SPECIAL REVENUE FUNDS EXPENSE BUDGET CHANGES
2022/23 SHAFTER OPERATING BUDGET 109
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Special PD Services Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
92-Capital Outlay - 1,882 - - #.0% #Error
Total Special PD Services - 1,882 - - #.0% #Error
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Asset Forfeitures Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
94-Transfers-Out 31,439 - - - #.0% #Error
Total Asset Forfeitures 31,439 - - - #.0% #Error
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
LLMD Category Expenditures 2019/20 2020/21 2021/22 2022/23 Change Chg Total 83-Planned Operations 392,350 377,303 650,200 468,965 (181,235) -27.9% 81.9% 85-Required Operations 42,725 130,691 144,000 103,795 (40,205) -27.9% 18.1% 90-Debt Service - - - - #.0% #.0%
92-Capital Outlay - - - - #.0% .0%
Total LLMD 435,075 507,994 794,200 572,760 (221,440) -27.9% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Low-Mod Income Housing Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
83-Planned Operations 1,681 - - - #.0% #Error
Total Low-Mod Income Housing 1,681 - - - #.0% #Error
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
CDBG Category Expenditures 2019/20 2020/21 2021/22 2022/23 Change Chg Total 92-Capital Outlay - 5,013 - - #.0% #Error
93-Capital Projects 2,925 75 - - #.0% #Error
Total CDBG 2,925 5,088 - - #.0% #Error
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Road Maint & Rehab Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
93-Capital Projects 615,204 640,308 250,000 1,200,000 950,000 380.0% 100.0% Total Road Maint & Rehab 615,204 640,308 250,000 1,200,000 950,000 380.0% 100% 110 SHAFTER OPERATING BUDGET 2022/23
Federal Grants
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 415000-Miscelaneous Fees 1,000 - - - - -
Sub-Total 71-Fees for Service $1,000 $0 $0 $0 $0 $0
470100-FED GRNT - - - - - 2,000,000
470101-FED GRNT FTTP - - 41,993 3,901,031 - -
470103-FED GRNT ISTEA 406,450 1,488,263 41,690 - 179,241 - 470106-FED TRNT - STPL - - 397,500 - - -
470107-FED GRNT State Pass thru - - - - 2,440,176 2,440,176 Sub-Total 77-Grants & Donations $406,450 $1,488,263 $481,183 $3,901,031 $2,619,417 $4,440,176 Total Revenues $407,450 $1,488,263 $481,183 $3,901,031 $2,619,417 $4,440,176 580000-Capital Prj.- Land 462,254 - - - - -
580100-Capital Prj.- Infrastrucutre - 1,688,232 556,591 4,652,127 19,255 - Sub-Total 93-Capital Projects $462,254 $1,688,232 $556,591 $4,652,127 $19,255 $0 Total Expenses $462,254 $1,688,232 $556,591 $4,652,127 $19,255 $0 490000-Trans In - Gen Fund 58,391 - - - - -
490200-Trans In - Traffic Impact - 4,212 - 127,546 - 897,600 490700-Trans In - Gas Tax - 179,216 - 172,500 - 663,000 490800-Trans In - TDA Streets - - - - - -
Sub-Total 79-Transfers-In $58,391 $183,428 $0 $300,046 $0 $1,560,600 590000-Trans Out - Gen Fund 3,587 - - - - 1,440,176
590350-Trans Out - Water - - - - - 3,000,000
Sub-Total 94-Transfers-Out $3,587 $0 $0 $0 $0 $4,440,176 Total Transfers $61,978 $183,428 $0 $300,046 $0 $6,000,776 Total Federal Grants Net Surplus/(Deficit) $0 ($16,541) $2,600,162 ($451,050) $2,600,162 $1,560,600
FEDERAL GRANTS
2022/23 SHAFTER OPERATING BUDGET 111
Transportation
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 469900-Allocated Interest 44,403 19,164 17,521 12,168 - 6,173 Sub-Total 76-Investment Earnings $44,403 $19,164 $17,521 $12,168 $0 $6,173 400602-TDA Article 8 281,203 879,273 - 795,431 - 850,000 Sub-Total 77-Grants & Donations $281,203 $879,273 $0 $795,431 $0 $850,000 Total Revenues $325,606 $898,437 $17,521 $807,599 $0 $856,173 580000-Capital Prj.- Land 272,646 - (40,328) - - -
580100-Capital Prj.- Infrastrucutre - 829,454 46,563 1,300,000 12,547 1,225,000 580300-Capital Prj.- Other Imp. - 68,983 303,493 - 421,873 300,000 Sub-Total 93-Capital Projects $272,646 $898,437 $309,728 $1,300,000 $434,420 $1,525,000 Total Expenses $272,646 $898,437 $309,728 $1,300,000 $434,420 $1,525,000 590700-Trans Out - TDA 52,960 - - - - -
Sub-Total 94-Transfers-Out $52,960 $0 $0 $0 $0 $0
Total Transfers $52,960 $0 $0 $0 $0 $0
Total Transportation Net Surplus/(Deficit) $0 $0 ($317,734) ($492,401) ($434,420) ($668,827)
TRANSPORTATION
112 SHAFTER OPERATING BUDGET 2022/23
State Gas
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 400501-Gas Tax - Section 2103 64,379 144,017 136,377 157,520 136,796 173,401 400502-Gas Tax - Section 2105 105,733 106,541 104,140 115,715 95,142 120,942 400503-Gas Tax - Section 2106 47,642 45,982 46,098 50,239 43,608 51,939 400504-Gas Tax - Section 2107 132,970 132,029 140,919 147,167 110,196 164,818 400505-Gas Tax - Section 2107.5 4,000 5,000 5,000 5,000 5,000 5,000 400506-Gas Tax - State Repayment 21,732 23,480 - 22,200 - 20,890 Sub-Total 70-Taxes $376,456 $457,049 $432,534 $497,841 $390,742 $536,990 469900-Allocated Interest 35,582 45,796 18,447 29,079 - 5,922 Sub-Total 76-Investment Earnings $35,582 $45,796 $18,447 $29,079 $0 $5,922 Total Revenues $412,038 $502,845 $450,981 $526,920 $390,742 $542,912 580000-Capital Prj.- Land 909,443 - - - - -
580100-Capital Prj.- Infrastrucutre - - - 1,000,000 - 1,100,000 Sub-Total 93-Capital Projects $909,443 $0 $0 $1,000,000 $0 $1,100,000 Total Expenses $909,443 $0 $0 $1,000,000 $0 $1,100,000
590050-Trans Out - Federal Grants - 179,216 - 172,500 - 663,000 590900-Trans Out - Gas Tax 133,190 - - - - -
590950-Trans Out - RMRA - 194,429 - - - (11,767)
Sub-Total 94-Transfers-Out $133,190 $373,645 $0 $172,500 $0 $651,233 Total Transfers $133,190 $373,645 $0 $172,500 $0 $651,233 Total State Gas Net Surplus/(Deficit) ($630,595) $129,200 $390,742 ($645,580) $390,742 ($1,208,321)
GAS TAX
2022/23 SHAFTER OPERATING BUDGET 113
Traffic Safety
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 440003-Fines - Traffic Safety 29,132 39,891 65,925 40,000 67,806 26,520 Sub-Total 74-Fines, Forfeitures, $29,132 $39,891 $65,925 $40,000 $67,806 $26,520 469900-Allocated Interest 1,783 3,161 2,071 2,007 - 3,000 Sub-Total 76-Investment Earnings $1,783 $3,161 $2,071 $2,007 $0 $3,000 Total Revenues $30,915 $43,052 $67,996 $42,007 $67,806 $29,520 580000-Capital Prj.- Land - - - - - -
580100-Capital Prj.- Infrastrucutre - - - 100,000 - 4,500,000 580300-Capital Prj.- Other Imp. - 1,995 - - 18,171 20,000 Sub-Total 93-Capital Projects $0 $1,995 $0 $100,000 $18,171 $4,520,000 Total Expenses $0 $1,995 $0 $100,000 $18,171 $4,520,000 Total Traffic Safety Net Surplus/(Deficit) $30,915 $41,057 $49,635 ($57,993) $49,635 ($4,490,480)
TRAFFIC SAFETY
114 SHAFTER OPERATING BUDGET 2022/23
SLESF
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 469900-Allocated Interest 9,536 7,470 4,956 4,743 - 5,000 Sub-Total 76-Investment Earnings $9,536 $7,470 $4,956 $4,743 $0 $5,000 470001-CA Grant - SLEBG 148,747 155,948 156,727 162,500 123,393 - Sub-Total 77-Grants & Donations $148,747 $155,948 $156,727 $162,500 $123,393 $0 Total Revenues $158,283 $163,418 $161,683 $167,243 $123,393 $5,000 590100-Trans Out - SLEF 148,747 155,948 - 162,500 - -
Sub-Total 94-Transfers-Out $148,747 $155,948 $0 $162,500 $0 $0 Total Transfers $148,747 $155,948 $0 $162,500 $0 $0
Total SLESF Net Surplus/(Deficit) $9,536 $7,470 $123,393 $4,743 $123,393 $5,000
SUPPLEMENTAL LAW ENFORECMENT SERVICES
2022/23 SHAFTER OPERATING BUDGET 115
Special PD Services
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 469900-Allocated Interest 207 164 - 100 - -
Sub-Total 76-Investment Earnings $207 $164 $0 $100 $0 $0 Total Revenues $207 $164 $0 $100 $0 $0
570100-Automotive Equipment - - 1,351 - - -
570200-Machinery & Equipment - - 531 - - -
Sub-Total 92-Capital Outlay $0 $0 $1,882 $0 $0 $0
Total Expenses $0 $0 $1,882 $0 $0 $0
Total Special PD Services Net Surplus/
(Deficit)
$207 $164 $0 $100 $0 $0
SPECIAL PD SERVICES
116 SHAFTER OPERATING BUDGET 2022/23
Asset Forfeitures
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 469900-Allocated Interest 8,591 5,857 2,990 3,719 - 3,000 Sub-Total 76-Investment Earnings $8,591 $5,857 $2,990 $3,719 $0 $3,000 Total Revenues $8,591 $5,857 $2,990 $3,719 $0 $3,000
590000-Trans Out - Gen Fund - 31,439 - - - -
Sub-Total 94-Transfers-Out $0 $31,439 $0 $0 $0 $0
Total Transfers $0 $31,439 $0 $0 $0 $0
Total Asset Forfeitures Net Surplus/(Deficit) $8,591 ($25,582) $0 $3,719 $0 $3,000
ASSET FORFEITURE
2022/23 SHAFTER OPERATING BUDGET 117
LLMD
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 400301-Special Asmnt - LLMD 476,301 535,507 706,226 738,465 736,798 697,790 Sub-Total 70-Taxes $476,301 $535,507 $706,226 $738,465 $736,798 $697,790 469900-Allocated Interest 33,127 28,343 - 17,997 - -
Sub-Total 76-Investment Earnings $33,127 $28,343 $0 $17,997 $0 $0 Total Revenues $509,428 $563,850 $706,226 $756,462 $736,798 $697,790 510001-Departmental Supplies - 386 538 - - 20
510110-Landscaping Services - 193,907 357,656 565,200 509,937 425,745 510200-Repairs & Maintenance - 2,854 13,203 72,500 15,272 18,200 510204-Equipment Repair - 3,526 - - - -
510400-Professional Services 331,700 191,677 4,639 12,500 540 25,000 510420-Legal Services - - 1,267 - 925 -
Sub-Total 83-Planned Operations $331,700 $392,350 $377,303 $650,200 $526,674 $468,965 510704-Water 40,751 30,687 72,981 104,000 105,748 57,105 510705-Sewer - - - 1,000 - 1,020
510706-Refuse - - - 1,000 - 1,020
510707-Power - 12,038 57,710 38,000 58,335 44,650
Sub-Total 85-Required Operations $40,751 $42,725 $130,691 $144,000 $164,083 $103,795 550000-Interest Expense 5,345 - - - - -
Sub-Total 90-Debt Service $5,345 $0 $0 $0 $0 $0
570000-Furniture & Fixtures - - - - - -
Sub-Total 92-Capital Outlay $0 $0 $0 $0 $0 $0
Total Expenses $377,796 $435,075 $507,994 $794,200 $690,757 $572,760 Total LLMD Net Surplus/(Deficit) $131,632 $128,775 $236,159 ($37,738) $46,041 $125,030
LIGHTING, LANDSCAPE AND MAINTENANCE DISTRICT
118 SHAFTER OPERATING BUDGET 2022/23
Low-Mod Income Housing
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 469900-Allocated Interest 39,120 52,026 26,556 33,034 - 25,000 Sub-Total 76-Investment Earnings $39,120 $52,026 $26,556 $33,034 $0 $25,000 Total Revenues $39,120 $52,026 $26,556 $33,034 $0 $25,000 510400-Professional Services - 1,681 - - - -
Sub-Total 83-Planned Operations $0 $1,681 $0 $0 $0 $0
Total Expenses $0 $1,681 $0 $0 $0 $0
Total Low-Mod Income Housing Net Surplus/
(Deficit)
$39,120 $50,345 $0 $33,034 $0 $25,000
LOW-MOD INCOME HOUSING
2022/23 SHAFTER OPERATING BUDGET 119
CDBG
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 470102-FED GRNT CDBG 417,651 - - - - -
470108-FED GRNT County Pass Thru - - 45,987 - 5,064 -
Sub-Total 77-Grants & Donations $417,651 $0 $45,987 $0 $5,064 $0 Total Revenues $417,651 $0 $45,987 $0 $5,064 $0
570100-Automotive Equipment - - 5,013 - - -
Sub-Total 92-Capital Outlay $0 $0 $5,013 $0 $0 $0
580000-Capital Prj.- Land 412,220 - - - - -
580100-Capital Prj.- Infrastrucutre - - - - - -
580300-Capital Prj.- Other Imp. - 2,925 75 - - -
Sub-Total 93-Capital Projects $412,220 $2,925 $75 $0 $0 $0 Total Expenses $412,220 $2,925 $5,088 $0 $0 $0
490000-Trans In - Gen Fund - 2,950 - - - -
490800-Trans In - TDA Streets (5,431) - - - - -
Sub-Total 79-Transfers-In ($5,431) $2,950 $0 $0 $0 $0
Total Transfers ($5,431) $2,950 $0 $0 $0 $0
Total CDBG Net Surplus/(Deficit) $0 $25 $5,064 $0 $5,064 $0 CDBG
120 SHAFTER OPERATING BUDGET 2022/23
Road Maint & Rehab
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 400507-Gas Tax - SB1 (RMRA) 393,386 361,743 378,946 392,678 373,954 423,529 Sub-Total 70-Taxes $393,386 $361,743 $378,946 $392,678 $373,954 $423,529 469900-Allocated Interest 6,522 7,324 - 4,651 - -
Sub-Total 76-Investment Earnings $6,522 $7,324 $0 $4,651 $0 $0 Total Revenues $399,908 $369,067 $378,946 $397,329 $373,954 $423,529 580000-Capital Prj.- Land 234,734 546,831 - - - -
580100-Capital Prj.- Infrastrucutre - 68,373 640,308 250,000 200 1,200,000 Sub-Total 93-Capital Projects $234,734 $615,204 $640,308 $250,000 $200 $1,200,000 Total Expenses $234,734 $615,204 $640,308 $250,000 $200 $1,200,000 490700-Trans In - Gas Tax 133,190 194,429 - - - (11,767) Sub-Total 79-Transfers-In $133,190 $194,429 $0 $0 $0 ($11,767) Total Transfers $133,190 $194,429 $0 $0 $0 ($11,767)
Total Road Maint & Rehab Net Surplus/
(Deficit)
$298,364 ($51,708) $373,754 $147,329 $373,754 ($788,238)
ROAD MAINTENANCE & REHAB
INTERNAL SERVICE FUNDS
Internal Service Funds Expense Budget Change
Internal Service Funds Summary
Facilities Maintenance
Shop - Vehicle Maintenance
Risk Management
Information Technology
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Internal Service Funds 2019/20 2020/21 2021/22 2022/23 Change Chg Total Facility Maintenance 226,784 254,039 326,894 361,682 34,788 10.6% 12.6% Vehicle Maintenance 310,633 308,706 347,864 268,061 (79,803) -22.9% 9.3% Risk Management 1,944,095 2,421,491 1,940,755 1,061,566 (879,189) -45.3% 37.0% Information Technology 873,030 687,320 1,098,803 1,179,754 80,951 7.4% 41.1% Total Internal Service Funds $3,354,542 $3,671,556 $3,714,316 $2,871,063 ($843,253) -22.7% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Facility Maintenance Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
82-Wages & Benefits 97,300 103,366 116,126 112,902 (3,224) -2.8% 31.2% 83-Planned Operations 58,525 79,805 116,200 123,624 7,424 6.4% 34.2% 85-Required Operations 28,305 64,295 74,900 116,962 42,062 56.2% 32.3% 88-Operations -Internal 40,528 6,573 19,668 8,194 (11,474) -58.3% 2.3% 92-Capital Outlay 2,126 - - - #.0% #.0%
Total Facility Maintenance 226,784 254,039 326,894 361,682 34,788 10.6% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Vehicle Maintenance Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
82-Wages & Benefits 193,768 163,814 193,789 107,059 (86,730) -44.8% 39.9% 83-Planned Operations 70,407 70,650 97,500 100,680 3,180 3.3% 37.6% 85-Required Operations 22,139 17,557 22,000 17,040 (4,960) -22.5% 6.4% 88-Operations -Internal 24,319 56,685 34,575 43,282 8,707 25.2% 16.1% Total Vehicle Maintenance 310,633 308,706 347,864 268,061 (79,803) -22.9% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Risk Management Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
82-Wages & Benefits - 46,509 408 40,245 39,837 9764.0% #.0% 83-Planned Operations - - - - #.0% #.0%
85-Required Operations 1,465,629 2,234,816 1,940,347 1,021,321 (919,026) -47.4% 96.2% 88-Operations -Internal 478,466 140,166 - - #.0% #.0%
Total Risk Management 1,944,095 2,421,491 1,940,755 1,061,566 (879,189) -45.3% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Information Technology Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
82-Wages & Benefits 416,396 407,936 428,872 439,249 10,377 2.4% 37.2% 83-Planned Operations 227,881 175,026 411,035 504,000 92,965 22.6% 42.7% 85-Required Operations 39,556 26,752 40,274 65,716 25,442 63.2% 5.6% 88-Operations -Internal 179,997 69,600 120,842 119,789 (1,053) -.9% 10.2% 92-Capital Outlay 9,200 8,006 97,780 51,000 (46,780) -47.8% 4.3% Total Information Technology 873,030 687,320 1,098,803 1,179,754 80,951 7.4% 100%
INTERNAL SERVICE FUNDS EXPENSE BUDGET CHANGE
122 SHAFTER OPERATING BUDGET 2022/23
Facility
Maintenance
Vehicle
Maintenance
Risk
Management
Information
Technology Total
Revenues $ 370,439 $ 257,846 $ 1,061,566 $ 1,118,370 $ 2,808,221 Expenses:
82‐Wages & Benefits 112,902 107,059 40,245 439,249 699,455 83‐Planned Operations 123,624 100,680 ‐ 504,000 728,304 85‐Required Operations 116,962 17,040 1,021,321 65,716 1,221,039 88‐Operations ‐Internal 8,194 43,282 ‐ 119,789 171,265 Debt Service
Operating Expenses $361,682 $268,061 $1,061,566 $1,128,754 $2,820,063 Operating Income (Loss) $8,757 ($10,215) $0 ($10,384) ($11,842) 92‐Capital Outlay ‐ ‐ ‐ 51,000 51,000 CIP
Transfers
Non‐Operating Expenses $0 $0 $0 $51,000 $51,000
Net Income/(Loss) $ 8,757 $ (10,215) $ ‐ $ (61,384) $ (62,842) 370,439
257,846
1,061,566
1,118,370
361,682
268,061
1,061,566
1,179,754
‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Facility Maintenance
Vehicle Maintenance
Risk Management
Information Technology
22/23 Proposed Budget
Internal Service Funds
22/23 Proposed Expenses 22/23 Projected Revenue
INTERNAL SERVICE FUNDS SUMMARY
2022/23 SHAFTER OPERATING BUDGET 123
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget
21/22 YTD
Actual
22/23
Proposed
Revenues $ 159,340 $ 226,784 $ 266,775 $ 326,731 $ 168,364 $ 370,439 Expenses:
82‐Wages & Benefits ‐ 97,300 103,366 116,126 89,212 112,902 83‐Planned Operations 68,420 58,525 80,361 116,200 97,513 123,624 85‐Required Operations 51,836 28,305 64,295 74,900 128,784 116,962 88‐Operations ‐Internal 39,083 40,528 6,573 19,668 9,208 8,194 Debt Service
Operating Expenses $159,339 $224,658 $254,595 $326,894 $324,717 $361,682 Operating Income (Loss) $1 $2,126 $12,180 ($163) ($156,353) $8,757 92‐Capital Outlay ‐ 2,126 ‐ ‐ ‐ ‐ CIP
Transfers
Non‐Operating Expenses $0 $2,126 $0 $0 $0 $0
Net Income/(Loss) $ 1 $ ‐ $ 12,180 $ (163) $ (156,353) $ 8,757 $0.0M
$0.1M $0.1M $0.1M
$0.1M
$0.1M $0.1M
$0.1M
$0.1M
$0.2M $0.2M
$0.2M
$0.0M
$0.0M
$0.0M
$0.0M $0.0M
$0.0M
$0.2M
$0.2M
$0.3M
$0.3M
$0.2M
$0.4M
$0.0M
$0.1M
$0.1M
$0.2M
$0.2M
$0.3M
$0.3M
$0.4M
$0.4M
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget 21/22 YTD Actual 22/23 Proposed 22/23 Proposed Budget
Facilities Maintenance
Labor M&O Other Operating Expenses Capital Requests & CIP Revenues
FACILITIES MAINTENANCE SUMMARY
124 SHAFTER OPERATING BUDGET 2022/23
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget
21/22 YTD
Actual
22/23
Proposed
Revenues $ 256,381 $ 293,627 $ 323,752 $ 359,168 $ 179,585 $ 257,846 Expenses:
82‐Wages & Benefits 160,883 193,768 163,814 193,789 161,338 107,059 83‐Planned Operations 52,857 70,407 76,971 97,500 43,030 100,680 85‐Required Operations 16,758 22,139 17,557 22,000 11,821 17,040 88‐Operations ‐Internal 25,883 24,319 56,685 34,575 17,287 43,282 Debt Service
Operating Expenses $256,381 $310,633 $315,027 $347,864 $233,476 $268,061 Operating Income (Loss) $0 ($17,006) $8,725 $11,304 ($53,891) ($10,215) Capital Outlay
CIP
Transfers
Non‐Operating Expenses $0 $0 $0 $0 $0 $0
Net Income/(Loss) $ ‐ $ (17,006) $ 8,725 $ 11,304 $ (53,891) $ (10,215) $0.2M
$0.2M
$0.2M
$0.2M
$0.2M
$0.1M
$0.1M
$0.1M
$0.1M
$0.1M
$0.1M
$0.1M
$0.0M
$0.0M
$0.1M
$0.0M
$0.0M
$0.0M
$0.3M
$0.3M
$0.3M
$0.4M
$0.2M
$0.3M
$0.0M
$0.1M
$0.1M
$0.2M
$0.2M
$0.3M
$0.3M
$0.4M
$0.4M
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget 21/22 YTD Actual 22/23 Proposed 22/23 Proposed Budget
Shop/Vehicle Maintenance
Labor M&O Other Operating Expenses Capital Requests & CIP Revenues
SHOP SUMMARY
2022/23 SHAFTER OPERATING BUDGET 125
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget
21/22 YTD
Actual
22/23
Proposed
Revenues $ 1,504,395 $ 1,944,095 $ 2,420,070 $ 1,940,347 $ 448,535 $ 1,061,566 Expenses:
82‐Wages & Benefits ‐ ‐ 46,509 408 40,207 40,245 Planned Operationgs
83‐Planned Operations ‐ ‐ ‐ ‐ 8,819 ‐ 85‐Required Operations 1,153,192 1,465,629 2,234,816 1,940,347 1,814,911 1,021,321 Debt Service
Operating Expenses $1,153,192 $1,465,629 $2,281,325 $1,940,755 $1,863,937 $1,061,566 Operating Income (Loss) $351,203 $478,466 $138,745 ($408) ($1,415,402) $0 Capital Outlay
CIP
Transfers
Non‐Operating Expenses $0 $0 $0 $0 $0 $0
Net Income/(Loss) $ 351,203 $ 478,466 $ 138,745 $ (408) $ (1,415,402) $ ‐ $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
$1.2M
$1.8M
$1.5M
$1.9M
$2.4M
$1.9M
$0.4M
$1.1M
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
$2.5M
$3.0M
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget 21/22 YTD Actual 22/23 Proposed 22/23 Proposed Budget
Risk Management
Labor M&O Other Operating Expenses Capital Requests & CIP Revenues
RISK MANAGEMENT SUMMARY
126 SHAFTER OPERATING BUDGET 2022/23
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget
21/22 YTD
Actual
22/23
Proposed
Revenues $ 937,401 $ 849,871 $ 977,756 $ 488,878 $ 850,000 $ 1,118,370 Expenses:
82‐Wages & Benefits 416,396 407,936 428,872 384,453 443,000 439,249 83‐Planned Operations 227,881 175,496 411,035 290,398 324,070 504,000 85‐Required Operations 39,556 26,752 40,274 26,450 33,500 65,716 88‐Operations ‐Internal 179,997 69,600 120,842 35,420 83,000 119,789 Debt Service
Operating Expenses $863,830 $679,784 $1,001,023 $736,721 $883,570 $1,128,754 Operating Income (Loss) $73,571 $170,087 ($23,267) ($247,843) ($33,570) ($10,384) 92‐Capital Outlay 9,200 8,006 97,780 95,780 96,000 51,000 CIP
Transfers
Non‐Operating Expenses $9,200 $8,006 $97,780 $95,780 $96,000 $51,000 Net Income/(Loss) $ 64,371 $ 162,081 $ (121,047) $ (343,623) $ (129,570) $ (61,384) $0.4M $0.4M $0.4M $0.4M $0.4M $0.4M
$0.3M
$0.2M
$0.5M
$0.3M
$0.4M
$0.6M
$0.2M
$0.1M
$0.1M
$0.0M
$0.1M
$0.1M $0.1M
$0.9M
$0.8M
$1.0M
$0.5M
$0.9M
$1.1M
$0.0M
$0.2M
$0.4M
$0.6M
$0.8M
$1.0M
$1.2M
$1.4M
18/19 Actual 19/20 Actual 20/21 Actual 21/22 Budget 21/22 YTD Actual 22/23 Proposed 22/23 Proposed Budget
Information Technology
Labor M&O Other Operating Expenses Capital Requests & CIP Revenues
INFORMATION TECHNOLOGY SUMMARY
2022/23 SHAFTER OPERATING BUDGET 127
FACILITIES MAINTENANCE
Facility Maintenance
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 480100-Misc Refunds - - 259 - - -
Sub-Total 78-Other Revenue $0 $0 $259 $0 $0 $0
418000-Internal ISF Chrg - Building 159,340 226,784 266,516 326,731 168,364 370,439 Sub-Total 80-Operations -Internal $159,340 $226,784 $266,516 $326,731 $168,364 $370,439 Total Revenues $159,340 $226,784 $266,775 $326,731 $168,364 $370,439 500000-Full Time Wages - 57,679 57,920 72,850 52,706 62,973 500400-Overtime - - - - 3,433 -
500500-Cellphone Allowance - - 1,200 1,200 974 1,201
500502-Uniform & Equipment Allowance - 284 300 - 300 -
500506-Incentive- Bilingual Pay - - 960 960 779 961
500600-Retirement - 191 4,373 5,330 3,695 4,960
500800-Health Insurance - 31,346 21,453 22,748 15,563 23,784 500801-Dental Insurance - 34 707 643 509 643
500802-Vision Insurance - 16 337 307 243 307
500803-Life Insurance - 25 233 304 188 251
500880-Work Comp Insurance - 7,520 11,215 4,694 6,313 13,028 509000-Payroll Taxes - 205 4,668 7,090 4,509 4,794
Sub-Total 82-Wages & Benefits $0 $97,300 $103,366 $116,126 $89,212 $112,902 510000-Office Supplies - 181 339 1,200 486 1,224
510001-Departmental Supplies 1,828 4,933 713 6,000 6,723 5,100 510100-Service Agreements - 49 1,550 25,000 16,876 30,600 510103-Postage & Freight 16 - - 100 - 102
510106-Subscriptions & Dues - - - - - -
510109-Janitorial Services 64,528 35,946 54,113 62,400 50,575 63,648 510115-Recruitment - 90 - 200 - 204
510200-Repairs & Maintenance 2,048 15,737 20,754 20,000 20,982 21,420 510300-Vehicle Operations - 1,589 2,336 1,300 5,611 1,326 510302-Vehicle Operations - Fuel - - - - 497 -
510400-Professional Services - - - - 200 -
Sub-Total 83-Planned Operations $68,420 $58,525 $79,805 $116,200 $101,950 $123,624 510701-Communications 12,252 7,120 12,747 20,600 25,070 20,000 510704-Water - - 4,311 4,700 8,307 7,200
510705-Sewer - - 579 4,100 695 1,000
510706-Refuse - 132 2,295 3,100 4,346 3,162
510707-Power 39,584 20,311 41,971 39,800 84,555 80,000
510708-Natural Gas - 742 2,392 2,600 5,811 5,600
Sub-Total 85-Required Operations $51,836 $28,305 $64,295 $74,900 $128,784 $116,962 520000-Asset Replace - 1,250 938 1,250 - 1,275
520100-Internal ISF Chrg - Shop - 2,057 - 2,641 1,320 - 520200-Internal ISF Chrg - Building 36,869 27,959 - - - - 520300-Internal ISF Chrg - IT - 4,158 - 2,748 1,374 -
520400-Internal ISF Chrg - Liability 2,214 5,104 5,635 13,029 6,514 6,919 Sub-Total 88-Operations -Internal $39,083 $40,528 $6,573 $19,668 $9,208 $8,194 570000-Furniture & Fixtures - 2,126 - - - -
Sub-Total 92-Capital Outlay $0 $2,126 $0 $0 $0 $0
Total Expenses $159,339 $226,784 $254,039 $326,894 $329,154 $361,682 Total Facility Maintenance Net Surplus/
(Deficit)
$1 $0 ($156,353) ($163) ($160,790) $8,757
128 SHAFTER OPERATING BUDGET 2022/23
SHOP
Vehicle Maintenance
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 480000-Sale of Prop - Capitalized - 1,530 - - - -
Sub-Total 78-Other Revenue $0 $1,530 $0 $0 $0 $0
418002-Internal ISF Chrg - Shop 256,381 292,097 323,752 359,168 179,585 257,846 Sub-Total 80-Operations -Internal $256,381 $292,097 $323,752 $359,168 $179,585 $257,846 Total Revenues $256,381 $293,627 $323,752 $359,168 $179,585 $257,846 500000-Full Time Wages 106,474 112,443 112,400 136,544 108,098 73,025 500400-Overtime 8 111 2 - 392 -
500406-Overtime - Holiday 168 - - - - -
500500-Cellphone Allowance - - 18 60 55 61
500502-Uniform & Equipment Allowance - 2,052 1,767 1,500 1,404 - 500504-One-Time Compensation - - - - 2,271 -
500600-Retirement - 17,398 13,640 15,770 12,269 12,000
500800-Health Insurance 43,478 46,512 5,186 1,138 14,113 2,120 500801-Dental Insurance - 61 820 547 941 568
500802-Vision Insurance - 16 296 513 386 218
500803-Life Insurance - 48 471 537 403 293
500880-Work Comp Insurance 10,755 14,743 20,600 24,709 12,473 13,339 509000-Payroll Taxes - 384 8,614 12,471 8,533 5,435
Sub-Total 82-Wages & Benefits $160,883 $193,768 $163,814 $193,789 $161,338 $107,059 510000-Office Supplies 859 375 6,446 1,000 668 1,020
510001-Departmental Supplies 33,360 33,287 42,432 38,500 16,542 40,800 510109-Janitorial Services - 4,500 2,667 12,000 7,550 12,240 510200-Repairs & Maintenance 1,536 12,244 3,479 15,000 2,643 15,300 510300-Vehicle Operations 11,394 7,642 5,035 15,000 5,804 10,000 510302-Vehicle Operations - Fuel - - - - 3,163 5,000
510400-Professional Services 5,708 12,297 10,591 15,000 8,762 15,300 510420-Legal Services - - - - 575 -
510501-Training - 62 - 500 212 510
510505-Travel - - - 500 - 510
Sub-Total 83-Planned Operations $52,857 $70,407 $70,650 $97,500 $45,919 $100,680 510701-Communications 1,046 689 377 2,000 233 2,040
510704-Water - 451 - - - -
510705-Sewer - 30 - - - -
510706-Refuse - 3,025 2,962 4,075 - -
510707-Power 15,712 16,523 10,782 11,400 9,774 15,000
510708-Natural Gas - 1,421 3,436 4,525 1,814 -
Sub-Total 85-Required Operations $16,758 $22,139 $17,557 $22,000 $11,821 $17,040 520200-Internal ISF Chrg - Building 11,424 9,859 37,160 5,000 2,500 8,596 520300-Internal ISF Chrg - IT 9,838 8,931 10,595 15,253 7,626 20,245 520400-Internal ISF Chrg - Liability 4,621 5,529 8,930 14,322 7,161 14,441 Sub-Total 88-Operations -Internal $25,883 $24,319 $56,685 $34,575 $17,287 $43,282 Total Expenses $256,381 $310,633 $308,706 $347,864 $236,365 $268,061 Total Vehicle Maintenance Net Surplus/
(Deficit)
$0 ($17,006) ($53,891) $11,304 ($56,780) ($10,215)
2022/23 SHAFTER OPERATING BUDGET 129
RISK MANAGEMENT
Risk Management
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 418003-Internal ISF Chrg - Work Comp 925,036 1,214,083 1,496,469 1,043,276 - - 418004-Internal ISF Chrg - Liability 579,359 730,012 923,601 897,071 448,535 1,061,566 Sub-Total 80-Operations -Internal $1,504,395 $1,944,095 $2,420,070 $1,940,347 $448,535 $1,061,566 Total Revenues $1,504,395 $1,944,095 $2,420,070 $1,940,347 $448,535 $1,061,566 500000-Full Time Wages - - 35,499 379 27,179 31,281
500400-Overtime - - - - - -
500500-Cellphone Allowance - - 74 - 58 -
500501-Auto Allowance - - 210 - 75 -
500504-One-Time Compensation - - - - 2,363 -
500506-Incentive- Bilingual Pay - - 30 - 45 -
500600-Retirement - - 2,664 - 1,932 1,866
500800-Health Insurance - - 4,728 - 5,825 4,693
500801-Dental Insurance - - 107 - 118 138
500802-Vision Insurance - - 58 - 65 62
500803-Life Insurance - - 110 - 102 109
500880-Work Comp Insurance - - 328 - 236 161
509000-Payroll Taxes - - 2,701 29 2,209 1,935
Sub-Total 82-Wages & Benefits $0 $0 $46,509 $408 $40,207 $40,245 510012-Inmate Medical Supplies - - - - 8,819 -
Sub-Total 83-Planned Operations $0 $0 $0 $0 $8,819
510440-Work Compensation Insurance 925,036 1,214,083 1,496,469 1,043,276 776,187 - 510441-Employee Assistance Insurance 5,067 5,106 (5,958) 3,127 2,760 5,320 510442-Employee Risk Mgt Insurance 138,177 124,575 140,062 168,074 110,748 159,136 510443-Property Insurance 69,239 108,304 205,664 273,862 297,890 250,000 510444-Risk Management Administration 15,673 13,561 10,694 4,943 3,352 11,026 510445-Liability Insurance - - 387,885 447,065 623,974 595,839 Sub-Total 85-Required Operations $1,153,192 $1,465,629 $2,234,816 $1,940,347 $1,814,911 $1,021,321 520400-Internal ISF Chrg - Liability 351,203 478,466 140,166 - 7,204 - Sub-Total 88-Operations -Internal $351,203 $478,466 $140,166 $0 $7,204 $0 Total Expenses $1,504,395 $1,944,095 $2,421,491 $1,940,755 $1,871,141 $1,061,566 Total Risk Management Net Surplus/(Deficit) $0 $0 ($1,422,606) ($408) ($1,422,606) $0 130 SHAFTER OPERATING BUDGET 2022/23
INFORMATIN TECHONOLOGY
Information Technology
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 418001-Internal ISF Chrg - IT 958,690 937,401 849,871 977,756 488,878 1,118,370 Sub-Total 80-Operations -Internal $958,690 $937,401 $849,871 $977,756 $488,878 $1,118,370 Total Revenues $958,690 $937,401 $849,871 $977,756 $488,878 $1,118,370 500000-Full Time Wages 281,759 268,719 283,581 298,991 269,741 303,053 500100-Part Time Wages - 12,091 - - - -
500400-Overtime 6,988 4,569 2,616 5,600 1,871 -
500405-Overtime - Emergency - - - - - -
500500-Cellphone Allowance - - 1,108 3,600 3,208 3,603
500501-Auto Allowance - 800 1,292 4,800 4,685 185
500502-Uniform & Equipment Allowance - - 395 - - -
500600-Retirement - 30,425 20,957 22,482 19,408 23,523
500800-Health Insurance 108,708 95,290 49,335 56,129 57,582 69,092 500801-Dental Insurance - 87 1,792 1,629 1,922 2,061
500802-Vision Insurance - 38 792 709 785 921
500803-Life Insurance - 110 1,035 1,209 1,093 1,112
500880-Work Comp Insurance 2,660 3,272 23,063 5,048 3,582 13,940 509000-Payroll Taxes - 995 21,970 28,675 20,576 21,759
Sub-Total 82-Wages & Benefits $400,115 $416,396 $407,936 $428,872 $384,453 $439,249 510000-Office Supplies 124 478 371 1,500 569 1,530
510001-Departmental Supplies 1,840 4,388 10,890 44,220 7,637 33,000 510100-Service Agreements 8,527 9,976 2,367 3,000 1,583 2,040 510103-Postage & Freight - - 7 - 1 200
510105-Software Licensing 3,006 23,687 40,342 127,000 124,785 156,750 510106-Subscriptions & Dues 1,627 514 819 2,200 1,029 51,850 510107-System Support - - - - - -
510109-Janitorial Services - 3,000 600 825 - -
510115-Recruitment 574 730 - - 32 -
510200-Repairs & Maintenance - 1,319 815 1,100 5,887 3,060 510201-Website Maintenance 6,357 18,721 13,420 18,000 21,889 17,000 510202-Hardware Maintenance 7,271 56,930 19,896 32,500 30,039 45,800 510203-Software Maintenance 55,105 47,547 41,148 74,190 62,098 77,250 510204-Equipment Repair - - - - - -
510300-Vehicle Operations 883 1,079 653 2,000 850 2,040 510302-Vehicle Operations - Fuel - - - - 190 1,200
510400-Professional Services 24,615 45,308 22,992 79,000 69,641 95,000 510420-Legal Services - - - 3,000 350 -
510501-Training 1,928 2,054 8,294 5,500 2,503 3,000
510502-Training - Internal - - - 3,000 21 -
510505-Travel - - - 1,000 - 1,020
510602-Property Rental 12,150 12,150 12,412 13,000 13,050 13,260 Sub-Total 83-Planned Operations $124,007 $227,881 $175,026 $411,035 $342,154 $504,000 510701-Communications 3,524 7,120 3,272 5,000 3,122 5,100 510703-Internet 21,250 26,235 23,150 25,800 20,148 51,036 510704-Water 8,500 5,112 - 9,000 - 9,180
510707-Power - 902 330 474 3,180 400
510708-Natural Gas - 187 - - - -
Sub-Total 85-Required Operations $33,274 $39,556 $26,752 $40,274 $26,450 $65,716 520000-Asset Replace 50,000 50,000 37,500 50,000 - 51,000 520100-Internal ISF Chrg - Shop 1,805 2,057 2,334 2,641 1,320 2,578 520200-Internal ISF Chrg - Building 10,630 22,861 7,848 33,040 16,520 7,998 520300-Internal ISF Chrg - IT 93,414 83,905 - - - -
520400-Internal ISF Chrg - Liability 18,628 21,174 21,918 35,161 17,580 58,213 Sub-Total 88-Operations -Internal $174,477 $179,997 $69,600 $120,842 $35,420 $119,789 570000-Furniture & Fixtures - - - 2,000 - -
570200-Machinery & Equipment 30,837 9,200 8,006 95,780 95,780 51,000 Sub-Total 92-Capital Outlay $30,837 $9,200 $8,006 $97,780 $95,780 $51,000 Total Expenses $762,710 $873,030 $687,320 $1,098,803 $884,257 $1,179,754 Total Information Technology Net Surplus/
(Deficit)
$195,980 $64,371 ($343,623) ($121,047) ($395,379) ($61,384) 2022/23 SHAFTER OPERATING BUDGET 131
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CAPITAL FUNDS &
IMPACT FEES
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Capital Funds 2019/20 2020/21 2021/22 2022/23 Change Chg Total Water CIP 40,000 - - - #.0% #.0%
Wastewater CIP 5,008,794 143,136 111,518 250,000 138,482 124.2% 21.8% Traffic Mitigation 44,274 7,654 3,127,546 897,600 (2,229,946) -71.3% 78.2% Total Capital Funds $5,093,068 $150,790 $3,239,064 $1,147,600 ($2,091,464) -64.6% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Water CIP Category Expenditures 2019/20 2020/21 2021/22 2022/23 Change Chg Total 94-Transfers-Out 40,000 - - - #.0% #Error
Total Water CIP 40,000 - - - #.0% #Error
FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Wastewater CIP Category Expenditures 2019/20 2020/21 2021/22 2022/23 Change Chg Total 85-Required Operations - 24 - - #.0% #.0%
93-Capital Projects - 143,112 111,518 250,000 138,482 124.2% 100.0% 94-Transfers-Out 5,008,794 - - - #.0% #.0%
Total Wastewater CIP 5,008,794 143,136 111,518 250,000 138,482 124.2% 100% FY 22 vs FY23 Change
Actual Actual
Amended
Budget Budget Dollar Pct % of
Traffic Mitigation Category
Expenditures
2019/20 2020/21 2021/22 2022/23 Change Chg Total
93-Capital Projects 40,062 7,654 3,000,000 - (3,000,000) -100.0% #.0% 94-Transfers-Out 4,212 - 127,546 897,600 770,054 603.7% 100.0% Total Traffic Mitigation 44,274 7,654 3,127,546 897,600 (2,229,946) -71.3% 100%
CAPITAL & IMPACT FEES FUNDS BUDGET CHANGE
134 SHAFTER OPERATING BUDGET 2022/23
2022/23 SHAFTER OPERATING BUDGET 135
Water CIP
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 420000-Conect Fees 353,258 39,972 217,345 300,000 81,028 203,000 Sub-Total 72-Connection/Impact Fe $353,258 $39,972 $217,345 $300,000 $81,028 $203,000 469900-Allocated Interest 40,569 34,570 19,510 21,951 - 15,404 Sub-Total 76-Investment Earnings $40,569 $34,570 $19,510 $21,951 $0 $15,404 Total Revenues $393,827 $74,542 $236,855 $321,951 $81,028 $218,404 590350-Trans Out - Water - 40,000 - - - -
Sub-Total 94-Transfers-Out $0 $40,000 $0 $0 $0 $0
Total Transfers $0 $40,000 $0 $0 $0 $0
Total Water CIP Net Surplus/(Deficit) $393,827 $34,542 $81,028 $321,951 $81,028 $218,404 Wastewater CIP
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 420000-Conect Fees 1,577,838 1,413,429 2,314,493 1,300,000 1,695,552 1,524,000 420100-Impact Fees - - - - - -
Sub-Total 72-Connection/Impact Fe $1,577,838 $1,413,429 $2,314,493 $1,300,000 $1,695,552 $1,524,000 469900-Allocated Interest 260,657 118,558 74,990 75,280 - 60,000 Sub-Total 76-Investment Earnings $260,657 $118,558 $74,990 $75,280 $0 $60,000 Total Revenues $1,838,495 $1,531,987 $2,389,483 $1,375,280 $1,695,552 $1,584,000 510118-Credit Card Processing Fees - - 24 - - -
Sub-Total 85-Required Operations $0 $0 $24 $0 $0 $0
580000-Capital Prj.- Land - - - - - -
580100-Capital Prj.- Infrastrucutre - - 143,112 111,518 113,152 250,000 Sub-Total 93-Capital Projects $0 $0 $143,112 $111,518 $113,152 $250,000 Total Expenses $0 $0 $143,136 $111,518 $113,152 $250,000 591300-Trans Out - Wastewater Operat 61,828 5,008,794 - - - - Sub-Total 94-Transfers-Out $61,828 $5,008,794 $0 $0 $0 $0 Total Transfers $61,828 $5,008,794 $0 $0 $0 $0
Total Wastewater CIP Net Surplus/(Deficit) $1,776,667 ($3,476,807) $1,592,199 $1,263,762 $1,582,400 $1,334,000 Resufe CIP
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 420000-Conect Fees 10,979 2,356 7,581 10,000 428 2,329
Sub-Total 72-Connection/Impact Fe $10,979 $2,356 $7,581 $10,000 $428 $2,329 469900-Allocated Interest 10,781 8,855 4,521 5,623 - 3,379 Sub-Total 76-Investment Earnings $10,781 $8,855 $4,521 $5,623 $0 $3,379 470300-Donations - Misc 5,000 - - - - -
Sub-Total 77-Grants & Donations $5,000 $0 $0 $0 $0 $0
Total Revenues $26,760 $11,211 $12,102 $15,623 $428 $5,708 Total Resufe CIP Net Surplus/(Deficit) $26,760 $11,211 $428 $15,623 $428 $5,708 136 SHAFTER OPERATING BUDGET 2022/23
Park CIP
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 420000-Conect Fees 23,775 12,053 4,562 10,000 13,687 6,785 Sub-Total 72-Connection/Impact Fe $23,775 $12,053 $4,562 $10,000 $13,687 $6,785 469900-Allocated Interest 1,063 1,554 816 987 - 544
Sub-Total 76-Investment Earnings $1,063 $1,554 $816 $987 $0 $544 Total Revenues $24,838 $13,607 $5,378 $10,987 $13,687 $7,329 Total Park CIP Net Surplus/(Deficit) $24,838 $13,607 $13,687 $10,987 $13,687 $7,329 Asset Replacement
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 469900-Allocated Interest 146,406 129,621 67,800 82,305 - 50,000 Sub-Total 76-Investment Earnings $146,406 $129,621 $67,800 $82,305 $0 $50,000 417000-Asset Replace 109,000 109,000 59,250 109,000 - 111,180 417001-Asset Replace - Police 150,000 150,000 127,500 170,000 - 173,400 417002-Asset Replace - IT 50,000 50,000 37,500 50,000 - 51,000 Sub-Total 80-Operations -Internal $309,000 $309,000 $224,250 $329,000 $0 $335,580 Total Revenues $455,406 $438,621 $292,050 $411,305 $0 $385,580 Total Asset Replacement Net Surplus/(Deficit) $455,406 $438,621 $0 $411,305 $0 $385,580 Traffic Mitigation
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 420100-Impact Fees 1,606,670 960,076 2,688,835 1,500,000 1,556,217 1,500,000 Sub-Total 72-Connection/Impact Fe $1,606,670 $960,076 $2,688,835 $1,500,000 $1,556,217 $1,500,000 469900-Allocated Interest 250,678 240,761 144,427 152,875 - 130,000 Sub-Total 76-Investment Earnings $250,678 $240,761 $144,427 $152,875 $0 $130,000 Total Revenues $1,857,348 $1,200,837 $2,833,262 $1,652,875 $1,556,217 $1,630,000 580000-Capital Prj.- Land 44,386 - - - - -
580100-Capital Prj.- Infrastrucutre - 40,062 7,654 3,000,000 5,300 - Sub-Total 93-Capital Projects $44,386 $40,062 $7,654 $3,000,000 $5,300 $0 Total Expenses $44,386 $40,062 $7,654 $3,000,000 $5,300 $0 590050-Trans Out - Federal Grants - 4,212 - 127,546 - 897,600 Sub-Total 94-Transfers-Out $0 $4,212 $0 $127,546 $0 $897,600 Total Transfers $0 $4,212 $0 $127,546 $0 $897,600
Total Traffic Mitigation Net Surplus/(Deficit) $1,812,962 $1,156,563 $1,550,917 ($1,474,671) $1,550,917 $732,400 Median Mitigation
Actual Actual Actual
Amended
Budget 11Mo Actual Budget
Account 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23 420100-Impact Fees 1,569 - - - - 2,122
Sub-Total 72-Connection/Impact Fe $1,569 $0 $0 $0 $0 $2,122 469900-Allocated Interest 3,935 3,144 1,605 1,997 - 1,600 Sub-Total 76-Investment Earnings $3,935 $3,144 $1,605 $1,997 $0 $1,600 Total Revenues $5,504 $3,144 $1,605 $1,997 $0 $3,722
Total Median Mitigation Net Surplus/(Deficit) $5,504 $3,144 $0 $1,997 $0 $3,722
CAPITAL
IMPROVEMENT
PROGRAM (CIP)
Fleet Division
Request
Amount
PD Vehicle for Gossamer Grove Police 65,000
Sub‐Total General Fund New Fleet Requests $ 65,000 2 Patrol Vehicles ‐ Cycle Program Police 130,000
1/2 Ton Truck with 3/4 Ton Truck Public Facilities 65,000 1/2 Ton Truck with 3/4 Ton Truck Streets 65,000
Bucket Truck Streets 75%, Public Facilities 25% 100,000 Water Truck Streets 50,000
Sub‐Total General Fund Fleet Replacements $ 410,000 REPLACE Water Truck Water, Wastewater 50,000
REPLACE 1/2 Ton Truck with 3/4 Truck Water 65,000
Sub‐Total Water & Sewer $ 115,000
Total Fleet Requests $ 590,000
FLEET REQUESTS 20/23
138 SHAFTER OPERATING BUDGET 2022/23
Equipment Division
Request
Amount
Paint Machine Streets 25,000
Sub‐Total General Fund New Equipment Requests $ 25,000 MDC replacement and expansion Police 60,000 Eventide Audio Recorder Police 50,000
Sub‐Total General Fund Equipment Replacements $ 110,000 Juniper City Hall EX4200 Switch Information Technology 28,000 Tel‐Tec Alarm/Access Installs/Consolidati Information Technology 12,000 PD Data Center PSU 1 Information Technology 11,000 Sub‐Total Public Works Equipment Replacements $ 51,000 Total Equipment Requests $ 186,000
EQUIPMENT REQUESTS 20/23
2022/23 SHAFTER OPERATING BUDGET 139
Project General Fund Grant Total
City Hall Projects $0.3M $0.0M $0.3M
Citywide ADA Public Facilities Improvements $0.1M $0.0M $0.1M Shafter Aquatic Center Restoration $0.4M $2.2M $2.5M
Mannel Park Irrigation Improvements (ARPA) $0.0M $0.2M $0.2M Veterans Park Soccer Field Lighting (ARPA) $0.0M $0.5M $0.5M Core City Recreation Improvements $0.4M $2.2M $2.6M
North Shafter Community Park ‐ Prop 68 $0.0M $3.8M $3.8M Carryover FY22 Prop 68 Mannel Park LWCF Grant $0.3M $0.3M $0.5M Widen 7th Std. Rd.‐ Santa Fe to I‐5 $0.3M $0.8M $1.0M
Veterans Park Basketball Court (ARPA) $0.0M $0.3M $0.3M Kirschenmann Park Field Improvements (ARPA) $0.0M $0.4M $0.4M Sub‐Total Existing Projects $1.6M $10.5M $12.1M
Percent 13.4% 86.6%
Temporary Police Trailer/Substation at Gossamer Grove (ARPA) $0.0M $0.3M $0.3M New doors at Veterans Hall and City Hall to comply with ADA $0.1M $0.0M $0.1M Sub‐Total New Projects $0.1M $0.3M $0.4M
Percent 25.0% 75.0%
Total General Fund Multi‐Year CIP Projects $1.7M $10.8M $12.5M Percent 13.7% 86.3%
GENERAL FUND CIP 20/23
140 SHAFTER OPERATING BUDGET 2022/23
Project
19/20
Actual
20/19
Actual
21/22 YTD
Actual
2023
Propose
Project
Totals
Pedestrian Street Striping $0.0M $0.0M $0.0M $0.0M
Santa Fe Way Shoulder Project $0.0M $0.0M $1.5M $1.5M
Hwy 43 Roundabout Project @Santa Fe $0.0M $0.0M $3.0M $3.0M Curbs, Gutters, & Sidewalks $0.0M $0.0M $0.0M $0.0M
Pavement Sealing $0.1M $0.3M $0.3M $0.3M $0.9M
ADA Improv. to Streets & Sidewalks $0.0M $0.0M $0.2M $0.2M NPNS Street & Road Improvements $0.0M $0.1M $0.1M
Street Striping (TDA) $0.0M $0.0M $0.2M $0.2M
Zerker Road Sealing $0.0M $0.6M $0.0M $0.8M $1.5M
Sub‐Total Existing Projects $0.2M $1.0M $0.3M $6.0M $7.6M Seventh Std. Road RSTP ‐ FTIP Project $0.8M $0.8M
Lerdo Highway (SB1) $0.4M $0.4M
Poso Ave. & E. Euclid Ave. $1.1M $1.1M
Sub‐Total New Projects $0.0M $0.0M $0.0M $2.3M $2.3M
Total Streets Multi‐Year CIP Projects $0.2M $1.0M $0.3M $8.3M $9.9M STREETS CIP 20/23
2022/23 SHAFTER OPERATING BUDGET 141
Project
19/20
Actual
20/19
Actual
21/22 YTD
Actual
2023
Proposed
Project
Totals
Major Well or Casing Repairs $0.2M $0.3M $0.2M $0.2M $0.8M Water Tank Improvement $0.2M $0.7M $0.1M $0.1M $1.0M
Well Maintenance Projects $0.0M $0.0M $0.1M $0.1M $0.3M SCADA Project $0.0M $0.0M $0.0M $0.1M $0.1M
Water Meter Retrofits $0.1M $0.4M $0.6M $0.3M $1.3M
General Water Main Replacement $0.0M $0.0M $0.0M $0.1M $0.2M Sub‐Total Existing Projects $0.5M $1.4M $1.0M $0.8M $3.7M Well 21 (WIP) $0.0M $0.2M $0.0M $1.3M $1.5M
Well 22 North Shafter $0.0M $0.1M $0.1M
Tank 6 (WIP 80% EDA Grant/20% Water) $2.5M $2.5M
Water Meter ‐ New Installations $1.3M $1.3M
Sub‐Total New Projects $0.0M $0.2M $0.0M $5.2M $5.4M
Total Water Fund Multi‐Year CIP Projects $0.5M $1.5M $1.1M $5.9M $9.0M WATER CIP 22/23
142 SHAFTER OPERATING BUDGET 2022/23
Project
19/20
Actual
20/19
Actual
21/22 YTD
Actual
2023
Proposed
Project
Totals
Manhole Coating $0.3M $0.0M $0.3M $0.5M
South‐East Shafter Sewer Proj. $2.5M $0.1M $0.1M $0.3M $3.0M Sewer Lift Station Improv. $0.0M $0.0M $0.3M $0.2M $0.6M Wastewater Pre‐Treatment Proj. $0.0M $0.1M $0.0M $0.0M $0.1M WWTP Plant Maintenance Proj. $0.3M $0.3M
SCADA Wastewater Operations $0.1M $0.1M
Totals $2.6M $0.5M $0.5M $1.1M $4.6M
WASTEWATER CIP 22/23
2022/23 SHAFTER OPERATING BUDGET 143
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APPENDIX
Budget & Fiscal Policies
Compensation Philosophy
Appropiations Resolution
Budget Adoption Resolution
Employee Benefits
Glossary of Terms
146 SHAFTER OPERATING BUDGET 2022/23
BUDGET AND FISCAL POLICIES
BUDGET PURPOSE AND ORGANIZATION
A. Balanced Budget. The City will maintain a balanced budget. This means that:
1. Operating revenues must fully cover operating expenditures, including debt service and revenue sharing pass-throughs.
2. Ending fund balance/working capital must meet minimum policy levels or other target levels established by the Council for the fiscal year.
Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this situation, beginning fund balance should only be used to fund capital improvement plan projects or other “one-time,” non-recurring expenditures. (See Minimum Fund Balance and Reserves policy below for other circumstances when it would be appropriate to use beginning fund balance.)
B. Budget Objectives. Through its Budget, the City will link resources with goals and results by:
1. Identifying community needs for essential services.
2. Organizing the programs required to provide these essential services.
3. Describing programs and activities performed in delivering services.
4. Proposing objectives for improving the delivery of program services.
5. Identifying and appropriating the resources required to perform program activities and accomplish program objectives.
C. Measurable Objectives. The Budget will establish measurable program objectives and allow reasonable time to accomplish those objectives.
D. Goal Status Reports. The status of major program objectives will be formally reported to the Council on an ongoing, periodic basis.
E. Mid-Year Budget Reviews. The Council will formally review the City’s fiscal condition, and amend appropriations if necessary, six months after the beginning of each fiscal year.
Status: In Compliance. These practices are in place. However, linking resources to outcomes and measuring performance will always be a work in progress, with ongoing improvements.
REVENUE MANAGEMENT
A. Current Revenues for Current Uses; One-Time Revenues for One-Time Purposes. The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by postponing needed expenditures, accruing future revenues or rolling over short-term debt. The City will avoid using one-time revenues to fund ongoing program costs.
B. Revenue Distribution. The Council recognizes that generally accepted accounting principles for state and local governments discourage the “earmarking” of General Fund
BUDGET & FISCAL POLICIES
2022/23 SHAFTER OPERATING BUDGET 147
BUDGET AND FISCAL POLICIES
revenues, and accordingly, the practice of designating General Fund revenues for specific programs should be minimized in the City's management of its fiscal affairs. In those cases where it does occur, the basis and methodology for earmarking should be clearly articulated in the City’s Budget and Fiscal Policies.
Status: In Compliance. These practices are in place. The Council has adopted a budget process and document for 2021-22 that meets these policy objectives.
MINIMUM FUND BALANCE AND RESERVES
Section 1: Policy
A. Policy Overview. This policy accomplishes two main goals. First, it sets forth specific levels of minimum unassigned fund balance to be maintained for the City's General Fund and a minimum level of available working capital for the City's Water, Wastewater and Refuse enterprise funds. Secondly, this policy establishes a framework and process for the City to follow if these reserve levels falls below the established minimum.
This policy provides guidelines for fiscal sustainability through maintaining adequate operational liquidity and should be used in the preparation of the City's Annual Operating Budget, Capital Improvement Plan and general financial management of the City. It does recognize the need for exceptions in extraordinary conditions and unforeseeable events while maintaining a goal and path to regain fiscal sustainability when necessary.
This Policy should be submitted periodically for peer review, if available, to confirm compliance with best practices and industry standards, including those issued by the Governmental Finance Officers Association of the United States and Canada (GFOA) in setting reserve levels that adequately address risks such as:
1. Economic uncertainties, local disasters, public heath crises and other financial hardships or downturns in the local or national economy.
2. Contingencies for unseen operating or capital needs.
3. Unfunded liabilities such as self-insurance, pensions and retiree health obligations.
4. Institutional changes, such as State budget takeaways and unfunded mandates.
5. Cash flow requirements.
While an independent review does not serve as a substitute for adoption by the Council, it does demonstrate staff's due diligence in the preparation and updating of the policy.
B. Objectives. The purpose of this policy is to assist the City in the pursuit of the following equally important objectives:
1. Maintain long-term fiscal sustainability of the General, Water, Wastewater and Refuse Funds.
2. Meet the short-term liquidity needs of the General, Water, Wastewater and Refuse Funds.
3. Cultivate a fiscally responsible internal control environment.
4. Help achieve the highest possible credit ratings and lowest possible financing costs when borrowing funds.
148 SHAFTER OPERATING BUDGET 2022/23
BUDGET AND FISCAL POLICIES
C. Budget Integration and Financial Management. The City's Annual Operating Budget and Capital Improvement Plan should be developed to comply and implement the various aspects of this policy. This includes but is not limited to both the budgeted use of excess unassigned fund balance or available working capital and the rebuilding of the same as needed to maintain compliance with the minimum reserve levels established herein. As a part of the budget process the City should conduct a sustainability analysis of the General Fund, which compares actual and budgeted recurring revenue sources with recurring expenditures. This tool can help identify a fiscal imbalance before it erodes the General Fund unassigned fund balance.
Any areas of shortfall or otherwise non-compliance with the minimum reserve levels contained within this policy should be disclosed in the City’s Annual Operating Budget document and Comprehensive Annual Financial Report, including a response from management on what actions are being taken to bring the City back into compliance with the policy.
D. Annual Policy Review. Recognizing the liquidity needs of the City will change over time due to items such as the volatility of expenditures; exposure to significant one-time outlays; potential impact on the City's bond rating and cost of borrowed funds; other fiscal commitments and assignments; and the availability of other funds. Accordingly, this policy will be reviewed in conjunction with the City's budget process. Any changes to the policy shall be brought to the Council for consideration and approval.
Section 2: Minimum Balances
The following amounts are hereby established as the minimum unassigned fund balance for the City's General Fund and minimum available working capital for the City's major utility enterprise funds.
A. General Fund. At the end of each fiscal year, the General Fund should have a minimum unassigned fund balance of at least 50% of annual operating expenditures. This is determined based on operating, debt service and revenue sharing pass-through expenditures, less any significant one-time operating costs. This represents 180 days of General Fund operating cash flow and is conservatively based on the risk assessment methodology for setting reserve levels developed by the GFOA.
B. Water, Wastewater and Refuse Funds. The City operates three major utility enterprise funds: water, wastewater and refuse, which provide essential public services that are paid for by users of these services. Maintaining adequate liquidity in these funds is an essential factor in the City's ability to provide these services without interruption. Accordingly, at the end of each fiscal year the City should have a minimum available working capital balance (current assets less current liabilities, minus amounts designated for funding capital projects) in each of these enterprise funds at equal or more than 25% annual operating expenditures for that fund. This is determined based on operating, debt service and revenue sharing pass-through expenditures, less any significant one-time operating costs.
This minimum available working capital balance should be factored into all future user rate studies used to establish utility user rates for these three funds.
C. Taking Reserves Below Minimum Policy Levels. There are circumstances where intentionally taking reserves below the established policy levels would be appropriate in 2022/23 SHAFTER OPERATING BUDGET 149
BUDGET AND FISCAL POLICIES
responding to the risks that reserves are intended to mitigate and are not considered a violation of this policy. These include one-time uses such as:
1. Making investments in human resources, technology, economic development, productivity improvements and other strategies that will reduce future costs or increase future revenue sources.
2. Reducing ongoing expenditures through the partial or full refinancing of liabilities.
3. Closing short-term revenue/expenditure gaps.
4. Responding to unexpected expenditure requirements or revenue shortfalls.
5. Meeting one-time cash flow needs as well as normal cash flow needs during the year.
6. Where a forecast shows an ongoing structural gap, providing a strategic bridge to the future.
Any intentional use of reserves that reduces reserve levels below the minimum policy levels shall be specifically approved by the Council.
Section 3: Correcting Balances Below the Minimum Balance Whenever funds with established minimum balances per this policy fall below these minimal levels, the City will strive to restore these balances to the minimum level within a three-year period. Some actions that may be considered to rectify this situation include the following:
A. General Fund
1. Strategically reducing general fund operating budgets.
2. Updating and improving the City's economic development strategy.
3. Assessing workload and staffing levels to ensure appropriate staffing of General Fund operations, redeploy staffing if necessary.
4. Conduct a revenue study to update General Fund revenue sources that may have fallen behind.
5. Conduct an analysis of the General Fund cost allocation to plan to ensure other City funds are paying the appropriate fees for the General Fund services they receive.
6. Identify special revenues or other funds that can help support the General Fund.
B. Water, Wastewater and Refuse Funds
1. Strategically reduce operations budgets.
2. Initiate a user rate analysis and implement rate changes as needed.
3. Analyze existing debt and possible refinancing options to reduce existing debt service costs.
150 SHAFTER OPERATING BUDGET 2022/23
CITY STAFF AND OFFICIALS
4. Defer non-essential capital improvement projects until adequate funding can be secured through rate increases, grants or debt issuance.
Section 4: Use of Balances Exceeding the Minimum Balance At times, the City may find itself with unassigned General Fund balances and/or available working capital in the Water, Wastewater and Refuse funds that exceed the minimums established by this policy. This policy does not require or recommend that those additional reserve funds be spent down but it does establish the following guidelines regarding the potential use of those funds.
A. Excess reserve funds are not to be used for new or existing recurring expenses except on a short-term basis.
B. Investment of these funds on a longer-term basis, in compliance with the City's Investment Policy, should be considered to provide an ongoing source of recurring investment income for the City
C. Assignment or use of these funds should be considered for early partial or full retirement of existing debt or other City liabilities.
D. A review of the one-time capital improvements needed within the City should be considered to identify and prioritize potential capital projects. Once potential projects have been identified, assignment or use of these funds should be considered for these one-time capital improvement projects.
E. New (as opposed to replacement) one-time capital improvement projects considered for funding should be consistent with the long-term planning of the Council and community led Shafter Visioning project.
Status: In Compliance. The projected unassigned General Fund balance at the end of 2021-22 is 79% of operating and revenue-sharing pass-through expenditures; and working capital balances at the end of 2020-21 compared to budgeted expenditures are projected to be 68% of operating and debt service expenditures in the Water Fund and 175% in the Wastewater Fund.
While working capital is projected to be 16% of operating expenditures in the Refuse Fund, this was due to the drawdown of $300,000 for capital investment in 2020-21 and is an increase over the 8% working capital ratio in the 2020-21 budget. In accordance with Section 3 of this policy, the goal is to restore the Refuse Fund working capital balance to 25% within two more years. Additionally, within this fiscal year the next rate study is to be completed, which is to adjust rates to incorporate the working capital calculations in the new rates. This is one of the tools in the policy for use in rectifying the shortfall in meeting the policy ratio.
FINANCIAL REPORTING AND BUDGET ADMINISTRATION
A. Annual Reporting. The City will prepare annual financial statements as follows:
1. In accordance with Charter requirements, the City will contract for an annual audit by a qualified independent certified public accountant. The City will strive for an unqualified auditors’ opinion.
2. The City will use generally accepted accounting principles in preparing its annual financial statements and will strive to meet the requirements of the GFOA’s Award for Excellence in Financial Reporting program.
2022/23 SHAFTER OPERATING BUDGET 151
CITY STAFF AND OFFICIALS
3. The City will issue audited financial statements within 180 days after year-end.
B. Interim Reporting. The City will prepare and issue timely interim reports on the City’s fiscal status to the Council and staff. This includes on-line access to the City’s financial management system; monthly reports to program managers; more formal quarterly reports to the Council and Department Heads; mid-year budget reviews; and interim annual reports.
C. Budget Administration. The Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. Council approval is required for all new appropriations from fund balance. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.
Status: In Compliance. These practices are in place.
152 SHAFTER OPERATING BUDGET 2022/23
COMPENSATION PHILOSOPHY
2022/23 SHAFTER OPERATING BUDGET 153
154 SHAFTER OPERATING BUDGET 2022/23
2022/23 SHAFTER OPERATING BUDGET 155
156 SHAFTER OPERATING BUDGET 2022/23
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER,
CALIFORNIA, SETTING FORTH AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022/2023 CONSISTENT WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION AND SELECTING THE ANNUAL ADJUSTMENT FACTORS.
WHEREAS, Section 7910 of the Government Code, which became effective on January 1, 1981, requires that the governing body of each local jurisdiction establish by Resolution its Appropriations Limit for the following fiscal year pursuant to Article XIII B of the California State Constitution at a regularly scheduled or noticed special meeting; and WHEREAS, in accordance with Government Code Section 7910, the City Council must select annually the inflationary change factor for purposes of calculating the appropriations limit; and
WHEREAS, in accordance with Government Code Section 7910, the City Council must select annually the population growth factor for purposes of calculating the appropriations limit; and
WHEREAS, an appropriations limit has been calculated in accordance with applicable law; and
WHEREAS, in accordance with Government Code Section 7910, the information on the calculation of the appropriations limit has been made available to the public at least 15 days prior to the date of adoption of this resolution, and continues to be available for public inspection.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
Section 1. That the City Council of the City of Shafter establishes its Appropriations Limit for the 2022/23 fiscal year at $389,388,819.
Section 2. That the City Council of the City of Shafter has selected the “percentage change in California per capita personal income” as the inflationary change factor and the “percentage change in City population” as the population growth factor used in the calculation of the 2022/23 Appropriations Limit.
PASSED, APPROVED AND ADOPTED this 21st day of June, 2022. __________________________
Cathy L. Prout, Mayor
ATTEST:
__________________________
Yazmina Pallares, City Clerk
APPROPIATIONS LIMITS RESOLUTION
2022/23 SHAFTER OPERATING BUDGET 157
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER,
CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR 2022-2023 AND
APPROPRIATING THE FUNDS NECESSARY TO MEET THE EXPENDITURES SET
FORTH THEREIN
WHEREAS, in accordance with Section 7.06(A) and (F) of the Charter of the City of Shafter, the City Manager has submitted to the City Council an Annual Budget and Capital Improvement Plan for Fiscal Year 2022/2023 having proposed expenditures and transfers for all City funds on or before the first working day of the last month of the current fiscal year; and WHEREAS, pursuant to section 7.06(F) of the Charter of the City of Shafter, the City Council shall set a dollar amount or percentage of funds limit under which the City Manager may transfer monies between departments, divisions, programs, and accounts within funds and departments; and
WHEREAS, the City Council of the City of Shafter has heretofore considered said budget; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SHAFTER
CALIFORNIA DOES HEREBY
Section 1: Find, Determine and Declare that the Budget for Fiscal Year 2022/2023 in substantially the same form as attached hereto is approved, adopted, and said funding is appropriated.
Section 2: The City Manager, or his or her designee, is authorized to transfer appropriations between departments, divisions, programs and accounts within funds and departments in any amount so long as there is no net increase in appropriations within any individual fund or the City as a whole.
PASSED, APPROVED AND ADOPTED this 21st day of June, 2022.
Cathy L. Prout, Mayor
ATTEST:
Yazmina Pallares, City Clerk
BUDGET ADOPTION RESOLUTION
158 SHAFTER OPERATING BUDGET 2022/23
Position FY 21/22 FY 22/23
YoY
Change
City Manager 1.00 1.00 ‐
Community Engagement Manager 1.00 1.00 ‐ City Clerk 1.00 1.00 ‐
Office Technician 1.00 1.00 ‐
MCCF Corrections Chief ‐ 1.00 (1.00) City Manager Total 5.00 4.00 (1.00)
Building Official 1.00 1.00 ‐
Building Inspector Supervisor 1.00 1.00 ‐ Building Inspector II 1.00 1.00 ‐ Building Inspector I 2.00 2.00 ‐
Administrative Assistant I 1.00 1.00 ‐ Clerk Typist 1.00 1.00 ‐
Code Enforcement II 1.00 1.00 ‐
Facilities Construction Specialist II 1.00 1.00 ‐ Building Total 9.00 9.00 ‐
Police Chief 1.00 1.00 ‐
Assistant Police Chief 1.00 1.00 ‐ Police Lieutenant 1.00 2.00 1.00
Police Captain ‐ 1.00 (1.00)
Administrative Assistant II 1.00 1.00 ‐ Police Sergeant 5.00 5.00 ‐
Police Senior Officer 6.00 6.00 ‐ Police Officer 18.00 19.00 1.00
Police Service Technician 1.00 1.00 ‐ Police Records Supervisor 1.00 1.00 ‐ Police Dispatcher 6.00 6.00 ‐
Police Total 42.00 43.00 1.00
Animal Control Manager 1.00 1.00 ‐ Animal Control Officer 1.00 1.00 ‐ Animal Control Services Worker 2.00 2.00 ‐ Animal Control Total 4.00 4.00 ‐
Business Development Director 1.00 1.00 ‐ Economic Development 1.00 1.00 ‐
Planning Director 1.00 1.00 ‐
Senior Planner 1.00 1.00 ‐
Planning 2.00 2.00 ‐
Education Partnership Director 1.00 1.00 ‐ Learning Center Manager 1.00 1.00 ‐ Education Partnership Total 2.00 2.00 ‐ Citywide Authorized FT Positions
FULL-TIME POSITIONS
2022/23 SHAFTER OPERATING BUDGET 159
Position FY 21/22 FY 22/23
YoY
Change
Public Works Director 1.00 1.00 ‐ Public Works Manager 1.00 1.00 ‐
City Engineer 1.00 1.00 ‐
Engineer I 1.00 1.00 ‐
Associate Engineer 1.00 1.00 ‐
PW Inspector 1.00 1.00 ‐
GIS Coordinator 1.00 1.00 ‐
GIS Technician 1.00 1.00 ‐
Administrative Assistant I 1.00 1.00 ‐ Clerk Typist 1.00 1.00 ‐
Parks Foreman ‐ 1.00 (1.00)
Service Crew Member II (PY Maint Worker) 3.00 7.00 4.00 Service Crew Member I (PY Laborer I/II) 7.00 8.00 1.00 Utility Manager 1.00 1.00 ‐
Utility Technician 2.00 2.00 ‐
Utility Operator II 1.00 1.00 ‐
Utility Operator I 2.00 2.00 ‐
Equipment Operator 3.00 1.00 (2.00)
Public Facilities Manager 1.00 1.00 ‐ Mechanic 1.00 1.00 ‐
Public Works Total 32.00 34.00 2.00
Administrative Service Director 1.00 1.00 ‐ Accounting Manager 1.00 1.00 ‐
Payroll Technician 1.00 1.00 ‐
Account Clerk II 1.00 1.00 ‐
Account Clerk I 2.00 2.00 ‐
Finance Clerk 1.00 1.00 ‐
Finance Total 7.00 7.00 ‐
Transit Driver 1.00 1.00 ‐
Public Transit Total 1.00 1.00 ‐
IT Manager ‐ Systems (PY IT Specialist II) 1.00 1.00 ‐ IT Manager ‐ Network 1.00 1.00 ‐
Information Technology Specialist I 1.00 1.00 ‐ Information Technology Total 3.00 3.00 ‐ HR Manager 1.00 1.00 ‐
HR Analyst II 1.00 1.00 ‐
Admin Assistant I (PY Office Tech) 1.00 1.00 ‐ Human Resources Total 3.00 3.00 ‐
Citywide Total 111.00 113.00 2.00
160 SHAFTER OPERATING BUDGET 2022/23
Staffing Summary - Part Time Employees (hours)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 Fund Name Department/Division Budget Budget Budget Budget Budget Budget Budget Administrative Director
General Fund Educational Partnership - - - - - - -
- - - - - - -
Aides
General Fund Educational Partnership - - - - - - -
- - - - - - -
Building Inspector
General Fund Building - - - - - - -
- - - - - - -
Clerk
General Fund Educational Partnership 125 125 - 125 125 - - 125 125 - 125 125 - -
Clerk Typist
General Fund Planning 686 686 686 686 686 440 686
General Fund Engineering Services 86 86 86 86 86 - -
General Fund Building 686 686 686 686 686 440 686
General Fund Educational Partnership 1,920 1,920 - 1,920 1,920 - - General Fund City Manager - - - - - 640 -
Water Fund Water Operations 86 86 86 86 86 - 100
Wastewater Fund Wastewater Operations 86 86 86 86 86 - 100 Refuse Fund Refuse Operations 86 86 86 86 86 - -
3,636 3,636 1,716 3,636 3,636 1,520 1,572
Deputy Police Chief
General Fund Police Services 960 960 - 960 960 - 960
960 960 - 960 960 - 960
Drivers
Transit Fund Transit Operations 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600
Engineering Extra Help
Water Fund Water Operations - - - - - - 250
Wastewater Fund Wastewater Operations - - - - - - 250
Refuse Fund Refuse Operations - - - - - - -
General Fund Engineering Services - - - - - - 250
- - - - - - 750
Finance Manager
General Fund Financial Services - - - - - - -
Water Fund Water Operations - - - - - - -
Wastewater Fund Wastewater Operations - - - - - - -
Refuse Fund Refuse Operations - - - - - - -
Transit Fund Transit Operations - - - - - - -
- - - - - - -
Intern
Information Technology Automation Maintenance 240 240 - 240 240 - 960 General Fund Engineering 1,480 1,480 1,480 1,480 1,480 1,480 1,480 General Fund Building 160 160 160 160 160 640 640
General Fund Planning 160 160 160 160 160 - 160
General Fund Educational Partnership - - - - - - -
2,040 2,040 1,800 2,040 2,040 2,120 3,240
Laborer
General Fund Parks & Tree Maintenance - - - - - - -
General Fund Streets & Sidewalks - - - - - - -
Water Fund Water Operations - - - - - - -
Wastewater Fund Wastewater Operations - - - - - - -
Refuse Fund Refuse Operations - - - - - - -
- - - - - - -
Librarian
General Fund Educational Partnership 125 125 - 125 125 - - 125 125 - 125 125 - -
Nurse
CCF Operations Fund Corrections Operations 480 480 480 480 480 - - 480 480 480 480 480 - -
Planning Director
General Fund Planning - - - - - - -
- - - - - - -
PART-TIME HOURS
2022/23 SHAFTER OPERATING BUDGET 161
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 Fund Name Department/Division Budget Budget Budget Budget Budget Budget Budget Police Officer
General Fund Police Services - - - - - - -
- - - - - - -
Principal
General Fund Educational Partnership 175 175 - 175 175 - - 175 175 - 175 175 - -
Recreation Coordinator
General Fund Recreation & Community Facil - - - - - - - - - - - - - -
Recreation Worker
General Fund Recreation & Community Facil - - - - - - - - - - - - - -
Shelter Workers
General Fund Animal Control - - - - - - -
- - - - - - -
Teacher I
General Fund Educational Partnership 1,350 1,350 408 1,350 1,350 408 3,683 1,350 1,350 408 1,350 1,350 408 3,683
Tutor II
General Fund Educational Partnership - - - - - - 3,919
- - - - - - 3,919
Tutor
General Fund Educational Partnership 4,650 4,650 4,650 4,650 4,650 6,858 2,939 4,650 4,650 4,650 4,650 4,650 6,858 2,939
Vets Hall Laborer
General Fund Recreation & Community Facil 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Total Part Time Employees (hours) 20,141 20,141 15,654 20,141 20,141 17,506 23,663 162 SHAFTER OPERATING BUDGET 2022/23
SUMMARY OF EMPLOYEE BENEFITS
The following information is intended as a ready reference and brief summary of the City’s personnel policies, work rules and benefits. It is designed to provide a quick overview and access to general information conditioned on your employment status as a full-time employee. Unless otherwise specifically indicated, part-time, extra help and temporary employees are excluded. This summary is not intended to provide an entire benefit description and cannot anticipate every situation or answer every question. This is not an employment contract or a legal document and does not constitute a contract. To retain flexibility, the City’s personnel policies, work rules, benefits and other provision frequently change without notice to its employees. The information may not be current or may differ due to changes in the employee bargaining agreements. Refer to respective plan brochures, city policies and procedures, and employee bargaining agreements for benefit provisions, limitations, and exclusions. Prior to acting based on any information, you should contact the Human Resources Department at 746-5003. Probation:
The probationary period is the final step in the selection process. It is an extension of the examination process. An employee is considered at will and may be rejected anytime for failure to satisfactorily complete the probationary period. The length of the probationary period is six (6) months, except that peace officers and dispatchers serve a twelve (12) month probation. The probationary period may be extended for a maximum of six (6) additional months.
Performance Appraisal Reports (PAR):
A Performance Appraisal Report (PAR) is scheduled at the conclusion of the probationary period and annually. As approved by the Department Head and City Manager, a merit increase is awarded based on an overall satisfactory or better rating on the annual PAR when normally increasing job productivity is documented.
Pay Plan:
The duties and responsibilities determine each job classification and is assigned a salary range. Five steps of compensation exist within that salary range (Steps A through E). Step A represents the minimum rate of compensation and Step E represents the maximum. There is a difference of 5% between each salary step. Each step represents an increasing level of responsibility and competence. Advancement in step is considered on a merit basis subject to the approval of the Department Head and City Manager. Tax Withholding Statement (W-4):
Filing both Federal and State tax withholding statements are required. A new tax withholding statement can be filed anytime throughout the year. The tax withholding statements do not need annual renewal. However, to continue an exempt status from the previous year, you must file a new tax withholding statement claiming exempt status by February 15. Failure to do so requires a tax withholding of single with no allowance. Wages:
Employee pay operates on a bi-weekly pay schedule; including 80-hour work periods with 26 work periods per year. Employees are paid for actual hours worked (or paid time off used) plus any overtime worked in excess of the base work week during the pay period.
Base Hours Base Week
Hours per
Year
Month per
Year
Checks per
Year
Hours per
Year
Checks per
Year
Hours per
Check
40 52 2080 12 26 2080 26 80
80 26 2080 12 26 2080 26 80
Base Work Week Period:
Work Schedule Base Work Week Base Hours Overtime
5 day - 8 hour shifts, weekly Starts Saturday, ends 7 days later on Friday 40 hours Over 40 hours 4 day - 10 hour shifts, weekly Starts Saturday, ends 7 days later on Friday 40 hours Over 40 hours 6 days - 12 hour + 1- 8 hour shifts, bi-weekly Starts Saturday, ends 14 days later on Friday 80 hours Over 80 hours
SUMMARY OF EMPLOYEE BENEFITS
2022/23 SHAFTER OPERATING BUDGET 163
Pay Period:
Pay periods, pay days, and overtime/leave cut off dates are outlined on the payroll schedule below. Overtime:
Employees who do not meet the duties and salary test under the Fair Labor Standard Act (FLSA) are not exempt from overtime compensation and are paid at a rate of one and one-half times the hourly rate for hours worked in excess of the base work week period. Overtime compensation may be paid as income on the paycheck or banked as compensatory time off (CTO). Overtime forms are required to be submitted as the overtime is worked. Failure to submit overtime forms by the end of the pay period is considered falsification of timekeeping records.
Employees who meet the duties and salary test under the FLSA as executive, administrative or professional are exempt from overtime compensation.
Exempt employees are not paid for hours worked in excess of the base work week period. Exempt employees receive compensation each day, despite the number of hours worked during the work week period. Exempt employees absent for a full day or more should submit an employee leave form.
Exempt employees do not submit leave forms for partial day absences. Pay Day:
Employee pay operates on a bi-weekly pay schedule. Pay checks are issued the Friday following the payroll cut-off date (refer to payroll schedule for exact dates). When payday is on a holiday, pay is issued on the prior business day. The paycheck stub shows current and year to date earnings plus accrued leave balances and deduction information. Pay stubs are available via Employee Self Service (ESS). Direct Deposit:
Employees are subject to mandatory participation in the direct deposit of their City payroll checks to a bank account of their choice. Direct deposit by electronic transfer of the entire paycheck into a checking account can be made to any banking institution. Subject to bank rules, funds are posted to accounts on payday. Paycheck stubs can be accessed via Employee Self Service (ESS). Uniform Allowance:
Employees required to wear uniforms are issued shirt and pants, or receive an annual cash allowance. Upon termination, uniforms must be returned, and advanced cash allowance must be repaid on a pro-rated basis. Tuition Reimbursement:
As authorized, employees who pursue a higher education in job-related, career enhancing courses or to attain a degree, may be reimbursed up to $3000 in a calendar year for expenses (tuition, book purchase or rental, fees, permits, etc.). 164 SHAFTER OPERATING BUDGET 2022/23
Education/Certification Incentive:
Employees in designated positions may be eligible for education and/or certification incentives as approved by the Department Head, which may include PD - POST certificate incentive for Police and Dispatch classifications; State Arborist and Water Distribution Certificates for designated Public Works classifications.
Bilingual Allowance:
Employees in designated positions as approved by the Department Head are eligible for an incentive for fluency in Spanish. Certification requires a Spanish conversational and reading examination.
Rest Breaks:
Rest periods are normally provided to employees at the rate of fifteen (15) minutes for each four (4) hours worked. No additional compensation or benefits is paid if a rest period is missed since it is already paid time. Vacation Time:
Vacation leave is based on an eight (8) hour day and is earned based on years of service. Vacation begins to accrue on a pro-rated hourly basis at the end of the first full pay period worked. Vacation cannot be taken until completion of one year of service and must be taken within a year after it is earned. Vacation stops accruing at a balance of two times the annual accrual rate based on a rolling forward method and resumes when vacation is taken, dropping the balance below the maximum. Example: Employee accrues vacation at a rate of 3.077 hours per period or 80 hours annually. Accruals stop when balance reaches 160 hours and does not resume until balance is below 160 hours. The time at which vacation can be taken is determined by the Department Head with regard for the wishes of the employee and particular regard for the needs of the City. When a holiday falls during vacation, the holiday is charged in lieu of vacation leave. Employees are required to submit leave forms for vacation leave. Vacation leave balance is posted on the paycheck stub. Leave forms must be submitted as it occurs for all hours absent from work during the work week. Failure to submit leave forms by the end of the pay period is considered falsification of timekeeping records. Holidays:
Unless otherwise specified, holidays are eight (8) hours. Floating holidays are credited to your leave account the first pay period of July and require Department Head approval consistent with the efficient operation of the department. A floating holiday not used by June 30 does not carry over to the next fiscal year.
Non-shift employees normally take a holiday off on the day it falls, except when a holiday falls on a Saturday, the preceding Friday is observed, and when it falls on a Sunday, the following Monday is observed. When a holiday falls during a vacation, the holiday is in lieu of vacation. Employees assigned to work on holidays are paid at time and one half. Holidays can be paid as wages as it occurs throughout the year, or banked as CTO to use as paid leave throughout the year.
Sick Leave
Sick leave accrues at a rate of 3.6923 hours bi-weekly, beginning on the first day of employment for a full-time regular appointment. There is no limit to the accumulation. Temporary and part-time employees accrue one (1) hour of sick leave for every 30 hours worked and will be credited pro-rata each pay period; maximum annual carryover is 48 hours. Leave forms must be submitted as it occurs for all hours absent from work during the work week. Failure to submit leave forms by the end of the pay period is considered falsification of timekeeping records. Medical certification is required for an employee absent 3 or more consecutive calendar days, or upon request when in conjunction with regular days off or a holiday.
Sick leave can be used for an illness that keeps an employee from performing work. Sick leave can also be used as family sick leave when the employee is required to provide care for an employee’s spouse or eligible dependent with a serious or emergency illness. Family sick leave is limited to a maximum of half of what is earned in a calendar year.
Employees with at least 480 hours of accrued sick leave are eligible for a Stay Well Bonus. For purposes of sick leave accounting, the annual period is December 1 through November 30. All unused sick leave above 480 hours will be used for calculating the employee stay well bonus paid on or around December 15. Net sick leave earned and not used during the annual period will be divided in half. One-half will be paid to the employee at the employee’s current base hourly rate and the remaining one-half shall remain as regular sick leave.
Service Biweekly
Accrual Rate
Maximum
Accrual
1 year 3.077 hours 160 hours
5 years 4.615 hours 240 hours
10 years 5.213 hours 272 hours
15 years 6.154 hours 320 hours
20 years 7.692 hours 400 hours
1. New Year’s Day
2. Washington’s Birthday
3. Memorial Day
4. Independence Day
5. Labor Day
6. Thanksgiving Day
7. Day After Thanksgiving
8. Christmas Eve
9. Christmas Day
10. New Year’s Eve
11. Floating Holiday
12. Floating Holiday
2022/23 SHAFTER OPERATING BUDGET 165
Also, employees who do not use any sick leave during the period July 1 through June 30 earn an additional eight (8) hour floating holiday. Upon termination, all sick leave over 640 hours (720 hours depending on the job classification) is paid to the employee. Jury Duty:
Upon receipt of jury duty summons, immediately provide a copy of the notice to your supervisor. When practical, the employee is transferred to day shift during the period of jury duty. While at jury duty during normal scheduled work hours, employees receive their regular pay for hours of absence from work. Attach a jury duty timecard form verifying the hours at jury duty to the leave form. Provided there is at least one (1) hour of work time before and after jury duty, employees must report for work. Failure to submit a leave form, jury duty timecard, or report for work is considered falsification of timekeeping records.
Military Leave:
Military leave is provided consistent with State/Federal law. Some military leave provided up to thirty (30) days paid per year. Failure to submit a leave form for military leave is considered falsification of timekeeping records. Bereavement Leave:
Up to three (3) paid days are provided upon the death of a spouse, child, stepchild, parent, stepparent, grandparent, spouse’s grandparent, grandchild, son-in-law, brother-in-law, sister-in-law, daughter-in-law, mother-in-law, father-in-law, brother, stepbrother, sister, stepsister or registered domestic partner. Up to five (5) paid days may be granted with approval of the City Manager when the funeral of a spouse or child takes place out of State or over 200 miles from Shafter.
COBRA:
Federal and State laws require that the City offer employees and dependents temporary extension of its group medical and dental plans, called "continuation coverage" and referred to as COBRA, at group rates plus a 2% administrative fee. Employees covered by the City’s medical and/or dental plans have a right to choose this continuation coverage if they lose group coverage because of a reduction in hours or the termination of employment for reasons other than gross misconduct. The employee’s spouse has the right to choose continuation of group coverage in the event of the death of a spouse; termination of spouse's employment (for reasons other than gross misconduct) or reduction in spouse's hours of employment; divorce or court ordered legal separation from spouse; or spouse becoming entitled to Medicare. The employee’s dependents have the right to continuation of group coverage in the event of the death of a parent; the termination of a parent's employment (for reasons other than gross misconduct) or reduction in a parent's hours of employment, parents' divorce or court ordered legal separation; parent becomes entitled to Medicare; or the dependent ceases to be eligible. A child who is born to or placed for adoption with a covered employee during a period of continuation coverage is eligible for COBRA coverage. A new spouse or new dependents must be added to COBRA coverage within the time frame and with the appropriate forms provided for active employee coverage.
The employee must inform the City of a divorce, court ordered legal separation, or dependent losing eligibility within 30 days of the event. If notice is not received within that 30-day period, the right to COBRA and continuation coverage is lost. When the City is notified that such an event has occurred, the City sends a notice of the right to continuation coverage under COBRA. The City must be informed that continuation coverage under COBRA is wanted within 60 days of one of the events described above. COBRA requires that participants be afforded the opportunity to maintain continuation coverage of medical and dental insurance for 36 months. Medical Insurance:
Coverage begins on the first day of the month following date of hire. The City pays 100% of the insurance premium for coverage on regular full-time employee, spouse and dependents for the base plan. The City currently has two plans that qualify under the base plan, Anthem Blue Cross EPO and Kaiser Group HMO Plan. Anthem Blue Cross PPO 250 plan is a ‘buy-up’ option.
In general, dependents include your legal spouse or registered domestic partner; your or your spouse’s or registered domestic partner’s natural or adopted children who are under age 26, or if over the age limit cannot hold a full-time job because of a mental or physical disability and remain continuously dependent for at least 50% of financial support.
Variable, part-time or seasonal workers are eligible for coverage pursuant to the Patient Protection and Affordable Care Act (ACA). Workers meeting the minimum average hours worked are entitled to employer provided Minimum Essential Medical Coverage.
Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments. 166 SHAFTER OPERATING BUDGET 2022/23
Medical Insurance Opt-Out Incentive:
When covered under other medical insurance, an employee may decline the City group medical plan and receive a $353 monthly Opt-Out benefit.
Proof of other medical insurance coverage is required. Benefits such as dental, life insurance, and vision benefits still apply regardless of the Opt-Out Incentive. Re-enrollment into the City plan can occur during open enrollment (January 1 effective date) or anytime you lose your other insurance coverage due to a qualifying event if enrollment is completed within 30 days of event. Vision Benefit:
Benefits for vision care are provided through Vision Service Plan (VSP) for each qualified family member. Coverage begins on the first day of the month following date of hire. The City pays the full insurance premium for coverage on the employee, spouse and dependents for the base plan.
Employees who opt-out of the City medical insurance plans still qualify for the City vision plan.
In general, dependents include your legal spouse or registered domestic partner; your or your spouse’s or registered domestic partner’s natural or adopted children who are under age 26, or if over the age limit cannot hold a full-time job because of a mental or physical disability and remain continuously dependent for at least 50% of financial support.
Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments. Dental Insurance:
Coverage begins on the first day of the month following date of hire. Dental benefits are provided through MetLife (HMO) and Delta Dental (PPO). The City pays 100% of the premium cost for coverage for the employee and dependents on the base HMO plan. On the HMO plan employees pay for services provided at reduced co-payments. Employees may choose to buy-up to the PPO plan. Coverage for both plans include routine, preventative and restorative dental care and orthodontia.
In general, dependents include your legal spouse or registered domestic partner; your or your spouse’s or registered domestic partner’s natural or adopted children who are under age 26, or if over the age limit cannot hold a full-time job because of a mental or physical disability and remain continuously dependent for at least 50% of financial support.
Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments. Life Insurance:
Coverage begins on the first day of the month following date of hire. Life benefits are provided through Principal Financial Group Life Insurance Company. The City pays 100% of the insurance premium cost for coverage for the employee, spouse and dependents. The employee death benefit is equivalent to the annual base salary plus $17,000. The spouse death benefit is $5,000. The dependent death benefit range is $1,000-$1,500.
Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments. Retirement:
The City and employees participate in the social security program by each making a 7.65% contribution to fund future Social Security and Medicare benefits.
The City offers defined retirement benefits plan through the California Public Employees Retirement System (CalPERS). Eligibility depends on employment status as a regular full-time employee. Temporary, extra-help or part-time employees are excluded unless they meet certain membership criteria. There are two membership categories and four plans depending on job classifications and date of hire: Miscellaneous 2% at 55 Full Formula Plan for all employees qualified as Classic Members. Peace Officers under PC 830.1 and qualified as a Classic Member are members of the Safety 3% at 55 Full Formula Plan. Members qualified as New Members under CalPERS guidelines are either Miscellaneous 2% at 62 Full Formula Plan or Safety 2.7% at 57 Full Formula Plan. Membership begins on the date of hire. There is a 5-year vesting period. Retirement benefits are based on age at retirement, earnings, and years of service.
Although CalPERS requires an employee contribution, the City pays the contribution for the Classic Members. The contribution is deposited into the employee’s CalPERS member account. The contribution for a miscellaneous member is 7% and 9% for a safety member. In addition to the City paid member contribution, the City pays an employer contribution which varies annually based on age, gender, and salary. 2022/23 SHAFTER OPERATING BUDGET 167
Under CalPERS guidelines the City is not permitted to pay New Member contributions to CalPERS, however, employees identified as New Members are paid a premium of 6.25% for miscellaneous members and 12% for safety members, in addition to their base salary. The New Member must then by payroll deduction pay to CalPERS 6.25% for miscellaneous and 12% for safety.
Additional years of prior service can be purchased, or previously withdrawn funds can be redeposited on a pre-tax basis through payroll deduction.
Reciprocity is an agreement between CalPERS and certain other city, county or special district retirement plans that provides retirement benefits based on your highest earnings in either plan. Reciprocity must be established within 6 months of employment.
The beneficiary of a member’s account is established by law. Changes can be made by completing a change form. A married member requires the spouse’s signed consent. Before you retire, death benefits are payable to the following survivors in the following order unless designated otherwise on a valid Beneficiary Designation form: 1. Your surviving spouse/registered domestic partner (whether or not you were still living together at the time of your death); or, if none, 2. Natural and adopted children, including (in limited situations) a natural child adopted by another, share and share alike; or, if none, 3. Parents, share and share alike; or if none, 4. Brothers and sisters, share and share alike, or if none, 5. Your estate (if probated, or subject to probate), or if not, 6. Your trust (if one exists), or if not, 7. Stepchildren, share and share alike, or, if none, 8. Grandchildren, including stepgrandchildren, share and share alike, or, if none, 9. Nieces and nephews, share and share alike, or, if none, 10. Great-grandchildren, share and share alike, or, if none, and 11. Cousins, share and share alike. Deferred Compensation:
As authorized by IRS Code 457, the City offers an optional supplemental retirement savings plan through the International City Managers Association Retirement Corporation (ICMA-RC) that defers taxable income and interest earned. Participation is voluntary and contributions can be increased, decreased, stopped or restarted without restriction and without fees or penalties. There are no restrictions or charges for reallocation of investments.
Contributions are made through payroll deduction on a pretax basis so current income taxes are reduced. Nothing in the account is forfeited in the event of death and the designated beneficiaries receive the remaining funds. Contributions can start with as little as $25 per pay period. Withdrawal of contributions is limited to retirement, separation of employment, and while employed, due to a severe financial hardship resulting from a sudden illness, disability, or accidental property loss, or with an account balance of less than $5,000 where no contributions have been made for two years (other conditions may apply).
Disability Insurance:
Employees participate in the State Disability Insurance (SDI) program. Employees pay 1% of wages by payroll deduction to fund future SDI and Paid Family Leave (PFL) benefits. SDI pays temporary disability benefits up to one year when you cannot work due to your own injury or illness that is not the result of your job. PFL pays compensation benefits not to exceed 6-weeks in a 12-month period when you stop working to care for a seriously ill qualified family member as verified by doctor certification or to bond with a new child. SDI and PFL provide income and are not a right to time off, or job protection if time off is granted. The right to job protected leave must be consistent with the Federal and State Family Medical Leave Acts, or State Pregnancy Disability Act.
Your weekly benefit amount is about 60 to 70 percent (depending on income) of wages earned 5 to 18 months before your claim start date up to the maximum weekly benefit amount. SDI has a 7-day non-payable waiting period, PFL does not have a waiting period. Employees must use sick (if eligible), or other accrued leave to cover the wage difference between SDI/PFL and city pay. Benefit checks are issued every two weeks. Workers Compensation:
Workers compensation benefits are provided as required by law to protect employees who are injured on the job. The City is self-insured for workers compensation benefits and pays the benefits through a third-party administrator, Acclamation Insurance Management Services (AIMS). Coverage is automatic and begins immediately. Benefits include payment for medical expenses and tax-free temporary disability (TD) payments to help replace lost wages while temporarily disabled.
Report the injury immediately to a supervisor or to the Human Resources Department. Don’t delay, there are time limits to report an injury. Waiting too long may result in losing the right to benefits. You will be given an injury report form to complete, with instructions on how to obtain medical care. If in need of emergency care, call 911 for help immediately. Medical care is provided through the City’s authorized medical providers. Pre-designation of a personal medical doctor to treat work related injuries requires prior written authorization.
TD benefits are provided when an injured employee cannot work. TD is based on earnings, and is about 66% of the employee’s average weekly earnings, not to exceed a weekly maximum amount of $1,539.71 for 2022. There is a 3-day non-payable waiting period. Employees must use sick, vacation or other accrued leave to cover the difference between TD and city pay to provide 100% until accruals are exhausted. TD benefit checks are issued every two weeks. TD benefits are not issued for partial day absences and sick leave must be used for medical care appointments. Leave taken for a worker compensation injury or illness qualifies as job protected leave pursuant to the Federal and State Family Medical Leave Acts. 168 SHAFTER OPERATING BUDGET 2022/23
Flexible Spending Account (FSA):
The City offers an optional FSA plan benefit through AFLAC. To enroll in this benefit, contact AFLAC representative Stacie Bender for assistance.
Coverage begins on the first day of the month following date of hire. FSA plan benefits, as authorized by IRS code 125, allow employees to use pretax dollars to pay for certain benefit costs, thus reducing taxable income, and increasing take-home pay. With FSA, a portion of each paycheck is set aside to pay insurance premiums for optional insurance plans such as accident, sickness, short term disability, intensive care, cancer care, long term care and personal major recovery & life threatening events, and to self-reimburse for dependent day care (DDC) and unreimbursed medical (URM) expenses. This amount is deducted from employee paychecks before federal and state income taxes are calculated so taxes are not paid on money spent on qualified DDC or URM expenses, or optional insurance plans. Without an FSA, employees pay taxes on every dollar earned, then optional insurance plans and DDC or URM expenses are paid.
A DDC/FSA covers dependent children under age 13 who qualify as tax dependents and anyone claimed as a tax dependent because of physical or mental inability to care for himself/herself. An URM FSA covers medical expenses such as insurance copayments and deductibles, medical care (consultations, diagnostic lab work, etc.), prescription and diabetic supplies (blood sugar monitor, syringes, test strips, etc.), dental and vision care.
Enrollment in AFLAC is limited to the 30-day period from the initial hire date or at open enrollment (October), effective January 1. Changes to plan benefits selected cannot occur until the next open enrollment period, or under certain circumstances during the plan year such as changes in cost or coverage, changes in family status and separation from service. Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence, otherwise plan changes due to newly eligible spouse or dependents are delayed until open enrollment. During open enrollment, insurance plans automatically renew unless you make changes. However, DDC and URM accounts require reenrollment each year. The individual plan brochure describes specific plan benefits and co-payments.
To request reimbursement for qualified DDC or URM expenses, submit a claim form and proof of payment of expenses. Caution should be used in determining how much to set aside from each paycheck for DDC and URM expenses. Qualified DDC expenses must have occurred during the plan year. Qualified URM expenses must have been paid during the plan year regardless of when services were provided (IRS Publication 502). You may roll over up to $500 unused amount of URM from one plan year to the next, all amounts over $500 are forfeited. Any unused amount set aside for DDC does not roll over to the next plan year and is forfeited. Employee Assistance Program (EAP):
The EAP provides evaluation by professional counselors, and if appropriate, short term counseling for behavioral problems which affect work performance or personal life. Through a confidential, self-referral process, employees and their household members can discuss their personal situation such as family violence, marital relationship or parenting conflicts, substance abuse assessment, addictions, stress, anxiety, depression, grief and loss, or referrals to community resources. Refer to the brochure for details. Other services such as financial, legal, etc., are also available. Employee Union Membership:
The City operates under specific Employer-Employee Relations Policies and City Personnel System Rules. Certain positions are recognized under employee bargaining groups. Part-time and temporary employees are excluded. Employee bargaining groups negotiate salary and benefits for members and agreements are contained in each employee bargaining group memorandum of understanding (MOU). Employees are not required to become due paying members nor to contribute a representation fee. Groups recognized are the Shafter Police Officers Association (SPOA), and the Shafter Public Works Employee Association. Membership dues are made as a payroll deduction. Positions not recognized by a bargaining unit are covered by Resolution of the City Council.
Assigned Vehicle Program:
Designated Police and Public Works employees may take home pool vehicles as authorized by the Department Head. The benefit may be reported as taxable income under certain circumstances. City employees are required to use pool vehicles to travel on business. Incidental use of a personal vehicle for business travel is prohibited, unless authorized in writing. Use of a personal vehicle requires submission of proof of personal automobile insurance.
Policies:
Employees are required to receive, understand and adhere to specific City policies, and are required to acknowledge such in writing. Depending on the job assignments, these policies include the following: DMV Driving Record, Department of Transportation Drug Testing, Confidential Personnel Information, Drug and Alcohol in the Workplace, Employee Protection Line, Fraud, Harassment and Discrimination, Hepatitis B Immunization Program, HIPPA Program, Personnel System Rules, Wage Deduction, Workers Compensation, and Workplace Violence. 2022/23 SHAFTER OPERATING BUDGET 169
Glossary of Terms
Adopted Budget: The final budget amount adopted by the City Council in June.
Amended Budget: The official budget as adopted and as amended by the City Council through the course of a fiscal year.
Appropriation: An authorization made by the City Council, Agency, and/or Authority members which permits the City to incur obligations and to make expenditures of resources.
Budgetary/operating fund appropriations lapse at the end of each fiscal year. Non-operating fund appropriations continue in force until fully expended or until the City has accomplished or abandoned the purpose for which the City Council, Agency or Authority granted the funds.
Spending cannot exceed the level of appropriation without the City Council's, Agency’s or Authority’s approval.
Arbitrage: A payment made to the federal government in connection with a bond issue of tax exempt or other federally tax-advantaged bonds. The payment represents the amount, if any, of arbitrage earnings on bond proceeds and certain other related funds, except for earnings that are not required to be rebated under limited exemptions provided under the Internal Revenue Code. An issuer generally is required to calculate, once every five years during the life of its bonds, whether or not an arbitrage rebate payment must be made.
Assessed Valuation: The value established for real property for use as a basis in levying property taxes. For all agencies in the State of California, assessed value is established by the County for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value.
Proposition 13 also modified the value of real taxable property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.
Assessment Districts (AD): Under the Municipal Improvement Act that allows a designated area to pay the debt service on bonds sold to finance capital improvements installed by the City or a developer. The property owners receiving the benefit of the improvements pay an assessment on their property tax bills.
Asset Forfeiture: Asset seizures and forfeitures resulting from police investigations and court decisions. Asset Forfeiture funds are used for law enforcement purposes.
Audit: Prepared by an independent certified public accountant, or CPA, the primary objective of an audit is to determine if the City’s Financial Statements fairly present the City’s financial position and results of operations in conformity with generally accepted accounting principles.
In conjunction with their performance of an audit, it is customary for an independent auditor to issue a Management Letter stating the adequacy of the City's internal controls as well as recommending improvements to the City's financial management practices.
Balanced Budget: A budget in which planned expenditures do not exceed planned funds available.
Bond: A security that represents an obligation to pay a specific sum of money on a specific date in the future, typically with periodic interest payments.
GLOSSARY OF TERMS
170 SHAFTER OPERATING BUDGET 2022/23
Glossary of Terms
Budget: A financial plan for a specified period of time that matches planned revenues and expenditures to municipal services.
Budget Amendments: The City Council, Agency and/or Authority members have the responsibility for adopting the City's budget, and may amend or supplement the budget at any time after adoption by majority vote. The City staff has the authority to approve line item budgetary transfers between expenditure objects of the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.
Budget Policies: General and specific guidelines adopted by the City Council that govern budget preparation and administration.
CalPERS: California Public Employees Retirement System, a mandatory fringe benefit for City employees.
Capital Expenditure: An acquisition or an improvement (as distinguished from a repair) that will have a life of more than one year and costs more than $5,000.
Capital Improvement Program (CIP): A plan to provide for the maintenance or replacement of existing public facilities and assets and for the construction or acquisition of new ones. The CIP document identifies capital needs on a five-year basis.
Capital Project Funds: Funds used to account for financial resources used in the acquisition or construction of major capital facilities other than those financed by Proprietary Funds or Trust Funds.
Cash Basis or Cash Method: Is an accounting method that recognizes income and deductions when money is received or paid.
Certificates of Participation (COP): Obligations of a public entity based on a lease or installment sales agreement. Payments to certificate holders may originate from the General Fund (in case of a lease) or a special fund (in case of an installment sale).
Community Facilities District (CFD): A designated area for specific capital improvements installed by the City or a developer, or the maintenance of same. The property owners receiving the benefit of the improvements pay a special tax on their property tax bills.
Contractual Services: A series of Object Codes which include the expense of services procured independently by contract or agreement with person, firms, corporations or other governmental units.
Contingency: An appropriation of funds to cover unforeseen events that occur during the fiscal year, such as flood emergencies, federal mandates, shortfalls in revenue, and similar events.
Debt Financing: Borrowing funds as needed and pledging future revenues to make current expenditures.
Debt Service: Payments of principal and interest on bonds and other debt instruments according to a predetermined schedule.
Debt Service Funds: Funds used to account for the payment of, and accumulation of resources for, long-term debt principal and interest.
Deficit: A shortfall of resources to meet expenditures. 2022/23 SHAFTER OPERATING BUDGET 171
Glossary of Terms
Department: A major organizational unit of the City which has been assigned overall management responsibility for an operation or a group of related operations within a functional area.
Development Impact Fee: Funds created to provide for infrastructure projects through Development Impact Fees.
Division: An organizational element, below Department and above Programs in the City of Murrieta's organizational hierarchy.
Encumbrance: Commitment of funds to purchase an item or service.
Errata Items: Budgetary items added after the proposed budget document was printed.
Expenditure: The outflow of funds paid, or to be paid, for an item obtained regardless of when the expense is actually paid.
Fiduciary Funds: Also known as, trust or agency funds; held in a fiduciary capacity by a governmental unit for individuals, organizations, or other governmental units, as an agent or trustee.
Fees for Services: Charges paid to the City by users of a service to help support the costs of providing that service.
Fiscal Year: A twelve-month period for recording financial transactions. The City has specified July 1 through June 30 as its fiscal year.
Franchise Fee: A fee charged for the privilege of using public rights-of-way and property within the City for public or private purposes.
Fringe Benefits: Compensation that an employer contributes to its employees such as social security, retirement, life/health insurance, or training supplements. Fringe benefits can be either mandatory, such as social security contributions, or voluntary, such as retirement and health insurance benefits.
Fund: An accounting entity that records all financial transactions for specific activities or governmental functions.
Full-Time Equivalent (FTE): A term used to refer to the number of hours for which a position is budgeted. Most fulltime employees are paid for 2,080 hours in a year.
Fund Balance: The amount of assets either obligated or reserved for specific purposes or available for financing the expenditures and other requirements of the budget year.
GANN Appropriations Limit: This term refers to Article XIIIB of the California State Constitution that places limits on the amount of proceeds from taxes that state and local governmental agencies can receive and spend each year.
Gas Tax: A fund to account for receipts and expenditures of money apportioned under the Street and Highway Code of the State of California for money derived from the use of certain fuels and borne by the consumer, for transportation improvements. The money is restricted to research, planning, construction, improvement, and maintenance of public streets. 172 SHAFTER OPERATING BUDGET 2022/23
Glossary of Terms
General Fund (0100): The primary operating fund of the City where all revenues that are not allocated by law or contractual agreement are accounted for. With the exception of subvention or grant revenues restricted for specific uses, General Fund resources can be utilized for any legitimate governmental purpose. A limited number of capital improvements are financed from this source since its focus is to fund ongoing operations.
General Obligation Bond: A bond secured by the pledge of the issuer's full faith, credit, and usually, taxing power. Bonds issued through a governmental entity which have legal authority to levy a tax on real and personal property located within the governmental boundaries at any rate necessary to collect enough money each year to pay principal and interest due.
Governmental Accounting Standards Board (GASB): The Governmental Accounting Standards Board establishes and improves standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports.
Government Finance Officers Association (GFOA): An organization established to assist in the professional management of governments by developing and identifying financial policies and best practices through education, training, facilitation of member leadership and networking.
Grants and Reimbursements: Funds received directly or indirectly from other governmental agencies for specific related activity and time period. Money awarded may be received in advance or as a reimbursement of activities.
Highway Users Tax Account (HUTA): State accounting for excise taxes on various transportation fuels. California motor vehicle fuel taxes include the gasoline tax, diesel fuel tax, and the use fuel tax. Allocations to cities and counties are based on the formulas outlined in the Streets and Highways code. See Gas Tax Fund.
Infrastructure: The physical assets of the City; i.e., streets, water, sewer, public buildings, parks, and the support structures within a development.
Interest Revenue: Revenues received as interest from the investment of funds not immediately required to meet cash disbursement obligations.
Interfund Charges: To account for services that are incurred in different funds than where they are charged.
Internal Service Funds: Funds used to improve the management of resources and generally provide goods and services to departments on a cost-reimbursement basis.
Landscape & Lighting District, or LLD: A designated area, neighborhood, or community identified to specially benefit from certain improvements, such as parks, playgrounds, landscapes, sidewalks, lighting, trees, etc. Due to the special benefit, landowners in the identified area are assessed to pay the costs of the construction and/or ongoing maintenance of such improvements.
Line-Item Budget: A budget that lists detailed expenditure categories (salary, materials, telephone service, travel, etc.) separately, along with amounts budgeted for each specific category.
2022/23 SHAFTER OPERATING BUDGET 173
Glossary of Terms
Long-term Debt: debt with a maturity of more than one year after the date of issue.
Major Fund: Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget.
Major Fund Capital Expenditures:
Measure A: Money generated by Riverside County’s one-half percent sales tax originally approved by the voters in 1988. In 2002, the voters extended this sale tax through 2039. The money is used to maintain and construct local streets and roads.
Message from The City Manager: Included in the opening section of the budget, the Message from the City Manager provides the City Council and the public with a general summary of the most important aspects of the budget, changes from previous fiscal years, and the views and recommendations of the City Manager.
Municipal: In its broadest sense, an adjective which denotes the state and all subordinate units of government. In a more restricted sense, an adjective which denotes a city or village as opposed to other local governments.
Modified Accrual Basis: Governmental accounting method. Revenue is recognized when it becomes available and measurable.
Motor Vehicle In Lieu: State subvention revenue calculated annually by the State on a per capita basis.
National Pollutant Discharge Elimination System (NPDES): Money received from the County of Riverside relating to the permit program for discharges from storm drain systems.
Object Codes: Are specific numerical classifications for which money is allocated for disbursements.
Operating Budget: plans of current expenditures and the proposed means of financing them.
The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled.
Ordinance: A formal legislative enactment by the City Council. It has the full force and effect of the law within City boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in a City's municipal regulation.
Other Post-Employment Benefits (OPEB): Benefits other than pensions, most commonly health care benefits. GASB Statement No. 45 requires agencies to account for financial obligations to pay retiree Other Post Employment Benefits.
Program: A grouping of activities organized to accomplish basic goals and objectives.
Program Budget: A budget that focuses upon the goals and objectives of an agency or jurisdiction rather than upon its organizational budget units or line item expenditures.
Property Tax: A statutory limited tax levy, which may be imposed for any purpose. 174 SHAFTER OPERATING BUDGET 2022/23
Glossary of Terms
Proprietary Funds: Established to account for the financing of services rendered on a usercharge basis. See Internal Service Funds.
Real Property Transfer Tax: Real property transfer tax is collected by the County Tax Collector and is based on the value of property transferred.
Redevelopment Agency: A government body dedicated to urban renewal. Redevelopment efforts often focus on reducing crime, destroying unsuitable buildings and dwellings, restoring historic features and structures, and creating new landscaping, housing, business, and transportation opportunities. Effective February 2012, all redevelopment agencies throughout the State of California were dissolved. See Successor Agency.
Resolution: A special or temporary order of a legislative body (e.g., City Council or appropriate Agency / Authority) that requires less formality than an ordinance.
Revenue: Funds that the City receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income.
Revenue Bond: A bond payable solely from specific revenues, tax increment revenues, or tolls, charges or rents paid by users of the facility constructed with the proceeds.
Risk Management: An internal service fund used to finance and account for the City’s worker’s compensation activity such as claims expense, insurance, premiums, and administrative expenses. Additional funds held in this fund are to buffer for the impact of the unknown, but potential, losses. An organized attempt to protect an organization’s assets against accidental loss in the most cost effective manner.
Riverside County Transportation Commission, (RCTC): The commission that allocates Riverside County's share of the money generated by the one-half percent sales tax.
Sales Tax: A tax on the purchase of goods and services.
Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those parties.
Special Assessment Bond: Bonds issued by cities, counties, authorized political subdivisions, and local districts secured by liens on benefited properties included in a special assessment district.
Special Charges/License and Permits: These charges are directly charged to individuals for specific services rendered by the City. They include charges to process or issue building permits and the cost to conduct engineering and planning reviews of any building project undertaken by a licensed contractor or private property owner.
Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes.
Subventions: Revenues collected by the state, or other level of government, which are allocated to the City on a formula basis. The major subventions received by the City from the State of California include motor vehicle in-lieu, cigarette taxes in-lieu, and gasoline taxes. 2022/23 SHAFTER OPERATING BUDGET 175
Glossary of Terms
Successor Agency: Based on the dissolution of redevelopment agencies throughout the State, an agency designated with the responsibility to wind down the activities of former redevelopment agencies.
Tax Allocation Bonds: Debt which is secured by tax increment revenue.
Transfers: To account for money that moves from one funding source to another funding source, for a specific purpose.
Transient Occupancy Tax: Transient Occupancy Tax is collected from the operators of hotels and motels located within the city limits of Murrieta. Ten percent of the total rent collected by a motel or hotel is remitted to the City.
Unfunded Liability (UAL): When a plan’s Value of Assets is less than its Accrued Liability, the difference is the plan’s Unfunded Liability.
User Fees: The payment of a fee for direct receipt of a service by the party benefiting from the service.
Variance: Difference between actual experience and budgeted or projected experience in any financial category.
City Council
Administrative Services
8 FTE / 3 PTE
Administrative Services Director
Finance
6 FTE
Account Manager
Payroll Technician
Account Clerk II
Account Clerk I (2)
Finance Clerk
Transit
1 FTE / 3 PTE
Transit Driver
Part-Time Transit
Drivers (3)
Planning
2 FTE
Planning Director
Senior Planner
Business Development
1 FTE
Business Development Director
Public Works
34 FTE / 1 PTE
Public Works Director
Public Works Operations
25 FTE / 1 PTE
Utilities Manager
Utility Technician (2)
Utility Operator II
Utility Operator I (2)
Public Works Manager
Public Facilities
Manager
Mechanic
Equipment Operator
Service Crew Member II (7)
Service Crew Member I (8)
Part-Time Laborer Vet's Hall
Engineering
4 FTE
City Engineer
Associate Engineer
Engineer I
Public Works Inspector
Engineering Intern
GIS
2 FTE
GIS Coordinator
GIS Technician
Administrative
2 FTE
Administrative
Assistant I
Clerk Typist
Building
9 FTE
Building Official
Building Inspector
Supervisor
Building Inspector II
Building Inspector I
(2)
Code Enforcement
Officer I/II
Facilities Construction
Specialist I/II
Administrative
Assistant I
Clerk Typist
Education Partnership
2 FTE / 22 PTE
Education Partnership
Director
EP Learning
Center Manager
EP Part-Time
Teacher (8)
EP Part-Time
Tutor II (8)
EP Part-Time
Tutor I (6)
Human Resources
3 FTE
HR/Risk Manager
HR Analyst II
Administrative Assistant I
Information Technology
3 FTE / 1 PTE
IT Systems
Manager
IT Specialist I
IT Help Desk Intern
IT Network
Manager
Police
47 FTE
Police Chief
Assistant Chief of Police
Patrol
30 FTE
Police Lieutenant
Police Sergeant (4)
Senior Police
Officer (6)
Police Officer (19)
Support Services
10 FTE
Police Lieutenant
Administrative
Sergeant
Police Records
Supervisor
Police Dispatcher (6)
Police Service Technician
Animal Control
4 FTE
Animal Control Manager
Animal Control Officer
Animal Control
Services Worker (2)
Administrative
Assistant II
City of Shafter Organizational Chart
July 1, 2022
113 Full-Time Employees
27 Part-Time/Extra-Help Employees
City Attorney
City Manager
4 FTE
Community
Engagement
Manager
Office Technician
City Clerk
#+l'c¡¡v or'l
City of Shafter
SF|AFTER COUNCIL AGENDA REPORT
Meeting Date: Jlune21,2022
FROM: Gabriel A. Gonzalez,City Manager
Prepared By: Michael James, Public V/orks Director
SUBJECT: FIRST READING OF ORDINANCE 737 TO AMEND EXISTING
FRANCHISE SOLID WASTE HAULING AGREEMENTS TO COMPLY
WITH MANDATES ESTABLISHED BY SENATE BILL 1383
RECOMMENDATION
Council find the requested action is exempt from the California Environmental Quality Act; and introduce for first reading and waive reading, Ordinance 737 , an Ordinance of the City of Shafter California, approving Amendments to City's Exclusive Solid Waste Franchise Agreements with American Refuse, Inc. and Varner Bros., Inc.
BACKGROUND
New organic waste diversion mandates established by State Senate Bill (SB) 1383 require local jurisdictions to develop and implement new collection services to meet diversion targets, plus develop educational, outreach, and enforcement programs to ensure compliance.
After researching and assessing options available to the City, staff developed a compliance plan that includes amending existing franchise agreements with private waste haulers. Also included is creating a new franchise agreement for the remaining service areayetto be franchised, covering Core City residents. The new franchise and updates to the existing franchises can take effect as early as July 1, 2022, which State representatives have endorsed.
The Council previously authorized an award of a franchise agreement covering Core City residents via Ordinance 731. Authorization to approve the final agreement and proceed with the new services is on this meeting agenda.
The previously awarded waste hauling franchises are listed and described as follows:
a Core City Commercial
o Hauler: American Refuse
o Customers: Core City Businesses and Multi-Family Units o Originally Awarded: 2018
o Previous Amendments
. Amendment #1 - Add New Multi-Family Unit Collection Rates East Shafter - American Refuse
o Hauler: American Refuse
o Customers: Commercial Accounts
o Originally Awarded: 2016
o No Previous Amendments
a
MANAGEMENT REPORT 3
First Reading of OrdinanceT3T to Amend Existing Franchise Solid Waste Hauling Agreements to Comply with Mandates Established by Senate Bill 1383
East Shafter - Varner Bros.
o Hauler: Varner Bros
o Customers: Commercial Accounts and Gossamer Grove Residents o Originally Awarded: 2016
o Previous Amendments:
. Amendment #l - Transfer of Franchisee's stock by Burrtec V/aste a
The primary justification for awarding the franchises was to meet waste diversion mandates focused on commercial customers. Still, the timing also allowed the City to address a three-cart service for new residents moving into homes within Gossamer Grove. For SB 1383 compliance, staff and the City Attorney prepared agreement amendments for all three franchises. Additional updates deemed necessary and included with the updates include the following:
Add a recycling surcharge to the service rates so the haulers can withstand the financial challenges of finding markets for mixed recyclables (plastics, paper, etc.).
Apply a universal rate adjustment plan based on a formula tied to consumer price indexing for all three franchises. A variable rate plan ensures that haulers can stay current with market conditions for the industry, which have proven to fluctuate significantly.
Add new service and rate plan options not included in the current franchises.
In addition to new agreement amendments, an ordinance formally authorizing these updates has been prepared for Council adoption. If adopted, second amendments to the agreements for the Core City Commercial franchise operated by American Refuse and East Shafter franchise operated by Varner Bros. and the first amendment for the East Shafter franchise operated by American Refuse would be approved.
FISCAL IMPACT
Fiscal impacts of the franchise implementation are due to take effect during the Fiscal Year 2022- 2023. City staff has prepared the draft budget for Refuse Enterprise for this cycle to implement the franchise and enforce the SB 1383 mandates. Therefore, no budget action is required with this item.
CEQA ANALYSIS
The proposed activity is not subject to the California Environmental Quality Act (CEQA) because it is not defined as a "Project" pursuant to Section 15378(bX5) of the CEQA Guidelines.
ALTERNATIVES
Provided the Council conducts the aforementioned public protest hearing and adopts the proposed service rates via a resolution, the franchise agreement amendments can and should be approved to be in effect by the next fiscal year, specifically July 1, 2022. The State has already approved this effective date. The amendments can be deferred for further discussion and consideration, but such action also delays SB 1383 compliance.
ATTACHMENT
o
a
a
I
1. Ordinance No. 737
ORDINANCE NO. 737
AN ORDINANCE OF THE CITY OF SHAFTER APPROVING AMENDMENTS TO CITYOS EXCLUSIVE SOLID \ilASTE FRANCHISE AGREEMENTS WITH AMERICAN REFUSE,INC. AND VARNER BROS.,INC.
\ilHEREAS, Section 9.02 of the Charter of the City of Shafter ("City") authorizes the City Council to grant a franchise to any legal entity capable of exercising the privilege conferred; and
\ilHEREAS, the City Council may prescribe the terms (including compensation), conditions, and limitations of such grant; and
WHEREAS, pursuant to the City Charter and applicable law, the City granted three exclusive franchises to provide solid waste and similar services within portions of the City identified in each franchise; and
WHEREAS, the City Council wishes to approve amendments to each franchise as set forth in this Ordinance to ensure compliance with applicable law, including regulations adopted to implement SB 1383.
THE CITY COUNCIL OF THE CITY OF SHAFTER DOES HEREBY ORDAIN AS FOLLO\ilS:
Section 1.
reference.
The Recitals set forth above are true and correct and incorporated herein by Section 2. The Second Amendment to Exclusive Franchise Agreement for Collection and Handling of Commercial Solid Waste, Recycling and Organic'Waste Between the City of Shafter and American Refuse, Inc. (Core City) is hereby approved. The terms and conditions of the amendment are as set forth in the draft franchise agreement amendment, attached hereto as Exhibit A and incorporated by this reference. The City Manager is authorized to execute the agreement subject to the approval of the City Attorney as to form.
Section 3. The First Amendment to Exclusive Franchise Agreement for Collection and Handling of Solid Waste, Recycling and Green Waste in East Shafter between the City of Shafter and American Refuse, Inc. is hereby approved. The terms and conditions of the amendment are as set forth in the draft franchise agreement amendment, attached hereto as Exhibit B and incorporated by this reference. The City Manager is authorized to execute the agreement subject to the approval of the City Attorney as to form.
Section 4. The Second Amendment to Exclusive Franchise Agreement for Collection and Handling of Solid Waste, Recycling and Green V/aste in East Shafter between the City of Shafter and Vamer Bros., Inc. is hereby approved. The terms and conditions of the amendment are as set forth in the draft franchise agreement amendment, attached hereto as Exhibit C and incorporated by this reference. The City Manager is authorized to execute the agreement subject to the approval of the City Attorney as to form.
Section 5. The City Clerk shall publish and certiff as to the adoption of this Ordinance as required by law.
Shafter City Council Ordinance 737
July 19,2022
Section 6. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, it shall not affect the remaining portions of this Ordinance that can be given effect without the invalid provision and, to this end, the provisions of this Ordinance are severable. This City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced.
Section 7. This Ordinance shall take effect and be enforced commencing thirty (30) days following its adoption.
PASSED, APPROVED AND ADOPTED this Lgth day of July ,2022:
Cathy L Prout, Mayor
ATTEST:
Y azmina Pallares, City Clerk
APPROVED AS TO FORM:
Marco A. Martinez, City Attorney
Shafter City Council Ordinance 737
July 19,2022
EXHIBIT A
SECOND AMENDMENT TO EXCLUSIVE FRANCHISE AGREEMENT
FOR COLLECTTON At[D HANDLTNG OF COMMERCTAL SOLD WASTE, RECYCLING, AND ORGANIC \ryASTB BET\ryEEN THE CITY OF SHAF'TER AND AMERICAN RBFUSE, rNc. (coRE crrÐ
This Second Amendment to Exclusive Franchise Agreement for Collection and Handling of Commercial Solid Waste, Recycling and Organic Waste Between the City of Shafter and American Refuse, Inc. (Core City) ("Amendment"), effective as of _,
2022 is made by and
between the City of Shafter, a California charter city ("CITY"), and American Refuse, Inc., a California corporation ("CONTRACTOR"). CITY and CONTRACTOR are individually referred to as "Party" and collectively referred to as the "Parties".
RECITALS
A. The Parties entered into an Exclusive Franchise Agreement for Collection and Handling of Commercial Solid Waste, Recycling and Green Waste Between the City of Shafter and American Refuse, Inc. (Core City) dated February 1,2018 ("Agreement") with City granting Contractor an exclusive right to collect and dispose of commercial solid waste, recyclables and green waste within the portion of the City known as the Core City and more particularly described in the Agreement; and
B. The Parties entered into the First Amendment to Exclusive Franchise Agreement for Collection and Handling of Commercial Solid Waste, Recycling and Green Waste Between the City of Shafter and American Refuse, Inc. (Core City) dated January 24,2019 ("First Amendment").
The "Agreement" shall mean the Agreement, as amended by the First Agreement; and C. SB 1383 (Chapter 395, Statutes of 2016) directed local agencies to divert organic waste from landfills and help reduce food insecurity, and regulations promulgated by the California Department of Resources Recycling and Recovery require the City to provide organic waste collection services and implement said regulations within the City; and D. The Parties desire to amend the Agreement to reflect the additional obligations required by the SB 1383 Regulations.
NO\ry THEREFORE, the Parties agree to the following modifications to the Exclusive Franchise Agreement for Collection and Handling of Commercial Solid Waste, Recycling and Green Waste Between the City of Shafter and American Refuse, Inc. (Core City).
1. Section I is hereby amended to add the following definitions:
CalRecycle means the California Department of Resources Recycling and Recovery Compost means the product resulting from the controlled decomposition of Organic wastes, including Green Waste, wood waste and Food Waste which are not Hazardous Wastes.
Food Waste means food scraps separated from Solid Waste and offered for Collection by the Contractor, that will decompose and/or putrefiz including (i) all kitchen and table food waste, and animal Shafter City Council Ordinance 737
July 19,2022
or vegetable waste that attends or results from the storage, preparation, cooking or handling of food stuffs, and (ii) paper waste contaminated with food waste.
Landfill means a permitted disposal site which accepts Solid Waste.
2. Section I is hereby amended to amend the following definitions in their entirety:
Disnosal Facilitv means the ultimate disposition of Solid Waste Collected by CONTRACTOR at a landfill in full regulatory compliance or other fully permitted disposal site. \ Organic tWaste means Food Waste, Green Waste and food-soiled paper waste that is mixed in with Food Waste.
3. Section 3.1 is hereby amended to add the following to the end of the section CONTRACTOR and CITY agree the Franchise Fee is a negotiated amount that is reasonably related to the value of the rights granted to CONTRACTOR under this Agreement. CITY may use the Franchise Fee for any lawful purpose.
4. Section 6.2.4 is hereby amended in its entirety to read as follows:
6.2.4 Organic Waste Service. For Customers receiving Organic Waste service, CONTRACTOR shall, as frequently as negotiated with Customer but in no event less than once per week, collect the Organic Waste which has been placed, kept or accumulated in Organic Waste Bins or Containers at Commercial Premises. Following collection of Organic Waste from a Bin, CONTRACTOR shall return the Bin to its enclosure or customary location with the lid closed.
CONTRACTOR shall provide and implement a program necessary to meet all applicable law regarding Organic Waste collection and disposal subject to CITY's review and approval.
5. Section 6.2.6 is hereby amended in its entirety to read as follows
6.2.6 Commingling Solid Waste. In the event a Customer commingles Refuse, Organic Waste, or Green Waste with Recyclables for Recyclable collection or commingles Refuse or Recyclables with Green Waste or Organic Waste for Green Waste or Organic Waste collection, CONTRACTOR may treat such collection as a Refuse collection subject to the applicable Refuse Collection Rates.
6. Section 6.4.1 is hereby amended in its entirety to read as follows:
6.4.1 No Commingling. CONTRACTOR shall not commingle, in the vehicles or otherwise, any Refuse with any Recyclable Materials, Organic Waste or Green Waste, or any Refuse, Recyclable Materials, Organic Waste or Green Waste with each other when collected by CONTRACTOR, unless otherwise specifically authorized in writing by CITY. CONTRACTOR shall not be deemed to have violated this Section where such materials were commingled prior to collection by CONTRACTOR.
7. Section 6.4.3 is hereby amended in its entirety to read as follows:
6.4.3 Compliance with C&D Diversion Requirements. CONTRACTOR shall comply with the requirements of the City's Construction and Demolition Waste diversion ordinance, and Applicable Law, as may be adopted or amended. CONTRACTOR and shall assist customers with compliance by diverting Construction and Demolition Waste to the maximum extent feasible and by providing receipts for all materials collected.
Shafter City Council Ordinance 737
Iuly 19,2022
8. Section 6.4.4. is hereby amended to change the last sentence to read: "Green Waste and Organic Waste shall be processed to ensure diversion credit to the maximum extent feasible."
9. Section 6.4.5 is hereby amended in its entirety to read as follows:
6.4.5 AB 341. & AB 1826. & SB 1383 Compliance. CONTRACTOR shall cooperate with CITY in enforcing mandatory Commercial Recycling and Organic Waste efforts as adopted by AB 341 (Chapter 476,StattÍes of 2012), AB 1826 (Chapter 727,Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2021), any Applicable Law, and their implementing regulations, as they may be amended.
CONTRACTOR shall provide any notices or information reasonably requested by CITY in enforcement of such requirements.
10. Section 6.8 is hereby added to read as follows:
6.8 Procurement of Recovered Organic Waste. CONTRACTOR shall serve as one direct service provider for the City to achieve its annual recovered organic waste procurement target. As a service provider, CONTRACTOR shall specifically facilitate and commit markets for applying procured compost and mulch to meet the recovered organic waste procurement target under 14 CCR sections 18993.1-18993.2 at no cost to the City. The targeted share of the procurement requirement CONTRACTOR assumes shall be 30%o of organics tonnage collected. Procurement shares shall be reviewed by the City and CONTRACTOR at the end of every calendar year. CONTRACTOR does not assume procurement requirements for any material beyond compost and mulch. CONTRACTOR understands that its ability to act as a direct service provider impacts the City's procurement compliance and sustainability of this franchise agreement.
I 1. Section 7.2 is hereby amended in its entirety to read as follows:
7.2 Route Review. Waste Evaluations and Contamination Minimization. CONTRACTOR shall, at its sole expense, conduct annual route reviews each calendar year for Prohibited Container Contaminants in Containers in a manner that is deemed safe by the CONTRACTOR, is approved by CITY, and is conducted in a manner that results in all routes being reviewed annually pursuant to 14 CCR Section 18984.5. CONTRACTOR shall visually inspect the contents of a reasonably representative number of Containers, as directed and approved by CITY.
CONTRACTOR shall develop a route review methodology that complies with the requirements of 14 CCR Section 18984.5(b). CONTRACTOR shall submit its proposed route review methodology for the coming year to the City no later than April 1 of each year describing its proposed methodology for the calendar year and schedule for performance of each route's annual review. CONTRACTOR's proposed route review methodology shall include its plan for Container inspections and shall also include its plan for prioritizing the inspection of Customers that are more likely to be out of compliance. CITY shall review, comment on, and approve the proposed methodology. CONTRACTOR may commence with the proposed methodology upon approval. If CITY notifies CONTRACTOR that the methodology is inadequate to meet the requirements of SB 1383, Contractor shall, at its sole expense, revise the methodology and, after obtaining CITY approval, conduct additional route reviews, increased Container inspections, or implement other changes using the revised procedure.
CONTRACTOR shall document Contamination with still pictures or video and will notif' the Customer of the Contamination by following the applicable procedures specified in 14 CCR Section 18984.5. CONTRACTOR shall perform the recordkeeping requirements for Container minimization in 14 CCR Section 18984.6. CONTRACTOR may, at its discretion Collect the Container as Recyclable Materials, Organic Materials, or as Solid Waste.
Shafter City Council Ordinance 737
July 19,2022
CONTRACTOR shall conduct waste stream audits in accordance with 14 CCR Section 18984.5 and shall analyze the quantity and composition of the waste stream for each Customer and shall recommend practices and techniques for improving the diversion rate of each Customer's waste stream.
12. Section 7.6 is hereby amended in its entirety to read as follows:
7.6 Education and Outreach. CONTRACTOR shall use Reasonable Business Efforts to outreach and educate the public on the importance of recycling and separating Solid Waste in order to achieve maximum waste diversion in accordance with 14 CCR Sections 18985.1-18985.2.
CONTRACTOR shall develop and implement a program of educational presentations and materials concerning the importance of recycling and diversion, proper techniques for Solid Waste disposal and recycling, and options for the disposal of Hazardous Waste. The educational program shall include a well-defined component aimed at capturing Organic Waste, and Green Waste generated by landscaping services and contractors, including information for Customers on how and why Organic Waste and Green Waste should be collected and diverted. All community relations and promotional materials and related news releases shall be developed at CONTRACTOR's sole cost and expense. An educational program shall be prepared for each fiscal year, and submitted to CITY's City Manager, for approval by CITY's City Council, no later than April lst. CONTRACTOR shall perform the recordkeeping requirements related to compliance with education and outreach requirements under l4 CCR Section 18985.3.
13. Section 7.7 is hereby added to read as follows:
7.7 Waivers. CONTRACTOR shall assist the CITY in the initial review of waiver applications under l4 CCR Section 18984.11. CONTRACTOR shall be responsible for the distribution, collection and evaluation of waiver applications as appropriate and provide the City a recommendation to accept or reject waiver requests. CONTRACTOR shall provide Collection services for customers not subject to waiver.
14. Section 7.8 is hereby added to read as follows:
7.8 SB 1383 Monitoring and Inspections. CONTRACTOR shall perform route reviews, compliance reviews, and inspections and reviews in accordance with l4 CCR Section 18995.1.
When compliance reviews are performed by CONTRACTOR, CONTRACTOR shall provide City-approved educational materials, in response to violations. CONTRACTOR shall provide these educational materials to the non-compliant Customers within two (2) working days of determination of non-compliance or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or route review. CONTRACTOR shall document the non-compliant Customers and the date and type of education materials provided and report such information to the CITY. The CITY shall be responsible for subsequent enforcement action against the Customer.
CONTRACTOR shall maintain a computer database of all oral and written SB 1383-related noncompliance incidents reported to CONTRACTOR from Customers or other persons, and documentation related to route reviews, compliance reviews, inspections, and enforcement.
15. Section 7.9 is hereby added to read as follows:
7.9 Edible Food Recovery. Contractor will provide information or documentation requested by the City in support of Organic Waste or Edible Food Recovery Capacity Planning studies. Contractor shall report to the City Commercial Edible Food Generators that fail to comply with 14 CCR $ 18991.1 - r 899r.5.
16. Section 8.2.2 is hereby amended to read as follows
Shafter City Council Ordinance 737
July 19,2022
8.2.2 Annual Adjustment. In addition to other increases as provided herein, the maximum Rates may annually be adjusted, up or down, using the methodology set forth in Exhibit "E." The first consideration for an annual increase will take place for the fiscal year commencing July 1,2023.
CONTRACTOR shall make a rate adjustment request for each fiscal year no later than the March lst prior to that fiscal year. Subject to the limits contained in this paragraph, CITY shall grant the adjustment if CONTRACTOR is in compliance with every term of this Agreement. A grant of a rate adjustment shall be by resolution or ordinance following a public hearing concerning the proposed increase. No adjustment granted by CITY shall exceed ten percent (10%).
The effective date of each annual adjustment granted by CITY shall be July l, unless the CITY requires more time to evaluate the information provided by CONTRACTOR. However, CONTRACTOR understands and agrees that CITY may be required to comply with Proposition 218 and other applicable law granting rate increases. CONTRACTOR shall, at its own cost, send notices to customers at least thirly (30) days prior to any adjustments.
CITY shall not be in breach of this Agreement if its residents lawfully delay or prevent CITY from raising or imposing the rates. In such event, CITY and CONTRACTOR shall meet in good faith to consider alternatives and options, which may include permitting CONTRACTOR to terminate the Agreement without cause.
17. Section 7.10 is hereby added to read as follows:
7.10 Recordkeeping and Reporting. CONTRACTOR shall prepare and maintain the records identified in 14 CCR Section 18995.2(Ð and assist CITY in reporting information about implementation and compliance with SB 1383 Regulations and in accordance with Anicle 13 of Chapter 12 of Title 14 of the CCR.
18. Section 74.2 is hereby amended to change the second category of amounts CONTRACTOR agrees to pay to CITY (as liquidated damages and not as a penalty as follows:
After "Discourteous behavior to a Customer" add "." and delete "The sum of Five Hundred Dollars ($500) if CONTRACTOR fails to remedy the violation within seventy-two hours of notice from CITY for:"
19. Section 15.9 is hereby amended to replace "Stephen P. Deitsch" with "Marco Martinez"
20. Exhibit B is hereby amended to read in full as set forth in Attachment l, incorporated by this reference.
21. Exhibit G is hereby amended to read in full as set forth in Attachment 2, incorporated by this reference.
21. Notwithstanding anything in the Agreement to the contrary, CITY or Contractor shall bill Customers those Rates set forth in Attachment l, incorporated by this reference beginning on July l, 2022. These Rates may be adjusted as set forth in the Agreement beginning July 1,2023.
22. Except as specifically modified by this First Amendment, the Agreement shall remain in full force and effect. All capitalized terms in this Amendment shall have the meaning ascribed them in the Agreement unless otherwise noted in this Amendment.
Shafter City Council Ordinance 737
July 19,2022
IN \ryITNESS WHEREOF, this Second Amendment to Exclusive Franchise Agreement for Collection and Handling of Commercial Solid Waste, Recycling and Organic Waste Between the City of Shafter and American Refuse, Inc. (Core City) is executed by the City of Shafter and American Refuse, Inc.
AMERICAN REFUSE,INC.,
a California corporation
Jeff Martin, President
CITY OF SFIAFTER,
a Charter City and Municipal Corporation
of the State of California
By:
Gabriel Gonzalez, City Manager
ATTEST
By:
Yazmina Pallares, City Clerk
APPROVED AS TO FORM
By
Marco Martinez, City Attomey
Shafter City Council Ordinance 737
Júy 19,2022
ATTACHMENT 1
EXHIBIT B
Core City Commercial Rates
Service Monthly Rates Per Unit
Multi-Family Weekly Refuse
& Organics Plus Bi-Weekly
Mixed Recyclins
92s.07
Service Collections Per \ileek & Monthly Rates
1 2 3 4 5 6
96-Gal Cart Refuse $24.00 $47.98 x x x x
L5 Cy Refuse $71.97 $138.00 x x x x
3 Cy Refuse $143.9s $2s6.09 $340.s0 $42s.73 $s 1 1.21 $s97.68 96-Gal Cart Recycling $10.80 $2t.63 x x X x
1.5 Cy Recycling $32.43 $64.87 x x x x
3 Cy Recycling $64.87 $129.74 $194.60 X X x
6 Cy Recycling s129.74 s2s9.47 $389.21 X X x
96-Gal Cart Organics s32.43 $64.87 x x x x
1.5 Cv Organics $97.31 $194.60 $291.91 x x x
RoII-Olf & Special Services Rate Per Service
Account Restart Fee $29.72
Bin Delivery Fee (Except New Service) $s9.4s
Cart Replacement $112.9s
Cart Redelivery Fee $29.72
Certifi cation (Customer Required) 847.s6
Gravity Bin Service Fee (Per Month) $8.74
Individually Scheduled Bin Service (Per Visit) $42.80
Extra Cart Service (Per Pickup) $23.78
Individually Dispatched Bin Service (Per Visit) $89.17
Install Gravity Lock $ 178.3 s
Manually Rolling Bins (Per Month) s8.32
Packer Truck Rental (Per Hour) $184.29
Residential Walk-In Service Per Visit $3.87
Bulky Item (Per Pickup) $s.94
Roll-Off Per Dump s271.39
Roll-Off Rental Per Dump $230. l 0
Roll-Off Delivery sr2s.29
Roll-Off Per Hour Charge $ls l.l9
Roll-Off Compactor Dump $331.89
Shafter City Council Ordinance 737
July 19,2022
Core Citv Residential Rates
Single-F amily Dwelling Service
Base Services
Monthly Service Rate
Per Dwelling
Weekly Refuse & Organics
Bi-Weekly Mixed Recycling
(All 96-Gallon Containers)
$26.ss
Special Services
Monthly Service Rate
Per Dwelling
Extra 96-Gallon Refuse Cart $8.1t
Extra 96-Gallon Recycli ng Cart $6.44
Extra 96-Gallon Organics Cart $8 11
Additional Charges F'ee Per Occurrence
Return for Missed Collection $17.2s
Cart Replacement $86.2s
Shafter City Council Ordinance 737
July 19,2022
Page I I
ATTACHMENT 2
EXHIBIT G
RATE ADJUSTMENT METHODOLOGY
The adjustment to the Rates will be made using the following methodology:
Step 1: Determine the "Rate Adjustment Factor" or "RAF". The RAF shall be the annual percentage change of the CPI for Garbage and Trash Collection, rounded to the nearest tenth percent on a calendar year basis. The Rate Period will be a l2-month period based on fiscal years, commencing July I and concluding June 30.
Reference: Bureau of Labor Statistics, CPI for All Urban Consumers, Garbage and Trash Collection Series ID: CUUROO00SEHGO2 (https:/idata.bls.gov/timeseries/CUUR0000SEHGO2) Step 2: Calculate the adjusted Rate, rounded to the nearest cent, for each Rate as follows:
Adjusted Rate: Then-current Rate x (1 + RAF)
Shafter Cify Council Ordinance 737
July 19,2022
EXHIBIT B
F'IRST AMENDMENT TO EXCLUSIVE FRANCHISE AGREEMENT FOR THE COLLECTION
AND HANDLING OF SOLD WASTE, RECYCLINGO AND ORGANIC WASTE IN EAST
SHAFTER
BET\ryEEN THE CITY OF SHAFTER
AND
AMERICAN REF'USE,INC.
THIS FIRST AMENDMENT TO EXCLUSIVE FRANCHISE AGREEMENT FOR THE COLLECTION
AND HANDLING OF SOLID WASTE, RECYCLING, AND ORGANIC WASTE IN EAST SHAFTER ("First Amendment") is made and entered into this day of 2022,by and between the CITY OF SHAFTER, a charter city and municipal corporation of the State of California, ("CITY"), and American Refuse, Inc., a California corporation ("CONTRACTOR"). CITY and CONTRACTOR are individually referred to as "Party" and collectively referred to as the "Parties".
WHEREAS, CITY and CONTRACTOR entered into the Exclusive Franchise Agreement for Collection and Handling of Solid Waste, Recycling and Green Waste in East Shafter between the City of Shafter and American Refuse, Inc. dated June 10, 2016 ("Agreement"); WHEREAS, SB 1383 (Chapter 395, Statutes of 2016) directed local agencies to divert organic waste from landfills and help reduce food insecurity, and regulations promulgated by the California Department of Resources Recycling and Recovery require the City to provide organic waste collection services and implement said regulations within the City; and
WHEREAS, CITY and CONTRACTOR desire to amend the Agreement to reflect the additional obligations required by the SB 1383 Regulations.
NOW, THEREFORE, the Parties agree to the following modifications to the Exclusive Franchise Agreement for Collection and Handling of Solid Waste, Recycling and Green Waste in East Shafter between the City of Shafter and American Refuse, Inc.
L Section I is hereby amended to add the following definitions CalRecycle means the California Department of Resources Recycling and Recovery Compost means the product resulting from the controlled decomposition of Organic wastes, including Green Waste, wood waste and Food Waste which are not Hazardous Wastes.
Food Waste means food scraps separated from Solid Waste and offered for Collection by the Contractor, that will decompose and/or putrefu including (i) all kitchen and table food waste, and animal or vegetable waste that affends or results from the storage, preparation, cooking or handling offood stuffs, and (ii) paper waste contaminated with food waste.
Landfill means a permitted disposal site which accepts Solid Waste.
2. Section I is hereby amended to amend the following definitions in their entirety:
Disposal Facility means the ultimate disposition of Solid Waste Collected by CONTRACTOR at a landfill in full regulatory compliance or other fully permitted disposal site.
Shafter City Council Ordinance 737
July 19,2022
Household Hazardous Waste means household chemicals, pesticides, batteries, motor oil and other petroleum-based products, paint, products containing mercury, E-Waste categorized as Universal Waste (such as television tubes or monitors) and antifreeze.
Organic Waste means Food Waste, Green Waste and food-soiled paper waste that is mixed in with Food Waste.
3. Section 3.1 is hereby amended to add the following to the end of the section.
CONTRACTOR and CITY agree the Franchise Fee is a negotiated amount that is reasonably related to the value of the rights granted to CONTRACTOR under this Agreement. CITY may use the Franchise Fee for any lawful purpose.
4. Section 6.2.3 is hereby amended in its entirety to read as follows:
6.2.3 Organic Waste Service. CONTRACTOR shall, once per week, collect the Organic Waste which has been placed at curbside by SFR Customers prior to the CONTRACTOR's normal weekly collection time. CONTRACTOR shall not be required to collect Organic Waste from a Container if the Organic Waste is commingled with Refuse or Recyclables. In the event the Organic Waste and Refuse or Recyclables are commingled to the extent that they cannot easily be separated by the CONTRACTOR or the nature of the material renders the Organic Waste contaminated, the CONTRACTOR will leave the material in the Container and will leave a non-collection notice explaining the reason for non-collection of the Organic Waste. Upon request, the CONTRACTOR, without expense to the CITY or Customer, shall provide a Container to a new SFR Customer that has no such Container within five (5) working days after notice, of, or request for, service, or in the case of annexations, within fourteen (14) days ofthe annexation effective date.
5. Section 6.2.4 is hereby amended in its entirety to read as follows
6.2.4 SFR Containers. CONTRACTOR shall provide all customers with Collection Containers that comply with the Container color requirements specified in this Section or as otherwise specified in the SB 1383 Regulations,l4 CCR Section 18982, or other Applicable Law. Without limiting CONTRACTOR's other obligations under this Agreement, Containers shall be 96-gallon carts to 6-yard bins.
All Containers shall be labeled in accordance with the requirements of SB 1383 Regulations.
CONTRACTOR shall obtain the CITY's written approval of Container specifications, colors, and labeling before acquisition and labeling occurs.
All Containers shall be labeled in accordance with the requirements of SB 1383 Regulations.
CONTRACTOR shall obtain the CITY's written approval of Container specifications, colors, and labeling before acquisition and labeling occurs.
6. Sections 6.2.5 and 6.6.4 are hereby amended to replace "Green Waste" with "Organic Waste".
7. Section 6.3.4 is hereby amended in its entirety to read as follows:
6.3.4 Organic Waste. CONTRACTOR shall provide and implement a program necessary to meet all Applicable Law regarding Organic Waste collection and disposal subject to City's review and approval. For customers receiving Organic Waste service, CONTRACTOR shall, as frequently as negotiated with customer but in no event less than once per week, collect the Organic Waste which have been placed, kept or accumulated in Organic Waste Bins or Containers at Commercial Premises.
Shafter City Council Ordinance 737
Iuly 19,2022
Following collection of Organic Waste from a Bin, CONTRACTOR shall return the Bin to its enclosure or customary location with the lid closed.
8. Section 6.3.6 is hereby amended in its entirety to read as follows:
6.3.6 Commingling Solid Waste. In the event a Customer commingles Refuse, Organic Waste, or Green Waste with Recyclables for Recyclable collection or commingles Refuse or Recyclables with Green Waste or Organic Waste for Green Waste or Organic Waste collection, CONTRACTOR may treat such collection as a Refuse collection subject to the applicable Refuse Collection Rates.
9. Section 6.6.1 is hereby amended in its entirety to read as follows:
6.6.1 No Commingling. CONTRACTOR shall not commingle, in the vehicles or otherwise, any Refuse with any Recyclable Materials, Organic Waste or Green Waste, or any Refuse, Recyclable Materials, Organic Waste or Green Waste with each other when collected by CONTRACTOR, unless otherwise specifically authorized in writing by CITY. CONTRACTOR shall not be deemed to have violated this Section where such materials were commingled prior to collection by CONTRACTOR.
10. Section 6.6.3 is hereby amended in its entirety to read as follows:
6.6.3 Compliance with C&D Diversion Requirements. CONTRACTOR shall comply with the requirements of the City's Construction and Demolition Waste diversion ordinance, and Applicable Law, as may be adopted or amended. CONTRACTOR and shall assist customers with compliance by diverting Construction and Demolition Waste to the maximum extent feasible and by providing receipts for all materials collected.
1 l. Section 6.6.5 is hereby amended in its entirety to read as follows:
6.6.5 AB 341. & AB 1826. & SB 1383 Compliance. CONTRACTOR shall cooperate with CITY in enforcing mandatory Commercial Recycling and Organic Waste efforts as adopted by AB 341 (Chapter 476,Statutes of 2012), AB 1826 (Chapter 727,Sfatufes of 2014), and SB 1383 (Chapter395, Statutes of 2021), any Applicable Law, and their implementing regulations, as they may be amended.
CONTRACTOR shall provide any notices or information reasonably requested by CITY in enforcement of such requirements.
12. Section 6.10 is hereby added to read as follows:
6.10 ent of Recovered w CONTRACTOR shall serve as one direct service provider for the City to achieve its annual recovered organic waste procurement target. As a service provider, CONTRACTOR shall specifically facilitate and commit markets for applying procured compost and mulch to meet the recovered organic waste procurement target under 14 CCR sections 18993.1-18993.2 at no cost to the City. The targeted share of the procurement requirement CONTRACTOR assumes shall be 30Yo of organics tonnage collected. Procurement shares shall be reviewed by the City and CONTRACTOR at the end of every calendar year. CONTRACTOR does not assume procurement requirements for any material beyond compost and mulch. CONTRACTOR understands that its ability to act as a direct service provider impacts the City's procurement compliance and sustainability of this franchise agreement.
13. Section 7.3 is hereby amended in its entirety to read as follows
7.3 Route Review" Waste Evaluations and Contamination Minimization. CONTRACTOR shall, at its sole expense, conduct annual route reviews each calendar year for Prohibited Container Shafter City Council Ordinance 737
Ju\y 19,2022
Contaminants in Containers in a manner that is deemed safe by the CONTRACTOR, is approved by CITY, and is conducted in a manner that results in all routes being reviewed annually pursuant to l4 CCR Section 18984.5. CONTRACTOR shall visually inspect the contents of a reasonably representative number of Containers, as directed and approved by CITY.
CONTRACTOR shall develop a route review methodology that complies with the requirements of 14 CCR Section 18984.5(b). CONTRACTOR shall submit its proposed route review methodology for the coming year to the City no later than January 15 of each year describing its proposed methodology for the calendar year and schedule for performance of each route's annual review. CONTRACTOR's proposed route review methodology shall include its plan for Container inspections and shall also include its plan for prioritizing the inspection of Customers that are more likely to be out of compliance. CITY shall review, comment on, and approve the proposed methodology. CONTRACTOR may commence with the proposed methodology upon approval. If CITY notifies CONTRACTOR that the methodology is inadequate to meet the requirements of SB 1383, Contractor shall, at its sole expense, revise the methodology and, after obtaining CITY approval, conduct additional route reviews, increased Container inspections, or implement other changes using the revised procedure.
CONTRACTOR shall document Contamination with still pictures or video and will notifz the Customer of the Contamination by following the applicable procedures specifìed in 14 CCR Section 18984.5. CONTRACTOR shall perform the recordkeeping requirements for Container minimization in 14 CCR Section 18984.6. CONTRACTOR may, at its discretion Collect the Container as Recyclable Materials, Organic Materials, or as Solid Waste.
CONTRACTOR shall conduct waste stream audits in accordance with 14 CCR Section 18984.5
14. Section 7.7 is hereby amended in its entirety to read as follows:
7.7 Education and Outreach. CONTRACTOR shall use Reasonable Business Efforts to outreach and educate the public on the importance of recycling and separating Solid Waste in order to achieve maximum waste diversion in accordance with 14 CCR Sections 18985.1-18985.2.
CONTRACTOR shall develop and implement a program of educational presentations and materials concerning the importance of recycling and diversion, proper techniques for Solid Waste disposal and recycling, and options for the disposal of Hazardous Waste. The educational program shall include a well-defined component aimed at capturing Organic Waste, and Green Waste generated by landscaping services and contractors, including information for Customers on how and why Organic Waste and Green Waste should be collected and diverted. All community relations and promotional materials and related news releases shall be developed at CONTRACTOR's sole cost and expense. An educational program shall be prepared for each fiscal year, and submitted to CITY's City Manager, for approval by CITY's City Council, no later than April lst. CONTRACTOR shall perform the recordkeeping requirements related to compliance with education and outreach requirements under 14 CCR Section 18985.3.
15. Section 7.8 is hereby added to read as follows:
7.8 Waivers. CONTRACTOR shall assist the CITY in the initial review of waiver applications under 14 CCR Section 18984.11. CONTRACTOR shall be responsible for the distribution, collection and evaluation of waiver applications as appropriate and provide the City a recommendation to accept or reject waiver requests. CONTRACTOR shall provide Collection services for customers not subject to waiver.
16. Section 7.9 is hereby added to read as follows:
Shafter City Council Ordinance 737
Júy 19,2022
7.9 SB 1383 Monitoring and Inspections. CONTRACTOR shall perform route reviews, compliance reviews, and inspections and reviews in accordance with I 4 CCR Section 1 8995. 1 .
When compliance reviews are performed by CONTRACTOR, CONTRACTOR shall provide Cityapproved educational materials, in response to violations. CONTRACTOR shall provide these educational materials to the non-compliant Customers within two (2) working days of determination of non-compliance or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or route review. CONTRACTOR shall document the non-compliant Customers and the date and type of education materials provided and report such information to the CITY. The CITY shall be responsible for subsequent enforcement action against the Customer.
CONTRACTOR shall maintain a computer database of all oral and written SB 1383-related noncompliance incidents reported to CONTRACTOR from Customers or other persons, and documentation related to route reviews, compliance reviews, inspections, and enforcement.
17. Section 7.10 is hereby added to read as follows
7.10 Edible Food Recovery. CONTRACTOR will provide information or documentation requested by the CITY in support of Organic Waste or Edible Food Recovery Capacity Planning studies.
CONTRACTOR shall report to the City Commercial Edible Food Generators that fail to comply with with 14 CCR $ 18991.1 - 18991.s.
18. Section 7.1 I is hereby added to read as follows:
7.ll Recordkeeping and Reporting. CONTRACTOR shall prepare and maintain the records identified in 14 CCR Section 15995.2(Ð and assist CITY in reporting information about implementation and compliance with SB 1383 Regulations and in accordance with Article 13 of Chapter 12 of Title 14 of the CCR.
19. Section 8.3.2 is hereby amended to read in full as follows
8.3.2 Annual Adiustment.
In addition to other increases as provided herein, the maximum Rates may annually be adjusted, up or down, using the methodology set forth in Exhibit "E." The first consideration for an annual increase will take place for the fiscal year commencing July 1,2023. CONTRACTOR shall make a rate adjustment request for each fiscal year no later than the March 1st prior to that fiscal year . Subject to the limits contained in this paragraph, CITY shall grant the adjustment if CONTRACTOR is in compliance with every term of this Agreement. A grant of a rate adjustment shall be by resolution or ordinance following a public hearing concerning the proposed increase. No adjustment granted by CITY shall exceed ten percent (10%).
The effective date of each annual adjustment granted by CITY shall be July lst. However, CONTRACTOR understands and agrees that CITY may be required to comply with Proposition 218 and other applicable law granting rate increases. CONTRACTOR shall, at its own cost, send notices to customers at least thirty (30) days prior to any adjustments.
CITY shall not be in breach of this Agreement if its residents lawfully delay or prevent CITY from raising or imposing the rates. In such event, CITY and CONTRACTOR shall meet in good faith to consider alternatives and options, which may include permitting CONTRACTOR to terminate the Agreement without cause.
Shafter City Council Ordinance 737
Ju,ly 19,2022
20. Section 14.2 is hereby amended to change the second category of amounts CONTRACTOR agrees to pay to CITY (as liquidated damages and not as a penalty as follows:
After "Discourteous behavior to a Customer" add ".'o and delete "The sum of Five Hundred Dollars ($500) if CONTRACTOR fails to remedy the violation within seventy-two hours of notice from CITY for:"
21. Section 15.9 is hereby amended to replace "Stephen P. Deitsch" with "Marco Martinez".
22. Section 16.1 is hereby amended to add ", Organic Waste" after "Green 'Waste"
23. Exhibit B is hereby amended to read in full as set forth in Attachment l, incorporated by this reference.
24. Exhibit E is hereby amended to read in full as set forth in Attachment 2, incorporated by this reference.
25. As set forth in the Agreement, CITY or CONTRACTOR, as applicable, shall bill Customers those Rates set forth in Attachment 1, incorporated by this reference beginning on July 1,2022. These Rates may be adjusted as set forth in the Agreement beginning July 1,2023.
26. Except as specifically modified by this First Amendment, the Agreement shall remain in full force and effect. All capitalized terms in this Amendment shall have the meaning ascribed them in the Agreement unless otherwise noted in this Amendment.
Shafter City Council OrdinanceT3T
July 19,2022
IN \ryITNESS WHEREOF, thiS FIRST AMENDMENT TO EXCLUSIVE FRANCHISE
AGREEMENT FOR THE COLLECTION AND HANDLING OF SOLID WASTE, RECYCLING, AND ORGANIC WASTE IN EAST SHAFTER is executed by the City of Shafter and by American Refuse, Inc.
AMERICAN REFUSE" INC.,
a California corporation
Jeff Martin, President
CITY OF SHAFTER,
a Charter City and Municipal Corporation
of the State of California
By:
Gabriel Gonzalez, City Manager
ATTEST:
By:
Yazmina Pallares, City Clerk
APPROVED AS TO FORM:
By:
Marco Martinez, City Attomey
Shafter City Council Ordinance 737
July 19,2022
ATTACHMENT 1
EXHIBIT B
East Shafter Commercial Rates
East Shafter Roll-off Rates
*Additional per ton gøte fees apply at County landJìlls. **Monthly rental may be proratedfor periods less
than one month.
COMMERCIAL REFUSE SERVICE COLLECTION RATES
CONTAINER SCHEDULE AND MONTHLY RATES
t)vwK 2)íWK 3)VWK 4Xl\ryK 5X/WK 6)(/wK
1.5 CY/3OO GAL s128.62 $200.36 8272.10 $343.84 $415.59 s487.32 3CY s 195.69 s291.92 $388. I 5 $484.39 $580.62 $676.85
COMMERCIAL DIVERSION SERVICE COLLECTION RATES
MIXED RECYCLING
CONTAINER SCHEDULE MONTHLY RATE
96 GAL BI-WEEKLY $ 17.10
I.5 YD WEEKLY $6s.36
3YD WEEKLY $104.13
ORGANICS
CONTAINER SCHEDULE MONTHLY RATE
1- 96 GAL IX PER WEEK $48.97
I-3YD 1X PERWEEK $376.80
1-3YD 2X PER V/EEK ss62.34
ADD-96 GAL IX PER WEEK $43.47
ADD- 3YD IX PER WEEK $36s.80
ROLLOFF SERVICE MONTHLY RATE
PER DUMP* $305.3s
RENTAL PER MONTH** $2s8.90
DELIVERY $140.96
PER HOUR CHARGE $170.r l
COMPACTOR DUMP* s373.43
Shafter City Council Ordinance 737
July 19,2022
East Shafter Residential Rates
*All residential contøiners are 96 gallons
CONTAINER* SCHEDULE
MONTHLY
RATE
THREE-CART SET BASE RATE
927,79 REFUSE WEEKLY
ORGANICS WEEKLY
MIXED BI-WEEKLY
RECYCLING SURCHARGE $ l.7l
TOTAL 829.50
ADD REFUSE Iù/EEKLY $14. l3
ADD ORGANICS WEEKLY $9.90
ADD MIXED BI-IWEEKLY $5.43
Shafter City Council Ordinance 737
Ju,ly 19,2022
ATTACHMENT 2
EXIIIBIT E
RATE ADJUSTMENT METHODOLOGY
The adjustment to the Rates will be made using the following methodology:
Step 1: Determine the "Rate Adjustment Factor" or "flAF". The RAF shall be the annual percentage change of the CPI for Garbage and Trash Collection, rounded to the nearest tenth percent on a calendar year basis. The Rate Period will be a l2-month period based on fiscal years, commencing July I and concluding June 30.
Reference: Bureau of Labor Statistics, CPI for All Urban Consumers, Garbage and Trash Collection Series ID: CUUR0000SEHG02 (https:l/data.bls.gov/timeseries/CUUR0000sEHc02) Step 2: Calculate the adjusted Rate, rounded to the nearest cent, for each Rate as follows Adjusted Rate: Then-current Rate x (l + RAF)
Shafter City Council OrdinanceT3T
Iuly 19,2022
EXHIBIT C
SECOND AMENDMENT TO EXCLUSIVE F'RANCHISE AGREEMENT FOR THE COLLECTTON AND HA¡IDLTNG OF SOLD WASTE, RECYCLTNG, AND ORGANTC WASTE
IN EAST SHAF'TER
BETWEEN THE CITY OF SHAFTER
AND
VARNER BROS., INC.
THIS SECOND AMENDMENT TO EXCLUSIVE FRANCHISE AGREEMENT FOR THE
COLLECTION AND HANDLING OF SOLID WASTE, RECYCLING, AND ORGANIC WASTE IN EAST SHAFTER ("First Amendment") is made and entered into this day of 2022, by and between the CITY OF SHAFTER, a charter city and municipal corporation of the State of California, ("CITY"), and VARNER BROS., INC., a California corporation ("CONTRACTOR'). CITY and CONTRACTOR are individually refened to as "Party" and collectively referred to as the "Parties".
WHEREAS, CITY and CONTRACTOR entered into the Exclusive Franchise Agreement for Collection and Handling of Solid Waste, Recycling and Green Waste in East Shafter between the City of Shafter and Varner Bros., Inc. dated June 10, 2016 ("Initial Franchise"); WHEREAS, CITY and CONTRACTOR entered into that First Amendment to the Initial Franchise (the Initial Franchise as amended shall be referred to as the "Agreement") to consent to the transfer of the outstanding stock of CONTRACTOR to Burrtec Kern, LLC (the "Transaction").
WHEREAS, SB 1383 (Chapter 395, Statutes of 2016) directed local agencies to divert organic waste from landfills and help reduce food insecurity, and regulations promulgated by the California Department of Resources Recycling and Recovery require the City to provide organic waste collection services and implement said regulations within the City; and
WHEREAS, CITY and CONTRACTOR desire to amend the Agreement to reflect the additional obligations required by the SB 1383 Regulations.
NOW, THEREFORE, the Parties agree to the following modifications to the Agreement
1. Section 1 is hereby amended to add the following definitions:
CalRecycle means the California Department of Resources Recycling and Recovery.
Compost means the product resulting from the controlled biological decomposition of Organic wastes, including Green Waste, wood waste and Food Waste which are not Hazardous Wastes .
Food Waste means food scraps that are source-separated from Solid Waste and offered for Collection by the Contractor, that will decompose and/or putrefr including (i) all kitchen and table food waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking or handling of food stuffs, and (ii) paper waste contaminated with food waste. Food waste excludes fats, oils, liquids, and grease when such materials are source separated and items not accepted by the processing facility.
Landfill means a permitted disposal site which accepts Solid Waste.
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"Prohibited Container Contaminants means Solid Waste placed in a container which has not been identified as acceptable waste for that particular color container.
2. Section 1 is hereby amended to amend the following definitions in their entirety:
Disposal Facilitv means the ultimate disposition of Solid Waste Collected by CONTRACTOR at a landfill in full regulatory compliance or other fully permitted disposal site.
Household Hazardous Waste means household chemicals, pesticides, batteries, motor oil and other petroleum-based products, paint, products containing mercury, E-Waste categorized as Universal Waste (such as television tubes or monitors) and antifreeze.
Organic Waste means Food Waste, Green Waste and food-soiled paper waste that is mixed in with Food Waste.
3. Section 3.1 is hereby amended to add the following to the end of the section.
CONTRACTOR and CITY agree the Franchise Fee is a negotiated amount that is reasonably related to the value of the rights granted to CONTRACTOR under this Agreement. CITY may use the Franchise Fee for any lawful purpose.
4. Section 6.2.3 is hereby amended in its entirety to read as follows:
6.2.3 Organic Waste Service. CONTRACTOR shall, once per week, collect the Organic Waste which has been placed at curbside by SFR Customers prior to the CONTRACTOR's normal weekly collection time. CONTRACTOR shall not be required to collect Organic Waste from a Container if the Organic Waste is commingled with Refuse or Recyclables. In the event the Organic Waste and Refuse or Recyclables are commingled to the extent that they cannot easily be separated by the CONTRACTOR or the nature of the material renders the Organic Waste contaminated, the CONTRACTOR will leave the material in the Container and will leave a non-collection notice explaining the reason for non-collection of the Organic Waste. Upon request, the CONTRACTOR, without expense to the CITY or Customer, shall provide a Container to a new SFR Customer that has no such Container within five (5) working days after notice, of, or request for, service, or in the case of annexations, within fourteen (14) days ofthe annexation effective date.
5. Section 6.2.4 is hereby amended in its entirety to read as follows
6.2.4 SFR Containers. CONTRACTOR shall provide all customers with Collection Containers that comply with the Container color requirements specified in this Section or as otherwise specified in the SB 1383 Regulations,l4 CCR Section 18982, or other Applicable Law. Without limiting CONTRACTOR's other obligations under this Agreement, Containers shall be 96-gallon carts to 6-yard bins.
All Containers shall be labeled in accordance with the requirements of SB 1383 Regulations.
CONTRACTOR shall obtain the CITY's written approval of Container specifications, colors, and labeling before acquisition and labeling occurs.
CONTRACTOR shall obtain the CITY's written approval of Container specifications, colors, and labeling before acquisition and labeling occurs.
To the extent permitted by the SB 1383 Regulations, Contractor is not required to replace functional containers, including containers purchased prior to January 1,2022, that do not comply with Shafter City Council Ordinance 737
Ju'ly 19,2022
the requirements of this Agreement prior to the end of the useful life of those containers, or prior to January 1,2036, whichever comes first.
6. Sections 6.2.5 and 6.6.4 are hereby amended to replace "Green Vy'aste" with "Organic Waste".
7. Section 6.3.4 is hereby amended in its entirety to read as follows:
6.3.4 Organic Waste. CONTRACTOR shall provide and implement a program necessary to meet all Applicable Law regarding Organic Waste collection and disposal subject to City's review and approval. For customers receiving Organic Waste service, CONTRACTOR shall, as frequently as negotiated with customer but in no event less than once per week, collect the Organic Waste which have been placed, kept or accumulated in Organic Waste Bins or Containers at Commercial Premises.
Following collection of Organic Waste from a Bin, CONTRACTOR shall return the Bin to its enclosure or customary location with the lid closed.
8. Section 6.3.6 is hereby amended in its entirety to read as follows
6.3.6 Commingling Solid Waste. In the event a Customer commingles Refuse, Organic Waste, or Green Waste with Recyclables for Recyclable collection or commingles Refuse or Recyclables with Green Waste or Organic Waste for Green Waste or Organic Waste collection, CONTRACTOR may treat such collection as a Refuse collection subject to the applicable Refuse Collection Rates.
9. Section 6.6.1 is hereby amended in its entirety to read as follows
6.6.1 No Commingling. CONTRACTOR shall not commingle, in the vehicles or otherwise, any Refuse with any Recyclable Materials, Organic Waste or Green Waste, or any Refuse, Recyclable Materials, Organic Waste or Green Waste with each other when collected by CONTRACTOR, unless otherwise specifically authorized in writing by CITY. CONTRACTOR shall not be deemed to have violated this Section where such materials were commingled prior to collection by CONTRACTOR.
10. Section 6.6.3 is hereby amended in its entirety to read as follows:
6.6.3 Compliance with C&D Diversion Requirements. CONTRACTOR shall comply with the requirements of the City's Construction and Demolition Waste diversion ordinance, and Applicable Laws, as may be adopted or amended. CONTRACTOR and shall assist customers with compliance by diverting Construction and Demolition Waste to the maximum extent feasible and by providing receipts for all materials collected.
1 l. Section 6.6.5 is hereby amended in its entirety to read as follows:
6.6.5 AB 341" & AB 1826. & SB 1383 Compliance. CONTRACTOR shall cooperate with CITY in enforcing mandatory Commercial Recycling and Organic Waste efforts as adopted by AB 341 (Chapter 476,Stalttes of 2012), AB 1826 (Chapter 727,Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2021), any Applicable Law, and their implementing regulations, as they may be amended.
CONTRACTOR shall provide any notices or information reasonably requested by CITY in enforcement of such requirements.
12. Section 6.10 is hereby added to read as follows:
6.10 Procurement of Resovered Organic Waste.
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July 19,2022
CONTRACTOR shall serve as one direct service provider for the City to achieve its annual recovered organic waste procurement target. As a service provider, CONTRACTOR shall specifically facilitate and commit markets for applying procured compost and mulch to meet the recovered organic waste procurement target under 14 CCR sections 18993.1-18993.2 at no cost to the City. The targeted share of the procurement requirement CONTRACTOR assumes shall be 30Yo of organics tonnage collected. Procurement shares shall be reviewed by the City and CONTRACTOR at the end of every calendar year. CONTRACTOR does not assume procurement requirements for any material beyond compost and mulch. CONTRACTOR understands that its ability to act as a direct service provider impacts the City's procurement compliance and sustainability of this franchise agreement.
13. Section 6.i I is hereby added to read as follows:
6.11. Alternative Compliance. Nothing in this Section 6 shall prohibit CONTRACTOR from meeting its compliance requirements by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, andlor any other applicable law, as may be amended from time to time and as approved by the City.
14. Section 7.3 is hereby amended in its entirety to read as follows:
7 -3 Route Review Waste Evaluations and Contamination Minimization. CONTRACTOR shall, at its sole expense, conduct container contamination minimization activities each calendar year for Prohibited Container Contaminants in Containers in a manner that is deemed safe by the CONTRACTOR, is approved by CITY, and is conducted in a manner pursuant to 14 CCR Section 18984.5 using either route reviews or waste evaluations as determined by CONTRACTOR and CITY.
Route review methodology shall comply with the requirements of 14 CCR Section 18984.5(b).
CONTRACTOR shall submit its proposed route review methodology for the coming year to the City no later than January 15 ofeach year describing its proposed methodology for the calendar year and schedule for performance of each route's annual review. CONTRACTOR's proposed route review methodology shall include its plan for Container inspections and shall also include its plan for prioritizing the inspection of Customers that are more likely to be out of compliance. CITY shall review, comment on, and approve the proposed methodology. CONTRACTOR may commence with the proposed methodology upon approval. If CITY notifies CONTRACTOR that the methodology is inadequate to meet the requirements of SB 1383, Contractor shall, at its sole expense, revise the methodology and, after obtaining CITY approval, conduct additional route reviews, increased Container inspections, or implement other changes using the revised procedure.
CONTRACTOR shall document Contamination with still pictures or video and will notifu the Customer of the Contamination by following the applicable procedures specified in 14 CCR Section 18984.5. CONTRACTOR shall perform the recordkeeping requirements for Container minimization in l4 CCR Section 18984.6. CONTRACTOR may, at its discretion Collect the Container as Recyclable Materials, Organic Materials, or as Solid Waste.
Waste evaluations shall be conducted in accordance with 14 CCR Section 18984.5I and shall analyze the quantity and composition of the waste stream for each Customer and shall recommend practices and techniques for improving the diversion rate of each Customer's waste stream.
15. Section 7.7 is hereby amended in its entirety to read as follows:
7.l Education and Outreach. CONTRACTOR shall use Reasonable Business Efforts to outreach and educate the public on the importance of recycling and separating Solid Waste in order to achieve maximum waste diversion in accordance with 14 CCR Sections 18985.1-18985.2.
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CONTRACTOR shall develop and implement a program of educational presentations and materials concerning the importance of recycling and diversion, proper techniques for Solid Waste disposal and recycling, and options for the disposal of Hazardous Waste. The educational program shall include a well-defined component aimed at capturing Organic Waste, and Green Waste generated by landscaping services and contractors, including information for Customers on how and why Organic Waste and Green Waste should be collected and diverted. All community relations and promotional materials and related news releases shall be developed at CONTRACTOR's sole cost and expense. A new educational program shall be prepared for each fiscal year, and submitted to CITY's City Manager, for approval by CITY's City Council, no later than April lst. CONTRACTOR shall perform the recordkeeping requirements related to compliance with education and outreach requirements under 14 CCR Section 18985.3.
16. Section 7.8 is hereby added to read as follows:
7.8 Waivers. CONTRACTOR shall assist the CITY in the initial review of waiver applications under l4 CCR Section 18984.11. CONTRACTOR shall be responsible for the distribution, collection and evaluation of waiver applications as appropriate and provide the City a recommendation to accept or reject waiver requests. CONTRACTOR shall provide Collection services for customers not subject to waiver.
17. Section 7.9 is hereby added to read as follows:
7.9 SB 1383 Monitoring and Inspections. CONTRACTOR shall perform route reviews, compliance reviews, and inspections and reviews in accordance with l4 CCR Section 18995.1.
When compliance reviews are performed by CONTRACTOR, CONTRACTOR shall provide City-approved educational materials, in response to violations. CONTRACTOR shall provide these educational materials to the non-compliant Customers within two (2) working days of determination of non-compliance or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or route review. CONTRACTOR shall document the non-compliant Customers and the date and type of education materials provided and report such information to the CITY. The CITY shall be responsible for subsequent enforcement action against the Customer.
CONTRACTOR shall maintain a computer database of all oral and written SB 1383-related noncompliance incidents reported to CONTRACTOR from Customers or other persons, and documentation related to route reviews, compliance reviews, inspections, and enforcement.
18. Section 7.10 is hereby added to read as follows
7.10 Edible Food Recovery. Contractor will provide information or documentation requested by the City in support of Organic Waste or Edible Food Recovery Capacity Planning studies. Contractor shall report to the City Commercial Edible Food Generators that fail to comply with 14 CCR $ 18991-l - I 899 l .5.
19. Section 7.1 1 is hereby added to read as follows:
7.ll Recordkeeping and Reporting. CONTRACTOR shall prepare and maintain the records identified in 14 CCR Section 18995.2(Ð and assist CITY in reporting information about implementation and compliance with SB 1383 Regulations and in accordance with Article 13 of Chapter 12 of Title 14 of the CCR.
20. Section 8.3.2 is hereby amended to read in full as follows Shafter City Council Ordinance 737
Iuly 19,2022
8.3.2 Annual Adiustment. In addition to other increases as provided herein, the maximum Rates may annually be adjusted, up or down, using the methodology set forth in Exhibit "E." The first consideration for an annual increase will take place for the fiscal year commencing July 1,2023.
CONTRACTOR shall make a rate adjustment request for each fiscal year no later than the March lst prior to that fiscal year. Subject to the limits contained in this paragraph, CITY shall grant the adjustment if CONTRACTOR is in compliance with every term of this Agreement. A grant of a rate adjustment shall be by resolution or ordinance following a public hearing concerning the proposed increase. No adjustment granted by CITY shall exceed ten percent (10%\ The effective date of each annual adjustment granted by CITY shall be July lst. However, CONTRACTOR understands and agrees that CITY may be required to comply with Proposition 218 and other applicable law granting rate increases. CONTRACTOR shall, at its own cost, send notices to customers at least thirty (30) days prior to any adjustments.
CITY shall not be in breach of this Agreement if its residents lawfully delay or prevent CITY from raising or imposing the rates. In such event, CITY and CONTRACTOR shall meet in good faith to consider alternatives and options, which may include permitting CONTRACTOR to terminate the Agreement without cause.
21. Section 14.2 is hereby amended to change the second category of amounts CONTRACTOR agrees to pay to CITY (as liquidated damages and not as a penalty as follows:
After "Discourteous behavior to a Customer" add "." and delete "The sum of Five Hundred Dollars ($SOO¡ if CONTRACTOR fails to remedy the violation within seventy-two hours of notice from CITY for:"
22. Section 15.9 is hereby amended to replace "Stephen P. Deitsch" with "Marco Martinez".
23. Section l6.l is hereby amended to add ", Organic Waste" after "Green Waste".
24. Exhibit B is hereby amended to read in full as set forth in Attachment l, incorporated by this reference.
25. Exhibit E is hereby amended to read in full as set forth in Attachment 2, incorporated by this reference.
26. As set forth in the Agreement, CITY or CONTRACTOR, as applicable, shall bill Customers those Rates set forth in Attachment 1, incorporated by this reference beginning on July 1,2022. These Rates may be adjusted as set forth in the Agreement beginning July 1,2023.
27. Except as specifically modified by this First Amendment, the Agreement shall remain in full force and effect. All capitalized terms in this Amendment shall have the meaning ascribed them in the Agreement unless otherwise noted in this Amendment.
Shafter City Council Ordinance 737
July 19,2022
IN WITNESS WHEREOF" this FIRST AMENDMENT TO EXCLUSIVE FRANCHISE
AGREEMENT FOR THE COLLECTION AND HANDLING OF SOLID WASTE, RECYCLING, AND ORGANIC WASTE IN EAST SHAFTER is executed by the City of Shafter and by Varner Bros., Inc.
VARNER BROS., INC.,
a California corporation
CITY OF SHAFTER,
a Charter City and Municipal Corporation
of the State of California
By:
Gabriel Gonzalez, City Manager
ATTEST:
By:
Yazmina Pallares, City Clerk
APPROVED AS TO FORM
By:
Marco Martinez, City Attorney
Jacob Panero, CEO
Shafter City Council Ordinance 737
July 19,2022
ATTACHMENT 1
EXHIBIT B
East Shafter Commercial Rates
East Shafter Roll-off Rates
*Additional per ton gatefees apply at County løndfills. **Monthly rental may be proratedfor periods less
than one month.
COMMERCIAL REFUSE SERVICE COLLECTION RATES
CONTAINER SCHEDULE AND MONTHLY RATES
1X/WK 2XlWK 3)VWK 4)VWK 5X/WK 6X/WK
1.5 CY/3OO GAL s128.62 $200.36 s272.10 $343.84 $4r s.59 $487.32 3CY $19s.69 s291.92 $3 88.1 5 $484.39 $s80.62 $676.85
COMMERCIAL DIVERSION SERVICE COLLECTION RATES
MIXED RECYCLING
CONTAINER SCHEDULE MONTHLY RATE
96 GAL BI.WEEKLY $ r 7.10
I.5 YD WEEKLY $6s.36
3YD WEEKLY $104.13
ORGANICS
CONTAINER SCHEDULE MONTHLY RATE
I- 96 GAL IX PER WEEK $48.97
I-3YD lX PER WEEK $376.80
1-3YD 2X PER WEEK $s62.34
ADD-96 GAL lX PER WEEK s43.47
ADD.3YD IX PER WEEK $365.80
ROLLOF'F'SERVICE MONTHLY RATE
PER DUMP* $305.3s
RENTAL PER MONTH** $258.90
DELIVERY $140.96
PER HOUR CHARGE $170.11
COMPACTORDUMP* s373.43
Shafter City Council Ordinance 737
Iuly 19,2022
East Shafter
*All residential containers are 96 gallons
Rates
CONTAINER* SCHEDULE
MONTHLY
RATE
THREE-CART SET BASE RATE
s27.79 REFUSE WEEKLY
ORGANICS WEEKLY
MIXED BI-WEEKLY
RECYCLING SURCHARGE sl.7l
TOTAL 829.s0
ADD REFUSE WEEKLY sl4.l3
ADD ORGANICS WEEKLY $9.90
ADD MIXED BI-WEEKLY $s.43
Shafter City Council Ordinance 737
July 19,2022
ATTACHMENT 2
EXHIBIT E
RATE ADJUSTMENT METHODOLOGY
The adjustment to the Rates will be made using the following methodology:
Step 1: Determine the "Rate Adjustment Factor" or "I{AF". The RAF shall be the annual percentage change of the CPI for Garbage and Trash Collection, rounded to the nearest tenth percent on a calendar year basis. The Rate Period will be a l2-month period based on fiscal years, commencing July I and concluding June 30.
Reference: Bureau of Labor Statistics, CPI for All Urban Consumers, Garbage and Trash Collection Series ID: CUUR0000SEHG02 (https:lldata.bls.gov/timeseries/CUUR0000sEHc02) Step 2: Calculate the adjusted Rate, rounded to the nearest cent, for each Rate as follows:
Adjusted Rate: Then-current Rate x (l + RAF)
,r^=
11 ,tr oñ
SHAFTER
City of Shafter
COUNCIL AGENDA REPORT
Meeting Date: June2l,2022
FROM: Gabriel A. Gonzalez, City Manager
Prepared By: Michael James, Public'Works Director
SUBJECT: APPROVAL OF AGREEMENT WITH AMERICAN REFUSE, INC. FOR
CORE CITY HANDLING OF RESIDENTIAL SOLID WASTE, ORGANICS,
AND RECYCLING COLLECTION SERVICES
RECOMMENDATION
Council find the requested action is exempt from the California Environmental Quality Act; approve the 'oFranchise Agreement for Collection and Handling of Residential Solid 'Waste, Organics, and Recycling between the City of Shafter and American Refuse, Inc. (Core City)" as prepared and approved by the City Attorney; and authorize the Mayor and City Attorney to executed said agreement on behalf of the City.
BACKGROUND
At its February 15,2022 meeting, the Council adopted Ordinance No. 73I, authorizing a formal award of a new solid waste collections franchise to American Refuse for servicing Core City residents. The primary need for the proposed franchise is compliance with new waste diversion mandates established by the State of California Senate Bill (SB) 1383.
Following the ordinance adoption, City staff have completed and distributed a public hearing notice to impacted residents and landowners, as required by State of California law, to allow for protests to be filed against the service rates. The hearing was noticed for this meeting and is on the meeting agenda. In addition, a Notice of Intent to Comply with SB 1383, featuring a compliance timetable, was filed with the State and approved in May. A highlight of the compliance plan is a proposed transition from trash-only to three-cart service with the Core City starting July I,2022 and lasting through March 2023. The milestones described above allowed Public Works and the City Attorney to finalize a new franchise agreement with American Refuse, which covered threecart collection services, public outreach, and other services to comply with the new mandates.
FISCAL IMPACT
Fiscal impacts of the franchise implementation are due to take effect during the Fiscal Year 2022- 2023. City staff has prepared the draft budget for Refuse Enterprise for this cycle to implement the franchise and enforce the SB 1383 mandates. Therefore, no budget action is required with this item.
4 MANAGEMENT REPORT
Approval of Agreement with American Refuse, Inc. for Core City Handling of Residential Solid Waste, Organics, and Recycling Collection Services
CEQA ANALYSIS
The proposed activity is not subject to the California Environmental Quality Act (CEQA) because it is not defined as a "Project" pursuant to Section 15378(bX5) of the CEQA Guidelines.
ALTERNATIVES
Provided the Council conducts the aforementioned public protest hearing and adopts the proposed service rates via a resolution, the franchise agreement can and should be approved so it can be in effect by the time the three-cart transition period is scheduled to commence. Approval of the franchise agreement can be delayed should there be any previous direction from the Council to prepare a new SB 1383 compliance plan.
ATTACHMENTS
l. Core City Residential Franchise Agreement
-2-
FRANCHISE AGREEMENT
FOR COLLECTION AND HANDLING OF
RESIDENTIAL
SOLID WASTE, ORGANICS, AND RE,CYCLING
BET\ilEEN THE CITY OF SHAFTER
AND
AMERICAN REFUSE,INC. (CORE CITY)
THIS AGREEMENT FOR THE COLLECTION AND HANDLING OF SOLID WASTE ("Agreement") is made and entered into this day of 2022, by and between the CITY OF SHAFTER, a charter city and municipal corporation of the State of California, ("CITY"), and American Refuse, Inc., a California corporation ("CONTRACTOR").
CITY and CONTRACTOR are individually referred to as "Party" and collectively referred to as the "Parties".
RECITALS:
WHEREAS, the Legislature of the State of Califomia, by enactment of the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et. seq.) ("AB 939"), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions to meet the goals and requirements of AB 939;
WHEREAS, pursuant to California Public Resources Code Section 40059(a)(2), CITY has determined that in order to protect the public health and safety of the residents within the identified portions of the City of Shafter, it is appropriate to provide for solid waste collection and disposal by a private waste hauler as an altemative to providing such services through public resources; and to that end has determined that an exclusive franchise be awarded to a qualified company for the handling of solid waste and recyclable materials and other services to meet the goals and requirements of AB 939; which franchise can be appropriately integrated into and function as part of the solid waste system provided by CITY;
WHEREAS, Public Resources Code Section 40059 permits CITY to impose terms and conditions on the award of a solid waste franchise if, in the opinion of the governing body, the public health, safety and well-being require the imposition of those terms and conditions; V/HEREAS, CONTRACTOR has represented and warranted to CITY that it has the experience, responsibility, and qualifications to provide Solid Waste handling services, as defined in Public Resources Code Section 49505 and as described herein;
WHEREAS, the City Council of CITY has determined that CONTRACTOR, by demonstrated experience, reputation and capacity is qualified to continue to exclusively provide for the collection of residential Solid Waste within the identified portions of the CITY and to transport such Solid Waste to places of processing and disposal, which may be designated in accordance with this Agreement, and CITY and CONTRACTOR desire that CONTRACTOR be engaged to perform such services on the terms and conditions set forth in this Agreement; WHEREAS, the City Council of CITY has determined that the public health, safety and well-being of its residents require that Solid Waste collection, processing and disposal, including but not limited to the frequency of collection, the means of collection and the transportation, scope of services, charges and fees, location and extent ofsuch services be governed by and provided under an exclusive Solid Waste franchise agreement;
WHEREAS, the Parties hereto desire to enter into this Agreement for the purpose of rescinding and superseding all prior agreements and understandings between the Parties to accurately reflect the rights and obligations of the CITY and CONTRACTOR solely as set forth in this Agreement; and
V/HEREAS, the City Council of CITY fuither declares its intention of maintaining reasonable rates for collection, processing and disposal of Solid V/aste within CITY; NOW, THEREFORE, in consideration of the respective and mutual covenants and promises contained and made in this Agreement, and subject to all the terms and conditions of this Agreement, the Parties agree as follows:
1. DEFINITIONS
Affiliated Companies mean all businesses which are directly or indirectly related to CONTRACTOR by virtue of direct or indirect ownership interests or common management or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in CONTRACTOR.
Applicable Law means all law, statutes, rules, regulations, guidelines, permits, actions, determinations, orders, or requirements of the United States, State of California, County of Kern, CITY, regional or local government authorities, agencies, boards, commissions, courts or other bodies having applicable jurisdiction, including AB 939, that from time to time apply to or govem the services provided pursuant to this Agreement or the performance of the Parties' respective obligations hereunder, including any of the foregoing which concern health, safety, fire, environmental protection, labor relations, mitigation monitoring plans, building codes, zoning, non-discrimination, and the Kern County Integrated Waste Management Plan. All references herein to Applicable Law include subsequent amendments thereto, unless otherwise specifically limited.
Bulky V/aste means items that can reasonably be lifted by two people, including but not limited to, large and small household appliances, furniture, mattresses, and similar large items which require special Collection due to their size or nature, cannot be contained within a standard Container, or which does not fit in or causes harm to collection vehicles.
CalRecycle means the California Department of Resources Recycling and Recovery Cit)' Manager means the City Manager of CITY. The City Manager or designee is the authorized agent of CITY in enforcing the terms of this Agreement.
Compost means the product resulting from the controlled decomposition of Organic wastes, including Green Waste, wood waste and Food Waste which are not Hazardous Vy'astes.
Construction and Demolition Waste or C&D Debris means any waste matter which is a byproduct of a construction, demolition, clean-up or remodeling process, wherever occurring within the CITY, and is considered Solid Waste for purposes of this Agreement.
Container means an industry standard receptacle for disposal of residential Solid Waste, Organic Waste, and Recyclables, in a range of sizes, including approximately 90-98 gallons. A Container may have wheels, has a handle for ease of movement and a tight-fitting lid and is designed to be dumped manually or mechanically into a Solid V/aste collection vehicle.
County means Kem County.
Customer means each person or business directly receiving services from CONTRACTOR within the Franchise Area.
Disposal Facility means the ultimate disposition of Solid Waste Collected by CONTRACTOR at a landfill in full regulatory compliance or other fully permitted disposal site.
E-Waste means appliances, devices, and other objects containing electronic components, and includes (but is not limited to) computers, computer monitors, cellular telephones, copiers, fax machines, DVD players, VCR's, televisions, printers, microwaves, and toasters.
Excluded V/aste means Hazardous Waste; volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material; waste that the CONTRACTOR reasonably believes would, as a result of or upon disposal, be a violation of local, state, or federal law, regulation, or ordinance, including land use restrictions or conditions; waste that cannot be disposed of in Class III landfills; waste that in CONTRACTOR's reasonable opinion would present a significant risk to human health or the environment, cause a nuisance, or otherwise create or expose the CONTRACTOR or the CITY to potential liability; and Special Waste.
Food Waste means food scraps separated from Solid Waste and offered for collection by the Contractor, that will decompose and/or putre$r including (i) all kitchen and table food waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking or handling of food stuffs, and (ii) paper waste contaminated with food waste.
Franchise Area means the portion of the CITY as described and depicted in Exhibit "4" attached to this Agreement and incorporated by this reference. The Franchise Area may be expanded as permitted in this Agreement.
Green Vy'aste means grass clippings, leaves, prunings, tree trimmings, pine needles, weeds, branches, brush andnonhazardous wood waste.
Green Waste Facility means a facility or facilities for the controlled biological decomposition of organic wastes that have been source separated from the CITY's municipal Solid Waste stream, or which have been separated at a centralized facility.
Hazardous Vy'aste means any material, which by reason of its quality, concentration, composition or physical, chemical or infectious characteristics may cause or significantly contribute to an increase in mortality or an increase in serious illness or pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported or disposed of or otherwise mismanaged or any waste which is defined or regulated as a hazardous waste, toxic waste, hazardous chemical substance or mixture, or asbestos under Applicable Law, including:
a. "Hazardous Waste" pursuant to Section 40T41of the Califomia Public Resources Code; regulated under Chapter 7.6 (commending with Section 25800) of Division 20 of the California Health and Safety Code; all substances defined as hazardous waste, acutely hazardous waste, or extremely hazardous waste by Sections 25110.02,25115, and25Il7 of the California Health and Safety Code (the California Hazardous 'Waste Control Act), California Health and Safety Code Section 25100 et seq., and future amendments to or recodification of such statutes or regulations promulgated thereunder, including23 California Code of Regulations (CCR) Sections 2521and2522;
b. Materials regulated under the Resource Conservation and Recovery Ac!42 U.S.C.
Section 690I et seq., as amended (including, but not limited to, amendments thereto made by the Solid V/aste Disposal Act Amendments of 1980), and related federal, State and local laws and regulations;
c. Materials regulated under the Toxic Substance Control Act, 15 U.S.C. Section 2601 et seq., as amended, and related federal State of California, and local laws and regulations, including the Califomia Toxic Substances Account Act, California Health and Safety Code Section 25300 et seq.;
d. Materials regulated under the Comprehensive Environmental Response, Compensation and Liability Act,42 U.S.C. 9601, et seq., as amended, and regulations promulgated thereunder; and
e. Materials regulated under any future additional or substitute federal, State or local laws and regulations pertaining to the identification, transportation, treatment, storage or disposal of toxic substances orhazardous waste.
If two or more governmental agencies having concurrent or overlapping jurisdiction over hazardous waste adopt conflicting definitions of "hazardous waste", for purposes of collection, transportation, processing and/or disposal, the broader, more expansive definition shall be employed for purposes of this Agreement. Notwithstanding any provision of this definition to the contrary, for purposes of this Agreement, Universal Waste shall not be considered Hazardous Waste.
Household Hazardous Waste means household chemicals, pesticides, batteries, motor oil and other petroleum-based products, paint, products containing mercury, E-Waste categorized as Universal V/aste (such as television tubes or monitors) and antifreeze.
Hazardous V/aste Facilitv means a facility which holds all required permits and approvals for acceptance of Hazardous Waste, and which disposes of or processes Hazardous Waste in accordance with Applicable Law.
Holiday means a day officially designated as either a State holiday or Federal holiday, or both.
Municipal Code means the City of Shafter Charter and Municipal Code, as amended from time to time.
Organic Waste means Food V/aste, Green'Waste and food-soiled paper waste that is mixed in with Food V/aste.
Organic V/aste Facility means an organic waste recycling facility as defined in applicable regulations of the California Department of Resources Recycling and Recovery.
Processinq Facility means a facility or facilities for sorting andlor processing commingled or source separated Recyclable Materials and/or Refuse.
Rates means the fees and charges imposed on Customers as set forth in Exhibit "8", incorporated by this reference.
Reasonable Business Efforts mean those efforts a reasonably prudent businessperson would expend under the same or similar circumstances in the exercise of such person's business judgment, intending in good faith to take steps calculated to satis$' the obligation which such person has undertaken to satisfu; provided that such person would not incur a financial loss (other than time expended or unless otherwise compensated for such efforts herein) by reason of having expended or expending such efforts.
Recyclable Materials mean materials which have been discarded, thrown away or abandoned by the generator or owner thereof and are commonly collected in recycling programs in California, including, but not limited to:
newsprint
comrgated material
high-grade paper and mixed paper
glass
aluminum cans
tin cans
steel and other types of scrap metals
PET polyetþlene terephthalate containers ("PET") marked "1" as of the date hereof
high density polyetþlene containers ("HDPE") marked "2" as of the date hereof low density polyetþlene containers ("LDPE") marked oo4" as of the date hereof
California redemption containers
ferrous metals
non-ferrous metals
white paper
mixed paper
telephone books
This list may be expanded to include any other material for which a recycling market or process is developed and which material is designated by CITY to constitute Recyclable Material during the term of this Agreement. Notwithstanding any other term or provision of this Agreement to the contrary, materials shall be deemed to constitute solid waste within the meaning of California Public Resources Code Section 40191, and regulated accordingly, whether or not said materials are identified on the foregoing list or may be potentially recyclable, in all cases where the material is mixed or commingled with other types of solid waste, or where a fee, charge, or other form of consideration, regardless of amount, is directly or indirectly solicited or received from the generator in exchange for collection, removal, transportation, storage, processing, handling or disposal services ("fee for service" recycling), whether or not arranged by or through a subcontractor, broker, agent, or affiliate of the provider of such service. As used herein, "generator" includes, without limitation, a property owner, occupant, or his/her contractor who generates waste.
Refuse shall mean Solid Waste, other than Recyclable Material, C&D Debris, Organic Waste and Green Waste to the extent other provisions of this Agreement discuss collection and disposal of such materials.
Residential Premises means and includes all single family, duplex or multi-family residential sites located within the Franchise Area.
Self-Haul means the transport of Refuse or Recyclable Materials from Residential Premises, where the waste being generated is taken directly to an authorized Processing Facility, Composting Facility or Disposal Facility. The transport must be accomplished by the Customer or person or entity that generates the Refuse, Organic Waste or Recyclable Materials and may not be transported by a company, agent, or other third party hired for such use.
Solid Waste means and includes all forms of residential and commercial waste generated within City limits and intended for disposal. Solid Waste as defined in California Public Resources Code, Section 40191and regulations promulgated thereunder and without limitation includes all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid or semisolid wastes, and other discarded solid and semisolid wastes. Excluded from the definition of Solid V/aste are Excluded Waste, Recyclable Materials, Organics, Green Waste, and C&D Debris if other provisions of this Agreement discuss collection and disposal of such materials.
Special 'Waste means any waste matter which is a Hazardous Waste, or which requires special handling or processing, including those items set forth on Exhibit "C" attached to this Agreement and incorporated by this reference.
Universal Waste means any waste matter which the State of California classifies as "universal waste," including but not limited to items and materials listed in 22 CCR Section 6626I.9, as it may be amended, as well as any items listed below not classified by the State of California as "universal waste." Universal Waste includes, but is not limited to, the following:
E-Waste
Batteries (except automobile batteries)
Thermostats
Lamps with fluorescent tubes, high intensity discharge lamps, sodium vapor lamps, and other lamps with hazardous waste characteristics
Cathode ray tubes
Aerosol cans
Mercury-containing items, including light switches, pressure gauges, and thermometers Appliances, devices, and other objects containing electronic components, including (but not limited to) computers, computer monitors, cellular telephones, copiers, fax machines, DVD players, VCR's, and televisions
Prescription and non-prescription drugs, not including controlled substances
2. GRANT OF EXCLUSIVE CONTRACT
As except as otherwise provided in this Agreement, CITY grants to CONTRACTOR during the term of this Agreement the exclusive right and privilege to collect and transport to a Disposal, Processing, Green Waste or Organic Waste Facility (as applicable) Solid Waste, Recyclables, Green Waste, and Organic Waste produced, generated, kept and/or accumulated at Residential Premises within the Franchise Area as that areamay exist at any time during the term of this Agreement.
2.1 Continuation Riehts
Notwithstanding any other provision of this Agreement, CONTRACTOR's rights to collect and transport Solid Waste shall be non-exclusive to the extent that third-party solid waste haulers have continuation rights pursuant to Public Resources Code Section 49520. Territory which is annexed to the CITY and included within the Franchise Area in CITY's sole discretion and for which an existing solid waste or construction debris collection and disposal franchise, agreement, license, or permit was granted by another public entity may continue to be served pursuant to such franchise, agreement, license subject to the provisions of Public Resources Code Section 49520 et seq., and the provisions of this Agreement. CITY shall provide any solid waste hauler with continuation rights in an annexed area with notice of termination pursuant to Public Resources Code Section 49520 et seq. within six months of annexation to the Franchise Area of the territory in which the solid waste hauler has been operating.
CONTRACTOR understands and agrees that this Agreement is an exclusive franchise within the meaning of Public Resources Code Section49520. As such, CONTRACTOR shall not be entitled to continuation rights at the termination or expiration of this Agreement.
2.2 Other Exceptions to Franchise
2.2.1 Excepted Services. The following services are expressly excluded from this Agreement:
(a) The collection of Solid Waste from any Commercial Premises within the Franchise Area.
(b) The collection of Solid Waste from any location outside of the Franchise Area.
(c) Self-Haul of Solid Waste if and to the extent permitted in the Municipal Code. Customers cannot contract any portion of the Self Haul to any entity other than the CONTRACTOR.
(d) The discretionary collection of Solid Waste by CITY
2.2.2 Exempt Materials. The CONTRACTOR shall not have the exclusive right and privilege to collect the following materials. However, the granting of this franchise shall not preclude an owner, resident, or commercial entity from contracting for the categories of materials described below to be delivered to, collected and/or transported by the CONTRACTOR or others, provided that nothing in this Agreement is intended to or shall be construed to excuse any person from obtaining from the CITY any authorizationwhich is otherwise required by law:
(a) Recyclable Materials, Green Waste or Organic Waste donated or sold by Customers to any party of their choice.
(b) The CONTRACTOR's exclusive franchise in this Agreement shall not include govemmental entities if and to the extent the CITY has no legal power to include them in the exclusive franchise. The provisions of this Agreement shall not preclude or prohibit the CITY or any officer or employee thereof or any employee of the, County, State, or any governmental subdivisions thereof, from collecting, removing, and disposing of Solid'Waste from CITY, County, or State facilities.
3. CONSIDERATION
3.1 Franchise Fee
In consideration of this Agreement and the permit and franchise given CONTRACTOR under this Agreement, CONTRACTOR shall pay to CITY, as a franchise fee, fifteen percent (I5%) of CONTRACTOR's gross revenues from all operations in the Franchise Area within the municipal boundaries of the CITY pursuant to this Agreement for each monthly period, exclusive of payments received by CONTRACTOR or Affiliated Companies from the sale of Recyclable Material, Organic Waste or Green Waste and revenue received from the disposal of Refuse ("Franchise Fee"). For purposes of this Agreement, the term "gross revenues" shall be dehned to include all revenues received by CONTRACTOR minus pass-through costs incurred at disposal or processing facilities used or directed to be used. Contractor and City agree the Franchise Fee is a negotiated amount that is reasonably related to the value of the rights granted to Contractor under this Agreement, as determined through good-faith negotiations. City may use the Franchise Fee for any lawful purpose. CITY may adjust the Franchise Fee from time to time, provided that if CITY increases the Franchise Fee, CONTRACTOR may increase its rates by the amount necessary to pass through the increase in the Franchise Fee.
3.2 Reimbursement of City's Cost to Develop and Negotiate Franchise Agreement In addition to the other consideration described in this Agreement, CONTRACTOR shall, within thirty (30) days of the execution of this Agreement, pay CITY the sum of Ten Thousand Dollars ($10,000) to offset CITY's costs in evaluating solid waste service currently being provided to CITY, develop this Agreement, and negotiate this Agreement.
3.3 Payments in Lieu of Other Taxes
All sums payable by CONTRACTOR to CITY under this Agreement shall be in lawful money of the United States and shall be in lieu of any license tax which might otherwise be imposed by CITY for the privilege of CONTRACTOR conducting its business under this Agreement in CITY, other than any business license tax imposed by CITY pursuant to the Municipal Code.
4. CONTRACTOR RESPONSIBILITY
CONTRACTOR agrees to perform all of its obligations under this Agreement for the term of this Agreement. CONTRACTOR shall furnish all of the labor and equipment necessary for the collection, processing and disposal of all Solid Waste subject to the terms, conditions and provisions ofthis Agreement. CONTRACTOR represents thatithas the professional and technical personnel required to perform the services in confonnance with such terms, conditions and provisions of this Agreement. CONTRACTOR shall perform all services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of Califomia.
5. TERM OF AGREEMENT
The initial term of this Agreement shall commence on July l, 2022 (the "Effective Date"), and shall expire as of 1 I :59 p.m. on December 31, 2032. However, at the CITY's election, the term of this Agreement may be extended for two (2) additional five-year extension terms. The CITY may exercise such extension term with written notice to CONTRACTOR at least onehundred and eighty (180) days prior to the expiration of the then-current term.
Notwithstanding the foregoing, if at any time during the term of this Agreement, CITY's diversion rate with respect to the Solid Waste controlled by this Agreement has, for any consecutive six-month period or one calendar year, fallen below the minimum diversion rate required by the State of California, the Parties shall mutually work together to assess diversion programs within the Franchise Area, develop new or expanded programs and take other actions necessary to meet State diversion requirements. If these efforts have not remedied the diversion rate within 180 calendar days of implementation, the City may terminate this Agreement in its option. This does not limit the City's other remedies under this Agreement.
6. SCOPE OF SERVICES
6.1 General
CONTRACTOR shall provide Refuse, Recyclable Material, Green'Waste and Organic Waste collection, transportation, processing and disposal services within the Franchise Area in accordance with the terms of this Agreement. CONTRACTOR shall not be required to provide such collection, transportation, processing and disposal services for Special or Hazardous 'Waste under this Agreement, except to the extent provided herein. CONTRACTOR may provide such services for Special or Hazardous'Waste if contracted to do so by Customers under separate written contracts negotiated between CONTRACTOR and the Customer generating such Special or Hazardous Waste, provided that CONTRACTOR obtains all necessary permits and performs in accordance with Applicable Law.
CONTRACTOR shall provide all Containers to be used by Customers for the deposit of Solid Waste at its sole cost and expense; provided that, upon approval by CONTRACTOR, a Customer may provide its own compactor for such purposes. Unless otherwise approved by CITY, CONTRACTOR's Containers shall be of the sizes set forth in the Rates. CONTRACTOR shall maintain all Containers in good condition and repair, except that it is the customer's responsibility to keep such Containers clean. CONTRACTOR's Containers shall be in colors as required by SB 1383 Regulations and approved by CITY, with different colors for Refuse, Recyclables, and Organic Waste. CONTRACTOR shall include a text and pictorial summary of items, as required by SB 1383 Regulations and subject to CITY's reasonable approval, that may be deposited into Containers on each Container. CONTRACTOR shall replace or repair any such Containers not in good condition at its sole cost and expense; provided, however, that if a Container is damaged or destroyed through the fault or negligence of the occupants of the Residential Premises to which it was supplied, CONTRACTOR, with CITY's written consent, may recover the costs of repair or replacement from the person who was responsible for the damage or destruction.
While engaged in activities authorized or required by this Agreement, CONTRACTOR's employees and agents shall be attired in suitable and acceptable uniforms mutually approved by CITY and CONTRACTOR. All CONTRACTOR's employees shall make collections as reasonably quiet as possible and shall avoid unnecessary disturbance. CONTRACTOR and its employees shall not trespass or loiter on Customers' property and shall use due care in entering and exiting such property, using paved walks or surfaces where practicable. CONTRACTOR shall exercise due care when handling Containers and shall not cause the Containers to be thrown or dropped during collection services. CONTRACTOR's employees shall replace Containers upright once emptied and shall clean up any Solid Waste spilled during the collection process.
CONTRACTOR shall be responsible for any damage to any property if proven to be the result of the CONTRACTOR's vehicles exceeding the legal maximum weight limits of the State of California or the CONTRACTOR's negligent operation of the vehicles. CONTRACTOR shall be responsible for damage to public and private utilities, and shall repair or replace such damaged utilities, if proven, to the satisfaction of the CITY, to be caused by the inattention, carelessness or negligence of CONTRACTOR.
CITY reserves the right to construct any improvement or to permit construction in any street or alley which may have the incidental effect of preventing CONTRACTOR from driving an established collection route, in which event CONTRACTOR will adjust its route without cost adjustment therefor. Any route changes proposed by CONTRACTOR shall be submitted, in writing, for CITY approval at least sixty (60) days prior to the proposed date of implementation.
CONTRACTOR shall implement such route changes so that no Customer is left without collection services for more than six days. CITY reserves the right to conduct audits of CONTRACTOR's collection routes. Upon request, CONTRACTOR shall provide CITY with route maps detailing all collection routes.
6.2 Solid V/aste Service
6.2.I Refuse Service. CONTRACTOR shall, as frequently as negotiated with Customer but in no event less than once per week, collect the Refuse which have been compacted or otherwise placed, kept or accumulated in Containers at Residential Premises. Customers shall be billed at the Rates authorized in Exhibit "8". CONTRACTOR shall charge Customers only those Rates provided for in Exhibit "8". Following collection of Solid Waste from a Container, CONTRACTOR shall return the Container to its location with the lid closed.
6.2.2 Recycling Service. For Customers receiving Recyclable service, CONTRACTOR shall, as frequently as negotiated with Customer but in no event less than once every other week, collect the Recyclables which have been placed, kept or accumulated in Recycling Containers at Residential Premises. Customers or owners shall be billed at the Rates authorized in Exhibit "8". Following collection of Recyclables from a Container, CONTRACTOR shall return the Container to its location with the lid closed.
6.2.3 Organic Waste Service. For Customers receiving Organic Waste service, CONTRACTOR shall, once per week, collect the Organic Waste which has been placed at curbside by SFR Customers prior to the CONTRACTOR's normal weekly collection time.
Following collection of Organic V/aste from a Container, CONTRACTOR shall return the Container to its location with the lid closed. Customers or owners shall be billed at the Rates authorized in Exhibit "8".
6.2.4 Hours of Collection. Collection service at Residential Premises may not start earlier thanT:O0 a.m. or continue after 7:00 p.m., except as is specifically approved in writing by the City Manager or his designee.
6.2.5 Commineline Solid Waste. In the event a Customer commingles Refuse, Organic'Waste or Green'Waste with Recyclables for Recyclable collection or coÍìmingles Refuse or Recyclables with Organic Waste for Organic Waste collection, CONTRACTOR may treat such collection as a Refuse collection subject to the applicable Refuse Collection Rates.
Containers. CONTRACTOR shall provide all customers with Collection Containers that comply with the Container color requirements specified in this Section or as otherwise specified in the SB 1383 Regulations,l4 CCR Section 18982, or other Applicable Law. All Containers shall approximately 95-gallons and shall be labeled in accordance with the requirements of SB 1383 Regulations.
CONTRACTOR shall obtain the CITY's written approval of Container specifications, colors, and labeling before acquisition and labeling occurs.
6.2.6 Transition. Notwithstanding Sections 6.2.1 through 6.2.3 and Section 6.2.6, CONTRACTOR may provide commingled Refuse, Recyclable Material and Organic Waste with the Containers utilized prior to the Effective Date in the same manner and subject to the same limitations as provided for by CITY prior to the Effective Date. CONTRACTOR shall be compensated for such service at the "Interim Collection Rates" set forth in Exhibit "8".
CONTRACTOR shall transition all Customers receiving curbside service prior to the Effective Date to service as set forth in Sections 6.2.1 through6.2.3 with new Containers in compliance with Section 6.2.6 on or before July 31, 2022. CONTRACTOR shall transition all Customers receiving alley service prior to the Effective Date to service as set forth in Sections 6.2.1 through 6.2.3 with new Containers in compliance with Section 6.2.6 as soon as possible and within any deadlines established by CalRecycle. Moreover, CONTRACTOR shall transition at least two hundred Customers receiving alley service per month. CONTRACTOR shall notiff CITY upon transition of each Customer and such Customer shall be billed for service as set forth in Exhibit "8" beginning on the next calendar month after transition.
6.3 E-Waste
CONTRACTOR shall conduct at least two annual collection events for E- 'Waste that are open to the public scheduled no less than six months on a Saturday that are open for at least three hours. These events may coincide with other collection events open to the public. E-Waste shall be collected in separate vehicles from other Solid Waste and shall be processed at a facility separate from any Solid Waste Processing or Disposal facility. E-Waste shall be processed to recycle, reuse, and otherwise divert from disposal facilities these materials to the greatest extent practical.
To the extent that E-Waste is disposed of, they shall be disposed of in compliance with all applicable laws and regulations. There shall be no limit to the amount of E Waste that may disposed of at the collection events by Customers, which shall be collected and disposed of without charge to Customers.
6.4 Bulky'Waste
CONTRACTOR shall conduct at least two annual collection events for items classified as bulky waste that are open to the public scheduled no less than six months on a Saturday that are open for at least three hours. CONTRACTOR shall also provide special collections services for Bulky V/aste items to all Customers upon request, which shall be collected at no charge at least once per week and placed curbside for collection. Contractor shall receive and respond to all requests for Bulky Waste pickups and instruct those requesting the service to place materials in the public street in a manner that does not impede pedestrian or vehicular traffic. CONTRACTOR agrees to use commercially reasonable efforts to avoid landfilling or disposal of Bulky Waste items if reasonably feasible to reuse or recycle them.
6.5 Diversion
6.5.1 No Commingling. CONTRACTOR shall not commingle, in the vehicles or otherwise, any Refuse with any Recyclable Materials or Organic Waste, or any Refuse, Recyclable Materials or Organic Waste with each other when collected by CONTRACTOR, unless otherwise specifically authorized in writing by CITY. CONTRACTOR shall not be deemed to have violated this Section where such materials were commingled prior to collection by CONTRACTOR.
6.5.2 Processins
(a) Facilit)' Selection. CONTRACTOR shall transport and deliver all Recyclable Materials collected within the CITY to a Processing Facility, all Green V/aste Collected within the CITY to a Green V/aste Facility or Composting Facility and all Organic Waste Collected within the CITY to an Organic Waste Facility or Composting Facility, provided that Recyclable Materials may hrst be delivered to a Processing Facility for separation from Refuse.
If public health, safety andlor fiscal interest require, or compliance with Applicable Law necessitates, the CITY may designate an alternate Facility at any time during the term of this Agreement. Prior to designating an alternative Facility, CITY shall give CONTRACTOR at least thirty (30) days advance written notification of its intention to do so, except in cases of emergency resulting in an imminent threat to public health and safety. As to any alternate Facility designation by the CITY which results in increased expense to CONTRACTOR, CONTRACTOR shall be entitled to recover through a coffesponding rate adjustment the full amount ofthe additional expense. In that event, the rate adjustment shall be implemented no later than thirty (30) days from the effective date of the designation and shall be applied retroactive to the date the CONTRACTOR commenced use of the alternative Facility. Notwithstanding the foregoing, CONTRACTOR shall not be entitled to a rate increase following the CITY's exercise of any alternative Facility designation rights hereunder where CITY's decision to designate an alternative Facility results solely from the closure of a Facility owned and operated by CONTRACTOR. (b) V/eiehine and Record Requirements. CONTRACTOR shall ensure that, at a minimum, all materials shall be weighed upon delivery to a Processing Facility, Green 'Waste Facility, Organics Facility or Composting Facility, and all weight and related delivery information recorded. CONTRACTOR shall make arrangements with the Processing or Composting Facility to allow the CITY to review during such facility's normal operating hours any recordings or video of tipping. CONTRACTOR shall ensure that all scales shall be weigh master certified and regularly maintained to ensure reliability and continued functioning. (c) Recyclable Materials Spesifications. CITY is not responsible for the quality of Recyclable Materials delivered to or rejected by the Processing Facility. CITY makes no warranty, either express or implied, with respect to the Recyclable Materials, including but not limited to warranties of merchantability and fitness for a particular purpose. (d) Disposal of Residue. CONTRACTOR shall dispose of any and all residue remaining from the processing of Recyclable Materials and any non-processable materials in accordance with Applicable Law.
6.5.3 Compliance with Garbage and Refuse and C&D Diversion Ordinances.
CONTRACTOR shall comply with the requirements of the City's Garbage and Refuse and C&D Debris diversion ordinances, as such ordinances may be adopted or amended, and shall assist customers with compliance by diverting solid waste and C&D Debris from the landfill to the maximum extent feasible and by providing receipts for all materials collected.
6.5.4 Marketing CONTRACTOR shall market all Recyclables collected within the CITY to provide for the maximum waste diversion. Green Waste shall be processed to ensure diversion credit to the maximum extent feasible.
6.5.5 AB 341, AB 1826 & SB 1383 Compliance. CONTRACTOR shall cooperate with CITY in enforcing mandatory Residential Recycling and Organic'Waste efforts as adopted by AB 341 (2012), codified in Chapter 12.8 (commencing with Section42649) of Part 3 of Division 30 of the Public Resources Code, AB 1826 (2014), codified in codified in Chapter 12.9 (commencing with Section 42649.8) of Part 3 of Division 30 of the Public Resources Code, and regulations promulgated by CalRecycle in response to SB 1383 in Chapter 12 (Short-Lived Climate Pollutants) of Division 7 of Title 14 of the California Code of Regulations ("SB 1383 Regulations"), as they may be amended or implemented. CONTRACTOR shall provide any notices or information reasonably requested by CITY in enforcement of such requirements.
6.5.6 Vy'aivers. CONTRACTOR shall assist the CITY in the initial review of waiver applications under 14 CCR Section 18984.1 1. CONTRACTOR shall be responsible for the distribution, collection and evaluation of waiver applications as appropriate and provide the City a recommendation to accept or reject waiver requests. CONTRACTOR shall provide Collection services for customers not subject to waiver.
6.6 Anti-Scavenging Laws
CONTRACTOR shall cooperate with CITY in enforcing anti-scavenging laws.
6.7 Collection on Holidays
If the day of collection on any given route falls on a Holiday or a day on which the Disposal Facility utilized by CONTRACTOR is closed, CONTRACTOR may provide collection service for such route on the next workday following such holiday or Disposal Facility closure day or shall provide such collection service on such Holiday or Disposal Facility closure day, except that CONTRACTOR shall never provide collection service (unless in case of emergency where such pickup is authorized by CITY) on New Year's Day, Thanksgiving Day or Christmas Day, with the exception of those Customers requesting service on an as-needed basis.
7. OTHER SERVICES OF CONTRACTOR
7.1 Co-Operation
CONTRACTOR shall cooperate with CITY on any and all customary and reasonable waste composition studies, and as required by SB 1383 Regulations or other applicable laws, at no additional cost to CITY.
7.2 Route Review, Waste Evaluations and Contamination Minimization CONTRACTOR shall, at its sole expense, conduct annual route reviews each calendaryear for Prohibited Container Contaminants in Containers in a manner that is deemed safe by the CONTRACTOR, is approved by CITY, and is conducted in a manner that results in all routes being reviewed annually pursuant to 14 CCR Section 18984.5. CONTRACTOR shall visually inspect the contents of a reasonably representative number of Containers, as directed and approved by CITY.
CONTRACTOR shall develop a route review methodology that complies with the requirements of 14 CCR Section 18984.5(b). CONTRACTOR shall submit its proposed route review methodology for the coming year to the City no later than April I of each year describing its proposed methodology for the calendar year and schedule for performance of each route's annual review. CONTRACTOR's proposed route review methodology shall include its plan for Container inspections and shall also include its plan for prioritizingthe inspection of Customers that are more likely to be out of compliance. CITY shall review, comment on, and approve the proposed methodology. CONTRACTOR may commence with the proposed methodology upon approval. If CITY notifies CONTRACTOR that the methodology is inadequate to meet the requirements of SB 1 3 83, Contractor shall, at its sole expense, revise the methodology and, after obtaining CITY approval, conduct additional route reviews, increased Container inspections, or implement other changes using the revised procedure.
CONTRACTOR shall document Contamination with still pictures or video and will noti$ the Customer of the Contamination by following the applicable procedures specified in 14 CCR Section 18984.5. CONTRACTOR shall perform the recordkeeping requirements for Container minimization in 14 CCR Section 18984.6. CONTRACTOR may, at its discretion Collect the Container as Recyclable Materials, Organic Materials, or as Refuse.
CONTRACTOR shall conduct waste stream audits in accordance with 14 CCR Section 18984.5 and shall analyze the quantity and composition of the waste stream for each Customer and shall recommend practices and techniques for improving the diversion rate of each Customer's waste stream.
7.3 Hazardous Vy'aste
CONTRACTOR shall use Reasonable Business Efforts to ensure the delivery of Hazardous Waste to aHazardous Waste Facility, and to screen, identiS and prevent against the disposal of Hazardous Vy'astes at any Processing Facility, Composting Facility or Disposal Facility used by CONTRACTOR under this Agreement. If CONTRACTOR inadvertently delivers materials to any Processing Facility, Composting Facility or Disposal Facility which comprise Hazardous Waste and CONTRACTOR cannot or fails to remove it, CONTRACTOR shall arrange for its proper disposal in accordance with Applicable Law. CONTRACTOR shall use Reasonable Business Efforts to recover the costs of such disposal from the Customer which generated such Hazardous Waste, if the Customer can be identified, and charge such cost to such Customer. If CONTRACTOR delivers Hazardous Waste to any Processing Facility, Green Waste Facility, Organic Waste Facility or Disposal Facility, CONTRACTOR shall promptly notiff the City, the local fire department, and the Kern County Health Department, providing the name, address, and telephone number of the collector and the facility or premises from which the Hazardous 'Waste was collected, the type and quantity of the Hazardous'Waste, and the location and method of final disposition of Hazardous W'aste.
7.4 Procurement of Recovered Organic Waste
CONTRACTOR shall serve as one direct service provider for the City to achieve its annual recovered organic waste procurement target. As a service provider, CONTRACTOR shall specifically facilitate and commit markets for applying procured compost and mulch to meet the recovered organic waste procurement target under 14 CCR sections 18993.1-18993.2 at no cost to the City. The targeted share of the procurement requirement CONTRACTOR assumes shall be 30o/o of organics tonnage collected. Procurement shares shall be reviewed by the City and CONTRACTOR at the end of every calendar year. CONTRACTOR does not assume procurement requirements for any material beyond compost and mulch. CONTRACTOR understands that its ability to act as a direct service provider impacts the City's procurement compliance and sustainability of this franchise agreement.
7.5 Notification of New Services
CONTRACTOR shall use Reasonable Business Efforts to ensure that Customers are informed in a timely manner about new service programs or the introduction of new elements in services required by the CONTRACTOR and approved by the City. CONTRACTOR shall inform Customers of such changes through a public awareness plan, which shall include direct mailings and/or local advertising, prior to the implementation of such changes.
7.6 Education and Outreach
CONTRACTOR shall use Reasonable Business Efforts to outreach and educate the public on the importance of recycling and separating Solid Waste in order to achieve maximum waste diversion in accordance with 14 CCR Sections 18985.1-18985.2. CONTRACTOR shall develop and implement a program of educational presentations and materials concerning the importance of recycling and diversion, proper techniques for Solid V/aste disposal and recycling, and options for the disposal of Hazardous Waste. The educational program shall include a well-defined component aimed at capturing Organic Waste, and Green'Waste generated by landscaping services and contractors, including information for Customers on how and why Organic V/aste and Green Waste should be collected and diverted. All community relations and promotional materials and related news releases shall be developed at CONTRACTOR's sole cost and expense. A new educational program shall be prepared for each fiscal year, and submitted to CITY's City Manager, for approval by CITY's City Council, no later than April lst. CONTRACTOR shall perform the recordkeeping requirements related to compliance with education and outreach requirements under 14 CCR Section 18985.3.
7.7 SB 1383 Monitorine and Inspections
CONTRACTOR shall perform route reviews, compliance reviews, and inspections and reviews in accordance with 14 CCR Section 18995.1.
'When compliance reviews are performed by CONTRACTOR, CONTRACTOR shall provide City-approved educational materials, in response to violations. CONTRACTOR shall provide these educational materials to the non-compliant Customers within two (2) working days of determination of non-compliance or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or route review. CONTRACTOR shall document the non-compliant Customers and the date and type of education materials provided and report such information to the CITY. The CITY shall be responsible for subsequent enforcement action against the Customer.
CONTRACTOR shall maintain a computer database of all oral and written SB 1383- related non-compliance incidents reported to CONTRACTOR from Customers or other persons, and documentation related to route reviews, compliance reviews, inspections, and enforcement.
7.8 Edible Food Recovery
CONTRACTOR will provide information or documentation requested by the CITY in support of Organic V/aste or Edible Food Recovery Capacity Planning studies. CONTRACTOR shall report to the City Commercial Edible Food Generators that fail to comply with 14 CCR $ 18991.1 - 18991.5.
7.9 Recordkeepine and Reportins
CONTRACTOR shall prepare and maintain the records identified in 14 CCR Section 18995.2(Ð and assist CITY in reporting information about implementation and compliance with SB 1383 Regulations and in accordance with Article l3 of Chapter 12 of Title 14 of the CCR.
8. BILLING, PAYMENTS AND RATES
8.1 Direct Billine bv City
CITY shall bill all Customers at the approved Rates. Billings may be made monthly for service recipients, as determined by CITY. CITY shall include in its bills to service recipients any applicable fees imposed by action of the City Council, including, but not limited to the Franchise Fee. CITY shall pay CONTRACTOR the amounts collected, less the Franchise Fee and any other fee due to the CITY. CONTRACTOR shall noti$ CITY of any additional charges for special hauls and/or any other adjustments to amounts billed, inclusive of credits for absences, on a daily basis as occurs. Such charges received on or before the 15th day of the month shall be billed by CITY at the time of the next billing date.
The CITY shall remit collections to CONTRACTOR following their receipt from customers. CITY shall be entitled to retain from collections the amount for Franchise Fees and any other City fees. The CITY may adjust the billing fee from time to time and shall concurrently adjust the Rates.
The CITY will provide CONTRACTOR with a bi-monthly listing of all customers billed, sorted by address and service level, and the amount billed in a form as mutually agreed to by both parties. CONTRACTOR will verif' the list to confirm each address where service is performed.
In the event that CONTRACTOR identifies addresses where service is being performed and not properly billed, CITY agrees to correct and commence billing to reflect services being provided by CONTRACTOR.
In the event thatanerror is discovered in the amount remitted to CONTRACTOR by CITY, CITY shall make the appropriate adjustment payment within thirty (30) days of confirmation of the error.
8.2 Rates
CONTRACTOR and CITY shall charge Customers the Rates set forth in Exhibit "B" for all services provided under this Agreement. In the event that a service does not include a Rate in Exhibit o'8", CONTRACTOR shall not provide such service until a Rate is established by CITY.
CONTRACTOR understands and agrees that any new Rate may require CITY to comply with Proposition 218 and other applicable law.
8.2.I Landfill Tippine or Gate Fees
The Parties acknowledge and agree that the Rates set forth in Exhibit "8" include compensation to CONTRACTOR for any applicable landfill tipping or gate fees, except as set forth therein. Notwithstanding any provision in this Agreement to the contrary, CONTRACTOR shall not be entitled to receive from CITY, or any Customer, a separate or additional payment for landfill tipping or gate fees. In addition to other increases as provided herein, CONTRACTOR may increase the Rates set forth in Exhibit "B" in amounts necessary to recover increased landfill tipping or gate fees, provided that CONTRACTOR provides written notice to CITY in advance of the increase and provides documentation substantiating the claimed landfill tipping or gate fee increase, any offset against this increase due to regular inflationary Rate adjustments, and the amount of the proposed increases to the Rates. CONTRACTOR further understands and agrees that CITY may be required to comply with Proposition 218 and other applicable law granting rate increases. CITY shall not be in breach of this Agreement if its residents lawfully delay or prevent CITY from raising or imposing the rates. In such event, CITY and CONTRACTOR shall meet in good faith to consider altematives and options, which may include permitting CONTRACTOR to terminate the Agreement without cause.
8.2.2 Annual Adiustment
In addition to other increases as provided herein, the maximum Rates may annually be adjusted, up or down, using the methodology set forth in Exhibit ooE." The first consideration for an annual increase will take place for the fiscal year commencing July 1, 2023. CONTRACTOR shall make arate adjustment request for each fiscal year no later than the March lst prior to that fiscal year. Subject to the limits contained in this paragraph, CITY shall grant the adjustment if CONTRACTOR is in compliance with every term of this Agreement. A grant of a rate adjustment shall be by resolution or ordinance following a public hearing concerning the proposed increase.
No adjustment granted by CITY shall exceed ten percent (10%).
The effective date of each annual adjustment granted by CITY shall be July 1, unless the CITY requires more time to evaluate the information provided by CONTRACTOR. However, CONTRACTOR understands and agrees that CITY may be required to comply with Proposition 218 and other applicable law granting rate increases. CONTRACTOR shall, at its own cost, send notices to customers at least thirty (30) days prior to any adjustments.
CITY shall not be in breach of this Agreement if its residents lawfully delay or prevent CITY from raising or imposing the rates. In such event, CITY and CONTRACTOR shall meet in good faith to consider alternatives and options, which may include permitting CONTRACTOR to terminate the Agreement without cause.
9. COLLECTION EQUIPMENT AND PRACTICES
9.1 Number and Maintenance of Vehicles
CONTRACTOR shall provide an adequate number of vehicles and equipment for the collection, disposal and transportation services for which CONTRACTOR is responsible under this Agreement. All vehicles shall be registered with the Department of Motor Vehicles of the State of California, shall be kept clean, safe, and in good repair, shall keep all collected materials covered during transportation. Such vehicles shall be kept and maintained free from any leaks, including, without limitation, leaks of hydraulic oil, brake fluid, engine oil, fuel, or transmission fluid. CONTRACTOR's name, phone number and vehicle number shall be visibly displayed on its vehicles in letters and figures no less than four inches (4") high.
9.2 Alternative-FuelVehiclesRequired
In providing services under this Agreement, CONTRACTOR shall comply in all respects with: (i) any applicable rule or regulation of the San Joaquin Valley Unified Air Pollution Control District; (ii) the "Final Regulation Order" adopted by the California Air Resources Board regarding diesel particulate matter control measures for solid waste collection vehicles, including all implementing regulations, as they may be amended; and (iii) all other applicable rules, statutes, orders, or other forms of mandate issued or adopted by a govemment agency with jurisdiction over air quality. Upon request from CITY, CONTRACTOR shall provide records of all collection vehicles in service in the CITY, including fuel source and engine and chassis numbers. In addition to any indemnification obligations set forth elsewhere in this Agreement, CONTRACTOR shall defend, indemniff, and hold harmless CITY against any fines, penalties, losses, or claims arising out of CONTRACTOR's failure to comply with this paragraph.
9.3 Clean Collection Practices
CONTRACTOR shall not cause or permit the private property or CITY streets or property to be littered with trash or other debris because of CONTRACTOR's activities under this Agreement. CONTRACTOR shall clean up any such trash or debris in the immediate vicinity of any Container and/or storage areathat results from collection services under this Agreement. In the event of repeated litter not caused by CONTRACTOR directly, CONTRACTOR shall first notiS the Customer and, if litter continues, CONTRACTOR may request the CITY's assistance to rectiff the situation.
10. PUBLIC ACCESS TO CONTRACTOR
10.1 Local Office Regular Hours
CONTRACTOR'S office hours shall be, at a minimum, from 8 a.m. to 4 p.m. Monday through Friday, except Holidays. A representative of CONTRACTOR shall be available during offrce hours for communication with the public at CONTRACTOR'S principal office. The representative shall, at a minimum, provide route maps and service information to the public.
CONTRACTOR shall also maintain an automated customer service telephone number for use during other than normal business hours. CONTRACTOR shall respond to customer phone calls within one (1) business day.
10.2 Service Complaints and Dispute Resolution
All billing and service complaints received by CITY from Customers shall be directed to CONTRACTOR. CONTRACTOR shall record all complaints received (including date, name, address and nature of complaint). CONTRACTOR shall make all such records available for inspection by the City Manager or his designee during normal business hours, upon demand by the City Manager. CONTRACTOR agrees to use its best efforts to resolve all such complaints within the business day next following the date on which such complaint is received.
CONTRACTOR shall document the action taken or other disposition made of each complaint. Such report shall be provided to CITY within forty-eight hours of a request.
If CONTRACTOR misses a scheduled pickup, it shall provide a special pickup within twenty-four Q$ hours (Sundays and Holidays excepted) of notice thereof to CONTRACTOR at no charge to Customer or CITY.
The Customer making the complaint may appeal CONTRACTOR's resolution to the City Manager within 30 days of the initial complaint. CONTRACTOR shall promptly make this appeal right known to the Customer making complaints. The City Manager shall make a determination within 7 days of receiving the appeal, and provide a written copy of the resolution to CONTRACTOR and the Customer appealing CONTRACTOR's complaint resolution.
In the event that the City Manager determines that CONTRACTOR has failed to render performance in accordance with the requirements ofthis Agreement, he or she may assess damages against CONTRACTOR and reduce payment otherwise due to CONTRACTOR accordingly.
CONTRACTOR shall in all cases be given a reasonable opportunity to remedy the defect in performance prior to such assessment of damages.
10.3 Customerlnformation
CONTRACTOR shall not market, sell, convey, donate or disclose to any person or entity any list with the names or addresses of Customers or information regarding the composition or content of Customers' waste unless authorized or required by Applicable Law, the CITY or a court of competent jurisdiction.
1I. OWNERSHIP OF SOLID WASTE
All Solid Waste collected pursuant to this Agreement shall be the property of the Customer until placed in a Container for collection pursuant to this Agreement. Except as provided in the next paragraph, ownership of the Solid Waste shall transfer to CONTRACTOR once it is deposited in Containers set out at the collection point, or CONTRACTOR's vehicles. CONTRACTOR is granted the right to collect, transport, process, recover, recycle, retain, market, dispose of or otherwise use any such Solid'Waste, or any part thereof, in any fashion, and retain all benefits or profits resulting therefrom. All Solid Waste shall be collected, transported, and disposed of in accordance with federal, state and local law.
In consideration of the foregoing provisions with respect to ownership of Solid Waste, CONTRACTOR shall maintain all records required by state and federal law regarding source generation, recycling and disposal of said materials, and in a form acceptable to CITY, and shall provide same to CITY upon request, but not less than once per year.
12. INSURANCE, INDEMNIFICATION AND PERFORMANCE BOND
l2.l Indemnification of CITY
I2.I.I General Indemnification of CITY
CONTRACTOR agrees that it shall indemniff and hold harmless CITY, its offrcers, offtcials, employees, agents, assigns and any successor or successors to CITY's intetest, from and against any and all loss, liability, penalties, claims, demands, actions or suits, of every kind and description, whether or not involving a third party claim, arising or resulting from: (i) the alleged acts or omissions of any obligation or duty of CONTRACTOR under this Agreement or under applicable law; (ii) the failure of CONTRACTOR, its agents, employees and/or subcontractors, to comply in all respects with the provisions and requirements of this Agreement; (iii) any breach of any representation or warranty of CONTRACTOR contained in this Agreement; and (iv) any breach or violation of any covenant or other obligation or duty of CONTRACTOR under this Agreement or under Applicable Law. CONTRACTOR shall, upon demand of CITY, at CONTRACTOR'S sole cost and expense, defend with an attorney chosen by CITY to defend CITY, its officers and/or employees against any and all claims, actions or suits in any legal proceedings, (whether judicial, quasi-judicial, administrative or legislative in nature) brought against CITY, its officers andlor employees arising or resulting from those situations described in (i) and (ii) above. The indemnification and defense provided for under this section shall not be construed to limit the indemnity and defense set forth in the following subsection. This subsection shall survive the expiration of the period during which collection services are to be provided under this Agreement. Notwithstanding the provisions of this subsection, CONTRACTOR shall not be required to appear or act in any litigation based solely upon the negligent acts or omissions of CITY.
12.1.2 Indemnification of CITY Related to Waste Diversion Requirements To the extent permitted by Public Resources Code Section 40059.1, and to the extent noncompliance is caused by CONTRACTOR's breach of or noncompliance with a provision of this Agreement, CONTRACTOR agrees to protect and defend CITY, with counsel selected by CITY, and to indemniff and hold harmless CITY from and against all fines or penalties imposed by the California Department of Resources Recycling and Recovery ifthe diversion goals specified in the Public Resources Code are not met by the CITY with respect to the Solid V/aste collected by CONTRACTOR under this Agreement. Upon receipt from the California Department of Resources Recycling and Recovery of a stipulated order of noncompliance with the diversion goals, which is at least partially caused by CONTRACTOR's breach of or noncompliance with a provision of this Agreement, the CITY may require CONTRACTOR to provide a performance bond in the amount of Two Hundred Fifty Thousand Dollars ($250,000) until such time as compliance is attained.
If the CITY finds that additional programs are necessary to meet any required diversion goals, the CITY may require proposals for additional diversion programs to meet the diversion requirements. If necessary, CITY and CONTRACTOR shall enter into good faith negotiations, but if agreement regarding programs and/or rate adjustments cannot be reached, the matter shall be referred for non-binding mediation as set forth herein. If CITY and CONTRACTOR cannot reach agreement regarding programs andlor rate adjustments in order to meet required diversion goals, the CITY and CONTRACTOR shall refer the matter for binding arbitration to be resolved by an independent arbitrator mutually selected by the CITY and CONTRACTOR, the costs of which shall be borne equally by the CITY and CONTRACTOR. Both parties shall, in good faith and in writing, promptly provide the independent mediator or arbitrator with any and all information and documentation required or requested by the independent arbitrator in order to make its determination. The independent arbitrator shall make its determination based on the submissions of the parties, the provisions of this Agreement, its experience with similar services and disputes, and other factual determinations it may make regarding the matter in dispute. Such determination shall be made within thirty (30) days following such referral and shall be binding upon the Parties as though made a lawful amendment to this Agreement.
I2.I.3 Hazardous Waste Indemnification of CITY
CONTRACTOR shall indemnifr, defend with counsel approved by CITY, protect and hold harmless the CITY from and against all claims, actions, damages or liabilities paid, incurred or suffered by, or asserted against, the CITY arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any Hazardous V/aste at any place where CONTRACTOR delivers, stores, processes, recycles, composts or disposes of materials or wastes to the extent that such liabilities are caused by CONTRACTOR's negligence or willful misconduct. Nothing in this Section shall be construed to require CONTRACTOR to indemnifu the CITY for liabilities caused by the sole negligence of the CITY
12.L4 Environmental Indemnihcation of CITY
CONTRACTOR shall indemni$, defend with an attorney selected by CITY, protect and hold harmless CITY, its officers, officials, employees, agents, assigns and any successor or successors to CITY's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damages, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses (including but not limited to attomeys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, CITY or its officers, employees or agents arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any Hazardous W'aste at any place where CONTRACTOR stores or disposes of Solid Waste pursuant to this Agreement. The foregoing indemnity is intended to and shall be construed to operate as an agreement pursuant to Section 107(c) of the Comprehensive Environmental Response, Compensation and Liability Act, "CERCLA",42U.S.C. Section 9067(e) and California Health and Safety Code Section25364,to insure, protect, hold harmless and indemnifu CITY from liability.
The foregoing shall not apply to the extent that any costs and damages arise out of the active negligence or willful misconduct of CITY, its agents, employees, officers and contractors.
CONTRACTOR shall have an affirmative duty to select for disposal of CITY's solid waste only those landfill facilities which comply with state and federal law. The indemnification and defense provided for under this section shall not be construed to limit the indemnity and defense set forth in the preceding subsection.
This subsection shall survive the expiration of the period during which collection services are to be provided under this Agreement
Notwithstanding the provisions of this subsection, CONTRACTOR shall not be required to appear or act in any litigation based solely upon the negligent acts or omissions of CITY.
12.2 Insurance
CONTRACTOR shall obtain and shall require its subcontractors to obtain insurance of the types and in the amounts described below and satisfactory to CITY.
12.2.1 Commercial General Liability Insurance.
CONTRACTOR shall maintain time of occurrence based commercial general liability insurance or equivalent form with a combined single limit of not less than $2,000,000 per occuffence. If such insurance contains a general aggregate limit, it shall apply separately to the Agreement or be no less than two times the occurrence limit. Such insurance shall:
(a) Name CITY, its offrcials, officers, employees, agents, and consultants, as insureds with respect to performance of services under this Agreement. Such insured status shall contain no special limitations on the scope of its protection to the above listed insureds.
(b) Be primary with respect to any insurance or self-insurance programs covering CITY, its officials, officers, employees, agents, and consultants. (c) Contain standard separation of insureds provisions.
12.2.2 Business Automobile Liabilitv Insurance.
CONTRACTOR shall maintain business automobile liability insurance or equivalent form with a combined single limit of not less than $2,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.
12.2.3'Workers' Compensation Insurance.
CONTRACTOR shall maintain workers'compensation insurance with statutory limits and employers' liability insurance with limits of not less than $1,000,000 per accident.
12.2.4 Pollution Control Insurance.
CONTRACTOR shall purchase and maintain in force for the duration of the Agreement term insurance for pollution legal liability applicable to bodily injury; property damage, cleanup costs; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims; all in connection with any loss arising from the transporter's activity under this Agreement. Coverage shall be maintained in an amount of at least $1,000,000 per loss, with an annual aggregate of at least $2,000,000 for claims arising within the CITY. If coverage is written on a claims-made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Agreement, and that continuous coverage will be maintained or an extended discovery period will be exercised for a period of three years beginning from the time that work under this Agreement is completed.
12.2.5 Certificates/Insurer Rating/Cancellation Notice. (a) CONTRACTOR shall, prior to commencement of services under this Agreement, fumish to CITY properly executed certificates of insurance, and certified copies of endorsements, and policies if requested by CITY, which shall clearly evidence all insurance required in this Section. CONTRACTOR shall not allow such insurance to be canceled, allowed to expire or be materially reduced in coverage except on 30 days' prior written notice to CITY. (b) CONTRACTOR shall maintain such insurance from the time the services under this Agreement commence until the services are completed, except as may be otherwise required by this Section.
(c) CONTRACTOR shall place insurance with insurers having an A.M Best Company rating of no less than A:VIII and licensed to do business in California. (d) CONTRACTOR shall replace certificates, policies and endorsements for any insurance expiring prior to completion of the services.
12.3 Performance Bond
Prior to execution of this Agreement, CONTRACTOR shall deposit with CITY either a letter of credit or a performance bond (collectively referred to as the "Performance Bond") in the amount of $50,000. The Performance Bond shall serve as security for the faithful performance of CONTRACTOR of all of the provisions and obligations of this Agreement. The Performance Bond shall contain terms acceptable to CITY. If CONTRACTOR deposits a letter of credit with CITY, interest, if any, relating to any cash deposits that may exist with regard to that letter of credit shall accrue to CONTRACTOR.
13. TERMINATION AND OTHER REMEDIES
13.1 Termination
CITY may, by written notice to CONTRACTOR, terminate the whole or any part of this Agreement at any time as a result of a violation of this Agreement by CONTRACTOR by giving written notice to CONTRACTOR of such termination and the violation, and specifuing the effective date thereof, at least ninety (90) days before the effective date of such termination. Upon receipt of a notice of termination, CONTRACTOR shall have sixty (60) days to cure or correct the violation of this Agreement noted by CITY. During the 60-day cure period, CONTRACTOR shall have the right to a hearing before the City Council to discuss the violation and proposed termination, provided that the request for a hearing is made in sufficient time to schedule a hearing at a regular meeting of the City Council falling within the 60-day cure period.
If the violation has not been cured or corrected within the 60-day cure period, CITY may proceed with the termination of this Agreement on the noticed date. Upon termination, CONTRACTOR shall be compensated only for those services which have been adequately rendered to CITY, and CONTRACTOR shall be entitled to no further compensation. Upon termination, CITY shall be entitled to damages caused by such violation and the resulting termination, including, but not limited to the liquidated damages provided for in Section l4 of this Agreement. Notwithstanding the 90-day pre-termination notice requirement described above, if, in CITY's determination (which determination may be made in the sole and absolute discretion of CITY), the violation endangers public health, safety or welfare, termination may be effective immediately.
13.2 Remedies Not Exclusive
The rights and remedies of CITY under this Agreement, including the right to make a claim under the Performance Bond deposited with CITY by CONTRACTOR for reimbursement of any costs bome or damages incurred by CITY as a result of a default by CONTRACTOR under this Agreement and the right to perform during an emergency, shall be in addition to any and all other rights and privileges CITY may have, and shall not be deemed to limit any such other rights or privileges of CITY under this Agreement or by virtue of any law.
13.3 Procurement of Services Following Termination
In the event this Agreement is terminated in whole or in part as provided in this Section, CITY may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
14. LIQUIDATED DAMAGES
14.l General
CITY finds, and CONTRACTOR agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by CITY as a result of a breach by CONTRACTOR of its obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that franchised services might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches.
14.2 Performance Standards: Liquidated Damages for Failure to Meet Standards The Parties further acknowledge that consistent, reliable Solid Waste collection service is of utmost importance to CITY and that CITY has considered and relied on CONTRACTOR's representations as to its quality of service commitment in awarding the Franchise to it. The parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The parties fuither recognize that if CONTRACTOR fails to achieve the performance standards, or fails to submit required documents in a timely manner, CITY and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which CITY will suffer. Therefore, without prejudice to CITY's right to treat such non-performance as an event of default, the parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to CITY that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made.
CONTRACTOR
Initial Here
CITY
Initial Here
CONTRACTOR agrees to pay to CITY (as liquidated damages and not as a penalty) the amounts set forth below:
1. The sum of Five Hundred Dollars ($500) if CONTRACTOR fails to remedy the violation within seventy-two hours of notice from CITY for:
Failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments;
Spill of leakage of oil, hydraulic fluid, coolant, or fluid from any collection vehicle used by CONTRACTOR in the performance of solid waste collection services under this Agreement which causes a stain of 0.5 square feet or greater.
2. The sum of Five Hundred Dollars ($SOO; for the following breaches by CONTRACTOR of its obligations under this Agreement which are not addressed by CONTRACTOR within one calendar month of its receipt of notice from the CITY of the breach or breaches:
Excessive noise;
Discourteous behavior to a Customer:
3. In addition, CONTRACTOR agrees to pay to CITY (as liquidated damages and not as a penalty) the amount of Five Hundred Dollars ($500) for each occurrence of the following breaches by CONTRACTOR:
Failure to commence service to a new Customer within seven (7) days after receipt ofthe order;
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Failure to collect Refuse, Organics, or Recyclables which has been properly set out for collection within 24 hours of the scheduled collection day; or Collecting Solid Waste outside of normal collection hours;
14.3 Procedure for Assessment of Liquidated Damages
CITY may assess liquidated damages for each calendar day or event, as appropriate, that CONTRACTOR is determined to be liable in accordance with this Agreement. Prior to assessing liquidated damages, CITY shall give CONTRACTOR notice of its intention to do so. The notice will include a brief description of the violation or incident of non-performance. CONTRACTOR may review (and make copies at its own expense) all information in the possession of CITY relating to the violation or incident of non-performance. CONTRACTOR may, within ten (10) days after receiving the notice, request a meeting with CITY. CONTRACTOR may present evidence in writing and through testimony of its employees and others relevant to the violation or incident of non-performance. CITY will provide CONTRACTOR with a written explanation of its determination as to each violation or incident of non-performance prior to authorizing the assessment of liquidated damages. The decision of CITY shall be final.
14.4 Timing of Payment
CONTRACTOR shall pay any liquidated damages assessed by CITY within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, CITY may proceed against the performance bond required by the Agreement or order the termination of the Franchise granted by this Agreement, or both.
15. GENERAL PROVISIONS
15.1 Force Maieure
CONTRACTOR shall not be in default under this Agreement in the event that the collection, transportation, processing andlor disposal services of CONTRACTOR are temporarily interrupted or discontinued for any of the following reasons: riots, wars, civil disturbances, insurrections, epidemics, hurricanes, earthquakes, floods, acts of God, government orders and regulations, or other similar catastrophic events which are beyond the reasonable control of CONTRACTOR. It is specifically understood that "other catastrophic events" include strikes, lockouts and other labor disturbances. When any of these events interrupt collection, transportation, processing and/or disposal of Solid Waste by CONTRACTOR as required under this Agreement, CITY may elect to exercise its rights under Section 13.
15.2 Independent Contractor
It is expressly understood and agreed that CONTRACTOR shall perform all work and services described as an independent contractor and not as an officer, agent, seryant or employee of CITY; that CONTRACTOR shall have the exclusive control over the details of the services and work perfbrmed hereunder and all persons perfbrming the same; that CONTRACTOR shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, if any; and that nothing shall be construed as creating a partnership or joint venture between CITY and CONTRACTOR. Neither CONTRACTOR nor its officers, employees, agents a
a
or subcontractors shall obtain any rights to retirement benefits, workers' compensation benefits or any other benefits which accrue to CITY employees.
15.3 Law to Govern
It is understood and agreed by the Parties that the law of the State of California shall govern the interpretation of this Agreement.
15.4 Fees and Gratuities
CONTRACTOR shall not, nor shall it permit any agent, employee or subcontractor employed by it to request, solicit, or demand either directly or indirectly, any compensation or gratuity for the collection of Solid Waste otherwise required to be collected under this Agreement.
CONTRACTOR shall not, nor shall it permit any agent, employee or subcontractor employed by it to accept any monetary compensation or gratuity for the collection of Solid Waste otherwise required to be collected under this Agreement.
15.5 Amendment
Except as may otherwise be specifically provided in this Agreement, this Agreement may be amended or modified only by a written agreement duly authorizedand executed by both CITY and CONTRACTOR.
15.6 Assisnment and Transferabilitv; Subcontracting
Except as provided in Section 16.5, this Agreement is not assignable or transferable in whole or in part by CONTRACTOR, voluntarily, involuntarily, or by operation of law or otherwise except by written amendment to this Agreement signed by both Parties. In addition, the services to be performed by CONTRACTOR pursuant to this Agreement shall not be subcontracted to any third party without the written consent of CITY. Any request made to CITY by CONTRACTOR for approval of an assignment or transfer of this Agreement shall be accompanied by a nonrefundable deposit in the amount of $10,000 to cover CITY's costs, including attorneys' fees, in evaluating the proposed assignee or transferee and the potential benefit or detriment to CITY of the proposed assignment or transfer.
The sale, transfer, assignment or hypothecation of a majority ownership interest in CONTRACTOR after the Effective Date of this Agreement, including a cumulative sale, transfer, assignment or hypothecation, shall be deemed an assignment within the meaning of this Section and is prohibited in the absence of a written amendment to this Agreement.
Any dispute between the CITY and the CONTRACTOR with respect to a determination of whether a sale, transfer, assignment, subcontracting, or hypothecation of a number of shares or other units of ownership in CONTRACTOR has occurred or will occur shall be subject to reference pursuant to Code of Civil Procedure Section 638, et seq. with the presiding judge of the Kern County Superior Court.
15.7 Compliance with Applicable Law
CONTRACTOR agrees that it will comply with all provisions of the Applicable Law, including CITY's business license ordinance, and will obtain all licenses and permits, and pay all taxes and fees, required under the Applicable Law.
15.8 Notices
All notices, demands, requests, consents or other communications which this Agreement contemplates, authorizes, requires or permits either Party to give to the other, shall be in writing and shall be personally delivered; or sent by overnight mail, delivery service, or registered or certified mail, postage prepaid, return receipt requested; all addressed to the respective Party as follows:
To CITY City of Shafter
336 Pacific Avenue
Shafter, CA 93263
Attention: City Manager
Copy to:
BEST BEST & KRIEGER LLP
2855 East Guasti Road, Suite 400
Ontario, CA9l76l
Fax: (909) 944-1441
Attention: Marco Martinez
To CONTRACTOR: American Refuse Inc.
1316 J Street
'Wasco CA. 93280
Attention: Jeff Martin
or to such other address as either Party may from time to time designate by notice to the other given in accordance with this Section. Such notice shall be deemed effective on the date personally served or, if mailed, three (3) days from the date such notice is deposited in the mail.
15.9 s Clause and
If any provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement.
15.10 Attorneys'Fees
In the event of any claim or action or proceeding brought by either Party against the other under or in connection with the subject matter of this Agreement, the prevailing Party shall be entitled to recover from the losing Party as part of the judgment in such action all reasonable costs, expenses, and attorneys' fees, including those costs, expenses and attorneys' fees incurred in defending any counterclaim or cross-complaint brought in such action and incurred in any appeals, all in such amount as the court shall judge reasonable.
15.11 Entire Agreement
This Agreement supersedes any previous agreements either oral or written by the Parties and represents the entire understanding between the Parties.
I5.I2 Rights of City to Perform During Emergency
Should CONTRACTOR, for any reason whatsoever, including the occurrence or existence of any of the events or conditions set forth in Section 15.1, fail, refuse or be unable to collect, transport, process and dispose of any or all of the Solid Waste for which it is obligated under this Agreement to collect, transport and dispose of for a period of more than forty-eight (48) hours, and if as a result thereof Solid V/aste should accumulate in CITY to such an extent, in such a matìner, or for such a time that the City Manager should find that such accumulation endangers or menaces the public health, safety or welfare, then in such event CITY shall have the right, in addition to any other rights under this Agreement or pursuant to law, upon twenty-four (24) hour prior written notice to CONTRACTOR, or without such notice should the CITY determine that a further delay would endanger the health, safety, and welfare of CITY residents during the period of such emergency, to take possession of any or all equipment of CONTRACTOR previously used in the collection, transportation, processing and disposal of Solid Waste or which CONTRACTOR would otherwise be obligated to collect and transport pursuant to this Agreement.
CONTRACTOR agrees that in such event it will fully cooperate with CITY to effect such a transfer of possession for CITY's use. CONTRACTOR agrees that, in such event, CITY may take possession of and use all of said equipment and facilities without paying CONTRACTOR any rental or other charge, provided that CITY agrees that, in such event, it assumes responsibility for the proper and normal use of such equipment and facilities.
CONTRACTOR further agrees that, in such event, it shall reimburse CITY for any and all costs and expenses, including the cost of CITY employees and/or third-party laborers in the performance of emergency services pursuant to this Section, incurred by CITY in taking over possession of the above-mentioned equipment and facilities in such manner and to the extent that would otherwise be required of CONTRACTOR under the terms of this Agreement. CITY shall first subtract such reimbursement costs from compensation otherwise due CONTRACTOR under this Agreement, and to the extent such costs exceed those due CONTRACTOR, an itemized statement of costs and expenses shall be submitted for reimbursement to CONTRACTOR. To facilitate reimbursement of costs and expenses to CITY, CONTRACTOR agrees to assign its right to receive payment from its Customers for services rendered pursuant to this Agreement to the extent that such services have been rendered to said Customers by CITY and further agrees to allow CITY to collect such payments directly from the Customers. CITY agrees that it shall relinquish possession of all of the above-mentioned property to CONTRACTOR upon written notice from CONTRACTOR to the effect that it is able to resume its responsibilities under this Agreement. It is agreed that CITY's exercise of its rights under this Section shall not affect Section 12 of this Agreement.
1 5.13 uate and
CONTRACTOR warrants that it has and will maintain, directly or by contract, sufficient equipment and personnel to provide all services under this Agreement.
16. REPORTING, ACCOUNTING AND AUDITING
16.l Daily
CONTRACTOR shall maintain and make available to the CITY, upon request, daily reports containing detailed audit information including, the number of tons of Refuse collected from Customers, Recyclable Material, Green Waste, Organic'Waste and C&D Debris collected and delivered to the Disposal Facility, Processing Facility Composting Facility, or other facility and the route number, the vehicle number and CONTRACTOR's weight ticket for each load disposed or processed. Collection of Recyclable Materials shall be summarizedby commodity and the amount collected.
16.2 Monthly
CONTRACTOR shall submit written monthly reports to the CITY totaling the information contained in the daily reports.
16.3 Annual
CONTRACTOR shall submit annual reports to the CITY on or before June 1 of each year totaling the information contained in the monthly reports for the year. CONTRACTOR shall cooperate fully with CITY's AB 939 and SB 1383 Regulations reporting requirements by providing CITY with requested information within a reasonable time of CONTRACTOR's receipt of CITY's request, but in no event longer than fifteen (15) days after such receipt. Upon request, CONTRACTOR shall make an oral presentation of the annual report to the City Council of the CITY at the City Council meeting specified by the CITY.
16.4 Additionallnformation
CONTRACTOR shall use Reasonable Business Efforts to incorporate into the reports required by this Section 16 any additional information requested by the CITY. CONTRACTOR shall incorporate into such reports any new reporting information required by Applicable Law.
16.5 AffiliatedCompanies
CONTRACTOR shall promptly notifr CITY of any contracts or informal arrangements between CONTRACTOR and Affiliated Companies related to providing services under this Agreement.
16.6 Maintenance and Audit of Records
CONTRACTOR shall accurately maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents relating to this Agreement, or performance under this Agreement, including routing, complete list of Customers, level of Customer's services, Customer complaints, employee training, inventory, maintenance logs, etc. ("Records") for the term of this Agreement plus two (2) years, or any longer period required by Applicable Law. Contractor shall maintain complete accounting records pertaining to cash receipts, billing and disposal records ("Accounting Records") prepared on an accrual basis in accordance with generally accepted accounting principles for at least three (3) years following the close of CONTRACTOR's fiscal year. CONTRACTOR shall maintain the Accounting Records in a manner that allows for the separate identification of all revenues associated with providing services hereunder and such revenues shall not be combined, consolidated or in any other way incorporated with those of other operations conducted by CONTRACTOR in locations other than the CITY.
The Records, Accounting Records, and records of Affiliated Companies if any, shall be subject to audit and inspection, for the primary pu{pose of reviewing billing operations, accounts receivable and customer service, by the CITY, its auditors or other agents, at any reasonable time, such audit or inspection to take place at the City Hall, if practicable, or at CONTRACTOR's address indicated for receipt of notices. The CITY shall initially bear the cost of such audit. If such audit discloses a material breach of this Agreement, CONTRACTOR shall repay such underpayment, together with interest at the rate of seven percent (7o/o) computed from the date of underpayment, and shall further reimburse CITY for the entirety of CITY's audit costs, including, without limitation, CITY's auditor's costs and expenses, CITY's internal costs and expenses, and CITY's legal and other third party expenses.
16.7 Conhdentiality
Any report from the Auditor to CITY resulting from the auditor's review of CONTRACTOR's records shall be distributed in such a way as to protect the confidential nature of any proprietary information of CONTRACTOR, to the extent permitted by law. The report shall be limited to a letter of compliance relating to the adequacy of the accounting procedures, verification of increases or decreases in CONTRACTOR's costs, and verification that the proper administration and franchise fees are being paid, and shall not set forth CONTRACTOR's actual operating results. The Auditor shall also make such recommendations as it deems necessary as to the adequacy of CONTRACTOR's data collection methods, and as to the availability and sufficiency of the information, including direct, indirect and joint costs, with respect to any request by CONTRACTOR for increased compensation, and shall furnish CITY with its opinion as to whether an increase or decrease is supported and justified by CONTRACTOR's records.
Executed
CONTRACTOR,
a Califomia Corporation
By
Jeff Martin, President
CITY OF SHAFTER,
a Charter City and Municipal Corporation
of the State of California
By:
Cathy Prout, Mayor
ATTEST
By:
Y az.rnina Pallares, City Clerk
APPROVED AS TO FORM:
By:
City Attomey
EXHIBIT A
FRANCHISE AREA
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EXHIBIT B
SERVICE RATES
Interim Collection Rates
Core City Residential Rates
DESCRIPTION OF SERVICE MONTHLY FEE PER HOUSEHOLD
SERVED BY CONTRACTOR
EXISTING STREET CURBSIDE
REFUSE-ONLY CONTAINERS (ONE
CONTAINER PER HOUSEHOLD)
$15
EXISTING ALLEY REFUSE- ONLY
CONTAINERS SHARED BY
MULTIPLE HOUSEHOLDS
SINGLE-FAMILY DWELLING SERVICE
BASE SERVICES
MONTHLY SERVICE RATE
PERDWELLING
WEEKLY REFUSE & ORGANICS
BI.WEEKLY MIXED RECYCLING
(ALL 96-GALLON CONTATNERS)
$26.55
MONTHLY SERVICE RATE
PER DWELLING
EXTRA 96-GALLON REFUSE CART $8.1I
EXTRA 96-GALLON RECYCLING CART $6.44
EXTRA 96.GALLON ORGANICS CART $8.1 1
CHARGES FEE PER OCCURRENCE
RETURN FOR MISSED COLLECTION $17.2s
CARTREPLACEMENT $86.2s
EXHIBIT C
SPECIAL \ryASTES
Flammable waste.
Containerized waste (e.9., a drum, barrel, portable tank, pair, etc) Waste from a pollution control process.
Residue and debris from the cleanup of a spill or release of chemical substances, commercial products or any other special wastes.
Contaminated soil, waste, residue, debris and articles from the cleanup of a site or facility formerly used for the generation, storage, treatment, recycling, reclamation or disposal of any other special wastes.
Dead animals
Explosive substances
..:
Radioactive materials.
Materials which have been exposed to highly infectious or contagious diseases removed from a waste water treatment facility.
Infectious wastes which have disease transmission potential and are classified as Hazardous Wastes by the State Department of Health Services, including pathological and surgical wastes, medical clinic wastes, wastes form biological laboratories, syringes, needles, blades, tubings, bottles, drugs, patient care items such as linen or personal or food service items from contaminated areas, chemicals, personal hygiene wastes.
Liquid wastes which are not spadeable, usually containing less than fifty percent solids, including food processing wastes, landfill leachate and gas condensate, boiler blowdown water, grease trap and septic tank pumpings, oil and geothermal field wastes, rendering plant byproducts, sewage sludge, and those liquid wastes which may be Hazardous Vy'astes.
Radioactive wastes under Chapter 7.6 (commencing with Section 25800) of Division 20 of the California Health and Safety Code, and any waste that contains a radioactive material, the storage or disposal of which is subject to any other State or federal regulation.
Sewage sludge comprised of residue produced by humans (not industrial), removed from a waste water treatment facility or septic tank, whether in a dry or semidry form Vy'astes designated from time to time by the CalRecycle. '
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EXHIBIT D
RATE ADJUSTMENT METHODOLOGY
The adjustment to the Rates will be made using the following methodology:
Step 1: Determine the "Rate Adjustment Factor" or "RAF". The RAF shall be the annual percentage change of the CPI for Garbage and Trash Collection, rounded to the nearest tenth percent on a calendar year basis. The Rate Period will be a l2-month period based on fiscal years, commencing July I and concluding June 30.
Reference: Bureau of Labor Statistics, CPI for All Urban Garbage and Trash Collection
Series ID: CUUR0000SEHG02 (https.l I data.
Rate as follows:
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& City of Shafter
SHAFITR COUNCIL AGENDA REPORT
Meeting Date
FROM:
June2l,2022
Gabriel A. Gonzalez, City Manager
Prepared By: Steve Esselman, Planning Director
SUBJECT: REQUEST TO (1) TEMPORARTLY AUTHOzuZE A SECOND SENTOR PLANNER POSITION AND (2) APPROVE A ONE-TIME AMENDMENT
TO THE PLANNING DEPARTMENT BUDGET IN THE AMOLINT OF
$I15,OOO TO HIRE A NEW SENIOR PLANNER IN ADVANCE OF THE
IMPENDING RETIREMENT OF INCUMBENT SENIOR PLANNER
RECOMMENDATION
Council (l) temporarily authorize a second senior planner position and (2) approve a one-time General Fund budget amendment from the General Fund Unassigned Fund Balance in the amount of $115,000 to the Planning Department for the hiring of a new senior planner.
BACKGROUND
The City's incumbent senior planner has announced her retirement to be sometime in Quarter 3 or 4 of Fiscal Year 2022-2023. To maintain continuity in the planning department, considering the years of experience and institutional knowledge the incumbent retains, it is important to hire a new senior planner in advance. The intent is for the new senior planner to shadow and "download" the institutional knowledge from the incumbent. In this manner, we can plan for a seamless transition.
Once the incumbent senior planner retires, the planning department would go back to having two (2) full{ime staff - the current planning director and the new senior planner to replace the incumbent.
We have numerous development projects in various phases of entitlement that are currently being processed. Historically, one of the City's strengths in the economic development arena is its expediated entitlement process to get projects approved. To continue with this process, having the new senior planner work side by side with the incumbent for a period should be a benefit to meet the objective of a seamless transition.
The planning department previously received authorization from the Council to recruit one new senior planner. The planning department has received several applications and interviewed those individuals deemed qualified. Currently, the planning department has a candidate in mind that is qualified but cannot offer the position until the Council temporarily authorizes a second senior planner position and approves a one-time budget amendment. The budget amendment amount is intended to pay for salary and benefits for a maximum of nine (9) months.
MANAGEMENT REPORT 5
Amend Planning Department Budget to Hire New Senior Planner
FISCAL IMPACT
One-time General Fund budget amendment from General Fund Unassigned Fund Balance projected for FY 2022-2023 in the amount of $115,000 to the planning department. This amount covers the temporary cost of having a second senior planner along with the incumbent senior planner for nine (9) months. Sufficient funds are available in the Unassigned Fund Balance for this one-time expenditure.
ALTERNATIVES
The alternative action is for the Council to not temporarily authorize a second senior planner and approve a one-time amendment to allow the planning department to hire a new senior planner to be trained by the incumbent for about nine months. However, this alternative would mean that the opportunity to maximize the time for interaction between the incumbent and new Senior Planner would not be realized.
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City of Shafter
COUNCIL AGENDA REPORT
Meeting Date: June2l,2022
FROM: Gabriel A. Gonzalez, City Manager
Prepared By: Steve Esselman, Planning Director
SUBJECT: ADOPT URGENCY ORDINANCET3g APPROVING AND ADOPTING
EXECUTION OF A SECOND AMENDMENT TO THE
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
SHAFTER AND SUBURBAN LAND RESERVE, INC., SEVENTH
STANDARD RANCH INVESTORS, LLC., AND LENNAR HOMES OF
CALIFORNIA,INC.
RECOMMENDATION
Council waive further reading and adopt Urgency Ordinance No. 739, an Urgency Ordinance of the City Council ofthe City of Shafter, California, approving and adopting Execution of a Second Amendment to the Development Agreement by and between the City of Shafter and Suburban Land Reserve, Inc., Seventh Standard Ranch Investors, LLC., and Lennar Homes of California, Inc.
PROJECT DATA
1. The City and Suburban Land Reserve, Inc. entered into a Development Agreement (DA) dated October II,2006 and recorded January 22,2007 as Entry No. 0207015743 in the offrce of the Kern County Recorder.
2. The cunent DA guides the development of the Mission Lakes Specific Plan (MLSP) area, including rules for subdivision, phasing of public improvements, and collection of impacts fees.
3. The City, Suburban Land Reserve, Inc., Seventh Standard Ranch Investors, LLC, and Lennar Homes of California, Inc. entered into a first amendmentto the DA dated December 21,202I and recorded January 6,2022 as Entry No. 222002581 in the office of the Kern County Recorder.
4. The first amendment to the DA is set to expire on July 22,2022, and the Owners have requested an additional extension to keep the DA active while the City and Owners negotiate a long-term DA extension.
5. The City has offered an additionaI,90-day extension to allow for ongoing negotiations to continue.
MANAGEMENT REPORT le
Adopt Urgency Ordinance for First Amendment to Development Agreement (Kern County Recorder No. 0207015743)
6. The second extension would not change any conditions in the DA other than to extend the date of expiration to October 22,2022.
PROJECT ANALYSIS
The DA guides the development of the MLSP area and, with the first amendment, is set to expire July 22,2022. The Owners have requested an extension of the DA. The City has offered a90-day extension to negotiate a long-term amendment and the Owners agreed to the proposed timeframe.
Staff brings the Urgency Ordinance to the City Council for your consideration about whether to grant the requested six-month extension of the DA to allow for time to prepare a long-term DA for the Council's consideration at a future date.
FINDINGS
The proposed ordinance been prepared as an urgency measure pursuant to California Government Code Section36937(b) to protect the public peace, health, and safety because the MLSP and DA are considered critical projects for the City and a lapse in the DA would have significant detrimental impacts which cannot be easily remedied by other methods. Further, development of the property in accordance with the DA will provide substantial benefits to City and will further important policies and goals of City. Additionally, the DA eliminates uncertainty in planning and provides for the orderly development of the property, ensures progressive installation of necessary improvements, provides for public services appropriate to the development of the property, and generally serves the purposes for which development agreements under Sections 65864, et seq. of the Govemment Code are intended. These reasons justifu adoption of this the ordinance as an urgency measure to be effective immediately upon adoption by a four-fifths vote of the City Council. A regular, non-urgency version of the ordinance will be processed concurrently with the adoption of the urgency ordinance in the manner provided by the planning and zoning laws and the City of Shafter Municipal Code.
CEQA
Per Section 15601(bX3) (Common Sense) of the California Environmental Quality Act (CEQA) Guidelines, the action is exempt from CEQA because the previous DA already analyzed and mitigated, to the greatest extent possible, environmental impacts as required by CEQA. The sixmonth extension does not result in an intensification of the identified impacts beyond what was previously analyzed. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and the activity is not subject to CEQA.
FISCAL IMPACT
There is no fiscal impact because of the proposed action.
ALTERNATIVES
The City Council could deny the proposed action, the DA would not be amended, and it would expire on July 22,2022.
Adopt Urgency Ordinance for First Amendment to Development Agreement (Kern County Recorder No. 02070rs743)
ATTACHMENTS EXHIBIT
Urgency Ordinance No. 739
Approved Urgency Ordinance No. 729 (First Amendment)
1 2
ORDINANCE NO. 739
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHAFTER,
CALIFORNIA, APPROVING AND ADOPTING EXECUTION OF A SECOND
AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF' SHAFTER AND SUBURBAN LAND RESERVE, INC., SEVENTH STANDARD RANCH INVESTORS, LLC., AND LENNAR HOMES OF CALIFORNIAO INC.
WHEREAS, the City of Shafter and Suburban Land Reserve, Inc., entered into that certain Development Agreement dated October 11,2006 and recorded January 22,2007 as Entry No. 0207015743 in the office of the Kern County Recorder; and WHEREAS, the property subject to the Development Agreement is now owned by additional parties, Seventh Standard Ranch Investors, LLC., a California Limited Liability Company and Lennar Homes of California, Inc., a California corporation ("Owners"); and WHEREAS, the City and Owners entered into a first amendment to the DA dated December 2I,202I and recorded January 6,2022 as Entry No. 222002581 in the office of the Kern County Recorder; and
WHEREAS, the current Development Agreement guides the development of the Mission Lakes Specific Plan (MLSP) atea, including rules for subdivision, phasing of public improvements, and collection of impacts fees; and
\ilHEREAS, the first amendment to the Development Agreement is set to expire on July 22,2022; and
WHEREAS, the Owners have requested that the term of the Development Agreement be extended; and
WHEREAS, City and Owners are currently negotiating a long-term extension of the Development Agreement; and
WHEREAS, the City desires to amend the Development Agreement to extend the term by ninety (90) days in order to allow sufficient time to conclude negotiations; and WHEREAS, in order to ensure the development of the MLSP takes place and the Development Agreement is implemented, this Urgency Ordinance is adopted to extend the Development Agreement immediately so that it does not expire and the City can continue to work with Owner in the implementation of the Development Agreement; and \ilHEREAS, the extension of the Development Agreement is for the immediate preservation of the public peace, health, and safety because the MLSP and Development Agreement are considered critical projects for the City and a lapse in the Development Agreement would have significant detrimental impacts which cannot be easily remedied by other methods; and
WHEREAS, development of the Property in accordance with the Development Agreement will provide substantial benefits to City and will further important policies and goals of City; and
Shafter City Council Ordinance 739
June21,2022
Page2
WHEREAS, the Development Agreement eliminates uncertainty in planning and provides for the orderly development of the Property, ensures progressive installation of necessary improvements, provides for public services appropriate to the development of the Project, and generally serves the purposes for which development agreements under Sections 65864, et seq. of the Government Code are intended; and
\ilHEREAS, Owners have incurred and will in the future incur substantial costs in order to assure development of the Property in accordance with the Development Agreement; and WHEREAS, Owners have incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure vesting of legal rights to develop the Property in accordance with the Development Agreement; and WHEREAS, this Urgency Ordinance is adopted pursuant to California Government Code section 36937(b) and shall take effect immediately upon adoption by a four-fifths vote of the City Council; and
WHEREAS, the amendment to the Development Agreement is consistent with the City of Shafter General Plan and the MLSP and contains all necessary elements required by Govemment Code section 65864 et. seq. and Title 15 of the City of Shafter Municipal Code as no substantive changes are proposed by the amendment; and
\ilHEREAS, the City Council of the City of Shafter has reviewed and studied the amendment to the Development Agreement and found it to comply with the California Environmental Quality Act ("CEQA") as more fully described below.
THE CITY COUNCIL OF THE CITY OF SHAFTERDOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby adopts the recitals in this Urgency Ordinance as Urgency Findings for its adoption. Based on the entire record before the City Council of the City of Shafter ("Council") and all written and oral evidence presented to the Council, the Council finds the Second Amendment to the Development Agreement attached here to as Exhibit "4" ("Second Amendment") is consistent with the General Plan of the City of Shafter ('oGeneral Plan") and the Mission Lakes Specific Plan ("MLSP") area and systematically implements the goals and objectives of the General Plan and MLSP.
A. The Second Amendment is consistent with the objectives, policies, general land uses and programs specified in the General Plan and the MLSP. The Second Amendment will not be detrimental to the health safety and general welfare of persons residing in the immediate area nor be detrimental or injurious to the general welfare of the residents of the City as a whole.
B. The Second Amendment will not adversely affect the orderly development of property or the preservation of property values.
C. The Second Amendment eliminates uncertainty in planning and provides for the orderly development of the Property, ensures progressive installation of necessary improvements, provides for public services appropriate to the development of the Project, and Shafter City Council Ordinance 739
Iune 21,2022