finance Director, working with the Financing Team, shall be responsible for determining which of the major rating agencies the City shall request to provide a rating. When applying for a rating on an issue, the City and Financing Team shall prepare a presentation for the rating agency when the City determines that a presentation is in the best interests of the City.
Rating Agency Communications – The City Manager and Finance Director are responsible for maintaining relationships with the rating agencies that assign ratings to the City’s various debt obligations. This effort shall include providing the rating agencies with the City’s financial statements, if applicable, as well as any additional information requested.
Section 9: Post Issuance Administration
Notification to the CDIAC – The City shall work with bond counsel to submit a report of final sale to the CDIAC by any method approved by the CDIAC. The report shall include the information required by CDIAC.
Investment of Proceeds – The Finance Director (or the City Manager or designee in the absence of a City Manager) shall invest bond proceeds and reserve funds in accordance with each issue’s indenture or trust agreement, utilizing competitive bidding when appropriate. All investments will be made in compliance with the City’s investment policy objectives of safety, liquidity and then yield. The investment of bond proceeds and reserve funds shall comply with federal tax law requirements specified in the indenture or trust agreement and the tax certificate.
Whenever reasonably possible, unexpended bond proceeds and reserve fund monies shall be held by the bank trustee.
The trustee will be responsible for recording all investments and transactions relating to the proceeds and providing monthly statements regarding the investments and transactions.
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Use of Bond Proceeds – The City Manager and Finance Director are responsible for ensuring that debt proceeds are spent for the intended purposes identified in the related legal documents and that the proceeds are spent in the time frames identified in the tax certificate prepared by bond counsel. Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The City will submit a requisition only after obtaining the signature of either the City Manager or the Finance Director. In those cases where it is not reasonably possible for the proceeds of debt to be held by a third-party trustee, the Finance Director (or the City Manager or designee in the absence of a City Manager) shall retain records of all expenditures of proceeds through the final payment date for the debt.
Continuing Disclosure – When required by Securities Exchange Commission Rule 15c2–12(b)(5) (the “Rule”) the Finance Director or designee will ensure the City’s annual financial statements and associated reports are posted on the City’s web site, and will also comply with the Rule by filing its annual financial statements, other financial and operating data and notices of enumerated events for the benefit of its bondholders on the Electronic Municipal Market Access (EMMA) website of the Municipal Securities Rulemaking Board (MSRB). The City shall submit an annual report to the CDIAC in compliance with the requirements of Government Code Section 8855 and related regulations.
Arbitrage Rebate Compliance and Reporting – The use and investment of bond proceeds must be monitored to ensure compliance with arbitrage restrictions. Existing regulations require that issuers calculate rebate liabilities related to any bond issues, with rebates paid to the Federal Government every five years and as otherwise required by applicable provisions of the Internal Revenue Code and regulations. The Finance Director shall contract with a specialist to ensure that proceeds and investments are tracked in a manner that facilitates accurate complete calculations, and if necessary timely rebate payments.
Compliance with Other Bond Covenants – In addition to financial disclosure and arbitrage, the City Manager and Finance Director are also responsible for verifying compliance with all undertakings, covenants, and agreements of each bond issuance on an ongoing basis. This typically includes ensuring:
• Annual appropriation of revenues to meet debt service payments; • Taxes/fees are levied and collected where applicable; • Timely transfer of debt service payments to the trustee; • Compliance with insurance requirements;
• Compliance with rate covenants;
• Post-issuance procedures established in the tax certificate for any tax-exempt debt.
Retention – A copy of all relevant documents and records will be maintained by the City for the term of any bonds issued (including refunding bonds, if any), plus 10 years. Relevant documents and records will include sufficient documentation to support the requirements relating to the tax-exempt status.
Investor Relations – While the City shall post its annual financial report as well as other financial reports on the City’s website, this information is intended for the citizens of the City. Information that the City intends to reach the investing public, including bondholders, rating analysts, investment advisors, or any other members of the investment community shall be filed on the EMMA system.
Additional requirements for financial statements – It is the City’s policy to hire an auditing firm that has the technical skills and resources to properly perform an annual audit of the City’s financial statements. More specifically,
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the firm shall be a recognized expert in the accounting rules applicable to the City and shall have the resources necessary to review the City’s financial statements on a timely basis.
Section 10: Training
To the extent that the City has outstanding debt subject to the Rule, the City Manager shall (i) ensure that the members of the City staff involved in the continuing disclosure process and the Council are properly trained to understand and perform their responsibilities, and (ii) arrange for disclosure training sessions conducted by the City’s disclosure counsel. Such training sessions shall include education on the applicable federal and state securities laws and the disclosure responsibilities and potential liabilities of members of the City’s staff and members of the Council.
Item #4E
City Council Meeting
January 24, 2023
WAIVER OF READING
OF ORDINANCES
State law requires that an ordinance be read in its entirety prior to adoption unless the City Council waives reading beyond the title. Reading an entire ordinance at the meeting is extremely time-consuming; reading of the title alone usually gives the audience sufficient understanding of what the Council is considering.
To ensure that this waiver is consistently approved by the Council, Council should make the waiver at each meeting, thus, you should do it at this point on the Consent Agenda. The Council then does not have to worry about making this motion when each ordinance comes up on the agenda.
GC36934
Item # 5A
City Council Meeting
January 24. 2024
City of San Juan Bautista
California
~ League of United Latin American Citizens Council (LULAC) 2890 ~ 35th Anniversary
WHEREAS, the San Benito County LULAC Council 2890 was established in 1987 to represent a voice for the Latino Community; and WHEREAS, the San Benito County LULAC Council 2890 has a track record of demonstrating integrity and has gained the trust and resources of the community; and WHEREAS, the San Benito County LULAC Council 2890 has proven to be a crucial organization to our community and a vital resource to many other non-profit organizations; and
WHEREAS, throughout the years, SBC LULAC 2890 can claim 364 Collegiate Members and 1,297 Youth Members have participated and personally know the importance of LULAC being part of their education, their lives and their careers; and WHEREAS, the San Benito County LULAC Council 2890 has successfully for the last 35 years assured Latino students an education by granting over $183,000 in scholarship grants to local students; and
WHEREAS, the San Benito County LULAC Council 2890 also has fought on behalf of and supported the Farmworker community who selflessly work to putting food on our table; and
NOW, THEREFORE, I, Mayor Leslie Jordan, on behalf of the City of San Juan Bautista City Council, do hereby commend and congratulate San Benito County LULAC Council 2890 on their 35th Anniversary and wish them continued success.
Dated this 24th day of January 2023.
________________________________
Leslie Jordan, San Juan Bautista Mayor
Item #5B
City Council Meeting
January 24, 2023
City of San Juan Bautista
California
~ Black History Month 2023 ~
WHEREAS, the City of San Juan Bautista recognizes and values diversity, equity, and inclusion within our community; and
WHEREAS, the migration of African Americans to all parts of the United States and throughout the world have led to countless indelible contributions in the fields of science, medicine, law, social justice, athletics, the arts, government, and more; and WHEREAS, the presence of African Americans in our community continues to enhance the quality of life in the City of San Juan Bautista; and WHEREAS, the City of San Juan Bautista understands that African Americans have endured egregious discrimination and bigotry throughout the course of our Nation’s history, conflicting with the core values of the City of San Juan Bautista; and WHEREAS, Black History Month calls on our collective need to recognize and combat racism, and to continue to build a community that embraces all ages, races, religions, and genders; and
WHEREAS, Black History Month is American History; and
WHEREAS, Black History Month is a time where all citizens are encouraged to reflect on past successes and challenges of Black communities, and to look to the future to ensure freedom, equity, and inclusiveness;
NOW, THEREFORE, BE IT RESOLVED, that the City Council for the City of San Juan Bautista, do hereby proclaim February 2023 as Black History Month in the City of San Juan Bautista.
Dated this 24th day of January 2023.
________________________________
Leslie Jordan, San Juan Bautista Mayor
City of San Juan Bautista
Revenues ~ Budget Vs. Actual
For the Six Month Period Ended December 31, 2021
Item #4E
City Council Meeting
January 24, 2023
REVENUES FY21 FY22 Annual YTD
Fund Actuals Actuals Budget Difference 50% Notes
General Fund 897,511 1,089,710 2,137,076 (1,047,366) 51% A Special Revenue Funds:
Capital Projects Fund 1,216,231 178,927 905,111 (726,184) 20% C Community Development 75,008 39,512 404,514 (365,002) 10% B COPS 80,456 68,190 100,000 (31,810) 68%
Parking & Restroom Fd 8,411 7,709 25,000 (17,291) 31% A Gas Tax Fund 47,876 155,917 375,784 (219,867) 41%
Valle Vista LLD 10,856 12,964 25,928 (12,964) 50%
Rancho Vista CFD 28,822 29,358 58,716 (29,358) 50%
Copperleaf CFD 10,636 10,973 21,945 (10,973) 50%
Development Impact Fee Funds:
Park Development 20,536 - - -
Public/Civic Facility 1,767 - - -
Library 2,377 - - -
Storm Drain 38,288 - - -
Parking In-Lieu - - - -
Park In-Lieu 10,426 - - -
Public Safety 1,839 - - -
Traffic 45,821 - - -
Internal Service Funds:
Blg Rehab. & Replace 19,000 19,000 38,000 (19,000) 50%
Vehicle Replacement 30,000 30,000 60,000 (30,000) 50%
Enterprise Funds:
Water
Operations 596,046 581,252 1,239,670 (658,418) 47%
Capital 207,493 - 576,400 (576,400) 0% C
Sewer
Operations 555,413 622,388 1,142,430 (520,042) 54%
Capital 12,488 - 733,275 (733,275) 0% C
TOTAL Funds 3,019,790 1,756,190 7,843,849 6,087,660 22% A ~ Current year revenue was higher due to a $251k grant from Federal government for COVID relieft, offset by higher document transfer taxes in the prior year.
B ~ These funds are developer derived and are recognized when received.
C ~ The timing of the projects and the related revenue does not always align with the year-to-date percentages.
City of San Juan Bautista
Expenditures ~ Budget Vs. Actual
For the Six Month Period Ended December 31, 2021
Item #4E
City Council Meeting
January 24, 2023
EXPENDITURES FY21 FY22 Annual YTD
Fund Actuals Actuals Budget Variance 50% Note
General Fund 841,844 810,189 2,050,876 (1,240,687) 40%
Special Revenue Funds:
Capital Projects Fund 1,216,231 178,927 2,477,368 (2,298,441) 7% A Community Development 285,738 242,984 650,768 (407,784) 37% COPS 50,000 50,000 100,000 (50,000) 50%
Parking & Restroom Fd 707 17,410 117,899 (100,489) 15% A Gas Tax Fund 6,857 8,372 100,784 (92,412) 8%
Valle Vista LLD 9,484 35,084 25,928 9,156 135% B
Rancho Vista CFD 18,795 21,860 58,716 (36,856) 37%
Copperleaf CFD 3,805 7,141 21,945 (14,804) 33%
Development Impact Fee Funds
Public/Civic Facility 1,350 1,350 169,540 (168,190) 1% A Library 2,220 9,020 29,440 (20,420) 31% A
Storm Drain 89,783 1,716 10,932 (9,216) 16% A
Park In-Lieu 150 2,831 17,884 (15,053) 16% A
Public Safety 426 426 180,852 (180,426) 0% A
Traffic 128,530 216 5,432 (5,216) 4% A
Internal Service Funds:
Blg Rehab. & Replace - - 25,000 (25,000) 0% A
Vehicle Replacement 3,410 - - -
Enterprise Funds:
Water:
Operations 345,451 396,262 725,548 329,286 55%
Capital 91,934 85,285 547,705 462,420 16% A
Sewer
Operations 401,678 412,842 805,565 392,723 51%
Capital 154,078 348,440 717,205 368,765 49%
TOTAL Funds 2,860,141 1,820,166 8,839,387 7,019,221 21% Footnotes:
A ~ Capital fund transfers/costs are budgeted to be incurred by these funds. Since the costs/transfers occur ` sporadically during the year, they do not always align with the to date percentages, or prior year amounts.
Additionally, some projects have been moved to the next fiscal year.
B ~ Cost are greater than budget due to one time maintenance, paid through assessment reserves. 2/7/2022
City of San Juan Bautista
Revenue - Summary02/07/2022Account Type - All Account Category - A Billing Type - All From - 12/12/2021 Res. Comm.Account Category Account Type Billing Type Water 67,936.49 13,402.52Main AGRICULTURAL Other 3.06 Sewer 71,299.21 18,518.99Main AGRICULTURAL Water 717.55 Meter Maint 1,317.33Main CHURCH Sewer 1722.05Main CHURCH Water 1236.9Main CHURCH Other 7.65Main COMMERCIAL Sewer 15048.61Main COMMERCIAL Water 10544.26Main COMMERCIAL Other 97.92Main GOVERNMENT Water 825.82Main GOVERNMENT Other 10.71Main GOVERNMENT Sewer 1632.45Main OTHER Sewer 797.19Main OTHER Water 997.78Main OTHER Other 15.3Main RESIDENTIAL Water 66938.71Main RESIDENTIAL Other 1181.16Main RESIDENTIAL Sewer 70502.02Main SCHOOL Sewer 115.88Main SCHOOL Water 77.99Main SCHOOL Other 1.53 Total 172474.54
City of San Juan Bautista
Warrant Listing
As of December 31, 2021
Date Num Name Amount
101.000 · Union Bank
101.001 · Operating Acct. 1948
12/08/2021 215194 All Clear Water Services -4,100.00
12/08/2021 215195 AVAYA 0.00
12/08/2021 215196 Brigantino Irrigation, Inc. -77.79
12/08/2021 215197 Carlos Figueroa. -93.49
12/08/2021 215198 Charter Communications -548.19
12/08/2021 215199 Clark Pest Control -97.00
12/08/2021 215200 Core & Main -196.12
12/08/2021 215201 Department of Transportation -23.16
12/08/2021 215202 Ernesto Soto. -75.26
12/08/2021 215203 Hollister Auto Parts, Inc. -21.59
12/08/2021 215204 Home Depot Credit Services -103.03
12/08/2021 215205 Jessica Nunley -163.82
12/08/2021 215206 KBA Docusys -230.39
12/08/2021 215207 Level 1 Private Security. -5,197.50
12/08/2021 215208 Local Government Commision -788.50
12/08/2021 215209 Luz Veronica Zapata. -74.69
12/08/2021 215210 Mandell Municipal Counseling -4,292.00 12/08/2021 215211 Mc Kinnon Lumber Co., Inc. -20.70
12/08/2021 215212 Monterey Bay Analytical Services -3,895.40 12/08/2021 215213 P G & E -807.33
12/08/2021 215214 Quadient Leasing USA, Inc. -473.47
12/08/2021 215215 Rx-Tek -734.00
12/08/2021 215216 Sentry Alarm System -339.22
12/08/2021 215217 Smith & Enright Landscaping -3,640.00 12/08/2021 215218 State Compensation Insurance Fund -2,250.58 12/08/2021 215219 Toro Petroleum Corp. 0.00
12/08/2021 215220 True Value Hardware 0.00
12/08/2021 215221 US Bank 0.00
12/08/2021 215222 Vanessa Tellez. 0.00
12/08/2021 215223 Wendy L. Cumming, CPA 0.00
12/08/2021 215224 AVAYA -250.66
12/08/2021 215225 Toro Petroleum Corp. -180.51
12/08/2021 215226 True Value Hardware -45.64
12/08/2021 215227 US Bank -993.37
12/08/2021 215228 Vanessa Tellez. -74.30
12/08/2021 215229 Wendy L. Cumming, CPA -5,546.25
12/10/2021 215230 Felix Quezada -165.00
12/10/2021 215231 Level 1 Private Security. -608.00
12/10/2021 215232 Randazzo Enterprises INC. -165.00
12/10/2021 215233 Vicki Saxton -95.00
12/15/2021 215234 Karl D. Bjarke -1,356.03
12/15/2021 215235 Angel Solache. -700.00
12/15/2021 215236 att.com -70.75
City of San Juan Bautista
Warrant Listing
As of December 31, 2021
Date Num Name Amount
12/15/2021 215237 Bartle Wells Associates -7,875.00
12/15/2021 215238 Ca Association Code Enforcement Officers -95.00 12/15/2021 215239 Core & Main -389.88
12/15/2021 215240 CSG Consultants, Inc. -21,960.00
12/15/2021 215241 Cypress Water Services -6,505.40
12/15/2021 215242 Design Line & Granger -406.41
12/15/2021 215243 Devin Brooks -56.91
12/15/2021 215244 Harris & Associates -8,788.75
12/15/2021 215245 Mandell Municipal Counseling -1,769.00 12/15/2021 215246 Monterey Bay Analytical Services -1,544.50 12/15/2021 215247 P G & E -4,522.37
12/15/2021 215248 Printing Systems Inc -77.52
12/15/2021 215249 Ready Refresh -392.46
12/15/2021 215250 San Benito County Chamber of Commerce -265.00 12/15/2021 215251 San Benito County Clerks Office -2,456.75 12/15/2021 215252 Sentry Alarm System -150.00
12/15/2021 215253 Sprint -456.88
12/15/2021 215254 SWRCB -3,326.00
12/15/2021 215255 U.S. Postmaster -1,000.00
12/17/2021 215256 at&t -90.33
12/17/2021 215257 J.V. Orta's Rent A Fence -225.00
12/17/2021 215258 Level 1 Private Security. -4,725.00
12/17/2021 215259 P G & E -6,847.39
12/17/2021 215260 Pinnacle Healthcare Medical Group -150.00 12/17/2021 215261 Sentry Alarm System -612.00
12/21/2021 215262 AFLAC -290.69
12/21/2021 215263 Ferguson Enterprises LLC -15.77
12/21/2021 215264 First Alarm -440.37
12/21/2021 215265 Monterey Bay Economic Partnership -3,000.00 12/21/2021 215266 US Bank Equipment Finance -249.61
12/21/2021 215267 Valero Wex Bank -940.09
12/21/2021 215268 Wellington Law Offices -2,500.00
12/21/2021 215269 United Rotary Brush Corporation -546.21 12/21/2021 215270 Wright Bros. Industrial Supply -253.40 Total 101.001 · Operating Acct. 1948 -121,417.43
Total 101.000 · Union Bank -121,417.43
TOTAL -121,417.43
City Manager’s Monthly Report
Staffing and Organizational Assessment
Fully staffed – first time since January 2022
Deputy City Clerk- on board
City Clerk appointment moving forward
If approved tonight, will initiate a staffing and organizational capacity assessment (administrative services consideration) Finance “Department”
Implemented a new chart of accounts
Implementing a new finance software designed for local government Integrating it with Cleargov
City Manager’s Monthly Report
Budget Calendar
Audit 30-days- on today’s agenda
Mid Year Budget Review February 21
Expenditure Plan for several one-time projects
Strategic Planning Feb/March
Community Workshop
Adoption March 21
Department Budgets considered in April
Draft Budget presented in May
Budget workshops May and June
Budget adopted June 20, 2023
City Manager’s Monthly Report
Emergency Preparedness/Response
12.31 FEMA Claim deadline for COVID was met 12.28; $110,000
12.27 flooding through New Years
Small mobile home park flooded (6 families)
The Alameda
Closed First Street due to RV Flooding
WWTP inundated with storm water but held tight
01.12 Proclaimed State of Emergency, ratified January 14
01.15 Submitted Initial Damage Estimate at $81,000
01.16 Cal OES meeting on Individual Damage claims and reports City Manager’s Monthly Report
Water and Wastewater
Water
Reviewed District Agreement for Pipeline, and Buy-in (water) Wastewater
Two good conversations with Hollister; agreed to terms
Feedback from Water Board on Industrial User Inspections State F&G Permit submitted 12.22- pending approval
(once approved- buy conservation credits)
USDA Obligates to City $14 million; $4 grant + $10 loan Working to satisfy USDA Pre-bid Requirements
City Manager’s Monthly Report
UGB-SOI
Continue to meet with property owners
Noise Ordinance
Adding the “dbl” metric is requires research and re-drafting Check in on Future Agenda Items
Neighborhood Electric Vehicles
Vacancy Tax
Nuisance Property Ordinance
Other considerations?
City Manager’s Monthly Report
Projections01.31.23 Joint PC/CC Meeting
Active Transportation Plan
Adjourn to City Council Mtg- Line of Credit Bank Agmts
2.07.23 Planning Commission
Orientation, Select Officers
Christopher Ranch Preliminary Introduction
2.21.23 Building Codes
Water District Pipeline Agreement
Strategic Planning Update
Item #6A
City Council Meeting
January 24, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL STAFF REPORT
AGENDA TITLE: Ordinance No. 2023-XX, Amending Chapter 5-1 of the City of San Juan Bautista Municipal Code and
Adopting the California Building Standards Code 2022
Edition of the California Fire Code and Appendices
Title 24, Part 9
MEETING DATE: January 24, 2023
DEPARTMENT HEAD: Fire Chief Bob Martin Del Campo
RECOMMENDED ACTION: Staff recommends that the City Council Read by Title Only, Waive Full Reading, and introduce these changes to the Ordinance of the City Council of the City of San Juan Bautista Amending Chapter xx of the San Juan Bautista Building Code and adopting by reference – 2022 Edition California Fire Code and appendices Title 24, Part 9.
BACKGROUND INFORMATION: Fire Protection agencies are generally required to adopt the State Building Standards, and agencies are allowed to make amendments to those state standards when justified by local topographical, climatic and geographical conditions.
The international code Council promulgates the International Fire Code, a nationally recognized compilation of rules and regulations. The International Code Council has conducted open code hearings that permit participation by National, State, and local code officials; as well as industry representatives, consultants, and other private parties with an interest in the International Fire Code. The international Fire Code has been printed and published as a Code in book form with the meaning of Section 50022.1 of the Government Code of the State of California.
Under this adopting ordinance, specific amendments to building standards are more restrictive than those contained within the 2022 Edition of the International Fire Code with amendments as adopted by the California Building Standards Commission and published as the 2022 Edition of the California Fire Code.
Under the provisions of Section 18941.5 of the Health and Safety Code, local amendments are based on climatic, topographical and geological conditions.
It is clearly understood that the adoption of such amendments may not prevent the incidence of fire, the implementation of these various amendments to the Fire Code is intended to reduce the potential loss of life and property and damage to the environment caused thereby.
DISCUSSION:
The San Juan Bautista City Council and the Hollister Fire Department ORDAINS AS FOLLOWS:
Item #6A
City Council Meeting
January 24, 2023
Page | 2
Part 1: Adoption of Code with Exclusions
Part 2: Local Amendments
Part3: International Fire Code Adopted by Reference
Part 4: Severability
Part 5: Effective Date and Publication
Part 1. Adoption of Code with Exclusions
The Hollister Fire Department adopts the 2022 California Fire Code, Title 24, Part 9, in its entirety, including Appendices, incorporation those sections of the International Fire Code, 2022 Edition not adopted by the State.
Part 2. Local Amendments
The following sections are hereby amended or added (2022 City of San Juan Bautista Fire Code Amendments – Exhibit A)
Part 3. International Fire Code Adopted by Reference
The 2022 International Fire Code, including its appendices published by the International Code Council, is hereby adopted by reference.
Part 4. Severability
If any section, subsection, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decisions of any court or competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City of San Juan Bautista hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional.
Part 5. Effective Date and Publication
This ordinance shall become effective and be in full force and effect thirty (30) days after the date of its passage and after ratification by the City of San Juan Bautista and submission of a copy of the ordinance to the California Department of Housing and Communi8ty Development, provided this ordinance is published in full or in summary within fifteen (15) days after its adoption in the Freelance, a newspaper of general circulation.
This ordinance was introduced and the title there of read at the regular meeting of the City of San Juan Bautista on January 24, 2023.
FISCAL IMPACT:
N/A
ATTACHMENTS:
1. 2022 City of San Juan Bautista Fire Code Amendments – Exhibit A 1 ORDINANCE NO 2023-____
AN ORDINANCE OF THE CITY OF SAN JUAN BAUTISTA AMENDING
SECTIONS 5-1-100 AND 5-1-105 OF CHAPTER 5-1, ARTICLE 1, OF THE SAN JUAN BAUTISTA MUNICIPAL CODE TO ADOPT 2022 EDITION OF CALIFORNIA FIRE CODE BY REFERENCE, AND APPENDICES TITLE 24, PART 9, WITH CERTAIN EXCEPTIONS, MODIFICATIONS AND
ADDITIONS REQUIRED BY LOCAL CLIMATIC, GEOLOGICAL OR
TOPOGRAPHICAL CONDITIONS; AND APPROVING FINDINGS TO
SUPPORT LOCAL MODIFICATIONS.
-o0oWHEREAS, pursuant to Section 18941.5 of the California Health and Safety Code, the City may adopt the provisions of the California Fire Code with certain exceptions, modifications and additions to provisions of the Code which are reasonably necessary to protect the health, welfare and safety of the citizens of San Juan Bautista because of local climatic, geological and topographical conditions; and
WHEREAS, the City Council has considered whether certain modifications to the California Fire Code standards set forth herein are necessary in the City of San Juan Bautista due to local climatic, geological or topographical conditions; and.
WHEREAS, the factual findings made are valid and relate to the amendments made to the California Fire Code in this adoption; and
WHEREAS, the City Council directed that a public hearing be held and duly noticed and published in accordance with California Government Code §50022.3, and said hearing was held on February 21, 2023, concerning the purpose of this Ordinance to adopt the 2022 California Fire Code with modifications to address unique local conditions; and
WHEREAS, this Ordinance was found to be categorically exempt from environmental review, per the provisions of Section 15061(b) (3) of the Guidelines to the California Environmental Quality Act.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN BAUTISTA DOES HEREBY ORDAIN AS FOLLOWS:
1. Section 5-1-100 of Chapter 5-1-“Amended by reference” Amended: Section 5-1-100 of Chapter 5-1 entitled “Adoption by reference” is hereby amended to read as follows:
2 “5-1-100 Adoption by reference.
The California Fire Code, 2022 Edition including Appendices Title 24, Part 9, published by the California Building Standards Commission, and as modified by the amendments, additions set forth hereinafter, is adopted by reference, in accordance with the following findings, as the Fire Code of the City of San Juan Bautista. (A) Climate. The city, on average, experiences an approximate annual rainfall of eighteen inches. The heaviest months for rainfall can be expected between January and April. During winter months, the city may experience periods of heavy rain, which can cause local flooding.
Due to the proximity of the Pacific Ocean, winter storms are often accompanied by high winds, which have uprooted trees and damaged power lines. The city has also experienced periods of heavy fog, which has delayed the responding fire apparatus and prevented early discovery of structure fires. Light to gusty winds occur during dry periods which, when coupled with highly flammable vegetation, can cause uncontrollable fires. With increased development spreading into brush covered coastal hill areas, wind driven fires could have severe consequences, as have been demonstrated on several occasions throughout the state. (B) Geologic. The city is susceptible to seismic hazards resulting from movement along any one of several known faults. The most serious direct earthquake hazard threat is from the damage or collapse of buildings and other structures due to ground movement. In addition to damage caused by earthquakes, there is the possibility of earthquake-induced fires starting because of damage to gas lines, power lines or heat-producing appliances and the unavailability to water for fire control due to broken water mains. In the event of a major earthquake many areas of the city may not be accessible to emergency equipment and, if bridges or roads are damaged, the city may be isolated from outside assistance.
(C) Topographical. The city is divided by California State Highway 156. The freeway creates barriers which obstruct traffic patterns and delay response time for fire equipment. The water supply within the city is directly affected by the topographical layout. In the event of a major catastrophe..
(D) Conclusion. Local climatic, geologic and topographical conditions impact fire suppression efforts and the frequency, spread, intensity and size of fire involving structures in this community. Further, they impact potential damage to all structures from earthquake and subsequent fire. Therefore, it is found to be necessary that the California Fire Code be amended by this chapter to mitigate the effects of these conditions.
2. Section 5-1-105 of Chapter 5-1 “Amendments – General” Amended. Section 5-1- 105 of Chapter 5.1 entitled “Amendments – General” is hereby amended to read as follows:
“5-1-105 Amendments – General.
Set forth below are the amendments, additions and deletions to the California Fire Code, 2022 Edition. Article and Section numbers used herein are those of the California Fire Code. 3 101.1 Title. These regulations shall be known as the Fire Code for the City of San Juan Bautista, hereinafter referred to as “Fire Code.”
101.2.1 Appendices. Provisions in all appendices to the 2022 California Fire Code are hereby adopted in their entirety and shall apply.
102.1 Construction and design provisions. The construction and design provisions of this Code shall apply to:
1. Structures, facilities and conditions arising after the adoption of this Code.
2. Existing structures, facilities and conditions not legally in existence at the time of adoption of this Code.
3. Existing structures, facilities and conditions when identified in specific Sections of this Code.
4. Existing structures, facilities and conditions, which, in the opinion of the Fire Code Official, constitute a distinct hazard to life and property.
5. Existing Structures Alterations and repairs.
a. All new work performed in alterations and/or repairs to existing structures shall comply with the current provisions of this Chapter.
b. When alterations and/or repairs result in the removal, alteration, modification, replacement and/or repair of fifty percent (50%) or more of the external walls of a building, or result in the removal, modification, replacement and/or repair of fifty percent (50%) or more of the existing internal structural and/or non-structural framework, independently or in combination thereof, within a five year period, the entire building shall be made to conform to the current provisions of this Chapter.
c. Calculations of linear wall measurements shall be shown on all plans submitted for building permits, on the cover page in the project description of said plans. d. The determination under this section of the requirement for upgrading any existing structure to full conformance with current provisions of this Chapter shall be at the sole discretion of the Fire Code Official.
103.0 Responsibility for enforcement.
103.0.1 Within established fire protection districts and community services districts, responsibility for enforcement of this Code shall be under the direction of the Fire Chief within each district.
103.0.2 In areas of San Juan Bautista responsibility for enforcement of this Code shall be under the direction of the Fire Chief..
104.1.1 Police powers. The fire code official and his deputies shall have the powers of police officers in performing their duties under this Code. When requested to do so by the fire code official, the chief of police of the jurisdiction is authorized to assign such available police officers as necessary to assist the fire code official in enforcing the provisions of this Code. 105.5.0 Agricultural Explosive Devices. An operational permit is required for storage or use of any agricultural explosive device including “bird bombs”. 4 112.2 Owner/occupant responsibility. Correction and abatement of violations of this Code shall be the responsibility of the owner. If an occupant creates, or allows to be created, hazardous conditions in violation of this Code, the occupant shall be held responsible for the correction and abatement of such hazardous conditions.
112.4 Violation penalties. Persons who shall violate any provision of this Code or shall fail to comply with any of the requirements thereof or shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this Code, shall be guilty of an infraction, punishable by a fine in conformance with the County Fire Department. 113.4 Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be guilty of an infraction as specified in Section 112.4 of this Code. 202 Definitions
ALL WEATHER SURFACE. A hard paved road surface constructed to the minimum standards adopted by the jurisdiction.
BRIDGE. A structure to carry a roadway over a depression or obstacle.
IDLE PALLET. A pallet or similar product storage and/or lifting device not currently in use and empty of product.
503.2.6.1 Private bridge engineering. Every private bridge hereafter constructed shall meet the following engineering requirements:
1. The weight shall be designed for a minimum of HS-20 loading as prescribed by the AASHTO.
2. The unobstructed vertical clearance shall be not less than fifteen (15) feet clear.
3. The width shall be a minimum of twenty (20) feet clear. The Fire Code Official may require additional width when the traffic flow may be restricted or reduce the width to a minimum of twelve (12) feet for Occupancy Group U or R-3 occupancies.
4. The maximum grade change of the approach to and from any private bridge shall not exceed eight percent for a minimum distance of ten (10) feet.
503.2.6.2 Private bridge certification. Every private bridge hereafter constructed shall be engineered by a licensed professional engineer knowledgeable and experienced in the engineering and design of bridges. Certification that the bridge complies with the design standards required by this Code and the identified standards, and that the bridge was constructed to those standards, shall be provided by the licensed engineer, in writing, to the Fire Code Official. Every private bridge, including existing and those constructed under this Code, shall be certified as to its maximum load limits every ten (10) years or whenever deemed necessary by the fire code official. Such recertification shall be by a licensed professional engineer knowledgeable and experienced in the engineering and design of bridges. All fees charged for the purpose of certification or recertification of private bridges shall be at the owner’s expense. 5 503.2.7 Grade. The grade of fire apparatus access roads shall be no greater than fifteen (15) percent unless specifically approved by the Fire Code Official. 503.2.7.1 Paving. All fire apparatus access roads over eight (8) percent shall be paved with a minimum 0.17 feet of asphaltic concrete on 0.34 feet of aggregate base. All fire apparatus access roads over fifteen (15) percent where approved shall be paved with perpendicularly grooved concrete.
503.7 Fire apparatus access road names. All fire apparatus access road names shall be issued or approved by the appropriate governmental agency.
506.1 Required. Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for life-saving or fire-fighting purposes, the fire code official is authorized to require a key box or other approved emergency access device to be installed in an approved location. The key box or other approved emergency access device shall be of an approved type and shall contain keys or other information to gain necessary access as required by the fire code official. Where a key box is used, it shall be listed in accordance with UL 1037. This jurisdiction utilizes the KNOX Box Security Systems. 507.5.2 Inspection, testing and maintenance. Fire hydrant systems shall be subject to periodic tests as required by the Fire Code Official. Fire hydrant systems shall be maintained in an operative condition at all times and shall be repaired where defective. Additions, repairs, alterations and servicing shall comply with approved standards. When required by the Fire Code Official, hydrants shall be painted in accordance with the most current edition of NFPA 291. 605.3.1 Spark arresters.
605.3.1.1 An approved spark arrester shall be installed on all chimneys, incinerators, smokestacks or similar devices using solid fuel for conveying smoke or hot gases to the outer air. 605.3.1.2 Spark arresters shall have openings in accordance with Section 2113.9.2(3) of the California Building Code and Section 1003.9.2 of the California Residential Code with minimum openings of 3/8” and maximum openings of ½”.
901.1.1 Responsibility. The owner of the protected premises shall be responsible for all fire protection systems within the protected premises, whether existing or installed under this code. 901.2.2 Additional documentation. Additional documentation as required by the Fire Code Official shall be provided to the Fire Code Official in an acceptable format. 901.4 Installation. Fire protection systems shall be maintained in accordance with the original installation standards for that system. All systems shall be extended, altered, or augmented as necessary to maintain and continue protection whenever the building is altered, remodeled or added to. Alterations to fire protection systems shall be done in accordance with applicable standards.
901.4.8 Nonoperational equipment. Any fire protection equipment that is no longer in service shall be removed.
6 901.6.4 Qualifications of Inspection, Testing and Maintenance Personnel. All personnel performing any inspection, testing or maintenance of any fire protection system shall be qualified. Where such inspection, testing and maintenance is performed by an outside service company, the company shall be appropriately licensed by the California Contractors State License Board in accordance with the California Business & Professions Code or by the California State Fire Marshal.
901.6.5 Additional records. All documentation generated during any scheduled inspection or test of any fire protection system, whether required or voluntarily installed, shall be forwarded to the Fire Code Official within fifteen (15) calendar days after the date of the inspection or test. 901.11 Fire Protection Features for Plant Processing and Extraction Facilities 901.11.1 Scope. This section applies to occupancies regulated by Chapter 39 of this Code. 901.11.2 Definitions.
901.11.2.1 Plant processing. Plant processing shall include all plant post-harvest operations, excluding retail sales of plant and related products.
901.11.2.2 Indoor cultivation. Indoor cultivation shall be defined as all nursery or cultivation conducted in other than Group U occupancies (greenhouses). 901.11.3 Fire Protection Systems. All buildings or portions thereof housing plant post-harvest or indoor cultivation operations shall be protected as defined in this section. 901.11.3.1 Fire Sprinklers. Fire sprinklers shall be installed in accordance with 901.11.3.1.1, 901.11.3.1.2, or 901.11.3.1.3
901.11.3.1.1 Fire sprinklers shall be installed in all buildings or portions thereof; such fire sprinkler systems shall be designed to Ordinary Group II design standards in the latest adopted edition of NFPA 13 and Section 903 of this code.
901.11.3.1.2 If the occupancy is classified as a Group H Occupancy the fire sprinkler system may be required to be designed and installed as an Extra Hazard fire sprinkler system 901.11.3.1.3 Where permitted by the fire code official and not otherwise required by this code or the CBC, fire sprinklers may be eliminated in approved buildings less than 500 square feet. 901.11.3.2 Fire Alarm Systems. Fire alarm systems shall be installed in all buildings or portions thereof; such fire alarm systems shall include both fire sprinkler system monitoring and complete occupant notification as specified in the latest adopted edition of NFPA 72 and Section 907 of this code.
901.11.3.3 Special Hazard Systems. Where specified by appropriate UL listings for extraction booths utilizing volatile solvents, dry chemical fire protection systems shall be installed according to the latest adopted edition of NFPA 17. If there is no UL listing for the extraction booth, a dry chemical fire protection system shall be installed. 901.11.3.4 Portable Fire Extinguishers. Portable fire extinguishers shall be installed in accordance with NFPA 10 and Section 906 of this code.
7 903.2 Where required. Approved automatic sprinkler systems shall be provided in all new buildings and structures constructed, moved into or relocated within the jurisdiction.
Exceptions:
(1) Structures not classified as Group R occupancies and not more than five hundred (500) square feet in total floor area.
(2) Detached agricultural buildings, as defined by this code and the CBC, located at least one hundred feet (100) from any other structure or the property line, whichever is closer. (3) Accessory structures not classified as R occupancies associated with existing non-sprinklered R-3 occupancies (one- or two-family dwellings) and less than one thousand five hundred (1500) square feet in total fire area.
(4) Where an insufficient water supply exists to provide for an automatic fire sprinkler system and where the Fire Code Official permits alternate protection.
The following Sections are amended by changing requirements to five hundred (500) square feet for fire sprinkler installation, as follows (the complete text of the section is not provided):
903.2.1.1 Group A-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.2 Group A-2. Change five thousand (5,000) square feet to five hundred (500) square feet. 903.2.1.3 Group A-3. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.4 Group A-4. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.5 Group A-5. Change one thousand (1,000) square feet to five hundred (500) square feet. 903.2.3 Group E. Change twelve thousand (12,000) square feet to five hundred (500) square feet. 903.2.4 Group F-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.4.1 Group F-1. Change two thousand five hundred (2,500) square feet for woodworking operations to five hundred (500) square feet.
903.2.7-1 Group M. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.7-3 Group M. Change twenty-four thousand (24,000) square feet to five hundred (500) square feet.
903.2.9 Group S-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.9.1 Repair Garages. Change ten thousand (10,000) square feet (2 story buildings) and twelve thousand (12,000) square feet (1 story buildings) to five hundred (500) square feet. 903.2.9.2 Bulk storage of tires. Change twenty thousand (20,000) cubic feet to five hundred (500) square feet.
903.2.8 Group R. An automatic sprinkler system installed in accordance with Section 903.3 shall be provided in all buildings with a Group R fire area, including, but not limited to, one- and twofamily dwellings, townhomes, and manufactured homes and mobile homes located outside of licensed mobile home parks hereafter constructed, moved into or relocated within the jurisdiction, including all additions to buildings already equipped with automatic fire sprinkler systems.
8 (Exceptions remain per 2022 California Fire Code)
903.3.1.1.1 -7 Passenger elevator shafts or associated passenger elevator mechanical rooms, where elevator shafts are constructed with a 2–hour fire resistive method.
Section 903.3.1.1.2 of the California Fire Code is deleted. 903.3.1.2 NFPA 13R sprinkler systems. Automatic sprinkler systems in Group R occupancies up to and including four stories in height shall be permitted to be installed throughout in accordance with NFPA 13R as amended in Chapter 47 of this Code.
903.3.1.2.1 Balconies and decks. Sprinkler protection shall be provided for exterior balconies, decks and ground floor patios of dwelling units were the building is of Type V construction, provided there is a roof or deck above. Sidewall sprinklers that are used to protect such areas shall be permitted to be located such that their deflectors are within 1 inch to 6 inches below the structural members and a maximum distance of fourteen (14) inches below the deck of the exterior balconies and decks that are constructed of open wood joist construction. 903.3.1.2.3 Attics. Where NFPA 13R sprinkler systems are installed, all attic areas shall be provided with sprinkler protection in accordance with NFPA 13. 903.3.1.2.4 Sprinkler control valves. Where NFPA 13R sprinkler systems are installed, sprinkler system control valves shall be installed in accordance with NFPA 13. 903.3.1.2.5 Bathrooms. Automatic sprinklers shall be installed in all bathrooms, regardless of square footage, where an electrical receptacle is installed. 903.3.1.2.6 Accessible storage areas. Automatic sprinklers shall be installed in all accessible storage areas.
903.3.1.2.7 Under-stair spaces. Automatic sprinklers shall be installed in all under-stair spaces including all under-stair closets.
903.3.1.3 NFPA 13D sprinkler systems. Automatic fire sprinkler systems installed in one and two-family dwellings, Group R-3 and R-4 congregate living facilities and townhouses shall be permitted to be installed throughout in accordance with NFPA 13D. The requirements of this section supersede the requirements of the California Residential Code. 903.3.1.3.1 All fire sprinkler systems installed in one- and two-family dwellings shall be tested for leakage by undergoing a hydrostatic test made at 200 psi for two-hour duration. 903.3.1.3.2 Each water system supplying both domestic and fire protection systems shall have a single indicating-type control valve, arranged to shut off both the domestic and sprinkler systems. A separate shut-off valve for the domestic system only shall be permitted to be installed. The location of the control valve shall be approved by the Fire Code Official. 903.3.1.3.3 Automatic sprinklers shall be installed in all bathrooms, regardless of square footage, where an electrical receptacle is installed.
903.3.1.3.4 Automatic sprinklers shall be installed in all attached garages and other accessory structures.
903.3.1.3.5 Automatic sprinklers shall be installed in all accessible storage areas. 903.3.1.3.5.1 Automatic sprinklers shall be installed in all under-stair spaces including all closets.
903.3.1.3.6 Local water flow alarms shall be provided on all sprinkler systems. Local water flow alarms shall be powered from the main kitchen refrigerator circuit. The local water flow alarm shall be clearly audible from within the master bedroom at an audibility level of not less than 75 9 dBa. Where no kitchen exists in the building, the water flow alarm shall be powered from the bathroom lighting circuit. As required by the fire code official, interior audible notification appliances or additional water flow alarms are required to be installed at locations specified by the fire code official.
903.3.1.3.7 Automatic fire sprinklers shall be installed to protect all furnaces and heating system appliances.
903.3.1.3.8 A passive purge shall be installed in the master bathroom if served by a public water system per local water purveyor. A placard must be posted adjacent to the fire sprinkler riser. 903.4.1 Monitoring. Alarm, supervisory and trouble signals shall be distinctly different and shall be automatically transmitted to an approved central station, remote supervising station or proprietary supervising station as defined in NFPA 72, or, when approved by the Fire Code Official, shall sound an audible signal at a constantly attended location. The fire alarm system installed to transmit such signals shall be considered a building fire alarm system. (Exceptions remain unchanged)
903.4.2 Alarms. One exterior approved audible appliance shall be connected to every automatic sprinkler system in an approved location. Sprinkler water-flow alarm devices shall be activated by water flow equivalent to the flow of a single sprinkler of the smallest orifice size installed in the system. Where a building fire alarm system is installed, actuation of the automatic sprinkler system shall actuate the building fire alarm system. Interior alarm notification appliances shall be installed as required by Section 903.4.2.1.
903.4.2.1 Where an automatic fire sprinkler system is installed in a building with more than one tenant or with over one hundred (100) sprinkler heads, audible and visible notification appliances shall be installed throughout the building as follows:
a. Audible notification appliances shall be installed so as to be audible at fifteen (15) dBa above average sound pressure level throughout the building.
b. Visible notification appliances shall be installed in all public and common use areas, restrooms and corridors in accordance with the spacing requirements of NFPA 72. c. Visible notification appliances can be eliminated in normally unoccupied portions of buildings where permitted by the Fire Code Official.
EXCEPTION: The requirements of this section do not apply to Group R-3 Occupancies. 903.4.3 Floor control valves. Approved indicating control valves and water flow switches shall be provided at the point of connection to the riser on each floor in all buildings over one story in height and shall be individually annunciated as approved by the Fire Code Official. 904.13.2 System interconnection. The actuation of the fire extinguishing system shall automatically shut down all fuel and electrical power located under the hood, except for the electrical power to the exhaust air supply. The fuel and electrical supply reset shall be manual. 904.13.5.2 Extinguishing system service. Automatic fire extinguishing systems shall be serviced by a CSLB licensed C-16 contractor or a CSFM licensed “A” licensee at least every six months and after any activation of the system. Inspection shall be performed by the owner at least monthly in accordance with the currently adopted edition of NFPA 17-A. The service contractor 10 shall review the records of monthly inspections every six months, and deficiencies shall be reported to the fire code official. A service report shall be forwarded to the fire code official by the licensed service contractor within 15 days after every service on the appropriate AES form. 907.1.6 Multiple Fire Alarm Systems. Multiple fire alarm systems within a single protected premise are not permitted, unless specifically authorized by the Fire Code Official. 907.2 Exception 1. The manual fire alarm box is not required for fire alarm control units dedicated to elevator recall control.
907.6.5 Access. Access shall be provided to each fire alarm system component for periodic inspection, maintenance and testing.
907.6.6.5 Zone transmittal. Where required by the fire code official, fire alarm signals shall be transmitted by zone to the supervising station and retransmitted by zone to the public fire service communications center.
907.6.6 Monitoring. Fire alarm systems, whether required by this Chapter or the California Building Code or voluntarily installed, shall be monitored by an approved supervising station in accordance with NFPA 72 and this Section.
907.6.6.6 Means of communication. The use of either POTS or cable telephone lines with a digital alarm communicator transmitter shall not be permitted.
EXCEPTION. Where no other communications methods are available, the use of telephone lines shall be permitted to be used on a temporary basis not to exceed one year from the date of final acceptance test or until permitted alternate means of communications are available. 907.7.2 Completion documents. The following documentation shall be provided at the time of acceptance testing for all fire alarm system installations:
1. A record of completion in accordance with NFPA 72.
2. A contractor’s statement verifying that the system has been installed in accordance with the approved plans and specifications and has been 100% tested in accordance with NFPA 72.
3. A contractor’s affidavit of personnel qualifications, indicating that all personnel involved with the installation of the fire alarm system meet the qualification requirements of the Fire Code Official.
1205.1.1 Signing and Marking. In addition to signing and marking requirements of the California Building Code and the California Residential Code, the following signing and marking is required:
1205.1.1.1 Main Panel Exterior Marking. A placard is required to be permanently affixed to the main service disconnect panel. The placard shall be red in color with white capital letters at least 1/2” in height and in a non-serif font, to read “SOLAR DISCONNECT INSIDE PANEL.” The placard shall be constructed of weather-resistant, durable plastic with engraved letters, or other approved material.
11 1205.1.1.2 Circuit Disconnecting Means Marking. A permanent label is to be affixed adjacent to the circuit breaker controlling the inverter or other photovoltaic system electrical controller. The label shall have contrasting color capital letters at least 3/8” in height and in a non—serif font, to read “SOLAR DISCONNECT.” The label shall be constructed of durable adhesive material or other approved material.
1205.1.1.3 Secondary Power Sources. Where photovoltaic systems are interconnected to battery systems, generator backup systems, or other secondary power systems, additional signage acceptable to the fire code official shall be required indicating the location of the secondary power source shutoff switch.
1205.1.1.4 Installer Information. Signage acceptable to the fire code official indicating the name and emergency telephone number of the installing contractor shall be required to be installed adjacent to the main disconnect.
Section 1205.2.1, Exceptions 1 and 2 of the California Fire Code are deleted in their entirety. 1205.2.1.4 Hip and Valley Layout. Hip and Valley Layouts. Modules shall be located no closer than one and one-half feet (1-1/2’) to a hip or valley if modules are to be placed on both sides of a hip or valley. Where modules are located on only one side of a hip or valley that is of equal length, the modules shall be permitted to be placed directly adjacent to the hip or valley. 1206.15 Signage acceptable to the fire code official shall be required indicating the location of the stationary fuel cell power system.
3905.3. Fire Protection Systems. Fire protection systems in occupancies regulated by this chapter shall be in accordance with Section 901.11 of this Code.
D103.2 Grade. Fire apparatus access roads shall not exceed fifteen (15) percent in grade with a maximum side slope of five (5) percent.
EXCEPTION: Grades steeper than fifteen (15) percent, if approved by the Fire Code Official, shall be paved with perpendicularly grooved concrete.
APPENDIX Q: STANDARD FIRE CONDITIONS FOR SINGLE FAMILY DWELLINGS SECTION Q101 GENERAL
Q101.1 Scope. Applications for the construction or remodel of single family dwellings, including one- and two-family dwellings, townhomes, modular and manufactured homes, and mobile homes outside of established mobile home parks, shall be subject to the fire conditions in this appendix when conditioned by the Fire Code Official.
Q101.2 Conflicting sections. Where provisions in this appendix conflict with other sections of this Code or other appendices, the provisions of this appendix shall prevail unless otherwise directed by the Fire Code Official.
12 SECTION Q102 ROADS
Q102.1 General. These conditions will be used primarily when conditioning a subdivision or other project that requires roads. Roads identified in this Section are vehicular access to more than two (2) parcels; more than four (4) residential units; or access to any industrial or commercial occupancy. Includes public and private streets and lanes.
Q102.2 Road access. (FIRE 001). Access roads shall be required for every building when any portion of the exterior wall of the first story is located more than one hundred fifty (150) feet from fire department access. All roads shall be constructed to provide a minimum of two (2) ten (10) feet wide traffic lanes with an unobstructed vertical clearance of not less than fifteen (15) feet. The roadway surface shall provide unobstructed access to conventional drive vehicles including sedans and fire apparatus and shall be an all-weather surface designed to support the imposed load of fire apparatus (75,000 pounds). Each road shall have an approved name.
Q102.3 Roadway engineering. (FIRE 002). The grade for all roads shall not exceed fifteen percent (15%) with a maximum side slope of five percent (5%). Where road grades are 8 percent (8%) or less, an all-weather aggregate base is required at a minimum or as required in other sections of the City of San Juan Bautista Code. Where road grades exceed eight percent (8%), a minimum structural roadway surface of 0.17 feet of asphaltic concrete on 0.34 feet of aggregate base shall be required. The length of vertical curves in roadways, exclusive of gutters, ditches and drainage structures designed to hold or divert water, shall not be less than one hundred (100) feet. No roadway turn shall have a horizontal inside radius of less than fifty (50) feet. A roadway turn radius of fifty (50) to one hundred (100) feet is required to have an additional four (4) feet of roadway surface. A roadway turn radius of one hundred (100) to two hundred (200) feet is required to have an additional two (2) feet of roadway surface. Roadway turnarounds shall be required on dead-end roads in excess of one hundred fifty (150) feet of surface length. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road.
If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q102.4 Dead end roads.
Q102.4.1 Parcels less than one acre. (FIRE 003). For parcels less than one acre, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed eight hundred (800) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply. Each dead-end road shall have a turnaround constructed at its terminus. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road.
If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q102.4.2 Parcels greater than one acre and not exceeding five acres (FIRE 004). For parcels greater than one acre and not exceeding five acres, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed one thousand three hundred twenty (1,320) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its 13 furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply. Each dead-end road shall have a turnaround constructed at its terminus. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road.
If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length Q102.4.3 Parcels greater than five acres and not exceeding twenty (20) acres. (FIRE 005). For parcels greater than five acres and not exceeding twenty (20) acres, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed two thousand six hundred forty (2,640) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply. Each dead-end road shall have turnarounds at its terminus and at no greater than one thousand three hundred twenty (1,320) foot intervals. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q102.4.4 Parcels greater than twenty (20) acres. (FIRE 006). For parcels greater than twenty (20) acres, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed five thousand two hundred eighty (5,280) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply. Each dead-end road shall have turnarounds at its terminus and at no greater than one thousand three hundred twenty (1,320)-foot intervals. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
SECTION Q103 DRIVEWAYS, GATES, AND BRIDGES
Q103.1 Driveways. (FIRE 007). Driveway identified in this Section is defined as a vehicle access that serves up to two (2) parcels with no more than two (2) residential units and any number on non-commercial or industrial buildings on each parcel. Driveways shall not be less than twelve (12) feet wide traffic lane and minimum fourteen (14) feet wide unobstructed clearance, with an unobstructed vertical clearance of not less than fifteen (15) feet. The grade for all driveways shall not exceed fifteen percent (15%) with a maximum side slope of five percent (5%). Where driveway grades are eight percent (8%) or less, an all-weather surface such as an aggregate base shall meet minimum fire requirements. Other types of material for driveways may be required by the Code. Where the grade exceeds eight percent (8%), a minimum structural roadway surface of 0.17 feet of asphaltic concrete on 0.34 feet of aggregate base shall be required. The driveway surface shall be capable of supporting the imposed load of fire apparatus forty thousand (40,000) pounds, and be accessible by conventional-drive vehicles, including sedans. For driveways with turns ninety (90) degrees and less, the minimum horizontal inside radius of curvature shall be twenty-five (25) feet. For driveways with turns greater than ninety (90) degrees, the minimum horizontal inside radius curvature shall be twenty-eight (28) feet. For all driveway turns, an additional surface of four (4) feet shall be added. All driveways exceeding one hundred fifty (150) feet in length, but less than eight hundred (800) feet in length, shall 14 provide a turnout near the midpoint of the driveway. Where the driveway exceeds eight hundred (800) feet, turnouts shall be provided at no greater than four hundred (400)-foot intervals.
Turnouts shall be a minimum of twelve (12) feet wide and thirty (30) feet long with a minimum of twenty (25) foot taper at both ends. Turnarounds shall be required on driveways in excess of one hundred fifty (150) feet of surface length and shall be thirty (30) feet long with a minimum twenty-five (25) foot taper at both ends. Turnarounds shall be required on driveways in excess of one hundred fifty (150) feet of surface length and shall be located within fifty (50) feet of the primary building. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the driveway. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q103.2 Gates. (FIRE 008). All gates providing access from a road to a driveway shall be located at least thirty (30) feet from the roadway and shall open to allow a vehicle to stop without obstructing traffic on the road. Gate entrances shall be at least two (2) feet wider than the width of the traffic lane but in no case be less than fourteen (14) feet wide unobstructed and unobstructed vertical clearance of fifteen (15) feet. Where a one-way road with a single traffic lane provides access to a gated entrance, a forty (40) foot turning radius shall be used. Where gates are to be locked, the installation of a key box or other acceptable means for immediate access by emergency equipment may be required.
Q103.3 Bridges. (FIRE 009). All new and reconstructed bridges shall be at least the width of the roadbed and berms, but in no case less than twelve (12) feet wide. Bridge width on all roads exceeding tertiary standards shall not be less than the width of the two lanes with berms. All bridges shall be designed for HS15-44 loading and have guardrails. Appropriate signage, including but not limited to, weight ratings or vertical clearance limitations, and one-way road or single-lane road conditions, shall be provided at both entrances to any bridge. One-lane bridges may be permitted if there is unobstructed visibility across the entire bridge, and turnouts are provided at both bridge ends. The fire authority may impose more stringent requirements for bridges.
SECTION Q104 SIGNS AND ADDRESSES
Q104.1 Road signs. (FIRE 010). All newly constructed or approved roads and streets shall be designated by names or numbers, posted on signs clearly visible and legible from the roadway.
Size of letters, numbers and symbols for street and road signs shall be a minimum four-inch letter height, ½-inch stroke, and shall be a color that is reflective and clearly contrasts with the background color of the sign. All numerals shall be Arabic. Street and road signs shall be noncombustible and shall be visible and legible from both directions of vehicle travel for a distance of at least one hundred (100) feet. Height, visibility, legibility, and orientation of street and road signs shall be meet the provisions of the jurisdiction. This section does not require any entity to rename or renumber existing roads or streets, nor shall a roadway providing access only to a single commercial or industrial occupancy require naming or numbering. Signs required under this section identifying intersecting roads, streets and private lanes shall be placed at the intersection of those roads, streets and/or private lanes. Signs identifying traffic access or flow limitations (i.e., weight or vertical clearance limitations, dead-end road, one-way road or single lane conditions, etc.) shall be placed: (a) at the intersection preceding the traffic access 15 limitation; and (b) not more than one hundred (100) feet before such traffic access limitation.
Road, street and private lane signs required by this article shall be installed prior to final acceptance of road improvements by the Fire Code Official.
Q104.2 Addresses for buildings. (FIRE 011). All buildings shall be issued an address in accordance with jurisdictional requirements. Each occupancy, including detached accessory dwelling units (ADU), except accessory buildings, shall have its own permanently posted address. When multiple occupancies exist within a single building, each individual occupancy shall be separately identified by its own address. Letters, numbers and symbols for addresses shall be a minimum of four-inch (4”) height, 1/2-inch stroke, contrasting with the background color of the sign, and shall be Arabic. Commercial Occupancy shall have a minimum of 18 inch to 24 inch sized address numbers located at the top corner of the building on approval from the fire official. The sign and numbers shall be reflective and made of a noncombustible material.
Address signs shall be placed at each driveway entrance and at each driveway split. Address signs shall be and visible from both directions of travel along the road. In all cases, the address shall be posted at the beginning of construction and shall be maintained thereafter. Address signs along one-way roads shall be visible from both directions of travel. Where multiple addresses are required at a single driveway, they shall be mounted on a single sign. Where a roadway provides access solely to a single commercial occupancy, the address sign shall be placed at the nearest road intersection providing access to that site. Permanent address numbers shall be posted prior to requesting final clearance.
SECTION Q105 WATER SUPPLY
Q105.1 Water systems. (FIRE 012). The provisions of this condition shall apply when new parcels are approved by a local jurisdiction. The emergency water system shall be available onsite prior to the completion of road construction, where a community water system is approved, or prior to the completion of building construction, where an individual system is approved.
Approved water systems shall be installed and made serviceable prior to the time of construction.
Water systems constructed, extended or modified to serve a new development, a change of use, or an intensification of use, shall be designed to meet, in addition to average daily demand, NFPA Standard 1142 or other adopted standards. The quantity of water required pursuant to this chapter shall be in addition to the domestic demand and shall be permanently and immediately available.
Q105.2 (RESERVED) (FIRE 013).
Q105.3 Single parcel fire protection water supply. (FIRE 014). For development of structures totaling less than three thousand (3,000) square feet on a single parcel, the minimum fire protection water supply shall be four thousand nine hundred (4,900) gallons. For development of structures totaling three thousand (3,000) square feet or more on a single parcel, the minimum fire protection water supply shall be nine thousand eight hundred (9,800) gallons. For development of structures totaling more than ten thousand (10,000) square feet on a single parcel, the reviewing authority may require additional fire protection water supply. Other water supply alternatives, including ISO Rural Class 8 mobile water systems, may be permitted by the fire authority to provide for the same practical effect. The quantity of water required by this 16 condition shall be in addition to the domestic demand and shall be permanently and immediately available.
Q105.4 Fire hydrants and valves. (FIRE 015). A fire hydrant or fire valve is required. The hydrant or fire valve shall be eighteen (18) inches above grade, eight feet from flammable vegetation, no closer than four feet nor further than twelve (12) feet from a roadway, and in a location where fire apparatus using it will not block the roadway. The hydrant serving any building shall be not less than fifty (50) feet and not more than one thousand (1,000) feet by road from the building it is to serve. Minimum hydrant standards shall include a brass head and valve with at least one 2 1/2-inch National Hose outlet supplied by a minimum four inch main and riser. More restrictive hydrant requirements may be applied by the Reviewing Authority. Each hydrant/valve shall be identified with a reflectorized blue marker, with minimum dimensions of three inches, located on the driveway address sign, non-combustible post or fire hydrant riser. If used, the post shall be within three feet of the hydrant/valve, with the blue marker not less than three feet or greater than five feet above the ground, visible from the driveway. On paved roads or driveways, reflectorized blue markers shall be permitted to be installed in accordance with the State Fire Marshal's Guidelines for Fire Hydrant Markings Along State Highways and Freeways, May 1988.
SECTION Q106 SETBACKS
Q106.1 Setbacks. (FIRE 016). Except as permitted by the fire code official, all parcels one acre and larger shall provide a minimum thirty (30) foot setback for new buildings and accessory buildings from all property lines and/or the center of the road. For parcels less than one-acre, alternate fuel modification standards or other requirements may be imposed by the Fire Code Official to provide the same practical effect.
SECTION Q107 VEGETATION AND DEBRIS DISPOSAL
Q107.1 Disposition of vegetation and debris fuels. (FIRE 017). Disposal, including chipping, burying, or removal to a landfill site approved by the local jurisdiction, of vegetation and debris caused by site development and construction, road and driveway construction, and fuel modification shall be completed prior to final clearance of the related permit.
SECTION Q108 GREENBELTS
Q108.1 Greenbelts. (FIRE 018). Subdivisions and other developments, which propose greenbelts as a part of the development plan, shall locate said greenbelts strategically as a separation between wild land fuels and structures. The locations shall be approved by the Fire Code Official.
SECTION Q109 DEFENSIBLE SPACE
Q109.1 Standard defensible space requirements. (FIRE 019). Defensible space requirements shall meet Section 4291 of the Public Resources Code or the Code, whichever is more restrictive.
Additional or alternate fire protection approved by the Fire Code Official may be required to 17 provide reasonable fire safety. Environmentally sensitive areas may require alternative fire protection, to be determined by the Fire Code Official and other jurisdictional authorities.
Q109.2 (RESERVED) (FIRE 020).
SECTION Q110 FIRE PROTECTION SYSTEMS
Q110.1 Residential fire sprinkler systems (Standard). (FIRE 021). The building(s) and attached structure(s) shall be fully protected with automatic fire sprinkler system(s). Installation shall be in accordance with the applicable NFPA standard. A minimum of four sets of plans for fire sprinkler systems must be submitted by a California licensed C-16 contractor and approved prior to installation. This requirement is not intended to delay issuance of a building permit. A rough sprinkler inspection must be scheduled by the installing contractor and completed prior to requesting a framing inspection.
Q110.2 (RESERVED) (FIRE 022).
Q110.3 (RESERVED) (FIRE 023).
Q110.4 Residential fire alarm systems. (FIRE 024). The residence shall be fully protected with an approved household fire warning system as defined by NFPA 72. Plans and specifications for the household fire warning system shall be submitted by a California licensed C-10 contractor and approved prior to installation. Household fire warning systems installed in lieu of singlestation smoke alarms required by the California Residential Code shall meet the requirements of the California Residential Code.
Q110.5 (RESERVED) (FIRE 025).
APPENDIX R: ROOFS
SECTION R101 GENERAL
R101.1 Scope. Applications for the construction or remodel of any buildings shall be subject to the roofing conditions of this Appendix when conditioned by the Fire Code Official.
R101.2 Conflicting Sections. Where provisions in this Appendix conflict with other sections of this Code or other appendices, the provisions of this Appendix shall prevail unless otherwise directed by the Fire Code Official.
SECTION R102 NEW BUILDINGS
R102.1 General. (FIRE 026). Roofing requirements for all new buildings shall be a minimum Class “B” roof assembly as defined by the International Building Code.
EXCEPTION: Greenhouses shall be exempt from the requirements of this Section. 18 R102.2 Very High Hazard Severity Zones. (FIRE 027). Roofing requirements for all new buildings in Very High Hazard Severity Zones shall be a minimum Class “A” roof assembly as defined by the International Building Code.
R102.3 Reserved SBCO EXLUDED
SECTION R103 EXISTING BUILDINGS
R103.1 General. (FIRE 026). Roofing requirements for existing buildings when fifty percent (50%) or more of the roof area is reroofed within a one-year period after the issuance of a building permit shall be a minimum Class “B” roof assembly as defined by the California Building Code. Where there is no permit issued, this section is applicable to buildings constructed after the effective date of this code and to buildings where fifty percent (50%) or more of the roof area is reroofed within a one-year period after commencing construction.
R103.2 Very High Hazard Severity Zone. (FIRE 027). Roofing requirements for existing buildings within a very high hazard severity zone when fifty percent (50%) or more of the roof area is reroofed within a one-year period after the issuance of a building permit shall be a minimum Class “A” roof assembly as defined by the International Building Code. Where there is no permit issued, this Section is applicable to such buildings constructed after the effective date of this code and to buildings where fifty percent (50%) or more of the roof area is reroofed within a one-year period after commencing construction.
R103.3 RESERVED SBCO EXCLUDED
SECTION R104 ADDITIONS TO EXISTING BUILDINGS
R104.1 General. The requirements of this Appendix shall apply to all additions to existing buildings, except that only the new portions of the roof shall be required to meet the requirements of this Appendix.”
3. Findings Adopted: The City Council hereby adopts the factual findings set forth in Section 5-1-100 of Chapter 5-1 of the San Juan Bautista Municipal Code, relating to the amendments made to the California Fire Code
4. Savings Clause: Repeal of any provision of the San Juan Bautista Municipal Code or any other city ordinance herein will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.
5. Severability: If any provision, section, paragraph, sentence or word of this Ordinance, or the application thereof to any person, property or circumstance is rendered or declared invalid by any court of competent jurisdiction, the remaining provisions, sections, 19 paragraphs, sentences or words of this ordinance, and their application to other persons, property or circumstances, shall not be affected thereby and shall remain in full force and effect and, to that end, the provisions of this Ordinance are severable.
6. Interpretation: The provisions of this ordinance are enacted for the public health, safety and welfare and are to be liberally construed to obtain the beneficial purposes thereof. In the event of any conflict between this ordinance and any law, rule or regulation of the State of California, that requirement which established the higher standard of safety shall govern. Failure to comply with such standard of safety shall be a violation of the Municipal Code. Any provision of the Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistency and no further, is hereby repealed or modified to the extent necessary to affect the provisions of this ordinance.
7. Filing of Findings: The City Clerk is hereby directed to file a copy of this ordinance with the California Building Standards Commission of the State of California.
8. Notice: The City Council hereby determines that the form of the Notice of the public hearing held on February 21, 2023, which was published on February 10, 2023, and February 17, 2023, is sufficient to give notice to interested persons of the purpose of the ordinance and the subject matter thereof.
9. Liability: The provisions of this ordinance shall not be construed as imposing upon the City of San Juan Bautista any liability or responsibility for damage to persons or property resulting from defective work, nor shall the City of San Juan Bautista, or any official, employee or agent thereof, be held as assuming any such liability or responsibility by reason of the review or inspection authorized by the provisions of this ordinance or of any permits or certificates issued under this ordinance.
10. Effective Date: This ordinance shall take effect on March 24, 2023.
11. Posting of Ordinance. Within fifteen (15) days after the passage of this ordinance, the City Clerk shall cause it to be posted in three (3) public places designated by resolution of the City Council and a summary of the ordinance, prepared by the City Attorney, shall be published in a local newspaper used to publish official notices for the City of San Juan Bautista prior to the effective date.
The forgoing ordinance was introduced at a special meeting of the City Council of the City of San Juan Bautista duly held on January 24, 2023, and was adopted at a regular meeting of the City Council duly held on February 21, 2023, by the following votes:
20 AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
__________________________
Leslie Q. Jordan, Mayor
ATTEST:
_____________________________
Elizabeth Soto, Deputy City Clerk
Page | 1 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) Presented by the Monterey County Fire Prevention Officers Association and The San Benito County Fire Prevention Officers.
Page | 2 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 101.1 Title. These regulations shall be known as the Fire Code for the City of San Juan Bautista, hereinafter referred to as “Fire Code.”
101.2.1 Appendices. Provisions in all appendices to the 2022 California Fire Code are hereby adopted in their entirety and shall apply.
102.1 Construction and design provisions. The construction and design provisions of this Code shall apply to:
1. Structures, facilities and conditions arising after the adoption of this Code.
2. Existing structures, facilities and conditions not legally in existence at the time of adoption of this Code.
3. Existing structures, facilities and conditions when identified in specific Sections of this Code.
4. Existing structures, facilities and conditions, which, in the opinion of the Fire Code Official, constitute a distinct hazard to life and property.
5. Existing Structures Alterations and repairs.
a. All new work performed in alterations and/or repairs to existing structures shall comply with the current provisions of this Chapter. b. When alterations and/or repairs result in the removal, alteration, modification, replacement and/or repair of fifty percent (50%) or more of the external walls of a building, or result in the removal, modification, replacement and/or repair of fifty percent (50%) or more of the existing internal structural and/or non-structural framework, independently or in combination thereof, within a five year period, the entire building shall be made to conform to the current provisions of this Chapter.
c. Calculations of linear wall measurements shall be shown on all plans submitted for building permits, on the cover page in the project description of said plans.
d. The determination under this section of the requirement for upgrading any existing structure to full conformance with current provisions of this Chapter shall be at the sole discretion of the Fire Code Official.
103.0 Responsibility for enforcement.
103.0.1 Within established fire protection districts and community services districts, responsibility for enforcement of this Code shall be under the direction of the Fire Chief within each district.
Page | 3 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 103.0.2 In areas of Hollister outside incorporated cities or organized special districts or fire districts, responsibility for enforcement of this Code shall be under the direction of the Chief Building Official with Code Enforcement of the AHJ.
104.1.1 Police powers. The fire code official and his deputies shall have the powers of police officers in performing their duties under this Code. When requested to do so by the fire code official, the chief of police of the jurisdiction is authorized to assign such available police officers as necessary to assist the fire code official in enforcing the provisions of this Code. 105.5.0 Agricultural Explosive Devices. An operational permit is required for storage or use of any agricultural explosive device including “bird bombs”. 112.2 Owner/occupant responsibility. Correction and abatement of violations of this Code shall be the responsibility of the owner. If an occupant creates, or allows to be created, hazardous conditions in violation of this Code, the occupant shall be held responsible for the correction and abatement of such hazardous conditions.
112.4 Violation penalties. Persons who shall violate any provision of this Code or shall fail to comply with any of the requirements thereof or shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this Code, shall be guilty of an infraction, punishable by a fine in conformance with the County Fire Department.
113.4 Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be guilty of an infraction as specified in Section 112.4 of this Code.
202 Definitions
ALL WEATHER SURFACE. A hard paved road surface constructed to the minimum standards adopted by the jurisdiction.
BRIDGE. A structure to carry a roadway over a depression or obstacle.
Page | 4 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) IDLE PALLET. A pallet or similar product storage and/or lifting device not currently in use and empty of product.
503.2.6.1 Private bridge engineering. Every private bridge hereafter constructed shall meet the following engineering requirements:
1. The weight shall be designed for a minimum of HS-20 loading as prescribed by the AASHTO.
2. The unobstructed vertical clearance shall be not less than fifteen (15) feet clear.
3. The width shall be a minimum of twenty (20) feet clear. The Fire Code Official may require additional width when the traffic flow may be restricted or reduce the width to a minimum of twelve (12) feet for Occupancy Group U or R-3 occupancies.
4. The maximum grade change of the approach to and from any private bridge shall not exceed eight percent for a minimum distance of ten (10) feet. 503.2.6.2 Private bridge certification. Every private bridge hereafter constructed shall be engineered by a licensed professional engineer knowledgeable and experienced in the engineering and design of bridges. Certification that the bridge complies with the design standards required by this Code and the identified standards, and that the bridge was constructed to those standards, shall be provided by the licensed engineer, in writing, to the Fire Code Official.
Every private bridge, including existing and those constructed under this Code, shall be certified as to its maximum load limits every ten (10) years or whenever deemed necessary by the fire code official. Such recertification shall be by a licensed professional engineer knowledgeable and experienced in the engineering and design of bridges. All fees charged for the purpose of certification or recertification of private bridges shall be at the owner’s expense. 503.2.7 Grade. The grade of fire apparatus access roads shall be no greater than fifteen (15) percent unless specifically approved by the Fire Code Official. 503.2.7.1 Paving. All fire apparatus access roads over eight (8) percent shall be paved with a minimum 0.17 feet of asphaltic concrete on 0.34 feet of aggregate base. All fire apparatus access roads over fifteen (15) percent where approved shall be paved with perpendicularly grooved concrete.
503.7 Fire apparatus access road names. All fire apparatus access road names shall be issued or approved by the appropriate governmental agency.
Page | 5 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 506.1 Required. Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for lifesaving or fire-fighting purposes, the fire code official is authorized to require a key box or other approved emergency access device to be installed in an approved location. The key box or other approved emergency access device shall be of an approved type and shall contain keys or other information to gain necessary access as required by the fire code official. Where a key box is used, it shall be listed in accordance with UL 1037. This jurisdiction utilizes the KNOX Box Security Systems.
507.5.2 Inspection, testing and maintenance. Fire hydrant systems shall be subject to periodic tests as required by the Fire Code Official. Fire hydrant systems shall be maintained in an operative condition at all times and shall be repaired where defective. Additions, repairs, alterations and servicing shall comply with approved standards. When required by the Fire Code Official, hydrants shall be painted in accordance with the most current edition of NFPA 291.
605.3.1 Spark arresters.
605.3.1.1 An approved spark arrester shall be installed on all chimneys, incinerators, smokestacks or similar devices using solid fuel for conveying smoke or hot gases to the outer air.
605.3.1.2 Spark arresters shall have openings in accordance with Section 2113.9.2(3) of the California Building Code and Section 1003.9.2 of the California Residential Code with minimum openings of 3/8” and maximum openings of ½”. 901.1.1 Responsibility. The owner of the protected premises shall be responsible for all fire protection systems within the protected premises, whether existing or installed under this code.
901.2.2 Additional documentation. Additional documentation as required by the Fire Code Official shall be provided to the Fire Code Official in an acceptable format.
901.4 Installation. Fire protection systems shall be maintained in accordance with the original installation standards for that system. All systems shall be extended, altered, or augmented as necessary to maintain and continue protection Page | 6 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) whenever the building is altered, remodeled or added to. Alterations to fire protection systems shall be done in accordance with applicable standards. 901.4.8 Nonoperational equipment. Any fire protection equipment that is no longer in service shall be removed.
901.6.4 Qualifications of Inspection, Testing and Maintenance Personnel. All personnel performing any inspection, testing or maintenance of any fire protection system shall be qualified. Where such inspection, testing and maintenance is performed by an outside service company, the company shall be appropriately licensed by the California Contractors State License Board in accordance with the California Business & Professions Code or by the California State Fire Marshal.
901.6.5 Additional records. All documentation generated during any scheduled inspection or test of any fire protection system, whether required or voluntarily installed, shall be forwarded to the Fire Code Official within fifteen (15) calendar days after the date of the inspection or test.
901.11 Fire Protection Features for Plant Processing and Extraction Facilities 901.11.1 Scope. This section applies to occupancies regulated by Chapter 39 of this Code.
901.11.2 Definitions.
901.11.2.1 Plant processing. Plant processing shall include all plant post-harvest operations, excluding retail sales of plant and related products. 901.11.2.2 Indoor cultivation. Indoor cultivation shall be defined as all nursery or cultivation conducted in other than Group U occupancies (greenhouses). 901.11.3 Fire Protection Systems. All buildings or portions thereof housing plant post-harvest or indoor cultivation operations shall be protected as defined in this section.
901.11.3.1 Fire Sprinklers. Fire sprinklers shall be installed in accordance with 901.11.3.1.1, 901.11.3.1.2, or 901.11.3.1.3
901.11.3.1.1 Fire sprinklers shall be installed in all buildings or portions thereof; such fire sprinkler systems shall be designed to Ordinary Group II design standards in the latest adopted edition of NFPA 13 and Section 903 of this code.
Page | 7 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 901.11.3.1.2 If the occupancy is classified as a Group H Occupancy the fire sprinkler system may be required to be designed and installed as an Extra Hazard fire sprinkler system
901.11.3.1.3 Where permitted by the fire code official and not otherwise required by this code or the CBC, fire sprinklers may be eliminated in approved buildings less than 500 square feet.
901.11.3.2 Fire Alarm Systems. Fire alarm systems shall be installed in all buildings or portions thereof; such fire alarm systems shall include both fire sprinkler system monitoring and complete occupant notification as specified in the latest adopted edition of NFPA 72 and Section 907 of this code. 901.11.3.3 Special Hazard Systems. Where specified by appropriate UL listings for extraction booths utilizing volatile solvents, dry chemical fire protection systems shall be installed according to the latest adopted edition of NFPA 17. If there is no UL listing for the extraction booth, a dry chemical fire protection system shall be installed.
901.11.3.4 Portable Fire Extinguishers. Portable fire extinguishers shall be installed in accordance with NFPA 10 and Section 906 of this code. 903.2 Where required. Approved automatic sprinkler systems shall be provided in all new buildings and structures constructed, moved into or relocated within the jurisdiction.
Exceptions:
(1) Structures not classified as Group R occupancies and not more than five hundred (500) square feet in total floor area.
(2) Detached agricultural buildings, as defined by this code and the CBC, located at least one hundred feet (100) from any other structure or the property line, whichever is closer.
(3) Accessory structures not classified as R occupancies associated with existing non-sprinklered R-3 occupancies (one- or two-family dwellings) and less than one thousand five hundred (1500) square feet in total fire area. (4) Where an insufficient water supply exists to provide for an automatic fire sprinkler system and where the Fire Code Official permits alternate protection.
The following Sections are amended by changing requirements to five hundred (500) square feet for fire sprinkler installation, as follows (the complete text of the section is not provided):
903.2.1.1 Group A-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
Page | 8 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 903.2.1.2 Group A-2. Change five thousand (5,000) square feet to five hundred (500) square feet.
903.2.1.3 Group A-3. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.4 Group A-4. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.1.5 Group A-5. Change one thousand (1,000) square feet to five hundred (500) square feet.
903.2.3 Group E. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.4 Group F-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.4.1 Group F-1. Change two thousand five hundred (2,500) square feet for woodworking operations to five hundred (500) square feet. 903.2.7-1 Group M. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.7-3 Group M. Change twenty-four thousand (24,000) square feet to five hundred (500) square feet.
903.2.9 Group S-1. Change twelve thousand (12,000) square feet to five hundred (500) square feet.
903.2.9.1 Repair Garages. Change ten thousand (10,000) square feet (2 story buildings) and twelve thousand (12,000) square feet (1 story buildings) to five hundred (500) square feet.
903.2.9.2 Bulk storage of tires. Change twenty thousand (20,000) cubic feet to five hundred (500) square feet.
903.2.8 Group R. An automatic sprinkler system installed in accordance with Section 903.3 shall be provided in all buildings with a Group R fire area, including, but not limited to, one- and two-family dwellings, townhomes, and manufactured homes and mobile homes located outside of licensed mobile home parks hereafter constructed, moved into or relocated within the jurisdiction, including all additions to buildings already equipped with automatic fire sprinkler systems.
(Exceptions remain per 2022 California Fire Code)
903.3.1.1.1 -7 Passenger elevator shafts or associated passenger elevator mechanical rooms, where elevator shafts are constructed with a 2–hour fire resistive method.
Section 903.3.1.1.2 of the California Fire Code is deleted.
Page | 9 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 903.3.1.2 NFPA 13R sprinkler systems. Automatic sprinkler systems in Group R occupancies up to and including four stories in height shall be permitted to be installed throughout in accordance with NFPA 13R as amended in Chapter 47 of this Code.
903.3.1.2.1 Balconies and decks. Sprinkler protection shall be provided for exterior balconies, decks and ground floor patios of dwelling units were the building is of Type V construction, provided there is a roof or deck above.
Sidewall sprinklers that are used to protect such areas shall be permitted to be located such that their deflectors are within 1 inch to 6 inches below the structural members and a maximum distance of fourteen (14) inches below the deck of the exterior balconies and decks that are constructed of open wood joist construction.
903.3.1.2.3 Attics. Where NFPA 13R sprinkler systems are installed, all attic areas shall be provided with sprinkler protection in accordance with NFPA 13. 903.3.1.2.4 Sprinkler control valves. Where NFPA 13R sprinkler systems are installed, sprinkler system control valves shall be installed in accordance with NFPA 13.
903.3.1.2.5 Bathrooms. Automatic sprinklers shall be installed in all bathrooms, regardless of square footage, where an electrical receptacle is installed. 903.3.1.2.6 Accessible storage areas. Automatic sprinklers shall be installed in all accessible storage areas.
903.3.1.2.7 Under-stair spaces. Automatic sprinklers shall be installed in all under-stair spaces including all under-stair closets.
903.3.1.3 NFPA 13D sprinkler systems. Automatic fire sprinkler systems installed in one and two-family dwellings, Group R-3 and R-4 congregate living facilities and townhouses shall be permitted to be installed throughout in accordance with NFPA 13D. The requirements of this section supersede the requirements of the California Residential Code.
903.3.1.3.1 All fire sprinkler systems installed in one- and two-family dwellings shall be tested for leakage by undergoing a hydrostatic test made at 200 psi for two-hour duration.
903.3.1.3.2 Each water system supplying both domestic and fire protection systems shall have a single indicating-type control valve, arranged to shut off both the domestic and sprinkler systems. A separate shut-off valve for the domestic system only shall be permitted to be installed. The location of the control valve shall be approved by the Fire Code Official. 903.3.1.3.3 Automatic sprinklers shall be installed in all bathrooms, regardless of square footage, where an electrical receptacle is installed. 903.3.1.3.4 Automatic sprinklers shall be installed in all attached garages and other accessory structures.
903.3.1.3.5 Automatic sprinklers shall be installed in all accessible storage areas.
Page | 10 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 903.3.1.3.5.1 Automatic sprinklers shall be installed in all under-stair spaces including all closets.
903.3.1.3.6 Local water flow alarms shall be provided on all sprinkler systems.
Local water flow alarms shall be powered from the main kitchen refrigerator circuit. The local water flow alarm shall be clearly audible from within the master bedroom at an audibility level of not less than 75 dBa. Where no kitchen exists in the building, the water flow alarm shall be powered from the bathroom lighting circuit. As required by the fire code official, interior audible notification appliances or additional water flow alarms are required to be installed at locations specified by the fire code official.
903.3.1.3.7 Automatic fire sprinklers shall be installed to protect all furnaces and heating system appliances.
903.3.1.3.8 A passive purge shall be installed in the master bathroom if served by a public water system per local water purveyor. A placard must be posted adjacent to the fire sprinkler riser.
903.4.1 Monitoring. Alarm, supervisory and trouble signals shall be distinctly different and shall be automatically transmitted to an approved central station, remote supervising station or proprietary supervising station as defined in NFPA 72, or, when approved by the Fire Code Official, shall sound an audible signal at a constantly attended location. The fire alarm system installed to transmit such signals shall be considered a building fire alarm system. (Exceptions remain unchanged)
903.4.2 Alarms. One exterior approved audible appliance shall be connected to every automatic sprinkler system in an approved location. Sprinkler water-flow alarm devices shall be activated by water flow equivalent to the flow of a single sprinkler of the smallest orifice size installed in the system. Where a building fire alarm system is installed, actuation of the automatic sprinkler system shall actuate the building fire alarm system. Interior alarm notification appliances shall be installed as required by Section 903.4.2.1.
903.4.2.1 Where an automatic fire sprinkler system is installed in a building with more than one tenant or with over one hundred (100) sprinkler heads, audible and visible notification appliances shall be installed throughout the building as follows:
a. Audible notification appliances shall be installed so as to be audible at fifteen (15) dBa above average sound pressure level throughout the building. b. Visible notification appliances shall be installed in all public and common use areas, restrooms and corridors in accordance with the spacing requirements of NFPA 72.
Page | 11 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) c. Visible notification appliances can be eliminated in normally unoccupied portions of buildings where permitted by the Fire Code Official.
EXCEPTION: The requirements of this section do not apply to Group R-3 Occupancies.
903.4.3 Floor control valves. Approved indicating control valves and water flow switches shall be provided at the point of connection to the riser on each floor in all buildings over one story in height and shall be individually annunciated as approved by the Fire Code Official.
904.13.2 System interconnection. The actuation of the fire extinguishing system shall automatically shut down all fuel and electrical power located under the hood, except for the electrical power to the exhaust air supply. The fuel and electrical supply reset shall be manual.
904.13.5.2 Extinguishing system service. Automatic fire extinguishing systems shall be serviced by a CSLB licensed C-16 contractor or a CSFM licensed “A” licensee at least every six months and after any activation of the system.
Inspection shall be performed by the owner at least monthly in accordance with the currently adopted edition of NFPA 17-A. The service contractor shall review the records of monthly inspections every six months, and deficiencies shall be reported to the fire code official. A service report shall be forwarded to the fire code official by the licensed service contractor within 15 days after every service on the appropriate AES form.
907.1.6 Multiple Fire Alarm Systems. Multiple fire alarm systems within a single protected premise are not permitted, unless specifically authorized by the Fire Code Official.
907.2 Exception 1. The manual fire alarm box is not required for fire alarm control units dedicated to elevator recall control.
907.6.5 Access. Access shall be provided to each fire alarm system component for periodic inspection, maintenance and testing.
907.6.6.5 Zone transmittal. Where required by the fire code official, fire alarm signals shall be transmitted by zone to the supervising station and retransmitted by zone to the public fire service communications center.
Page | 12 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) 907.6.6 Monitoring. Fire alarm systems, whether required by this Chapter or the California Building Code or voluntarily installed, shall be monitored by an approved supervising station in accordance with NFPA 72 and this Section. 907.6.6.6 Means of communication. The use of either POTS or cable telephone lines with a digital alarm communicator transmitter shall not be permitted.
EXCEPTION. Where no other communications methods are available, the use of telephone lines shall be permitted to be used on a temporary basis not to exceed one year from the date of final acceptance test or until permitted alternate means of communications are available.
907.7.2 Completion documents. The following documentation shall be provided at the time of acceptance testing for all fire alarm system installations:
1. A record of completion in accordance with NFPA 72.
2. A contractor’s statement verifying that the system has been installed in accordance with the approved plans and specifications and has been 100% tested in accordance with NFPA 72.
3. A contractor’s affidavit of personnel qualifications, indicating that all personnel involved with the installation of the fire alarm system meet the qualification requirements of the Fire Code Official.
1205.1.1 Signing and Marking. In addition to signing and marking requirements of the California Building Code and the California Residential Code, the following signing and marking is required:
1205.1.1.1 Main Panel Exterior Marking. A placard is required to be permanently affixed to the main service disconnect panel. The placard shall be red in color with white capital letters at least 1/2” in height and in a non-serif font, to read “SOLAR DISCONNECT INSIDE PANEL.” The placard shall be constructed of weather-resistant, durable plastic with engraved letters, or other approved material.
1205.1.1.2 Circuit Disconnecting Means Marking. A permanent label is to be affixed adjacent to the circuit breaker controlling the inverter or other photovoltaic system electrical controller. The label shall have contrasting color capital letters at least 3/8” in height and in a non—serif font, to read “SOLAR DISCONNECT.” The label shall be constructed of durable adhesive material or other approved material.
1205.1.1.3 Secondary Power Sources. Where photovoltaic systems are interconnected to battery systems, generator backup systems, or other Page | 13 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) secondary power systems, additional signage acceptable to the fire code official shall be required indicating the location of the secondary power source shutoff switch.
1205.1.1.4 Installer Information. Signage acceptable to the fire code official indicating the name and emergency telephone number of the installing contractor shall be required to be installed adjacent to the main disconnect.
Section 1205.2.1, Exceptions 1 and 2 of the California Fire Code are deleted in their entirety.
1205.2.1.4 Hip and Valley Layout. Hip and Valley Layouts. Modules shall be located no closer than one and one-half feet (1-1/2’) to a hip or valley if modules are to be placed on both sides of a hip or valley. Where modules are located on only one side of a hip or valley that is of equal length, the modules shall be permitted to be placed directly adjacent to the hip or valley. 1206.15 Signage acceptable to the fire code official shall be required indicating the location of the stationary fuel cell power system.
3905.3. Fire Protection Systems. Fire protection systems in occupancies regulated by this chapter shall be in accordance with Section 901.11 of this Code.
D103.2 Grade. Fire apparatus access roads shall not exceed fifteen (15) percent in grade with a maximum side slope of five (5) percent.
EXCEPTION: Grades steeper than fifteen (15) percent, if approved by the Fire Code Official, shall be paved with perpendicularly grooved concrete.
Page | 14 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) APPENDIX Q: STANDARD FIRE CONDITIONS FOR SINGLE FAMILY
DWELLINGS
SECTION Q101 GENERAL
Q101.1 Scope. Applications for the construction or remodel of single family dwellings, including one- and two-family dwellings, townhomes, modular and manufactured homes, and mobile homes outside of established mobile home parks, shall be subject to the fire conditions in this appendix when conditioned by the Fire Code Official.
Q101.2 Conflicting sections. Where provisions in this appendix conflict with other sections of this Code or other appendices, the provisions of this appendix shall prevail unless otherwise directed by the Fire Code Official.
SECTION Q102 ROADS
Q102.1 General. These conditions will be used primarily when conditioning a subdivision or other project that requires roads. Roads identified in this Section are vehicular access to more than two (2) parcels; more than four (4) residential units; or access to any industrial or commercial occupancy. Includes public and private streets and lanes.
Q102.2 Road access. (FIRE 001). Access roads shall be required for every building when any portion of the exterior wall of the first story is located more than one hundred fifty (150) feet from fire department access. All roads shall be constructed to provide a minimum of two (2) ten (10) feet wide traffic lanes with an unobstructed vertical clearance of not less than fifteen (15) feet. The roadway surface shall provide unobstructed access to conventional drive vehicles including sedans and fire apparatus and shall be an all-weather surface designed Page | 15 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) to support the imposed load of fire apparatus (75,000 pounds). Each road shall have an approved name.
Q102.3 Roadway engineering. (FIRE 002). The grade for all roads shall not exceed fifteen percent (15%) with a maximum side slope of five percent (5%).
Where road grades are 8 percent (8%) or less, an all-weather aggregate base is required at a minimum or as required in other sections of the City of San Juan Bautista Code. Where road grades exceed eight percent (8%), a minimum structural roadway surface of 0.17 feet of asphaltic concrete on 0.34 feet of aggregate base shall be required. The length of vertical curves in roadways, exclusive of gutters, ditches and drainage structures designed to hold or divert water, shall not be less than one hundred (100) feet. No roadway turn shall have a horizontal inside radius of less than fifty (50) feet. A roadway turn radius of fifty (50) to one hundred (100) feet is required to have an additional four (4) feet of roadway surface. A roadway turn radius of one hundred (100) to two hundred (200) feet is required to have an additional two (2) feet of roadway surface.
Roadway turnarounds shall be required on dead-end roads in excess of one hundred fifty (150) feet of surface length. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q102.4 Dead end roads.
Q102.4.1 Parcels less than one acre. (FIRE 003). For parcels less than one acre, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed eight hundred (800) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply. Each dead-end road shall have a turnaround constructed at its terminus. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q102.4.2 Parcels greater than one acre and not exceeding five acres (FIRE 004).
For parcels greater than one acre and not exceeding five acres, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed one thousand three hundred twenty (1,320) feet.
All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the Page | 16 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) shortest allowable length shall apply. Each dead-end road shall have a turnaround constructed at its terminus. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length
Q102.4.3 Parcels greater than five acres and not exceeding twenty (20) acres. (FIRE 005). For parcels greater than five acres and not exceeding twenty (20) acres, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed two thousand six hundred forty (2,640) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply. Each dead-end road shall have turnarounds at its terminus and at no greater than one thousand three hundred twenty (1,320) foot intervals. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q102.4.4 Parcels greater than twenty (20) acres. (FIRE 006). For parcels greater than twenty (20) acres, the maximum length of a dead-end road, including all dead-end roads accessed from that dead-end road, shall not exceed five thousand two hundred eighty (5,280) feet. All dead-end road lengths shall be measured from the edge of the roadway surface at the intersection that begins the road to the end of the road surface at its furthest point. Where a dead-end road serves parcels of differing sizes, the shortest allowable length shall apply.
Each dead-end road shall have turnarounds at its terminus and at no greater than one thousand three hundred twenty (1,320)-foot intervals. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the road. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
SECTION Q103 DRIVEWAYS, GATES, AND BRIDGES
Q103.1 Driveways. (FIRE 007). Driveway identified in this Section is defined as a vehicle access that serves up to two (2) parcels with no more than two (2) residential units and any number on non-commercial or industrial buildings on each parcel. Driveways shall not be less than twelve (12) feet wide traffic lane and minimum fourteen (14) feet wide unobstructed clearance, with an unobstructed vertical clearance of not less than fifteen (15) feet. The grade for all driveways shall not exceed fifteen percent (15%) with a maximum side slope of five percent (5%). Where driveway grades are eight percent (8%) or less, an all- Page | 17 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) weather surface such as an aggregate base shall meet minimum fire requirements. Other types of material for driveways may be required by the Code. Where the grade exceeds eight percent (8%), a minimum structural roadway surface of 0.17 feet of asphaltic concrete on 0.34 feet of aggregate base shall be required. The driveway surface shall be capable of supporting the imposed load of fire apparatus forty thousand (40,000) pounds, and be accessible by conventional-drive vehicles, including sedans. For driveways with turns ninety (90) degrees and less, the minimum horizontal inside radius of curvature shall be twenty-five (25) feet. For driveways with turns greater than ninety (90) degrees, the minimum horizontal inside radius curvature shall be twenty-eight (28) feet. For all driveway turns, an additional surface of four (4) feet shall be added. All driveways exceeding one hundred fifty (150) feet in length, but less than eight hundred (800) feet in length, shall provide a turnout near the midpoint of the driveway. Where the driveway exceeds eight hundred (800) feet, turnouts shall be provided at no greater than four hundred (400)-foot intervals. Turnouts shall be a minimum of twelve (12) feet wide and thirty (30) feet long with a minimum of twenty (25) foot taper at both ends. Turnarounds shall be required on driveways in excess of one hundred fifty (150) feet of surface length and shall be thirty (30) feet long with a minimum twenty-five (25) foot taper at both ends.
Turnarounds shall be required on driveways in excess of one hundred fifty (150) feet of surface length and shall be located within fifty (50) feet of the primary building. The minimum turning radius for a turnaround shall be forty (40) feet from the center line of the driveway. If a hammerhead/T is used, the top of the “T” shall be a minimum of sixty (60) feet in length.
Q103.2 Gates. (FIRE 008). All gates providing access from a road to a driveway shall be located at least thirty (30) feet from the roadway and shall open to allow a vehicle to stop without obstructing traffic on the road. Gate entrances shall be at least two (2) feet wider than the width of the traffic lane but in no case be less than fourteen (14) feet wide unobstructed and unobstructed vertical clearance of fifteen (15) feet. Where a one-way road with a single traffic lane provides access to a gated entrance, a forty (40) foot turning radius shall be used. Where gates are to be locked, the installation of a key box or other acceptable means for immediate access by emergency equipment may be required.
Q103.3 Bridges. (FIRE 009). All new and reconstructed bridges shall be at least the width of the roadbed and berms, but in no case less than twelve (12) feet wide. Bridge width on all roads exceeding tertiary standards shall not be less than the width of the two lanes with berms. All bridges shall be designed for HS15-44 loading and have guardrails. Appropriate signage, including but not limited to, weight ratings or vertical clearance limitations, and one-way road or single-lane road conditions, shall be provided at both entrances to any bridge.
Page | 18 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) One-lane bridges may be permitted if there is unobstructed visibility across the entire bridge, and turnouts are provided at both bridge ends. The fire authority may impose more stringent requirements for bridges.
SECTION Q104 SIGNS AND ADDRESSES
Q104.1 Road signs. (FIRE 010). All newly constructed or approved roads and streets shall be designated by names or numbers, posted on signs clearly visible and legible from the roadway. Size of letters, numbers and symbols for street and road signs shall be a minimum four-inch letter height, ½-inch stroke, and shall be a color that is reflective and clearly contrasts with the background color of the sign. All numerals shall be Arabic. Street and road signs shall be noncombustible and shall be visible and legible from both directions of vehicle travel for a distance of at least one hundred (100) feet. Height, visibility, legibility, and orientation of street and road signs shall be meet the provisions of the jurisdiction. This section does not require any entity to rename or renumber existing roads or streets, nor shall a roadway providing access only to a single commercial or industrial occupancy require naming or numbering. Signs required under this section identifying intersecting roads, streets and private lanes shall be placed at the intersection of those roads, streets and/or private lanes. Signs identifying traffic access or flow limitations (i.e., weight or vertical clearance limitations, dead-end road, one-way road or single lane conditions, etc.) shall be placed: (a) at the intersection preceding the traffic access limitation; and (b) not more than one hundred (100) feet before such traffic access limitation. Road, street and private lane signs required by this article shall be installed prior to final acceptance of road improvements by the Fire Code Official.
Q104.2 Addresses for buildings. (FIRE 011). All buildings shall be issued an address in accordance with jurisdictional requirements. Each occupancy, including detached accessory dwelling units (ADU), except accessory buildings, shall have its own permanently posted address. When multiple occupancies exist within a single building, each individual occupancy shall be separately identified by its own address. Letters, numbers and symbols for addresses shall be a minimum of four-inch (4”) height, 1/2-inch stroke, contrasting with the background color of the sign, and shall be Arabic. Commercial Occupancy shall have a minimum of 18 inch to 24 inch sized address numbers located at the top corner of the building on approval from the fire official. The sign and numbers shall be reflective and made of a noncombustible material. Address signs shall be placed at each driveway entrance and at each driveway split. Address signs shall be and visible from both directions of travel along the road. In all cases, the address shall be posted at the beginning of construction and shall be maintained Page | 19 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) thereafter. Address signs along one-way roads shall be visible from both directions of travel. Where multiple addresses are required at a single driveway, they shall be mounted on a single sign. Where a roadway provides access solely to a single commercial occupancy, the address sign shall be placed at the nearest road intersection providing access to that site. Permanent address numbers shall be posted prior to requesting final clearance.
SECTION Q105 WATER SUPPLY
Q105.1 Water systems. (FIRE 012). The provisions of this condition shall apply when new parcels are approved by a local jurisdiction. The emergency water system shall be available on-site prior to the completion of road construction, where a community water system is approved, or prior to the completion of building construction, where an individual system is approved. Approved water systems shall be installed and made serviceable prior to the time of construction.
Water systems constructed, extended or modified to serve a new development, a change of use, or an intensification of use, shall be designed to meet, in addition to average daily demand, NFPA Standard 1142 or other adopted standards. The quantity of water required pursuant to this chapter shall be in addition to the domestic demand and shall be permanently and immediately available.
Q105.2 (RESERVED) (FIRE 013).
Q105.3 Single parcel fire protection water supply. (FIRE 014). For development of structures totaling less than three thousand (3,000) square feet on a single parcel, the minimum fire protection water supply shall be four thousand nine hundred (4,900) gallons. For development of structures totaling three thousand (3,000) square feet or more on a single parcel, the minimum fire protection water supply shall be nine thousand eight hundred (9,800) gallons.
For development of structures totaling more than ten thousand (10,000) square feet on a single parcel, the reviewing authority may require additional fire protection water supply. Other water supply alternatives, including ISO Rural Class 8 mobile water systems, may be permitted by the fire authority to provide for the same practical effect. The quantity of water required by this condition shall be in addition to the domestic demand and shall be permanently and immediately available.
Q105.4 Fire hydrants and valves. (FIRE 015). A fire hydrant or fire valve is required. The hydrant or fire valve shall be eighteen (18) inches above grade, eight feet from flammable vegetation, no closer than four feet nor further than twelve (12) feet from a roadway, and in a location where fire apparatus using it will not block the roadway. The hydrant serving any building shall be not less Page | 20 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) than fifty (50) feet and not more than one thousand (1,000) feet by road from the building it is to serve. Minimum hydrant standards shall include a brass head and valve with at least one 2 1/2-inch National Hose outlet supplied by a minimum four inch main and riser. More restrictive hydrant requirements may be applied by the Reviewing Authority. Each hydrant/valve shall be identified with a reflectorized blue marker, with minimum dimensions of three inches, located on the driveway address sign, non-combustible post or fire hydrant riser. If used, the post shall be within three feet of the hydrant/valve, with the blue marker not less than three feet or greater than five feet above the ground, visible from the driveway. On paved roads or driveways, reflectorized blue markers shall be permitted to be installed in accordance with the State Fire Marshal's Guidelines for Fire Hydrant Markings Along State Highways and Freeways, May 1988.
SECTION Q106 SETBACKS
Q106.1 Setbacks. (FIRE 016). Except as permitted by the fire code official, all parcels one acre and larger shall provide a minimum thirty (30) foot setback for new buildings and accessory buildings from all property lines and/or the center of the road. For parcels less than one-acre, alternate fuel modification standards or other requirements may be imposed by the Fire Code Official to provide the same practical effect.
SECTION Q107 VEGETATION AND DEBRIS DISPOSAL
Q107.1 Disposition of vegetation and debris fuels. (FIRE 017). Disposal, including chipping, burying, or removal to a landfill site approved by the local jurisdiction, of vegetation and debris caused by site development and construction, road and driveway construction, and fuel modification shall be completed prior to final clearance of the related permit.
SECTION Q108 GREENBELTS
Q108.1 Greenbelts. (FIRE 018). Subdivisions and other developments, which propose greenbelts as a part of the development plan, shall locate said greenbelts strategically as a separation between wild land fuels and structures.
The locations shall be approved by the Fire Code Official.
SECTION Q109 DEFENSIBLE SPACE
Page | 21 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) Q109.1 Standard defensible space requirements. (FIRE 019). Defensible space requirements shall meet Section 4291 of the Public Resources Code or the Code, whichever is more restrictive. Additional or alternate fire protection approved by the Fire Code Official may be required to provide reasonable fire safety.
Environmentally sensitive areas may require alternative fire protection, to be determined by the Fire Code Official and other jurisdictional authorities.
Q109.2 (RESERVED) (FIRE 020).
SECTION Q110 FIRE PROTECTION SYSTEMS
Q110.1 Residential fire sprinkler systems (Standard). (FIRE 021). The building(s) and attached structure(s) shall be fully protected with automatic fire sprinkler system(s). Installation shall be in accordance with the applicable NFPA standard. A minimum of four sets of plans for fire sprinkler systems must be submitted by a California licensed C-16 contractor and approved prior to installation. This requirement is not intended to delay issuance of a building permit. A rough sprinkler inspection must be scheduled by the installing contractor and completed prior to requesting a framing inspection.
Q110.2 (RESERVED) (FIRE 022).
Q110.3 (RESERVED) (FIRE 023).
Q110.4 Residential fire alarm systems. (FIRE 024). The residence shall be fully protected with an approved household fire warning system as defined by NFPA
72. Plans and specifications for the household fire warning system shall be submitted by a California licensed C-10 contractor and approved prior to installation. Household fire warning systems installed in lieu of single-station smoke alarms required by the California Residential Code shall meet the requirements of the California Residential Code.
Q110.5 (RESERVED) (FIRE 025).
APPENDIX R: ROOFS
SECTION R101 GENERAL
R101.1 Scope. Applications for the construction or remodel of any buildings shall be subject to the roofing conditions of this Appendix when conditioned by the Fire Code Official.
Page | 22 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) R101.2 Conflicting Sections. Where provisions in this Appendix conflict with other sections of this Code or other appendices, the provisions of this Appendix shall prevail unless otherwise directed by the Fire Code Official.
SECTION R102 NEW BUILDINGS
R102.1 General. (FIRE 026). Roofing requirements for all new buildings shall be a minimum Class “B” roof assembly as defined by the International Building Code.
EXCEPTION: Greenhouses shall be exempt from the requirements of this Section.
R102.2 Very High Hazard Severity Zones. (FIRE 027). Roofing requirements for all new buildings in Very High Hazard Severity Zones shall be a minimum Class “A” roof assembly as defined by the International Building Code.
R102.3 Reserved SBCO EXLUDED
SECTION R103 EXISTING BUILDINGS
R103.1 General. (FIRE 026). Roofing requirements for existing buildings when fifty percent (50%) or more of the roof area is reroofed within a one-year period after the issuance of a building permit shall be a minimum Class “B” roof assembly as defined by the California Building Code. Where there is no permit issued, this section is applicable to buildings constructed after the effective date of this code and to buildings where fifty percent (50%) or more of the roof area is reroofed within a one-year period after commencing construction.
R103.2 Very High Hazard Severity Zone. (FIRE 027). Roofing requirements for existing buildings within a very high hazard severity zone when fifty percent (50%) or more of the roof area is reroofed within a one-year period after the issuance of a building permit shall be a minimum Class “A” roof assembly as defined by the International Building Code. Where there is no permit issued, this Section is applicable to such buildings constructed after the effective date of this code and to buildings where fifty percent (50%) or more of the roof area is reroofed within a one-year period after commencing construction.
R103.3 RESERVED SBCO EXCLUDED
SECTION R104 ADDITIONS TO EXISTING BUILDINGS
Page | 23 2022 San Juan Bautista Fire Code Amendments (FINAL VERSION – 10/27/2022) R104.1 General. The requirements of this Appendix shall apply to all additions to existing buildings, except that only the new portions of the roof shall be required to meet the requirements of this Appendix.
Item #7A
City Council Meeting
January 24, 2023
1 CITY OF SAN JUAN BAUTISTA
CITY COUNCIL REPORT
AGENDA TITLE: ADOPT A RESOLUTION ACCEPTING THE CITY’S
FISCAL YEAR 21/22 AUDIT
MEETING DATE: January 24, 2023
DEPARTMENT HEAD: Don Reynolds, City Manager
RECOMMENDED ACTION(S):
It is recommended that the City Council adopt the attached Resolution accepting the City’s Fiscal Year 21/22 Audit.
BACKGROUND INFORMATION:
The City is required by laws of the State of California to audit the financial statements after the end of each fiscal year. This practice provides complete transparency for the public, and is a tool to hold government officials fiscally accountable. If the Audit discloses findings of mishandling of the City’s finances, or in violation of any of its finance policies, this is where to look for these facts and make changes to correct these errors and discrepancies.
It is the City Manager’s duty to present this audit and describe the City’s fiscal status. The City Manager is looking for any signals of alarm, and after that, looking at trends. In the past three years, the audits have all been found to be “clean.” Like an individual will use a tax return, the city uses a clean audit to help leverage debt. Trends are powerful projection tools, that identify where there are deficits, where expenses exceed revenues, and those need to be identified and corrected in future budgets.
When the budget is assembled and presented to the public, nearly a quarter of expenses and revenues, have not been received or spent. The term “Year to Date” is used, and then a “Year End Projection” is determined based upon the annual trends. The audit provides annual trends, and works as a tool to disclose dangers and risks, as well as opportunities over longer periods of time.
The audit then confirms the assumptions and projections made in the budget, six months after the budget is adopted. The Audit from the prior fiscal year, is where the new budget is born.
There is a phrase known as “Zero Based” budgeting. This is a practice that occurs from time to time when the incremental adjustments made year to year are working against the actual trends identified. All assumptions are discarded, and the budget practice starts at “0.” In February 2020, Item #7A
City Council Meeting
January 24, 2023
2 Citygate and Associates assigned a retired Finance Director to “audit the audit.” There were many recommendations to help improve the systems in place, but the City’s finances were proven to be accurately reported, and strong.
DISCUSSION:
The City is presenting to the City Council and the citizens of San Juan Bautista a clean Audit.
There are no findings of concern.
Focusing on trends, attached are notes provided by Wendy Cummings, CPA, summarizing and highlighting areas of the audit and comparing them to prior years. In almost every case, the City’s fund balances and net worth are stronger than last year. The City is consistently investing in its infrastructure and paying down debt on time. General Fund revenues increased $500,000 over expenditures. The Enterprise Funds (Water and Sewer) are healthier than in prior years.
FISCAL IMPACT:
The acceptance of the City’s audit allows the budget process to begin.
ATTACHMENTS:
Resolution
Summary Notes
City of San Juan Bautista
Audited Financial Statements
June 30, 2022
Governmental Activities ~
Assets are higher than prior year by $810k, primarily due to the implementation of the new GASB 87 lease standard, which created a $182k lease receivable. In addition the City ended the year with cash balances of $4,816k, higher than prior year by $983k. Offsetting the increase in assets was a decrease in governmental receivable of $519k. This is primarily due to the Measure G receivable of $637k in the prior year.
Liabilities are in line with prior year.
Unrestricted fund balances of $4,586k are higher than prior year by $354k.
Enterprise Activities ~
Assets are lower than prior year by $479k, primarily due to a decrease in cash as a result of costs of capital improvement projects.
Liabilities are lower than the prior year by $469k. The decrease is primarily due to the paydown of debt and accrued expenses.
Unrestricted fund balance of $762k, is higher than the prior year by $122k.
Primary Government (includes enterprise funds) ~
Charges for services and operating grants totaled $3,035k, combined with taxes, property, and other revenues of $2,646k, totaling $5,681k in revenue for the year. This is an decrease of $213k over prior year’s total of $5,894k. This is primarily due to the Measure G funds received in the prior year.
Expenditures/expenses totaled $5,253k for the year. These expenditures were lower than the prior year expenditures by $122k, primarily due to capital projects costs in the prior year.
The beginning net position for the year was $14,300k. With the change in net position totaling $428k, bringing the net position to $14,728k.
Enterprise funds brought in $2,350k of operating revenue which is $169k lower than the prior year. This decrease is due to a combination of lower water revenue from conservation, offset by higher wastewater revenue from a mid-year increase in rates.
Enterprise fund operating expenses were $2,377k, which were $74k lower than the prior year.
This is primarily due to lower personnel and contract costs in the current year.
Overall, the enterprise funds brought in an increase in decrease in net position of $75k.
Cash flow provided $1,086k from operating activities for the year, which is better that the prior year by $64k.
Other cash flow related items, for paydown of debt and capital purchases were a combined decrease in cash of $1,807k. The use of cash in the prior year for similar activities was $1,659k.
The primary component of the use of cash was for the payment of capital projects.
Combined revenues were over budget by $650k, primarily in sales taxes and intergovernmental grants. Charges for services were below budget by $316k, this lower than budgeted number is offset by onetime grants of $134k, bringing the actual charges of services below budget by $182k.
These budgeted line items are primarily used to pay for community development expenditures.
Combined expenditures were over budget by $360k, primarily in general government and community development. In the general government most of the over budget amounts were attributed to higher payroll and costs related to studies.
The total of revenue under expenditures for the year were less than $1k. When combined with leaser revenue and transfers in from other funds, the total net change in fund balance was a positive $501k. Better than the prior year’s total of a negative $93k, by $594k.
The general fund ended this year with a positive fund balance of $5,114k, better than prior year by $501k. Of this year end balance $3,012k is uncommitted and available for use in governmental operations.
RESOLUTION 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN BAUTISTA
ACCEPTING THE SAN JUAN BAUTISTA MUNICIPAL AUDIT FOR FISCAL YEAR 2021-2022
WHEREAS, the City of San Juan Bautista is required under the laws of the State of California to have their financial statements audited annually, and WHEREAS, an audit of the City’s financial statements was conducted by Independent Auditor Bryant L. Jolley, CPA, and
WHEREAS, the City Council held a meeting on January 24, 2023 where, in accordance with all State and Municipal Code requirements, they reviewed the audit.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Juan Bautista accepts the FY 2021-2022 San Juan Bautista Municipal Audit.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista at a regular meeting held on the 24th day of January 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
Leslie Q. Jordan, Mayor
ATTEST:
___________________________
Elizabeth Soto, Deputy City Clerk
CITY OF SAN JUAN BAUTISTA
INDEPENDENT AUDITOR’S REPORT
AND
FINANCIAL STATEMENTS
JUNE 30, 2022
TABLE OF C O N T E N T S
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet – Governmental Funds 6
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities 7
Statement of Revenue, Expenditures and Changes in
Fund Balance – Governmental Funds 8
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenue, Expense and Changes in Fund Net
Position – Proprietary Funds 11
Statement of Cash Flow – Proprietary Funds 12
Notes to the Basic Financial Statements 13 – 29
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 30
Supplemental Only Information
Combining Balance Sheet – Nonmajor
Governmental Funds 31 – 32
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance – Nonmajor
Governmental Funds 33 – 34
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 GOVERNMENT AUDITING STANDARDS 35 – 36
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of San Juan Bautista, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Juan Bautista (the “City), California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 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 auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
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 statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 30 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 17, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
January 17, 2023
See accompanying notes. 4
CITY OF SAN JUAN BAUTISTA
STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 4,815,578 $ 1,364,266 $ 6,179,844 $ Restricted cash and investments - 415,620 415,620
Accounts receivable, net 53,334 265,142 318,476
Due from other governmental agencies 519,558 - 519,558
Lease receivable 182,167 - 182,167
Internal balances 1,567,771 (1,567,771) -
Prepaid expense and other assets 7,367 - 7,367
Capital assets (net of allowance
for depreciation) 13,169,107 4,165,745 17,334,852
Total assets 13,646,364 11,311,520 24,957,884
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on debt refunding 1,390,900 - 1,390,900 Total deferred outflows of resources 1,390,900 - 1,390,900
LIABILITIES
Accounts payable and accrued expense 530,208 433,740 963,948 Accrued interest - 92,935 92,935
Deposits - 164,333 164,333
Long-term liabilities
Due within one year - 300,000 300,000
Due in more than one year 9,917,835 - 9,917,835
Total liabilities 10,908,843 530,208 11,439,051
DEFERRED INFLOWS OF RESOURCES
Deferred right to use - lease revenue - 182,167 182,167 Total deferred inflows of resources - 182,167 182,167
NET POSITION
Net investment in capital assets 4,165,745 2,951,272 7,117,017 Restricted for capital improvements 982,392 415,620 1,398,012 Restricted for specific projects and programs 864,786 - 864,786 Unrestricted 761,529 4,586,222 5,347,751
Total net position $ 4,128,421 10,599,145 $ 14,727,566 $ See accompanying notes. 5
CITY OF SAN JUAN BAUTISTA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government $ - 668,073 $ 251,661 $ - $ (416,412) $ - $ (416,412) $ Public works 564,878 10,621 30,502 - (523,755) - (523,755)Parks and recreation 100,700 1,466 3,600 - (95,634) - (95,634)Public safety 728,643 3,225 163,932 - (561,486) - (561,486)Community development 841,233 85,639 134,452 - (621,142) - (621,142) Total governmental activities 2,903,527 100,951 584,147 - (2,218,429) - (2,218,429) Business-type activities
Water 1,187,063 1,119,236 - - (67,827) - (67,827)
Sewer 1,190,214 1,230,892 - - - 40,678 40,678
Total business-type activities 2,377,277 2,350,128 - - - (27,149) (27,149) Total primary government $ 5,280,804 2,451,079 $ 584,147 $ - $ (2,218,429) (27,149) (2,245,578) General Revenues
Property taxes and assessments - 752,460 752,460
Sales taxes - 1,147,776 1,147,776
Lodging taxes - 234,014 234,014
Franchise taxes - 118,858 118,858
Business licenses - 19,564 19,564
Motor vehicle in-lieu - 220,791 220,791
Interest and rent 8,610 126,139 134,749
Other - 45,155 45,155
Transfers (56,737) 56,737 -
Total general revenue 2,721,494 (48,127) 2,673,367
Change in Net Position (75,276) 503,065 427,789
Net Position
Beginning of year 10,096,080 4,203,697 14,299,777
End of year $ 10,599,145 4,128,421 $ 14,727,566 $
Program Revenue Primary Government
Net Revenue/(Expense) and Changes in Net Position
Functions/Programs
See accompanying notes. 6
CITY OF SAN JUAN BAUTISTA
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2022
Non Major Total
Governmental Governmental
General Funds Funds
ASSETS
Cash and investments 3,541,328 $ 1,274,250 $ 4,815,578 $ Accounts receivable 53,334 - 53,334
Due from other governmental agencies 466,332 53,226 519,558 Lease receivable 182,167 - 182,167
Due from other funds 6,370 - 6,370
Advance to other funds 1,567,771 - 1,567,771
Prepaid expense and other assets - 7,367 7,367
Total assets $ 1,327,476 5,824,669 $ 7,152,145 $
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 528,170 $ 2,038 $ 530,208 $ Due to other funds 6,370 - 6,370
Total liabilities 8,408 528,170 536,578
Deferred Inflows of Resources
Deferred right of use - lease revenue - 182,167 182,167 Total deferred inflows of resources - 182,167 182,167
Fund Balance
Nonspendable
Advances to other funds 1,567,771 - 1,567,771
Prepaid 7,367 - 7,367
Restricted
Public safety - 246,146 246,146
Capital improvement projects - 795,172 795,172
Circulation improvements - 187,220 187,220
Lighting and landscape maintenance - 90,530 90,530
Committed
Buildings 213,950 - 213,950
Vehicles 314,160 - 314,160
Unassigned - 3,011,084 3,011,084
Total fund balance 5,114,332 1,319,068 6,433,400
Total liabilities, deferred inflows of
resources, and fund balance 5,824,669 $ 1,327,476 $ 7,152,145 $ See accompanying notes. 7
CITY OF SAN JUAN BAUTISTA
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION
OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2022
Total governmental fund balances $ 6,433,400
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds 4,165,745 Net position of governmental activities $ 10,599,145
See accompanying notes. 8
CITY OF SAN JUAN BAUTISTA
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE –
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Non Major Total
Governmental Governmental
General Funds Funds
Revenue
Taxes 2,199,604 $ 155,438 $ 2,355,042 $
Intergovernmental 389,713 269,345 659,058
Charges for services 22,431 - 22,431
Licenses, permits and impact fees 203,078 10,621 213,699 Fines and forfeitures 3,305 - 3,305
Interest and rent 145,642 - 145,642
Total revenue 2,963,773 435,404 3,399,177
Expenditures
Current
General government 657,658 - 657,658
Public works 330,012 139,980 469,992
Parks and recreation 78,656 - 78,656
Public safety 700,781 700,781 -
Community development 841,233 841,233 -
Capital outlay 355,670 - 355,670
Total expenditures 2,964,010 139,980 3,103,990
Revenue over/(under) expenditures (237) 295,424 295,187 Other Financing Sources/(Uses)
Lease revenue 25,591 - 25,591
Operating transfers in/(out) 475,492 (418,755) 56,737
Total other financing sources (uses) 501,083 (418,755) 82,328 Change in Fund Balance (123,331) 500,846 377,515
Fund Balance
Beginning of year 4,613,486 1,442,399 6,055,885
End of year $ 5,114,332 1,319,068 $ 6,433,400 $
See accompanying notes. 9
CITY OF SAN JUAN BAUTISTA
RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN
FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022
Net change in fund balance - total governmental funds $ 377,515 Amounts reported for governmental activities in the statement of activities are different because:
Depreciation expense on capital assets is reported in the Statement of Activities, but it does not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in Governmental Funds (155,209)
Certain revenues in Governmental Funds are deferred because they are not collected within the prescribed time period after fiscal year end. Those revenues are recognized on the accrual basis in the Statement of Net Assets (74,911) Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital outlay in the current period. 355,670
Change in net position of governmental activities $ 503,065 See accompanying notes. 10
CITY OF SAN JUAN BAUTISTA
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
JUNE 30, 2022
Total
Proprietary
Water Sewer Funds
ASSETS
Current assets
Cash and investments $ 1,123,068 $ 241,198 $ 1,364,266
Restricted cash and investments 207,810 207,810 415,620 Accounts receivable, net 139,548 125,594 265,142
Total current assets 588,556 1,456,472 2,045,028
Non-current assets
Property, plant and equipment
(net of allowance for depreciation) 6,256,616 6,912,491 13,169,107 Total noncurrent assets 6,256,616 6,912,491 13,169,107
Total assets 6,845,172 8,368,963 15,214,135
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on debt refunding 625,905 764,995 1,390,900 Total deferred outflows of resources 625,905 764,995 1,390,900
LIABILITIES
Current liabilities
Accounts payable and accrued expense 38,914 394,826 433,740 Accrued interest 51,114 41,821 92,935
Advance from other funds 862,274 705,497 1,567,771
Deposits 164,333 - 164,333
Current portion of long-term debt 135,000 165,000 300,000 Total current liabilities 1,277,144 1,281,635 2,558,779 Noncurrent Liabilities
Long-term debt 4,463,026 5,454,809 9,917,835
Total liabilities 5,740,170 6,736,444 12,476,614
NET POSITION
Net investment in capital assets 1,292,682 1,658,590 2,951,272 Restricted for capital improvements 207,810 207,810 415,620 Unrestricted (135,493) 897,022 761,529
Total net position $ 1,730,907 2,397,514 $ 4,128,421 $
Business-Type Activities - Enterprise Funds
See accompanying notes. 11
CITY OF SAN JUAN BAUTISTA
STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION –
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Total
Proprietary
Water Sewer Funds
Operating Revenue
Charges for services $ 1,224,648 1,091,526 $ 2,316,174 $ Other fees 6,244 27,710 33,954
Total operating revenue 1,230,892 1,119,236 2,350,128
Operating Expense
Contractual services and utilities 230,938 380,491 611,429 Personnel 228,504 180,896 409,400
Supplies, materials and repairs 97,132 53,889 151,021
Depreciation expense 333,490 379,386 712,876
Total operating expense 948,766 935,960 1,884,726
Operating income/(loss) 282,126 183,276 465,402
Nonoperating Revenue/(Expense)
Interest income 4,305 4,305 8,610
Interest expense (241,448) (251,103) (492,551)
Total nonoperating revenue/(expense) (237,143) (246,798) (483,941) Net income/(loss) before transfers (63,522) 44,983 (18,539) Operating Transfers In/(Out) (25,532) (31,205) (56,737) Change in Net Position 19,451 (94,727) (75,276)
Net Position
Beginning of year 1,711,456 2,492,241 4,203,697
End of year $ 1,730,907 2,397,514 $ 4,128,421 $
Business-Type Activities - Enterprise Funds
See accompanying notes. 12
CITY OF SAN JUAN BAUTISTA
STATEMENT OF CASH FLOW – PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Total
Proprietary
Water Sewer Funds
Operating Activities
Receipts from customers and users $ 1,127,894 $ 1,215,420 $ 2,343,314 Payments for contractual services and utilities (226,138) (380,491) (606,629) Payments to employees (228,504) (180,896) (409,400)
Payments to suppliers (144,232) (97,132) (241,364)
Net cash provided by operating activities 509,801 576,120 1,085,921 Non-capital Financing Activities
Repayment of short-term note settlement (88,000) - (88,000) Payments and transfers (to)/from other funds (25,532) (31,205) (56,737) Net cash provided by (used in)
noncapital financing activities (25,532) (119,205) (144,737) Capital and Related Financing Activities
Purchase of property, plant and equipment (88,298) (794,243) (882,541) Payments received from other funds (31,203) (25,530) (56,733) Bond premium 35,733 29,236 64,969
Principal paid on long-term debt (160,804) (131,566) (292,370) Interest paid on long-term debt (242,729) (252,670) (495,399) Net cash provided by (used in) capital and
related financing activities (1,164,832) (497,242) (1,662,074) Investing Activities
Interest received 4,305 4,305 8,610
Net cash provided by investing activities 4,305 4,305 8,610 Net Decrease in Cash (676,258) (36,022) (712,280)
Cash
Beginning of year 1,125,266 1,366,900 2,492,166
End of year $ 449,008 1,330,878 $ 1,779,886 $
Cash Flows from Operating Activities
Operating income (loss) 183,276 $ 282,126 $ 465,402 $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation expense 379,386 333,490 712,876
(Increase) Decrease in Accounts Receivable, net 8,732 (15,472) (6,740) Increase (Decrease) in Accounts Payable,
Accrued Liabilities and Deposits (90,343) 4,726 (85,617) Net Cash Provided by Operating Activities $ 509,801 576,120 $ 1,085,921 $ Business-Type Activities - Enterprise Funds
13 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of San Juan Bautista (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.
Reporting Entity
The City of San Juan Bautista, State of California (the "City"), was incorporated in 1869. The City operates under a Council-Manager form of government. The City's major operations include public safety; highways and streets; sewer and water; parks and recreation; building inspection; public improvements; planning and zoning; and general administrative services.
Basis of Presentation – Fund Accounting
Government-Wide Financial Statements – The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities and Changes in Net Position) report information of all of the nonfiduciary activities of the primary government. For the most part, eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.
The Statement of Activities and Changes in Net Position presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Net Position is restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
Governmental Fund Financial Statements – The Governmental Fund Financial Statements provide information about the City’s funds. Separate statements for each fund category – governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major funds.
14 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.
The City reports the following major governmental fund:
General Fund – The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.
The City reports the following major enterprise funds:
Water Fund – The Water Fund accounts for the operation and maintenance of the City’s water treatment and water transmission and distribution systems.
Sewer Fund – The Sewer Fund accounts for the operation and maintenance of the City’s sewer system.
Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements are reported using the economic resources measurement focus and the 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.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.
Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.
15 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund’s principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.
Financial Statement Amounts
Cash and Investments – Cash and investments represent the City's cash bank accounts including but not limited to certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows.
The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.
Accounts Receivable – Billed but unpaid services provided to individuals or non-governmental entities are recorded as accounts receivable. An allowance for doubtful accounts is provided to account for potentially uncollectible amounts.
San Benito County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is March 1 of each year.
Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property taxes on the unsecured roll are due on the March 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual. The County adopted the alternative method of secured property tax apportionment available under the Revenue and Taxation Code of the State (also known as the “Teeter Plan”) whereby secured property taxes were distributed to participating taxing on the basis of the tax levy, including any uncollected amounts at fiscal year-end. The County, as administrator, benefits from future collections of penalties and interest on delinquent taxes. Taxes receivable are recorded as of the date levied. The County is still using the Teeter Plan as of June 30, 2022.
The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.
Interfund Receivables/Payables – Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.
Capital Assets – Capital outlays are recorded as expenditures of the General and Special Revenue Funds and as assets in the Government-Wide Financial Statements to the extent the City’s capitalization threshold is met. 16 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $1,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities are included as part of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
Years
Buildings, structures and improvements 40
Infrastructure 40
Equipment 5 - 10
Deferred Outflow/Inflows of Resources – In addition to assets, liabilities and net position, the statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources.
Deferred outflows of resources represent a consumption of resources that applies to a future period(s) and will not be recognized as an outflow of resources (expense) until then. Conversely, deferred inflows of resources represent an acquisition of resources that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time.
Compensated Absences – It is the City's policy to permit all employees to accumulate earned but unused vacation and compensatory time benefits. All vacation pay is accrued when earned in the government-wide and proprietary fund financial statements.
Sick leave can be accumulated, but vesting is limited and will not be paid upon termination. For this reason, the City does not accrue any costs relating to sick leave. 17 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Long-Term Obligations – In the Government-Wide Financial Statements, and Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. 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.
In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Non-Current Governmental Assets/Liabilities – GASB Statement No. 34 eliminates the presentation of account groups but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position.
Net Position – The government-wide and business-type activities fund financial statements utilize a net position presentation. Net position are categorized as invested capital assets (net of related debt), restricted and unrestricted.
Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted Net Position – This category presents external restrictions on net position imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose.
Fund Balance – In the fund financial statements, governmental fund balance is made up of the following components:
Nonspendable fund balance typically includes inventories, prepaid items, long-term portion of loans receivable, nonfinancial assets held for resale and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments. Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
18 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment. Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed. Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect 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 expenditures/expenses during the reporting period. Actual results could differ from those estimates.
Note 2 – Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.
In accordance with applicable sections of the California Government Code and the San Juan Bautista Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds. Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.
All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered. 19 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.
Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments 6,179,844 $
Restricted Cash and Investments 415,620
Total Cash and Investments $ 6,595,464
Cash and investments as of June 30, 2022, consist of the following:
Cash on hand $ 200
Deposits with Financial Institutions 2,591,577
Local Agency Investment Fund 3,588,068
Held by Fiscal Agent:
Money Market Mutual Funds 415,619
Total Cash and Investments $ 6,595,464
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:
Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.
Level 2: Inputs to valuation methodology include inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
20 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
Fair Value Measurements (continued)
The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value.
LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).
The City had the following recurring fair value measurements as of June 30, 2022:
Level 1 Level 2 Level 3
June 30,
2022
Investments by fair value level:
Equity Securities:
LAIF - $ 3,588,068 $ - $ 3,588,068 $
Total Equity Securities - 3,588,068 - 3,588,068
Investments carried at amortized cost:
Bank Deposits and Cash on Hand 2,591,777
Money Market Mutual Funds 415,619
Total Investments amortized at cost 3,007,396
Total Investments $ 6,595,464
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. 21 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Maturity Quality of Portfolio In One Issuer
U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None None None
Banker's Acceptances 180 days None 20% 10% or $5 million Commercial Paper 180 days A 15% 10%
Negotiable Certificates of Deposit 2 years None 30% None Medium-Term Notes 5 years AA 20% 10%
Money Market Mutual Funds N/A AAA 20% 10%
Repurchase Agreements 1 year None None None
Time Deposits 2 years None 10% None
County Pooled Investment Funds N/A N/A None None
Local Agency Investment Fund (LAIF) N/A None $40 million None Authorized Investment Type
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of June 30, 2022, the City had the following investments:
Amount Maturity Date
Local Agency Investment Fund $ 3,588,068 N/A
Held by Fiscal Agent:
Money Market Mutual Funds 415,619 N/A
Total $ 4,003,687
Investment Type
Disclosures Relating to Credit Risk
Generally, 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. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
22 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
Disclosures Relating to Credit Risk (continued)
Minimum Rating as of Year End
Legal Not
Amount Rating Rated
Local Agency Investment Fund $ 3,588,068 N/A $ 3,588,068 Held by Fiscal Agent:
Money Market Mutual Funds 415,619 N/A 415,619
Total $ 4,003,687 4,003,687 $
Investment Type
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. At times, the City's bank accounts may exceed federally insured limits. The City has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).
The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. As of June 30, 2022, the carrying amount of the City’s bank deposits was $2,591,577, and the respective bank balances totaled $2,682,752, of the total bank balance. Of the bank balances, only $250,000 is insured through the Federal Depository Insurance Company. The remaining balance is to be collateralized by the bank.
The custodial risk for investments is the risk that, in the event of the failure of the counterparty 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. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.
With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). 23 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Note 4 – Lease Receivable
American Cell Tower Lease – The City entered into an agreement to lease out a cell tower from February 26, 2002 through February 25, 2032, 2036 for a beginning monthly payment of $1,413.87 with a 3% increase annually. Payment is due montly at .9% interest. At June 30, 2022, the lease receivable balance was $182,167.
The annual payment receipt schedule for principal and interest on all lease receivable at June 30, 2022 were as follows:
Principal Interest Total
2023 $ 18,242 $ 1,427 $ 19,669
2024 18,269 1,400 19,669
2025 18,434 1,235 19,669
2026 18,600 1,068 19,668
2027 18,769 19,669 900
2028-2032 1,934 89,853 91,787
$ 7,964 182,167 $ 190,131 $
The related deferred inflows of resources on the right of use on lease revenue will be amortized on a straightline basis over the term of the agreement as follows:
2023 $ 18,845
2024 18,845
2025 18,845
2026 18,845
2027 18,845
2028-2032 87,942
$ 182,167
During the year ended June 30, 2022, the City recognized $25,591 in lease revenue and related interest income.
24 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 5 – Capital Assets
Capital asset activity for the year ended June 30, 2022, was as follows:
Balance Balance
July 1, 2021 Additions Retirements June 30, 2022
Governmental Activities
Capital assets, not being depreciated
Land 22,610 $ - $ - $ 22,610 $
Construction in progress 157,560 3,394 - 160,954
Total capital assets, not being depreciated 180,170 3,394 - 183,564 Capital assets, being depreciated
Buildings and improvements 1,373,234 88,804 (17,596) 1,444,442 Infrastructure 3,567,242 263,472 3,830,714 -
Machinery and equipment 1,056,552 - (224,560) 831,992
Total capital assets, being depreciated 5,997,028 352,276 (242,156) 6,107,148 Less accumulated depreciation for:
Buildings and improvements (848,017) (45,428) 17,596 (875,849) Infrastructure (423,733) (76,721) (500,454) -
Machinery and equipment (33,060) (940,164) 224,560 (748,664) Total accumulated depreciation (155,209) (2,211,914) 242,156 (2,124,967) Total capital assets, being depreciated, net 3,785,114 197,067 - 3,982,181 Governmental activities capital assets, net $ 3,965,284 200,461 $ - $ 4,165,745 $ Business-Type Activities
Capital assets, not being depreciated
Land 487,275 $ - $ - $ 487,275 $
Construction in progress 339,707 711,058 - 1,050,765
Total capital assets, not being depreciated 826,982 711,058 - 1,538,040 Capital assets, being depreciated
Building 323,861 - - 323,861
Improvements other than buildings 19,659,871 82,209 (6,363) 19,735,717 Machinery and equipment 1,102,374 89,274 (33,727) 1,157,921 Total capital assets, being depreciated 21,086,106 171,483 (40,090) 21,217,499 Less: accumulated depreciation (712,876) (8,913,646) 40,090 (9,586,432) Total capital assets, being depreciated, net 12,172,460 (541,393) - 11,631,067 Business-type activities capital assets, net $ 12,999,442 169,665 $ - $ 13,169,107 $ 25 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 5 – Capital Assets (Continued)
Depreciation expense was charged to the following functions in the Statement of Activities:
Governmental Functions:
General Government 10,417 $
Public Works 94,886
Parks and Recreation 22,044
Public Safety 27,862
$ 155,209
Business-Type Functions:
Water $ 379,386
Sewer 333,490
$ 712,876
Note 6 – Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.
In governmental fund types, debt discounts and issuance costs are recognized in the current period. Debt discounts and issuance costs incurred in proprietary funds are deferred and amortized over the term of the debt using the bonds-outstanding method, which approximates the effective interest method. The City’s debt transactions are summarized below and discussed in detail thereafter:
Balance Balance Current
July 1, 2021 Additions Retirements June 30, 2022 Portion Business-Type Activities Long Term Debt
Direct Placement:
2015 Enterprise Revenue Bonds 10,345,000 $ $ 285,000 - $ $ 10,060,000 $ 300,000 Plus Unamortized Premium on Bond - 165,205 7,370 157,835 7,370 Total Business-Type Activities Debt $ - 10,510,205 $ 292,370 $ 10,217,835 $ 307,370 $ Compensated Absences
Government Activities $ - 39,167 $ (4,714) $ 34,453 $
26 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 6 – Long-Term Debt (Continued)
Long-term debt payable at June 30, 2022 was comprised of the following individual issues:
2015 Enterprise Revenue Bonds – In January 1715, the City issued Series 2015 Enterprise Revenue Bonds for the principal amount of $11,640,000. The issuance was to refund the outstanding principal balance of the 2008 Water and Sewer COP and the Pavex Note payable described above. In addition, the proceeds of the sale of the bond were used to provide funding to improve the City’s water system as well as paying the costs of issuance. The reacquistion price exceeded the net carrying amount of the old debt by $1,819,135. The City refunded the above debts to reduce its total debt service over 28 years by $4,125,856 and to obtain an economic gain (difference between the present values of debt service payments on the old and new debt) of $1,947,479. The bonds bear interest ranging from 3.0% to 5.0% and are payable semi-annually commencing April 2016 through October 2043. Debt service is secured by a pledge of net revenues of the City’s Water and Sewer Systems. The City covenants that it shall prescribe, revise and collect such charges for the services and facilites of the water and sewer systems which shall produce revenues sufficient in each fiscal year to provide gross revenues which are sufficient to pay all water and sewer operation and maintenance costs and all bond installment payments and produce net water and sewer revenues equal to at least 1.25 times debt service coming due and payable during such fiscal year. The City is in compliance with those covenants as of June 30, 2022. Cash basis debt service paid during the fiscal year ended June 30, 2022 totaled $662,438.
Total water and sewer system net revenues calculated in accordance with the covenants were $515,840 and net revenue available for debt service was 1.78 times debt service at June 30, 2022.
The annual requirement to amortize the principal and interest on long-term debt at June 30, 2022, were as follows:
Years ending June 30, Principal Interest
2023 $ 300,000 $ 365,738
2024 310,000 351,988
2025 325,000 336,113
2026 345,000 319,363
2027 365,000 301,613
2028-2032 2,005,000 1,314,770
2033-2037 2,330,000 972,774
2038-2042 2,815,000 508,031
2043-2044 47,719 1,265,000
$ 4,518,109 10,060,000 $
Unamortized premiums 157,835
Net long-term debt $ 10,217,835
27 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 7 – Deferred Compensation Plan
On October 1, 1999, the City established a deferred compensation plan for its employees which provides them an opportunity to save for retirement. The plan meets the requirements of Internal Revenue Code Section 457. Under the plan, employees make tax deferred contributions up to the limits established by the Internal Revenue Service. The contributions made to the plan may be withdrawn only upon retirement seperation from service, death or unforseeable emergency. Employees are 100% vested in their contributions from the first date of participation. The plan provides for varying matching contributions.
The plan is administered by the City. The participants are offered a choice of investment options and make their own investment decisions. The City has fiduciary obligation for due care in the administration of the plan, but is not responsible for the investments or performance results of the investment products offered under the plan, therefore, the City is not required to report these funds on the City’s financial statements.
Note 8 – Risk Management
The City of San Juan Bautista is insured under the Public Agency Risk Sharing Authority of California (PARSAC) liability program. Protection is afforded for “bodily injury, property damage, personal injury and public officials’ errors and omissions, subject to certain limitations”.
Limit of protection – $995,000 ultimate net loss as the result of any occurrence because of bodily injury, property damage, personal injury or public officials’ errors and omissions or any combination therof in excess of the retained limit.
Retained limit – $5,000 ultimate net loss as the result of any occurrence because of bodily injury, property damage, personal injury or public officials’ errors and omissions or any combination thereof.
Complete audited financial statements for PARSAC can be obtained from PARSAC’s office at 1525 Response Road, Suite One, Sacramento, CA 95815.
Note 9 – Due From/Due to Other Funds and Advance To/Advance From Other Funds Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash, and carry an interest rate equal to the rate earned on pooled cash. Individual fund interfund receivables and payables balances as of June 30, 2022 are as follows:
Due From Due To
Major Governmental Funds:
General Fund $ - 6,370 $
Nonmajor Governmental Funds:
Cops Grant Fund 6,370 -
$ 6,370 6,370 $
28 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 9 – Due From/Due to Other Funds and Advance To/Advance From Other Funds (continued) In August 2016 the City formalized an advance agreement between the City’s General Fund and the Water and Sewer Funds for the amount of $1,895,844. The amount is payable by the Water and Sewer Funds to the General Fund over a period of 29 years at an interest rate of 1.5 percent payable in annual payments of $81,102.
Advances from and to balances as of June 30, 2022, are as follows:
Advance To Advance From
Major Governmental Funds:
General Fund $ - 1,567,771 $
Proprietary Funds:
Water Fund - 862,274
Sewer Fund - 705,497
$ 1,567,771 1,567,771 $
Note 10 – Interfund Transfers
With the City Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to reimburse a fund that has made expenditures on behalf of another fund.
Transfers within fund types have been eliminated with the government-wide financial statements. Transfers in and out for the year ended June 30, 2022 consisted of the following:
Transfers In Transfers Out
Major Governmental Funds:
General Fund 475,492 $ - $
Nonmajor Governmental Funds:
COPS Grant - 163,932
Roads & Restrooms Fund - 111,699
Maintenance Districts Fund - 15,440
Impact Fees Fund 127,684 -
Proprietary Funds:
Water Fund - 31,205
Sewer Fund - 25,532
$ 475,492 475,492 $
29 CITY OF SAN JUAN BAUTISTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 11 – Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows or resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows of $764,995 in the Water Fund and $625,905 in the Sewer Fund for deferred charges from debt retirement relate to the defeasance costs of the City’s 2008 Water and Sewer Certificates of Participation. The balance is being amortized over a twenty-eight-year period.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports $182,167 in deferred inflows related to lease receivable in the General Fund, see Note 4 for more information.
Note 12 – Stewardship, Compliance and Accountability
Excess of expenditures over appropriations – The following funds incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2022:
General Fund:
Current
General government $ (139,626)
Public safety $ ( 23,861)
Community development $ (190,465)
Capital outlay $ ( 52,051)
The excess expenditures were covered by excess revenues during the fiscal year.
Note 13 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through January 17, 2023, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2022, that required recognition or disclosure in such financial statements.
Note 14 – New Accounting Pronouncement
For the year ended June 30, 2022, the District implemented GASB issued Statement No. 87, Leases (GASB 87).
The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible rightto-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. There was no net effect to fund balance/net position due to the implementing GASB 87 as of June 30, 2022.
REQUIRED SUPPLEMENTARY INFORMATION
30 CITY OF SAN JUAN BAUTISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 1,502,448 $ 1,502,448 $ 2,199,604 $ 697,156 $
Intergovernmental 165,000 165,000 389,713 224,713
Charges for services 338,711 338,711 22,431 (316,280)
Licenses, permits and impact fees 217,803 217,803 203,078 (14,725) Fines and forfeitures 750 750 3,305 2,555
Interest and rent 89,173 89,173 145,642 56,469
Total revenue 2,313,885 2,313,885 2,963,773 649,888
Expenditures
Current
General government 518,032 518,032 657,658 (139,626)
Public works 352,232 352,232 330,012 22,220
Parks and recreation 102,073 102,073 78,656 23,417
Public safety 676,920 676,920 700,781 (23,861)
Community development 650,768 650,768 841,233 (190,465) Capital outlay 303,619 303,619 355,670 (52,051)
Total expenditures 2,603,644 2,603,644 2,964,010 (360,366) Revenue over (under) expenditures (289,759) (289,759) (237) 289,522 Other Financing Sources
Leaser revenue 26,601 26,601 25,591 (1,010)
Transfers in (out) - net 103,104 103,104 475,492 372,388 Net Change in Fund Balance $ (160,054) (160,054) $ 500,846 $ 661,910 Fund Balance
Beginning of year 4,613,486
End of year $ 5,114,332
SUPPLEMENTAL ONLY INFORMATION
31 CITY OF SAN JUAN BAUTISTACOMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Public Roads &
COPS Parking Gas Tax Restrooms
Grant Fund Fund Fund
ASSETS
Cash and investments $ - $ 17,447 $ 80,257 $ 118,578
Due from other governmental agencies 45,063 - 8,163 -
Total assets $ 45,063 17,447 $ 88,420 $ 118,578 $
LIABILITIES AND FUND BALANCELiabilities
Accounts payable and accrued expense - $ - $ 1,779 $ - $ Due to other funds - 6,370 - -
Total liabilities - 6,370 1,779 -
Fund Balance
Restricted
Public safety 38,693 - - -
Capital improvement projects - 17,447 - 118,578
Circulation improvements - - 86,641 -
Lighting and landscape maintenance - - - -
Total fund balance 38,693 17,447 86,641 118,578
Total liabilities and fund balance $ 45,063 17,447 $ 88,420 $ 118,578 $ Special Revenue Funds
32 CITY OF SAN JUAN BAUTISTACOMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Non-major
Maintenance Impact Governmental
Districts Fees Funds
ASSETS
Cash and investments $ 90,789 $ 967,179 $ 1,274,250
Due from other governmental agencies - - 53,226
Total assets $ 967,179 90,789 $ 1,327,476 $
LIABILITIES AND FUND BALANCELiabilities
Accounts payable and accrued expense 259 $ - $ 2,038 $
Due to other funds - - 6,370
Total liabilities - 259 8,408
Fund Balance
Restricted
Public safety - 207,453 246,146
Capital improvement projects - 659,147 795,172
Circulation improvements - 100,579 187,220
Lighting and landscape maintenance - 90,530 90,530
Total fund balance 90,530 967,179 1,319,068
Total liabilities and fund balance $ 967,179 90,789 $ 1,327,476 $ Special Revenue Funds
33 CITY OF SAN JUAN BAUTISTA COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Public Roads &
Parking Gas Tax Restrooms
COPS Grant Fund Fund Fund
Revenue
Taxes $ - $ - $ - $ 46,502
Intergovernmental 163,932 - 105,413 -
Licenses, permits and impact fees - - - -
Total revenue - 163,932 105,413 46,502
Expenditures
Current
Public works - - 17,098 -
Total expenditures - - 17,098 -
Revenue over (under) expenditures 163,932 - 88,315 46,502 Other financing sources/(uses)
Operating transfers in/(out) - (163,932) - (111,699)
(163,932) - - (111,699)
Change in Fund Balance - - 88,315 (65,197)
Fund Balance
Beginning of year 17,447 38,693 (1,674) 183,775
End of year $ 17,447 38,693 $ 86,641 $ 118,578 $
Special Revenue Funds
34 CITY OF SAN JUAN BAUTISTA COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Non-major
Maintenance Impact Governmental
Districts Fees Funds
Revenue
Taxes $ 108,936 $ - $ 155,438Intergovernmental - - 269,345Licenses, permits and impact fees - 10,621 10,621 Total revenue 10,621 108,936 435,404
Expenditures
Current
Public works - 122,882 139,980
Total expenditures - 122,882 139,980
Revenue over (under) expenditures (13,946) 10,621 295,424 Other financing sources/(uses)
Operating transfers in/(out) (15,440) (127,684) (418,755) (15,440) (127,684) (418,755)
Change in Fund Balance (117,063) (29,386) (123,331)Fund Balance Beginning of year 1,084,242 119,916 1,442,399
End of year $ 967,179 90,530 $ 1,319,068 $
Special Revenue Funds
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
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 GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of San Juan Bautista, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City of San Juan Bautista (the “City”), California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated January 17, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. 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.
36 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
January 17, 2023
CITY OF SAN JUAN BAUTISTA
MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2022
2 TABLE OF
CONTENTS
Page
Required Communications 1 - 3
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 To the Honorable Mayor and City Council
City of San Juan Bautista, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Juan Bautista for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 20, 2022. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements.
The City adopted a new accounting policy to comply with the effects of GASB Statement No. 87, Leases and the application of existing policies was not changed during 2022. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the allowance for doubtful accounts is based on an evaluation of collectability primarily focused on past due accounts. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements as a whole. 2 The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of the audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 17, 2023.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City of San Juan Bautista’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of San Juan Bautista’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 3 Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of City of San Juan Bautista and is not intended to be, and should not be, used by anyone other than these specified parties.
January 17, 2023
Item #7B
City Council Meeting
January 24, 2023
1 CITY OF SAN JUAN BAUTISTA
CITY COUNCIL REPORT
AGENDA TITLE: FACILITATE A CITYWIDE STRATEGIC PLANNING
SESSION, ORGANIZATIONAL REVIEW, FINANCE AND
LAW ENFORCEMENT SERVICES REVIEW
MEETING DATE: January 24, 2023
DEPARTMENT HEAD: Don Reynolds, City Manager
RECOMMENDED ACTION(S):
It is recommended that the City Council adopt the attached Resolution authorizing the City Manager to execute a professional services agreement with Citygate Associates LLC, to facilitate a City strategic planning exercise, provide a high-level organizational review, update their fiscal projections, and assess the best practices for City law enforcement services.
BACKGROUND INFORMATION:
In January 2020, the City retained the services of Citygate, a public executive consulting firm established in 1990, to work specifically with public sector entities to assess and plan for their organizational development. The Citygate project teams consist of well respected seasoned public sector veterans, reflecting what would be department heads and City Managers in other cities.
These services are valuable to San Juan Bautista, as the organization lacks many “Directors” including Police Chief, Finance Director, Community Service Director capabilities.
A retired Public Works Director and City Manager facilitated a strategic planning session for the City in February 2020. The objective was to survey the community, interview stakeholders and the City Council, and convene a community meeting to discuss the outcomes. This was the first time this had been done in San Juan Bautista for many years. This strategic plan has been revisited every spring before the budget process formally begins.
In addition to strategic planning, the City’s financial position and policies were analyzed. The study confirmed the General Fund to be whole and healthy. It confirmed that the Water Enterprise fund was healthy, but that the sewer fund was running a small deficit. Citygate was retained just as the pandemic broke out. A retired Finance Director helped the City navigate these very uncertain times, resulting in a vigorous business retention program that helped some of the City’s businesses apply for grants and loans to keep their operations open.
Item #7B
City Council Meeting
January 24, 2023
2 Citygate provided the attached May 15, 2020 “Observational and Financial Review for the City of San Juan Bautista,” with two sections: financial analysis, and organizational assessment.
The Financial Analysis concluded the City’s financial position to be healthy, (Appendices 1 and 2 of the report). The table below compares the years 2017-2020 of the General Fund.
Having reviewed the 2021/22 Fiscal Year Audit, it looks like the General Fund balance increased another $500,000, which is stronger than it has been since 2018. Appendices 12-15 are spread sheets to be used for projecting fund balances out five years, and for the establishment of a 5-Year Capital Improvement Program. The assumptions in these tools have changed, not so much for the General Fund, but certainly for the Water and Sewer Enterprise funds.
The City is slowly but certainly coming into compliance with the EPA’s requirements and transforming both utility systems. In February 2021, the Sewer fund has paid for the design of the EPA “compliance project” at a cost of $1 million which is completed now. New sewer rates were approved in December 2021. The City settled the sewer fines with the State in the summer of 2022. The water fund also took on a rate increase effective November 1, 2022. Below are the 2020 Citygate assessments of both water and sewer enterprise funds.
Item #7B
City Council Meeting
January 24, 2023
3 Note the Net Position was as low as $424,629 in 2017, and rose as high as $687,000. As of June 30, 2022, the Unrestricted Position had increased to $897,000 (page 10 of the Audit).
The Fund Balance for Sewer has steadily declined from $1.31 million to a projected deficit in 2020 of $71,179. The 2021/22 Audit (Page 10 of the Audit) it has been further reduced to a deficit of $135,493. This is because this fund is being used to design the new sewer force-main to Hollister ($1 million) before fee increases were approved, and paying down older debt.
Item #7B
City Council Meeting
January 24, 2023
4 The fiscal analysis does recommend several improvements to the financial systems. This includes cross training of the limited staff to assure adequate coverage of accounts payable and accounts receivable, and acquiring an integrated municipal financial software system. With the hiring of the Office Assistant, cross training is and does occur. Last fall the finance team created a new chart of accounts, and signed on to a public sector finance software being implemented now, to accompany “Cleargov” that helps to make the City’s finances transparent to the public. Overall, there are 13 fiscal recommendations in this 2020 report, as provided on pages 20-23 of the attached study.
The Organizational Study resulted in 6 additional recommendations. Simply stated, due to small staff, resources need to be guided by a strategic plan, as there are insufficient human resources to address every need. The last two findings and recommendations speak on the need for rebuilding Community Development and the need for solid long-term City planning efforts. This has been done.
The City Manager’s evaluation was completed November 15, 2022. It requests strategic planning direction from the City Manager, and from the community. The Public Safety Committee has been reviewing contracts and the Sheriff has requested a new contract. It is time for a new look at public safety. With two new Councilmembers and four new Commissioners coming on-board, it is also time to revisit this analysis and organizational efforts.
DISCUSSION:
In a typical year, the City would receive its audit in December, and consider mid-year adjustments at its January meeting. This year, for various reasons the process is a month behind, which is good because it allows the new Councilmembers time to catchup. The attached Resolution includes a January 13, 2023, proposal from Citygate. It includes at its core the strategic planning effort that is critical right now. The 25-year veteran worked in Hayward serving as chair of their “Citywide Complete Communities Strategic Initiative.”
There are four “optional” modules including an Implementation Plan workshop to assure that the organizational recommendations are resourced to meet the objectives. Fiscal review update is proposed to be done by the same retired Finance Director that led the 2020 study. Also proposed is a deliverable referred to as an “Audio Module.” This is a “podcast style” component to be included on the City website that is specifically tailored to the City engagement effort, communicating in video format the key components of the Strategic Plan. This tool helps both internal external stakeholders understand and support the City’s strategies moving forward.
The fourth element is the Law Enforcement Element. This work if approved would be led by a retired Undersheriff. The objective is to smooth out any conflicts between the City and law enforcement and work towards a new contract with a detailed scope of work. The retired undersheriff will assist the City to negotiate a new contract with Sheriff, and determine the role of each. Citygate’s public safety team is also has experienced in establishing fire districts.
Item #7B
City Council Meeting
January 24, 2023
5 FISCAL IMPACT:
The cost for the three studies, the podcast deliverable and implementation strategy are not to exceed $58,293.
These costs can be paid from cost savings experienced this fiscal year in the General Fund, and shared by savings in the two Enterprise funds.
ATTACHMENTS:
Proposed Resolution with the January 13, 2023 Citygate Proposal May 15, 2020 “Observational and Financial Review for the City of San Juan Bautista,” May 15, 2020
Don Reynolds
City Manager
City of San Juan Bautista
311 Second Street / PO Box 1420
San Juan Bautista, CA 95045
[email protected]
RE: OBSERVATIONAL ORGANIZATION AND FINANCIAL REVIEW FOR THE CITY OF SAN JUAN
BAUTISTA
Dear Mr. Reynolds:
Thank you for the opportunity to be of service to the City of San Juan Bautista (City). Based on interviews with staff and elected official, as well as study of City data and materials, our Project Team members have developed a management letter for you in keeping with the project proposal.
Citygate recognizes this management letter comes to you at a time of significant upheaval due to the impacts of the COVID-19 pandemic. Although the financial and organizational analysis work for this study was completed prior to the onslaught of the pandemic and its impacts on local government revenues and workload, Citygate Associates, LLC (Citygate) can attest to the timeliness of this body of work for your community. The business principles and practices referred to in this letter can be of great assistance to the City. The basic financial planning principles and practices outlined and integrated into the financial planning models are foremost in guiding the community through the impacts of the pandemic.
This management letter is organized as follows:
Section 1: Financial Analysis
Section 2: Organizational Assessment
Together, these two sections contain 19 findings and 17 recommendations for your consideration and action.
In addition, Citygate has produced financial models for the City’s use and has included several other appendices. These are:
Mr. Reynolds
May 15, 2020
◆ Various Financial Tables and Appendices 1–11
◆ Appendix 12 – A five-year financial forecast instrument for the General Fund ◆ Appendix 13 – A five-year financial forecast instrument for the Water Fund ◆ Appendix 14 – A five-year financial forecast instrument for the Sewer Fund ◆ Appendix 15 – A sample Capital Improvement Plan document These models, financial tables, and other appendices have been provided with this report for use by City staff.
Section 1 of the management letter includes:
◆ Analysis of the revenues and expenditures, focusing on the General Fund and the Water and Sewer Funds.
◆ Review of the City’s Annual Audit.
◆ Budget sustainability recommendations.
◆ Guidance to establishing financial and budgetary policies and procedures. ◆ In-depth review of the current issue before the City to strengthen its overall financial performance, including all funds. Together, with the four current issues in Section 2, five current issues were examined.
Section 2 of the management letter includes:
◆ Assessment of four current issues before the City and suggested priorities through a series of findings and recommendations. These four current issues are:
➢ Building on Strategic Planning Priorities
➢ Building on Staffing Expertise and Skills
➢ Designing a Path for Infrastructure Renewal and Upkeep ➢ Developing an Enhanced Role for Community Planning and Development Recommendations for workload management are included throughout both sections of the management letter narrative, as are suggested topics for further in-depth study.
The discussion, findings, and recommendations of this report are based on Citygate’s review of conditions as of early March when on-site interviews were conducted per the project scope.
Changes in conditions that have occurred since then should be noted in the City staff report that prefaces this report.
Mr. Reynolds
May 15, 2020
SECTION 1—FINANCIAL ANALYSIS
The City has approximately 10 full-time equivalent staff. As a result of this small operational staff level, employees are required to share responsibilities to conduct City operations. As Citygate determined through interviews, finance-related staff consists of the City Accountant (contractor), the Administrative Services Manager, and the Finance Administrative Services Clerk. Citygate found the staff associated with finance-related functions to be very knowledgeable regarding the financial operations of the City. Some areas of improvement identified by Citygate include the following:
◆ Additional formalized operational documentation should be developed to help ensure procedural application consistency to reduce any confusion on the part of departmental staff.
◆ Increased formal cross-training in all finance-related areas should be explored to ensure continuity of operations. For example, the City Accountant seems to be the only personnel with total familiarity regarding the QuickBooks system, which handles all the City’s financial information for reporting and monitoring. The City Accountant is very competent and does a good job for the City; however, a backup should be efficiently trained as a continuity measure.
◆ Although not an immediate issue, the City should explore acquiring an integrated financial system to reduce manual processes and reduce the potential for input errors regrading financial information. The system should be cloud-based to allow staff from other departments inquiry access to financial information to aid decision making regarding their respective operations.
1.1 FINANCIAL SYSTEM
Citygate reviewed financial activity for the City using the City’s published budget and audit documents. The City uses QuickBooks as its financial system. Although QuickBooks has served the City’s needs to date, based on interviews with staff, it is the desire of the City to transition to a new budgeting system that is oriented more toward governmental entities. The City is betatesting the ClearGov software for this purpose.
Payroll is handled through ADP, a payroll services system. Staff responsible for inputting into the ADP system to produce checks are separate from staff responsible for inputting payroll information into the financial system. The payroll process consists of entirely manual timesheet preparation through input into the financial system.
The current method used by the City for financial transaction processing relies heavily on manual processes. Even though the City is small, manual processes tend to result in increased errors (input Mr. Reynolds
May 15, 2020
errors, lost paperwork issues, internal control issues, etc.), which decrease overall staff productivity.
1.2 FINANCIAL OPERATIONS
For all funds, the City’s total revised budgeted revenues for fiscal year (FY) 2020 totaled approximately $7.6 million compared to FY 2020 budgeted expenditures of approximately $8.5 million, resulting in an anticipated deficit of approximately $900,000. This deficit results from the recognition timing of revenues and expenditures in some of the funds. Timing recognition means that collection of revenues and the expenditure of those revenues are reflected in different fiscal years. This is not uncommon in municipal government finance, especially regarding grant and capital funds.
For its analysis, Citygate categorized total Citywide financial operations into the following four categories:
1. General Fund
2. Water Operations and Capital Funds
3. Sewer Operations and Capital Funds
4. All Other Funds (Combined)
Citygate’s focus for the purposes of this project were the General Fund, Water Operations and Capital Funds, and the Sewer Operations and Capital Funds. In previous years, the City’s financial audit included community development activities in the General Fund. Consequently, to provide accurate comparisons to prior years, Citygate included community development activities within the General Fund for this analysis.
1.2.1 General Fund
The City has a very healthy General Fund. FY 2020 General Fund revised revenues and expenditures are budgeted at approximately $2.4 million and $2.4 million, respectively, resulting, for all intents and purposes, in a balanced budget. In FY 2017 and FY 2018, the City’s General Fund experienced significant surpluses primarily related to the permits and charges for services associated with the construction of the Rancho Vista (85 lots) and Copperleaf (45 lots) housing projects. Combining these two fiscal years, the City experienced an approximately $1.1 million operating surplus. This was partially offset by an approximately $167,000 operating deficit in FY 2019 due mainly to increased expenditures for capital outlay. Revenues increased approximately 25 percent between FY 2017 and FY 2019, due primarily to the completion of the two previously mentioned major housing development projects.
Mr. Reynolds
May 15, 2020
Tax-related revenue constitutes approximately 56 percent of FY 2020 budgeted revenues. The major tax revenue sources, which make up 99 percent of tax-related revenues, are property tax, (34 percent); sales tax (41 percent); transient lodging tax (11 percent); and vehicle license fee swap tax (13 percent). Over the past three fiscal years, tax-related revenues have grown by an average of approximately seven percent. However, FY 2020 budgeted tax-related revenues are relatively flat when compared to FY 2019 actual collections, due primarily to an anticipated decrease in sales tax revenue of approximately 14 percent based on sales tax revenue trends at the time the budget was adopted.
Although it is difficult to estimate the City’s economic impact from COVID-19 at this point, it is certain that it will adversely impact revenue sources such as sales tax and transient lodging tax.
Fortunately, as discussed previously, the City has strong General Fund reserves that can be utilized to address short-term adverse economic impacts and provide the City with time to develop a comprehensive plan to quantify and address COVID-19 economic impacts. However, the situation must be carefully monitored and analyzed over the coming months to determine any potential longterm economic effects. Absent a well-developed plan regarding how, when, and where to use reserves, and how and when the used reserves will be replenished, the City could find itself with reserve depletion levels that could negatively impact the City’s ability to address other economic downturns or needs. Utilization of the financial forecast model provided with this report will help in this regard.
Personnel-related (26 percent) and contractual service-related (52 percent) expenditures constitute approximately 78 percent of FY 2020 revised budgeted expenditures. Personnel costs spiked by approximately $279,000, or 68 percent, between FY 2018 and FY 2019. This spike was caused by the turnover relating to the City Manager position. Contractual service-related expenditures had a spike of approximately $592,000 between FY 2017 and FY 2018 due to the need to increase services related to two major housing projects, Rancho Vista and Copperleaf. An additional spike of approximately $199,000 is anticipated between FY 2019 and FY 2020 due to additional expertise needed for various projects.
Detailed information regarding General Fund revenues and expenditures are reflected in Appendices 1 and 2 of this report.
Citygate found the current budget estimates reasonable given the City’s experience over the past three fiscal years and the items discussed in the FY 2020 budget document. However, as the impacts of COVID-19 are determined, budget estimates should be revised.
The following table summarizes the General Fund financial activity for FY 2017 through FY 2020.
Mr. Reynolds
May 15, 2020