REGULAR MEETING
JOINT SAND CITY COUNCIL AND
SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY
TUESDAY, FEBRUARY 7, 2023
5:30 PM
1 1. ROLL CALL
AGENDA
JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, February 7, 2023
5:30 PM
THIS MEETING WILL BE HELD VIRTUALLY AND IN PERSON, IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 2449, SIGNED INTO LAW ON SEPTEMBER 13, 2022, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC
AGENCIES TO CONTINUE TO HOLD VIRTUAL MEETINGS AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.).
TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE:
https://us02web.zoom.us/j/4614728829
Meeting ID: 461 472 8829
To participate telephonically by calling the number below:
(669) 900-6833
Meeting ID: 461 472 8829#
If prompted to enter a participant ID, press #
TO PARTICIPATE IN PERSON:
City Hall Council Chambers
1 Pendergrass Way
Sand City, CA
How to submit written Public Comments:
If any member of the public would like to provide written comments at the meeting, please do as set forth below.
Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to: [email protected].
Read Aloud During the Meeting: Email your comments to [email protected]. When the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence).
DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. Please use the "raise your hand" option on Zoom, and the City Clerk will call on your name.
2 2. PLEDGE OF ALLEGIANCE
3. INVOCATION
4. ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER 4A. Update by Interim City Attorney Adam Lindgren on New Laws for 2023 Memorandum.2022 California Legislative Update.pdf
5. COMMUNICATIONS
Members of the public may address the City Council/Successor Agency on matters not appearing on the City Council/Successor Agency Agenda at this time for up to three minutes. In order that the City Clerk may later identify the speaker in the minutes of the meeting, it is helpful if speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the item is being considered by the City Council/Successor Agency.
The City Council Chambers podium is equipped with a portable microphone for anyone unable to come to the podium. If you need assistance, please advise the City Clerk as to which item you would like to comment on and the microphone will be brought to you.
6. CONSENT CALENDAR
The Consent Agenda consists of routine items for which City Council approval can be taken with a single motion and vote. A Council member may request that any item be placed on the Regular Agenda for separate consideration.
6A. Approval of the January 17, 2023 Minutes
01.17.23 Regular Meeting Minutes.pdf
6B. Acceptance of the City/Successor Agency Monthly Financial Statements, December 2022
December 2022 City.Successor Agency Financial Report.pdf 6C. Approval of City RESOLUTION Authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period of February 8, 2023 through February 28, 2023 pursuant to AB 361 and Ralph M. Brown Act Provisions
Resolution. Authorizing the Extension of Remote Teleconference Meetings of the City Council, and Boards.pdf
7. CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR
8. PRESENTATIONS
8A. Presentation by the Monterey County Convention and Visitors Bureau regarding the Monterey County Tourism Improvement District {5 minutes} 1) Discussion by Council and Direction to Staff regarding renewal of the Monterey County Tourism Improvement District
8B. Presentation and Consideration of the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditors Report by Maira Reid and Mike Nolan
3 1) Approval of City RESOLUTION Accepting the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditor's Report Staff Report. Review of FY 2021.2022 Final Audit.pdf
Resolution.Accepting the Audited Financial Statements for the Year Ended June 30, 2022 and Independent Auditors Report.pdf
Financial Statement for the Year Ended June 30, 2022.pdf
9. PUBLIC HEARING
9A. Consideration of City RESOLUTION to Amend Conditional Use Permit 630 Authorizing Design Change of Exterior Wall and Removal of Upper-Level Deck at 1880 Park Avenue {this application has been withdrawn; no action required by the City Council}
Staff Report.Amendment of Conditional Use Permit 630.pdf
10. NEW BUSINESS
10A. Consideration and Approval of City RESOLUTION Authorizing Amendment #1 to the Professional Service Agreement with Harris & Associates in the amount of $360,000 and Extending the Contract Term for One Year to end June 30, 2024 Staff Report. Amendment #1 to the Professional Service Agreement with Harris and Associates for City Engineering Services.pdf
Resolution. Authorizing Amendment #1 to Professional Service Agreement with Harris and Associates.pdf
10B. Consideration and Approval of City RESOLUTION Approving a First Amendment to the Building Services Agreement with 4Leaf, Inc. and Authorizing the City Manager to Execute the Amendment
Staff Report.Amendment to 4Leaf, Inc Building Serices Contract.pdf Exhibit A. Resolution SC 20-76, 2020.pdf
Resolution.Approving a First Amendment to the Building Services Agreement with 4Leaf, Inc..pdf
4LEAF Inc. - Professional Services - City of Sand City - 2.1.23.pdf 10C. Approval of City RESOLUTION Approving a Service Agreement Amendment with EMC Planning Group, Inc. for Professional Services for the Remainder of Fiscal Year 2022-2023 at a cost not to exceed $55,000
Staff Report. Approval of Amendment to Standard Service Agreement with EMC Planning Group for remaining Fiscal Year 2022-2023.pdf
Resolution. Approving a Service Agreement Amendment with EMC Planning Group.pdf
10D. Comments by Council Members on Items of Interest to Sand City 10E. Upcoming Events/Meetings
11. CLOSED SESSION
4 11A. City Council/Successor Agency Board to adjourn to Closed Session regarding Conference with labor negotiator pursuant to California Government Code Section 54957.6
1) Agency designated representative: Vibeke Norgaard, City Manager; Adam Lindgren, Interim City Attorney
Employee Organization: Sand City Police Officers Association (POA) 11B. Re-adjourn to Open Session to report any action taken at the conclusion of Closed Session in accordance with California Government Code Section 54957.1
12. ADJOURNMENT
The current agenda is available in PDF format on our website at:
www.sandcity.org
If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation.
5 AGENDA ITEM
4A.
Update by Interim City Attorney Adam
Lindgren on New Laws for 2023
6 City Council Staff Report Legislative Update
February 7, 2023
AGENDA ITEM #_____
MEMORANDUM
DATE: February 7, 2023
TO: Honorable Mayor and Council Members
FROM: Adam U. Lindgren, Interim City Attorney
SUBJECT: 2022 California Legislative Update
This Agenda Item and report briefly summarize new California laws adopted in 2022 that are of interest to the City. Unless otherwise stated, these laws went into effect January 1, 2023. We will work closely with Council and staff in coming months to ensure compliance with these new obligations.
RECOMMENDATIONS
Receive update.
RESULT OF RECOMMENDED ACTION
This item will assist the Council and staff to comply with newly enacted state laws on a range of topics critical to the City.
DISCUSSION
Housing, Community and Economic Development
AB 2011: Affordable Housing and High Road Jobs Act of 2022.
This bill requires cities to ministerially (without exercising judgement or discretion) approve affordable housing units and mixed use developments meeting certain criteria such as being located in a zone in which office, retail, or parking are a principally permitted use. The bill establishes that affordable housing developments are permitted by right in these zones and shall be subject to streamlined review processes. The bill defines “use by right” to exempt the development of affordable housing meeting the above criteria from review under CEQA and a decision on the project must be made within 90 days for projects with less than 150 homes or within 180 days for projects with more than 150 homes. Any design review must occur in this limited time frame and be based solely on objective standards. If the City determines that a project does not comply with objective planning standards, it must provide a written explanation to the developer within a 60-90 days from filing of the application, depending on the number of the units in the project. Along with the streamlined review process, the bill requires that 7 City Council Staff Report 2 of 4 Legislative Update
February 7, 2023
the developer include (and certify compliance with the City) in contracts with construction contractors that prevailing wages will be paid along with other labor and wage standards.
AB 2234: Planning and zoning: housing: postentitlement phase permits.
This measure amends the Permit Streamlining Act, which requires public agencies considering non-legislative development projects: (1) to provide a project applicant with a list of information required from the applicant for approval or denial; (2) approve or deny a project within certain timeframes; and (3) provide existing schedule of fees, exactions and other affordability requirements.
This bill increases the amount and type of information provided to applicants under the Permit Streamlining Act, by requiring the local agency to compile a list of information needed to approve or deny a postentitlement phase permit no later than January 1, 2024. The information must be posted to the City’s website. Based on certain population thresholds, the bill requires local agencies – at certain phase in dates- to provide an option for post entitlement phase permits to be applied for, completed, and retrieved on the City’s website. The status of in progress permits must also be viewable online.
SB 6: Local planning: housing: commercial zones.
This measure facilitates the development of housing in commercial, office and retail areas. This bill deems housing development projects an allowable use on commercial parcels (i.e. within a zone in which office, retail, or parking are a principally permitted use) so long as certain conditions such as density, public notice, comment and other procedures, site location and size, consistency with sustainable community strategy, prevailing wage requirements, and skilled and trained workforce requirements are met.
Effectively, this permits housing on commercial parcels without a rezone subject to any applicable conditions.
SB 897: Accessory dwelling units: junior accessory dwelling units.
Existing law allows a local agency to limit ADU height to 16 feet. SB 897 increases this height limitation to 18 feet for units near transit, and for detached units on lots that have existing multistory multifamily dwellings; and it increases the height limitation to 25 feet if an ADU is attached to a primary dwelling, – subject to a number of exceptions.
Existing law permits local agencies to provide for the creation of ADU’s in residential zones through ordinance or ministerial approval, and also to impose standards related to parking, height, setback, landscape, and size maximums. SB 897 requires that any standards imposed on ADU approval be objective and prohibits local agencies from denying an ADU permit application due to nonconforming zoning, building code violations, or unpermitted structures not presenting a threat to public health and safety and are not affected by the ADU construction.
Additionally, the bill requires local agencies to review and issue demolition permits for detached garages that an ADU would replace, concurrently with the review and issuance of the ADU permit.
Governance and transparency
8 City Council Staff Report 3 of 4 Legislative Update
February 7, 2023
SB 1439: Campaign contributions: agency officers.
Previously, the Levine Act prohibited “officers” of any state or local government agency who have received a contribution of $250 or more from an applicant or affiliated party from voting on the applicant’s matter if the officer knows or has reason to know that the participant has a financial interest in the matter. State and local elected officials and bodies—such as mayors and legislators, city councils, and boards of supervisors—have always been excluded from the Levine Act’s prohibitions.
SB 1439 expands this prohibition to local appointed government officers or candidates from accepting, soliciting, or directing a contribution of $250 or more from any person involved in an application for a license, permit, or other entitlement pending before the body and for 12 months after a decision is made. This bill also requires City Council members to recuse themselves from a proceeding involving a license, permit, or other use entitlement if they received a campaign contribution from that person in the preceding 12 months. The term “license, permit, or other entitlement” includes any contract not competitively bid. This prohibition will not be retroactive, meaning it will not apply to contributions from 2022.
AB 2449: Brown Act teleconference for just cause and emergency.
Starting in March 2023, cities will no longer be able to use AB 361 to hold fully remote meetings due to the State of Emergency expiring. AB 2449 will allow individual council members to participate remotely for “just cause” or due to "emergency circumstances." “Just cause” is defined as one of the following: (i) a childcare or caregiving need of a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner that requires them to participate remotely; (ii) a contagious illness that prevents a member from attending in person; (iii) a need related to a physical or mental disability as defined by statute; or (iv) travel while on official business of the legislative body or another state or local agency. “Emergency circumstances” means a physical or family medical emergency that prevents a member from attending in person.
The following requirements apply: A quorum of the legislative body must be established in a physical location in the jurisdiction; the public must be able to participate through a call-in option, via an internet-based service option, and at the in-person location of the meeting. Members may only participate remotely under AB 2449 a maximum of three consecutive months or 20% of the regular meetings within a calendar year.
SB 1100: Open meetings: orderly conduct.
Under the Brown Act, legislative bodies may enact reasonable regulations governing public participation at open meetings, but governing bodies are forbidden from prohibiting “public criticism of the policies, procedures, programs, or services of the agency, or of the acts or omissions of the legislative body.” This bill sets forth a process to remove individuals when they are disrupting the meeting.
A governing body must warn them that their behavior is disruptive and that if they do not stop their behavior, the governing body may remove them from the meeting. If the member of the public does not promptly cease their behavior, the governing body’s presiding member or their designee may order their removal. 9 City Council Staff Report 4 of 4 Legislative Update
February 7, 2023
Disruptive behavior is defined as behavior that “actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting,” including but not limited to, behavior that: (1) violates one of the governing body’s reasonable and lawful regulations for addressing the conduct of open meetings, or (2) a reasonable observer would perceive as a threat to use force by that member of the public.
Code enforcement and public safety
SB 1338: Community Assistance, Recovery, and Empowerment (CARE) Court Program.
This bill will allow families, clinicians, first responders and other adults to refer individuals to a civil court to create either: a voluntary CARE agreement or court ordered CARE plan. Individuals that may be referred to a CARE Court are those experiencing a severe mental illness such as schizophrenia and other psychotic disorders. The voluntary agreements or court-ordered plans will be implemented by County behavioral health agencies to provide health care, medication, housing, and whichever other services are necessary.
State financial assistance will be allocated to counties to establish the program, and individual counties will be responsible for implementing their CARE Court programs.
Monterey County has until December 1, 2024. Cities will have an important role in referring individual residents with mental illnesses to CARE Court.
SB 1186: Medicinal Cannabis Patients’ Right of Access Act.
Starting January 1, 2024, cities will not be allowed to adopt or enforce laws that prohibit the delivery of medicinal cannabis, or that prevent medicinal cannabis from being distributed “in a timely and readily accessible manner.” The new law also prohibits local governments from de facto bans on medicinal cannabis delivery, including:
1. The number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the local jurisdiction.
2. The operating hours of medicinal cannabis businesses.
3. The number or frequency of sales by delivery of medicinal cannabis.
4. The types or quantities of medicinal cannabis authorized to be sold by delivery.
5. The establishment of physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted by a licensed non-storefront retailer.
We will review the Sand City Municipal Code for possible updates to comply with this bill.
AB 1406: Law enforcement agency policies: carrying of equipment.
This bill requires a law enforcement agency that authorizes peace officers to carry an electroshock device, such as a taser or stun gun that is held and operated in a manner similar to a pistol, to require that device to be holstered or otherwise carried on the lateral side of the body opposite to the side that that officer’s primary firearm is holstered.
5274267.2
10 AGENDA ITEM
6A.
Approval of the January 17, 2023 Minutes
11 _____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 01.17.2023 Regular Meeting
MINUTES
JOINT SAND CITY COUNCIL AND SUCCESSOR
AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, January 17, 2023
5:30 PM
As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference
The Mayor called the meeting to order at 5:30 p.m.
AGENDA ITEM 1, ROLL CALL
Present: Mayor Mary Ann Carbone
Council Member Blackwelder
Councilmember Hawthorne
Councilmember Sofer
Absent: Councilmember Cruz
Staff: Vibeke Norgaard, City Manager
Stephanie Downs, Partner on behalf of Adam Lindgren, Interim City Attorney (virtual attendance)
Charles Pooler, City Planner (virtual attendance)
Connie Horca, City Clerk
Michel Mount, Police Sergeant
AGENDA ITEM 2, PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Sergeant Michael Mount.
AGENDA ITEM 3, INVOCATION
The invocation was led by Reverend Robert Hellam.
AGENDA ITEM 4, ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY MANAGER Mayor Carbone reported on the weekend storm, distribution of Covid-19 tests to the Shabu Shake Center, CHS, and Shoreline Church. She notified homeless people of available shelters during the storms, attended a Martin Luther King March in Seaside and the unveiling ceremony at the Marina Library of the new Martin Luther King statue.
City Manager Norgaard commended Mayor Carbone for her Covid tests distribution efforts, and reported on her Emergency Office of Communications meetings that were held twice a day during the storm. She reported on the results of the Budget Committee meeting, purchase of the public works dump truck, progress of the South of Tioga project sidewalk installation, and finalization of contracts for the Calabrese Park and West Bay projects. 12 _____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 01.17.2023 Regular Meeting
Mayor Carbone introduced Stephanie Downs from Meyers Nave, who will be filling in for Interim City Attorney Adam Lindgren.
AGENDA ITEM 5, COMMUNICATIONS
5:44 P.M. Floor opened for Public Comment.
Sand City resident Luke Kilpatrick inquired whether comments regarding agenda item 8A can be heard and was advised that comments for the item can be addressed when the item is being considered.
Mr. Pooler commented that no work should be done until the issue for the property is resolved.
City Manager Norgaard added that the item can be heard at the February 7, 2023 Council meeting
5:46 P.M. Floor closed to Public Comment.
AGENDA ITEM 6, CONSENT CALENDAR
City Clerk Horca commented on corrections to page 8, item 6A of the December 20, 2022 Council meeting to change the title from “Attorney” to Manager, and to add the title of “RE-Gen” to the appointments list in relation to the MRWMD Board. 6A. There was no discussion of the December 20, 2022 Council Meeting Minutes. 6B. There was no discussion of the City/Successor Agency Monthly Financial Report, November 2022.
6C. There was no discussion of the City Resolution Confirming Members of the Sand City Arts Committee.
6D. There was no discussion of the City Resolution Making Re- Appointment of Greg Hawthorne to the Sand City Design Review Committee until January 31st of 2025. 6E. There was no discussion of the City Resolution Updating Appointments to Various Local and Regional Agencies and Boards, effective January 18, 2023. 6F. There was no discussion of the City Resolution Authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period of January 18, 2023 through February 16, 2023 pursuant to AB 361 and Ralph M. Brown Act Provisions.
13 _____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 01.17.2023 Regular Meeting
5:48 P.M. Floor opened for Public Comment.
There were no comments from the Public in person, via writing or through telecommunications.
5:48 P.M. Floor closed to Public Comment.
Motion to approve the Consent Calendar items with changes as indicated, was made by Council Member Hawthorne, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None.
ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried.
AGENDA ITEM 7, CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar.
AGENDA ITEM 8, PUBLIC HEARING
{Due to a possible conflict of interest by residing within 500 feet of the subject property, Mayor Carbone stepped down from the dais. Council Member Cruz is absent} Vice Mayor Blackwelder presided over the meeting.
8A. Consideration of City RESOLUTION to Amend Conditional Use Permit 630 Authorizing Design Change of Exterior Wall and Removal of Upper-Level Deck at 1880 Park Avenue {Council to consider continuing this Public Hearing to the next regularly scheduled Council meeting on February 7, 2023} City Manager Norgaard requested Council’s consideration of a continuation to the February 7, 2023 council meeting due City Staff’s attempts to work out a solution. 5:51 P.M. Floor opened for Public Comment.
Sand City resident Megan Dole inquired whether plans for the construction were submitted to the City.
City Manager Norgaard, responded that plans for the original design were received by the City.
Mr. Pooler added that a building permit was issued; however the floor plan and elevation changes are the issue and that the building official is coordinating with the builder.
Sand City resident Kate Tolles commented that the property splits between hers and her neighbors.
City Planner Pooler added that he will contact the building official regarding other properties being affected.
14 _____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 01.17.2023 Regular Meeting
Sand City resident Julie Essinger commented that her view is being obstructed by the construction.
Vice Mayor Blackwelder remarked that the project was originally approved several years ago, and that Council is waiting for details regarding the item to come back for Council’s consideration.
Sand City resident Richard Dole commented that he sees a second-story going up, came to City Hall to view the original plans, and that they were inconsistent with what is being built.
Sand City resident Cathy Francini received confirmation that the project is on hold.
The public was informed that complaints may be submitted to City Hall.
Sand City resident Julie Essinger added that their view is gone and that the builders seem to be doing what they want.
City Manager Norgaard suggested that the public attend the February 7, 2023 meeting should the Council decide to continue the item, and express their comments at that meeting.
6:12 P.M. Floor closed to Public Comment.
Motion to continue the City Resolution to Amend Conditional Use Permit 630 Authorizing Design Change of Exterior Wall and Removal of Upper-Level Deck at 1880 Park Avenue to the February 7, 2023 Council meeting was made by Council Member Hawthorne, seconded by Council Member Sofer. Roll call Vote AYES:
Council Members Blackwelder, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: Council Member Carbone. Motion carried. {Council Member Carbone returned to the dais}
AGENDA ITEM 9, NEW BUSINESS
9A. Consideration and Approval of City RESOLUTION Authorizing the City Manager to Execute a Professional Services Agreement between the City of Sand City and Hinderliter, DeLlamas & Associates (HdL) for Transactions and Use Tax Audit & Information Services for Measure "L"
City Manager Vibeke Norgaard presented the agenda item and reported that on November 8, 2022, the voters of the City of Sand City voted in favor of Measure “L” which increases the transactions and use tax to one and one-half percent to be administered by the California Department of Tax and Fee Administration (CDTFA).
A contract was entered into in 2015 for Measure “J” and It is necessary to amend the current agreement with Hinderliter de Llamas and Associates (HdL) to apply it to the Measure “L” transactions and use tax. She noted that the fiscal impact would increase the City’s monthly payment from $100 to $200, with no change to the audit recovery fees of $25%, and further explained the process of fee recovery. 15 _____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 01.17.2023 Regular Meeting
City Manager Norgaard responded to Council Member Sofer’s inquiry that HdL will perform tax audits. She also clarified the increase of service fees for Mayor Carbone.
6:12 P.M. Floor opened for Public Comment.
There were no comments from the Public in person, via writing or through telecommunications.
6:12 P.M. Floor closed to Public Comment.
Motion to approve the City Resolution authorizing the City Manager to Execute a Professional Services Agreement between the City of Sand City and Hinderliter, De Llamas & Associates (HdL) for Transactions and Use Tax Audit & Information Services for Measure "L" was made by Council Member Blackwelder, seconded by Council Member Hawthorne. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz.
ABSTAIN: None. Motion carried.
9B. Approval of Upcoming City Events for 2023
The Council discussed the upcoming City Events, and why the we.mural festival was not on the events list. City Manager Norgaard commented that at the last Council meeting, there was discussion that the Arts Committee would seek walls, that a we.mural festival should not coincide with Car Week, and that it can be added once Council decides whether it wants a mural festival in 2023.
Motion to approve the dates for upcoming Sand City events as listed was made by Council Member Sofer, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None.
ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried. 9C. Comments by Council Members on Items of Interest to Sand City Vice Mayor Blackwelder reported on his attendance at the Waste Management meeting, SB 1383, rebranding of MRWMD to ‘Re-Gen”, what to do with organic waste being brought in, and a future feasibility study to analyze BTU’s.
There was Council discussion regarding waste biomass as a renewable source of energy, processing of plastics into fuel, and a 40 acre pilot program.
Council Member Sofer reported on her attendance at the Monterey Peninsula chamber of Commerce meeting, loans for economic and physical property damage as a result of the storms.
Mayor Carbone wished Sand City resident Dierdre Bascou a Happy Birthday.
AGENDA ITEM 10, CLOSED SESSION
16 _____________________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes 01.17.2023 Regular Meeting
6:30 p.m. The Mayor opened the floor for public comment regarding the closed session item, and seeing none, closed the floor for public comment.
6:31 p.m.
10A. City Council/Successor Agency Board adjourned to Closed Session regarding Conference with labor negotiator pursuant to California Government Code Section 54957.6
1) Agency designated representative: Vibeke Norgaard, City Manager; Adam Lindgren, Interim City Attorney
Employee Organization: Sand City Police Officers Association (POA) 7:20 p.m.
10B. Re-adjourned to Open Session to report any action taken at the conclusion of Closed Session in accordance with California Government Code Section 54957.1
The labor negotiator received confidential direction from the City Council regarding labor negotiation.
AGENDA ITEM 11, ADJOURNMENT
There was consensus of the Council to adjourn the meeting at 7:21 p.m. to the next regularly scheduled meeting on Tuesday, February 7, 2023 at 5:30 p.m. ____________________________
Connie Horca, City Clerk
17 AGENDA ITEM
6B.
Acceptance of the City/Successor Agency
Monthly Financial Statements, December
2022
18 p
INTER
MEMORANDUM
OFFICE
To: City Council/Agency Board Members
From: Connie Horca, City Clerk
Subject: December 2022 Financial Reports
Date: January 19, 2023
Attached are the financial reports for both the City of Sand City and the Sand City Successor Agency of the former Redevelopment Agency for the month of December 2022.
A. City of Sand City Reports
1. Revenue received in the month of December 2022-Total $ 1,521,850.52 (This total includes transfers).
Cash Register Activity Report for December 2022
2. Expenditures paid for in the month of December 2022-Total $ 512,230.86 Month End December Cash Disbursements Report
3. Current City Balances as of December 31, 2022
Total $ 14,994,928.41
Restricted & unrestricted
[Includes, Mechanics Bank, and Local Agency Investment Fund (LAIF), and City CDs ranging from 6 months to 3 years]
B. Sand City Successor Agency for the former Redevelopment Agency Reports
1. Revenue received in the month of December 2022 -Total $ 838,328.99 Month End Cash Register Activity Report for December 2022.
2. Expenditures paid for in the month of December 2022 Total $ 4,056.25 Month End Cash Disbursements Report for December 2022.
3. Current Successor Agency Balances as of December 31, 2022 Total $ 2,198,808.94
Restricted and unrestricted
(Includes Mechanics Bank, Bond CDs, and Bond Reserves for the 2008 Taxable Bonds) 19 City Council
January 25, 2023
NOTES TO THE FINANCIAL REPORT
Special City Notes for December 2022
On the Month End Cash Register Activity Report - Special or Major Receipts for the Month of December 2022 are listed below:
Date Source Amount Description
12/5/2022 State of California $ 446,361.22 3rd Qtr. 2022 In Lieu Sales Tax 12/5/2022 State of California $ 297,319.13 3rd Qtr. 2022 Transaction & Use Tax 12/8/2022 County of Monterey $ 8,333.33 October 2022 COPS Grant 12/24/2022 County of Monterey $ 47,027.81 Property Tax
12/24/2022 County of Monterey $ 20,997.00 Vehicle Abatement 12/24/2022 County of Monterey $ 7,864.38 SB 13-Supplemental Roll 12/30/2022 PG&E $ 10,264.20 November 2022 UUT
12/5/2022 State of California $ 278,982.84 October 2022 In Lieu Sales Tax 12/5/2022 State of California $ 284,286.93 October 2022 Transaction & Use Tax Transfers
(Transfers are shown on the cash register activity report; they are transfers from one bank account to another and should not be considered as a revenue or expenditure) Date Source Amount Description
There were no transfers in December 2022.
Month End Cash Disbursement Report - Special or Major Expenses for the Month of December 2022 is explained below:
Check # Paid To Amount Description
037884 HOPE Services $ 6,298.95 October 2022 Services & Jul-Sep bill 037885 Granicus $ 9,232.30 Annual Agenda Management System 037894 Monterey County $ 8,322.14 3rd Qtr. 2022 Criminal Justice Info 037895 Monterey County $ 13,673.00 Dispatch Services/NGEN Maintenance 037910 EMC Planning $ 5,693.46 Nov. 2022 Planning Staff Support 037952 CalPERS $ 14,100.00 December 2022 PERS 457
037961 U.S Bank Corporate $ 6,264.00 November 2022 Cal Card Charges 37869A CalPERS $ 29,808.77 December 2022 PERS Health Premiums 37869B CalPERS $ 45,793.01 November 2022 PERS Retirement 37869D ADP, Inc $ 21,661.24 December 15, 2022 Payroll Taxes 37869E ADP, Inc $ 60,472.83 December 2022 Payroll Taxes 20 City Council
January 25, 2023
Successor Agency Notes for December 2022
On the Month End Cash Register Activity Report - Special or Major Receipts for the Month of December 2022 is listed below.
Date Source Amount Description
12/31/2022 Mechanics Bank $ 13.13 Dec. 2022 Interest– 6 Month Tax Exempt Bond 12/31/2022 Mechanics Bank $ 13.00 Dec. 2022 Interest– 3 Month Tax Exempt Bond 12/31/2022 Mechanics Bank $ 246.86 Dec. 2022 Interest - Property Tax Increment Month End Cash Disbursement Report-Special or Major Expenses for the Month of December 2022 is explained below.
Check # Paid To Amount Description
002253 RSG, Inc. $ 4,056.25 November 2022 ROPS Services 21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
37 AGENDA ITEM
6C.
Approval of City RESOLUTION Authorizing
the Extension of Remote Teleconference
Meetings of the City Council and Boards,
Commissions, and Committees for the
Period of February 8, 2023 through
February 28, 2023 pursuant to AB 361 and
Ralph M. Brown Act Provisions
38 CITY OF SAND CITY
RESOLUTION SC 23- , 2023
RESOLUTION OF THE CITY COUNCIL OF SAND CITY
AUTHORIZING THE EXTENSION OF REMOTE TELECONFERENCE MEETINGS OF
THE CITY COUNCIL AND BOARDS, COMMISSIONS, AND COMMITTEES FOR THE PERIOD OF FEBRUARY 8, 2023 THROUGH FEBRUARY 28, 2023 PURSUANT TO AB 361 AND RALPH M. BROWN ACT PROVISIONS
WHEREAS, the City of Sand City (“the City”) is committed to preserving and nurturing public access and participation in meetings of the City Council and boards, commissions, and committees (collectively, “legislative bodies”); and WHEREAS, all meetings of the City’s legislative bodies are open and public, as required by Government Code sections 54950-54963 (the “Ralph M. Brown Act”) so that any member of the public may attend public meetings, watch the City’s legislative bodies conduct their public business, and participate by directly addressing the legislative bodies; and WHEREAS, pursuant to Governor Newsom’s signing of Assembly Bill 361 (“AB 361”) on September 16, 2021, Government Code section 54953(e) provides for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, AB 361 applies to meetings during a proclaimed state of emergency and when state or local officials have imposed or recommended measures to promote social distancing; and
WHEREAS, a state of emergency exists in California as a result of the threat of COVID-19 as proclaimed by Governor Newsom on March 4, 2020, and the state of emergency has not been terminated pursuant to Government Code section 8629; and WHEREAS, the California Department of Public Health (“CDPH”) and the federal Centers for Disease Control and Prevention (“CDC”) caution that several variants of COVID-19 in the country, are more transmissible than prior variants of the virus, may cause more severe illness, and that even fully vaccinated individuals can spread the virus to others resulting in rapid and alarming rates of COVID-19 cases and hospitalizations; and WHEREAS, other variants of COVID-19 exist, and it is unknown at this time whether other variants may result in a new surge in COVID-19 cases; and WHEREAS, the City Council has an important governmental interest in protecting the health, safety and welfare of those who participate in meetings of the City’s legislative bodies subject to the Brown Act; and
WHEREAS, the City Council does hereby confirm the circumstances of the state of emergency and finds that meeting in person for meetings of the legislative bodies of the City would present imminent risks to the health or safety of attendees, and therefore that the legislative bodies of the City may conduct their meetings without compliance with paragraph 39 Sand City Resolution SC 23- , 2023
(3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of Section 54953; and
WHEREAS, in order to ensure that the public has full access to observe and participate in the public meetings of its legislative bodies, the City provides free internet-based public meeting attendance options, allowing members of the public to address the City’s legislative bodies directly in real time; and
WHEREAS, the City determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sand City as follows:
SECTION 1. The recitals set forth above are true and correct and are adopted by the City Council as findings in support of this Resolution.
SECTION 2. The City Manager, City Attorney, staff, and legislative bodies of the City are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.
SECTION 3. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) February 28, 2023, or (ii) such time as the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City of Sand City may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.
PASSED AND ADOPTED by the City Council of Sand City on this 7th day of February 2023, by the following vote:
AYES: Council Members
NOES:
ABSENT:
ABSTAIN:
APPROVED:
___________________________
ATTEST: Mary Ann Carbone, Mayor
__________________________
Connie Horca, City Clerk
40 Sand City Resolution SC 23- , 2023
41 AGENDA ITEM
8A.
Presentation by the Monterey County
Convention and Visitors Bureau regarding
the Monterey County Tourism
Improvement District {5 minutes} 1)
Discussion by Council and Direction to
Staff regarding renewal of the Monterey
County Tourism Improvement District
42 AGENDA ITEM
8B.
Presentation and Consideration of the
Audited Financial Statements for the Year
ended June 30, 2022 and Independent
Auditors Report by Maira Reid and Mike
Nolan 1) Approval of City RESOLUTION
Accepting the Audited Financial
Statements for the Year ended June 30,
2022 and Independent Auditor's Report
43 City of Sand City
STAFF REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: VIBEKE NORGAARD, CITY MANAGER
DEVON LAZZARINO, FINANCE/HR SPECIALIST
SUBJECT: REVIEW OF FY 2021-2022 FINAL AUDIT
DATE: JANUARY 10, 2023
FOR: FEBRUARY 7, 2023 CITY COUNCIL MEETING
_______________________________________________________________________ Discussion: On January 12, 2023 the Budget and Personnel Committee received a presentation from the City auditors Hayashi & Wayland/CLE Connect. The key takeaways from the FY 2021-2022 draft audit are listed below:
1. The assets of the City of Sand City exceeded its liabilities at the close of the year ended June 30, 2022 by $31 million. However, $10 million is a net investment in capital assets, and $10 million is a noncurrent receivable due from the Successor Agency.
2. The City of Sand City’s total net position increased by approximately $2.3 million. *
3. The assets and liabilities include $542,222 that is due to TAMC in regards to a development project.
4. At the close of the fiscal year, the City of Sand City’s governmental funds reported a combined ending fund balance of $23 million, $10 million of which is a noncurrent receivable. The net change in fund balance was an increase of $1.6 million. *The increase in the City’s end of year net position of $2,311,000 is due to a combination of factors, including that the City experienced an increase of $263,000 in total revenues in fiscal year 2021-2022. This was mainly due to an increase in sales and transaction tax revenue in turn attributable to several factors including:
• Inflationary impacts increasing the cost of goods and materials; • New businesses opening in the third and fourth quarters of fiscal year 2020-2021 and start of fiscal year 2022, such as Total Wine & More and the Good Feet Store; Ashley Home Store and Mancini’s Sleep world;
• The high price of gasoline in fiscal year 2021-2022.
44 The increase in the City’s net position is also the result of a decrease in overall expenditures of $1,325,000 in part due to:
• Supply chain issues that resulted in capital outlay items not being completed and expensed in the fiscal year.
• Personnel changes such as the former City Manager, Aaron Blair, departing and the position being filled by the then City Attorney Norgaard at no additional salary increase for approximately 5 months,
• The retirement of two police officers.
Additional information will be shared during the auditor’s presentation including highlights of the City’s assets and liabilities and overall financial position. They will also provide information on how the City’s current position compares to the financial position in past years. The auditors will be available for questions from the Council and the public after their presentation.
Fiscal Impact: There is no fiscal impact associated with approving a resolution accepting the audit statements and the auditor’s report.
Recommendation: Staff recommends that the City Council approve the attached resolution accepting the City’s audited financial statements for the Fiscal year ending June 30, 2022 and the Independent Auditor’s Report.
45 CITY OF SAND CITY
RESOLUTION SC , 2023
RESOLUTION OF THE CITY COUNCIL OF SAND CITY ACCEPTING THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 AND INDEPENDENT AUDITOR’S REPORT
WHEREAS, the City of Sand City has completed financial transactions for the fiscal year ending June 30, 2022; and
WHEREAS, prudent financial management, along with State and Federal regulations, dictate that an independent financial audit be conducted of the City’s yearly financial transactions; and
WHEREAS, the City of Sand City has contracted with the accounting firm of Hayashi & Wayland/CLE Connect for accounting/audit services; and
WHEREAS, Hayashi & Wayland have the necessary qualifications and have full access to all City/Successor Agency financial records to conduct an audit of the City’s finances for this year; and
WHEREAS, Hayashi & Wayland/CLE Connect have worked with City staff to audit the financial records of the City for fiscal year ended June 30, 2022; and WHEREAS, in the Auditor’s opinion, the enclosed financial statements do present fairly, in all material respects the financial position of the City of Sand City as of June 30, 2022, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America; and WHEREAS, it is noted in these Statements that the City of Sand City has been following the provisions of Governmental Accounting Standards Board (GASB) Statements that pertain to local governments, and that these audited financial statements were prepared in compliance with these new accounting standards; and
WHEREAS, on January 12, 2023, the Budget and Personnel Committee reviewed the attached financial statements for fiscal year ended June 30, 2022 and recommends acceptance of the documents by the full City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sand City as follows:
1. That the attached financial statements are hereby accepted.
2. That City staff are authorized to use this final audit as the City’s financial record for the fiscal year ended June 30, 2022.
46 PASSED AND ADOPTED by the Sand City Council on this day of ________, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
ATTEST:
________________________________
Mary Ann Carbone, Mayor
________________________________
Connie Horca, City Clerk
47 CITY OF SAND CITY
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
JUNE 30, 2022
AND INDEPENDENT AUDITOR’S REPORT
48 CITY OF SAND CITY
Table of Contents
Page
Members of the City Council and Staff 1
Independent Auditor’s Report 2 – 4
Management’s Discussion and Analysis 5 – 11
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 12
Statement of Activities 13
Fund Financial Statements:
Governmental Funds:
Balance Sheet – Governmental Funds 14
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 15
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 16 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 17 Fiduciary Funds:
Statement of Fiduciary Net Position (Deficit) 18
Statement of Changes in Fiduciary Net Position (Deficit) 19 Notes to the Basic Financial Statements 20 – 49
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual – General 50
Notes to Required Supplementary Information 51
Schedule of Proportionate Share of the Net Pension Liability 52 Schedule of Contributions – Pensions 53
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios 54 Schedule of Contributions – OPEB 55
(i)
49 CITY OF SAND CITY
Table of Contents
(Continued)
Page
Report Required by Government Auditing Standards –
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 56 – 57
(ii)
50 CITY OF SAND CITY
JUNE 30, 2022
Members of the City Council
Name Office Term Expires
Mary Ann Carbone Mayor December, 2022
Jerry Blackwelder Vice Mayor December, 2022
Elizabeth Sofer Council Member December, 2022
Gregory Hawthorne Council Member December, 2024
Kim Cruz Council Member December, 2024
City Staff
Name Office
Vibeke Norgaard City Manager
Brian Ferrante Chief of Police
1 51
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and City Council Members
City of Sand City
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Sand City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Sand City, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in the 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 of Sand 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 of Sand City's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 52
Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 GAAS and Government Auditing Standards (GAS) will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and GAS, 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 of Sand City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Sand City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 5 through 11, the Budgetary Comparison Schedule on page 50, the Schedule of Proportionate Share of the Net Pension Liability on page 52, the Schedule of Contributions – Pension on page 53, the Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios on page 54, and the Schedule of Contributions – OPEB on page 55 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 3 53
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Members of the City Council and Staff schedule, which is the responsibility of management, is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the financial statements, and, accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated DATE on our consideration of the City of Sand City’sinternal 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 of Sand City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Sand City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Salinas, California
[Date of the Auditors’ Report]
4 54
CITY OF SAND CITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
The discussion and analysis of the City of Sand City’s financial performance provides an overview and analysis of the City’s financial activities for the year ended June 30, 2022. It should be read in conjunction with the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• The assets of the City of Sand City exceeded its liabilities at the close of the year ended June 30, 2022 by $31 million. However, $10 million is a net investment in capital assets, and $10 million is a noncurrent receivable due from the Successor Agency. • The City of Sand City’s total net position increased by $2.3 million. • The assets and liabilities include $542,222 that is due to TAMC in regard to a development project.
• At the close of the year ended June 30, 2022, the City of Sand City’s governmental funds reported combined ending fund balances of $23 million, $10 million of which is a noncurrent receivable. The net change in fund balances was an increase of $1.6 million.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis serve as an introduction to the City’s financial statements. The City’s financial statements are comprised of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains required supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Net Position combines and consolidates governmental funds’ current financial resources (short-term spendable resources) with capital assets and long-term obligations. Other nonfinancial factors should also be taken into consideration, such as changes in the City’s property tax base, and the condition of the City’s infrastructure (i.e. roads, drainage improvements, storm and sewer lines, etc.) to assess the overall health or financial condition of the City. 5 55
OVERVIEW OF THE FINANCIAL STATEMENTS (Continued)
Government-wide Financial Statements (Continued)
The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes).
The government-wide financial statements include all the governmental activities of the City. The governmental activities of the City include public safety, streets, parks, planning, community development and general administration. The City does not operate any business-type activities.
The government-wide financial statements can be found on pages 12 and 13 of this report.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the funds of the City can be divided into two categories, governmental funds and fiduciary funds:
Governmental Funds – The focus of governmental funds is narrower than that of government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term effect of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
Fiduciary Funds – These funds are used to account for resources held for the benefit of parties outside the government. It is in these funds that the City accounts for the former assets and liabilities of the Redevelopment Agency that were transferred to a Successor Agency. Fiduciary funds are not included in the government-wide statements because the resources of those funds are not available to support the City’s own programs. The accounting for fiduciary funds is much like that used for proprietary funds.
The City maintains four individual governmental funds. Information is presented separately in the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, which is considered to be a major fund. Data from the other governmental funds is presented as other governmental funds.
The fund financial statements can be found on pages 14 to 19 of this report.
Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 20 through 48 of this report. 6 56
GOVERNMENT–WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. The City’s net position increased by $2.3 million in fiscal year 2021–2022 from fiscal year 2020–2021. The City’s net investment in assets of $10 million is used to provide services to citizens; consequently, these assets are not available for future spending. Another $10 million is a noncurrent receivable leaving approximately $11.8 million available for operations.
Summary of Net Position (Rounded to the nearest $1,000) For the Year Ended June 30
2022 2021 Change
Current and other assets $ 27,207,000 $ 23,792,000 $ 3,415,000 Capital assets 10,335,000 10,883,000 (548,000)
Total assets 37,542,000 34,675,000 2,867,000
Deferred outflows of resources 1,518,000 1,619,000 (101,000) Current and other liabilities 926,000 1,022,000 (96,000) Long-term liabilities 2,888,000 5,641,000 (2,753,000)
Total liabilities 3,814,000 6,663,000 (2,849,000)
Deferred inflows of resources 4,168,000 863,000 3,305,000 Net Investment in capital assets 10,271,000 10,789,000 (518,000) Restricted for: Streets/roads 95,000 88,000 7,000 Beach access repair 30,000 44,000 (14,000) Unrestricted 20,683,000 17,847,000 2,836,000
Total net position $ 31,079,000 $ 28,768,000 $ 2,311,000 Current assets increased due to an increase in cash of $60,000, investments of $2,170,000, OPEB asset of $946,000 and receivables of $239,000.
Capital assets and net investment in capital assets decreased due to depreciation of $443,000 and $334,000 of disposals offset by net capital additions of $229,000.
Long-term liabilities decreased due to a decrease in the pension liability of $2,700,000 and compensated absences of $51,000.
The increase in deferred inflows of resources is due to a change in the deferred OPEB adjustments and deferred lease revenue as a result of GASB 87, leases, implementation.
The increase in unrestricted is due to the excess of revenues over expenses of $2,311,000 and the decrease of net investment in capital assets.
The decrease in restricted for beach access repair is due to amounts spent during the year. 7 57
GOVERNMENT–WIDE FINANCIAL ANALYSIS (Continued)
Change in Net Position (Rounded to the nearest $1,000)
For the Year Ended June 30
2022 2021 Change
Revenues: Program revenues: Charges for services $ 1,143,000 $ 1,700,000 $ (557,000) Operating grants and contributions 149,000 292,000 (143,000) Capital grants and contributions 12,000 134,000 (122,000) General revenues:
Property taxes 353,000 386,000 (33,000) Sales and transaction taxes 6,598,000 5,755,000 843,000 Other taxes 321,000 290,000 31,000 Investment earnings (loss) (118,000) 14,000 (132,000) Gain/(loss) on disposal of assets (150,000) ̶ (150,000) Total revenues 8,308,000 8,571,000 (263,000)
Expenses:
General government 1,428,000 1,575,000 (147,000) Public safety 2,797,000 3,839,000 (1,042,000) Public works 1,159,000 1,382,000 (223,000) Planning 280,000 306,000 (26,000) Building 155,000 113,000 42,000 Community development 166,000 96,000 70,000 Parks 7,000 5,000 2,000 Interest on long-term debt 5,000 6,000 (1,000) Total expenses 5,997,000 7,322,000 (1,325,000)
Change in net position 2,311,000 1,249,000 1,062,000
Net position, beginning of year 28,768,000 27,519,000 1,249,000 Net position, end of year $ 31,079,000 $ 28,768,000 $ 2,311,000 The decrease of charges for services is due to a decrease in rental income as a result of the GASB 87, leases, implementation, a reduction of $771,000 in rental income recognized in current year.
The growth in sales and transaction taxes from fiscal 2019-2021 to fiscal 2021-2022 is attributable to several factors: (1) Inflationary impacts increasing the cost of goods and materials; (2) New businesses opening in the third and fourth quarters of fiscal year 2021 and start of fiscal year 2021- 2022, such as Total Wine & More and the Good Feet Store; Ashley Home Store and Mancini’s Sleep world; (3) the high price of gasoline in fiscal year 2021-2022.
The decrease in general government expenses is due in part to the change in City Manager from Aaron Blair to Vibeke Norgaard and the consequent cost savings to the City due to Mrs. Norgaard’s role as Interim City Manager for approximately five months with no salary increase. Further, the OPEB and pensions liability were significantly reduced. 8 58
GOVERNMENT–WIDE FINANCIAL ANALYSIS (Continued)
The decrease in public safety expense is due to the retirement of two police officers, one of whom retired after a long service with the City. One new officer was hired in the last quarter of the fiscal year and at a lower pay rate. There was also a reduction in compensated absence liability due to the retiring officers, reduction in police OPEB liability ($208,252) and pension liability ($616,265).
The investment loss is due to an unrealized loss on the monies invested in the Local Agency Investment Fund (LAIF). The decrease in public works expense is due to lower workers comp premiums ($53,509), lower expense on City infrastructure projects ($38,640), a reduction in public works OPEB liability ($34,709) and a reduction in public works pension liability ($81,056). The increase in community development expense is due to the return of City sponsored events after Covid-19.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets – At June 30, 2022, the City’s net investment in capital assets amounted to $10 million (net of accumulated depreciation), a net decrease of $548,000 over the prior year due to depreciation and disposals offset by equipment purchases and construction in progress. Capital assets included land, land improvements, infrastructure, buildings, equipment, right-to-use leased equipment, vehicles, furniture and fixtures, and construction in progress.
Debt Administration – At June 30, 2022, the City had $3 million in long-term debt. The net change to debt during the year was a decrease of $2,700,000 due to a decrease of the pension obligation.
FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.
At the end of the current fiscal year, the City’s governmental funds reported a total fund balance of $22 million. This fund balance includes a noncurrent receivable of $10 million. The General Fund has an unassigned fund balance of $12 million.
During the current fiscal year, the fund balance of the City’s General Fund increased by $1.6 million.
FUND BUDGETARY HIGHLIGHTS
General Fund –
The City amended its budget twice during the fiscal year to reflect changes in projections of revenue and expenditures. Actual general fund revenues were less than those originally budgeted by $1,053,255 and actual expenditures from the general fund were also under budget by $1,018,661.
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ECONOMIC FACTORS AND NEXT YEARS BUDGET
The City’s projections for the fiscal year 2022-2023 budget show a general fund trending towards a budget surplus. This projected budget surplus is a result of a projected increase in revenues due in turn to several factors: A transaction and use tax measure was passed by Sand City voters in the November 2022 election.
The measure raises the City’s transaction and use tax revenue by .5% to 1.5%. The increased revenue from that measure is projected to be approximately $1,400,000 annually with $350,000 projected to be received in the 4Q of fiscal year 2022-2023. The City also passed a short-term rental ordinance in the first quarter of fiscal year 2022-2023, which has resulted in increased revenue from Transient Occupancy Taxes. Furthermore, the City is projecting an increase in revenues from business licenses. This projection of increased revenues is despite the City facing a loss of lease payments from California American Water’s lease of the Sand City desalination facility in the amount of $850,000 annually.
The City’s expenses in fiscal year 2022-2023 are expected to increase compared to fiscal year 2021- 2022. This is in part due to supply chain issues in fiscal year 2021-2022, resulting in items purchased in prior fiscal years being delivered in fiscal year 2022-2023, as well as projects that have been moving forward over the past two fiscal years finally entering into the construction stage, as well as the added expense of increases in costs associated with construction and labor. Other projected increases in expenses are due to certain planning department activities, which are overdue and in need of being implemented in fiscal year 2022-2023 and 2023-2024, such as the update of the City’s housing element and general plan.
The City has continued to utilize Consultants and Contract Labor in several areas for assistance in lieu of permanent additions to the payroll such as building, planning, engineering, and information technology.
The South of Tioga project took several key steps forward in fiscal year 2021-2022 due in part to the Lyles Diversified member of the ownership LLC taking over the management of the Project.
While project site demolition was temporary halted during in fiscal year 2021-2022 due to state agency procedures aimed at the protection of endangered species in the project area, demolition commenced in fiscal year 2021-2022 and was fully completed in Q2 of fiscal year 2022-2023, with grading completed also in Q2 of fiscal year 2022-2023, and public improvements well on their way to completion before the end of the fiscal year 2023. The City has been processing building permits for the first phase of the project, which consists of the construction of the hotel component. The project, which includes a 216-room hotel and a residential component that includes 356 units will ultimately be a positive revenue generator for the City through increased Transient Occupancy Tax revenue, though the revenue impacts will not be seen until fiscal year 2023-2024, at the earliest.
Two other projects that have been projected to positively impact City revenues, Collections at Monterey Bay (King Ventures) and the Monterey Bay Shores Eco-Resort, are currently not projected to impact the fiscal year 2022-23, 2023-2024 or 2024-2025 budgets. However, the City is confident that at some point these two projects will come to fruition. At this point, no projected revenues or expenses related to the two projects has been included in the 3-year projections.
Looking forward to fiscal year 2023-2024 and 2024-2025, the budget will be developed in a financially uncertain time. The years ahead are difficult to plan due to the continued impacts of COVID, the impacts from the war in Ukraine, and rising inflation. With that in mind, the City’s budgets will communicate what we think is the most fiscally responsible approach to funding operations and capital investments to best serve the Sand City community. 10 60
Staff will ensure that a balanced and fiscally responsible budget for fiscal year 2023-2024 and 2024- 2025 that takes into account all information available in ever-changing times. Staff will anticipate revenues and expenditures are such that we will have a positive operating reserve. This reserve will be available for operating contingencies, capital improvements, or service changes.
We will continue to monitor revenues and expenditures, and any additional modifications that may need to be made based on new available information. Future proposed budgets and capital improvements will do the following:
• Remain fiscally responsible • Maintain a safe and healthy community • Enhance economic vitality • Deliver exceptional City services • Invest in well-planned infrastructure and growth In light of the economic reality imposed by COVID-19 over the past two years, staff will continue to look for opportunities to reduce expenses without impacting the level of service provided. We will continue to look for opportunities to increase revenues including the continued successful development of the South of Tioga project, a retail cannabis ordinance, and the continued investment into the West End and various infill projects.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Sand City, 1 Pendergrass Way, Sand City, California 93955.
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BASIC FINANCIAL STATEMENTS
62 CITY OF SAND CITY
STATEMENT OF NET POSITION
JUNE 30, 2022
ASSETS
Cash and cash equivalents $ 2,107,913 Investments 11,744,237 Receivables 119,408 Lease receivable 182,539 Receivables from other governments 1,181,184 Loans due from Successor Agency 9,730,824 Net OPEB asset 2,140,583 Capital assets, net:
Non-depreciable 2,217,579 Depreciable/amortizable 8,117,908 Total assets 37,542,175
DEFERRED OUTFLOWS OF RESOURCES
PERS contributions 845,075 Deferred pension adjustments 556,201 OPEB contributions 117,116 Total deferred outflows of resources 1,518,392
LIABILITIES
Accounts payable 174,359 Due to other governments 542,222 Accrued liabilities 28,216 Developer deposit 25,000 Noncurrent liabilities:
Due within one year 155,806 Due in more than one year 2,888,231 Total liabilities 3,813,834
DEFERRED INFLOWS OF RESOURCES
Deferred lease revenue 953,496 Deferred pension adjustments 1,961,935 Deferred OPEB adjustments 1,252,642 Total deferred inflows of resources 4,168,073
NET POSITION
Net investment in capital assets 10,271,499 Restricted for: Streets and roads 95,257 Beach access repair 30,449 Unrestricted 20,681,455 Total net position $ 31,078,660
See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Program Revenues
Net (Expenses)
Operating Capital Revenues and
Charges Grants and Grants and Changes in
Expenses for Services Contributions Contributions Net Position
FUNCTIONS/PROGRAMS
Governmental activities:
General government $ 1,428,154 $ 720,796 $ 102,950 $ ̶ $ (604,408) Public safety 2,797,125 198,755 2,500 ̶ (2,595,870)
Public works 1,158,953 15,215 43,069 12,486 (1,088,183) Planning 280,478 126,836 ̶ ̶ (153,642)
Building 154,938 53,313 ̶ ̶ (101,625)
Community development 165,831 28,228 ̶ ̶ (137,603)
Parks 7,164 ̶ ̶ ̶ (7,164)
Interest on long-term debt 4,888 ̶ ̶ ̶ (4,888)
Total governmental activities $ 5,997,531 $ 1,143,143 $ 148,519 $ 12,486 $ (4,693,383) General revenues:
Taxes:
Property taxes, levied for
general purposes 352,707
Sales tax 3,557,590
Transaction tax 3,039,904
Transient occupancy tax 17,896
Utility user’s tax 173,015
Franchise taxes 108,098
Gas taxes 14,443
Road maintenance and rehabilitation 7,718
Investment earnings (loss) (117,701)
Gain/(loss) on disposal of assets (149,770)
Total general revenues 7,003,901
CHANGE IN NET POSITION 2,310,517
NET POSITION, BEGINNING OF YEAR 28,768,143
NET POSITION, END OF YEAR $ 31,078,660
See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2022
Other
Governmental
General Funds Total
ASSETS
Cash and cash equivalents $ 2,015,115 $ 92,798 $ 2,107,913 Investments 11,744,237 ̶ 11,744,237 Receivables 119,408 ̶ 119,408 Lease receivable 182,539 ̶ 182,539 Receivables from other governments 1,178,725 2,459 1,181,184 Loans due from Successor Agency 9,730,824 ̶ 9,730,824 Total assets 24,970,848 95,257 25,066,105
LIABILITIES
Accounts payable 174,359 ̶ 174,359 Due to other governments 542,222 ̶ 542,222 Accrued liabilities 28,216 ̶ 28,216 Developer deposit 25,000 ̶ 25,000 Total liabilities 769,797 ̶ 769,797
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 60,201 ̶ 60,201 Deferred interest on Successor Agency loans 774,766 ̶ 774,766 Deferred lease revenue 953,496 ̶ 953,496 Total deferred inflows of resources 1,788,463 ̶ 1,788,463
FUND BALANCES
Non-spendable –
Noncurrent receivable 9,730,824 ̶ 9,730,824 Restricted: Streets and roads ̶ 95,257 95,257 Beach access repair 30,449 ̶ 30,449 Committed: Tioga beach 120,000 ̶ 120,000 OPEB Funding 142,609 ̶ 142,609 Contracts 620,171 ̶ 620,171 Unassigned 11,768,535 ̶ 11,768,535 Total fund balances 22,412,588 95,257 22,507,845
Total liabilities, deferred inflows of Resources and fund balances $ 24,970,848 $ 95,257 $ 25,066,105 See Notes to the Basic Financial Statements. 14
65 CITY OF SAND CITY
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
FUND BALANCES – TOTAL GOVERNMENTAL FUNDS $ 22,507,845
Amounts reported 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. 10,335,487 Amounts paid to the trust for other post-employment benefits in excess of the required contributions, the net OPEB asset, are not financial resources and therefore are not reported in the funds. 2,140,583 Other assets are not available to pay for the current period expenditures and therefore are deferred in the funds. 834,967 Deferred outflows and inflows of resources associated with net pension and OPEB are not financial resources and therefore are not reported in the funds:
Deferred outflows 1,518,392
Deferred inflows (3,214,577)
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. (3,044,037) NET POSITION $ 31,078,660
See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Other
Governmental
General Funds Total
REVENUES:
Property taxes $ 352,707 $ ̶ $ 352,707 Sales tax 3,557,590 ̶ 3,557,590 Transaction tax 3,039,904 ̶ 3,039,904 Transient occupancy tax 17,896 ̶ 17,896 Utility user’s tax 173,015 ̶ 173,015 Franchise taxes 108,098 ̶ 108,098 Business licenses 568,431 ̶ 568,431 Licenses and permits 72,685 ̶ 72,685 Fines, forfeits and penalties 8,689 689 9,378 Charges for current services 112,921 ̶ 112,921 Developer reimbursements 50,405 ̶ 50,405 Revenue from other agencies 390,497 22,161 412,658 Investment earnings (loss) (117,701) ̶ (117,701) Rental income 96,152 ̶ 96,152 Other revenue 244,136 ̶ 244,136 Total revenues 8,675,425 22,850 8,698,275
EXPENDITURES: Current:
General government 1,615,361 ̶ 1,615,361 Public safety 3,626,095 ̶ 3,626,095 Public works 914,175 ̶ 914,175 Planning 339,698 ̶ 339,698 Building 154,938 ̶ 154,938 Community development 165,831 ̶ 165,831 Parks 6,350 ̶ 6,350 Debt service:
Principal 29,633 ̶ 29,633 Interest and other charges 4,888 ̶ 4,888 Capital outlay 228,868 ̶ 228,868 Total expenditures 7,085,837 ̶ 7,085,837
EXCESS OF REVENUES OVER EXPENDITURES 1,589,588 22,850 1,612,438 OTHER FINANCING SOURCES (USES): Transfers in 15,228 ̶ 15,228 Transfers out ̶ (15,228) (15,228) Total other financing sources (uses) 15,228 (15,228) ̶
NET CHANGE IN FUND BALANCES 1,604,816 7,622 1,612,438
FUND BALANCES, BEGINNING OF YEAR 20,807,772 87,635 20,895,407 FUND BALANCES, END OF YEAR $ 22,412,588 $ 95,257 $ 22,507,845 See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
NET CHANGE IN FUND BALANCES $ 1,612,438
Amounts reported in the statement of activities are different because:
Governmental funds report capital outlay as expenditures.
However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. In the current period, these amounts are: Capital outlay 228,868 Current year depreciation (442,588) Disposals (333,612) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenue in the funds. (56,393)
Proceeds from financing provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position (221)
The repayment of the principal of long-term debt consumes the current financial resources of governmental funds. However, it has no effect on net assets. In the current period, the amount is: Principal payments on long-term debt 29,633 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Compensated absences 50,784 Current year OPEB cost difference 347,086 Current year pension cost difference 874,522 CHANGE IN NET POSITION $ 2,310,517
See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
STATEMENT OF FIDUCIARY NET POSITION (DEFICIT)
FOR THE YEAR ENDED JUNE 30, 2022
ASSETS
Cash and cash equivalents $ 934,513 Investments 1,283,123 Capital assets, net ̶ Non-depreciable 1,100,000 Total assets 3,317,636
LIABILITIES
Developer fees received in advance 1,455,000 Noncurrent liabilities:
Due within one year 545,000 Due in more than one year 12,645,824 Total liabilities 14,645,824
DEFERRED INFLOWS OF RESOURCES
Deferred ROPS revenue 553,312
NET POSITION (DEFICIT)
Enforceable obligations (11,881,500)
Total net position (deficit) $ (11,881,500)
See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION (DEFICIT) FOR THE YEAR ENDED JUNE 30, 2022
ADDITIONS: Property taxes $ 1,178,736 Interest income 563 Total additions 1,179,299
DEDUCTIONS:
Administrative expenses 48,990 Legal expenses 89,614 Contract services 21,396 Interest expense 120,736 Seaside settlement 364,522 Total deductions 645,258
NET INCREASE 534,041
NET POSITION, (DEFICIT) BEGINNING OF THE YEAR (12,415,541) NET POSITION, (DEFICIT) END OF THE YEAR $ (11,881,500)
See Notes to the Basic Financial Statements.
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CITY OF SAND CITY
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Sand City (the City), California have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s more significant accounting policies are described below.
Reporting Entity – The City is a Charter City operating under a Mayor-Council-City Manager form of government. As required by GAAP, these financial statements present the City (the primary government) and its component units. The City’s financial statements include one fiduciary component unitSuccessor Agency Trust Fund
Assembly Bill 1X 26 (“the Bill”) provided for the dissolution of all redevelopment agencies in the State of California. As allowed under the Bill, the City elected to serve as the Successor Agency to hold the assets until they are distributed to other units of state and local government. The Successor Agency Trust Fund meets the definition of a fiduciary component unit and is reported as a private-purpose trust fund. Separate financial statements are not available for the Successor Agency Trust Fund.
Basis of Presentation and Accounting – The basic financial statements include both government-wide and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or identifiable activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or identifiable activity. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or identifiable activity. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate fund based financial statements are provided for governmental funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The City has no proprietary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. The nonmajor funds are combined in a column in the fund financial statements.
The government-wide focus is more on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. The focus of the fund financial statements is on the major individual funds. Each presentation provides valuable information that can be analyzed and compared to enhance the usefulness of the information. 20 71
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus and Basis of Accounting – The government-wide and fiduciary 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 when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenue to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments, are recognized only when payment is due. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt are reported as other financing sources.
Ad valorem, franchise and sales tax revenues are recognized under the susceptible to accrual concept. Licenses and permits, charges for services, fines and forfeitures, contributions, and miscellaneous revenues are recorded as revenues when received in cash as the resulting receivable is immaterial. Investment earnings are recorded as earned since they are measurable and available. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance.
There are, however, essentially two types of these revenues. In one, monies must be expended for the specific purpose or project before any amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to the purpose of expenditure and are usually revocable only for failure to comply with the prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met.
The City reports the following major governmental fund – General Fund, accounts for the City’s primary services (Public Safety, Public Works, Parks, etc.) and is the primary operating unit of the City.
Additionally, the City reports the following fund type – Fiduciary Funds include the Successor Agency. This fund was established as a result of the dissolution of the Redevelopment Agency and is used to account for assets held by the City in a trustee capacity.
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value – The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The City uses valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. For the fiscal year ended June 30, 2022, the application of valuation techniques applies to the City’s financial statements has been consistent.
Cash, Cash Equivalents and Investments – The City follows the practice of pooling cash and investments of all funds. Investments of the pooled cash consist of deposits with the Local Agency Investment Fund and are accounted for at fair market value. Interest earned as a result of pooling is distributed to the appropriate funds utilizing a formula based on the average daily balance of cash of each fund. The City considers highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Receivables and Deferred Inflows of Resources – Receivables are amounts due representing revenues earned or accrued in the current period. Receivables which have not been remitted within 60 days subsequent to year end are offset by deferred inflows of resources, and accordingly have not been recorded as revenue in the governmental fund. When the revenue becomes available, the revenue is recognized in the governmental fund.
All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. The allowance is based on an assessment of the current status of individual accounts. At June 30, 2022, the allowance was estimated to be zero.
Capital Assets – Property, facilities, equipment and infrastructure purchased or acquired is carried at historical cost or estimated historical cost. Contributed fixed assets are recorded at acquisition value at the time received. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for equipment; $25,000 for facilities and improvements; $150,000 for infrastructure and all land; and an estimated useful life in excess of one year.
Property, facilities, equipment and infrastructure is depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 Years
Improvements 5–20 Years
Equipment 5–10 Years
Vehicles 8 Years
Furniture and Fixtures 10 Years
Infrastructure 20–50 Years
Deferred Outflows/Inflows of Resources – In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Compensated Absences – Unused paid time off (PTO), which includes vacation, sick, and comp time, may be accumulated up to 800 hours and is paid at the time of termination from City employment. Hours accumulated over the 800 hours are paid out as compensation at the end of each calendar year. PTO is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
Interfund Activity – During the course of operations, transactions occur between individual funds that result in amounts owed between funds, which are classified as “due to/from other funds.” Eliminations have been made on the government-wide statements for amounts due to/from within the governmental funds.
Long-Term Obligations – In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized in the current period.
In the fund financial statements, 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 financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Pensions – For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Other Postemployment Benefits (OPEB) – For purposes of measuring the net OPEB liability/(asset), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 23 74
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Net Position – The Statement of Net Position presents the City’s assets and deferred outflows of resources, and liabilities, and deferred inflows of resources with the difference reported as net position. Net position is reported in three categories. • Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds, notes and other debt attributable to the acquisition, construction, or improvement of those assets. • Restricted results when constraints placed on net positions use are either externally imposed or imposed by law through constitutional provisions or enabling legislation. • Unrestricted consist of net position not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
Fund Balances – Fund balance classifications are based primarily on the extent to which the City is bound to honor constraints on the use of the resources reported in each governmental fund.
The City reports the following classifications:
• Non-spendable – Non-spendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form, such as long-term receivables or (b) legally or contractually required to be maintained intact, such as a trust that must be retained in perpetuity.
• Restricted – Restricted fund balances are restricted when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.
• Committed – Committed fund balances are amounts that can only be used for specific purposes as a result of constraints imposed by the City Council. Committed amounts cannot be used for any other purpose unless the City Council removes those constraints by taking some type of action (passage of a resolution). Amounts in the committed fund balance classification may be used for other purposes with appropriate due process by the City Council. Committed fund balances differ from restricted balances because the constraints on their use do not come from outside parties, constitutional provisions or enabling legislation.
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) • Assigned – Assigned fund balances are amounts that are constrained by the City’s intent to be used for specific purpose, but are neither restricted nor committed. Intent is expressed by (a) the City Administrator or (b) the City Council. The City Council has the authority to remove or change the assignment of the funds with a simple majority vote. • Unassigned – This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds.
When restricted and other fund balance resources are available for use, it is the City’s policy to use restricted resources first, followed by committed, assigned and unassigned amounts, respectively.
Leases:
Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $10,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and the purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long term debt on the statement of net position.
Lessor: The City is a lessor for noncancellable leases of the desalination facility and cell tower site premises. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements. 25 76
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. • Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
• The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
Property Tax Levy, Collection and Maximum Rates – State of California (State) Constitution Article 13 provides for a maximum general property tax rate statewide of $1 per $100 of assessed value. Assessed value is calculated at 100% of market value as defined by the above referenced Article 13. The State Legislature has determined the method of distribution of receipts from $1 tax levy among counties, cities, schools and other districts. Counties, cities and school districts may levy such additional tax rates as necessary to provide for voter approved debt service.
The County of Monterey assesses properties, bills for and collects property taxes, as follows:
Secured Unsecured
Valuation dates January 1 January 1
Lien/levy dates July 1 July 1
Due dates 50% on November 1 July 1
50% on February 1
Delinquent as of December 10 (for November) August 31
April 10 (for February)
The term “Unsecured” refers to taxes on personal property other than land and buildings.
These taxes are secured by liens on the property being taxed.
Property tax revenues are recorded in governmental funds as receivables and deferred revenues at the time the tax levy is billed. Current year revenues are those collected within the current period or soon enough thereafter to pay current liabilities, generally within sixty days of year-end. No allowance is provided for delinquent taxes as the lien is considered an enforceable legal obligation.
26 77
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
Subsequent Events – Subsequent events have been evaluated through DATE, which is the date the financial statements were available to be issued.
Adoption of New Accounting Standards: In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized 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 standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
The City adopted the requirements of the guidance effective July 1, 2021 and has applied the provisions of this standard to the beginning of the period of adoption.
Beginning net position increased by $19,162 with the implementation of GASB Statement No. 87 when recording right-to-use lease assets and related leases liabilities. Due to the immaterial amount of this adjustment the change was run through the current year rather than shown as a restatement of net position.
In January 2020, GASB issued Statement No. 92 Omnibus 2020. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The adoption of this standard had no significant impact on the financial statements.
In June 2020, GASB issued Statement No. 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans–an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No.
32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. The adoption of this standard had no significant impact on the financial statements. 27 78
NOTE 2. CASH AND INVESTMENTS
Custodial Credit Risk-Deposits with Financial Institutions – 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 does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the provision, which 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. 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. California law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2022, $1,968,459 of the City’s bank balances of $2,218,459 was exposed to custodial credit risk as uninsured, but it’s collateralized by the pledging bank’s trust department not in the City’s name.
Custodial Credit Risk - Investments – The City’s investments consist of the State Treasurer’s Local Agency Investment Fund and certificates of deposit held with a local financial institution.
All investments are recorded at fair value. 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. The fair value of the pledged securities in the collateral pool must equal 110% of the total amount deposited by the public agencies. The investment of state pooled funds is governed by State law, by policies adopted by the Pooled Money Investment Board (PMIB) and by accepted norms for prudent fiduciary management of investments. PMIB funds may be invested in a wide range of interest-bearing securities, such as Treasury notes, prime commercial paper, certain California municipal and agency obligations, highly rated corporate bonds, obligations of such agencies as Fannie Mae, and negotiable certificates of deposit. Also allowed are time deposits in California banks, savings and loans, and credit unions that have not less than a “satisfactory” CRA rating. The value of each participating dollar equals the fair value divided by the amortized cost.
Investments at June 30, 2022 consisted of the following:
Local Agency Investment Fund $ 10,507,029
Certificates of Deposit 1,237,208
Total $ 11,744,237
As of June 30, 2022, all of the City’s investments had a maturity of less than one year.
The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute.
The State Treasurer’s Office audits the fund annually.
The fair value measurement for the Certificates of Deposit are level 1.
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. The City has no formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond those specified in the statues. 28 79
NOTE 2. CASH AND INVESTMENTS (Continued)
Credit Risk – This is the risk of loss due to the failure of the security issues or backer. The City’s policies to mitigate credit risk include:
• Limiting investment to the safest type of securities. As noted above, the California Government Code limits the investment vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally recognized statistical rating organization. The table below presents the rating for each investment type as provided by Standard & Poor’s except as noted.
• Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisors with which the City will do business.
The following table identifies the Standard & Poor’s credit quality rating for those investments requiring this disclosure as of June 30, 2022:
Rating A:
Negotiable Certificates of Deposit - $1,237,208
Not Rated:
State Local Agency Investment Fund - $10,507,029
NOTE 3. RECEIVABLES
Amounts other than leases receivable are aggregated into a single accounts receivable line. At June 30, 2022 for the City’s individual major funds and nonmajor fund in the aggregate, are as follows:
Other
Governmental
General Funds Total
Receivables: Accounts $ 100,912 $ ̶ $ 100,912 Interest 18,496 ̶ 18,496 Total $ 119,408 $ ̶ $ 119,408
Other Governments:
Sales tax $ 587,411 $ ̶ $ 587,411 Transaction tax 518,208 ̶ 518,208 Gas tax ̶ 2,459 2,459 Grants 73,106 ̶ 73,106 Total $ 1,178,725 $ 2,459 $ 1,181,184
29 80
NOTE 4. LOANS DUE FROM SUCCESSOR AGENCY
The Redevelopment Agency (the Agency) received loans from the City to pay its share of administrative expenses, to make payments on non-tax incremental borrowings, and to reimburse the City for payments made on Certificates of Participation in the principal amount of $1,934,012 for the Operating Expenditure Loan and $3,932,931 for the Seaside Loan. The Operating Expenditure Loan and Seaside Loan balances include $1,934,012 and $3,932,931 of principal and $1,692,046 and $717,068 of accrued interest, respectively. Upon dissolution of the Agency, these loans became the obligation of the Successor Agency. Balances as of June 30, 2022 are as follows:
Operating Expenses $ 3,626,058
Seaside Agreements 4,650,000
COP Reimbursement 1,454,766
Total $ 9,730,824
30 81
NOTE 5. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:
Additions
Balance and Deletions Balance
6/30/21 Transfers and Transfers 6/30/22
Capital assets not being depreciated:
Land $ 1,837,194 $ ̶ $ ̶ $ 1,837,194
Construction in progress 521,963 211,640 353,218 380,385 Total capital assets not being
depreciated 2,359,157 211,640 353,218 2,217,579
Capital assets being depreciated/amortized:
Infrastructure 5,209,014 ̶ ̶ 5,209,014
Land improvements 441,563 ̶ ̶ 441,563
Equipment 2,594,596 5,000 148,033 2,451,563
Right-to-use leased equipment – 93,621* ̶ 93,621
Vehicles 605,970 12,229 ̶ 618,199
Buildings 8,538,775 ̶ ̶ 8,538,775
Furniture and fixtures 114,514 ̶ ̶ 114,514
Total capital assets being
depreciated 17,504,432 110,850 148,033 17,467,249
Less accumulated depreciation/amortization:
Infrastructure 2,895,692 127,730 ̶ 3,023,421
Land improvements 435,753 3,170 ̶ 438,923
Equipment 2,430,714 44,613 74,017 2,504,934
Right-to-use leased equipment – 31,207 – 31,207
Vehicles 546,768 25,219 ̶ 571,987
Buildings 2,557,329 210,649 ̶ 2,767,978
Furniture and fixtures 114,514 ̶ ̶ 114,514
Total accumulated depreciation 8,980,770 442,588 74,017 9,349,341 Total capital assets being
depreciated – net 8,523,662 (331,738) 74,016 8,117,908
Capital assets – net $ 10,882,819 $ (120,098) $ 427,234 $ 10,335,487 * The addition is due to the implementation of GASB 87
Depreciation expense for the year ending June 30, 2022 was charged to functions/programs of the primary government as follows:
General government $ 12,700
Public safety 64,452
Public works 364,621
Parks 815
Total depreciation expense $ 442,588
31 82
NOTE 6. LEASES
Leases receivable – The City, acting as lessor, leases the desalination facility to California-American Water Company (CAW) and site premises to control and operate a cell tower on City owned land to Crown Castle International Corp under long-term, non-cancelable lease agreements. The leases expire at various dates through June 15, 2038. During the year ended June 30, 2022, the City recognized $71,084 and $28,068 in lease revenue and interest revenue, respectively, pursuant to these contracts. As of June 30, 2022, the City’s receivable for lease payments was $182,539. Also, the City has a deferred inflow of resources associated with these leases that will be recognized over the lease terms. As of June 30, 2022, the balance of deferred inflow of resources was $953,496.
The future minimum lease payments to be received as of June 30, are as follows:
Principal Interest Total
2023 $ 15,581 $ 5,676 $ 21,257
2024 20,413 5,025 25,438
2025 23,218 4,177 27,395
2026 24,100 3,295 27,395
2027 25,017 2,378 27,395
Thereafter 74,210 9,591 83,801
Total $ 182,539 $ 30,142 $ 212,681
Lease payable – The City leases police radio equipment under long term, non-cancelable lease agreement. The lease expires August 15, 2023. The annual principal and interest payments are $34,520 with interest at 5.22% per annum.
The future minimum lease payments as of June 30, are as follows:
Principal Interest Total
2023 $ 31,180 $ 3,340 $ 34,520
2024 32,808 1,712 34,520
Total $ 63,988 $ 5,052 $ 69,040
Right-to-use asset acquired through outstanding leases are shown below:
Equipment $ 93,621
Less: Accumulated amortization 31,207
Total $ 62,414
32 83
NOTE 7. LONG–TERM LIABILITIES
General long-term liability balances and transactions for the fiscal year ended June 30, 2022 are as follows: Balance Balance
Beginning End Due Within
Of the Year Additions Reductions of Year One Year
Lease payable $ 93,400 $ 221 $ 29,633 $ 63,988 $ 31,180 Compensated absences 678,508 ̶ 50,784 627,724 124,626
Net pension liability 5,079,862 – 2,727,537 2,352,325 ̶ Total $5,851,770 $ 221 $2,807,954 $3,044,037 $ 155,806
In prior years, the General Fund has been used to liquidate compensated absences.
NOTE 8. INTERFUND ACTIVITY
Transfers between funds during the year were as follows:
Transfers In Transfers Out
General fund $ 15,228 $ ̶ Special revenue fund ̶ 15,228 Total $ 15,228 $ 15,228
Transfers were made for expenditures covered by gas tax and traffic safety monies. 33 84
NOTE 9. PENSION PLAN
General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Miscellaneous
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @55, 3% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2% - 2.7% 1.0% - 2.5% Required employee contribution rates 7% and 8% 6.75%
Required employer contribution rates 10.880% and 15.250% 7.590% Safety
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @ 50, 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50-57
Monthly benefits, as a % of eligible
compensation 3.0% 2.0% to 2.7%
Required employee contribution rates 9% 13%
Required employer contribution rates 19.250% and 21.790% 13.130% 34 85
NOTE 9. PENSION PLAN (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan were as follows:
Miscellaneous Safety
Contributions $ 380,620 $ 448,841
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:
Proportionate Share
of Net Pension Liability
Miscellaneous $ 1,335,879
Safety 1,016,446
Total Net Pension Liability $ 2,352,325
The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2022 and 2021 was as follows:
Miscellaneous Safety
Proportion – June 30, 2021 0.02435% 0.02234%
Proportion – June 30, 2022 0.02470% 0.01879%
Change - Increase (Decrease) 0.00035% (0.00355%)
35 86
NOTE 9. PENSION PLAN (Continued)
For the year ended June 30, 2022, the City recognized pension income of $29,447. Pension income is allocated to the functions based on full time equivalents. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred Outflows Inflows
of Resources of Resources
Difference between Expected and Actual Experience $ 323,464 $ ̶ Difference between Projected and Actual Investment
Earnings ̶ 1,771,133
Change in Employer’s Proportion 232,737 ̶
Differences between Employer’s Contributions and Proportionate Share of Contributions ̶ 190,802 Pension Contributions Made Subsequent to Measurement Date 845,075 ̶ Total $ 1,401,276 $ 1,961,935
The $845,075 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended June 30
2023 $ (250,189)
2024 $ (298,318)
2025 $ (368,479)
2026 $ (488,748)
36 87
NOTE 9. PENSION PLAN (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous/Safety
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15% Inflation 2.50% Salary Increases Varies by entry age and service Mortality Derived using CalPERS’
membership data for all
funds. The mortality rate
includes 15 years of projected on- going mortality improvements using 90% scale MP 2016 published by the
Society of Actuaries.
Post Retirement Benefit Contract Cola up to 2.5%
Increase Until Purchasing Power
Protection Allowance Floor
On Purchasing Power applies. 2.5% thereafter.
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study can be found on the CalPERS website.
Discount Rate –The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary.
The long-term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 37 88
NOTE 9. PENSION PLAN (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations as well as the expected pension fund cash flows.
Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:
Assumed
Asset Real Return Real Return
Asset Class Allocation Years 1 - 10(a) Years 11+(b)
Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets 0% 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Estate 13% 3.75% 4.93%
Liquidity 1% (0)% (.92)%
Total 100%
(a) An expected inflation of 2.0% used for this period. (b) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $ 2,861,826 $ 2,709,247
Current Discount Rate 7.15% 7.15%
Net Pension Liability $ 1,335,879 $ 1,016,446
1% Increase 8.15% 8.15%
Net Pension Liability $ 74,399 $ (373,981)
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 38 89
NOTE 10. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457, through the California Public Employee’s Retirement System (CalPERS) 457 Deferred Compensation Program. All employees of the City are eligible for the plan. Participation in the plan is optional. The funds of the plan are invested by the City, through CalPERS, as directed by and on behalf of the employees in various investment options.
NOTE 11. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) Plan Description – The City contracts with the Public Employees Retirement System (PERS) under the PERS Care Health Plan to provide benefits of the Meyer-Geddes State Employees’ Medical and Hospital Care Act per Government Code Section 22850. The Plan provides employees and option members (City Council members and City Attorney) who retire directly from the City under CalPERS continuation of medical insurance benefits for them, one dependent and surviving spouse.
The City participates in the California Employer’s Retiree Benefit Trust (CERBT) Fund, which is administered by CalPERS. CERBT is a tax‐qualified irrevocable trust organized under Internal Revenue Code Section 115 and established to prefund retiree healthcare benefits. CERBT, an agent multiple‐employer trust, issues a publicly available financial report including GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, disclosure information in aggregate with other CERBT participating employers.
That report can be obtained from the CalPERS website at www.calpers.ca.gov. The plan provides health benefits to all retired employees.
The Plan can be amended by action of the City Council on passing a resolution. The City pays premiums up to the PEMHCA Other Northern California PERS Care single party non-Medicare and Medicare eligible premiums at 100% for retirees and 50% for dependents and surviving spouses. For the fiscal year 2022, the non-Medicare premium was $995 and the Medicare eligible was $382. Retirees pay blended medical premiums rather than expected medical costs by age and gender and active premiums subsidize non-Medicare eligible retiree medical costs as implied subsidies.
Employees Covered – As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the plan:
Active employees 23
Inactive employees or beneficiaries currently receiving benefits 9 Inactive employees entitled to, but not yet receiving benefits 11 Total 43
Contributions – The obligations of the Plan members and the City are established by action of the City Council pursuant to the passing of a resolution. The annual contribution is based on the actuarially determined contribution, which is paid to the California Employer’s Retiree Benefit Trust Program (CERBT). Cash subsidy and implied subsidy benefit payments and PEMCHA administrative fees are currently paid with City assets on a pay-as-you-go basis and are not reimbursed by CERBT. For the fiscal year ended June 30, 2022, the City’s pay-as-you-go payments were $80,773 and the estimated implied subsidy was $5,085 resulting in total payments of $85,858.
39 90
NOTE 11. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued) Net OPEB Liability/(Asset) – The City’s net OPEB liability/(Asset) was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability/(Asset) was determined by an actuarial valuation dated June 30, 2021 based on the following actuarial methods and assumptions:
Actuarial Assumptions:
Discount Rate 6.75%
Inflation 2.75%
Salary Increases 3.00% annually
Investment Rate of Return 6.75%
Mortality CalPERS 1997-2015 Experience Study
Retirement CalPERS 1997-2015 Experience Study
Healthcare Trend Rate 7.25% decreasing to 4.00%
The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Target Long-term Expected Real
Asset Class Allocation Rate of Return
Global Equity 59% 4.82%
Fixed Income 25% 1.47%
TIPS 5% 1.29%
REITs 8% 3.76%
Commodities 3% 0.84%
100%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. 40 91
NOTE 11. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued) Changes in the Net OPEB Liability/ (Asset) – The changes in the net OPEB liability/(Asset) for the Plan are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 $ 2,421,176 $ 3,615,739 $ (1,194,563) Changes recognized for measurement period:
Service cost 181,403 ̶ 181,403
Interest 172,776 ̶ 172,776
Difference between expected and actual
experience (183,940) ̶ (183,940)
Changes of assumptions (37,249) ̶ (37,249)
Contributions - employer ̶ 86,077 (86,077)
Net investment income ̶ 994,521 (994,521)
Benefit payments (outside trust) (85,858) (85,858) ̶
Administrative expense ̶ (1,588) 1,588
Net Changes $ 47,132 $ 993,152 $ (946,020)
Balance at June 30, 2021 $ 2,468,308 $ 4,608,891 $ (2,140,583) Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Discount Rate – The following presents the net OPEB liability/(Asset) of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2021:
Current
1% Decrease Discount Rate 1% Increase
(5.75%) (6.75%) (7.75%)
Net OPEB Liability/ (Asset) $(1,841,211) $(2,140,583) $(2,392,263) Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates – The following presents the net OPEB liability/(Asset) of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2021:
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability/ (Asset) $(2,319,147) $(2,140,583) $(1,979,149) 41 92
NOTE 11. POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (Continued) OPEB Plan Fiduciary Net Position – CERBT issues a publicly available financial report that may be obtained from California Employer’s Retiree Benefit Trust Program at the CalPERS website.
Recognition of Deferred Outflows and Deferred Inflows of Resources – Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual earnings on OPEB plan investments 5 years All other amounts Expected average remaining
service lifetime (EARSL)
(6.2 years at June 30, 2021)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the fiscal year ended June 30, 2022, the City recognized OPEB expense/(income) of $(229,970). As of fiscal year ended June 30, 2022, the City reported deferred outflows/inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflow of Inflow of
Resources Resources
OPEB contributions subsequent to measurement date $ 117,116 $ ̶ Changes of assumptions ̶ 116,716 Net difference between projected and actual earnings
on OPEB plan investments ̶ 532,352
Difference between expected and actual experience ̶ 603,574 Total $ 117,116 $ 1,252,642
The $117,116 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2023. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:
Deferred
Fiscal Year Outflows/(Inflows)
Ended June 30: Of Resources
2023 $(326,723)
2024 $(319,856)
2025 $(323,636)
2026 $(240,058)
2027 $ (38,740)
Thereafter $ (3,629)
42 93
NOTE 12. JOINTLY GOVERNED ORGANIZATIONS
The City participates on the Boards of Community Human Services, a joint powers agency, Monterey Regional Waste Management District, the Monterey Peninsula Water Management District, Monterey Regional Water Pollution Control Agency, Monterey Peninsula Regional Water Authority, Monterey One Water, Association of Monterey Bay Area Governments, Transportation Agency for Monterey County, Seaside Groundwater Basin Watermaster, Seaside/Sand City Chamber of Commerce, the Monterey Peninsula Chamber of Commerce, League of California Cities, Monterey County Convention and Visitor’s Bureau, Monterey County Business Council, Monterey County Mayor’s Association, and Monterey Bay Area Self Insurance Authority. The Boards of these entities are comprised of representatives from local municipalities, districts, and unincorporated areas. The City made various disbursements to the organizations in the amount of $582,797 for the fiscal year ended June 30, 2022.
NOTE 13. RISK FINANCING
The City is exposed to various risks of loss related to torts, thefts, damage to, or destruction of assets; errors and omissions; injuries to workers; and natural disasters. These risks are covered by a combination of commercial insurance purchased from independent third parties and participation in the Monterey Bay Area Self Insurance Authority (MBASIA), which is a public entity risk pool. There have not been any significant reductions in insurance coverage as compared to the previous year. Settled claims from these risks have not exceeded commercial coverage for the past three fiscal years.
MBASIA was formed under a joint powers agreement (JPA) pursuant to California Government Code Section 6500 et seq. effective July 1, 1982. MBASIA is administered by a Board of Directors consisting of thirteen members appointed by the cities participating. The Board controls the operations of the JPA, including selection of management and approval of operating budgets, independent of any influence by member cities beyond their representation on the Board. Each member city pays a premium commensurate with the amount of predicted losses and shares surpluses and deficits proportionate to their participation in the JPA.
NOTE 14. COMMITMENTS AND CONTINGENCIES
In the fiscal year ending June 30, 2022, the City has various service and project contracts totaling $1,007,274, of which $620,171 on contract commitments still remained as of June 30, 2022. 43 94
NOTE 15. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Sand City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local government. On October 18, 2011, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number SC-11-104. Accordingly, the City established the Successor Agency Trust fund, a private-purpose trust fund, which is a fiduciary type fund.
Subject to the control of an established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution. In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the Successor Agency trust under the requirements of the Bill. On November 16, 2022, the Successor Agency filed a petition for writ of mandate against the California Department of Finance for the repayment of a loan to the City that the Successor Agency believes is an enforceable obligation, but which has been denied by the California Department of Finance. This dispute will be resolved by the court.
Following are disclosures specific to the Successor Agency Trust Funds:
NOTE A. DEPOSITS AND INVESTMENTS
Custodial Credit Risk-Deposits – 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 does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the provision, which 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. 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. California law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2022, $684,513 of the Fiduciary Fund’s bank balances of $934,513 was exposed to custodial credit risk as uninsured, but it’s collateralized by the pledging bank’s trust department not in the City’s name. All cash held by the Fiduciary Fund must be used to repay enforceable obligations.
44 95
NOTE 15. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) NOTE A. DEPOSITS AND INVESTMENTS (Continued)
Custodial Credit Risk Investments – The Fiduciary Fund investments consist of money market funds and certificates of deposit held with various financial institutions. All investments are recorded at fair value. 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. The fair value of the pledged securities in the collateral pool must equal 110% of the total amount deposited by the public agencies. Investments at June 30, 2022 consisted of the following:
Money Market Funds $ 223,580
Certificates of Deposit 1,059,543
Total $ 1,283,123
As of June 30, 2022, all of the Fiduciary Fund’s investments had a maturity of less than one year.
The fair value measurement for the Certificates of Deposit are level 1. The Money Market Funds are not subject to fair value hierarchy.
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. The City has no formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond those specified in the statues.
Credit Risk – This is the risk of loss due to the failure of the security issues or backer. The City’s policies to mitigate credit risk include:
• Limiting investment to the safest type of securities. As noted above, the California Government Code limits the investment vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally recognized statistical rating organization. The table below presents the rating for each investment type as provided by Standard & Poor’s except as noted.
• Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisors with which the City will do business.
The following table identifies the Standard & Poor’s credit quality rating for those investments requiring this disclosure as of June 30, 2022:
Rating A:
Negotiable Certificates of Deposit - $1,059,543
Not Rated:
Money Market Fund - $223,580
45 96
NOTE 15. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) NOTE B. CAPITAL ASSETS
Balance Balance
6/30/21 Additions Deletions 6/30/22
Capital assets not being depreciated –
Land $ 1,100,000 $ – $ – $ 1,100,000
Total capital asset not being depreciated 1,100,000 – – 1,100,000 Capital assets being depreciated:
Land improvements 182,631 – – 182,631
Sculpture 40,218 – – 40,218
Total capital assets being depreciated 222,849 – – 222,849 Less accumulated depreciation for:
Land improvements 182,631 – – 182,631
Sculpture 40,218 – – 40,218
Total accumulated depreciation 222,849 – – 222,849
Total capital assets being
depreciated—net ̶ – – –
Capital assets—net $ 1,100,000 $ – $ – $ 1,100,000
NOTE C. DEVELOPER FEES RECEIVED IN ADVANCE
The former Redevelopment Agency entered into a Disposition and Development Agreement (DDA) with a developer that required the developer to pay certain negotiation fees. In the event that the DDA is terminated by either party, the DDA requires a portion of the fees in the amount of $1,455,000 be refunded to the developer. The fees subject to refund will not be earned until the property connected with the DDA is conveyed to the developer, at which time the fees will be recognized as revenue.
NOTE D. LONG–TERM DEBT
Taxable Tax Allocation Bonds, 2008 Series B – Taxable Tax Allocation Bonds, 2008 Series B in the amount of $2,135,000 were issued January 30, 2008 at a discount of $50,916, to help finance redevelopment activities within and for the benefit of the Sand City Redevelopment Project. The Bonds consist of Term Bonds as follows: $465,000 at a 4.75% interest rate, due November 1, 2013, $720,000 at a 5.50% interest rate, due November 1, 2018 and $950,000 at a 5.75% interest rate, due November 1, 2023. Interest on the Bonds is payable semi-annually on each May 1 and November 1, commencing May 1, 2008. All Bonds are subject to mandatory redemption, in part by lot, from sinking account payments scheduled to begin November 1, 2010 and ending November 1, 2023 at a redemption price equal to the principal amount thereof to be redeemed, together with interest accrued thereon to the date fixed for redemption. The Bonds are payable solely from tax increment revenue, which has been pledged for repayment of the Bonds.
2017 Subordinate Tax Allocation Refunding Bonds – 2017 Subordinate Tax Allocation Refunding Bonds in the amount of $4,690,000 were issued August 10, 2017 to advance refund the Tax Allocation Bonds, 2008 Series A bonds. The Bonds consist of coupon bonds with a price of $115,000 at an interest rate of 2.85%. Interest on the Bonds is payable semi-annually on each May 1st and November 1st, commencing November 1, 2017.
46 97
NOTE 15. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) NOTE D. LONG–TERM DEBT (Continued)
The Bonds are subject to mandatory sinking fund redemption in part by lot on November 1, 2017, and on each November 1st thereafter, to and including November 1, 2027. The Bonds are not subject to optional redemption prior to maturity. The Bonds are payable solely from tax increment revenue, which has been pledged for repayment of the Bonds.
Loans from the City – The former Redevelopment Agency received loans from the City to pay its share of administrative expenses and make payments on non-tax increment borrowings. The City accrued interest at a rate of 7% on these advances. The Successor Agency has prepared a repayment schedule in accordance with Health and Safety Code Section 34191.4, which was submitted to both the Oversight Board for the County of Monterey and the California Department of Finance. In the year ending June 30, 2013, interest on these loans was recalculated based on the average Local Agency Investment Fund rate of return for the period in which the loans existed as required by Assembly Bill 1484, on the principal amount of $1,934,012 for the Operating Expenditure Loan and $3,932,931 for the Seaside Loan. The Operating Expenditure Loan and Seaside Loan balances include $1,934,012 and $3,932,931 of principal and $1,692,046 and $717,068 of accrued interest, respectively.
Reimbursements Payable – The City issued Certificates of Participation (Certificates) to refinance certain real property legally owned by the former Redevelopment Agency. Under a Reimbursement Agreement with the City, the former Redevelopment Agency agreed to reimburse the City for all the Base Rental Payments made by the City to the Trustee of Certificates. The Reimbursements were to be made from available monies of the former Redevelopment Agency; therefore, no formal repayment schedule is in place at this time.
Long-term debt balances and transactions for the fiscal year ended June 30, 2022 are as follows:
Balance Balance Due Within
6/30/21 Additions Reductions 6/30/22 One Year
Bonds, loans and
reimbursements:
2008 Series B $ 600,000 $ – $ 190,000 $ 410,000 $ 200,000 2017 Subordinate Tax
Allocation Refunding
Bonds 3,385,000 – 335,000 3,050,000 345,000
Subtotal 3,985,000 – 525,000 3,460,000 545,000
Loans from the City:
Operating Expenditures 3,626,058 – – 3,626,058 –
Seaside 4,650,000 – – 4,650,000 –
Subtotal 8,276,058 – – 8,276,058 –
Reimbursement due to City 1,454,766 – – 1,454,766 –
Total bonds, loans and
reimbursement $ 13,715,824 $ – $ 525,000 $ 13,190,824 $ 545,000 47 98
NOTE 15. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) NOTE D. LONG–TERM DEBT Continued)
Annual debt service requirements to maturity are as follows:
Fiscal Series B Bonds 2017 Refunding Bonds
Year Ended
June 30 Principal Interest Principal Interest
2023 200,000 23,862 345,000 82,009
2024 210,000 – 495,000 70,039
2025 – – 680,000 53,295
2026 – – 695,000 33,701
2027 – – 720,000 13,538
2028 – – 115,000 1,639
$ 410,000 $ 23,862 $ 3,050,000 $ 254,221
NOTE E. DEFERRED ROPS REVENUE
The deferred ROPS revenue represents Real Property Tax Transfer Funds (RPTTF) received in advance for future obligation payments. The revenue will be recognized in the period in which the obligation payments are made. At June 30, 2022, this amount was $553,312.
NOTE 16. AUTHORITATIVE PRONOUNCEMENTS ISSUED BUT NOT YET ADOPTED In May 2019, the GASB issued GASB Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The effective date of this Statement is for fiscal year ending June 30, 2023. At this time the City is not certain of the effect the adoption of Statement No. 96 will have on the accompanying financial statements.
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022. At this time the City is not certain of the effect the adoption of Statement No. 96 will have on the accompanying financial statements. 48 99
NOTE 16. AUTHORITATIVE PRONOUNCEMENTS ISSUED BUT NOT YET ADOPTED (Continued) On April 2022, GASB issued GASB Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements of this Statement that are effective as follows:
• The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance. • The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. • The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by the topic.
In June 2022, GASB issued GASB Statement No. 101, Compensated Absences: The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. At this time the City is not certain of the effect the adoption of Statement No. 101 will have on the accompanying financial statements.
49 100
REQUIRED
SUPPLEMENTARY INFORMATION
101
CITY OF SAND CITY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL – GENERAL
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts Actual Variance With
Original Final Amounts Final Budget
REVENUES:
Property taxes $ 304,100 $ 296,200 $ 352,707 $ 56,507 Sales tax 3,058,000 3,415,000 3,557,590 142,590 Transaction tax 2,483,000 2,990,000 3,039,904 49,904 Transient occupancy tax ̶ 15,000 17,896 2,896 Utility user’s tax 140,000 165,000 173,015 8,015 Franchise taxes 91,400 105,500 108,098 2,598 Business licenses 495,500 577,200 568,431 (8,769) Licenses and permits 116,570 109,770 72,685 (37,085) Fines, forfeits and penalties 4,900 8,300 8,689 389 Charges for current services 397,700 140,650 112,921 (27,729) Developer reimbursements 100,000 50,000 50,405 405
Revenue from other agencies 803,300 710,510 390,497 (320,013) Investment earnings (loss) 65,000 30,700 (117,701) (148,401) Rental income 867,200 867,200 96,152 (771,048) Other revenue 33,450 247,650 244,136 (3,514) Total revenues 8,960,120 9,728,680 8,675,425 (1,053,255) EXPENDITURES:
Current:
General government 1,578,605 1,675,033 1,615,361 59,672 Public safety 3,625,720 3,737,140 3,626,095 111,045 Public works 1,132,260 1,093,625 914,175 179,450 Planning 458,985 353,270 339,698 13,572 Building 310,300 203,800 154,938 48,862 Community development 160,800 138,000 165,831 (27,831) Parks 6,500 16,500 6,350 10,150 Debt Service:
Principal 29,530 29,530 29,633 (103) Interest and other charges 5,000 5,000 4,888 112 Capital outlay 752,600 852,600 228,868 623,732 Total expenditures 8,060,300 8,104,498 7,085,837 1,018,661
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 889,820 1,624,182 1,589,588 (34,594) OTHER FINANCING SOURCES (USES): Transfer in ̶ ̶ 15,228 15,228 Total other financing
sources (uses) ̶ ̶ 15,228 15,228
NET CHANGE IN FUND BALANCE $ 899,820 $ 1,624,182 $ 1,604,816 $ (19,366) See Accompanying Notes to Required Supplementary Information. 50 102
CITY OF SAND CITY
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
NOTE 1. BUDGETARY DATA
The City legally adopts an annual budget for the General Fund. The City adopts the budget before June 30 for each ensuing fiscal year.
Budgets submitted to the Council include both proposed appropriations and the means of financing them. A mid-year budget review is performed and the budget is amended by passage of a resolution. Additional appropriations or interfund transfers not included in the amended budget resolution must be approved by the City Council.
All budgets have been prepared on a basis consistent with generally accepted accounting principles, which is the same basis of accounting as used to reflect actual revenues and expenditures.
Appropriations lapse at each fiscal year end and then are re-budgeted for the coming fiscal year.
Encumbrance accounting is not used.
51 103
CITY OF SAND CITY
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Last 10 Years*
FOR THE YEAR ENDED JUNE 30, 2022
Proportionate Plan fiduciary
share of the net net position as
Proportionate pension liability a percentage
Proportion of share of the as percentage of Plan’s of the total Measurement the net pension net pension Covered covered fiduciary pension Period liability liability payroll payroll net position liability 2014
Miscellaneous Plan 0.03280% $ 2,041,105 $ 979,700 208.34% $ 10,639,461,174 81.15% Safety Plan 0.02186% $ 1,360,244 $ 1,018,285 133.58% $ 13,968,041,341 78.83% 2015
Miscellaneous Plan 0.07699% $ 2,112,302 $ 957,621 220.58% $ 10,896,036,068 79.89% Safety Plan 0.03227% $ 1,329,846 $ 1,095,485 121.39% $ 14,011,269,803 77.27% 2016
Miscellaneous Plan 0.07245% $ 2,516,961 $ 973,812 258.46% $10,923,476,287 75.87% Safety Plan 0.04925% $ 1,744,395 $ 1,179,383 147.91% $13,782,056,004 72.69% 2017
Miscellaneous Plan 0.07161% $ 2,823,013 $ 964,572 292.67% $12,074,499,781 75.39% Safety Plan 0.03447% $ 2,059,738 $ 1,306,040 157.71% $15,169,595,595 71.74% 2018
Miscellaneous Plan 0.06325% $ 2,383,530 $ 968,615 246.08% $13,122,440,092 77.69% Safety Plan 0.03322% $ 1,949,412 $ 1,346,212 144.81% $13,782,056,004 72.69% 2019
Miscellaneous Plan 0.02470% $ 2,531,795 $ 980,084 258.32% $13,979,687,268 77.73% Safety Plan 0.02104% $ 2,155,679 $ 1,517,774 142.03% $ 17,199,726799 73.37% 2020
Miscellaneous Plan 0.02435% $ 2,648,872 $ 981,708 269.82% $14,702,361,183 77.71% Safety Plan 0.02234% $ 2,430,990 $ 1,523,485 159.57% $18,120,140,152 73.12% 2021
Miscellaneous Plan 0.02470% $ 1,335,879 $ 997,179 133.97% $18,065,791,524 90.49% Safety Plan 0.01879% $ 1,016,446 $ 1,521,503 66.81% $22,700,862,352 86.61% Notesto Schedule:
Benefit Changes:
In 2015, benefit terms were modified to base public safety employee pensions on a final three-year average salary instead of a final five-year average salary.
The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions:
In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees.
In 2016, the discount rate was changed from 7.50 percent (net of administrative expense) to 7.65 percent to correct for an adjustment to exclude administrative expense.
In 2017, the discount rate was changed from 7.65 percent to 7.15 percent.
In 2018, demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and review of Actuarial Assumptions December 2017.
* Fiscal year 2015 was the 1st year of implementation; therefore, only eight years are shown. 52 104
CITY OF SAND CITY
SCHEDULE OF CONTRIBUTIONS – PENSIONS
Last 10 Years*
FOR THE YEAR ENDED JUNE 30, 2022
Contractually Contributions in
required relation to the Contributions as
contribution actuarially Contribution percentage of
Fiscal (actuarily determined deficiency Covered covered Year determined) contributions (excess) payroll payroll 2015
Miscellaneous Plan $ 232,159 $ 232,159 $ – $ 957,621 24.24% Safety Plan $ 214,913 $ 214,913 $ – $ 1,095,485 19.62%
2016
Miscellaneous Plan $ 272,359 $ 272,359 $ – $ 973,812 27.97% Safety Plan $ 213,436 $ 213,436 $ – $ 1,179,383 18.10%
2017
Miscellaneous Plan $ 284,073 $ 284,073 $ – $ 964,572 29.45% Safety Plan $ 274,606 $ 274,606 $ – $ 1,306,040 21.03%
2018
Miscellaneous Plan $ 602,399 $ 602,399 $ – $ 968,615 62.19% Safety Plan $ 404,055 $ 404,055 $ – $ 1,346,212 30.01%
2019
Miscellaneous Plan $ 322,974 $ 322,974 $ – $ 980,084 32.95% Safety Plan $ 367,990 $ 367,990 $ – $ 1,517,774 24.25%
2020
Miscellaneous Plan $ 360,507 $ 360,507 $ – $ 981,707 36.72% Safety Plan $ 392,595 $ 392,595 $ – $ 1,523,485 25.77%
2021
Miscellaneous Plan $ 380,620 $ 380,620 $ – $ 997,179 38.17% Safety Plan $ 448,851 $ 448,851 $ – $ 1,521,503 29.50%
2022
Miscellaneous Plan $ 409,249 $ 409,249 $ ̶ $ 983,125 41.63% Safety Plan $ 435,826 $ 435,826 $ ̶ $ 1,361,413 32.01%
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year are as follows:
FYE 2014-2015 - June 30, 2012 actuarial valuation report FYE 2015-2016 - June 30, 2013 actuarial valuation report FYE 2016-2017 - June 30, 2014 actuarial valuation report FYE 2017-2018 - June 30, 2015 actuarial valuation report FYE 2018-2019 - June 30, 2016 actuarial valuation report FYE 2019-2020 - June 30, 2017 actuarial valuation report FYE 2020-2021 - June 30, 2018 actuarial valuation report FYE 2021-2022 - June 30, 2019 actuarial valuation report Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level percentage of pay, direct rate smoothing Remaining Amortization Periods Differs by employer rate plan, but not more than 30 years.
Asset Valuation Method Market value of assets
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Discount Rate 7.00% (net of administrative expenses)
Mortality Derived using CalPERS’ Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.
* Fiscal year 2015 was the 1st year of implementation; therefore, only eight years are shown. 53 105
CITY OF SAND CITY
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY/(ASSET) AND RELATED RATIOS For the Measurement Periods Ended June 30
Measurement Period 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost $ 181,403 $ 180,004 $ 248,439 $ 241,203 $ 234,000 Interest on the total OPEB liability 172,776 158,964 202,924 178,950 157,000 Actual and expected experience difference (183,940) – (858,688) – ̶ Changes in assumptions ̶ (52,022) (95,578) – ̶
Changes in benefit terms (37,249) ̶ ̶ – ̶
Benefit payments (85,858) (81,571) (78,257) (66,192) (83,000) Net change in total OPEB liability 47,132 205,375 (581,160) 353,961 308,000 Total OPEB liability – beginning 2,421,176 2,215,801 2,796,961 2,443,000 2,135,000 Total OPEB liability – ending (a) 2,468,308 2,421,176 2,215,801 2,796,961 2,443,000 Plan Fiduciary Net Position
Contribution - employer 86,077 81,784 78,451 316,453 2,733,000 Net investment income 994,521 123,517 203,252 224,625 173,000 Benefit payments (85,858) (81,571) (78,257) (66,192) (83,000) Administrative expense (1,588) (1,951) (900) (5,502) (1,000) Net Change in plan fiduciary
net position 993,152 121,779 202,546 469,384 2,822,000
Plan fiduciary net position
– beginning 3,615,739 3,493,930 3,291,384 2,822,000 ̶
Plan fiduciary net position
– ending (b) $ 4,608,891 $ 3,615,709 $ 3,493,930 $ 3,291,384 $ 2,822,000 Net OPEB liability/(asset)
– ending (a)-(b) $ (2,140,583) $ (1,194,533) $ (1,278,129) $ (494,423) $ (379,000) Plan fiduciary net position as percentage of the
total OPEB liability 186.72% 149.34% 157.68% 117.68% 115.51% Covered-employee payroll $ 2,405,581 $ 2,505,193 $ 2,497,858 $ 2,314,827 $ 2,270,612 Net OPEB liability/(asset) as a percentage of
covered-employee payroll 88.98% 47.68% 51.17% 21.36% 16.69% Notes to Schedule:
Fiscal year 2017 was the 1st year of implementation; therefore, only five years are shown.
Future years' information will be displayed up to 10 years as information becomes available. 54 106
CITY OF SAND CITY
SCHEDULE OF CONTRIBUTIONS – OPEB
Last 10 Years*
FOR THE YEAR ENDED JUNE 30, 2022
Fiscal Year Ended June 30 2022 2021 2020 2019 2018
Actuarially Determined Contribution (ADC) $ 79,024 $ 78,752 $ 239,000 $ 232,000 $ 225,000 Contributions in relation to the ADC (117,116) (86,077) (81,784) (78,451) (83,000) Contribution deficiency (excess) $ (38,092) $ (7,325) $ 157,216 $ 153,549 $ 142,000 Covered-employee payroll $ 2,282,066 $ 2,405,581 $ 2,505,193 $ 2,497,858 $ 2,314,827 Contributions as a percentage of
covered-employee payroll 5.13% 3.58% 3.26% 3.14% 3.59%
Notes to Schedule:
*Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022 were from the June 30, 2019 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal, Level % of pay
Amortization Method Level % of pay
Amortization Period 15-year fixed period for 2021/2022
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75%
General Inflation 2.75%
Investment Rate of Return 6.75%
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076.
Medicare – 6.3% for 2021, decreasing to an ultimate
rate of 4.0% in 2076.
Mortality CalPERS 1997-2015 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2019
Fiscal year 2018 was the 1st year of implementation; therefore, only five years are shown. Future years' information will be displayed up to 10 years as information becomes available. 55 107
REPORT REQUIRED BY
GOVERNMENT AUDITING STANDARDS
108
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
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and City Council Members
City of Sand City
Sand City, 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, each major fund, and the aggregate remaining fund information of the City of Sand City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City of Sand City’s basic financial statements, and have issued our report thereon dated DATE.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Sand City’s internal control over financial reporting (internal control) as basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Sand City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Sand 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. 56 109
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Sand 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 financialstatements. 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.
CliftonLarsonAllen LLP
Salinas, California
DATE
57 110
AGENDA ITEM
9A.
Consideration of City RESOLUTION to
Amend Conditional Use Permit 630
Authorizing Design Change of Exterior
Wall and Removal of Upper-Level Deck at
1880 Park Avenue {this application has
been withdrawn; no action required by
the City Council}
111
112
AGENDA ITEM
10A.
Consideration and Approval of City
RESOLUTION Authorizing Amendment #1
to the Professional Service Agreement
with Harris & Associates in the amount of
$360,000 and Extending the Contract Term
for One Year to end June 30, 2024
113
City of Sand City
Memorandum
TO: Honorable Mayor and City Council
FROM: Vibeke Norgaard, City Manager
PREPARED BY: Leon Gomez, City Engineer
DATE: January 31, 2023 (For meeting on February 7, 2023) SUBJECT: Amendment #1 to the Professional Service Agreement with Harris & Associates for City Engineering Services for Fiscal Years 2021-2023 and 2023-2024 ______________________________________________________________________
BACKGROUND
On June 15, 2021, the City Council of the City of Sand City (City) approved Resolution 21-43 authorizing the City Manager to renew a Professional Service Agreement (PSA) with Harris & Associates (Harris) to provide city engineering services for fiscal years 2021-2022 and 2022- 2023. At the time, Harris provided an estimated cost of $400,000 for these services over the two-year period.
The renewal of the PSA was based on retaining Mr. Leon D. Gomez, P.E. and the Harris team as the City’s contract City Engineer. Mr. Gomez has served as the City Engineer since 2013 and he has developed first-hand knowledge of the City’s infrastructure and a significant amount of “institutional memory” for many of the City’s current and past projects, as well as strong relationships with City staff, neighboring cities, and local and regional public agencies.
Mr. Gomez and the Harris team have been involved in many City projects, planning efforts, and activities including:
• Capital Improvement Program (CIP) planning and development • Preparation of Plans, Specifications, & Estimates (PS&E) and contract/bid documents for public works projects
• Development review services for single family, mixed-use and commercial developments including the West End South of Tioga Development
• Sand City Water Supply Project (SCWSP) Phase 1 New Wells • Management of the City’s encroachment permit program and municipal storm water program
• Management of grant funded projects such as the West End Stormwater Improvement Projects
• Attendance at City Council meetings and preparation of staff reports, resolutions, and presentations
• Regular attendance at department head meetings
• Coordination with local, regional and state agencies related to City projects Mr. Gomez serves as the City’s designated representative on the following committees:
• Monterey Regional Storm Water Management Program (MRSWMP) Management Committee
• Transportation Agency for Monterey County (TAMC) Technical Advisory Committee • Seaside Groundwater Basin Watermaster Technical Advisory Committee The initial budget of $400,000 for the two-year term of the PSA was estimated in June 2021 and 114
has been exhausted. The primary reasons for reaching the contract budget are:
West End South of Tioga Development
• Review, processing and approval of engineering plans, technical reports, and supporting documentation
• Review of revised plans and supporting documents for improvements to the full width of California Avenue
• Construction phase coordination and site visits
• Development team meetings
• Coordination with City staff, 4-Leaf, the applicant, project designer, and outside agencies (PG&E, SCSD, Cal-Am, etc.)
• Part of the costs for this Project have been reimbursed by the developer • Accomplishments include the issuance of construction permits, Phase 1 off-site improvements underway including improvements to the full width of California Avenue, Phase 2 Hotel plan review and processing with building permit issuance anticipated in early 2023.
Calabrese Park, City Hall and Pendergrass Way Improvement Project • Preparation of plans, specifications, & estimates (PS&E) for the project • Preparation of PS&E for re-bid of the project (reduced) • Assisting with the preparation of contract bid documents • Bid phase services including addendum preparation, response to bidder’s questions, pre-bid conference
• Assisted 4LEAF in ensuring that the project has been publicly bid, construction contract awarded, and construction is anticipated to start in early 2023 West Bay St. Coastal Access Repair Project
• Preparation of contract bid documents
• Bid phase services including addendum preparation, response to bidder’s questions, pre-bid conference
• Accomplishments: project publicly bid, construction contract awarded, and construction anticipated to start in early 2023
Encroachment Permits
• Over 20 permits have been reviewed, processed, and issued by Harris • Several of these permits have required significant plan review and coordination such as permits related to the South of Tioga Project (PG&E gas & electric work), the Seaside County Sanitation District (SCSD) sewer upgrade projects, and the TAMC Wayfinding Signs project
• Development of an Annual Programmatic Permit for PG&E for gas and electric work. • Majority of costs are reimbursed by each permit applicant • Accomplishments: permits issued supporting a variety of projects, receipt of deposit from PG&E for annual permit to ensure 100% cost recovery
Development Review Services
• Plan check for residential, mixed-use, and commercial projects • Several projects were submitted for multiple reviews, requiring additional effort • Most costs are reimbursed by the applicant
• Accomplishments: plan approvals and permits issued for a variety of projects including Shasta Ave. Commercial Building, 1880 Park St., 610 Scott Street, Costco parking lot 115
improvements
Ortiz Avenue Sewer Upgrade Project - Seaside County Sanitation District (SCSD) • Construction of the project lasted from approximately September 2021 to October 2022 (13 months)
• Harris attended bi-weekly construction meetings
• Harris attended field meetings and site visits to review construction and address issues with traffic control, trash pickup, access, etc.
• Coordination with City staff, SCSD, construction contractor, Greenwaste, and business owners during the project
• Negotiated additional improvements related to ADA ramps, concrete work and asphalt slurry sealing
• Final walkthrough and punch list items
• Accomplishments: new sewer upgrades installed in Ortiz Avenue serving Sand City businesses and residents, new asphalt slurry seal, signage and striping West End Stormwater Improvement Projects – Contra Costa Street and Catalina Street • Review of draft grant agreements and attachments for each grant funding program/agency (State Water Board Prop. 1 SW and Dept. of Water Resources Prop. 1 IRWM)
• Execution of grant agreements and quarterly reporting • Coordination with technical assistance and design team • Developed preliminary mapping and estimates for undergrounding of overhead utilities • Accomplishments: grant agreements executed
Storm Water Program
• Mr. Gomez assumed the role of Vice Chair for the Monterey Regional SW Program which required additional meetings and effort
• Updated GIS data mapping to support the City’s storm drain system map, priority land use areas, and pollutant load reduction estimates (required for annual report) • Preparation of annual reports in 2021 and 2022
• Updated procedures and documentation/templates for the City’s construction site SW runoff control program
• Accomplishments: submittal of annual program reports, increased participation in regional program, improvements in applicant responses to deficient construction site BMPs when identified and documented
Sand City Water Supply Project (SCWSP) Phase 1 New Wells • Meetings and coordination with California American Water and their design team • Review of preliminary siting plans and details
• Assist Cal-Am in responding to Division of Drinking Water (DDW) questions Cost Recovery
Several tasks performed by the City Engineer are subject to cost recovery, either through a reimbursement agreement such as for development projects, permit fees such as for encroachment permits which are paid for by the permit applicant, grant funded such as the West End Stormwater Improvement Projects, or “special” projects such as the Sand City Water Supply Project (SCWSP) Phase 1 New Wells in which costs are reimbursed by Cal-Am.
Through December 31, 2021, the total effort for tasks subject to cost recovery is approximately $120,000 which is approximately 30% of the City Engineer budget amount of $400,000. 116
Several of the tasks listed above were unanticipated at the time the original budget of $400,000 was estimated by Harris. Harris is requesting an amendment to cover current and forecasted tasks for the remaining six months of fiscal year 2022-23, i.e., through June 30, 2023. In addition, staff is recommending renewing the term of the contract for FY 23-24, in an amount not to exceed $200,000. In addition to current tasks, the City has requested support with labor compliance, construction management and inspection services. In order to provide services for both existing tasks and the additional services listed above, Harris proposes a $160,000 amendment to its contract for the remaining term and an additional $200,000 for FY 23-24.
REVIEW AND ANALYSIS
Harris is involved in several important City projects and various development projects currently under review and/or in construction. Mr. Gomez and the Harris team have been instrumental in applying for and/or managing several grants to support City projects. The table below lists a summary of grants that have been obtained to date:
Table 1 - Grant Funded Projects
Project
Grant
Award Phase Grant Source Harris Role
West End SW
Improvement
Project Contra
Costa Street and
Catalina Street
$270,000 Conceptual &
Preliminary
design
SWRCB Prop. 1
Technical
Assistance Grant
Preparation & submittal of grant
application and supporting
information
West End SW
Improvement
Project Contra
Costa Street
$2,735,202 Final design &
construction
SWRCB Prop. 1
Implementation
Grant
Preparation & submittal of grant
application and supporting
information, ongoing grant
management
West End SW
Improvement
Project Catalina
Street
$972,400 Final design &
construction
SWRCB Prop. 1
IRWM Grant
Preparation & submittal of grant
application and supporting
information, ongoing grant
management
Calabrese Park
Improvement
Project
$90,000 Design and
construction
CBDG Funding Assistance with grant
application, provided supporting
documentation, coordination
with County
Pendergrass Way
Improvement
Project
$31,000 Design &
construction
SB 1 Road
Maintenance &
Rehab. Account
Funding
Preparation of local roads &
streets report identifying project
and funding source
Total $4,098,602
SWRCB = State Water Resources Control Board, CDBG = Community Development Block Grant
ENVIRONMENTAL (CEQA) CLEARANCE
An amendment to the existing professional services agreement does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) and is therefore exempt under CEQA guidelines sections 15060(c)(2) and 15061(b)(3).
FISCAL IMPACT
Increase of an additional $360,000 to the existing PSA with Harris & Associates for City 117
Engineering Services, to include an increase in the amount allocated for FY 22-23 and an extension of the contract into FY 23-24.
RECOMMENDATION
Staff is recommending approval of the amendment to the Harris contract.
ATTACHMENTS
1. Resolution
118
CITY OF SAND CITY
RESOLUTION SC , 2023
RESOLUTION OF THE CITY COUNCIL OF SAND CITY
AUTHORIZING AMENDMENT #1 TO THE PROFESSIONAL SERVICE AGREEMENT WITH HARRIS & ASSOCIATES IN THE AMOUNT OF $360,000 AND EXTENDING THE CONTRACT TERM FOR ONE YEAR TO END JUNE 30, 2024.
WHEREAS, on June 15, 2021, the City Council of Sand City approved Resolution 21-43 authorizing the City Manager to renew a Professional Service Agreement (PSA) with Harris & Associates in the amount of $400,000 to provide City Engineering Services for fiscal years 2021- 22 and 2022-23; and
WHEREAS, the renewal of the PSA was based on retaining Mr. Leon D. Gomez, P.E., with Harris & Associates (Harris) as the city’s contract City Engineer; and WHEREAS, Mr. Gomez has served as City Engineer since 2013 and he has developed firsthand knowledge of the City’s infrastructure and a significant amount of “institutional memory” for many of the City’s current and past projects, as well as strong relationships with City staff, neighboring cities, and local and regional public agencies; and WHEREAS, the initial PSA budget has been exhausted due to effort associated with a number of projects and tasks as described in the accompanying staff report; and WHEREAS, the City requires support for a number of new tasks for the remaining fiscal year period ending June 30, 2023, as described in the accompanying staff report; WHEREAS, an amendment to the PSA with Harris is necessary in order for the City to continue to receive city engineering services, and;
WHEREAS, Harris & Associates has requested an amendment in the amount of $160,000 in order to continue to provide city engineering services for the remainder of fiscal year ending June 30, 2023, and an additional $200,000 for the upcoming fiscal year 2023-24.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sand City does hereby authorize the following:
1. Amendment 1 to the Professional Service Agreement with Harris & Associates for City Engineering Services in the amount of $360,000.
2. The term of the Professional Service Agreement shall expire on June 30, 2024, unless extended in writing by both parties.
PASSED AND ADOPTED by the City Council of Sand City this day of February, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
119
APPROVED:
Mary Ann Carbone, Mayor
ATTEST:
Connie Horca, City Clerk
120
AGENDA ITEM
10B.
Consideration and Approval of City
RESOLUTION Approving a First
Amendment to the Building Services
Agreement with 4Leaf, Inc. and
Authorizing the City Manager to Execute
the Amendment
121
City of Sand City
STAFF REPORT
TO: Mayor and City Council
FROM: Vibeke Norgaard, City Manager; Connie Horca, City Clerk SUBJECT: First Amendment to Building Service Agreement with 4LEAF DATE: January 31, 2023
FOR: February 7, 2023 Council Meeting
_______________________________________________________________________ Background:
On December 1, 2020, the City Council passed and adopted Resolution SC 20-76, 2020 approving a contract with 4Leaf, Inc. to provide comprehensive building services agreement, attached to this staff report as Exhibit A, including but not limited to code enforcement, building permit issuance, building inspections services, building plan review services, code enforcement and building official oversight and response.
The original term of the contract was from January 1, 2020 through January 1, 2023 and therefore, if Council wishes to continue the services provided by 4Leaf, the contract requires an amendment to extend the term of the contract. 4Leaf, Inc. has provided the City with quality building inspection services to meet the needs of the City. Staff recommends extending it through June 30, 2025.
A draft amendment is attached at Exhibit B (attached to the resolution). An updated fee schedule is attached to the Amendment. The fee schedule does not change the hourly rates of 4LEAF personnel from the prior fee schedule.
CEQA:
The approval of a service agreement does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.
Fiscal Impact:
There is no fiscal impact to the current fiscal year 2022-2023 adopted budget for building services; however, the agreement, if approved, would allocate an annual amount of $100,000 for future building services for fiscal years 2023-2024 and 2024-2025, for a total of $200,000.
Recommendation:
122
Staff recommends the Council approve the attached resolution approving the First Amendment to Building Services Agreement with 4Leaf, Inc and authorize the City Manager to execute the agreement.
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CITY OF SAND CITY
RESOLUTION SC 23- 2023
RESOLUTION OF THE CITY COUNCIL OF SAND CITY APPROVING A FIRST AMENDMENT TO THE BUILDING SERVICES AGREEMENT WITH 4LEAF, INC. AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENT
WHEREAS, on December 1, 2020, the City Council approved a contract with 4Leaf, Inc. to provide comprehensive building services including, but not limited to, building permit issuance, building inspections service, building plan review services, code enforcement, and building official oversight and response (SC 20-76); and WHEREAS, 4Leaf, Inc. has the knowledge and expertise to meet the City’s needs for building inspection services; and
WHEREAS, the City desires to amend the original agreement to extend the term of service through June 30, 2025; and
WHEREAS, the First Amendment to the Agreement revises Section IV. with regard to payment of monthly services performed and reimbursable costs.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sand City does hereby authorize
1. The First Amendment to Building Services Agreement with 4Leaf, Inc. attached as Exhibit A, and incorporated herein by reference is hereby accepted and approved.
2. The City Manager to execute a First Amendment to Building Services Agreement with 4Leaf, Inc in substantially the same form as the attached document, subject to City Manager approval.
3. 4Leaf, Inc. shall maintain a current Sand City Business License throughout the term of the Service Agreement.
PASSED AND ADOPTED by the City Council of the City of Sand City this __ day of February, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
ATTEST: ____________________________
Mary Ann Carbone, Mayor
______________________
Connie Horca, City Clerk
153
EXHIBIT A to Resolution
EXHIBIT B to Staff Report
1 FIRST AMENDMENT TO BUILDING SERVICES AGREEMENT WITH
4LEAF, INC.
THIS FIRST AMENDMENT TO BUILDING SERVICES AGREEMENT (this “Amendment”), dated as of February __, 2023, amending that certain BUILDING SERVICES AGREEMENT (“BSA”), is entered into by and between the City Sand City, a California municipal corporation (the “City”) and 4Leaf, Inc. (“Consultant”). The City and the Consultant are each referred to herein as a “Party” and collectively referred to as the “Parties.”
WHEREAS, the Parties desire to amend the BSA to extend the term of the agreement.
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
Section 1. Section “I. TERM” is revised in its entirety as follows:
”The term of the Agreement will begin on January 1, 2020 and shall end on June 30, 2025, unless sooner terminated pursuant to the provisions of this Agreement. The Agreement may be reviewed and renewed annually. No modification to the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto.” Section 2. Section “IV. Payment” is revised in its entirety as follows:
“A. The City agrees to pay CONSULTANT monthly for services performed and reimbursable costs, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks.
This amount shall not exceed an annual amount of One Hundred Thousand Dollars ($100,000.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. Except as specifically authorized by City in writing, CONSULTANT shall not bill CITY for duplicative services performed by more than one person. Fees for work performed by CONSULTANT on an hourly basis shall not exceed the amounts shown on the compensation schedule attached hereto as Exhibit A. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.
B. CONSULTANT shall not be compensated for any services rendered in connection with its performance of this AGREEMENT which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. CONSULTANT shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and CONSULTANT at the time CITY’s written authorization is given to CONSULTANT for the performance of said services. The City Manager may approve additional work not to exceed ten percent (10%) of the amount of the AGREEMENT, but in no event shall 154
EXHIBIT A to Resolution
EXHIBIT B to Staff Report
2 such sum exceed forty-thousand dollars ($40,000). Any additional work in excess of this amount shall be approved by the City Council of Sand City.
C. CONSULTANT will submit invoices monthly for actual services performed.
Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Invoices shall include a task summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement. For each work item and task, a copy of the applicable time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the CITY disputes any of CONSULTANT’s fees it shall give written notice to CONSULTANT within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this AGREEMENT shall be made within forty-five (45) days of receipt of an invoice. In no event shall CONSULTANT submit an invoice for an amount in excess of the maximum amount of compensation provided above for either a task or the entire Agreement, unless the Agreement is properly modified in writing prior to the submission of such an invoice.”
Section 3. Effect
Except as otherwise expressly set forth in this Amendment, all other terms and conditions of the BSA remain unchanged and in full force and effect. In the event there is a conflict between the terms and provisions of this Amendment and the BSA as originally executed, the terms and provisions of this Amendment shall control.
Section 4. General Provisions.
This Amendment may be executed in separate counterparts, which together shall be fully effective as an original and together constitute one and the same instrument. Facsimile signatures appearing hereon shall be deemed originals. This Amendment shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.
IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above.
CITY CONSULTANT
City of Sand City 4LEAF, Inc.
By: _________________________ By:___________________________ Vibeke Norgaard Kevin Duggan
City Manager President
5279400.5
155
Proposal to Provide As-Needed Professional Services to the City of Sand City Page 49 Section 4: Fee Schedule January 31, 2023
SECTION 4: FEE SCHEDULE
FY2023-2024 FEE SCHEDULE & BASIS OF CHARGES
FOR THE CITY OF SAND CITY
All Rates are Subject to Basis of Charges
Building
Chief Building Official ......................................................................................................................... $144/hour Certified Access Specialist (CASp) Inspector ...................................................................................... $165/hour Certified Access Specialist (CASp) Plans Examiner............................................................................. $165/hour Senior Combination Building Inspector (Building Inspector III) ......................................................... $118/hour Commercial Building Inspector (Building Inspector II) ...................................................................... $108/hour Residential Building Inspector (Building Inspector I) .......................................................................... $93/hour Permit Manager.................................................................................................................................. $93/hour Senior Permit Technician (Remote or Onsite).................................................................................... $77/hour Permit Technician............................................................................................................................... $70/hour Civil Plan Review (Grading, Improvement Plans) ............................................................................... $175/hour Inspector of Record ............................................................................................................................ $124/hour DSA Class 1 / OSHPD A Inspector ....................................................................................................... $144/hour DSA Class 2 / OSHPD B Inspector ....................................................................................................... $120/hour DSA Class 3 / OSHPD C Inspector........................................................................................................ $103/hour Off-Site Project Manager.................................................................................................................... $175/hour GoFormz Software.................................................................................................................. $50/user monthly Code Enforcement
Code Enforcement Director.............................................................................................................. $165/hour Code Enforcement Manager ............................................................................................................ $145/hour Senior Code Enforcement Officer..................................................................................................... $110/hour Code Enforcement Officer II............................................................................................................. $103/hour Code Enforcement Officer I.............................................................................................................. $88/hour Fire
Fire Protection Engineer (FPE) ............................................................................................................ $205/hour Fire Prevention Officer ...................................................................................................................... $112/hour Fire Plans Examiner ............................................................................................................................ $165/hour
PLAN REVIEW COST STRUCTURE NOTES
Plan Review Percentage: 75%
(Inclusive of all disciplines except Fire and Civil which are billed on an hourly basis)
Hourly Plan Review: $113 Non-Structural Review
$165 Structural Review
Fee includes:
Initial review and two (2) rechecks. Hourly
charges apply after three (3) or more
rechecks.
Shipping, courier, and electronic service.
EXHIBIT B to First Amendment
156
Proposal to Provide As-Needed Professional Services to the City of Sand City Page 50 Section 4: Fee Schedule January 31, 2023
Fire Inspector II...................................................................................................................................$170/hour Fire Inspector I....................................................................................................................................$160/hour Planning
Housing Policy Director ....................................................................................................................$205/hour Planning Director..............................................................................................................................$180/hour Principal/Planning Manager.............................................................................................................$165/hour Senior Planner ..................................................................................................................................$140/hour City Clerk...........................................................................................................................................$195/hour Associate Planner.............................................................................................................................$124/hour Assistant Planner .............................................................................................................................$105/hour Planning Technician..........................................................................................................................$90/hour Project Management
Project Manager.................................................................................................................................$175/hour Principal-in-Charge .............................................................................................................................$245/hour Engineering, Public Works Inspection, & Construction Management (Prevailing Wage) Civil Plan Review (Grading, Improvement Plans) ................................................................................ $175/hour Traffic Engineer.................................................................................................................................... $215/hour Construction Manager…………………………………………………………………………………………….……………….……. $182/hour Certified Access Specialist (CASp) Inspector (Regular time) …………………………………………………….…….. $165/hour Certified Access Specialist (CASp) Inspector (Nighttime) ……………………………………………………….…….… $186/hour Certified Access Specialist (CASp) Inspector (Overtime)…………………………………………………………….…… $223/hour Certified Access Specialist (CASp) Plans Examiner…………………………………………………………….……..…….. $165/hour Public Works Inspector (Regular Time) ……………………………………………………………………………………..…… $153/hour Public Works Inspector (Nighttime)…………………………………………………………………………………………..…….$172/hour Public Works Inspector (Overtime) …………………………………………………………………….……………..………..…$207/hour Public Works Inspector Apprentice………………………………………………………………………………...……………… $99/hour
BASIS OF CHARGES
Rates are inclusive of “tools of the trade” such as forms, telephones, and consumables. • All invoicing will be submitted monthly.
• Staff Augmentation work (excluding plan review) is subject to 4-hour minimum charges unless stated otherwise. Services billed in 4-hour increments.
• Most plan reviews will be done in 10 business days or less and 5 business days or less for re-checks. This is not inclusive of holidays or the day of the pick-up of plans. • Expedited reviews will be billed at 1.5x the plan review fee listed in the fee schedule. Return time will be within seven (7) days of receipt of the plans from the City. • Plan review of deferred submittals & revisions will be billed at the hourly rates listed. • All plan review services will be subject to a $250.00 minimum fee if percentage-based fee or 2-hour minimum charge if hourly rates apply.
• Larger complex plan reviews can be negotiated to achieve the best possible pricing. 157
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• All plan review services will be subject to 2-hour minimum fee. • All plan review services are billed on a percentage basis and includes the initial review and 2 rechecks. - Plan reviews will be billed on an hourly basis only after the initial review and 2 rechecks unless otherwise agreed upon on a case-by-case basis.
- Fire and Civil Reviews are billed on an hourly basis and are not included in our plan review percentage.
• 4LEAF assumes that these rates reflect the FY2023-2024 contract period. There will be a 3% escalation for FY2024-2025, FY2025-2026
• Overtime and Premium time will be charged as follows:
- Regular time (work begun after 5AM or before 4PM) 1 x hourly rate - Nighttime (work begun after 4PM or before 5AM) 1.125 x hourly rate - Overtime (over 8-hour M-F or Saturdays) 1.5 x hourly rate - Overtime (over 8 hours Sat or 1st 8-hour Sun) 2 x hourly rate - Overtime (over 8 hours Sun or Holidays) 3 x hourly rate • Overtime will only be billed with prior authorization of the Director or other designated City personnel. • All work with less than 8 hours rest between shifts will be charged the appropriate overtime rate. • Mileage driven during the course of Inspections will be charged at cost plus 20%. • Payment due on receipt. All payments over 30 days will be assessed a 1.5% interest charge. • Client shall pay attorneys’ fees, or other costs incurred in collecting delinquent amounts. • Client agrees that 4LEAF’s liability will be limited to the value of services provided. • In accordance with California’s Meal Break and Rest Break Law requirements, Client will be billed one (1) additional hour per day at the regular rate for each missed meal or rest break due to Client-directed tasks or requirements. Client should allow 4LEAF’s non-exempt, hourly employees the opportunity to take their entitled rest and meal breaks during each work shift.
BASIS OF CHARGES – PREVAILING WAGE • Rates shown assume the projects will require compliance with California Prevailing Wage rate requirements and assumes the Client will be filing a PWC-100 Form to the California Department of Industrial Relations (DIR) for the projects.
• Rates for prevailing wage categories are subject to annual escalations in accordance with the bi-annual wage determinations from the California DIR.
• Per the new requirements being enforced under SB 854 and because it is assumed that a PWC-100 Form will be filed by the Client to the CA DIR for each project, 4LEAF is required to notify an authorized Apprenticeship Committee through submittal of a DAS-140 form. We are then required to make an official request to an authorized Apprenticeship Committee for an apprentice by submitting a DAS-142 form. We are not assured the apprenticeship committee will be able to provide a suitable / qualified apprentice for the project. Per the apprenticeship requirements, the hours worked by the apprentice must be in a ratio of 1:5 for apprentice to journeyman hours. 4LEAF will not know the labor classification of the Public Works Apprentice until an Apprentice is dispatched to the site; therefore, the rates for the five Periods listed under the California DIR’s Wage determination for Building Construction Inspector were used to determine the range of hourly rates for Public Works Inspector Apprentice. 158
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• Pre-approved Overtime and Premium hours for labor categories subject to Prevailing Wage requirements will be charged per the following:
- Nighttime (work begun after 4PM or before 5AM) 1.125 x hourly rate - Overtime (over 8 hour M-F or Saturdays) 1.35 x hourly rate - Overtime (over 8 hours Sat or 1st 8 hour Sun) 1.85 x hourly rate - Overtime (over 8 hours Sun or Holidays) 2.35 x hourly rate • All invoicing will be submitted monthly.
• All work with less than 8 hours rest between shifts will be charged the appropriate overtime rate. • Project-related mileage for inspections will be billed at the allowable IRS Rate. • Payment due on receipt. All payments over 30 days will be assessed a 1.5% interest charge. • Client shall pay attorneys’ fees, or other costs incurred in collecting delinquent amounts. • Client agrees that 4LEAF’s liability will be limited to the value of services provided. • In accordance with California’s Meal Break and Rest Break Law requirements, Client will be billed one (1) additional hour per day at the regular rate for each missed meal or rest break due to Client-directed tasks or requirements. Client should allow 4LEAF’s non-exempt, hourly employees the opportunity to take their entitled rest and meal breaks during each work shift. 159
TO THE
PROPOSAL TO PROVIDE
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CITY OF SAND CITY
Submitted February 1, 2023
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CODEENFORCEMENT(17-25) INSPECTION (26 - 30) PUBLIC WORKS (31 - 39) FIRE (40 - 43)
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Engineering • Code Enforcement • Inspection • Plan Check • Planning 2126 Rheem Drive • Pleasanton, CA 94588 • Phone (925) 462-5959 • Fax (925) 462-5958 City of Sand City February 1, 2023
City Manager
1 Pendergrass Way
Sand City, CA 93955
Attn: Vibeke Norgaard, City Manager
RE: Proposal to Provide As-Needed Professional Services to the City of Sand City.
Dear Ms. Norgaard,
4LEAF, Inc. (4LEAF) is excited to have the opportunity to submit our proposal to provide professional AsNeeded Professional Services to the City of Sand City (City). 4LEAF has been providing these services for numerous public and private clients throughout California for more than 20 years and is looking forward to the opportunity to continue to provide these services for the City. 4LEAF is the ideal choice for the following reasons:
Experience with Sand City
4LEAF currently works with the City both in an on-call capacity and on project specific assignments.
To date, 4LEAF has completed plan reviews, inspection services, code enforcement services, and permit technician services. In addition, 4LEAF is also working in a number of different capacities on the South of Tioga project.
Local Clientele
Currently, we are supplying similar services to nearly 300 public agencies throughout California including the nearby municipalities such as the cities of Sand City, Monterey, San Juan Bautista, Hollister, Pacific Grove, Santa Cruz, Capitola, Greenfield, Carmel By-The-Sea, and the counties of Monterey, San Benito, and Santa Clara.
Depth of Resources
4LEAF has a proven track record of providing building officials, inspectors, code enforcement officers, permit technicians, and plan review engineers typically within 24 hours of request. Our local and proposed staff include:
• John Kuehl, CBO – Proposed Building Official
• Scott Martin, PE – Proposed Plan Review Engineer
• Minnie Arredondo – As Needed Building Official and Inspector • Christopher Fowler, CBO, OSHPD A – Proposed Building Code Interpretation • Caitlin Roeder – Consulting Permit Technician
• Rich Deal, TE – Engineering Support
• Al Fasulo – Code Enforcement Officer
Full-Service Firm
As a full-service firm, 4LEAF can provide departmental services to aid with high project workloads that require additional staff assistance. We provide jurisdictions with full Fire Prevention services, and we have the qualified staff available to serve the City with remote, on-site, part-time, or full-time project needs. For the purpose of this contract, we are proposing on the following scope:
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Proposal to Provide As-Needed Professional Services to the City of Sand City. 2126 Rheem Drive • Pleasanton, CA 94588 • Phone (925) 462-5959 • Fax (925) 462-5958 Fire: Our team is comprised of Fire Protection Engineers, Fire Plans Examiners, Fire Inspectors, Fire Marshals, and other experts who specialize in Fire Life Safety and Disaster Recovery. The 4LEAF Fire Division is well-equipped to perform any review and/or inspection and adheres to our Building Plan Review and Inspection timelines.
Plan Review: 4LEAF is an industry leader in Plan Review services and has a team of ICC-certified and licensed Engineers, Accessibility Specialists, and Mechanical/Electrical/Plumbing/Fire Plans Examiners. We provide courier services that guarantee less than 24-hour pickup and delivery of all plan reviews performed off-site, and we also offer electronic and expedited plan review services upon request. Additionally, our Plans Examiners are familiar with many permitting programs including IWORq’s, which we understand is used by the City. Inspection: We have over 200 ICC-certified inspectors on staff who specialize in Residential, Commercial, Industrial, Code Enforcement, Energy, Fire, ADA, Solar, and Public Works projects. We have a track record of providing inspectors as-needed for long- or short-term projects, including one day assignments to cover staff training, sick days, vacation days, or spikes in permit activity. Code Enforcement: 4LEAF has more than 30 Code Enforcement Officers to provide support to City personnel on a regular basis, training purposes, or specific Code cases. Engineering Support: 4LEAF has a number of Engineers including Traffic, Structural, Fire Protection, and Civil Engineers.
Leadership
The contract with the City of Sand City will be managed by John Kuehl, CBO. John has a proven track record of success working with cities and counties throughout Monterey and he will be the City’s resource to discuss staffing requests and project needs.
Project Manager Principal 4LEAF
Local Office
John Kuehl, CBO
Office: (925) 462-5959
Mobile: (831) 596-8759
Email: [email protected]
Kevin J. Duggan
Office: (925) 462-5959
Mobile: (925) 250-7602
Email: [email protected]
8896 North Winding Way
Fair Oaks, CA 95628
Phone: (916) 965-0010
Website: 4LEAFINC.COM
We appreciate this opportunity to present our proposal. As President of 4LEAF, Inc., I have authority to bind the firm. If you have any questions or require additional information, please do not hesitate to reach out using the contact information above.
Respectfully submitted,
Kevin J. Duggan
President
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SECTION 1: FIRM PROFILE
4LEAF, Inc. (4LEAF) is a California “C” Corporation that was established in 1999 and incorporated in 2001. Our extensive team of engineers and managers are fully equipped with training and experience to provide complete services including code enforcement, plan check, CASp, inspection, permit technician assistance, professional development training, and other related professional and technical services to the City’s Community Development Department. Our goal is to set the industry standard for excellent customer service, and we have grown to more than 400 personnel throughout California, Washington, Nevada, and New England, and we are able to serve any full-time or part-time need the city may have, regardless of scope and duration.
Management Team
Office Locations
Bay Area - Headquarters
2126 Rheem Drive
Pleasanton, CA 94588
Southern California
5140 Birch Street, Second Floor
Newport Beach, CA 92660
San Diego
402 West Broadway, Suite 400
San Diego, CA 92101
Santa Cruz
701 Ocean Street
Santa Cruz, CA 95060
Sacramento
8896 North Winding Way
Fair Oaks, CA 95628
Paradise
6848 Skyway, Suite F
Paradise, CA 95969
Washington
1201 Pacific Avenue, Suite 600
Tacoma, WA 98402
4LEAF Consulting, LLC
125 E. Reno Ave., Suite 3
Las Vegas, NV 89119
New England
132 Central St., Suite 210
Foxboro, MA 02035
Professionals
Title # of Staff Title # of Staff
ICC Certified Plans Examiners 40+ ICC Certified Inspectors & IORs 200+ ICC Certified Building Officials 40+ Registered Architects 5+ Registered Engineers (PE, SE) 20+ ICC Permit Technicians 40+ Code Enforcement Staff (PC832) 28+ CASp 8
Construction Managers/Inspectors 40+ Fire Plans Examiners & Inspectors 30+ President, Authorized to sign: Kevin J. Duggan
Phone: (925) 462-5959
Email: [email protected]
Executive Project Manager: Craig Tole
Phone: (925) 580-4055
Email: [email protected]
Director of Jurisdictional Services: Raylee Glasser, CBO Phone: (925) 708-4209
Email: [email protected]
Director of Building Ops: Mike Leontiades, CBO
Phone: (925) 681-8842
Email: [email protected]
Director of Code Enforcement: Pete Roque
Phone: (562) 569-0098
Email: [email protected]
Director of Planning: Daniel Hortert, AICP
Phone: (925) 708-4209
Email: [email protected]
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SECTION 2: SCOPE OF WORK – PLANNING
APPROACH
Since establishing our Planning Division in 2018, 4LEAF has worked with numerous jurisdictions providing Comprehensive Planning, Project Review, and Environmental Planning Services including: On-Call Planning, Specific Plans, General Plan Amendments, including Updates of Housing and Safety Elements, and work on LongRange initiatives related to fire resiliency and disaster recovery. Within the past 12 months, 4LEAF has added 20+ new municipalities to our on-call Planning service contracts and we have staffed a wide array of professional Planning personnel to include staff augmentation from the Planning Technician to Planning Director levels and everything in between.
In addition to providing Comprehensive, On-Call Planning Support, and Environmental Document preparation services, 4LEAF is currently working with the ABAG Joint Planning Collaborative for Napa and Sonoma County Housing Elements, addressing the housing challenges facing the region and overseeing planning sessions with the Collaborative’s Steering Committee. 4LEAF is providing Housing Elements to the cities of San Marino, Santa Clarita, Cotati, Cloverdale, Cupertino, Sebastopol, and Gonzales. We are experienced in working with the California Department of Housing & Community Development (HCD) providing RHNA number appeal services. 4LEAF Planners also have experience working with the Department of Housing and Urban Development (HUD) and the Department of Housing and Community Development (HCD) policies and regulations, and reviewing applications for completeness and consistency with Local, State, and Federal regulations. Our staff’s attention to detail and organized approach to project management helps maintain project schedules and ensures positive and timely results. 4LEAF Planners have the specific skills to complete any request.
Our Planners possess the technical writing and report preparation abilities needed to convey the greatest detail in a manner that is easy to understand with solid recommendations of findings rooted in the plans, policies, and codes that reinforce the City’s vision. We are dedicated to understanding the vision of a community and rigorously working towards that vision. We utilize application checklists as the foundation of our review and translate policies and regulations as they apply to development applications. We transpose our findings into informative, concise, and simple to understand staff reports or studies. These endeavors cannot be accomplished in a vacuum and our staff are well‐versed in project management and will work diligently with other departments and agencies to ensure that the highest levels of review and feedback are achieved. 4LEAF Planners will arrive on-site with a positive attitude and will make every attempt to move projects forward to achieve successful outcomes.
We are creative in our approach and can develop alternative methods to achieve the best outcome for the communities, agencies, and applicants.
The Planning Division at 4LEAF is responsible for integrating staff into Local and State jurisdictions where we are routinely called upon to supplement vacancies and staff shortages. We also provide staff augmentation services when projects require focused processing and management of a variety of land use applications for compliance with land development codes and general, adopted area, and specific plans. 168
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Our team evaluates the environmental impacts of private development proposals and coordinates with other divisions to ensure that standards for building safety and infrastructure systems are appropriately addressed with new development.
4LEAF’s Planning duties include the development of submittal forms to meet statutory requirements,taking inand reviewing projectsfor rebuilding and temporary housing, conducting pre-design rebuild meetings, responding to the planning and zoning information hotline as applicable, and conducting site inspections and property research to support application processing and meetings.
4LEAF Planners have successfully taken on complex planning duties in locations hardest hit by wildfires in recent years including the:
City of Malibu (CA)
Town of Paradise (CA)
County of Sonoma (CA)
County of Santa Cruz (CA)
County of Jackson (OR)
Our ability to augment services to expedite Planning and permitting processes ensures that residents are afforded an opportunity to get their lives back. Other recent on-call Planning placements include the County of Jackson, Oregon where we are managing and staffing the Fire Recovery program and the City of Pinole where we staff a Permit Technician, Code Enforcement Officer, a Project Planner, and a 4-month contract for a Planning Manager to oversee the Planning, Building, and Code Enforcement Divisions. In addition, 4LEAF has secured an assignment with the City of Pleasant Hill overseeing complex developer funded projects as well as City-driven policy updates. 4LEAF has successfully placed a variety of skilled staff in public and private agencies for over 21 years. Our professional, certified, and registered staff bring the greatest knowledge and understanding of their respective fields, which ensures that our clients receive staff that are highly experienced and able to assimilate into the City’s team. We thrive on customer service and recognize that every contact we make—whether an applicant, the general public, or an agency representative—is critical for building and maintaining partnerships.
Customer care is a core value at 4LEAF, and our staff is expected to operate in a fashion aligned with this value.
Our Planners have successfully completed many design review applications, use permits, subdivisions/plats, land development code updates, general and comprehensive plan updates and development, cannabis regulations, environmental documentation oversight, affordable housing, and solar, wind, and energy compatibility projects. 169
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PROJECT EXPERIENCE
City of Sausalito
On-Call Planning Services
4LEAF is currently providing On-Call Planning to the City of Sausalito for consulting roles including Interim Community Development Director and Senior Planner—in addition to roles from our Building Department contract. 4LEAF’s Director of Planning Services, Daniel Hortert, AICP, is currently assigned to the City and performs duties in the capacity of the Interim Community Development Director. Daniel oversees functions of the Community Development Department, which encompasses Planning, Building, Code Enforcement, and Administration for the City. His responsibilities include:
Supervising a staff of 9.
Acting as Secretary to the Planning Commission.
Performing Design Review for projects and presenting to City Council and the Planning Commission. Processing discretionary development applications such as Design Review, Condo Conversions, heightened review projects, CUPs, and variances.
Processing administrative/ministerial projects such as ADU/JADUs, SB 9 (urban lot splits, SB 9 structures), and administrative variances.
Developing departmental budgets.
Current/Recent Projects:
SB 9 Adoption – CA HOME (Housing Opportunity and More Efficiency) Act: Modifies residential zoning rules to allow up to four homes to be built on a property zoned for one house. The standards for Sausalito include a maximum of 1,200 square foot units and a maximum height of 16 feet and a State-mandated 4- foot side and rear setbacks.
Historic Context Statement: 4LEAF worked with City’s consultant to get approved at City Council. This endeavor has been in the works for many years—the document is intended to give residents and other stakeholders a better understanding of the history and context of Sausalito's built environment and help guide future decisions about historic preservation.
Land Acknowledgement Statement/Policy
Agency Name: City of Sausalito
Contact Name: Chris Zapata, City Manager
Contact Telephone: (415) 289-4166
Contact Email: [email protected]
Contract Dates: 2022 - Present
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City of Foster City
Planning and Consulting Services
4LEAF provided the City of Foster City with a Planning Technician who oversaw both processing permits and plans under the direction of the Community Development Director. Main duties included but were not limited to:
Researching, reviewing, and preparing documents for minor architectural and design reviews.
Reviewing building permits for planning and external consistencies. Researching miscellaneous assignments for hiring ranking staff and department heads. Answering questions from the public via phone, email, or the public counter at City Hall. Conducting Planning Department inspections on an as-needed basis.
Current/recent project support:
Lantern Cove Apartment Redevelopment: Architectural Review, Planned Unit Development/Specific Plan “Concept Plan”, Development Plan, General Plan Amendment, and environmental review to add 420 new dwelling units and 518 new parking spaces on a 16.8-acre site. The site includes thirty-five (35) 2-story apartment buildings containing 232 dwelling units, a leasing/amenity building, and 482 parking spaces.
Pilgrim Triton Phase C/Laguna Vista Development: 70 townhousestyle condominium unit subdivision known as Laguna Vista, and 22 Workforce Housing Apartment units that will be owned by the City of Foster City. Project also includes the enlargement and completion of the Pilgrim Triton Plaza Park.
New Hotel Development: New hotel development approximately 83,190 sf, seven-story hotel and associates site improvements. Hotel to feature approximately 156 guest rooms and include a limitedservice restaurant and bar, meeting space, rooftop terrace, and uncovered garden deck. The building is to be constructed on a raised podium above ground-level parking and will be surrounded by a 141- space surface parking field.
Agency Name: City of Foster City
Client Name: Marlene Subhashini
Client Telephone: (650) 286-3239
Client Email: [email protected]
Contract Dates: 8/2021 - Ongoing
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City of Malibu
Planning, Public Works, and Fire Recovery
In addition to our other services, 4LEAF is providing the City of Malibu with two (2) Associate Planners and one (1) Senior Planner whose main task is reviewing residential development proposals, plans, and applications for the Woolsey Fire Rebuild and Recovery project. This information includes performing inspections of properties and structures for compliance with current City zoning codes and regulations and recommending improvements and rehabilitation programs.
Staff work with the City staff to coordinate outreach and educational meetings to speak to residents and local professionals. Staff also provided data analysis on application types received, approved, and pending for public dissemination and City meetings. Additional tasks include:
Providing a project manager to oversee routine
application projects including analyzing and evaluating site and architectural plans, performing technical
reviews, making recommendations, and providing
approval on applications and in-house reviews.
Processing permit applications and calculating
appropriate fees.
Preparing staff reports for the Planning Commission, City Council, various City committees, and advisory boards as directed, preparing research, reports, maps, and conducting briefs.
Conferring with architects, builders, attorneys, contractors, engineers, and the public regarding City development policies and standards; providing and clarifying information related to zoning, general plan compliance, signage, and other issues.
Conducting studies and needs assessments for the development of programs to address significant development issues.
Participating in coordinating City planning and development related activities with other City departments and with outside agencies.
Answering questions and providing information to the public; investigating complaints and recommending corrective action as necessary to resolve complaints concerning the City’s planning function.
Maintaining accurate records and files and performing additional planning duties as needed.
Agency Name:
Contact Name:
Contact Telephone:
Contact Email:
Contract Dates:
City of Malibu
Elizabeth Shavelson, Asst. to the City Manager
(310) 456-2489
[email protected]
1/2019 - Ongoing
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PLAN REVIEW SERVICES
4LEAF will provide Plan Review for any and all types of structures to ensure compliance with all adopted codes, local ordinances (including Tier 1 of Cal Green, if required) and State and federal laws that pertain to Building and Safety, and for compliance with the adopted International Code Council (ICC) Building, Plumbing, Electrical, Mechanical, National Fire Protection codes and standards, and the Accessibility and Noise and Energy Conservation requirements as mandated by the State of California Title 24, State of California Water Efficient Landscape Ordinance, the State of California Certified Access Specialist (CASp) compliance, and all other applicable ordinances. The types of projects we provide these services for include Single-Family Dwellings, large Multi-Family Mixed-Use Dwelling Units, Commercial, and Industrial.
Approach
We understand that the specific building plan review responsibilities will include, but are not limited to:
• Examining plans, drawings, specifications, computations documents, soils reports, and additional data; • Ascertaining whether projects are in accordance with applicable building and fire codes, and City ordinances, including but not limited to Title 24 and Title 25; • Performing such reviews as structural, MEP, green building, fire and life safety, grading and drainage; • Reviewing plans to ensure conformity to the required strengths, stresses, strains, loads, and stability as per the applicable laws;
• Reviewing plans to ensure conformity with use and occupancy classification, general building heights and areas, types of construction, fire resistance construction and protection systems, means of egress, accessibility, structural design, soils and foundations; and masonry; • Providing additional plan review services as requested by the City; • Conducting all plan review at the City Department or at a site mutually agreed upon in writing and; • Supplying all plan review staff with all code books and other basic professional references.
On- and Off-Site Review
4LEAF can supply Registered Professional Engineers to the City to work on-site performing structural plan review and non-structural reviews at the jurisdiction’s discretion. Our experience includes checking for compliance with the structural, life-safety, accessibility, plumbing, mechanical, electrical, fire, and local codes/ordinances.
Process Mapping
4LEAF aims to bring departmental processes together by identifying and eliminating obstacles to streamline processes. Our subject-matter experts visit each department within a jurisdiction to conduct an analysis of existing processes, identify how best to streamline separate departmental processes to improve workflow, and provide guidance and recommendations on an improved work plan. 4LEAF implementation staff work both onand off-site during this process and offer extensive training to existing municipal staff members on the use of a jurisdiction’s preferred permitting software.
We have a robust amount of experience with software that aids in the implementation of process mapping, such as e-PlanSoft, TRAKiT, EnerGov, Accela, and iWorQ.
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Task 1 – Project Tracking Set-up
The first step of our process will be to set up the project in our system to enable 4LEAF and the City of Sand City each to track the progress of the review. Our plan tracking procedures are designed to track each submittal throughout the review process and maintain accurate and comprehensive records for each submittal.
Task 2 - Complete Submittal Review
Upon receiving the plans from the City, 4LEAF will triage (preliminary plan review performed by 4LEAF plan review project lead) the submittal to verify that the submittal received is complete (i.e., all pertinent plans, calculations, reports, and other related documents) in order that we can begin our review. If the submitted package is incomplete, we will communicate with the City to discuss the deficient documents needed to proceed with our review.
Task 3 - Plan Review Assignment
After the triage process is performed and a complete package is verified, the project will be assigned to the most qualified Plans Examiner and a turnaround time will be established. We will log each application into our database the same day the plans are received to assure that they are routed in a timely manner and to allow for daily project tracking.
Task 4 - Plan Review
4LEAF will provide the project contact (Developer, Contractor, Architect, or Engineer) desired by the City of Sand City with a list of any items needing correction and clarification to comply with applicable building codes, ordinances, and regulations. A correction list will be created based on the missing codes and ordinances.
Task 5 - Quality Control
Prior to submitting the plan review correction list to the City, the designated plan review project lead will review the correction list for adherence to applicable codes and ordinances as well as for accuracy and completeness.
After completion of our quality control review a correction list will be e-mailed to a designated staff member at the City of Sand City or as directed by the City. The correction list and a 4LEAF transmittal form will include the following information: a description of the work, type of construction, occupancy group, square footage, number of floors, and sprinkler requirements.
Task 6 - Plan Review Rechecks
Plans received for rechecks will be reviewed for conformance. Our goal is to actively work with the designers to resolve all unresolved issues after our second review. If it appears that there are complicated issues that might cause a project to go beyond our second review, we will communicate directly with the designer to resolve these concerns.
Task 7 - Project Approval
Once the final plan reviews are completed and ready for approval, 4LEAF will organize the plans and supporting documents per the City of Sand City processing requirements and return them to the City, along with our letter of completion.
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Proposal to Provide On-Call Professional Services to the City of Sand City Page 11 Section 3: Scope of Work – Plan Review February 1, 2023
TURN-AROUND TIMES
4LEAF has a tremendous reputation for completing projects on-time and under budget. 4LEAF’s plan review team is widely recognized for quick turn-around times and prompt service. Off-site plan reviews are performed at our office, with plans transmitted by personal delivery or overnight service. The standard turn-around time is within 10 business days for residential plan reviews and within 10 days for commercial/industrial plan reviews; however, these timeframes are negotiable based on your needs. 4LEAF also provides Fire Plan Review services.
Type of
Plans
Transportation Initial
Review
Resubmittal
Review
Resubmittal
Review #2
Expedited
Review
Expedited
Resubmittal
*Residential < 24 Hours (pick
up & delivery) < 10 Days < 5 Days < 5 Days < 5 Days < 3 Days **MultiFamily< 24 Hours (pick
up & delivery) < 10 Days < 5 Days < 5 Days < 5 Days < 3 Days Commercial < 24 Hours (pick
up & delivery) < 10 Days < 5 Days < 5 Days < 5 Days < 3 Days ***Large
Commercial
> 15,000 s.f.
< 24 Hours (pick
up & delivery) Negotiable Negotiable Negotiable Negotiable Negotiable *Larger complex plan reviews can be negotiated to achieve the best possible pricing. 4LEAF has a proven track record of working with municipalities to provide expedited reviews with special discounted pricing.
Pick-up of all plans will be performed by 4LEAF staff within 24 hours of the City’s phone call or e-mail. 4LEAF prefers to pick-up and deliver the plans in person to communicate information that may be pertinent to the project and maintain consistent communication. At no additional cost, 4LEAF staff will transport the plans to and from the City upon a phone call to the 4LEAF office or simply e-mail [email protected]. 4LEAF’s EZPlan Review
EZPlan Review is our in-house tracking software that
acts as a communication tool between 4LEAF and
the jurisdictions we work with. The use of EZPlan
makes communication easy. This web portal allows
users visualize project due dates, notes, and status
updates so that projects can be followed from start
to finish. Additionally, 4LEAF provides electronically
stamped and uploaded copies of approved project
plans, a value which saves clients time and
resources. With the use of EZPlan, 4LEAF hopes to
provide a level of ease and transparency during the
off-site plan review process.
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Proposal to Provide On-Call Professional Services to the City of Sand City Page 12 Section 3: Scope of Work – Plan Review February 1, 2023 Document Control
When plans and documents are received for review, 4LEAF’s Plan Review Manager and Document Control Technician analyze the project, creates a job number, and completes a Job Setup Sheet. This form highlights both the jurisdiction, applicable contact information, and all project specific design criteria and notes. Jobs are then transmitted through 4LEAF’s easily accessed EZPlan Review Portal which tracks initial and subsequent reviews and is open for view by the client. The City and their customers can view 4LEAF’s plan review control log through 4LEAF’s EZPlan Review Portal.
Plans then get distributed for review to a 4LEAF team consisting of Plan Review Engineers, Architect (a licensed state professional) and/or an ICC Certified Plans Examiner, as applicable. Our staff then performs his or her function of analyzing the plans and documentation for effective conformance to the state codes, referenced construction standards, and City amendments. 4LEAF’s code review methodology is “The Effective Use of the Codes” reinforced through proprietary and jurisdictional checklists. When complete, the Plan Review Manager overviews the project for quality control purposes and forwards comments or approvals to the client’s predesignated contacts.
Off-Site Electronic Plan Review
Digital plan review allows 4LEAF the ability to review, markup and transport plans of any size electronically. We strongly encourage this service for our clients. This process delivers a high degree of cost effectiveness, time efficiency and a “green” and environmentally friendly system. Through our strong focus on utilizing this digital capability, we offer full access to all 4LEAF engineers and plans examiners company-wide, from any of our office locations. A protected online portal will be established to allow property owners, contractors, developers, businesses, designers, and stakeholders to submit plans electronically for review. Access to the online portal will be given to City staff for immediate access to information regarding project status during the review process. 4LEAF has successfully implemented and used Bluebeam for electronic review of files to help eliminate the use of paper and take the plan review workflow to a whole new level. 4LEAF’s offices are equipped with large scale monitors for easy review of plans. Bluebeam Revu combines powerful PDF editing, markup, and collaboration technology with reliable file creation.
Bluebeam integrates flawlessly with our Green Line approach for electronic and timely turnarounds resulting in permit issuance within 5-7 business days.
Additional Technologies
Having served more than 350 jurisdictions, 4LEAF and our staff are knowledgeable and have experience working with a variety of different technologies for Electronic Plan Review, Permit Tracking, and Building Inspections. 4LEAF’s experience with tracking technologies includes, but is not limited to:
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Proposal to Provide On-Call Professional Services to the City of Sand City Page 13 Section 3: Scope of Work – Plan Review February 1, 2023
BUILDING DEPARTMENT SERVICES
4LEAF has a proven track record of providing Permit Technician/Counter staff and Building Officials to jurisdictions. 4LEAF can deploy such staff on short notice and offer training programs for department staff, if required. Our staff encompasses the right combination of experience, education, and certifications.
Permit Technician
4LEAF Permit Technician Staff must be experienced and dedicated to serving the public at the Planning and Building Department counter. 4LEAF has numerous of Permit/Counter Technicians on staff, many who are currently assigned to Building Departments throughout the state. All staff will have the materials, resources, tools, and training required to perform the job. Typical Permit Technician duties include:
• Accepting plans for plan check
• Verification that plans are accurate and complete
• Calculating permit fees
• Explaining ordinances and procedures to owners, contractors, developers, architects, and general public • Assisting with preparation of permit applications
• Receiving plans for Planning and Building permits and route to various agencies (if requested) • Accepting complaints on code violations, process, and record complaints • Answering phone calls for field and office staff
• Processing inspection requests
• Maintaining files for building permits
• Operating the Building Department’s computerized information system • Inputting a variety of information, including building permits and inspections • Completing related duties and responsibilities as assigned by Building Official and Senior staff members Building Official
The 4LEAF Interim Building Official can provide in-house plan reviews to the City, limiting the amount of projects distributed to outside consultants and helping the City achieve significant cost savings. The Building Official will act as an adjunct staff member to the City and work with City personnel and various departments to perform professional building services including but not limited to plan review, permit technician, building inspection, and code enforcement.
Staff qualifications for this role include evaluating and documenting projects for compliance with applicable building standards and housing codes, on- and off-site plan review, staff augmentation, and other building department related tasks. Proposed staff for this role will be appropriately trained and certified for all work.
Placement Schedule
Building Department Staff Interim Full-Time
Permit Technician (ICC Certified) < 2 Days < 5 Days
Assistant Permit Technician/ Counter Staff < 2 Days < 5 Days Building Official < 2 Days < 15 Days
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Proposal to Provide On-Call Professional Services to the City of Sand City Page 14 Section 3: Scope of Work – Plan Review February 1, 2023
PROJECT EXPERIENCE
Plan Review and Inspection Services
City of Pacific Grove, CA
4LEAF is currently the City of Pacific Grove’s only Building Department Consulting Firm. Our duties include:
Chief Building Official
Building Inspection Services
Project Inspection Services
Building and Civil Plan Review Services
Permit Technician/Permit Processing
Traffic Engineering
Fire Review and Inspection Services
Code Enforcement Services
Planning
4LEAF was recently selected as the sole provider of Plan Review and Inspection Services for two major developments to be constructed over the next three years. 4LEAF will provide continuous inspection services and plan review for each project which will utilize 4LEAF’s internal system EZ Plan Review and GoFormz.
Pacific Grove Hotel
Plan Review, Inspection, and Project Management
4LEAF is providing the plan review, inspection, and Project Management on Pacific Grove's first new construction hotel project since 1983. This luxury four-star hotel will feature 102 guestrooms and suites with ocean views from all four floors, luxury amenities, and elevated Spanish colonial design. Amenities include a chef driven Restaurant and Bar, Day Spa, Expanded Fitness Center, Redwood Saunas with Himalayan Rock Wall, and Two Pro-Style Virtual Golf Simulators.
ATC Hotel and Commercial Project
Plan Review, Inspection, and Project Management
4LEAF is providing the plan review, inspection, and Project Management on a project to rep lace the existing 165,000 square feet of “factory outlet” and related uses with a new hotel and commercial uses. The hotel and commercial uses would provide 225 guest rooms in two primary guest wings ( Family/Group Wing and Executive Wing) with a restaurant and bars, meeting and gathering spaces, spa and fitness center and approximately 20,000 square feet of street retail uses along the Ocean View Boulevard frontage.
Client Name: City of Pacific Grove Key Personnel
Project Location: Pacific Grove, CA John Keuhl – Building Official Client Contact: Ben Harvey, City Manager Rich Deal, PE – Traffic Engineer Client Address: 300 Forest Ave, 1st Floor, Pacific Grove, CA 93950 Lisa Feliciano – Permit Tech Client Telephone: (831) 648-3190 Raquel Mays – Permit Tech Client Email: [email protected] Craig Tole – Consultant PM 179
Proposal to Provide On-Call Professional Services to the City of Sand City Page 15 Section 3: Scope of Work – Plan Review February 1, 2023 Plan Review and Inspection Services
City of Sand City, CA
4LEAF is currently the City of Sand City’s only Building Department Consulting Firm. Our duties include:
Chief Building Official
Building Inspection Services
Project Inspection Services
Building and Civil Plan Review Services
Permit Technician/Permit Processing
Traffic Engineering
Fire Review and Inspection Services
4LEAF was recently selected as the sole provider of Plan Review and Inspection Services for three major developments to be constructed over the next five years. 4LEAF will provide continuous inspection services and plan review for each project which will utilize 4LEAF’s internal system EZ Plan Review and GoFormz.
South of Tioga
Plan Review, Inspection, and Project Management
4LEAF is providing the Project Management, Plan Review, and Inspections on this mixed-use (residential
10.64 acre site bounded by Tioga Avenue to the northeast, California Avenue to the southeast, East Avenue to the southwest, and the Merle Street right-of-way to the northwest, and includes 356 multi-family residential units, 216 hotel units, and a restaurant.
There will also be a surface parking lot as well as a multi-story parking garage. Also included in this development, is a proposed new road that will be dedicated as a City Right-of-Way. The project will merge existing lots, abandon existing public rights-of-way, creates six new parcels (HI, HIA, H2, H2A, R1, and R-2), relocates an existing wastewater lift station, dedicates additional right-of-way to, or relocation of, existing streets, and dedicates right of-way for new public streets. The project will be separated into five (5)separate components.
1. Demolition ofmultiple buildings on approximately 41 existing parcels.
2. Completion of new public streets and rights-of-way, utility and infrastructure installation, and preparation of development pads on each of the projects newly createdparcels.
3. Construction of a five-story wood frame building consisting of a 216-room Hotel and restaurant with associated parking adjacent to the building
4. Construction of a seven-story wood frame building consisting of 125-unit multi-family residentialstructure.
5. Construction of a seven-story wood frame building consisting of 231 unit multi-family residential structure with an associated four story concrete parkinggarage.
Client Name: City of Sand City Key Personnel
Project Location: Sand City, CA John Keuhl – Building Official Client Contact: Vibeke Norgaard, City Manager Rich Deal, PE – Traffic Engineer Client Address: 1 Pendergrass Way, Sand City, CA 93955 David Meade – Fire Inspector Client Telephone: (831) 394-3054 xt 212 Caitlin Roeder – Permit Tech Client Email: [email protected] Craig Tole – Consultant PM 180
Proposal to Provide On-Call Professional Services to the City of Sand City Page 16 Section 3: Scope of Work – Plan Review February 1, 2023 Project Development Unit (PDU) - County of San Mateo, CA Building and Fire Plan Check, Fire Inspection, and Inspector of Record Services 4LEAF is currently performing Plan Check and Inspector of Record services for multiple projects on behalf of the County of San Mateo’s Project Development Unit. This $1 Billion program consists of up to 18 projects over the course of more than five years. 4LEAF is responsible for the combination inspections and inspection reports related to all projects including:
Regional Operations Center
The new 37,000 square foot, two-story Regional Operations Center (ROC) will be located on the County Center campus where the motor pool was once located. On a daily basis, the Center will house 9-1-1 Public Safety Dispatchers, an Emergency Operations Center, and the Office of Emergency Services. More importantly, the ROC will serve as a hub for public safety responders during major catastrophic events. The building will achieve LEED Silver certification from the U.S. Green Building Council and is the largest project funded to date by Measure K.
Skylonda Fire Station #58
This project consists of a barracks/office building consolidating the functions and operations of two existing structures into a single structure. The barracks/office building will contain administrative offices and related support spaces, conference and training rooms, a kitchen and dining room, dayroom, dorm rooms, fitness rooms, showers, and restrooms. A new primary vehicular access connection shall be provided to Skyline Boulevard to facilitate improved traffic sightlines and vehicle turning radiuses.
Animal Shelter
The County of San Mateo is constructing a new animal shelter that will be located at the Coyote point site of the current animal shelter to replace the existing shelter buildings. This Design-Build project will contain programmed space for a variety of mandated animal care services, limited community services, clinic services, and administrative services. The project currently underway will replace the existing facility with a new approximately 27,000 square foot animal shelter facility.
Additional Projects:
• County Office Building #3 • Parking Structure #2 • Portola House • Cordilleras • San Mateo Medical Center • Pescadero Fire Station • South San Francisco Health Center • La Honda Fire Station • Pine Street Project • Sanchez Adobe Visitors Center • Maple Street Homeless Shelter Client Name: County of San Mateo, PDU
Client Contact: Keith Anderson, Project Manager
Client Telephone: (650) 224-7119
Client Email: [email protected]
Completion Date: Varies by Project
Total Program Cost: ~$1 Billion
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PROPOSAL TO PROVIDE
TO THE
PROFESSIONAL SERVICES
CITY OF SAND CITY
SCOPE OF WORK -
CODE ENFORCEMENT
SECTION 2.3
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 17 Section 2: Scope of Work - Code Enforcement February 1, 2023 SECTION 2: SCOPE OF WORK - CODE ENFORCEMENT
Our Code Enforcement personnel are certified through the International Code Council, CACEO, and various training programs offered through accredited institutions. In addition, most of our personnel hold a PC832, ICC Property Maintenance and Housing Inspector, and/or CACEO certification. 4LEAF staff have the experience in working cooperatively with property owners and other responsible parties to bring properties and/or conditions into compliance with applicable bodies of law. Our team will be able to determine when voluntary compliance is not forthcoming from property owners or responsible parties. 4LEAF staff has experience in investigative practices that aid in substantiating a complaint exists on a property and in turn address verified violations through proper due process noticing. 4LEAF Code Enforcement Officers have experience in writing criminal citations and in working with legal counsel to assist in the successful prosecution of Code Enforcement cases either in criminal or civil court when necessary. We focus on nearly every area of Code Enforcement including but not limited to the following categories detailed below.
SCOPE OF SERVICES & AREAS OF ENFORCEMENT
Blight Enforcement
Our team works to identify and enforce State and Local laws pertaining to the maintenance of private property.
Through field contact with tenants and property owners, our team works efficiently in providing guidance to address blighted conditions such as overgrown weeds, trash and debris, and graffiti.
Business License Enforcement
4LEAF is trained to identify businesses that operate without a required business license making them noncompliant with municipal code requirements.
Classroom Training with CEUs
You can often find members of 4LEAF training nationally for organizations such as the International Code Council (ICC), American Association of Code Enforcement (AACE), California Association of Code Enforcement Officers (CACEO), and other nationally recognized affiliations of these chapters. 4LEAF’s training leads include Cecilia Muela, Pete Roque, Nick Henderson, CBO, and Anthony Mullins. Our instructors are nationally accredited and offer Continuing Education Credits (CEUs). They currently cover training topics such as:
o Building Blocks for Code Enforcement Officer Success
o Building Inspections and Code Enforcement – A Powerful Duo o Case Management from Start to Finish
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 18 Section 2: Scope of Work - Code Enforcement February 1, 2023 o Effective Communications – Bridging the Gap with External and Internal Customers o IPMC 2021 or 2018 Exam Prep
o IPMC 2021 Overview
o Mold, Lead, Asbestos, & Vectors Enforcement
o Officer Safety – Drug Awareness for the Code Enforcement Officer o Officer Safety – Encountering Mental Illness in the field of Code Enforcement (Self-Care) o Officer Safety – Field Inspection Protocols for the Code Enforcement Officer o Officer Safety – Gang Awareness for the Code Enforcement Officer o Officer Safety – Hazardous Building Safety for the Code Enforcement Officer Community Outreach
4LEAF will review current outreach and engagement initiatives and make appropriate recommendations to the municipality. Items typically reviewed include:
o Opportunities for involvement in community events
o Creation of pamphlets and marketing material
o Social media engagement
o News media outlets
o Municipal Code Enforcement web page
o Review of frequently asked questions
Department Assessments
4LEAF is working with several Community Development Departments to provide assessments of their code units reviewing closely staffing levels, Standard Operating Procedures (including branding/rebranding, target issues, prioritization of existing code enforcement cases, community engagement strategies, written materials such as compliance notices, postings and door hangers, data entry, inspection response time management, and training programs. 4LEAF provides in-house assessments and regular meetings with directors and municipal stakeholders for plan implementation and execution.
Hearing Officers
4LEAF has Hearing Officers available for contracted municipalities. Our seasoned officers are trained to understand the existing Municipal Code as well as other adopted codes and make findings as to whether a violation exists. Results may include fines or granting additional time for compliance for respondents with unusual hardships.
Inspections
4LEAF can provide certified and qualified staff to perform inspections in a lawful manner that respects the reasonable expectations of privacy and security of residents and their properties. Inspections conducted will determine if conditions on the properties are compliant with applicable sections of the current editions of the International Property Maintenance Code (IPMC), Municipal Code, Zoning Code, California Health and Safety Codes, CA Residential Building Code, and trade codes.
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 19 Section 2: Scope of Work - Code Enforcement February 1, 2023 Upon assignment, 4LEAF’s Code Enforcement staff will be ready to respond and provide compliance solutions to code compliance cases new and existing with minimal impact to current processes. 4LEAF Code Enforcement Inspectors are qualified to do the following:
o Perform inspections for violations of Building Codes and Ordinances as adopted by the municipality. o Research properties for prior approvals, permits, and general information relating to violations. o Investigate and take necessary action when a violation of municipal codes exists o Consult with the City Council as required, when requested by the Code Enforcement Manager/Director, and when escalated enforcement may be required.
o Comply with the municipality’s procedures for reporting inspection results and deficiencies. o Using municipal inspection correction forms.
o Making appropriate entries while resulting inspections, capturing case status communications, and login-in of notices sent to responsible parties.
o Conduct follow-up inspections as needed.
o Notify the responsible parties of other agency approvals prior to closing a code enforcement action. o Maintain records as needed for the efficient and effective operation of the municipality. o Meet with members of the general public and municipal staff on a daily basis as needed.
Lead Abatement
Although lead-based legislation has been around since the 1950s, nationwide regulation was not enforced until 1971 with the introduced of the Lead-Based Paint Poisoning Prevention Act (LBPPPA), which prohibited the use of leadbased paint in residential structures constructed or rehabilitated by the Federal government or with Federal assistance. In 1973, an amendment to the LBPPPA stated that lead-based paint should be removed from pre-1950 housing and structures. Our Code Enforcement team follows the requirements set forth by the State of California to ensure proper lead safe practices are taking place in removal of lead-based paint to protect citizens from exposure.
Additionally, our team participated at the National Healthy Homes Conference in 2022 in Baltimore, MD, where we spoke on the importance of Code Enforcement for Lead Paint Abatement Programs to safeguard communities.
Massage Parlor Enforcement
This scope can often be utilized for undercover stings with partnering agencies for businesses that not only violate criminal laws but also building code violations, licensing requirements, and potential massage parlor ordinances in the jurisdiction. Early detection is vital in these cases and steps include background checks and comparable effort applied. Our team has lead programs specializing in organizing and mitigating illegal actions in massage parlors.
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 20 Section 2: Scope of Work - Code Enforcement February 1, 2023 Parking Enforcement
4LEAF has the capabilities of providing parking enforcement. This includes:
o Enforcement of State and municipal parking regulations. o Removal of abandoned and nuisance vehicles from the public right-of-way. o Issuance of parking citations and review of contested citations.
Policy Review
4LEAF shall review and read current policies and procedures and define policy clearly as it sets the tone for your municipality’s Code Enforcement Program. A clear policy communicates to everyone what is expected of them—whether it’s how they handle complaints, how Code Enforcement Officers conduct compliance reviews, or any other aspect that the municipality needs to have communicated and consistently followed. 4LEAF will develop a well-defined user-friendly format.
Program Analysis
4LEAF understands that Code Enforcement is an essential part of a community’s public health and safety, providing a regulatory mechanism to ensure the public’s overall wellbeing. Addressing the community’s concern in a timely and efficient manner is paramount to a successful Code Enforcement Program. 4LEAF personnel will perform the following:
o Conduct investigative inspections of unpermitted activities o Create standard operating procedure if required
o Conduct review of all administrative/misdemeanor citations o Provide guidance for resolution of high case load along commercial corridors o Assist with complex code enforcement cases
o Provide guidance for resolution of existing cases
o Provide field training if required
o Provide in-house training of traditional code enforcement protocols o Create an outreach plan to address and deter unpermitted vending/commercial corridor violations Program Development
4LEAF project managers have the experience in working cooperatively with our clients to further develop and enhance their Code Enforcement Program when requested. Our project managers are currently working with local jurisdictions to revamp and strengthen Code Enforcement Programs to gain voluntary compliance, provide resident education, and effectively communicate with the public. 4LEAF staff takes an approach in recommending, implementing, and executing program assessments, creation of policies and procedures, creation of training manuals for new hires, providing educational materials for the public, providing staff with up-to-date training, teaching current Code Enforcement staff options for compliance using adopted ordinances, and providing recommendations to cases that may require specialized expertise that may be sensitive in nature. 4LEAF staff also has designated staff tracking recent legislation to ensure the municipality follows state regulations and clients are aware of upcoming legislation that may affect their Code Enforcement Program.
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 21 Section 2: Scope of Work - Code Enforcement February 1, 2023 Project-Specific Assignments
Our Code Enforcement Directors are often brought on board by municipalities to provide Code Enforcement consulting for on-going cases that need a fresh set of eyes and assessment. Our personnel can review current case files and compare that to the existing Municipal Code and Department’s Standard Operating Procedures.
Once the review is conducted, 4LEAF provides a report of our findings and our mitigation strategies related to that case. 4LEAF personnel is made available to speak with stakeholders such as Department Heads, Council, and other elected officials. If necessary, we can also provide Expert Witness Testimony.
Rental Housing Enforcement
Our team will assist with the inspection of residential rental properties on a routine and comprehensive basis to assure the overall quality of the rental meets the requirements of the Health and Safety Code and property maintenance guidelines. This includes educating property owners, property managers, and tenants about those requirements.
Review and Develop SOP’s
4LEAF routinely works with Code Enforcement Divisions to review the current Standard Operating Procedures and provide suggestions for enhancing SOP’s. Our staff can also help implement and train the existing municipal personnel in these changes. Currently, we are providing these services for California municipalities such as the cities of Napa, Lathrop, and Artesia.
Staff Augmentation
4LEAF specializes in providing personnel to municipalities on a part-time or full-time basis. We provide staff with training opportunities, study materials, company phones, and energy- saving fleet vehicles. 4LEAF’s Code Enforcement Staff Augmentation personnel categories include:
o Department Director
o Department Manager
o Senior Code Enforcement Officer
o Code Enforcement Officer II
o Code Enforcement Officer I
o Code Enforcement Coordinator
o Hearing Officer
Short-Term Rental Programs
One of the fastest growing programs within Code Enforcement Divisions is short-term rentals. 4LEAF assists with compliance with municipal short-term rental ordinances that require property owners to adhere to several rules including limiting the number of daytime and overnight guests, prohibiting events and amplified sound, and posting specific rules and emergency information, among others.
Stormwater Enforcement
4LEAF provides Stormwater Enforcement. This includes the visual inspection of infrastructure dedicated to the management of rainwater. Violations would include having inadequate erosion/sediment controls for property, failing to conduct/document inspections, illegal dumping, overgrowth of vegetation, and flooding. 187
Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 22 Section 2: Scope of Work - Code Enforcement February 1, 2023 Substandard Housing
One of the major areas of code enforcement throughout the U.S. is the inspection of Substandard Housing. 4LEAF Code Enforcement Officers routinely inspect and report any violations to housing codes including substandard and uninhabitable conditions, accumulation of trash and debris, lack of utilities, property maintenance, mold, and rodent/insect infestations.
Tobacco Enforcement
4LEAF has experience working within Tobacco Enforcement programs to ensure retailers are properly licensed/permitted for the sale of tobacco and such establishments are posting proper notification such as STAKE Act stickers at each point of sale. In addition, we can assist in compliance with work-place smoking and vaping prohibitions.
Field Staff Training
Aside from the classroom training, 4LEAF personnel is also available to conduct field training. This includes ridealongs with municipal personnel. This hands-on approach is often effective for training in communication, technical training, and enforcement of Municipal Codes.
Vendor Enforcement
4LEAF personnel are trained to enforce State and Local laws regarding unpermitted vending activity, issuance of Administrative Citations to vendors, generating inspection reports, testify at hearings, and provide strategic planning for large scale vending activities associated with entertainment venues. Often, this can include property the municipality owns or controls for areas such as vending like food or merchandise. This includes areas such as:
o Parks
o Public Right of Ways (such as sidewalks)
o Areas outside permitted Vending Locations
Zoning
4LEAF personnel can work with Departments to help determine whether project plans have been executed according to the conditions of approval for approved projects. Examples include:
o Construction of a building that is not allowed in a particular zoning designation. o Building a structure (or an addition to a structure) that is too tall or that obstructs another person’s view or access to light/air space.
o Conducting various operations in non-designated areas, including manufacturing, packaging, selling, growing, labeling, and other business/industrial activities. o Living in spaces that are not designated as residential areas. o Creating amounts of pollution or noise that exceed local limits. o Adherence to set back and lot coverage requirements.
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 23 Section 2: Scope of Work - Code Enforcement February 1, 2023
PROJECT EXPERIENCE
City of Lathrop
Code Enforcement and Building Department Services
Since 2015, 4LEAF has been working with the City of Lathrop in several capacities including Code Enforcement, Plan Review, Inspections, and Interim Chief Building Official to assist the community in helping its customers update their construction to maintain compliance with the current codes, especially those who did not go through a formal permitting process. 4LEAF is assisting Lathrop with Municipal, Zoning, and Building Codes on public and private property throughout the City. Code Enforcement works to administer a fair and unbiased enforcement program, improve the overall appearance of the City, and works with residents, neighborhood associations, public service agencies, and other City departments to facilitate voluntary compliance with City codes, and correct municipal code and land use violations.
Code Enforcement Department Assessment
4LEAF is currently working with the Department Director to evaluate and develop the Code Enforcement Division’s Standard Operating Procedures to ensure enforcement is able to be carried out per the City’s Municipal Code. This includes the development of enforcement strategies and materials crucial to daily activities. Pete is focusing on several areas of enforcement, including:
• Abandoned Vehicles
• Air Pollution
• Graffiti
• Noise Complaints
• Standing Water / Water Waste
• Public Nuisance Violations
• Field Training Existing Staff
Building Department Consulting
In addition to Code Enforcement, 4LEAF has also provided as-needed consulting services to the City of Lathrop’s Building Division. 4LEAF has provided such services as:
• Interim Building Official Services
• Staff Augmentation for Building Inspection and Permit Technicians • Off-Site Plan Checking Services
Client Name: City of Lathrop
Project Location: Lathrop, CA
Client Contact: Teresa Vargas, City Manager
Client Address: 390 Town Centre Drive / Lathrop, CA 95330 Client Phone: (209) 941-7229
Contact Email: [email protected]
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 24 Section 2: Scope of Work - Code Enforcement February 1, 2023 City of Santa Rosa
Code Enforcement
4LEAF provides the City of Santa Rosa with two full-time Code Enforcement Officers, Milissa Hughes and Eric Stephens, to perform as-needed services for the City. The City’s Code Enforcement Division is dedicated to working in partnership with residents, tenants, landlords, and business owners to promote and maintain a safe and desirable living and working environment.
Additionally, the Division is responsible for ensuring that City codes are implemented on private property to address general health, life, fire, and safety issues facing residents.
A large undertaking includes an assignment to review 200+ backlog cases involving files that had fallen through City cracks due to officer resignations/retirees or were not re-assigned to other officers. Milissa works with the City’s Senior Code officer to determine which cases can be closed or if an updated letter must be sent to the owner for follow up.
Additional responsibilities for this project include updating the City’s database with notes and creating notices to be mailed to the property owner or tenant. Case violations consist of construction without obtaining permits (garage conversions, remodel, electrical, plumbing), expired permits, cannabis grows, substandard conditions, non-operable vehicles, trash/debris, site planning, historical landmark alterations, etc.
An additional assignment for the City that began in September 2022 includes addressing short-term rentals (STR), which entails on-call (24-hour) and after-hour response, processing a backlog of 100+ STR cases, addressing new cases and complaints, data collection, and issuing citations (30+ to date).
Common violations our Code Enforcement Officers address for as-needed services include the following:
• Animal violations
• Unpermitted work
• Cannabis cultivation
• Graffiti
• Home business
• Overgrown vegetation
• Signs
• Short-term rentals
• Substandard housing
• Vehicle storage
By working together with the community, 4LEAF and the City’s Code Enforcement team help reduce crime, protects the health and well-being of residents, helps maintain property values, and preserves and enhances our community for future generations.
Client Name: City of Santa Rosa
Project Location: Santa Rosa, CA
Client Contact: Maraskeshia Smith, City Manager
Client Address: 100 Santa Rosa Avenue / Santa Rosa, CA 95404 Client Phone: (707) 543-3030
Contact Email: [email protected]
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Proposal to Provide On-Call Professional Services to the City of Sand City Page 25 Section 2: Scope of Work - Code Enforcement February, 2023 City of Rohnert Park
Code Enforcement, Plan Review, Inspection, Planning, Permitting, and Building Official Services Since 2019, 4LEAF has been working with the City of Rohnert Park in several capacities including Code Enforcement, Plan Review, Inspections, Planning, Permitting, and Interim Chief Building Official to assist the community in helping its customers update their construction to maintain compliance with the current codes, especially those who did not go through a formal permitting process.
The City’s Code Compliance Division works with the community to ensure that the intent of the City’s Zoning, Building, and Nuisance Abatement Ordinances are consistently met. 4LEAF’s goal is to help the City maintain a healthy, safe, and clean environment and preserve the quality of life for residents and businesses. 4LEAF works in partnership with the City, its citizens, and business owners to ensure the City remains safe and compliant.
We have two dedicated Code Enforcement Officers, JorDann Crawford and Jennifer Keleher, and one Senior Code Enforcement Officer, Cecilia Muela, performing services at the City on an as-needed basis. Our Code Enforcement services include:
• Working with Code Compliance Officers from the City to help with their caseload, including researching and doing background checks on a property to determine next steps. • Performing inspections, writing inspection reports, and generating notices of violation. • Working with other departments within the city.
• Providing direction to constituents to help them come into compliance. • Working with the Building Department to ensure we are giving accurate information about permits. • Working with permit technicians on open code cases.
• Data entry for compliance cases
Building Department Consulting
In addition to Code Enforcement, 4LEAF has also provided as-needed consulting services to the City of Rohnert Park’s Building Division. 4LEAF has provided such services as:
• Interim Building Official Services
• Combination Building Inspection Services (Residential and Commercial) • Off-Site Plan Checking Services
• Permit Technician Services
Client Name: City of Rohnert Park
Project Location: Rohnert Park, CA
Client Contact: Mary Grace Pawson, Development Services Director Client Address: 130 Avram Avenue / Rohnert Park, CA 94928 Client Phone: (707) 588-2226
Contact Email: [email protected]
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PROPOSAL TO PROVIDE
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CITY OF SAND CITY
SCOPE OF WORK -
INSPECTIONS
SECTION 2.4
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SECTION 2: SCOPE OF WORK – INSPECTION
INSPECTION SERVICES
4LEAF has a team of more than 200 ICC Certified Building Inspectors, OSHPD/DSA Inspectors of Record, Fire Personnel, and Construction Inspectors working on various contracts. 4LEAF has a team committed to work throughout California who will remain for the duration of projects to ensure we capture the goals and performance that have made our inspection system successful.
We maintain the largest database of qualified inspectors of varied qualifications. Inspectors vary from current full-time inspection staff, idle staff (temporarily between assignments), and pre-qualified staff which include inspectors who are available subject to client demand. 4LEAF’s inspectors are all ICC Certified and experienced working within a municipal work environment. 4LEAF will provide inspectors with all the necessary tools, equipment, and current code books sufficient to facilitate all required inspections. 4LEAF can provide interim or full-time inspectors same-day or within one business day—simply call, email, or text our assigned Project Manager for an immediate response. Our on-call database is utilized for all our clients for as-needed requests.
Periodic Inspection Services Available Next Day
4LEAF can fulfill inspection requests immediately upon request including same day. 4LEAF has a wealth of local and available inspectors ready to serve the City. In addition, 4LEAF has a proven track record of providing such services to a number of different building departments.
Part-Time Inspection Services Available Next Day
4LEAF will provide the City with part-time inspectors upon request. 4LEAF can provide part-time staff within 24 hours of request for any duration of time. 4LEAF’s Project Manager will work closely with the department to identify the right personnel and determine the appropriate work schedule.
Full-Time Inspection Services Available Two Days or Less 4LEAF can provide full-time inspectors upon request. 4LEAF provides this service regularly to many clients throughout Northern California, Southern California, the Central Valley, Central Coast, Sacramento Valley, Peninsula/South Bay, East Bay, and North Bay.
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Project Specific Inspection Services Available Two Days or Less 4LEAF is often tasked with providing inspection services to large projects on behalf of municipalities. 4LEAF currently handles large-scale projects for such clients as the City of Palo Alto, City of Cupertino, etc. These projects are developer funded into a separate City account which is distributed to 4LEAF using a separate invoice and contract number. This is particularly helpful to fast paced projects looking for continuous inspection services over a short period of time (i.e. 6 - 36 Months).
GOFORMZ
4LEAF will implement the GoFormz software for inspection requests. With licenses owned by the City, 4LEAF’s Administration team will prepare inspection requests and inspection results documenting construction activity. In addition, 4LEAF will be able to extract information and provide detailed monthly reports detailing the construction activity. The reports will be detailed to identify contractors, subcontractors, work progress, pictures, and a detailed explanation of the field activities.
GoFormz allows every piece of information collected on a project to be accessible by all staff as every form is stored securely and safely in the Cloud. The information can be accessed through a user’s web account where they can view any inspection report and run reports on project data. The information can be accessed through a user’s web account where they can view any inspection report and run reports on project data.
The inspector will be able to leave detailed notes under the inspections and observations box and instantaneously attach pictures to the report to show the item inspected. The inspector will also be able to sign the report by hand on the iPad through the mobile signature block and pictures taken from the iPad are stored on the inspection document.
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PROJECT EXPERIENCE
City of Cupertino, CA
On-Call Plan Review, Fire Plan Check, and Inspection Services 4LEAF performs on-call building inspection, plan review, and fire plan review services for the City of Cupertino. 4LEAF has completed numerous residential and commercial plan reviews.
Apple Campus 2
4LEAF provided the Building, Fire, and Public Works Department Inspection services on the largest private commercial construction project in the Country. 4LEAF was tasked with mobilizing a project team of more than 20 Building, Fire, and Public Works Inspectors, Project Administration Staff, and Engineering team for this more than $6 Billion project. 4LEAF was responsible for coordinating the inspections in relation to the City’s permits and ultimately packaging milestones of the project for occupancy approval from the City’s Chief Building Official. The project included:
• Main Building – The Main Building accommodates up to 12,000 employees and comprises approximately 2.8 million sf.
• Corporate Fitness Center – Comprising approximately 100,000 sf. • Corporate Auditorium – Comprising approximately 120,000 sf and will hold up to 1,000 people.
• North and South Parking Structures – Two above-grade parking structures of approximately 6,000 spaces.
• Central Utility Plant – Integrated parking structure and serves all buildings on the Main Building site. • Phase 2 Research and Development Buildings – 600,000 sf of office, research, and development and two separate above ground parking garages.
Vallco
4LEAF was also selected to perform inspections for the $2.2 Billion Vallco project, which will provide approximately 430,939 sf of new retail along with 2,402 residential units and 1,981,447 sf of office with eleven (11) 22-story mixed-use high-rise buildings connected by a 30-acre green roof spanning the majority of the Vallco property.
4LEAF performed a review on the Main Street Cupertino Project. The 17.4 acre Downtown Cupertino project includes 130,000 square feet of retail space, 100,000 sf of office space, and 160 units of high-end senior Housing, and a 250-room hotel.
Agency Name: City of Cupertino
Project Dates: 2010 - 2018
Client Contact: Albert Salvador, P.E., C.B.O., Chief Building Official Client Telephone: (408) 777-3328
Contact Email: [email protected]
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City of Palo Alto, CA
Building Inspection, Permit Technician, Plan Review
Since 2007, 4LEAF has provided several combination inspectors to assist the City staff with routine daily inspections for commercial and residential properties located throughout Palo Alto. Our inspection services vary from full-time to temporary part-time staff.
On-Site Plans Examiners
Since 2010, 4LEAF has provided on-site plans examiners for the City of Palo Alto. All Plans Examiners are registered Engineers in the State of California and are responsible for reviewing larger projects between $100,000 to $50,000,000 under the direction of the Chief Building Official. In addition, they will also assist the Permit Counter with over-the-counter plan reviews and general questions from the public. Some of the most recently reviewed projects include Skype, Stanford Medical Center, Technology Credit Union, and VMware. 4LEAF is currently reviewing and inspecting the following projects:
Stanford Biomedical Innovation Building – $126 Million
New research laboratory building for Stanford University School of Medicine. Fourstory above garage and one below grade for a total of 216,647 SF. Wet-bench research laboratories and associate support spaces, faculty offices and open office spaces workstations, conference rooms and staff amenity spaces. 2600 El Camino Real – $13.5 Million
New four-story 62,616 SF office building over one level of basement garage parking (36,957 SF) office is structurally connected to a two-story above grade parking garage (24,059 SF)
City of Palo Alto Public Safety Building – $84 Million
New three-story, 136,873 SF City of Palo Alto Public Safety Building will have 2 levels of underground parking and will house the Police Department, 911 Emergency Dispatch Center, the Emergency Operations Center, the Office of Emergency Services, and the administration needs of the Fire Department.
744 San Antonio Rd. – $42 Million
Courtyard by Marriott and an AC Hotel by Marriott. Two, five-story hotels (164,764 SF) hotels offering a combined 294 rooms with surface and underground parking.
ISO 1 Rating
With approximately 13 full-time personnel working at the City of Palo Alto, 4LEAF was instrumental in the program put in place to achieve an ISO 1 Rating. In March of 2015, Palo Alto became the 8th City in the Country out of 14,000 Building Departments to achieve this status.
Client Name: City of Palo Alto
Project Dates: 2007 - Present
Client Contact: George Hoyt, CBO, Chief Building Official Client Telephone: (650) 329-2368
Contact Email: George.Hoyt @CityofPaloAlto.org
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City of Hollister, CA
Plan Review, Permit Technician, and Inspection Services 4LEAF has been providing full Building Department Services to the City of Hollister since 2012.
Currently, 4LEAF has four full-time employees at the City who perform Building Official, Building Plan Check, Building Permit Issuance, and combination Building Inspection services as would be expected as a standard function of a Building Department. 4LEAF also provides offsite Plan Check and Fire Plan Check services.
Services provided to the City include:
• Combination inspections to verify with City of Hollister’s latest adopted and amended Title 24 California Building Codes, parts, 2,3, 4, 6, 8, and 12 covering structural, fire, life-safety, disables access, energy conversion, plumbing mechanical and electrical installations. • Off-site plan review. 4LEAF’s off-site plan review team completes residential and commercial plan reviews on any projects not performed by on-site personnel. Plans include an initial review and subsequent rechecks. All pick-up or shipping expenses are covered by 4LEAF. All initial plan reviews for residential, commercial, and large commercial are completed within (10) working days of submittal. Subsequent reviews are completed within (5) working days of the resubmittal. • Preparation of all building permits and related paperwork to be submitted to the City for collection of permit fees.
• Collection of all fees for building inspection and review services at Building Department office and submits to the City’s Finance Department all received payments by the close of each business day. • All inspections completed within one (1) working day of request by a permit holder for any work which requires a building permit.
• Certification in writing that each inspection performed and authorized as complete, conforms to all applicable local, State, and federal building codes, ordinances, regulations, and requirements, and that the work is in conformity with applicable approved plans and specifications. • Fire plan checks of alarm permits, fire sprinkler systems, hood system, and underground storage tanks for compliance with all applicable, local, state, and federal codes. Provides all approved plans to the City fire department to make inspections. Collects fees for fire plan checks, fire permits and fire inspections.
Agency Name: City of Hollister
Contact Name: Brett Miller, City Manager
Contact Telephone: (831) 636-4300
Contact Email: [email protected]
Date of Service: 2012 - Present
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PROPOSAL TO PROVIDE
TO THE
PROFESSIONAL SERVICES
CITY OF SAND CITY
SCOPE OF WORK -
PUBLIC WORKS
SECTION 2.5
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 31 Section 2: Scope of Work – Public Works February 1, 2023 SECTION 2: SCOPE OF WORK – PUBLIC WORKS
Our team developed its project and construction management project approaches from years of field experience providing the overall administration of the construction process. 4LEAF fully understands the construction process, works proactively to identify problems early, and mitigates each risk before it affects the project performance goals. The following work plan details our team’s construction management and inspection approach to achieve the City’s projected goals.
CONSTRUCTION MANAGEMENT
PRE-CONSTRUCTION
Constructability reviews and alternative construction methods allow for cost and schedule savings. Upon receiving a notice-toproceed (NTP), our team will conduct a thorough constructability review that will focus on anticipating issues in the field and resolving them through fast and flexible problem solving. This approach will result in timely completion of the work, claims avoidance, and reduction of public inconvenience.
Within a week after the review is complete, our CM team will meet with the City and design team to discuss any comments. To mitigate risks, our team will perform a preconstruction job walk and identify additional work items. The team will confirm project quantities and actively monitor removal, rehab, and/or replacement.
Our team will schedule, coordinate, and conduct a pre-construction conference with the City, Contractor, design engineer, utilities, and other stakeholders. An agenda will then be prepared in advance to notify attendees of key items for discussion. At the pre-construction meeting, we will discuss special contract and/or concerns, and establish the protocol to be used throughout the project. The meeting will highlight the contractor’s responsibility for items such as order of work, permit and environmental agreements, safety and access, progress pay requests, labor compliance, submittals, RFIs, CCOs, quality control, materials certification, schedule updates, and weekly meetings. We will review the baseline schedule and verify that it meets all the required information prior to issuing the NTP to the contractor.
SCHEDULING
Our team will maintain a master project schedule to include all completed and scheduled work. We will provide updates on anticipated closure, detours, etc. The team will also provide updates to the City on construction progress and any other pertinent project information through monthly progress reports.
This update will show current conditions and revisions required by actual progress.
The monthly progress billing will be tied to the construction schedule. Work activities and material deliveries will be assigned the correct completion percentage by the Contractor. This will be reviewed by the Construction Inspector and discrepancies will be addressed. If necessary, the Contractor will revise and resubmit the schedule 199
Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 32 Section 2: Scope of Work – Public Works February 1, 2023 of values. This process ensures the Owner is accurately billed for the completed work monthly. We will approve the monthly construction schedule, including activity sequences/durations, schedule of submittals, and schedule of delivery for products with long lead-time.
PROJECT IMPACTS
We will work proactively to eliminate or reduce project impacts from change orders by providing first-line management of CCO administration including review and evaluation of CCO requests; independent estimates; project mitigation such as possible alternatives and negotiation as the City’s advocate; written approval from the City’s Construction Manager prior to approval of any extra work; investigation and inspection of site conditions that differ from those described in the contract documents; schedule impact and analysis and verification; recommendations to the project Owner on acceptance; impact mitigation; review of submittals in support, and recommendation for resolution, of claims and disputes; and verification of costs.
REVIEWS
The Construction Manager will perform on-going review throughout the project to avoid any potential claims. If claims arise, the Construction Manager will work with the City and Contractor to find the best solution to resolve any claims in a timely manner. The Construction Manager and Inspection staff bring a detailed understanding of the City’s processes for administering CCOs per the City’s standards & procedures. We will work closely under the direction of the City’s Construction Manager with the contractor to verify that change orders are processed and executed promptly by the contract documents and City’s procedures. Inspectors will verify all work performed under time and materials, including equipment, contractor crew, and field measurements quantities.
The Construction Manager will perform a review and recommendation for any contractor change orders.
STATUS UPDATES
The Team will provide a monthly status update on the project construction budget, indicating actual costs for completed activities and work in progress. We will also include estimated costs for uncompleted work. This monthly report will identify variances between actual and budgeted or estimated costs and shall advise the City if any actual construction costs have exceeded or will exceed the project construction budget for the entire project or any project component. We will work closely with the contractor to ensure any issues are properly documented and corrected. We will review the engineer’s estimate for accuracy.
The project budget will be closely reviewed and monitored, and the team will communicate any anticipated changes to the City. Strict compliance with the original scope of work and initial construction cost budget can be achieved through continuous, and timely communications with City staff. Our key members are immediately available and committed to fully staffing the project through completion to provide a quality project delivered on time and within budget. We will anticipate staffing needs and adjust our staffing as project needs change. Our Construction Manager will regularly evaluate construction management staffing to ensure resources are where they are most effective.
COST MANAGEMENT
Our team will track the value of the completed work to ensure accurate and detailed monthly progress billing by the Contractor and will proactively manage the change order process. Inspectors will verify all work performed under time and materials, including equipment, contractor crew, and field measurements quantities. We will 200
Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 33 Section 2: Scope of Work – Public Works February 1, 2023 oversee all authorized work performed under unit costs and additional work performed based on actual costs of labor and materials of a force account.
PROGRESS MEETINGS
The construction management team will hold weekly construction/progress meetings with the contractor, City, and stakeholders to discuss current construction activities, contract issues, progress, procedures, problems, change orders (COs), submittals, request for information (RFIs), deficiencies, and go over the “look ahead” schedule for upcoming work.
PROJECT CLOSEOUT
We will prepare a final report detailing the work completed, costs, changes, warranties, and documentation provided to the City. All project documents will be delivered to the City at Project completion. The report will also include a section on future suggestions and lessons learned. Our Construction Manager will take a proactive approach at processing close-out documentation including completion of final punch list items, guarantees/warranties, as-built plans, commissioning, subcontractor liens, retention, and final acceptance/certificates of completion, orderly transfer of key records and documents, resolution of outstanding issues, final payment preparation and processing along with final acceptance or record drawings. We will schedule and oversee the warranty repair requests within the one-year warranty. We will determine if any defects or imperfections are warranty issues. Upon completion of the project, we will provide the City with both hard and electronic copies of project documentation.
INSPECTION SERVICES
Our team will make on-site inspections to check the quality and quantity of the work performed by all trades and guard the City against defects and deficiencies in the work by the Contractor. As necessary, our team will inspect construction means, methods, techniques, and sequences to evaluate the Contractor's compliance with the intent of the construction documents and recommend necessary remedial action to the Contractor.
REPORTING
Our team of proposed Engineers and Inspectors have the knowledge, skill, and experience to inspect all the anticipated construction operations for this contract. Throughout the project, our inspectors will review contract documents, plans, and permits. Inspectors will monitor and enforce construction noticing requirements. The inspectors will use their expertise to provide field conflict resolutions. The inspectors’ primary duties will be to inspect and verify all work in place meets the requirements of the contract plans and specifications, traffic control plans, shop drawings, COs, and O&M manuals as well as maintenance of project documentation.
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Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 34 Section 2: Scope of Work – Public Works February 1, 2023 We will verify that all work conforms with the requirements and identify any issues of non-compliance with the applicable codes. Inspectors will meet with the project design team, City’s consultants, and City staff to work out any problems and resolve issues quickly and efficiently. The team will make recommendations to the City for any required special inspection or testing not in compliance with the provisions of the contract documents.
The proposed staff will complete daily reports and progress reports for the City. Daily reports will include equipment, crews/personnel, weather, contractor’s work on the site, work accomplished, problems encountered, and photos (before, during and after construction).
Reports will be accessible by City staff to ensure that the City is informed of the project progress and will be submitted weekly. The Team will provide digital photos and/or video documentation prior to work, with work in progress, and upon acceptance of work. The complete set of photographs/video will be submitted to the City at the completion of the project. A monthly progress report will include an overview of work accomplished during the previous month, an overview of work to be accomplished the following month, an updated schedule (based on the Contractor’s schedule of values), a list of problem areas, if any, and proposed corrective actions, and a bar graph comparing the monthly and cumulative invoiced amounts with the total authorized CM budget.
We will prepare and send a weekly statement of working days, days remaining, and rainy days to the Contractor.
We will coordinate with the Contractor and the City when the work is ready for final inspection. We will conduct a final inspection/walk-through including City staff, Contractor, maintenance/service personnel, and project architect/design consultant. We will also review and process the release of retention. We will obtain evidence of certification of the release of all liens and stop notices. We will obtain certification of delivery of record drawings to the City and design engineer. We will advise the City when the Notice of Completion (NOC) should be filed prepare the final punch list when the contractor has certified and demonstrated the work is complete.
SERVICES
The following represents the normal responsibilities associated with providing construction inspection during the construction phase of a project. The actual services are tailored to meet the specific needs of each project:
Providing daily inspection and documentation of job-related activities Monitoring and documenting Contractor’s work for adherence to contract plans and specifications
Preparing and maintaining thorough daily inspection reports Providing continual review of plans and specifications Coordinating schedules for testing and surveying
Documenting information related to manpower, equipment, and time for extra or force account work
Attending all necessary meetings
Providing accurate measured quantities and review pay estimates submitted by contractor Providing pictorial and/or video logbook of construction activities, and maintain separate “as-builts” Reporting all discrepancies requiring corrective actions to the construction manager and/or owner 202
Proposal to Provide As-Needed Professional Services to the City of Sand City. Page 35 Section 2: Scope of Work – Public Works February 1, 2023 Meeting with Contractor to review proposed work and schedule inspection Developing “Punch List” items and following up with corrective measures PROJECTS REQUIRING OSHPD, DSA, ICC, ETC.
4LEAF maintains an updated database complete with each inspector’s skillsets, certifications, project history, continuing education, etc. Our Project Manager will work closely to identify the right inspector for each assignment/task. 4LEAF has a proven track record of providing Inspectors for daily assignments or specialty assignments—this includes staff augmentation and project staff augmentation roles.
STATUS UPDATES
Keeping the City informed of project/contract status is as important as physically doing the work. As such, our PM will keep the City’s Construction Manager apprised of project status through regular progress and budget reporting. We will report progress, identify potential problem areas, and keep the City informed on budget and schedules on a regular basis.
To accomplish the above, we propose two reporting tools, 1) a Work Order Tracking Report and 2) Monthly Expenditure Reports. These reports will be updated monthly, submitted to the City Construction Manager, and reviewed in a monthly update meeting. The frequency of reporting/meeting and content of each report will be discussed in detail with City staff following contract award.
In addition to the above listed items, the monthly expenditure report will include a Work Order summary, a list summarizing budget and status, and a monthly invoice summary (i.e.: invoiced this month, prior amount invoiced, billed to date, etc.).
CLIENT RELATIONSHIPS
Providing Inspection personnel with the partnership mentality is what has set 4LEAF apart from our competition.
We believe that working with the design professionals, contractors, construction managers, project managers, and City personnel will allow all of us to get to a desired outcome and preserve both schedule and budget in the process. Complex IOR work requires a 24/7 approach for being accessible to ensure all items are communicated and addressed in an expeditious manner. Where possible, 4LEAF is willing to assist other projects (whether billable or non-billable) to ensure conformity and consistency as well as to maintain positive relationships.
Work Order Tracking Monthly Expenditure Reports
Our Project Manager will submit a monthly
expenditure report for each Work Order to include
the following:
Work Order status
Notice to Proceed (NTP) date
Schedule
Budget
Expended amount to date
Remaining budget to date
Pertinent Comments
Our Project Manager will submit a monthly
expenditure report for each Work Order to include the
following:
Percent of completion
Percent expended
Summary of monthly activity
Identification of problem areas
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Since our inception, 4LEAF has excelled in providing plan review, construction management, and inspection services to more than 350 clients including private entities, cities, counties, state, and federal agencies. Having worked with many public agencies, we know how to accomplish the roles of project management, construction management, and inspection on projects of all sizes, durations, and complexities from conception to completion. We realize this is not an easy task—procedures must be followed, and documentation must be maintained in order to properly close out a project. 4LEAF is dedicated to improving the effectiveness of our methodology which will assist the City in achieving its goals.
Below, we have detailed out general methodology/process managing Task Order projects:
We understand that an effective Quality Assurance (QA) program is necessary to deliver a quality project and that the program has a place in each stage of the project’s life. The above graphic illustrates how QA and Quality Control (QC) are the heart of any project. We believe that quality and safety must be maintained as the ultimate priority of every person involved in a project. Without quality, the other elements of the project don’t matter.
We agree with the definition of an effective Quality Management System as “not just one where good products and services are delivered.” Rather, it is one that continuously seeks to improve the products and services being delivered and the corresponding delivery processes used by the organization. We will ensure QA Plan compliance throughout the project’s duration. We will monitor and assist with QA deviations/non-compliance actions until resolved. We will systematically and continually review plan review, inspection procedures, and activities for compliance with the procedures.
We will implement and maintain effective procedures to ensure that all complies with requirements. Our QA program will emphasize both preventative and verification activities. We will conduct and formally document verification processes, including both daily and weekly review of documents and maintenance of checklists and/or logs for control of documentation.
City awards contract.
4LEAF PM Identifies
critical issues and City
needs.
Reinforce City
procedures and
policies with our team
members.
Follow up with City
throughout project’s
duration. Provide
regular updates &
QC audits.
Perform project
closeout
procedures.
Match our Staff
with Project
Requirements.
Provide 4LEAF
staff with City
QA Procedures.
Provide “no
surprises”
oversight for
project schedule,
and quality.
Ensure QA
Procedures are
followed.
Work with City
to identify project
schedule.
Ensure staff has
proper training.
Provide daily field
reports,
etc. to City.
Provide all project
documents to
City.
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PROJECT EXPERIENCE
City of Mill Valley, CA
Construction Management and Inspection Services
4LEAF provided the CM and Inspection services to the City of Mill Valley for the $13.5M Miller Avenue Streetscape Project capital improvement project, which has dramatically improve multi-modal movements for pedestrians, bicyclists, and motor vehicles. It will install new underground utilities, rehabilitate asphalt pavement; and replace sidewalks, utility boxes, streetlights, and landscaping to beautify more than two miles of Miller Avenue. Project includes the Full-Depth-Reclamation (FDR) and Cold-In-Place Recycling (CIR) asphalt paving methods, as well as various sanitary sewer rehabilitation methods including pipe bursting, cured-in-place lining, and open trench pipe removal and replacement.
As the largest Public Works project ever undertaken by the City of Mill Valley in the heart of its downtown district, the project has garnered a large amount of attention from stakeholders. The City is well known as being home to residents who are heavily involved in city issues. 4LEAF has been formally recognized and commended by elected officials, city staff, multiple residents, and businesses for created a very positive construction environment through 4LEAF’s full-time on-site presence and availability in coordinating issues specific to traffic, parking, safety, pedestrians, and businesses.
Services performed by 4LEAF included:
• Performing close collaboration between the City staff, design firm, construction contractor, and 4LEAF’s subconsultants for materials testing/special inspection and schedule management. • Performing extensive daily public outreach and communications with downtown business owners concerning issues such as access to their properties; collecting daily photographs of construction activities.
• Managing project documentation according to LAPM requirements as required for federal funds.
Agency Name: City of Mill Valley
Client Contact: Andrew Poster, P.E., T.E. - DPW
Client Telephone: (415) 384-4800
Project Dates: 2016 - 2017
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 38 Section 2: Scope of Work – Public Works February 1, 2023 City of Sacramento
McKinley Water Vault Project
4LEAF is providing Project Management, Construction Management, and Inspection Services for the City of Sacramento Utility Department’s $35M Water Vault project. The project is being constructed to eliminate capacity-related sanitary sewer overflows (SSOs) in the City’s combined storm and sanitary sewer collection system during the rainy season. The project has three main elements: (1) a 6-million-gallon-capacity rectangular-shaped subsurface water storage vault, (2) diversion structures and conveyance piping, and (3) upgrades to the existing park infrastructure including a new public restroom facility, upgrade jogging path, and new sports field.
The water vault and pipelines are being constructed within McKinley Park and adjacent to established residential neighborhoods. 4LEAF’s Team is tasked with coordinating public outreach and maintaining public relations in conjunction with the City of Sacramento. 4LEAF is also coordinating and ensuring that the contractor is maintaining compliance with the various environmental mitigation measures. McKinley Park continues to remain open and utilized by the community during active construction. Construction began in June 2019 and the following construction activities have been completed or are being performed to date:
• Pre-construction nesting bird and roosting bat survey. • Provide cultural/archaeological resource training for mitigation measure. • Site demolition.
• Installation of wildlife exclusion fencing, storm water best management practices (BMPs), and perimeter security fencing.
• Installation and operation of a localized dewatering system. • Excavation of 66,000 cubic yards of soil for off-site reuse. • Installation of soil nail wall (300 nails) for temporary stabilization of excavation sidewalls.
• Construction of a 2-foot-thick reinforced concrete mat slab and 16- inch-thick reinforced concrete walls.
• Approximately 800,000 lbs. of reinforcing steel (rebar) and 9,500 cubic yards of concrete will be used for project.
• Installation of approx. 400 ft. of 24-inch to 60-inch diameter RCP sanitary sewer conveyance piping.
Client Name: City of Sacramento
Client Contact: James Yorita, P.E., Project Manager
Client Phone: (916) 808-1911
Client Email: [email protected]
Client Address: 1395 35th Avenue
Sacramento, CA 95822
Project Dates: June 2019 - August 2021
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 39 Section 2: Scope of Work – Public Works February 1, 2023 City of Pacifica
Wet Weather Equalization Basin Project
4LEAF provided Project Management, Construction Management, and Inspection Services for the City of Pacifica’s $19M Wet Weather Equalization (EQ) Basin project. 4LEAF also provided Project Management and Constructability Review services during the Geotechnical Investigation, Design, and California Environmental Quality Act (CEQA) Evaluation phases of the project. The project was constructed to eliminate capacity-related sanitary sewer overflows (SSOs) in the City’s sanitary sewer collection system during the rainy season. The EQ Basin and pipelines were constructed adjacent to and within residential neighborhoods, and 4LEAF performed daily noise monitoring inside and adjacent to the project area and extensive public outreach. 4LEAF was responsible for coordination and ensuring contractor compliance of the CEQA Mitigation Monitoring and Reporting Plan as well as assisting in obtaining Addendums to the CEQA document.
Construction began in June 2017 and the following key construction activities were performed:
• Drilling and sampling activities by 4LEAF to perform in-situ waste characterization of the 23,000 cubic yards (cyds) of soil to be excavated for the EQ basin.
• Site demolition.
• Construction of a perimeter sound wall adjacent to nearby residences. • Construction of a 3-foot-thick outer concrete cutoff wall (24 interconnected panels) to depths ranging between 50 and 70 feet below ground surface (bgs) around the perimeter of the EQ Basin structure. • Installation and operation of a localized dewatering system during construction of EQ Basin structure. • Construction of a 5-foot-thick reinforced concrete mat slab and 2-foot-thick inner concrete liner wall. • Installation of all mechanical piping, electrical conduit and wiring, motor control center bldg. w/ PLC panel, discharge pumps, explosive-proof lighting, odor control piping, blowers, and GAC vessel. • Restoration of parking lot, sidewalks, lighting, and bio-retention basins for surface stormwater runoff. • Installation of approx. 200 feet of 36-inch-diameter steel casing using jack-and-bore techniques.
Client Name: City of Pacifica
Client Contact: Louis Sun, P.E., Deputy Director Public Works Client Phone: (650) 738-4662
Client Email: [email protected]
Project Dates: 10/2015 - 2/2020
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 40 Section 2: Scope of Work – Fire February 1, 2023
SECTION 2: SCOPE OF WORK – FIRE
APPROACH
Our Fire team is comprised of experienced Fire Plan Reviewers, Fire Protection Engineers, Fire Marshals, and Fire Chiefs. 4LEAF’s fire inspectors are all ICC and/or OSFM Certified and experienced working within a municipal work environment. Our fire plan review and inspection processes similarly follow the procedures and timelines outlines in our Building plan review and inspection sections. We have worked on several high-profile contracts for fire prevention services and recovery programs including:
Jackson County, Oregon – Fire Recovery Program
Santa Cruz County – Fire Recovery Program
Solano County – Fire Recovery Program
Sonoma County – Fire Recovery Program
Town of Paradise – Fire Recovery Program
City of Victorville – Fire Prevention Program and Fire Plan Review Services University of California, Santa Barbara – Fire Plan Review Services City of Murrieta Fire Department – Fire Plan Review, Fire Inspection, and Fire Marshal Services Livermore Pleasanton Fire Department – Fire Review and Inspection Services City of Oakland Fire Department – Fire Plan Review Services City of Malibu – Fire Recovery and Plan Review Services Fire Plan Review Services
4LEAF can provide plan review services for all types of occupancies and construction types to ensure compliance with all adopted codes, local ordinances and state and federal laws, ordinances, regulations, and standards that pertain to Fire Life Safety Including, but not limited to:
CA Title 24, Parts 2, 3, 4, and 9
NFPA 13, 13R, 13D, 24, and 72
Local amendments to the California Building and Fire Codes California Health and Safety Code
Municipal Fire Standards & Municipal Codes
National Fire Protection Referenced Standards
4LEAF is one of the Fire Life Safety industry’s leaders in Plan Review Services. Our Fire Plan Review Services include:
Compliance for Site Access Requirements
Compliance for Fire Flow Requirements
Review of Fire Prevention, Suppression, and
Detection Systems
Sprinkler, Standpipe, Alarm, Notification
Systems, and Fire Pump Code Compliance
Hazardous Occupancies, High Piled Storage, and
Smoke Control Systems
Review of Alternate Means
Review of Methods Requests
Annual Business Inspections
Complete Fire Prevention Services
New Construction Inspections
Fire Alarm/Sprinkler Inspections
Special Event Permits
Hazardous Materials Inspections
In-House Plan Review
Off-Site Plan Review
Code and Standards
Public Education and Safety Training
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 41 Section 2: Scope of Work – Fire February 1, 2023
PROJECT EXPERIENCE
County of Santa Cruz, CA
Plan Review and Inspection Services
4LEAF is currently performing the full Fire Recovery Program for the County of Santa Cruz. Following the CZU Lightning Complex Fire that took place the week of August 24, 2020, the County immediately took action to find a firm to expedite the rebuild of a community that lost more than 1,000 Residential Units and 500 Additional Structures.
Upon selection, 4LEAF was immediately called into service to create and implement the infrastructure needed to fast-track the Permitting Process for the thousands of displaced residents. In addition to various outreach events, creation of hand-outs, and the coordination of several County divisions, 4LEAF’s implementation team is in the midst of creating a one-stop Permitting Center specifically dedicated to the Fire Recovery victims. The Recovery Permit Center (RPC) offers a full range of planning and building assistance to residents, contractors, and developers and utilizes the County’s electronic plan process through their ePlan portal. 4LEAF interfaces with other County divisions for work on the septic, grading, drainage, and other infrastructure plan and reporting. 4LEAF’s scope includes:
• Review of applicable County development standards;
• Plan review services for compliance with environmental, building, planning, septic, well, storm drainage, and engineering regulations, as established and adopted by the County; • Establish and implement communication and outreach services, participate in public forums as needed, network and inform the public on processes and procedures to respond to needs and concerns; • Assist County staff with recovery policies;
• Provide data on the number of reviews, inspections and processing times for the steps in the process; • Customer Service to assist the public from pre-application through final inspection and occupancy; and • Provide services in a COVID-Safe manner utilizing video conferencing as requested for appointments.
Fire Districts
In addition to the work with the County of Santa Cruz, 4LEAF is also working with Ben Lomand Fire District, Santa Cruz County Fire District and Boulder Creek Fire District. 4LEAF is performing fire access, fire suppression, and Fire Prevention Plan Review and Inspection Services. Due the unique topography, 4LEAF is also providing recommendations for alternate means and methods (AMMR) to achieve alternate code compliance to expedite the permitting process.
Client Name: County of Santa Cruz
Project Location: Santa Cruz, CA
Client Contact: Thomas J. Fakner, CCM
Client Telephone: (831) 454-4606
Client Email: [email protected]
Completion Date: 2024
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 42 Section 2: Scope of Work – Fire February 1, 2023
City of Victorville
Fire Plan Review and Inspection Services
4LEAF is currently administering a complete Fire Prevention Bureau. We are providing on- and off-site plan review, annual, sprinkler, OSHPD, alarm, and state mandated inspections. 4LEAF presently staffs five positions including Fire Inspectors and a Fire Marshal and ensures that all project deadlines are delivered as per the City’s contract.
Services performed by 4LEAF include:
• Provide a California certified Fire Marshal to perform fire investigations, public education, and other Community Risk Reduction (CRR) programs.
• Provide a minimum of one (1) California certified Fire Prevention Officer at the City during regular business hours to meet with the public, review fire plans and conduct fire inspections. • Plan review for compliance with the California Fire Code, as amended and adopted by the State of California (Title 24, Part 9 of the California Fire Code) and the City of Victorville requirements. • Plan review for compliance with the National Fire Codes as published by the National Fire Protection Association (NFPA), as adopted and referenced by the State of California (Title 24, Part 2 of the California Building Code; Title 24, Part 9 of the California Fire Code) and the City requirements. • Plan review for compliance with applicable provisions relating to fire alarm systems of the National Electrical Code as published by the National Fire Protection Association (NFPA), as adopted and amended by the State of California (Title 24, Part 3 of the California Electrical Code.) • Inspections of all new structures and modifications to existing structures for compliance with all State and Local requirements as prescribed by the California Building Code; California Fire Code; and City of Victorville requirements.
• Inspections of fixed fire suppression systems to confirm installation complies with the approved plans; State requirements; local requirements and manufacturer’s specifications. • Inspections of fire sprinkler systems to confirm installation complies with the approved plans; State requirements; local requirements and manufacturer’s specifications. • Inspections of fire alarm systems to confirm installation complies with the approved plans; State requirements; local requirements and manufacturer’s specifications. • Support office staff and provide counter service, respond to questions, return phone calls and emails, input correction notices and case-related comments into the City’s permitting software system (EnerGov); file and/or scan documents following field inspections.
Agency Name: City of Victorville
Project Dates: 2019 - Present
Client Contact: Kevin Collins, C.B.O., C.F.M., Building and Fire Official Client Telephone: (760) 646-0131
Contact Email: [email protected]
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 43 Section 2: Scope of Work – Fire February 1, 2023
Livermore Pleasanton Fire Department, CA
Fire Plan Review & Fire Inspection Services
4LEAF is currently supplying on-site inspection and on-site review for projects in the City of Pleasanton and City of Livermore. 4LEAF has completed hundreds of projects including work on the $50 Million outlet mall “Paragon.” 4LEAF also works at least one day per week at the LPFD station on Nevada street and routinely meets with applicants to discuss their reviews. 4LEAF is also currently reviewing the 2nd phase of the Paragon Outlet.
Agency Name: Livermore Pleasanton Fire Department
Contact Name: Ryan Rucker, Fire Marshal
Contact Phone: (925) 454-2330
Contact Email: [email protected]
Dates of Services: 2012 - Present
County of Santa Clara Facilities and Fleet, CA
Fire Plan Review & Fire Inspection Services
4LEAF is currently supplying on-site inspection and off-site fire review and design consulting for numerous fire alarm and sprinkler system reviews. To date since 2013, 4LEAF has completed more than 25 projects including work with several different County Project Managers, other County consulting firms, and the Fire Marshal.
Agency Name: County of Santa Clara, Facilities, and Fleet & Office of the Fire Marshal Contact Name: Hector Marin, Deputy Fire Marshal
Contact Telephone: Office: (408) 993-4614
Contact Email: [email protected]
Date of Service: 2013 - Present
Menlo Park Fire Protection District, CA
Fire Review & Fire Inspection Services
4LEAF is currently supplying on-site inspection and on-site review for projects in the Menlo Park Fire Protection District. 4LEAF’s scope includes performing professional duties in the inspection and assessment of hazardous materials facilities and sites.
Agency Name: Menlo Park Fire District
Contact Name: John Johnston
Contact Phone: (650) 688-8400
Contact Email: [email protected]
Dates of Services: 2014 – Present
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John Kuehl, CBO
Project Manager/Building Official
1 of 2
Experience Summary
John is a seasoned Building Official and licensed Inspector with more than 35 years of inspection and construction experience. With 21+ years as the Chief Building Official at the City of Monterey, John is an integral part of our team and has the industry know-how to provide quality deliverables to our clients. Both in and out of the field, John’s expertise helps guide his team to complete jobs on time and with top-notch results.
Additionally, John is a skilled plans examiner and has mentored numerous industry personnel in the Building Department Services arena.
John is one of 4LEAF’s Area Managers in the Monterey Coast where he provides Project Management and Building Official Services for two municipalities (Sand City & Pacific Grove). These complex projects require an industry expert with many years of field and management experience.
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4LEAF, Inc. – Sand City & Pacific Grove, CA
Building Official/Project Manager
October 2019 - Present
John is currently the Acting Building Official for both the City of Sand City and the City of Pacific Grove.
John is responsible for the management of all Department personnel and advices City Management on Building processes. John is also managing two high level projects on behalf of 4LEAF, which include performing Civil and Building scopes for the Pacific Grove Hotel and American Tin Cannery Projects in Pacific Grove, which will convert a waterfront retail space into a hotel development, and the South of Tioga projects in Sand City that will develop two hotels totaling $55 Million. Project Descriptions below:
Pacific Grove Hotel
Plan Review, Inspection, and Project Management
4LEAF is providing the plan review, inspection, and Project Management on Pacific Grove's first new construction hotel project since 1983. This luxury four-star hotel will feature 102 guestrooms and suites with ocean views from all four floors, luxury amenities, and elevated Spanish colonial design.
Amenities include a chef driven Restaurant and Bar, Day Spa, Expanded Fitness Center, Redwood Saunas with Himalayan Rock Wall, and Two Pro-Style Virtual Golf Simulators.
Experience
35+ years
Certifications
ICC Building Code Specialist
ICC Certified Building Official
ICC Building Plans Examiner
ICC Building Inspector
ICC Mechanical Inspector UMC
ICC Plumbing Inspector UPC
Contractor License #455709
Associations
International Code Council (ICC)
ICC Monterey Bay Chapter
Past President 2017
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John Kuehl
ATC Hotel and Commercial Project
Plan Review, Inspection, and Project Management
City of Pacific Grove, CA
4LEAF is providing the plan review, inspection, and
Project Management on a project to rep lace the
existing 165,000 square feet of “factory outlet” and
related uses with a new hotel and commercial uses.
The hotel and commercial uses would provide 225
guest rooms in two primary guest wings (Family/Group Wing and Executive Wing) with a restaurant and bars, meeting and gathering spaces, spa and fitness center and approximately 20,000 square feet of street retail uses along the Ocean View Boulevard frontage. These street retail uses would retain and incorporate portions of the existing industrial structure.
South of Tioga
Plan Review, Inspection, and Project Management
City of Sand City, CA
4LEAF is providing the Project Management, Plan Review, and Inspections on this mixed-use (residential 10.64 acre site bounded by Tioga Avenue to the northeast, California Avenue to the southeast, East Avenue to the southwest, and the Merle Street right-of-way to the northwest, and includes 356 multifamily residential units, 216 hotel units, and a restaurant.
There will also be a surface parking lot as well as a multi-story parking garage. Also included in this development, is a proposed new road that will be dedicated as a City Right-of-Way. The project will merge existing lots, abandon existing public rights-of-way, creates six new parcels (HI, HIA, H2, H2A, R-1, and R-2), relocates an existing wastewater lift station, dedicates additional right-of-way to, orrelocation of, existing streets, and dedicates right of-way for new public streets.
City of Monterey, CA
Building Technician / Senior Inspector / Building Official 1998 - 2019
John served the City of Monterey for over two decades before retiring as Building Official and Senior Inspector. His responsibilities for the City included inspecting industrial, commercial, and public works projects that required City Building Permits. John also managed the entire Building Division and Inspectors, Plans Examiners, and Counter staff. John was also instrumental in achieving success with Plan Review projects, budgets, and relationships with other City departments including Planning, Fire, and Public Works. John was responsible for many of the high-profile projects in the City including construction along wharf/pier.
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Rich Deal, PE, TE, PTOE
Traffic Engineer, Civil Engineer
1 of 2
Experience Summary
Rich is an experienced engineer whose professional and academic background includes over 35 years of traffic and civil engineering knowledge. He is proficient in all types of traffic operations, capital improvement projects, traffic control plans, and providing design oversight. As demonstrated in his work experience, Rich has held varying positions within the field of traffic engineering, each of which provided him with an increased level of responsibility and expertise.
Rich’s experience specifically includes creating and modifying traffic control plans for small cell and fiber pulls—most recently, he has used this skillset for the City of Oakland’s 5G project.
Rich has cultivated great working relationships with municipal transportation engineering department staff and the public contacts that he assisted throughout his career. His customer service skills and the helpful approach that he brings to work each day make him an asset to any project and team.
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4LEAF, Inc.
Traffic Engineer / Civil Engineer
11/2020 - Present
Rich joined the 4LEAF team as a seasoned Traffic and Civil Engineer. He is currently working with the City of Oakland on their 5G project providing traffic control for small cell and fiber plans to improve coverage through fiber pool installation and provide a more efficient network coverage throughout the City. He brings with him a vast knowledge of professional engineering judgment, over 30 years of municipal experience, and excellent leadership qualities that make him a strong addition to any municipality.
Currently, Rich is also assisting 4LEAF on various projects throughout Monterey County including Sand City and Pacific Grove.
County of Monterey Transportation Agency
Principal Engineer
10/2017 - 11/2020
In his past role as Principal Engineer, Rich was responsible for delivering county-wide regional highway projects, providing design oversight for member agencies, developing project managers for projects funded by Measure X sales tax funds, and managing and supporting Caltrans on State Highway projects including some of the following:
Experience
35+ years
Education
B.S., Civil Engineering
Cal Poly, Pomona
Professional Registrations
CA Civil Engineer, #44696
CA Traffic Engineer, #1586
USA Traffic Operations Engineer, #203
Committees/Memberships
National Commit on Uniform Traffic
Control Devices
Transportation Research Board
National Strategy for Advancing Safe
Routes to School
Associations
Institute of Transportation Engineers
American Public Works Association
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Rich Deal, PE, TE, PTOE
Scenic Route 68 Corridor Improvements
State Route 156 / Castroville Blvd Interchange
SURF! Busway parallel to Highway 1
Fort Ord Trail and Greenway
US 101 South of Salinas Expressway to Freeway Conversion City of Monterey
City Traffic Engineer
6/1994 - 10/2017
While working for the City of Monterey as the City Traffic Engineer, Rich was responsible for managing the Transportation Engineering Division, providing traffic operations and safety of the City’s transportation network, designing intersections and traffic signals, and interacting and coordinating with the public, City Council, Caltrans, and other agencies/various city departments. He was also in charge of implementing transportation capital improvement projects, preparing special event and construction traffic control plans, reviewing development project site plans, managing the Traffic Committee, developing neighborhood traffic calming program, creating and executing the safe routes to school program, implementing traffic calming projects, maintaining traffic signals and adaptive control system, creating bikeways policies and programs, responding to citizens’ traffic and parking complaints, preparing work orders and guiding signing and striping crews, preparing federal and state grant proposals, reviewing environmental impact reports and traffic impact reports, presenting traffic issues to City Council and Planning Commission, drafting traffic laws and ordinances, and representing the City on various transportation boards and committees.
Parsons Brinkerhoff – Orange, CA
Lead Traffic Engineer
10/1990 - 6/1994
Rich was responsible for growing and developing traffic engineering design group for a wide variety of major transportation projects for numerous jurisdictions throughout Southern California, including Caltrans Districts 7, 8, 11, and 12; the Counties of Los Angeles, Orange, San Bernardino, Riverside, Ventura, and 40 Cities. Additionally, Rich’s duties involved serving as traffic engineering technical lead for various offices nation-wide and delivering plans for signing, striping, traffic signal, street lighting, incident detection, stage construction, traffic control, and detours.
Willdan Associates – City of Industry, CA
Associate Engineer
7/1985 - 10/1990
Served as contract Traffic Engineer for small and medium size cities in Southern California. Responsible for conducting traffic investigations, responding to citizens’ traffic complaints, reviewing circulation and site plans, presenting at Traffic Commission and City Council meetings, supporting Planning Department, preparing annual budget, providing construction support, preparing signal timing sheets, and coordinating traffic maintenance services. Client cities included Alhambra, Rosemead, Chino, Chino Hills, Santa Clarita, Westlake Village, Agoura Hills, and Hacienda Heights. 217
Minerva “Minnie” Arredondo, CBO
Building Official
1 of 2
Experience Summary
Minnie is an experienced Building Official with more than 20 years of experience. She has extensive experience in setting up management systems, including manuals, procedures, and forms. Her experience includes customer services, maintaining department databases, administrative files, scheduling inspections, handling correspondence, and processing inspection records. Minnie is quickly able to adapt easily and learn new skills and apply them efficiently, work well under pressure, bilingual, organized, highly dedicated, ability to multitask, problem solver, motivated, excellent computer skills, extensive database knowledge and excellent customer service.
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4LEAF, Inc. (City of Hollister)
Building Official
2020 – Present
Minnie is currently the Chief Building Official for the City of Hollister on behalf of 4LEAF. Minnie is responsible for a Department of up to 10 personnel including Inspectors, Permit Technicians, and Plans Examiners. Minnie has been tremendously successful working with other Departments including Public Works, Fire, Planning, and Code Enforcement. In addition, Minnie has provided leadership and training throughout the Department for all scopes.
4LEAF, Inc. (City of Lathrop)
Senior Permit Technician
2015 – 2019
Minnie was the Senior Permit Technician on behalf of 4LEAF and another consulting firm at the City of Lathrop. Her duties included:
• Operate and Maintain Building Department which includes, greeting customers, reviewing all applications and plan submittals, collaborating with other departments and agencies, and scheduling inspections.
• Calculate building, plan review and City impact fees for construction projects. • Provide public assistances relating to building permit application process. • Audit process, financial files and efficiency of our "Contracted" Building Departments. • Assist the Code Enforcement Officer with code violations, legal notices, and compliance. • Maintained the City permit software up to and including extracting data and converting to alternate platforms, report writing and troubleshooting problems.
Experience
20+ years
Certifications
ICC Certified Building Official
ICC Permit Specialist
Education
Modesto Jr College,
Non-Structural Building
Code
Professional Affiliations
International Code Council
WLCE
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Minerva “Minnie” Arredondo
CSG Consultants, Inc. (City of Newman)
Senior Permit Technician
1999 - 2009
Minnie was the Senior Permit Technician responsible for serving the public at the Planning and Building Department counter by accepting plans for plan check and verifying accuracy and completeness of information, calculating permit fees, explaining ordinances and procedures to owners, contractors, developers, architects, and the general public. Minnie was assigned to several different Cities and Counties during her 10 years including:
City of Lathrop
City of Hollister
City of Newman
City of Gustine
City of Los Banos
City of Patterson
County of Stanislaus
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Christopher Fowler, CBO, OSHPD A
Supervising Inspector of Record/Building Official/Fire Inspector 1 of 2
Experience Summary
Christopher Fowler has more than 20 years of senior-level commercial construction project management experience, with special emphasis on LEED educational and governmental buildings. He has extensive knowledge of and experience applying, implementing, and enforcing the International Building Codes through thorough plan reviews and inspections. Christopher is proficient with all major construction methods and procedures, including hands-on management experience as both a general and subcontractor representative and overseer. He has provided nearly 10 years of educational training programs in coordination with the ICC for college curriculums.
Christopher has knowledge of building codes for local, state, and federal ordinances such as ICC, UMC, UPC, NFPA, NEC, OSHA, ADA, and health regulations. He has completed several billion-dollar construction projects including: Apple Campus 2 ($6 Billion), VMware Corporate Campus($1.3 Billion), and Correctional Healthcare Facility ($1.2 Billion).
Select Project Experience
4LEAF, Inc. – University of Santa Barbara
Supervising Inspector of Record / MEP Plans Examiner
On behalf of 4LEAF, Christopher is
performing MEP Plan Review services
for several UCSB campus projects. As
the Campus Building Official,
Christopher performs plan and
specification reviews for University
projects. Plan reviews are conducted
to ensure conformance with approved plans and compliance with University standards and requirements for University-owned buildings.
Christopher is currently working on the University is Munger Student Housing, an 11-story dormitory of 1.68 million s.f. that will house up to 4,500 students. Chris is the Supervising IOR and will oversee the on-site team and participate in kick-off and milestone meetings with University stakeholders.
Experience
20+ years
Education
AA, Business Administration
Certifications
OSHPD A
ICC Fire Inspector II
ICC Accessibility Inspector/Plans Examiner
ICC Building Inspector
ICC Building Plans Examiner
ICC Combination Inspector
ICC California Commercial Building
Inspector
ICC California Commercial Combination
Inspector
ICC California Commercial Electrical
Inspector
ICC California Commercial Mechanical
Inspector
ICC California Commercial Plumbing
Inspector
ICC Residential Building Inspector
ICC California Residential Electrical
Inspector
ICC California Residential Mechanical
Inspector
ICC California Residential Plumbing
Inspector
ICC Certified Building Code Official
ICC Certified Building Official
ICC California Combination Inspector
ICC Combination Inspector - Legacy
ICC Commercial Combination Inspector
ICC Electrical Inspector
ICC Mechanical Inspector
ICC Mechanical Inspector UMC
ICC Plumbing Inspector
ICC Plumbing Inspector UPC
ICC California Building Plans Examiner
ICC Building Code Specialist
ICC California Residential Building Inspector
ICC California Residential Combination
Inspector
Heartsaver AED-CPR
Professional Affiliations
International Code Council
Southern Nevada Building Officials Assoc.
World Building Officials Association
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Christopher Fowler, CBO, OSHPD A
4LEAF, Inc. – County of San Mateo Project Development Unit (PDU) Inspector of Record / Plans Examiner
Chris is the Inspector of Record on several PDU projects including the San Mateo Medical Center, Navigation Center, and Animal Shelter, and Skylonda Fire Station. The PDU program consists of approximately 18 projects funded from a Bond Measure which totals more than $1 Billion of construction.
Chris. Here are a couple of featured projects:
Skylonda Fire Station #58
This project consists of a barracks/office building consolidating the functions and operations of two existing structures into a single structure.
The barracks/office building will contain administrative offices and related support spaces, conference and training rooms, a kitchen and dining room, dayroom, dorm rooms, fitness rooms, showers, and restrooms. A new primary vehicular access connection shall be provided to Skyline Boulevard to facilitate improved traffic sightlines and vehicle turning radiuses.
Animal Shelter
The County of San Mateo is constructing a new animal shelter that will be located at the Coyote point site of the current animal shelter to replace the existing shelter buildings. This Design-Build project will contain programmed space for a variety of mandated animal care services, limited community services, clinic services, and administrative services.
The project currently underway will replace the existing facility with a new approximately 27,000 square foot animal shelter facility.
Apple Campus 2, City of Cupertino, CA
Supervising Inspector of Record
Christopher was Supervising Inspector of Record managing the on-site operations of the Project Team with 4LEAF, Inc that consisted of 22 personnel. The construction spanned nearly 180 acres and approximately 4 million Sq. Ft. of construction. The campus includes a 2.8 Million Sq. Ft. Main Building with subterranean parking, Corporate Fitness Center, Corporate Auditorium, two above grade Parking Structures, Central Utility Plant, and 600,000 Sq. Ft. of Research and Development Buildings. Chris was responsible for the coordination of inspections as well as the final approval on behalf of the Authority Having Jurisdiction.
Chris routinely packaged milestones for the City’s Chief Building Official for approval. This project received all Certificates of Occupancy in December of 2018. This project valuation was approximately $8 Billion and took more than five years to complete. Chris worked collaboratively with the City of Cupertino and County of Santa Clara Fire Department to ensure all inspections were performed and documented. Chris oversaw more than 400,000 inspections through the course of construction and helped our administration team prepare the Certificate of Occupancy paperwork for the City of Cupertino 221
Scott Martin, P. E.
Civil, Structural & MEP Plan Review Engineer /QC Manager 1 of 2
Experience Summary
Scott has more than 23 years of engineering experience and has performed a multitude of plan reviews for many different disciplines including OSHPD 3, DSA Projects, and various municipal reviews for clients throughout California. Scott’s day-to-day activities include the review of plans submitted to local jurisdictions, creation and submission of plan check letters, and constant communication with all project stakeholders.
In addition, Scott is often tasked with the education of building code to applicants. He is instrumental in establishing the new templates for all new clients to establish the municipal preferences for commercial and residential plan check and makes an asset to any team, project, and jurisdiction he is assigned.
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4LEAF, Inc.
Plan Review Engineer
2014 - Present
Since 2014, Scott has been 4LEAF’s Senior Plan Check Engineer with a focus on Structural review. Scott has worked on a plethora of 4LEAF’s largest commercial reviews. Currently, Scott reviewed the Zuckerberg Chen School for the City of East Palo Alto, several large Commercial Projects for the County of San Mateo’s Project Development Unit including a $120 Million Medical Office Building, two large County facility buildings, and several large reviews for the University of California, Santa Barbara including the $1.5 Billion Munger Hall Project. In addition, Scott is 4LEAF’s Lead Quality Control Plan Review Manager where he is responsible for the final reviews of all outgoing projects. Scott also regularly trains 4LEAF personnel (Engineers and non-structural) on various plan review guidelines and code updates. 4LEAF, Inc. (City of Palo Alto)
Structural Plan Check Engineer
2012 - 2013
Starting in December of 2013, Scott accepted a position to perform and manage plan reviews in the Central Valley and Central Coast for many of 4LEAF’s clientele. Since 2012, Scott has worked for 4LEAF as a structural plan review engineer and was tasked to the City of Palo Alto where he was often assigned to Experience
23+ years
Education
B.S., Civil Engineering
University of California, Irvine
Certifications
CA Registered Civil Engineer
License # 59091
NV Registered Civil Engineer
License # 019922
ICC, Building Plans Examiner
Professional Affiliations
ICC – International Code Council
Structural Engineers of Northern
California (SEAOC)
ASCE
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Scott Martin, P.E.
work with the public and architects to answer building code related questions and to provide excellent customer service. In addition, Scott performed many large-scale plan reviews for the City including:
• Workday Campus (6 Stories) - $50 Million
• Stanford Medical Center (6 Stories) - $32 Million
• VMWare HTE Tenant Improvement - $25 Million
• Hilton Hotel and Underground Parking - $18 Million
• VMWare Parking Structure 2 - $14 Million
• Stanford Hospital Site Development - $13 Million
• 260 California (3 Story mixed-use & underground parking) - $10 M • Thermal Vacuum Chamber - $9.7 Million
• VMWare Parking Structure (4 Levels) - $6.8 Million
• 4-Story Tenant Improvement for Survey Monkey - $6.1 Million Willdan Engineering – Fresno, CA
Structural Plan Check Engineer
2007 - 2010
Scott performed structural plan reviews on behalf of Willdan Engineering for numerous jurisdictions throughout California. Scott was tasked with the plan review, creation of the plan check letter, communicating with project stakeholders, and educating the applicants on current building codes and standards. Some of Scott’s projects included:
• CSU Humboldt Student Center Expansion; Arcata, CA
• Park Place: Res/Office/Retail over Parking; Paso Robles, CA • CalRENEW-1 Solar Power Farm; Mendota, CA
• City of Winters Police/Fire Complex; Winters, CA
• UC Davis Hyatt Place Hotel; Davis, CA
Advanced Structural Design, Inc. – Fresno, CA
Project Engineer
1998 - 2007
Scott was a Project Engineer for nearly ten years with Advanced Structural Design out of Fresno. Scott was responsible for engineering design, drafting (AutoCAD & hand), shop drawing review, and coordination with clients.
• Mt. Whitney Classroom Buildings; Visalia CA (DSA #02-107633) • Plumber's Union Expansion; Fresno, CA
• Oak Valley New Admin; Tulare Co., CA
• Paul Evert's RV Expansion and New Canopies; Fresno, CA • Grizzlies Stadium; Fresno, CA
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Alfred Fasulo
Code Enforcement Officer
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Experience Summary
Al is an experienced Code Enforcement Officer who has also worked as a residential building inspector, fire inspector, police officer and private investigator. He has most recently worked in cities such as Carmel ByThe-Sea, Sand City and the City of Monterey. His determined attitude, knowledge of the field, and top-notch attention to detail make him a quality team member for any project where he is assigned. Al’s experience working with members of the Fire and Police Department, fellow field workers, and the general public has helped him to gain adaptability and rounds out his skillset. Al’s ability to maintain composure in difficult situations and find proactive solutions is one of his greatest strengths. Al has recently joined 4LEAF as a Code Enforcement Officer and will be a great asset in any jurisdiction.
Select Professional Experience
San Benito County Building Department
Code Enforcement Officer
2020 - Present
Al is currently providing Code Enforcement services on behalf of 4LEAF at San Benito County. Al is well versed in a number of different Code Enforcement Categories including substandard housing, Canibus, and municipal code requirements. Al is responsible for the entirety of the County and regularly works along side the County Sheriffs Department and the County Building Division. Al also interfaces with City stakeholders to update on active case logs.
Carmel-By-The-Sea, CA 2012 - 2019
Sand City Police Department – Sand City, CA 2016 - 2017 Monterey City Planning Department – Monterey, CA 2012 - 2012 Monterey City Attorney’s Office – Monterey, CA 2004 - 2006 Code Enforcement Officer
Al worked in a variety of different departments overseeing the Experience
16+ years
Education
B.S. Criminal Justice
Management
Union Institute &
University
A.A. Criminal Justice
Monterey Peninsula
College
CA POST Police Academy
Gavilan College
Licensures/Permits
CA State Licensed
Private Investigator
Security Guard
Concealed Weapons
Certifications
PC832
CA State Basic, Intermediate and
Advanced POST Certification
CA State Firefighter Certification
CA State Code Enforcement Officer
Basic Training Certification
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Alfred Fasulo
enforcement of administrative aspects of the city ordinances, regulations and guidelines enacted by state and federal agencies pertaining to public health and safety. He conducted field inspections and investigations of potential violations, gathering evidence; interviewing complainants; comparing facts to the requirements of administrative codes, evaluating findings and issuing warnings, correction notices and citations. He worked proactively with city and county agencies to prepare and issue reports, citations and case history documents pertaining to code violation cases and provide testimony on behalf of the city.
The Michaels Organization – Monterey, CA
2019 - 2020
Residential Inspector
Al’s role at Michaels Organization was to investigate exterior and interiors of residence condition of multiple systems; ventral heating; interior plumbing and electrical systems, the roof, walls, ceiling, floors, windows and doors, the foundation, basement and structural components and submit a detailed list for vendor repairs. Reinspect residences upon completion of vendor work. Additionally, Al was to reinspect residences upon completion of vendor work.
Fasulo Investigations – Carmel, CA
2002 - 2019
Licensed Private Investigator
Al was a very successful private investigator providing all manners of investigative services including motor vehicle repossession, personal and executive protection, covert and video surveillance, sub-rosa workers compensation investigation, and pre-employment screening and background investigations. He networked with industry professionals to identify and implement best practices and newly identified strategies for conducting proactive and successful investigations. Al assisted clients with navigating through crisis situations and critical incidents, evaluating evidence and documenting facts, while ensuring proper prioritization of cases and compliance with established best practices and industry standards.
Monterey Fire Department – Monterey, CA
2000 - 2003
Fire Inspector
As a Fire Inspector with the City of Monterey Fire Department, Al performed inspections of building construction and repair work for enforcement of local building and zoning laws, state building codes, identifying areas of concern and violations of established codes, issuing notices of violation, stop-work orders and citations as required. He conducted inspections related to the compliance of all applicable local, state and federal codes and ordinances related to fire protection, life safety, building construction, fire control and detection. Al interpreted and evaluated code compliance, issuing building certificates and certificates of occupancy for building, structures and facilities found to be in proper and complete compliance of all applicable codes.
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Caitlin Roeder
Permitting Manager
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Experience Summary
Caitlin has recently been promoted to Permitting Manager from her position as Senior Project Coordinator / Project Manager for the past two years with a total of 6 years of experience working with customers/clients on time sensitive matters in the construction industry. She has worked in several jurisdictions such as the City of Half Moon Bay, the City of Sand City, and the City of Oaklands’ 5G project as a successful project manager/coordinator providing impeccable customer service and leverage skills while providing and implementing new tactics to improve the day-to-day operations. Detail-oriented, Caitlin is highly organized and sets high personal standards for her own performance with each task she is assigned. This, paired with her dynamic talent and personal drive, renders her an asset to any team.
Select Professional Experience
4LEAF, Inc.
Permitting Manager
2021 - Present
Caitlin is currently managing a team of 6 coordinators in the 4LEAF office responsible for the intake our processing of more than 1,000 plan review projects per month. Caitlin is also Project Manager for several clients including the City of Santa Clara, El Cerrito, and Gilroy. Caitlin manages several different programs including Solar, 5G Installation, and various permitting assignments from Cities who are shortstaffed in their Building Departments. In her current role with 4LEAF, some of Caitlin’s duties include:
• Manage, monitor, and oversee the licensing and permitting processing team which includes training, work assignments, performance evaluations, development, and disciplinary action. • Manage day-to-day operations of various divisional licensing & permitting activities specifically as it relates to application acceptance, review & approval workflow, license/permit issuance, productivity, as well as fiscal monitoring and reporting. • Planning, managing, developing work rules, training, coordinating, and administering all activities and personnel of such staff positions as administration, citizen participation, research, and finance, and manages such personnel as are assigned to specific functions in the performance of the necessary duties under administrative direction.
• Assists in other job-related duties as required.
Experience
6+ years
Education
A.A. in Criminology & Criminal Justice
Sonoma State University –
Rohnert Park, CA
Skills
MS Office Suite
Accela
TRAKiT
iWorQ
EZ Plan Review
Memberships
ICC
WLCE
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Caitlin Roeder
4LEAF, Inc. – Pleasanton, CA
Senior Project Coordinator / Project Manager
2017 - 2021
• Worked with clients and managed hundreds of projects at any given time. • Communicate efficiently with clients to provide them with all information regarding projects. • Establish strong relationships with clientele.
• Planning of daily duties and responsibilities for team members. • Providing training to team members to help with their growth and development leading by example and inspiring the team to achieve goals.
• Assisting in the selection, orienting, and appraising of new employees. • Examining data and making independent sound decisions. • Continually working to enhance the reputation of the organization. • Implementing new tactics to improve day-to-day operations.
Town of Danville Planning Department – Danville, CA
Clerical Assistant
2016 - 2017
• Data entry and file organization.
• Assist on clerical projects (specifically with implementation of new software). • Redesigned mapping system for zoning purposes.
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PROPOSAL TO PROVIDE
TO THE
PROFESSIONAL SERVICES
CITY OF SAND CITY
FEE SCHEDULE
SECTION 4
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 58 Section 4: Fee Schedule February 1, 2023
SECTION 4: FEE SCHEDULE
FY2023-2024 FEE SCHEDULE & BASIS OF CHARGES
FOR THE CITY OF SAND CITY
All Rates are Subject to Basis of Charges
Building
Chief Building Official ......................................................................................................................... $144/hour Certified Access Specialist (CASp) Inspector ...................................................................................... $165/hour Certified Access Specialist (CASp) Plans Examiner............................................................................. $165/hour Senior Combination Building Inspector (Building Inspector III) ......................................................... $118/hour Commercial Building Inspector (Building Inspector II) ...................................................................... $108/hour Residential Building Inspector (Building Inspector I) .......................................................................... $93/hour Permit Manager.................................................................................................................................. $93/hour Senior Permit Technician (Remote or Onsite).................................................................................... $77/hour Permit Technician............................................................................................................................... $70/hour Civil Plan Review (Grading, Improvement Plans) ............................................................................... $175/hour Inspector of Record ............................................................................................................................ $124/hour DSA Class 1 / OSHPD A Inspector ....................................................................................................... $144/hour DSA Class 2 / OSHPD B Inspector ....................................................................................................... $120/hour DSA Class 3 / OSHPD C Inspector........................................................................................................ $103/hour Off-Site Project Manager.................................................................................................................... $175/hour GoFormz Software.................................................................................................................. $50/user monthly Code Enforcement
Code Enforcement Director.............................................................................................................. $165/hour Code Enforcement Manager ............................................................................................................ $145/hour Senior Code Enforcement Officer..................................................................................................... $110/hour Code Enforcement Officer II............................................................................................................. $103/hour Code Enforcement Officer I.............................................................................................................. $88/hour Fire
Fire Protection Engineer (FPE) ............................................................................................................ $205/hour Fire Prevention Officer ...................................................................................................................... $112/hour Fire Plans Examiner ............................................................................................................................ $165/hour
PLAN REVIEW COST STRUCTURE NOTES
Plan Review Percentage: 75%
(Inclusive of all disciplines except Fire and Civil which are billed on an hourly basis)
Hourly Plan Review: $113 Non-Structural Review
$165 Structural Review
Fee includes:
Initial review and two (2) rechecks. Hourly
charges apply after three (3) or more
rechecks.
Shipping, courier, and electronic service.
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Proposal to Provide As-Needed Professional Services to the City of Sand City Page 59 Section 4: Fee Schedule February 1, 2023
Fire Inspector II................................................................................................................................... $170/hour Fire Inspector I .................................................................................................................................... $160/hour Planning
Housing Policy Director .................................................................................................................... $205/hour Planning Director .............................................................................................................................. $180/hour Principal/Planning Manager............................................................................................................. $165/hour Senior Planner .................................................................................................................................. $140/hour City Clerk........................................................................................................................................... $195/hour Associate Planner............................................................................................................................. $124/hour Assistant Planner ............................................................................................................................. $105/hour Planning Technician.......................................................................................................................... $90/hour Project Management
Project Manager................................................................................................................................. $175/hour Principal-in-Charge ............................................................................................................................. $245/hour Engineering, Public Works Inspection, & Construction Management (Prevailing Wage) Civil Plan Review (Grading, Improvement Plans) ............................................................................... . $175/hour Traffic Engineer................................................................................................................................... . $215/hour Construction Manager…………………………………………………………………………………………….……………….……. $182/hour Certified Access Specialist (CASp) Inspector (Regular time) …………………………………………………….…….. $165/hour Certified Access Specialist (CASp) Inspector (Nighttime) ……………………………………………………….…….… $186/hour Certified Access Specialist (CASp) Inspector (Overtime)…………………………………………………………….…… $223/hour Certified Access Specialist (CASp) Plans Examiner…………………………………………………………….……..…….. $165/hour Public Works Inspector (Regular Time) ……………………………………………………………………………………..…… $153/hour Public Works Inspector (Nighttime)…………………………………………………………………………………………..…….$172/hour Public Works Inspector (Overtime) …………………………………………………………………….……………..………..…$207/hour Public Works Inspector Apprentice………………………………………………………………………………...……………… $99/hour
BASIS OF CHARGES
Rates are inclusive of “tools of the trade” such as forms, telephones, and consumables. • All invoicing will be submitted monthly.
• Staff Augmentation work (excluding plan review) is subject to 4-hour minimum charges unless stated otherwise. Services billed in 4-hour increments.
• Most plan reviews will be done in 10 business days or less and 5 business days or less for re-checks. This is not inclusive of holidays or the day of the pick-up of plans. • Expedited reviews will be billed at 1.5x the plan review fee listed in the fee schedule. Return time will be within seven (7) days of receipt of the plans from the City. • Plan review of deferred submittals & revisions will be billed at the hourly rates listed. • All plan review services will be subject to a $250.00 minimum fee if percentage-based fee or 2-hour minimum charge if hourly rates apply.
• Larger complex plan reviews can be negotiated to achieve the best possible pricing. 230
Proposal to Provide As-Needed Professional Services to the City of Sand City Page 60 Section 4: Fee Schedule February 1, 2023
• All plan review services will be subject to 2-hour minimum fee. • All plan review services are billed on a percentage basis and includes the initial review and 2 rechecks. - Plan reviews will be billed on an hourly basis only after the initial review and 2 rechecks unless otherwise agreed upon on a case-by-case basis.
- Fire and Civil Reviews are billed on an hourly basis and are not included in our plan review percentage.
• 4LEAF assumes that these rates reflect the FY2023-2024 contract period. There will be a 3% escalation for FY2024-2025, FY2025-2026
• Overtime and Premium time will be charged as follows:
- Regular time (work begun after 5AM or before 4PM) 1 x hourly rate - Nighttime (work begun after 4PM or before 5AM) 1.125 x hourly rate - Overtime (over 8-hour M-F or Saturdays) 1.5 x hourly rate - Overtime (over 8 hours Sat or 1st 8-hour Sun) 2 x hourly rate - Overtime (over 8 hours Sun or Holidays) 3 x hourly rate • Overtime will only be billed with prior authorization of the Director or other designated City personnel. • All work with less than 8 hours rest between shifts will be charged the appropriate overtime rate. • Mileage driven during the course of Inspections will be charged at cost plus 20%. • Payment due on receipt. All payments over 30 days will be assessed a 1.5% interest charge. • Client shall pay attorneys’ fees, or other costs incurred in collecting delinquent amounts. • Client agrees that 4LEAF’s liability will be limited to the value of services provided. • In accordance with California’s Meal Break and Rest Break Law requirements, Client will be billed one (1) additional hour per day at the regular rate for each missed meal or rest break due to Client-directed tasks or requirements. Client should allow 4LEAF’s non-exempt, hourly employees the opportunity to take their entitled rest and meal breaks during each work shift.
BASIS OF CHARGES – PREVAILING WAGE • Rates shown assume the projects will require compliance with California Prevailing Wage rate requirements and assumes the Client will be filing a PWC-100 Form to the California Department of Industrial Relations (DIR) for the projects.
• Rates for prevailing wage categories are subject to annual escalations in accordance with the bi-annual wage determinations from the California DIR.
• Per the new requirements being enforced under SB 854 and because it is assumed that a PWC-100 Form will be filed by the Client to the CA DIR for each project, 4LEAF is required to notify an authorized Apprenticeship Committee through submittal of a DAS-140 form. We are then required to make an official request to an authorized Apprenticeship Committee for an apprentice by submitting a DAS-142 form. We are not assured the apprenticeship committee will be able to provide a suitable / qualified apprentice for the project. Per the apprenticeship requirements, the hours worked by the apprentice must be in a ratio of 1:5 for apprentice to journeyman hours. 4LEAF will not know the labor classification of the Public Works Apprentice until an Apprentice is dispatched to the site; therefore, the rates for the five Periods listed under the California DIR’s Wage determination for Building Construction Inspector were used to determine the range of hourly rates for Public Works Inspector Apprentice. 231
Proposal to Provide As-Needed Professional Services to the City of Sand City Page 61 Section 4: Fee Schedule February 1, 2023
• Pre-approved Overtime and Premium hours for labor categories subject to Prevailing Wage requirements will be charged per the following:
- Nighttime (work begun after 4PM or before 5AM) 1.125 x hourly rate - Overtime (over 8 hour M-F or Saturdays) 1.35 x hourly rate - Overtime (over 8 hours Sat or 1st 8 hour Sun) 1.85 x hourly rate - Overtime (over 8 hours Sun or Holidays) 2.35 x hourly rate • All invoicing will be submitted monthly.
• All work with less than 8 hours rest between shifts will be charged the appropriate overtime rate. • Project-related mileage for inspections will be billed at the allowable IRS Rate. • Payment due on receipt. All payments over 30 days will be assessed a 1.5% interest charge. • Client shall pay attorneys’ fees, or other costs incurred in collecting delinquent amounts. • Client agrees that 4LEAF’s liability will be limited to the value of services provided. • In accordance with California’s Meal Break and Rest Break Law requirements, Client will be billed one (1) additional hour per day at the regular rate for each missed meal or rest break due to Client-directed tasks or requirements. Client should allow 4LEAF’s non-exempt, hourly employees the opportunity to take their entitled rest and meal breaks during each work shift. 232
AGENDA ITEM
10C.
Approval of City RESOLUTION Approving a
Service Agreement Amendment with EMC
Planning Group, Inc. for Professional
Services for the Remainder of Fiscal Year
2022-2023 at a cost not to exceed $55,000
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AGENDA ITEM
10D.
Comments by Council Members on Items
of Interest to Sand City
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AGENDA ITEM
10E.
Upcoming Events/Meetings
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AGENDA ITEM
11A.
City Council/Successor Agency Board to
adjourn to Closed Session regarding
Conference with labor negotiator
pursuant to California Government Code
Section 54957.6 1) Agency designated
representative: Vibeke Norgaard, City
Manager; Adam Lindgren, Interim City
AttorneyEmployee Organization: Sand City
Police Officers Association (POA)
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AGENDA ITEM
11B.
Re-adjourn to Open Session to report any
action taken at the conclusion of Closed
Session in accordance with California
Government Code Section 54957.1
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