CITY COUNCIL MEETING AGENDA September 5, 2023
CITY COUNCIL MEETING AGENDA
City Council Chambers
4488 Red Bluff Street
Shasta Lake. CA 96019
Tuesday, September 5, 2023, at 6:00 PM
Mayor: Greg Watkins
Vice Mayor: Janice Powell
Council Members: Tena Eisenbeisz, Justin Jones, Pamelyn Morgan
OTHER WAYS TO PARTICIPATE IN THE MEETING
• Watch a livestream of the meeting online or view the recording any time after the meeting concludes at the following: cityofshastalake.org/meetings
• Submit public comment by mail or email addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019 or [email protected]. Mailed and emailed comments must be received one day prior to the meeting to be included.
6:00 PM CALL TO ORDER – REGULAR MEETING:
Call to order (please place electronic devices on silent) Statement for the record of Council Members present or absent Pledge of Allegiance
Invocation
AWARDS & RECOGNITIONS:
The Brown Act prohibits the Council from taking action on any item not placed on the Agenda in most cases. The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting to be made available to members of the public at the same time they are distributed.
Should supplemental materials to be evaluated in the decision-making process be made available to the members of the legislative body at the meeting, seven (7) copies must be provided to the City Clerk who will distribute them.
Councilmembers are encouraged to contact the City Manager prior to the meeting with questions or concerns regarding any item on the Agenda so that their questions and concerns can be adequately addressed at the meeting.
Agenda packets are available for public review at City Hall, 4477 Main Street, Shasta Lake, CA during normal business hours of 7:00 a.m. to 4:00 p.m. weekdays, excluding holidays.
In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call (530) 275-7407. Notification 48 hours prior to the meeting is requested to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).
CITY COUNCIL MEETING AGENDA September 5, 2023
PRESENTATIONS:
Lisa Towns, Staff Services Analyst II, Shasta County Health and Human Services Agency – Report on Point in Time Count.
COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
PUBLIC COMMENT:
This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the regular agenda, please address the Council when that item is open for public comment. Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. Speaker forms are available from the City Clerk, 4477 Main Street, Shasta Lake, on the City’s website, or at the back of the meeting hall. If you have documents to present to members of Council, please provide a minimum of seven copies.
CONSENT AGENDA: None
The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.
1. Acceptance of the minutes of the regular meeting of August 1, 2023. (page 1)
2. Acceptance of the minutes of the regular meeting of August 15, 2023. (page 4)
3. Ordinance approving Municipal Code Amendments to Title 2.04.020, Compensation ($950 per month stipend) and Benefits for City Council Members. (page 6)
4. Quarterly Cash and Investment Report for the period ending June 30, 2023. (page 8)
5. Resolution approving and adopting the Fiscal Year 2023-24 Payrate Schedule for regular full-time and regular part-time position titles and classifications. (page 13)
6. Resolution to award the City Hall Electric Vehicle Charging Station Project to Designs Build, Inc. of Sacramento, CA in the amount of $139,786.00, and approve a total of $150,000.00 to allow for contract contingency. (page 17)
7. Resolution authorizing City Manager to execute Cal Fire California Climate Investment Grant documents and any subsequent agreements and approving a supplemental appropriation in the CITY COUNCIL MEETING AGENDA September 5, 2023
amount of $1,374,800 for State of California Department of Forestry and Fire Protection (CAL FIRE) California Climate Investment Wildfire Prevention Grant Program. (page 21)
8. Approval of letter of support for ACA 13 (Ward) Voting Thresholds. (page 27)
9. Resolution approving a supplemental appropriation of $20,000 for Clean CA Grant and authorizing the City Manager to execute any necessary agreements pertaining to this grant. (page 29)
10. Resolution authorizing the City Manager to execute Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) grant documents and any subsequent agreements and approving a supplemental appropriation in the amount of $30,000 for the OTS STEP Grant. (page 37)
11. Resolution approving supplemental budget appropriations for 2024 and 2025 for Power Supply purposes. (page 55)
12. Information Item – Checks, E-Payments, and Wires: (page 58) 7/07/2023 $1,086,256.89
7/13/2023 $3,266,179.10
7/20/2023 $3,208,440.30
7/27/2023 $313,324.42
8/03/2023 $691,272.64
8/10/2023 $1,694,518.79
8/27/2023 $105,186.95
PUBLIC HEARINGS: None
REGULAR AGENDA:
13. Resolution to award the Centimudi Water Storage Tank Engineering Design Services and Services During Construction Professional Services contract to Pace Engineering of Redding, Ca in the amount of $284,314.00 and approve a total of $300,000.00 to allow for contract contingency. (page 84)
14. Discussion and possible action on a Resolution to accept the Audited Financial Statements, Single Audit Act Report, Management Letter, and Auditor’s Letter to City Council for Fiscal Year ending Jun 30, 2022. (page 121)
STAFF COMMENTS:
CITY COUNCIL COMMENTS AND REPORTS:
This is the time set aside for Council Members, who may so desire, to give brief comments or reports concerning City matters. The City Council may not enter into discussion on matters reported.
CITY COUNCIL MEETING AGENDA September 5, 2023
Statements made by individual Council Members should not be interpreted as a statement of the City Council. The City Council only takes action by majority vote. • Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.
ADJOURNMENT:
Meetings are broadcast on the Wednesday following the meeting at 6:00 PM and the following Friday at 2:00 PM on Charter Channel 181. Videos of meetings are also available through the City website: www.cityofshastalake.org
MEETING OF THE CITY OF SHASTA LAKE CITY COUNCIL
MINUTES OF THE REGULAR MEETING
HELD TUESDAY, AUGUST 1, 2023, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA 5:00 PM CLOSED SESSION
Pursuant to California Government Code Section 54956.9, Conference with Legal Council.
One Case: Timothy Wright, Tim and Mike Enterprises, LLC, SGCC Management LLC vs.
City of Shasta Lake, John Duckett Jr., Jessaca Lugo, Farhad Mortazavi, and James Takehara.
Pursuant to California Government Code Section 54956.95, Liability Claim by Peter Statz against City of Shasta Lake.
6 6:00 PM CALL TO ORDER - Regular Session
Mayor Watkins convened the regular meeting at 6:00 PM
Council Members present: Eisenbeisz, Jones, Morgan, Powell, Watkins Council Members absent: None
Pledge & invocation
Mayor Watkins announced that during closed session, no reportable action was taken on the first Item. The Council gave direction to pay the claim on the second item.
PRESENTATIONS
Ayla Tucker, Government and Public Affairs, Pacific Gas and Electric Company presentation on:
• Key wildfire safety objectives and local work
• Ongoing and upcoming PG&E projects in your area
• Resources and support available to customers
COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS
Public Comment:
Jim Mark spoke about PGE and dangerous overhead lines.
Don Mills spoke regarding more notification regarding power being restored.
Lynn spoke regarding the Trinity County program for chipping. She also spoke regarding the Crush the Brush event.
Jim Mark spoke regarding term limits, and bodycams.
Council Member Morgan admonished Mayor Watkins for his conduct at the July 18th City Council Meeting.
Gracious Palmer supported Council Member Morgan’s statement and urged the City Council to adopt a Code of Conduct.
CONSENT AGENDA
1. Acceptance of the Minutes of the July 18, 2023, regular meeting. 1 Minutes – August 1, 2023
2. An Ordinance adopting Interim Zoning Provisions necessary to implement the 2040 General Plan and its related Land Use Map including minor text amendments to Title 17 –“Zoning” of the Shasta Lake Municipal Code.
3. Resolution CC-2023-45 approving the vacation on excess street right-of-way on portions of Grand Coulee Blvd. and Morning Star Way and reserving of easement for public utilities.
4. Resolution CC-2023-46 to approve a supplemental budget appropriation in the amount of $460,000.00 to award the Shasta Dam Blvd Complete Streets Project Design Engineering and Planning Professional Services contract to GHD, Inc. of Redding, CA in the amount of $438,224.00 and approve a total of $460,000.00 to allow for a project contingency.
5. Resolution CC-2023-47 to accept the HSIP Cycle 10 Safety Improvements Project and authorize the filing of a notice of completion.
6. Resolution CC-2023-48 to accept the Flanagan Pole Replacements 115KV Transmission Project and authorize the filing of a notice of completion.
Motion/Vote:
By motion made/seconded (Morgan/Powell), and carried, the consent agenda was approved.
PUBLIC HEARINGS
7. Public Hearing and possible action to conduct the first reading of an Ordinance approving Municipal Code Amendments to Title 2.04.020, Compensation and Benefits for City Council Members.
Motion/Vote:
By motion made/seconded (Eisenbeisz/Powell), and carried, the Ordinance was read by short title only and moved to the next first reading with clarification of the stipend amount.
REGULAR AGENDA
8. Discussion and possible action approving one of the following:
A) A supplemental budget request Resolution in the amount of $55,000 to be used for the completion of a Uniform Volumetric Water Rate Study.
Public Comment:
Don Mills opposed tiered rates and supports a flat rate.
Gracious Palmer spoke in opposition to a new flat rate study.
Rose Smith spoke regarding her attendance at previous meetings for this topic and is in support of the new study.
Jim Mark spoke in support of the study.
Angie Butal spoke in favor of the new study.
Cherel Yednek spoke in favor of tiered rates.
Motion/Vote:
By motion made/seconded (Jones/Powell), and carried, Resolution CC-2023-49 was approved.
Council Members Morgan and Powell voted NO.
2 Minutes – August 1, 2023
9. Discussion and possible action to approve a supplemental budget request in the amount of $20,000 for consulting services to provide Landscape Maintenance District (“LMD”) Formation Services/Assessment Engineering Services to the City of Shasta Lake Shasta Gateway Industrial Park.
Motion/Vote:
By motion made/seconded (Morgan/ Eisenbeisz), and carried, Resolution CC-2023-50 was approved.
10. Council review, discussion, and direction regarding the Mayor’s annual appointments made in December of 2022 to consider which, if any Committees/Commissions/Boards, Council Member Eisenbeisz could serve on.
Council Member Eisenbeisz was given Check Register Review duties, Public Facilities Committee, and alternate Shasta Regional Transportation Board member duties.
COMMUNICATIONS
Staff Comments
City Council Comments
ADJOURNMENT
With no further business, Mayor Watkins adjourned the meeting at 8:10 pm.
_____________________________
TONI M. COATES, CMC, City Clerk
3 MEETING OF THE CITY OF SHASTA LAKE CITY COUNCIL
MINUTES OF THE REGULAR MEETING
HELD TUESDAY, AUGUST 15, 2023, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA 6 6:00 PM CALL TO ORDER - Regular Session
Mayor Watkins convened the regular meeting at 6:00 PM
Council Members present: Eisenbeisz, Jones, Morgan, Powell, Watkins Council Members absent: None
Pledge & invocation
AWARDS AND RECOGNITIONS - None
PRESENTATIONS
1. Presentation – Devon Hedemark – Genasys Protect – Zone Information Lieutenant MacGregor answered related questions.
Public Comment:
Gracious Palmer spoke regarding the zones in the Summit City area.
COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS
Ann Morningstar reported on the Shasta Lake Fire Control District and the Mosquito and Vector Control Board.
Public Comment:
Marla Rose spoke regarding water and wastewater rates and water leak on Willow.
Doris Williams spoke regarding portable basketball safety issues.
Cherel Yednek spoke regarding leak notifications and the need for more immediate information.
Jim Mark spoke about rodent problems, term limits, and bodycams.
CONSENT AGENDA - None
PUBLIC HEARINGS
2. Public Hearing and possible action to conduct the first reading of an Ordinance approving Municipal Code Amendments to Title 2.04.020, Compensation and Benefits for City Council Members.
Jim Mark and Cherel Yednek spoke in support of the stipend.
Motion/Vote:
By motion made/seconded (Morgan/Eisenbeisz), and carried, the Ordinance was read by short title only and moved to the next reading with proposed Council compensation of $950.00 per month. 4 Minutes – August 15, 2023
REGULAR AGENDA
3. Discussion and possible approval of a Resolution approving a list of vehicles and equipment as surplus property and authorizing the City Manager to dispose of all items on the list via public auction.
Motion/Vote:
By motion made/seconded (Eisenbeisz/Powell), and carried, Resolution CC-2023-51 was approved.
COMMUNICATIONS
Staff Comments
City Manager Jessaca Lugo announced that the Statz claim had been finalized, the snack shack installation project progress, Ranchera Pines Water Main Project progress, upcoming water main flushing activity, and Trash the Trash event.
City Council Comments
ADJOURNMENT
With no further business, Mayor Watkins adjourned the meeting at 7:16 pm. _____________________________
TONI M. COATES, CMC, City Clerk
5 ORDINANCE NO CC-2023-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING MUNICIPAL CODE AMENDMENTS TO TITLE 2.04.020 COMPENSATION AND BENEFITS
FOR CITY COUNCIL MEMBERS
WHEREAS, the City of Shasta Lake is a general law City with a population of approximately 10,217; and
WHEREAS, Senate Bill 329 approved by the Governor June 29, 2023 would amend Section 36516 of the government code to allow increases the maximum amount of salary; and WHEREAS, SB 329 amends Government Code section 36516 (a) (1) 36516. allowing City Councils to enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city; and
WHEREAS, SB 329 bill would authorizes the salary of council members to be increased beyond the specified maximums to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council; and WHEREAS, City Council compensation has not been adjusted since the City incorporated in 1993; and
WHEREAS, the State of California recognizes allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families; and
WHEREAS, by increasing the monthly salary of City Council can help ensure our elected officials are reflective of the residents who live, work, and play in their communities; and WHEREAS, funding for this amendment is currently not allocated in the 2022-2024 Two-Year Budget and upon passage will require a supplemental appropriation; and WHEREAS, the City Council conducted a public hearing on August 1, 2023 and considered the entirety of the record and all public testimony that was provided regarding the proposed ordinance amendment.
NOW THEREFORE, the City Council of the City of Shasta Lake does ordain as following:
SECTION 1.
The foregoing recitals are adopted as findings of fact in support of this ordinance. 6 SECTION 2.
2.04.020 Compensation and benefits for city council members. Each member of the city council shall be entitled to a stipend (salary) and benefits as follows:
A. Each member shall receive a salary of $950.00 hundred dollars per month; B. Each city council member shall be eligible to participate in the health, welfare and retirement programs of the city.
1. A City Council member may choose to become a part of the City’s health care plan.
The City will pay 100% of the premium that it pays for management employees including dental and vision premiums for the City Council members only.
2. If a Council member chooses to cover a spouse or family member they may do so, however the Council member will reimburse the City for any additional costs of any selection in excess of self-coverage only as indicated above.
SECTION 3.
In accordance with Government Code section 36516.5 a change in compensation does not apply to a council member during the council member’s term of office. This prohibition shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of the city council becomes eligible for a salary increase by virtue of the council member beginning a new term of office.
SECTION 4.
Under the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15061 (b) (3), this ordinance is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, such as the adoption of the regulations contained herein, the activity is not subject to CEQA.
PASSED, APPROVED, AND ADOPTED this 15th day of August 2023 by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
7 Report and Recommendations 4
Reviewed and Approved
City Manager
AGENDA ITEM
City Council Meeting
TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: August 28, 2023
SUBJECT: Cash & Investment Report for June 30, 2023
FILE NO: F-200-150-015
RECOMMENDATION:
Staff submits for approval the attached Cash & Investment Report for the period ending June 30, 2023.
BACKGROUND:
Effective January 1, 1996, California enacted into law Senate Bills 564 and 866, which outline standards and requirements regarding investment activities for local public agencies. Sound investment policies, conservative management of public funds, and quarterly reporting requirements to the governing body were the main focus of this legislation.
The law requires that the chief fiscal officer submit an investment report to the City Council (governing body) each quarter that consists of the following information:
issuers (bank or institution)
type of investment or description
dollar amount
interest rate
market valuation
percent of each investment within the overall portfolio date of maturity
The source of the valuation of each investment is required to be reported to the City Council.
Additionally, a statement indicating the agency’s ability, or lack thereof, to meet the next six (6) months cash flow requirements is required.
8 Each of the criteria listed above has been addressed in the attached analysis of the cash and investments that the City held on June 30, 2023. The source of market valuations has been quoted from documents received from the bank or institution that is the issuer of each of the investments. If staff did not receive this information from the bank or institution, market value has been listed as equal to the carrying amount. Additionally, we have indicated whether funds are “restricted” for a particular purpose. Restricted funds are usually the amount of funds required to service the last debt service payment on a loan or funds for special projects (water improvement project and housing rehabilitation).
On an overall basis, the City of Shasta Lake should be able to meet its cash flow requirements for the next six months.
Additionally, our CalPERS CERBT account included below, has a balance greater than the actuarial valuation of our Total OPEB (Other Post Employment Benefits) Liability, which is good news.
FISCAL IMPACTS:
None
ATTACHMENTS:
• City of Shasta Lake Cash & Investment Report
• Resolution for the approval of the June 30, 2023 Cash & Investment Report • Cash and Investment Notes
DISTRIBUTION:
City of Shasta Lake City Council
City of Shasta Lake Files
9 Market Date of
Bank or Institution Description Amount Interest Rate Valuation % of Portfolio Maturity Cornerstone Community Bank Checking Account $1,362,604 n/a $1,362,604 2.5216% n/a City of Shasta Lake Petty Cash $2,100 n/a $2,100 0.0039% n/a Wells Fargo Investments Investments $33,232,298 variable $33,338,236 61.6961% Varies State of California
LAIF-City $19,421,350 98.48% $19,059,904 35.2725% n/a
Shasta County Trustee
(Restricted) LAIF-County* $278,556 98.48% $273,372 0.5059% n/a Grand Total $54,296,908 $54,036,216 100%
CalPERS CERBT ** Retiree Health Benefit Trust $8,792,912 variable $8,792,912 n/a n/a CalPERS CEPPT ** Retiree Pension Benefit Trust $92,207 variable $92,207 n/a n/a *Restricted = Debt Service Reserve Requirements
** This is a portfolio investment and not a bank deposit. Each employer owns a percentage of the portfolio, and does not have direct ownership of the securities in the portfolio.
It is expected that the City of Shasta Lake will be able to meet its cash flow requirements for the next six months. ____________________________________ 30-Jun-2023
Wendy Howard Date
Finance Director
City of Shasta Lake
Analysis of Cash and Investments
June 30, 2023
10 RESOLUTION CC-2023-XX
A CITY OF SHASTA LAKE CITY COUNCIL RESOLUTION ACCEPTING THE QUARTERLY CASH AND INVESTMENT REPORT FOR THE PERIOD ENDING JUNE 30, 2023 WHEREAS, the Chief Fiscal Officer is required under Senate Bills 564 and 866 to provide a quarterly investment report to the City Council, and
WHEREAS, the report includes the issuers, type of investment or description, dollar amount, interest rate, market valuation, the percent of each investment within the overall portfolio, the date of maturity, and
WHEREAS, the source of the valuation of each investment has been quoted from documents received from the bank or institution that is the issuer of each of the investments and when not supplied the amount has been listed as equal to the carrying value, and WHEREAS, on an overall basis, the City of Shasta Lake will be able to meet its cash flow requirements for the next six months.
NOW, THEREFORE BE IT RESOLVED that the Shasta Lake City Council accepts the Quarterly Cash and Investment Report for the Period ending June 30, 2023 for review.
PASSED, APPROVED, AND ADOPTED this 5th day of September, 2023, by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
11 Cash Accounts Held at June 30, 2023
CCB Checking Account - The City’s checking account at Cornerstone Community Bank is primarily used to manage the day-to-day operations of the City.
Wells Fargo Advisors CD’s (Managed by Chandler) - The Wells Fargo account holds a mix of investments, which comply with California regulations. The yield on these investments varies.
Local Agency Investment Fund (LAIF)-City - LAIF is where the City keeps its idle cash for all funds. It’s essentially the City’s cash reserves and is necessary for liquidity. This type of account allows the City to deposit and withdraw funds a maximum of 15 transactions per month without fees or penalties.
LAIF-County - The County LAIF account is essentially a reserve fund for the debt service for the USDA sewer loan. This $5.6 million loan was used to finance the expansion of the wastewater treatment plant. The final payment on the bond is due December 2034. 12 Report and Recommendations
Reviewed and Approved 5
City Manager
AGENDA ITEM
City Council Meeting
TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: August 28, 2023
SUBJECT: FY2023-24 Payrate Schedule
FILE NO: P-100-099-070
RECOMMENDATION:
Staff respectfully submits for approval and adoption the fiscal year 2023-24 Payrate Schedule for all Regular Full-time and Regular Part-time position titles and classifications.
BACKGROUND:
CalPERS requires that agencies have a payrate schedule that has been duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meetings laws. Therefore, staff is presenting the FY2023-24 payrate schedule for approval and adoption. This schedule may still change, pursuant to the IBEW MOU agreement. There are still outstanding issues with the IBEW MOU, namely the continuing MOU negotiations of Redding with its Electric divisions. Our Electric payrates have the potential to change depending on the outcome of those negotiations. If those negotiations result in a pay increase for Redding Electric linemen, then we may need to bring a revised schedule back to Council.
For transparency purposes, changes from the 2022-23 schedule, approved by Council on 5/2/2023, are noted below. It is indicated whether the changes were approved through the adoption of the budget (including previously negotiated MOU changes), approval of the mid-year resolution, or individual items brought to Council throughout the year. Sometimes for new hires or promotions future increases are negotiated based on improved performance and productivity from experience gained on the job.
- The Permit Center Manager & Deputy City Clerk and the Executive Assistant – not previously approved, though required by the CA minimum wage increase to $16/hour effective 1/1/2024. The overtime exempt threshold is no less than two times the state minimum wage for full-time employment.
13 - Animal Control Officer-Supervisor – 5% increase in addition to COLA, per negotiated employment offer (included in budget)
- Associate Civil Engineer – $4,000 increase in addition to COLA, per negotiated employment offer (included in budget)
- Building Official – 6% increase in addition to COLA (included in budget) - GIS Program Coordinator – 8% increase in addition to COLA (included in budget) - Public Works Director / Engineer – 4% increase in addition to COLA, per negotiated employment offer (included in budget)
- Appropriate COLAs (included in budget)
FISCAL IMPACTS:
None.
ATTACHMENTS:
• Resolution adopting the revised FY2023-24 Payrate Schedule • Exhibit A – FY2023-24 Payrate Schedule
DISTRIBUTION:
City of Shasta Lake City Council
14 RESOLUTION CC-2023-xx
A SHASTA LAKE CITY COUNCIL RESOLUTION APPROVING AND ADOPTING THE FISCAL YEAR 2023-24 PAYRATE SCHEDULE FOR REGULAR FULL-TIME AND REGULAR PART-TIME POSITION TITLES AND CLASSIFICATIONS.
WHEREAS, the City of Shasta Lake has a payrate schedule identifying the base pay rate, and time base (monthly and hourly) for all Regular Full-time and Regular Part-time position titles and classifications in the City, including the effective date and the date of any revisions; and, WHEREAS, the City of Shasta Lake’s payrate schedule identifies the position title for every employee position; and,
WHEREAS, the City of Shasta Lake’s payrate schedule is immediately accessible and available for public review during normal business hours and on the City’s internet website, and is retained by the City for public inspection for not less than five years; and, NOW, THEREFORE, BE IT RESOLVED that the Shasta Lake City Council hereby approves and adopts the attached Payrate Schedule (Exhibit A) effective July 1, 2023 for Regular Full-Time and Regular Part-Time position titles and classifications.
PASSED, APPROVED, AND ADOPTED this 5th day of September, 2023, by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
15 Bargaining
Position Titles / Classifications Unit x Hourly Payrate x Monthly Payrate x Hourly Payrate x Monthly Payrate Account Clerk I T 4,422 25.51 -
Account Clerk II T 4,808 27.74 -
Accounting Technician M 33.15 5,746 -
Administrative Assistant T 4,600 26.54 -
Animal Control Officer T 4,404 25.41 -
Animal Control Officer-Supervisor M 33.56 5,817 -
Assistant Electric Director M 84.54 14,654 -
Associate Civil Engineer M 61.14 10,598 -
Building Inspector T 6,226 35.92 -
Building Official M 54.64 9,471 -
Chief Water Treatment Plant Operator M 9,835 56.74 -
City Clerk M 49.22 8,531 -
City Engineer M 78.72 13,645 -
City Manager M 92.99 16,118 -
Code Enforcement Officer T 4,895 28.24 -
Community Economic Development Manager M 47.98 8,317 -
Computer Aided Drafter/Technician T 4,794 27.66 -
Development Services Technician I T 3,652 21.07 -
Development Services Technician II T 4,193 24.19 -
Development Services Technician III T 26.54 4,600 -
Electric Leadworker I 70.55 12,229 -
Electric Lineman I 65.63 11,376 -
Electric Operations Manager M 84.54 14,654 -
Electric Troublemen I 68.69 11,906 -
Electric Utilities Director M 104.34 18,086 -
Engineering Technician II T 37.72 6,538 -
Equipment Mechanic T 32.75 5,677 -
Equipment Mechanic Lead Worker T 34.86 6,042 -
Executive Assistant M 31.93 5,535 32.00 5,547
Finance & General Services Manager M 49.22 8,531 -
Finance Director M 69.67 12,076 -
Fuel Reduction Coordinator M 44.26 7,673 -
GIS Program Coordinator M 52.81 9,154 -
Janitor/Maintenance Worker T 16.93 2,935 -
Line Staking Technician I 52.50 9,100 -
Meter Reader T 24.94 4,323 -
Meter Reader/Service & Warehouse Worker T 31.63 5,483 - Operator in Training T 27.73 4,807 -
Permit Center Manager & Deputy City Clerk M 31.93 5,535 32.00 5,547 Planning Manager M 69.98 12,130 -
Planning Technician T 21.87 3,791 -
Public Works Director / Engineer M 78.72 13,645 -
Public Works Equipment Operator T 34.27 5,940 -
Public Works Lead Worker T 37.37 6,477 -
Public Works Maintenance Worker I T 27.70 4,801 -
Public Works Maintenance Worker II T 31.10 5,391 -
Public Works Parks Maintenance Worker I T 23.96 4,153 - Public Works Superintendent - Wastewater M 60.21 10,436 - Public Works Supervisor M 55.07 9,545 -
Secretary Clerk T 21.20 3,675 -
Senior Building Inspector & Code Enforcement Of M 6,602 38.09 - Senior Mechanic T 6,658 38.41 -
Senior Planner M 48.43 8,395 -
Senior Wastewater Treatment Plant Operator T 7,270 41.94 - Senior Water Treatment Plant Operator T 7,270 41.94 -
Utility Billing & Customer Service Supervisor M 6,432 37.11 - Wastewater Treatment Plant Operator I T 5,554 32.04 -
Wastewater Treatment Plant Operator II T 6,306 36.38 -
Water Treatment Plant Operator I T 5,554 32.04 -
Water Treatment Plant Operator II T 6,306 36.38 -
Water Utility Specialist M 10,436 60.21 -
Bargaining Units:
T = Teamsters
I = IBEW
M = Management / Confidential
Effective 1/1/2024
City of Shasta Lake
Payrate Schedule
Effective 7/1/2023
Approved 9/5/2023
Effective 7/1/2023
16 Report and Recommendations 6 Reviewed and Approved
City Manager
AGENDA ITEM
City Council Meeting
TO: Mayor and City Council Members
FROM: Trent Drenon, Assistant Electric Utility Director
DATE: September 5, 2023
SUBJECT: Contract Award
City Hall Electric Vehicle Charging Stations
FILE NO.: New
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution that awards the “City Hall Electric Vehicle Charging Stations” to Designs Build, Inc. of Sacramento, CA, with a not to exceed cost of $150,000.00, including contract contingency.
BACKGROUND:
Work on this project is for the installation of two (2) city furnished ‘level 3’ electrical vehicle charging stations at the City of Shasta Lake, City Hall campus. Work includes installation of a main switchboard, conduit, conductors, grounding, concrete foundations, anchorage, trenching, backfill, bonding, operational readiness testing, functional acceptance testing, concrete flatwork, concrete curb, asphalt concrete, pavement striping, pavement markings, striping removal, seal coat, grading, traffic control and wheel-stops.
All other items or details not mentioned above that are required by the Plans or the Contract Documents shall be furnished, fabricated, constructed, or installed. The Engineer’s Estimate for this work is $140,000.
The two parking stalls for vehicle charging will be located on the far east side of the City Hall Parking Lot.
The City held a Prebid meeting on August 9th to allow interested bidders to ask questions and tour the project site.
Five bids were ultimately received on August 24, 2023 for installation services. Two of the five bids were deemed non-responsive by the City Public Works Director due to an expired DIR number of a subcontractor. Designs Build was deemed to be the lowest responsive bidder. The responsive bids ranged from $139,786.00 to $191,000.00.
FISCAL IMPACTS:
The lowest responsive, responsible bidder was Designs Build Inc. of Sacramento, CA with a bid of $139,786.00. In addition to the construction contract funds, contingency funds need to be allocated for the installation, creating an installation budget of $150,000.00. 17 This project includes a separate contract with Pace Engineering for design consulting in the amount of $70,000.00. The chargers and transformer were expected to be a high demand and long lead time item.
Because of this the City previously purchased two Chargepoint branded Express 250 charging stations at a cost of $155,131.63 and a transformer for $17,279.05. Construction of this project will utilize the currently budgeted Electric Utility capital project funds (520-340-6261) of $400,000.00.
ATTACHMENTS:
Resolution, Bid Summary
DISTRIBUTION:
City Council
18 RESOLUTION CC-2023-xx
________________________________________________________________________________
A RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL TO AWARD THE CITY HALL ELECTRIC VEHICLE CHARGING STATION PROJECT TO DESIGNS BUILD, INC. OF SACRAMENTO, CA IN THE AMOUNT OF $139,786.00, AND APPROVE A TOTAL OF $150,000.00 TO ALLOW FOR A CONTRACT CONTINGENCY.
________________________________________________________________________________ WHEREAS, The City advertised for competitive bids (Bid # 2023-14) to construct the above project starting on July 24, 2023; and
WHEREAS, The City opened five bids on August 24, 2023; and WHEREAS, The lowest responsive, responsible bidder was Designs Build, Inc. of Sacramento, CA with a bid of $139,786.00; and
WHEREAS, in addition to the construction contract funds, contingency funds need to be allocated; and
NOW, THEREFORE, BE IT RESOLVED THAT the City of Shasta Lake City Council hereby:
1. Declares Designs Build, Inc. of Sacramento, CA the low responsive, responsible bidder, awards a construction contract in the amount of $139,786.00 to Designs Build, Inc. of Sacramento, CA for the construction of the City Hall Electric Vehicle Charging Station project, and approves a total of $150,000.00 to allow for a construction contingency.
PASSED, APPROVED, AND ADOPTED this 5th day of September, 2023, by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
19 (non‐responsive bid) (non‐responsive bid)
Engineer's Estimate Nichol Construction Designs Build Inc. Axner Excavating Item # Description Est. Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 City Hall Electric Vehicle Charging Stations 1 LS $140,000.00 $140,000.00 $139,786.00 $139,786.00 Bid Total: $140,000.00 NON‐RESPONSIVE $139,786.00 NON‐RESPONSIVE Subcontractor: East Electrical Service
SnL Group Inc. Builder Solutions Inc
Item # Description Est. Quantity Unit Unit Price Total Unit Price Total 1 City Hall Electric Vehicle Charging Stations 1 LS $182,284.00 $182,284.00 $191,000.00 $191,000.00 Bid Total: $182,284.00 $191,000.00
City Hall EVCS Project
Bid No. 2023‐14
Bid Opening Date: 08/24/2023
20 Report and Recommendations 7
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager
DATE: September 5, 2023
SUBJECT: Request for supplemental appropriation in the amount of $1,374,800 for State of California Department of Forestry and Fire Protection (CAL FIRE) California Climate Investment Wildfire Prevention Grant Program FY 22-23 and authorization of the City Manager to execute grant documents and any subsequent agreements
FILE NO.: G-100-015-022
RECOMMENDATION:
Staff recommends the City Council approve a supplemental budget appropriation in the amount of $1,374,800 for the CAL FIRE California Climate Investment Wildfire Prevention Grant Program FY 22-23 and authorize the City Manager to execute necessary agreements pertaining to this grant.
BACKGROUND
In March 2023, the City of Shasta Lake submitted an application o the State of California Department of Forestry and Fire Protection (CAL FIRE) California Climate Investment Wildfire Prevention Grant Program for funding in the amount of $1,374,800 to be used for fuel reduction efforts in specified areas of the City and its surrounding areas.
CAL FIRE Wildfire Prevention Grants Program Background:
CAL FIRE’s Wildfire Prevention Grants Program provides funding for fire prevention projects and activities in and near fire threatened communities that focus on increasing the protection of people, structures, and communities. Funded activities include hazardous fuels reduction, wildfire prevention planning, and wildfire prevention education with an emphasis on improving public health and safety while reducing greenhouse gas emissions. 21 California’s Strategic Fire Plan serves as a roadmap for project development. Projects are evaluated based on the overall benefit to reduce the threat of wildfires to people, structures, and communities. CAL FIRE will consider the wildfire hazards and risk of an area, the geographic balance of projects, and whether the project is complementary to other fire prevention or forest health activities when awarding grants. Disadvantaged communities and low-income communities as defined by Assembly Bill 1550 (Gomez) (Stats. 2016, Ch. 369), and projects that demonstrate a carbon benefit by reducing greenhouse gas emissions and contain matching funds receive additional priority, Projects are selected on a competitive basis and consecutive awards are not guaranteed.
City of Shasta Lake Fire Prevention Efforts with CAL FIRE CCI Funds:
The City of Shasta Lake has been successful in four CCI awards. The City received $59,994 (2018 application), $180,000 (2020 allocation), $1,454,418 (2021 application), and $223,000 (2021 direct grant). The proposed project would allocate $1,374,800 to conduct hazardous fuel reduction of approximately 56.5 acres, manage growing vegetation on 489 acres of previous treated areas, and address hazardous trees along egress/ingress routes on Ashby Rd. and Cascade Blvd. The project will reduce the risk of ignitions and spread while providing safer evacuation and emergency responder access. Upon successful completion, the project area will be added to the City vegetation management list for continued maintenance. Each fuel reduction project the city undertakes moves our community in the right direction to reduce wildfire activity.
The CAL FIRE Wildfire Prevention Grants Program is an excellent funding source for the City to further our fuel reduction efforts. With the funding approved by CAL FIRE after the adoption of the current budget, a supplemental appropriation is required to add funds to the City’s budget.
Staff request City Council to approve the attached resolution, approving a supplemental appropriation in the amount of $1,374,800 and authorizing the City Manager to execute grant documents and any subsequent agreements.
FISCAL IMPACT
Supplemental appropriation not to exceed $1,374,800
The project is 100% grant funded
ATTACHMENTS
Resolution CC-2023-XX
Project Map
DISTRIBUTION
City Council
Finance Department
22 RESOLUTION NO CC-2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE AUTHORIZING
CITY MANAGER TO EXECUTE CAL FIRE CALIFORNIA CLIMATE INVESTMENT GRANT
DOCUMENTS AND ANY SUBSEQUENT AGREEMENTS AND APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $1,374,800 FOR STATE OF
CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE)
CALIFORNIA CLIMATE INVESTMENT WILDFIRE PREVENTION GRANT PROGRAM WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and WHEREAS, the State Department of Forestry and Fire Protection (CAL FIRE) has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies, non-profit organizations, and others under the program; and
WHEREAS, the applicant will enter into an agreement with the State of California to carry out the City of Shasta Lake Hazardous Fuel Reduction Project.
WHEREAS, the grant award was received after the FY2023/24 budget; and WHEREAS, this project is funded from the following program fund:
CAL FIRE 2022-23 Hazardous Fuel Reduction Grant:
Expenditure Account: XXX-XXX-XXXX - $1,374,800
Revenue Account: XXX-XXX-XXXX - $1,374,800
NOW THEREFORE, the City Council of the City of Shasta Lake hereby:
1. Approved the filing of an application for “California Climate Investment Fire Prevention Grant Program”; and
2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and,
3. Certifies that funds under the jurisdiction of the City of Shasta Lake City Council are available to begin the project.
4. Certifies that said applicant will expend funds prior to March 15, 2029.
5. Appoints City Manager or a designee, to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project.
6. Approves a supplemental appropriation in the amount of $1,374,800 23 PASSED, APPROVED, AND ADOPTED this 5th day of September 2023 by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
24 Windsor
Estates
Coeur
D' Alene
Estates
Oakridge
Estates
Ranchera
Pines
Shasta
Gateway
Oak
Knoll
Summit
City Twin Lakes
Pine
Grove
Mountain Gate
at Shasta
SHASTA DAM BLVD
CITY LIMIT
ASHBY RD
PINE GROVE AVE
LAKE BLVD
CITY LIMIT
AKRICH ST
OASIS RD
CITY LIMIT
OLIVER ST
City-Owned Property
41 Acres
City-Owned Property
15.5 Acres
LAKE SHASTA
I
Map Produced: March 9, 2023
0 0.5
Miles
Vegetation Mastication
Fuel Treatment Areas
P:\\GIS\Fire\ProposedFuelReduction_8x11P.mxd
City of Shasta Lake
Proposed Treatment Areas
§¨¦5
Aý
1:33,000
Boundaries and approximate. Not a survey product.
City of Shasta Lake
Treatment Area Total
56.5 Acres
22-WP-SHU 48249869
City of Shasta Lake Hazardous Fuel Reduction Project 25
SHASTA DAM BLVD
CITY LIMIT
ASHBY RD
PINE GROVE AVE
LAKE BLVD
CITY LIMIT
AKRICH ST
OASIS RD
CITY LIMIT
OLIVER ST
Retreatment Area Total
489 Acres
Margaret
Polf Park
Cypress Ave
to White Way
Oak Ridge Estates
Flanagan Rd
Water
Treatment
Plant
Corp Yard
North of Mountain
Lake School
Pine Grove
& Coeur D Alene
Ashby Rd
(Right-of-Way)
Cascade Blvd
Mountain Gate
at Shasta Area Twin Lakes
MHP
Lake Blvd
(Right-of-Way)
Yellow Pine Rd
North of Linda
Vista Rd
North of
Oliver St
LAKE SHASTA
I
Map Produced: March 9, 2023
0 0.5
Miles
Vegetation Spraying
Fuel Treatment Areas
P:\\GIS\Fire\ProposedRetreatment_8x11P.mxd
Federal Land
Completed Projects
Funded Projects
§¨¦5
Aý
1:33,000
Boundaries and approximate. Not a survey product.
City of Shasta Lake
22-WP-SHU 48249869
City of Shasta Lake Hazardous Fuel Reduction Project 26 PO BOX 777 | 4477 Main Street
Shasta Lake, CA 96019
(530) 275-7400
www.cityofshastalake.org
August 24, 2023 VIA ELECTRONIC MAIL ONLY
The Honorable Gail Pellerin
Chair, Assembly Elections Committee
1020 N Street, Room 365
Sacramento, CA 95814
RE: ACA 13 (Ward) Voting Thresholds
Notice of SUPPORT (As Amended 8/17/2023)
Dear Assembly Member Pellerin:
The City of Shasta Lake supports ACA 13 (Ward), which would require any constitutional amendment proposed by initiative, which increases a vote requirement for future measures, be approved by the same proportion of votes cast as the measure would require. The measure would also preserve the right of cities to place advisory questions of the ballot to ask voters their opinion on issues.
Under current law a simple majority of voters (50% plus 1 vote) may vote to require a super majority (for example, 66 and 2/3%) voter approval for future action. This framework has given disproportionate power to a small number of voters, with a little more than 1/3 of the voters being able to prevent the enactment of laws that a majority of voters agree upon.
In fact, at the local level this has made it unnecessarily difficult to pass revenue measures dedicated to critical services such as homelessness and housing, fire, public safety, and roads. For example, from 2001-2018, city revenue measures with a 2/3 vote requirement have enjoyed only a 51% passage rate, compared to a 70% passage rate of all local revenue measures over the same period of time. The status quo has prevented cities from providing desperately needed services.
ACA 13 addresses this issue by simply requiring any initiative that enhances a voter requirement to pass by that same voter requirement. ACA 13 is good government, fair proposal that protects the principles of democracy and majority rule. For these reasons, the City of Shasta Lake supports ACA 13.
Very truly yours,
CITY OF SHASTA LAKE
JESSACA LUGO
City Manager
27 cc. Senator Dahle & Assembly Dahle
Charles Anderson, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected] 28 Report and Recommendations 9
Reviewed and Approved
City Manager
AGENDA ITEM City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager
DATE: September 5, 2023
SUBJECT: Resolution approving a supplemental appropriation of $20,000 for the Caltrans Clean CA Grant and authorizing City Manager to execute necessary agreements pertaining to this grant
FILE NO.: New G-100-020-018
RECOMMENDATION:
Staff recommends the City Council approve a supplemental budget appropriation in the amount of $20,000 for the Clean CA grant to conduct a dump day event and authorize the City Manager to execute necessary agreements pertaining to this grant.
BACKGROUND
The Clean California initiative is a multiyear clean-up effort led by Caltrans to keep roads and waterways free of litter, create jobs, and transform state and local public spaces through beautification efforts. As part of the litter collection component, Caltrans offers grant funding to local agencies to facilitate free dump day events where the public can dispose of household waste safely and properly.
Caltrans has awarded the City of Shasta Lake $20,000 to facilitate a free dump day for the community. The City of Shasta Lake anticipates using the funds to host a large dump day in collaboration with Waste Management where residents can dispose of household trash, bulky items, metal, appliances, and mattresses for free.
Caltrans has provided an Event Agreement to accept the funds and establish responsibilities for the dump day event. With the funding approved after the adoption of the current budget, a supplemental appropriation is required to add it to the City’s budget. 29 FISCAL IMPACT
Supplemental appropriation not to exceed $20,000
The project is 100% grant funded
ATTACHMENTS
Resolution CC-2023-XX
Caltrans Dump Day Event Agreement
DISTRIBUTION
City Council
Finance Department
30 RESOLUTION NO CC-2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING A SUPPLEMENTAL APPROPRIATION OF $20,000 FOR CLEAN CA GRANT AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ANY NECESSARY AGREEMENTS
PERTAINING TO THIS GRANT
WHEREAS, Caltrans’ Clean California initiative aims to keep roads and waterways free of litter, create jobs, and transform state and local spaces through beautification efforts; and WHEREAS, Caltrans has awarded the City of Shasta Lake $20,000 to facilitate a dump day event under the Clean California initiative; and
WHEREAS, the City will utilize the funding to facilitate a free dump day event for the residents of Shasta Lake, and
WHEREAS, an Event Agreement has been issued to accept funds and establish responsibilities; and
WHEREAS, the Event Agreement was received after the FY2023/24 budget; and WHEREAS, this project is funded from the following program fund:
Caltrans Clean CA Dump Day Grant
Expenditure Account: 270-109-6265 - $20,000
Revenue Account: 270-000-4370 - $20,000
NOW THEREFORE, the City Council of the City of Shasta Lake hereby:
1. Approves a supplemental appropriation in the amount of $20,000
2. Authorizes the City Manager to execute any necessary agreements pertaining to this grant.
PASSED, APPROVED, AND ADOPTED this 5th day of September 2023 by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
31 DUMP DAY EVENT AGREEMENT
THIS AGREEMENT is made this __ day of ____2023, by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as CALTRANS; and the City of Shasta Lake, hereinafter referred to as “LOCAL AGENCY”; and collectively referred to as “PARTIES.”
The Clean California initiative is a multiyear clean-up effort led by CALTRANS to keep roads and waterways free of litter, create thousands of jobs, and transform state and local public spaces through beautification efforts. As part of the litter collection component, CALTRANS is proposing free dump day events where the public can dispose of household waste safely and properly for free (Dump Day events).
CALTRANS and LOCAL AGENCY, agree to provide free Dump Day events for LOCAL AGENCY’s residents as part of the Clean California initiative.
PARTIES are authorized to enter into an agreement for improvements to the State Highway System per the California Streets and Highways Code, Sections 114 and 130.
PARTIES MUTALLY AGREE TO DO THE FOLLOWING:
1. PARTIES shall publicize Dump Day events by informing the public that they may dispose of certain household waste items safely and properly for free, at the following location:
• Event Location: Gateway Industrial Park at Shasta Gateway Dr. and Ashby Rd. in Shasta Lake. Dates and times in the locations identified above is to be determined and mutually agreed upon in writing (sample attached as Exhibit A) by authorized representatives of the PARTIES.
2. CALTRANS agrees to reimburse the LOCAL AGENCY 100% (one hundred percent) of cost for, including but not limited to 1labor, equipment and/or dumping fees expended for Dump Day events (Dump Day Costs) up to the maximum Contract Sum stated in this Agreement.
3. CALTRANS has agreed to reimburse LOCAL AGENCY, an amount not to exceed $20,000.00 to fulfill its obligations under this AGREEMENT.
4. CALTRANS’ obligations under this AGREEMENT are subject to the appropriation of resources by the Legislature and the State Budget Act authority. 32 5. Based on the amount of trash collected during the Dump Day events, LOCAL AGENCY shall send its invoices to CALTRANS within 45 days of the Dump Day event for the latter’s share of the Dump Day Costs.
6. LOCAL AGENCY shall send invoices to the Caltrans District Clean CA District (xx) Coordinator. The itemized invoice shall contain the following:
(a) STATE’s Clean California Program Code: CLEANCADMP;
(b) AGREEMENT number;
(c) Date(s) of services;
(d) Location of services;
(e) Number of hours and hourly rates;
(f) Receipts for trash disposal;
(g) Receipts for equipment, materials, and supplies; and (h) LOCAL AGENCY’s Performance Report that includes tonnage and/or cubic yard measurement of litter/debris disposed.
CALTRANS
Kristin Robinson, Clean CA Coordinator D2
1031 Butte St
Redding, CA 96001
Mobile Phone: 530-768-3798
Email: [email protected]
City of Shasta Lake
Whitney Zeller, Community and Economic Development Manager 4477 Main Street
Shasta Lake, CA 96019
Office Phone: 530-275-7427
Email: [email protected]
7. Upon review and approval of invoice by the District Clean California Coordinator, CALTRANS shall pay LOCAL AGENCY within forty-five (45) calendar days of receipt of invoices. Payment will be made in accordance with the CA Prompt Payment Act, and within the time specified in Chapter 4.5, sections 927-927.13 of the Government Code.
8. When publicizing the Dump Day events, PARTIES shall inform the public that no hazardous materials will be accepted at the Transfer Stations/Landfills. However, if 33 LOCAL AGENCY accepts hazardous materials, it shall do so at its own risk and responsibility and CALTRANS shall not pay disposal fees for such hazardous material.
9. Participating members of the public will be responsible for legally transporting waste to the Dump Day event.
10. LOCAL AGENCY shall provide the necessary equipment, tools, personal protective equipment, materials, supplies and products necessary to perform the services under this AGREEMENT including refuse intake inspection by staff qualified to identify hazardous materials, transportation, loading and unloading, and handling of Dump Day refuse.
11. CALTRANS does not accept nor take any responsibility for generation of any waste streams, including hazardous materials, associated with the Dump Day event(s).
12. All services performed by LOCAL AGENCY pursuant to this AGREEMENT are intended to be performed in accordance with all applicable Federal, State and LOCAL AGENCY laws, ordinances, and regulations. In case of a conflict between Federal, State and LOCAL AGENCY laws, ordinances, or regulations, the order of precedence applicability of these laws shall be Federal, State and then LOCAL AGENCY laws and regulations, respectively.
13. The total amount CALTRANS will reimburse to LOCAL AGENCY pursuant to this AGREEMENT shall not exceed $20,000.00 (“Contract Sum”). Costs incurred by LOCAL AGENCY for PROJECT work under this AGREEMENT in excess of the Contract Sum will be borne by LOCAL AGENCY. It is understood and agreed that this AGREEMENT fund limit is an estimate, and that CALTRANS will only reimburse the actual cost of services rendered as authorized by the CALTRANS Contract Manager or designee at or below the fund limitation amount set forth in this AGREEMENT.
14. This AGREEMENT may only be amended or modified by mutual written agreement of the PARTIES.
15. This AGREEMENT will end on June 30, 2024. This AGREEMENT may be terminated by the PARTIES upon mutual written agreement. In the event of a termination CALTRANS will reimburse LOCAL AGENCY all allowable, authorized, and noncancellable obligations and costs incurred by LOCAL AGENCY prior to the termination.
16. Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by LOCAL AGENCY, its contractors, sub-contractors, general public, and/or its agents under or in connection with any work (including hazardous materials), authority, or jurisdiction conferred upon LOCAL AGENCY under this AGREEMENT. It is understood and agreed that LOCAL AGENCY, to the extent permitted by law will defend, indemnify, and save harmless CALTRANS and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by 34 LOCAL AGENCY, its contractors, sub-contractors, general public, and/or its agents under this AGREEMENT. PARTIES will continue to work together to plan future events.
PARTIES are authorized to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and hereby covenant to have followed all the necessary legal requirements to validly execute this AGREEMENT. By signing below, the PARTIES each expressly agree to execute this AGREEMENT electronically.
____________________ __________ ____________________ __________ Michael Webb Date Jessica Lugo Date
Deputy District Director Maintenance City Manager
Caltrans District (D2) City of Shasta Lake
35 1
EXHIBIT A
DUMP DAY Locations and Schedule
• January 20, 2024, between 9am – 1pm at the Gateway Industrial Park at Shasta Gateway Drive and Ashby Road.
____________________ __________ ____________________ __________ Kristin Robinson Date Jessaca Lugo Date
Clean CA Coordinator City Manager
Caltrans District (D02)
36 Report and Recommendations 10
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager
DATE: September 5, 2023
SUBJECT: Request for supplemental appropriation in the amount of $30,000 for State of California Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) and authorization of the City Manager to execute grant documents and any subsequent agreements
FILE NO.: New – G-100-015-060
RECOMMENDATION:
Staff recommends the City Council approve a supplemental budget appropriation in the amount of $30,000 for the Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) and authorize the City Manager to execute necessary agreements pertaining to this grant.
BACKGROUND
OTS STEP Grant Background:
The California Office of Traffic Safety (OTS) provides grant funding opportunities for local law enforcement agencies interested in implementing Selective Traffic Enforcement Programs (STEP) and sobriety checkpoints to heighten awareness of vehicular safety and decrease the number of traffic-related injuries and fatalities. Grants awarded by the OTS are federally funded by the U.S. Department of Transportation/NHTSA and are passed through to OTS to administer at the State level.
City of Shasta Lake Grant Funded Activities:
The City submitted an application for the OTS grant in January 2023 for $127,669 and was notified in July that the City had been selected for a modified award of $30,000. The City of Shasta Lake contracts with the Shasta County Sheriff’s Office to provide all law enforcement services, including traffic enforcement within the City. The OTS STEP grant would allow the City 37 to provide funding to the Sheriff’s Shasta Lake Station to conduct a DUI checkpoint, saturated patrols, purchase speed enforcement radar equipment, and allow officers to attend training events. These strategies are aimed at reducing collisions/fatalities and serve to act as a deterrent by providing media attention and awareness throughout the community.
OTS has provided a Grant Agreement to accept the funds. With the funding approved after the adoption of the current budget, a supplemental appropriation is required to incorporate it into the City’s budget.
FISCAL IMPACT
Supplemental appropriation not to exceed $30,000
The program is 100% grant funded
ATTACHMENTS
Resolution CC-2023-XX
OTS Draft Grant Agreement
DISTRIBUTION
City Council
Finance Department
38 RESOLUTION NO CC-2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE AUTHORIZING
CITY MANAGER TO EXECUTE OFFICE OF TRAFFIC SAFETY (OTS) SELECTIVE TRAFFIC
ENFORCEMENT PROGRAM (STEP) GRANT DOCUMENTS AND ANY SUBSEQUENT
AGREEMENTS AND APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $30,000 FOR THE OTS STEP GRANT
WHEREAS, the U.S. Department of Transportation and the National Transportation Safety Administration provide funding for the Selective Traffic Enforcement Program; and WHEREAS, the State of California Office of Traffic Safety administers the Selective Traffic Enforcement Program Grant; and
WHEREAS, the City of Shasta Lake applied for OTS STEP grant funding and was awarded $30,000 for traffic enforcement activities to be conducted by the Shasta County Seriff’s Office; and
WHEREAS, the grant award was received after the FY2023/24 budget; and WHEREAS, this project is funded from the following program fund:
OTS STEP Grant:
Expenditure Account: XXX-XXX-XXXX - $30,000
Revenue Account: XXX-XXX-XXXX - $30,000
NOW THEREFORE, the City Council of the City of Shasta Lake hereby:
1. Appoints City Manager or a designee, to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned program.
2. Approves a supplemental appropriation in the amount of $30,000 PASSED, APPROVED, AND ADOPTED this 5th day of September 2023 by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
39 8/29/2023 11:19:43 AM Page 1 of 15
State of California – Office of Traffic Safety
GRANT AGREEMENT
GRANT NUMBER
PT24193
1. GRANT TITLE
Selective Traffic Enforcement Program (STEP)
2. NAME OF AGENCY 3. Grant Period
Shasta Lake From:
To:
10/01/2023
09/30/2024 4. AGENCY UNIT TO ADMINISTER GRANT
Shasta Lake Community and Economic Development
Department
5. GRANT DESCRIPTION
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect.
6. Federal Funds Allocated Under This Agreement Shall Not Exceed: $30,000.00
7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:
Schedule A – Problem Statement, Goals and Objectives and Method of Procedure Schedule B – Detailed Budget Estimate and Sub-Budget Estimate (if applicable) Schedule B-1 – Budget Narrative and Sub-Budget Narrative (if applicable) Exhibit A – Certifications and Assurances
Exhibit B* – OTS Grant Program Manual
Exhibit C – Grant Electronic Management System (GEMS) Access *Items shown with an asterisk (*), are hereby incorporated by reference and made a part of this agreement as if attached hereto.
These documents can be viewed at the OTS home web page under Grants: www.ots.ca.gov.
We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the above described Grant terms and conditions.
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
8. Approval Signatures
A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL
NAME:
TITLE:
EMAIL:
PHONE:
ADDRESS:
Whitney Zeller
Community & Economic Development Manager
[email protected]
(530) 275-7427
4477 Main Street
Shasta Lake, CA 96019
NAME:
TITLE:
EMAIL:
PHONE:
ADDRESS:
Jessaca Lugo
City Manager
[email protected]
(530) 275-7464
4477 Main Street
Shasta Lake, CA 96019
(Signature) (Date) (Signature) (Date)
C. FISCAL OFFICIAL D. AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETY NAME:
TITLE:
EMAIL:
PHONE:
ADDRESS:
Wendy Howard
Finance Director
[email protected]
(530) 275-7429
4477 Main Street
Shasta Lake, CA 96019
NAME:
TITLE:
EMAIL:
PHONE:
ADDRESS:
Barbara Rooney
Director
[email protected]
(916) 509-3030
2208 Kausen Drive, Suite 300
Elk Grove, CA 95758
(Signature) (Date) (Signature) (Date)
40 8/29/2023 11:19:43 AM Page 2 of 15
10. PROJECTED EXPENDITURES
FUND CFDA ITEM/APPROPRIATION F.Y. CHAPTER STATUTE PROJECTED
EXPENDITURES
AGREEMENT
TOTAL $30,000.00
AMOUNT ENCUMBERED BY THIS DOCUMENT
I CERTIFY upon my own personal knowledge that the budgeted funds for the current budget year are available for the period and purpose of the expenditure stated above.
$30,000.00
PRIOR AMOUNT ENCUMBERED FOR THIS
AGREEMENT
$ 0.00
OTS ACCOUNTING OFFICER’S SIGNATURE DATE SIGNED TOTAL AMOUNT ENCUMBERED TO DATE $30,000.00
E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY 9. SAM INFORMATION NAME: Carolyn Vu SAM #:
REGISTERED
ADDRESS:
CITY:
ZIP+4:
GLGABEJMWYF6
4477 Main St
Shasta Lake
96019-0777
ADDRESS: 2208 Kausen Drive, Suite 300
Elk Grove, CA 95758
41 8/29/2023 11:19:43 AM Page 3 of 15
State of California – Office of Traffic Safety
GRANT AGREEMENT
Schedule A
GRANT NUMBER
PT24193
1. PROBLEM STATEMENT
The Shasta County Sheriff’s Office operates under contractual agreement with the City of Shasta Lake to provide all law enforcement services, including traffic enforcement. As a low-income community with a stringent budget, the City of Shasta Lake Station runs with minimal equipment, training, and enforcement operations, and does not have the fiscal means to expand or maximize enforcement efforts to reduce traffic crashes. SCSO deputies assigned to the City of Shasta Lake Station typically are given training on Standardized Field Sobriety Testing, however, inadequate funding creates a gap for advanced training in alcohol and/or narcotic impairment detection. The City relies heavily on grant opportunities and outside funding to subsidize law enforcement operations beyond their regular activities. Most recently, through the Cannabis Tax Fund Grant Program, the City was able to utilize grant funding to conduct DUI Checkpoints and saturation patrols in collaboration with other local agencies. The DUI checkpoint in Shasta Lake resulted in screening of 469 vehicles, 16 drivers stopped for further investigation, 7 field sobriety tests, 1 DUI arrest, and 1 citation for driving under a suspended license. The 8 saturation patrols conducted resulted in 19 arrests for violations including DUI and possession of illegal narcotics. These operations are necessary to highlight law enforcement presence in the City and discourage driving under the influence.
2. PERFORMANCE MEASURES
A. Goals:
1. Reduce the number of persons killed in traffic crashes.
2. Reduce the number of persons injured in traffic crashes.
3. Reduce the number of pedestrians killed in traffic crashes.
4. Reduce the number of pedestrians injured in traffic crashes.
5. Reduce the number of bicyclists killed in traffic crashes.
6. Reduce the number of bicyclists injured in traffic crashes.
7. Reduce the number of persons killed in alcohol-involved crashes.
8. Reduce the number of persons injured in alcohol-involved crashes.
9. Reduce the number of persons killed in drug-involved crashes.
10. Reduce the number of persons injured in drug-involved crashes.
11. Reduce the number of persons killed in alcohol/drug combo-involved crashes.
12. Reduce the number of persons injured in alcohol/drug combo-involved crashes.
13. Reduce the number of motorcyclists killed in traffic crashes.
14. Reduce the number of motorcyclists injured in traffic crashes.
15. Reduce hit & run fatal crashes.
16. Reduce hit & run injury crashes.
17. Reduce nighttime (2100 - 0259 hours) fatal crashes.
18. Reduce nighttime (2100 - 0259 hours) injury crashes.
B. Objectives: Target Number
1. Issue a press release announcing the kick-off of the grant by November 15. The kick-off press releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 14 days prior to the issuance date of the release.
1 2. Participate and report data (as required) in the following campaigns; Quarter 1:
National Walk to School Day, National Teen Driver Safety Week, NHTSA Winter Mobilization; Quarter 3: National Distracted Driving Awareness Month, National Motorcycle Safety Month, National Bicycle Safety Month, National Click it or Ticket Mobilization; Quarter 4: NHTSA Summer Mobilization, National Child Passenger Safety Week, and California's Pedestrian Safety Month.
10 3. Develop (by December 31) and/or maintain a “DUI BOLO” program to notify patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. Updated DUI BOLOs should be distributed to patrol and traffic officers monthly. 12 42
8/29/2023 11:19:43 AM Page 4 of 15
4. Send law enforcement personnel to the NHTSA Standardized Field Sobriety Testing (SFST) (minimum 16 hours) POST-certified training. 2 5. Send law enforcement personnel to the NHTSA Advanced Roadside Impaired Driving Enforcement (ARIDE) 16 hour POST-certified training. 2 6. Send law enforcement personnel to the Drug Recognition Expert (DRE) training. 2
7. Conduct DUI/DL Checkpoints. A minimum of 1 checkpoint should be conducted during the NHTSA Winter Mobilization and 1 during the Summer Mobilization. To enhance the overall deterrent effect and promote high visibility, it is recommended the grantee issue an advance press release and conduct social media activity for each checkpoint. For combination DUI/DL checkpoints, departments should issue press releases that mention DL's will be checked at the DUI/DL checkpoint. Signs for DUI/DL checkpoints should read "DUI/Driver's License Checkpoint Ahead." OTS does not fund or support independent DL checkpoints. Only on an exception basis and with OTS pre-approval will OTS fund checkpoints that begin prior to 1800 hours. When possible, DUI/DL Checkpoint screeners should be DRE- or ARIDE-trained.
1 8. Conduct DUI Saturation Patrol operation(s). 7
9. Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
3. METHOD OF PROCEDURE
A. Phase 1 – Program Preparation (1st Quarter of Grant Year) Develop operational plans to implement the “best practice” strategies outlined in the objectives section.
All training needed to implement the program should be conducted in the first quarter. All grant related purchases needed to implement the program should be made in the first quarter.
Media Requirements
Issue a press release approved by the OTS PIO announcing the kick-off of the grant by November 15, but no sooner than October 1. The kick-off release must be approved by the OTS PIO and only distributed after the grant is fully signed and executed. If you are unable to meet the November 15 deadline to issue a kick-off press release, communicate reasons to your OTS coordinator and OTS PIO.
B. Phase 2 – Program Operations (Throughout Grant Year) Media Requirements
The following requirements are for all grant-related activities:
Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS coordinator. Optimum lead time would be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the Coordinator.
Pre-approval is not required when using any OTS-supplied template for media advisories, press releases, social media graphics, videos or posts, or any other OTS-supplied educational material.
However, copy the OTS PIO at [email protected] and your OTS coordinator when any material is distributed to the media and public, such as a press release, educational material, or link to social media post. The OTS-supplied kick-off press release templates and any kickoff press releases are an exception to this policy and require prior approval before distribution to the media and public.
If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy to your OTS Coordinator. Optimum lead time would be 7 days prior to the scheduled release date, but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
43 8/29/2023 11:19:43 AM Page 5 of 15
Press releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are exempt from the OTS PIO approval process. The OTS PIO and your Coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are exempt from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your Coordinator with embargoed date and time or with “INTERNAL ONLY: DO NOT RELEASE” message in subject line of email. Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval. Please send to the OTS PIO at [email protected] for approval and copy your grant coordinator at least 3 business days prior to the scheduled release date.
Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.
Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS Coordinator for approval prior to the production or duplication. Use the following standard language in all press, media, and printed materials, space permitting:
Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration. Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult your OTS Coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo. Email the OTS PIO at [email protected] and copy your OTS Coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so OTS has sufficient notice to arrange for attendance and/or participation in the event.
If unable to attend, email the OTS PIO and coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of event within 7 days following significant grantrelated event or program. Media and program highlights are to be reflected in QPRs. Any press releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received PIO approval in a prior grant year needs to be resubmitted for approval in the current grant year.
Contact the OTS PIO or your OTS Coordinator for consultation when changes from any of the above requirements might be warranted.
C. Phase 3 – Data Collection & Reporting (Throughout Grant Year)
1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)
2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
Collect and report quarterly, appropriate data that supports the progress of goals and objectives. Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.
Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
Collect, analyze and report statistical data relating to the grant goals and objectives.
4. METHOD OF EVALUATION
44 8/29/2023 11:19:43 AM Page 6 of 15
Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.
5. ADMINISTRATIVE SUPPORT
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.
45 8/29/2023 11:19:43 AM Page 7 of 15
State of California – Office of Traffic Safety
GRANT AGREEMENT
Schedule B
GRANT NUMBER
PT24193
FUND NUMBER CATALOG
NUMBER (CFDA)
FUND DESCRIPTION TOTAL AMOUNT
164AL-24 20.608 Minimum Penalties for Repeat
Offenders for Driving While
Intoxicated
$15,000.00
402PT-24 20.600 State and Community Highway
Safety
$15,000.00
COST CATEGORY FUND
NUMBER
UNIT COST OR
RATE
UNITS TOTAL COST TO
GRANT
A. PERSONNEL COSTS
Straight Time
$0.00
Overtime
DUI/DL Checkpoints 164AL-24 $1,200.00 2 $2,400.00
DUI Saturation Patrols 164AL-24 $1,600.00 6 $9,600.00
Benefits- 164 OT @ 3.3% 164AL-24 $1,200.00 1 $40.00
Traffic Enforcement 402PT-24 $1,600.00 4 $6,400.00
Benefits- 402 OT @ 3.3% 402PT-24 $6,400.00 1 $211.00
Category Sub-Total $18,651.00
B. TRAVEL EXPENSES
In State Travel 402PT-24 $3,389.00 1 $3,389.00
$0.00
Category Sub-Total $3,389.00
C. CONTRACTUAL SERVICES
$0.00
Category Sub-Total $0.00
D. EQUIPMENT
$0.00
Category Sub-Total $0.00
E. OTHER DIRECT COSTS
Radar Device 402PT-24 $2,500.00 2 $5,000.00
DUI Checkpoint Supplies 164AL-24 $2,960.00 1 $2,960.00
Category Sub-Total $7,960.00
F. INDIRECT COSTS
$0.00
Category Sub-Total $0.00
GRANT TOTAL $30,000.00
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State of California – Office of Traffic Safety
GRANT AGREEMENT
Schedule B-1
GRANT NUMBER
PT24193
BUDGET NARRATIVE
PERSONNEL COSTS
DUI/DL Checkpoints - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.
DUI Saturation Patrols - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.
Benefits- 164 OT @ 3.3% - Benefit BreakdownFICA = 1.4% Unemployment = 0.02%
Workers Comp = 0.8%
Liability = 1.06%
Traffic Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.
Benefits- 402 OT @ 3.3% - Benefit BreakdownFICA = 1.4% Unemployment = 0.02%
Workers Comp = 0.8%
Liability = 1.06%
TRAVEL EXPENSES
In State Travel - Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. Anticipated travel may include the California Traffic Safety Summit (November 7-8, 2023, in Orange County) and the OTS Traffic Safety Law Enforcement Forum. All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.
CONTRACTUAL SERVICES
-
EQUIPMENT
-
OTHER DIRECT COSTS
Radar Device - To measure the speed of motor vehicles. This device will be used for speed enforcement.
DUI Checkpoint Supplies - On-scene supplies needed to conduct sobriety checkpoints. Costs may include 28" traffic cones, MUTCD compliant traffic signs, MUTCD compliant high visibility vests (maximum of 10), traffic counters (maximum of 2), generator, gas for generators, lighting, reflective banners, electronic flares, PAS Device/Calibration Supplies, heater, propane for heaters, fan, anti-fatigue mats, and canopies.
Additional items may be purchased if approved by OTS. The cost of food and beverages will not be reimbursed. Each item must have a unit cost of less than $5,000 (including tax and shipping).
INDIRECT COSTS
-
STATEMENTS/DISCLAIMERS
There will be no program income generated from this grant.
Nothing in this “agreement” shall be interpreted as a requirement, formal or informal, that a particular law enforcement officer issue a specified or predetermined number of citations in pursuance of the goals and objectives here under.
Benefits for personnel costs can only be applied to straight time or overtime hours charged to the grant. 47 8/29/2023 11:19:43 AM Page 9 of 15
State of California – Office of Traffic Safety
GRANT AGREEMENT
Exhibit A
GRANT NUMBER
PT24193
Certifications and Assurances for Fiscal Year 2024 Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117-58) The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding. Applicable provisions include, but are not limited to, the following:
GENERAL REQUIREMENTS
The State will comply with applicable statutes and regulations, including but not limited to:
23 U.S.C. Chapter 4—Highway Safety Act of 1966, as amended; Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58; 23 CFR part 1300—Uniform Procedures for State Highway Safety Grant Programs; 2 CFR part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
2 CFR part 1201—Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
NONDISCRIMINATION
(applies to all subrecipients as well as States)
The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing regulations relating to nondiscrimination (“Federal Nondiscrimination Authorities”). These include but are not limited to:
Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); 28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964); The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex); Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27; The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federallyfunded or not); Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38; Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and LowIncome Populations (preventing discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations);
Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (requiring that recipients of Federal financial assistance provide meaningful access for applicants and beneficiaries who have limited English proficiency (LEP));
Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities through the Federal Government (advancing equity across the Federal Government); and Executive Order 13988, Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation (clarifying that sex discrimination includes discrimination on the grounds of gender identity or sexual orientation).
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The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively.
GENERAL ASSURANCES
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:
“No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal financial assistance from DOT, including NHTSA.” The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.
SPECIFIC ASSURANCES
More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:
1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in 49 CFR part 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facility”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.
2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:
“The [name of Recipient], in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”
3. The Recipient will insert the clauses of appendix A and E of this Assurance (also referred in every contract or agreement subject to the Acts and the Regulations.
4. The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.
5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith.
6. That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property.
7. That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.
8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:
a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or b. the period during which the Recipient retains ownership or possession of the property.
9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.
10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance. 49 8/29/2023 11:19:43 AM Page 11 of 15
By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any sub-recipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.
The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient.
THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)
The Subgrantee will provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b. Establishing a drug-free awareness program to inform employees about:
1. The dangers of drug abuse in the workplace;
2. The grantee's policy of maintaining a drug-free workplace;
3. Any available drug counseling, rehabilitation, and employee assistance programs;
4. The penalties that may be imposed upon employees for drug violations occurring in the workplace;
5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a);
c. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will—
1. Abide by the terms of the statement;
2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d. Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction;
e. Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted—
1. Taking appropriate personnel action against such an employee, up to and including termination;
2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
f. Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above.
POLITICAL ACTIVITY (HATCH ACT)
(applies to all subrecipients as well as States)
The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.
CERTIFICATION REGARDING FEDERAL LOBBYING
(applies to all subrecipients as well as States)
CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 50 8/29/2023 11:19:43 AM Page 12 of 15
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;
3. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
RESTRICTION ON STATE LOBBYING
(applies to subrecipients as well as States)
None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal.
CERTIFICATION REGARDING DEBARMENT AND SUSPENSION
(applies to all subrecipients as well as States)
INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES)
1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.
2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.
3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment.
4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.
5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations.
6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.
7. The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.
8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or 51 8/29/2023 11:19:43 AM Page 13 of 15
otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
(https://www.sam.gov/).
9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default.
CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS—
PRIMARY TIER COVERED TRANSACTIONS
1. The prospective primary tier participant certifies to the best of its knowledge and belief, that it and its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency; b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default.
2. Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal.
INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION
1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.
2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.
3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.
4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations.
5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.
6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.
7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or 52 8/29/2023 11:19:43 AM Page 14 of 15
otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).
8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.
CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION—
LOWER TIER COVERED TRANSACTIONS
1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.
2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.
BUY AMERICA
(applies to subrecipients as well as States)
The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation.
CERTIFICATION ON CONFLICT OF INTEREST
(applies to subrecipients as well as States)
GENERAL REQUIREMENTS
No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy:
1. The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations.
2. The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct.
53 8/29/2023 11:19:43 AM Page 15 of 15
DISCLOSURE REQUIREMENTS
No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy:
1. The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict.
2. NHTSA will review the disclosure and may require additional relevant information from the recipient. If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict.
3. Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.
PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to all subrecipients as well as States)
The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists.
POLICY ON SEAT BELT USE
In accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website (www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references.
POLICY ON BANNING TEXT MESSAGING WHILE DRIVING
In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving companyowned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving. 54 Report and Recommendations 11
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: James Takehara, Electric Utility Director
DATE: August 30, 2023
SUBJECT: Supplemental Budget Appropriation for Power Supply Purchases FILE NO.: E-090-640-565
RECOMMENDATION:
Staff requests that the City Council consider approving a supplemental budget appropriation of $11.0 million and $26.2 million for 2024 and 2025, respectively, to facilitate power purchases that will be recorded to 520-330-5202 (Power Supply – Industrial Pass Through).
BACKGROUND
Under Resolution CC-14-65, the City Council delegates authority to the City Manager to authorize purchase and sale agreements for certain wholesale power supply commodities on the City’s behalf, provided that the funds for these purchases are budgeted by the City Council.
Staff has been coordinating closely with the City’s largest industrial customer and collectively a set of power supply products that would meet its bulk electric needs for 2024 and 2205. However, additional funding approval is required of the City Council to fully authorize these power purchases. Costs of these power supply contracts will be passed through on a cost basis exclusively to this single customer and would not impact electric rates for the rest of the electric customer base, commonly referred to “native load.”
The original budget amounts established for this time period were created and approved in early 2022 based on wholesale electricity market conditions that existed at that time and included approximately $17 million and $21 million for power supply costs in FY 23 and FY 24, respectively.
Since then, the markets have experienced substantial price swings and have only recently stabilized at elevated levels.
The FY 23 budget was modified by the City Council on March 21, 2023 by increasing the FY 23 power supply budget by $11 million. Staff did not seek changes to the FY 24 power supply budget 55 as part of the midyear process since market conditions continued to show wide price fluctuations.
Instead, staff planned to seek additional City Council authorizations at a time closer to when power purchases were contemplated, which is now.
To secure power supply under current conditions for FY 24, excluding “native load,” staff requests the City Council to consider approving supplemental budget appropriations of $11 million for power supply purchases, which is the same incremental change requested and approved for the prior fiscal year in the midyear budget process.
On February 15, 2022, City Council adopted Resolution CC-2022-26, which established the first budget appropriation for power supply for 2025, in the amount of $6.69 million. However, this action only established funding to allow for a specific power supply purchase staff executed for “native load.” Under the current staff report, staff requests the City Council to consider a supplemental budget appropriation of $26.2 million that would facilitate all expected power supply costs for the period.
FISCAL IMPACT
Approving the requests for supplemental budget appropriations of $11.0 million and $26.2 million for 2024 and 2025 would establish total budget appropriations for power supply purpose of $32,032,363.00 and $32,885,522.00. For comparison, the total approved budget for FY 23, after the midyear process, is $32,032,363.00 and City Council approved $35 million for 2026 and 2027 by Resolution CC 2023-42 approved on June 20, 2023.
ATTACHMENTS
Resolution
DISTRIBUTION
56 RESOLUTION CC-2023-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING
SUPPLEMENTAL BUDGET APPROPRIATIONS OF FOR
2024 AND 2025 FOR POWER SUPPLY PURPOSES
WHEREAS, in 2014, the City Council adopted Resolution CC-14-65, which authorized the purchase and sale of energy and the environmental attributes of energy, and energy delivery; provided that funds for purchases are budgeted by the City Council; and WHEREAS, wholesale power markets in California and neighboring states have experienced historically unprecedented elevated and sustained market price conditions that appear to be driven largely by state-level policies; and
WHEREAS, staff desires to finalize certain wholesale power supply purchases for 2024 and 2025 for non- “native load;” and
NOW, THEREFORE, BE IT RESOLVED that the City of Shasta Lake City Council authorizes the purchase or sell energy and environmental attributes of energy and transmission delivery for calendar years 2024 and 2025, modifying existing appropriations by $11.0 million and $26.2 million, respectively.
BE IT FURTHER RESOLVED that the budget appropriations authorized under this Resolution shall be superseded by the budget amounts approved by the City Council for fiscal years 2025 and 2026 for account codes 520-330-5208, 520-330-5201, 520-330-5202, and 520-330-5305.
PASSED, APPROVED, AND ADOPTED this 5th day of September 2023 by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 72
73 74
75 76
77 78
79 80
81 82
83 Report and Recommendations 13
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Shelby Millingar, Associate Civil Engineer
DATE: September 5, 2023
SUBJECT: Consultant Contract Award - Centimudi Water Storage Tank Engineering Design Services and Services During Construction
FILE NO.: W-100-763-609
RECOMMENDATION:
Staff requests that the City Council award the Centimudi Water Storage Tank Engineering Design Services and Services During Construction Professional Services Agreement contract to PACE Engineering of Redding, CA in the amount of $284,314.00 and approve a total of $300,000.00 to allow for a contract contingency.
BACKGROUND:
In the 2016-2026 Water Master Plan (WMP), the City of Shasta Lake addressed existing water storage capacity deficiencies for raw and treated water. It was recommended that both raw and treated capacities be increased, and so PACE was hired to analyze potential sites selected by City staff for a new finished water storage tank. The preferred tank site identified in the technical memorandum was the flat, cleared area at the southeast corner of Lake Blvd and Kennett Rd.
This site was preferred due to minimal earthwork required for construction and was also the best site for maintaining existing water pressures in the City’s transmission and distribution systems.
Regarding long-term improvements, after completion of the new finished water storage tank the two existing finished water storage tanks at the Water Treatment Plant will be removed and replaced with a higher capacity raw water storage tank.
The City, having chosen this site and obtaining approval from the United States Forest Service (USFS), the property owner, hired Montrose Environmental Solutions to perform environmental studies and prepare CEQA documents and to assist USFS with NEPA documents. As the environmental phase is close to completion, tank design will begin. 84 SELECTION PROCESS
On May 31, 2023 a formal RFQ&P outlining the scope of the project was advertised on ciplist.com and on the City’s website. Proposals were required to include services fees for the entire scope of services in a separate envelope to be opened after the proposal ranking and interview process.
On July 21, 2023 the proposal period closed with the City receiving two proposals.
A review and selection committee was formed with City staff members from the Public Works department. Upon completion of the review process, the committee found that PACE Engineering was the most qualified firm and possessed the necessary technical expertise that would allow the project to be completed successfully.
City staff then talked with Pace Engineering personnel to refine the scope of services and provide clear guidance to the Consultant. Additionally, it was necessary to include additional CDBG requirements in the contract that were unknown at the time the RFP was released were included in the contract. This resulted in a slightly modified scope of work and fee from what was originally proposed. City staff is satisfied that the final negotiated scope of work will both address the goals of the project and fulfill the requirements of the CDBG grant.
FISCAL IMPACTS:
This project is 100% funded through CDBG DR grant funds.
ATTACHMENTS:
Location Map, Draft Professional Services Agreement with Scope & Fee DISTRIBUTION:
City Council
85 86
RESOLUTION CC 2023-xx
________________________________________________________________________________
A RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL TO AWARD THE
CENTIMUDI WATER STORAGE TANK ENGINEERING DESIGN SERVICES AND
SERVICES DURING CONSTRUCTION PROFESSIONAL SERVICES CONTRACT TO PACE ENGINEERING OF REDDING, CA IN THE AMOUNT OF $284,314.00 AND APPROVE A TOTAL OF $300,000.00 TO ALLOW FOR A CONTRACT CONTINGENCY.
WHEREAS, the City applied for and received CDBG Disaster Relief Grant Funding; and WHEREAS, a portion of the grant proceeds are for the Centimudi Water Storage Tank Project; and, WHEREAS, the City has issued a Request for Qualifications and Proposals, received, and reviewed said proposals, selected the most qualified firm to provide professional services for the project, and negotiated an acceptable scope of work and fee for said services.
WHEREAS, this project is funded from the following project fund:
Expenditure Account: 223-340-6262
NOW, THEREFORE BE IT RESOLVED THAT:
The City of Shasta Lake City Council authorizes staff to enter into a professional services agreement contract with PACE Engineering of Redding, CA for professional services related to the Centimudi Water Storage Tank Engineering Design Services and Services During Construction project in the amount of $284,314.00 and approve a total of $300,000.00 to allow for a contract contingency.
PASSED, APPROVED AND ADOPTED this 5th day of September 2023 by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
87 PROFESSIONAL SERVICES AGREEMENT BETWEEN
THE CITY OF SHASTA LAKE AND PACE ENGINEERING
THIS AGREEMENT is entered into between the City of Shasta Lake ("City") and PACE Engineering ("Consultant") for the purpose of providing engineering services related to the design of the Centimudi water storage tank. The effective date of this agreement shall be September 12, 2023.
1. SCOPE OF SERVICES
Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in Exhibit A (Scope of Work).Consultant warrants that it possesses the experience, background, and expertise necessary to perform the services described in Exhibit A, and Consultant agrees that it shall provide the services at the time, place and in the manner specified in Exhibit A.
No verbal agreement or conversation with any officer, agent or employee of City, either before, during or after the execution of this Agreement shall affect or modify any of the terms or conditions contained in this Agreement, nor shall any such verbal agreement or conversation entitle Consultant to any additional payment whatsoever under the terms of this Agreement.
2. COMPENSATION AND REIMBURSEMENT OF COSTS
Consultant shall not be compensated for services outside the Scope of Services outlined in Section 1 above unless, prior to the commencement of such services:
A. Consultant notifies City and City agrees that such services outside the scope of Exhibit A are to be performed;
B. Consultant estimates the additional compensation required for the additional services, and
C. City, after notice, approves the additional services and amount of compensation therefore.
City shall pay Consultant for services rendered pursuant to this Agreement in a total amount not to exceed $284,314.00, as described in Exhibit A. This payment shall be the only payment to be made to Consultant for services rendered pursuant to this Agreement unless, pursuant to Section I above, City approves additional compensation for additional services.
Consultant shall submit monthly invoices to City for work completed and reasonable expenses incurred to the date of the invoice. All invoices shall be itemized to reflect the tasks completed and the amount billed for each task.
City shall pay all out-of-pocket travel, lodging and incidental expenses incurred by Consultant that are reasonably associated with the provision of services under this Agreement. These expenses shall be compensated by City at their cost to Consultant. Consultant shall keep receipts for such expenses in compliance with IRS requirements. These receipts shall be available to City for inspection upon request. 88 Professional Services Agreement Page 2 of 10
All invoices sent by Consultant to City shall be paid within thirty (30) days of receipt. All billings that remain unpaid after thirty (30) days shall bear interest until paid at the rate of five percent (5%) per annum or the maximum rate allowed by law, whichever is less.
If City fails to pay any invoice within thirty (30) days and such failure continues ten (10) days after Consultant gives City notice of such failure, Consultant shall have the right to terminate this Agreement immediately without liability to City. The right to terminate under the terms of this section shall be in addition to all other legal, equitable, or contractual remedies available to Consultant.
3. TERM OF AGREEMENT
This Agreement shall commence on September 12, 2023 and shall terminate effective December 31, 2025.
4. CITY’S DUTIES
The City shall make its facilities accessible to Consultant as required for performance of its services and shall provide labor and safety equipment as required by Consultant for such access. City agrees to cooperate with Consultant and be reasonably available to confer with Consultant upon request, to keep Consultant informed of developments and to disclose to Consultant all facts and circumstances of which City is aware which may bear upon Consultant’s handling of the matter. City agrees to provide Consultant with such documents and information as City may possess relating to the matter, and to abide by all terms of this Agreement.
5. ADVERTISEMENTS, PERMITS, ACCESS
Unless otherwise agreed to in the Scope of Services, the City shall obtain, arrange and pay for all advertisements for bids, permits and licenses required by local, state or federal authorities.
Consultant represents and warrants to City that it has all licenses, permits, qualifications and approvals of any nature whatsoever which are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, and approvals which are legally required for Consultant to practice its profession.
6. RELATIONSHIP OF PARTIES, NO THIRD-PARTY BENEFICIARIES Consultant is an independent contractor under this Agreement. This Agreement gives no rights or benefits to anyone not named as a party to this Agreement, and there are no third party beneficiaries to this Agreement.
7. SUBCONTRACTS
Consultant may use the services of independent contractors to perform a portion of its obligations under this Agreement without prior written approval by City. Independent contractors and subcontractors shall be provided with a copy of this Agreement and shall agree to be bound by its terms. Consultant shall be the responsible party with respect to all actions of its independent contractors and subcontractors, and shall obtain such insurance and indemnity provisions from its contractors and subcontractors the City shall determine to be necessary.
89 Professional Services Agreement Page 3 of 10
8. NO DISCRIMINATION
In the performance of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, sexual orientation or medical condition. Consultant shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, religion, color, sex, national origin, sexual orientation or medical condition. Such actions shall include, but not be limited to, the following:
employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training.
9. INSURANCE REQUIREMENTS
9.1 To the fullest extent allowed by law, the Contractor/Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor/Consultant, its agents, representatives, or employees.
Errors & Omissions Liability Insurance requirements apply to Consultants performing Professional Services. Construction contractors may disregard this coverage unless specifically required by the Contract Documents.
9.2 Minimum Scope of Insurance:
Coverage shall be at least as broad as:
a) Insurance Services Office Commercial General Liability coverage (occurrence Form CG 00 01). b) Insurance Services Office Form Number CA 00 01 covering Automobile Liability, Code 1 (any auto).
c) Workers’ Compensation insurance as required by the State of California and Employers’ Liability insurance.
d) Errors & Omissions Liability insurance appropriate to the consultant’s profession. Architects’ and engineers’ coverage is to be endorsed to include contractual liability.
9.3 Minimum Limits of Insurance:
1. General Liability:
(Including operations,
products and completed
operations, as applicable.)
$1,000,000 Combined single limit per
occurrence, including operations,
products and completed operations.
$2,000,000 Aggregate limit for bodily injury,
personal, personal injury and
property damage.
2. Comprehensive Automobile
Liability:
$1,000,000 Owned, non-owned, hired vehicles
3. Workers’ Compensation: As required by the Labor Code of the State of California
4. Employers’ Liability: $1,000,000 Per occurrence, bodily injury by disease
$1,000,000 Each employee, bodily injury by
disease
90 Professional Services Agreement Page 4 of 10
5. Errors & Omissions Liability: $1,000,000
$2,000,000
Per occurrence
Aggregate Limit
6. Pollution Liability
(required when work
includes asbestos or lead
paint)
$1,000,000
$2,000,000
Per occurrence
Aggregate Limit
9.4 Deductibles and Self-Insured Retentions:
1. Any deductibles or self-insured retentions must be disclosed to and approved by the City, and shall not reduce the limits of liability. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor/Consultant shall provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
2. Policies containing any self-insured retention provisions shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or the City.
9.5 Other Insurance Provisions:
1. It shall be a requirement under this agreement that any available insurance proceeds in excess of the specified minimum Insurance coverage requirements and limits shall be available to the Additional Insured. Furthermore, the requirements for coverage and limits shall be a) the minimum coverage and limits specified in this Agreement or b) the full coverage and maximum limits of any Insurance proceeds available to the named insured, whichever is greater.
2. Where subcontractors/ subconsultants are used, the Contractor/Consultant agrees to include in their subcontract the same requirements and provisions of this agreement, including the indemnity and insurance requirements to the extent they apply to the scope of the subcontractor’s/ subconsultant’s work. Subcontractors/ subconsultants hired by the Contractor/Consultant agree to be bound to the Contractor/Consultant and the City in the same manner and to the same extent as the Contractor/Consultant is bound to the City under the Contract Documents. Subcontractors/ Subconsultants further agree to include the same requirements and provisions of the contract agreement, including the indemnity and insurance requirements, with any sub-subcontractors/sub-subconsultants to the extent they apply to the scope of the sub-subcontractor’s/sub-subconsultant’s work. A copy of the City’s Contract Documents, including the indemnity and insurance provisions, shall be furnished to the subcontractor/subconsultant upon request.
Subcontractors/Subconsultants responsibility for defense and indemnity obligations shall survive the termination or completion of the contract agreement for the full period of time allowed by law.
3. The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non91 Professional Services Agreement Page 5 of 10
contributory basis for the benefit of the City (if agreed to in a written contract or agreement) before the City’s own insurance shall be called upon to protect it as a named insured.
4. The defense and indemnification obligations of this contract agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in the contract agreement.
5. The City reserves the right to obtain a full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.
The Commercial General Liability and Automobile Liability policies are to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds as respects: liability arising out of work or operations performed by or on behalf of the Contractor/Consultant; or automobiles owned, leased, hired or borrowed by the Contractor/Consultant .
2. The additional insured coverage under the Contractor’s/Consultant’s policy shall be primary and non-contributory, and will not seek contribution from the City’s insurance.
3. For any claims related to this project, the Contractor’s/Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Contractor’s/Consultant’s insurance and shall not contribute with it.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice has been provided to the City.
If General Liability, Contractors Pollution Liability and/or Asbestos Pollution Liability and or Errors & Omissions coverages are written on a claims-made form:
1. The retroactive date must be shown, and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective date, the Contractor/Consultant must purchase an extended period coverage for a minimum of five (5) years after completion of contract work.
4. A copy of the claims reporting requirements must be submitted to the City for review. 92 Professional Services Agreement Page 6 of 10
5. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion and the definition of “Pollution” shall include microbial matter including mold.
9.6 Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City. Exception may be made for the State Compensation Insurance Fund when not specifically rated.
9.7 Verification of Coverage
Contractor/Consultant shall furnish the City with endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that Insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City, unless the insurance company will not use the City’s forms. All endorsements are to be received and approved by the City before work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. As an alternative to the City’s forms, the Contractor’s/Consultant’s insurer may provide complete certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
9.8 Waiver of Subrogation
Contractor/Consultant hereby agrees to waive subrogation which any insurer of Contractor/Consultant may acquire from Contractor/Consultant by virtue of the payment of any loss. Contractor/Consultant agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor/Consultant, its employees, agents and subcontractors/subconsultants.
9.9 Indemnity and Hold Harmless
Contractor/Consultant shall indemnify and hold harmless the City, their elected officials, officers, employees, agents and volunteers, and each and every one of them, against all claims, suits, actions, costs, counsel fees, expenses, damages, judgments or decrees by reason of any person or person’s bodily injury, including death, or property being damaged by Contractor/Consultant or any person employed by Contractor/Consultant or in any capacity during the progress of the work by negligence except where caused by the active negligence, sole negligence or willful misconduct of the City.
Contractor/Consultant shall also indemnify City of any adverse determination made by the Internal Revenue Service or the State Franchise Tax Board against those agencies with respect to Contractor’s/Consultant’s “independent contractor” status that would establish a liability for failure to make social security or income tax withholding payments.
10. STANDARD OF PERFORMANCE
Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession. All products of any nature, which Consultant delivers to City pursuant to this Agreement, shall be prepared in a professional manner and conform to the standards of quality normally observed by a person practicing the profession of Consultant 93 Professional Services Agreement Page 7 of 10
and its agents, employees and subcontractors assigned to perform the services contemplated by this Agreement.
11. RELIANCE UPON DATA, DOCUMENTS AND RECORDS
Consultant shall be entitled to rely upon the accuracy and completeness of all data furnished by City to Consultant that is used by Consultant in the providing of services under this Agreement. Consultant may retain and use all data furnished to it, except such data which may be marked "confidential" and required to be returned, and may use all plans, designs, specifications and other work product created by Consultant in providing services hereunder. Any use of such work product which includes proprietary information shall not identify City, nor shall the manner of such use have the effect of identifying City.
12. OWNERSHIP AND USE OF DOCUMENTS AND ELECTRONIC MEDIA DELIVERABLES All completed reports and other data or documents, or computer media including diskettes and other materials provided or prepared by Consultant in accordance with this Agreement are the property of City, and may be used by City.
City shall release, defend, indemnify and hold harmless Consultant from all claims, costs, expenses, damage or liability arising out of or resulting from the use or modification of any reports, data, documents, drawings, specifications or other work product prepared by Consultant, except use by City on those portions of Project for which such items were prepared.
13. RESOLUTIONS OF DISPUTES, ATTORNEYS FEES
The laws of the State of California shall govern the interpretation of and the resolution of disputes under this Agreement. If any claim, at law or otherwise is made by either party to this Agreement, the prevailing party shall be entitled to its costs and reasonable attorneys' fees. Consultant shall continue with the responsibilities under this Agreement during any dispute unless waived in writing by City.
14. CONFLICT OF INTEREST
A. Consultant shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this contract, or any ensuing City construction project. Consultant shall also list current clients who may have a financial interest in the outcome of this contract, or any ensuing City construction project, which will follow.
B. Consultant hereby certifies that it does not now have, nor shall it acquire any financial or business interest that would conflict with the performance of services under this contract.
C. Consultant hereby certifies that neither Consultant, nor any firm affiliated with Consultant will bid on any construction contract, or on any contract to provide construction inspection for any construction project resulting from this contract. An affiliated firm is one, which is subject to the control of the same persons through joint-ownership, or otherwise.
D. Except for subconsultants whose services are limited to providing surveying or materials testing information, no subconsultant who has provided design services in connection with this contract shall be eligible to bid on any construction contract, or on any contract to provide construction inspection for any construction project resulting from this contract. 94 Professional Services Agreement Page 8 of 10
15. TERMINATION OF AGREEMENT
If Consultant fails to perform his/her duties to the satisfaction of the City or if Consultant fails to fulfill in a timely and professional manner his/her obligations under this Agreement, or if Consultant violates any of the terms or provisions of this Agreement, then City shall have the right to terminate this Agreement effective immediately upon the City giving written notice thereof to Consultant. In the event City shall give such notice of termination, Consultant shall immediately cease rendering services pursuant to this Agreement.
Either party may terminate this Agreement on 30 days’ written notice. City shall pay Consultant for all work satisfactorily completed as of the date of notice.
City may terminate this Agreement immediately upon oral notice should funding cease or be materially decreased.
In the event City terminates this Agreement:
A. City shall have full ownership and control of all writings which have been delivered by Consultant pursuant to this Agreement and all drafts of reports and writings which form the basis for any writing or report which would have been otherwise delivered to City pursuant to this Agreement; B. City shall pay Consultant the reasonable value of services rendered by Consultant pursuant to this Agreement provided, however, City shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Agreement.
In this regard, Consultant shall furnish to City such financial information as in the judgment of the City representative is necessary to determine the reasonable value of the services rendered by Consultant.
16. COMPLIANCE WITH LAWS
Consultant shall comply with all applicable laws, ordinances, and codes of the federal, state and local governments.
17. REPRESENTATIVES OF THE PARTIES
The City’s representative for this Agreement is:
William Bond
City of Shasta Lake
4477 Main Street
Shasta Lake, CA 96019
530.275.7400
[email protected]
All Consultant questions pertaining to this Agreement shall be referred to the above named person, or the representative's designee.
95 Professional Services Agreement Page 9 of 10
The Consultant’s representative for this Agreement is:
Steven Wilson
PACE Engineering
5155 Venture Parkway, Redding, CA 96002
530-244-0202
[email protected]
All City questions pertaining to this Agreement shall be referred to the above named person.
18. NOTICES
All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender (may be other than the representative referred to in Paragraph 17 above), and delivered by facsimile with a hard copy mailed first class, postage prepaid, or when sent by a courier or express services guaranteeing overnight delivery to the receiving party, and addressed to the respective party as follows:
To City: Toni Coates, City Clerk
City of Shasta Lake
P.O. Box 777
4477 Main Street
Shasta Lake, CA 96019
To Consultant: Steven Wilson
PACE Engineering
5155 Venture Parkway, Redding, CA 96002
530-244-0202
[email protected]
19. ENTIRE AGREEMENT
This document, including all exhibits, contains the entire agreement between the parties and supersedes any oral or written understanding they may have had prior to the execution of this Agreement. Consultant shall be entitled to no other benefits other than those specified herein. No amendments or alterations shall be effective unless in writing and signed by both parties. Consultant specifically acknowledges that in entering into and executing this Agreement, Consultant relies solely upon the provisions contained in this Agreement and no others.
20. SEVERABILITY
If any portion of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
21. EMPLOYMENT STATUS
96 Professional Services Agreement Page 10 of 10
Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and nothing in this Agreement is intended nor shall be construed to create an employer-employee relationship, a joint venture relationship, or to allow City to exercise discretion or control over the professional manner in which Consultant perform the services which are the subject matter of this Agreement, provided always, however, that the services to be provided by Consultant shall be provided in a manner consistent with the professional standards applicable to such services. The sole interest of City is to insure that services shall be rendered and performed in a competent, efficient and satisfactory manner.
Consultant shall be fully responsible for payment of all taxes due to the State of California or the federal government which would be withheld from compensation if Consultant were a City employee. City shall not be liable for deductions for any amount for any purpose from Consultant’s compensation. Consultant shall not be eligible for coverage under City’s worker’s compensation insurance plan nor shall Consultant be eligible for any other City benefit.
22. HEADINGS, ASSIGNMENT AND WAIVER
The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof.
Neither party to this Agreement shall assign its duties and obligations hereunder without the prior written consent of the other party. A waiver of any part of any provision or a breach of this Agreement must be provided in writing and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein.
23. AUTHORITY
The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement.
IN WITNESS WHEREOF, City and Consultant have executed this Agreement below:
CITY OF SHASTA LAKE
By: ___________________________________ ________________ Jessaca Lugo Date
City Manager, City of Shasta Lake
CONSULTANT
By: ___________________________________ ________________ Steven Wilson, S.E. Date
Senior Engineer, PACE Engineering
Distribution: Consultant (1 original), City Clerk (1 original), Finance (1 original with Purchase Order), Project File (1 original) 97 PROJECT SCOPE OF WORK
Complete engineering services with attention to
1 individual client needs
The proposed project Scope of Work is well-defined in the RFQ&P document. Our proposed Scope of Work generally follows the scope presented in the RFQ&P with a few deviations that are discussed hereinafter. Below is our proposed Scope of Work:
Task 1: Project Management
Project management activities, including contract management and quality control services, will be performed on an ongoing basis throughout the duration of the project. These tasks are not necessarily discrete tasks to be estimated separately but are to be included in the overall time allocated to PACE’s project management. Below are the discrete tasks:
1. Prepare internal project management plan.
2. Coordinate all meetings, including preparing and submitting an agenda and meeting minutes.
3. Coordination and consultation with local, state, and federal agencies as required.
4. Prepare and submit project schedules and schedule updates.
5. Prepare and submit monthly progress reports with monthly progress payment requests as requested in the RFQ&P.
6. Prepare and adhere to the approved Quality Assurance/Quality Control (QA/QC) Program.
7. Maintain project files.
Project management is defined as the process and activity of planning, organizing, motivating, and controlling resources, procedures, and protocols to achieve specific project goals. The City has established the project goals, Scope of Services, and deliverables. It is up to PACE to meet these constraints within budget and schedule.
Our project management style will meet project goals by establishing clear lines of communication between the City and PACE. Communication is key to ensuring that the Project Manager (Steve Wilson, S.E.) understands what the City desires. Once the Project Manager is confident that he understands the City’s expectations, the PACE team will proceed with project planning and execution. This proposal presents the first pass at developing a clear line of communication between the responsible engineers and planners to meet the established goals, Scope of Services, and deliverables within the timetable and fee. 98 PROJECT SCOPE OF WORK
Complete engineering services with attention to
2 individual client needs
PACE will accomplish this by providing the Project Manager with authority to assign organizational resources to project activities. In addition, PACE provides high-quality professional engineering services through the establishment of a rigorous and detailed QA/QC Program that ranges from continued staff training to a step-by-step project delivery system. All Project Managers are trained and responsible for project oversight and QA/QC, performing quality review of all projects. As the project progresses, changes will undoubtedly be presented for consideration. PACE takes pride in being able to change plans to accommodate updated goals while still delivering the required product on time and within the constraints originally established.
The City’s Scope of Services includes submittal of several preliminary and draft deliverables that will provide review and comments from the City, which is desirable from PACE’s perspective. We have developed a comprehensive QA/QC Program that began in 1976 at the inception of the company and continues to evolve as our profession advances into the future.
Our QA/QC Program is composed of the following elements:
1. Continued training for all staff, including Professional Services Management Journal (PSMJ)-facilitated project management training.
2. Established design standards.
3. Updated drafting and CAD standards.
4. Project delivery system.
5. Knowledge library.
6. Extensive and current design and technical resources.
7. Design checklists.
8. Checklist verification.
9. Senior and/or principal level work checks throughout project delivery.
All projects are managed by an experienced and seasoned engineer who oversees all phases of a project from inception to completion. The QA/QC Manager and Principal-in-Charge (Paul Reuter, P.E.) will provide quality review during all stages of the project.
PACE has developed extensive design standards, drafting standards, and project delivery systems resulting in greater consistency throughout the firm, which ensures a better product for our clients.
PACE has an extensive library of technical resources that we rely on for resolving complex technical issues along with product information manuals. When problems occur or lessons are learned, the solutions to those problems are added to our library and distributed amongst our employees to avoid repetition.
QA/QC reviews are conducted in-house by QA/QC staff to catch mistakes, errors, or omissions contained in client deliverables as well as to make sure they are corrected. Documents are reviewed during all stages of the project to ensure delivery of accurate information. PACE believes our structure and effort put forth enables our team to provide their best product in the best interests of the client.
99 PROJECT SCOPE OF WORK
Complete engineering services with attention to
3 individual client needs
Task 1 Deliverables
• Monthly progress reports with progress payment requests. • Meeting agendas and minutes.
Task 2: Preliminary Engineering Design Services
Preliminary engineering design services include the following subtasks:
Subtask 2.1: Surveying and Mapping: PACE’s survey crew will map the proposed tank site and surrounding area (approximately two acres) utilizing a combination of conventional equipment and low-altitude drone, which will produce a topographic surface map with ±0.5-foot accuracy. The drone will also produce a high-resolution, orthorectified image that will be utilized as a background for final plans. The drone allows us to map the project area in a fraction of the time and pass the savings onto the City. Mapping with 1-foot contour intervals will be prepared for design purposes.
Mapping will be prepared based on California Coordinate System of 1983 (CCS83), and elevations will be based on North American Vertical Datum of 1988 (NAVD88).
Several durable mapping control points will be set around the project site, which can be utilized for construction staking services during construction of the project.
While performing the field surveying efforts, we will determine the height of the tree canopy to the north of the proposed tank site. With this information and by utilizing some of the software tools we used to prepare the previous 3D renderings, we will reconfirm the most desirable tank height to mitigate aesthetic concerns and provide the City with the needed water storage volume.
Subtask 2.2: Existing Project Data/Information Review: PACE is very familiar with the project background having participated in the tank siting alternative analyses since 2018. However, other PACE team members are not as familiar. This task is utilized for all PACE team members to familiarize themselves with important aspects of the project.
Subtask 2.3: Existing Water System Evaluation and Review: The 2016 WMP evaluated this storage tank option from an engineering perspective. However, it will be advantageous to model the proposed tank improvements to ensure the proposed tank height will not have any detrimental effects on the water system, including maintenance of reliable service to the United States Bureau of Reclamation facilities. This task will also include evaluation of existing utility (water, electrical power, and storm drain) infrastructure to determine needed improvements to facilitate the design effort.
Finally, the City’s supervisory control and data acquisition (SCADA) system will be evaluated to establish requirements for (1) modifying the existing system and (2) incorporating the proposed tank into the City’s SCADA system. PACE’s Instrumentation and Controls (I/C) Engineers have been working with City staff for the last several years assisting with SCADA-related repairs and enhancements.
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PROJECT SCOPE OF WORK
Complete engineering services with attention to
4 individual client needs
Subtask 2.4: Feasibility Study – Concrete Versus Welded Steel: The City desires the selected consultant to perform a feasibility study and alternatives analysis comparing the 20- and 50-year present worths for a pre-stressed concrete versus a welded-steel storage tank. PACE has designed countless welded-steel water tanks since the mid-1970s, including a handful of bolted-steel tanks. While steel tanks have been the “go-to” option for the last several years, concrete tanks are starting to gain momentum in the water works industry especially as steel prices have continued to rise.
Working with several of the prominent pre-stressed concrete and welded-steel tank manufacturers, we will prepare a life cycle cost analysis considering the following:
• Upfront total project cost.
• Welded-steel tank ongoing coating maintenance costs and intervals. • Welded-steel tank recoating costs and intervals, including project soft costs. • Concrete tank inspection and routine maintenance costs and intervals. • Concrete tank power washing costs and intervals.
PACE has performed similar analyses for BVWD, WCSD, and the community of Westwood.
Subtask 2.5: Geotechnical Evaluation: PACE will retain the services of KC Engineering Company (KC), Redding, California, to perform a geotechnical evaluation at the proposed tank site. KC’s full proposal is included at the end of this SOQ&P but, in general, the Scope of Work is as follows:
• Literature review.
• Site reconnaissance.
• Surface and subsurface exploration consisting of drilling five borings in accordance with American Concrete Institute (ACI) guidelines.
• Laboratory testing for the following: Moisture/Density, sieve analysis, Atterberg limits, strength testing, consolidation, R-value, and soil corrosivity. • Analysis and Report: A geotechnical report will provide recommendations for compliance with 2022 California Building Code (CBC) seismic criteria, pad and roadway grading, tank foundations, pavement sections, drainage, and other related design criteria. The report will also address geotechnical or geologic concerns on the site and any required mitigation measures such as lime treatment and/or subsurface ground improvement.
• Consultation and Plan Review: KC will provide assistance and input throughout the design process and review final plans for conformance with the geotechnical report.
A plan review letter will be provided for submittal to the City.
Note, the RFQ&P suggests a preliminary geotechnical investigation be performed in Task 2 and a final geotechnical investigation be performed in Task 3. We intend to complete the final geotechnical investigation in Task 2 because we will need the final geotechnical results to estimate foundation needs and subsequent cost estimates in Task 2.6. The scope of the geotechnical investigation will be suitable for a pre-stressed concrete or welded-steel tank. 101
PROJECT SCOPE OF WORK
Complete engineering services with attention to
5 individual client needs
Subtask 2.6: Preliminary Design Technical Memorandum: PACE will prepare a preliminary design technical memorandum that includes preliminary design calculations, preliminary plans, preliminary engineer’s project cost estimate, and other appropriate preliminary engineering work. Preliminary project plans will be presented at 50% scale, reduced from 22-inch by 34-inch plan sheets. A draft report will be submitted to City staff and other project stakeholders (if applicable) for review and comment prior to finalizing the report.
Subtask 2.7: Raw Water Tank Tie-In Evaluation: The proposed Centimudi Tank is the first step of a multi-step approach to, 1) improve overall water system storage, and 2) expand raw water storage capacity ahead of the water treatment plant (WTP). After the Centimudi Tank is constructed, the City will be able to begin the process of abandoning the two existing storage tanks at the WTP and constructing a new, larger, Raw Water Tank. As part of this project, it is desirable to evaluate existing WTP infrastructure, including improvements to the facility in the last seven (7) years, for compatibility with the new Raw Water Tank. The effort will consist of the following:
• Existing facility review, including site visit.
• Preliminary site layout for new Raw Water Tank.
• Preliminary piping and valve layout to: 1) Accommodate the new Raw Water Tank, 2) facilitate ease of interim service from treated water storage to raw water storage while the Raw Water Tank is being designed and constructed, and 3) easily accommodate the new Raw Water Tank after it is constructed. • Perform cursory hydraulic evaluation to confirm recommended improvements will perform, hydraulically, as intended.
• Prepare technical memorandum with figures and cost estimate.
Task 2 Deliverables
• Technical memorandum containing the following:
o Recommendation of tank type (pre-stressed concrete versus welded steel) o 30% preliminary plans, including engineer’s estimate
o Final geotechnical report
o Discussion of project design parameters
• Technical memorandum for Raw Water Tank Tie-in Evaluation Task 3: Plans, Specifications, and Estimates (Final Design) Services PACE will utilize our in-house disciplines of Civil, Water, Structural, Mechanical, Electrical, and I/C Departments to prepare final design documents (construction plans, technical specifications, and cost estimates) suitable for public bidding. The City will prepare upfront bidding and contract documents. The final design effort will be based on the City-approved recommendations from the Preliminary Design Report, completed in Task 2, and generally reflect the following:
• Coordination with existing utility owners, including the City’s electrical provider. The City owns the water infrastructure in the vicinity, and we have Record Drawings for those improvements.
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PROJECT SCOPE OF WORK
Complete engineering services with attention to
6 individual client needs
• Integration of any CEQA/NEPA and USFS mitigation and/or Use Permit mitigation requirements. The City will facilitate obtaining project approvals for CEQA/NEPA compliance and USFS approval.
• PACE will work with McEntire Landscaping to develop a landscaping plan around the tank site that is aesthetically pleasing and provides a natural visual screen from passing motorists and Shasta Lake traffic. Our team will work with USFS and BLM vegetation experts to settle on a plan that works for all project stakeholders. • Complete 60%, 90%, and 100% design submittals (plans and cost estimates) for City and agency review. The plan set will include site and utility plans along with larger-scale mechanical plans, sections, and details. Civil, structural, electrical, and I/C plan sheets will be grouped within the plan set.
• Technical specifications will be provided in Construction Specification Institute (CSI) format.
Task 3 Deliverables
• Task 3 deliverables will be provided in accordance with the requirements set forth in the RFQ&P:
o 60% construction plans and cost estimates
o 90% construction plans, technical specifications, and cost estimates o 100% construction plans, technical specifications, and cost estimates Task 4: Assistance During Bidding and Construction
Task 4 consists of providing limited engineering services during bidding, construction, and construction close-out phases of the project. Specific tasks that are NOT requested in the RFQ&P are as follows:
• Assistance with bid advertisement.
• Assistance with bid opening, bid evaluation, recommendation of award, and contract execution.
• Construction observation.
• Periodic site reviews by the Engineer of Record (EOR). • Special inspections required by CBC.
• Coating inspections.
• Materials testing, such as compaction, concrete, etc. • Functional acceptance testing (FAT).
• Recommendation of project acceptance.
PACE routinely provides these services for our municipal client base, especially for similar projects. However, the RFQ&P does not specifically request these services, so they are not included in our proposed Scope of Work. However, any portion of all or some of these services can be added at a later date. Specific subtasks we intend to provide under Task 4 are described hereinafter:
Subtask 4.1: Bidding Services: PACE will attend a pre-bid meeting at the City and present the project to prospective bidders along with key project considerations. A sign-in sheet will be 103
PROJECT SCOPE OF WORK
Complete engineering services with attention to
7 individual client needs
prepared, and PACE will note questions asked along with responses provided during the meeting for inclusion in a subsequent addendum.
It is assumed questions from bidders will be directed to City staff since PACE will not be involved in the bid advertisement aspects of the project. PACE will take directives from City staff on required changes to the bid documents and prepare addendums, as needed, to clarify bidding requirements. Addendums will be distributed to City staff for distribution to bidders.
Subtask 4.2: Construction Engineering: Prior to construction, PACE will attend a pre-construction conference with the selected contractor to discuss project specifics and important aspects related to project implementation. PACE will work with City staff prior to the meeting in order to establish an inclusive agenda that touches on key aspects of the project.
PACE will review the contractor’s submittals for key materials and equipment for the project, including the tank manufacturer’s engineered plans and shop drawings and detailed engineering calculations. Our fees are based on needing no more than two submittal reviews for submitted materials, equipment, shop drawings, and engineered calculations.
PACE will assist City staff with negotiating and processing contract change orders (CCOs) during construction. Since PACE’s presence during construction is expected to be limited, we assume we will work directly with City staff to prepare documents memorializing any changes. Our estimated fees for this effort are based on a reasonable number of corrective-type change orders that we have experienced on recent similar projects. It does not take into account owner-requested change orders that, in our experience, can have quite a range of complexity and work requirements.
PACE will assist City staff with responding to requests for information (RFIs) that are directed to City staff. Again, we assume City staff will take the lead in the construction management effort and PACE will support their efforts as needed. RFI processing can range significantly on a project and is highly dependent on the contractor’s experience and general litigious nature.
For our fee estimate, we have assumed processing up to fifteen RFIs.
PACE will attend two final inspections for the project. The first inspection will be after substantial completion but prior to final completion, and we will note items to include on the project punch list. The last and final inspection will occur after all noted punch list items are completed.
PACE will prepare Record Drawings based on markups from the contractor and resident engineer in accordance with requirements set forth in the RFQ&P.
Task 4 Deliverables
• Addendums.
• Submittal review comments.
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PROJECT SCOPE OF WORK
Complete engineering services with attention to
8 individual client needs
• CCOs.
• Responses to RFIs.
• Noted punch list items.
• Record Drawings.
105
Client: City of Shasta Lake
Project: Centimudi Water Storage Tank
Date: August 7, 2023
Job No: 0.04
S. Wilson
Senior Engr
P. Reuter
Managing Engr Senior Engr Staff Engr/Surv 3 Staff Engr/Surv 2 Staff Engr/Surv 1 J. Lenaker Survey Sup Two-Person Survey Crew One-Person Survey Crew Engr/Survey Technician 3 Engr/Survey Technician 2 Admin Clerk Admin Clerk Category Subtotal E5/LS5 E7 E5/LS5 E3/LS3 E2/LS2 E1/LS1 E6/LS6 PW2M PW1M T3 T2 AD2 AD1 1 Project Management
1.1 Coordinate Meeting Agendas and Minutes 30 20 $ 11,730
1.2 Project Schedules and Updates 10 $ 2,2101.3 Monthly Progress Reports (assume 12) 10 30 $ 6,770
1.4 Ongoing Project Coordination/Management and QA/QC 16 16 $ 7,616 Project Management Subtotal: 66 36 0 0 0 30 0 0 0 0 0 0 0 $ 28,326 2 Preliminary Engineering Design Services
2.1 Surveying and Mapping 2 4 8 4 16 $ 8,456
2.2 Existing Project Data/Information Review 8 8 $ 3,808
2.3 Existing Water System Evaluation and Review 8 16 12 $ 7,712
2.4 Feasibility Study - Concrete vs. Welded Steel 32 6 40 4 $ 15,014
2.5 Geotechnical Evaluation $ 34,613
Geotechnical Evaluation Coordination/Evaluation/Interpretation 6 10 $ 2,846
2.6 Preliminary Design Report 40 32 60 8 4 $ 27,088
2.7 Raw Water Tank Tie-in Evaluation 12 16 16 8 4 2 $ 11,136 Preliminary Engineering Design Services Subtotal: 86 66 32 30 0 110 4 8 4 8 16 16 6 $ 110,673 3 FINAL DESIGN SERVICES
3.1 Civil Design 16 40 $ 10,216
3.2 Landscaping Design $ 10,000
3.3 Landscaping Design Coordination and Support 16 $ 3,536
3.4 Structural Design 80 160 $ 42,0003.5 Water Design 12 40 $ 9,740
3.6 Electrical Design 24 40 $ 10,3123.7 I/C Design 32 60 $ 15,716 Final Design Services Subtotal: 96 12 16 56 140 160 0 0 0 40 0 0 0 $ 101,520 4 ASSISTANCE DURING BIDDING AND CONSTRUCTION
4.1 Pre-Bid Conference 8 8 $ 2,984
4.2 Addendum Preparation 4 2 4 6 3 $ 3,223
4.3 Pre-Construction Conference 4 6 $ 1,796
4.4 Submittal Review 16 6 8 20 24 $ 13,4784.5 Assist with CCOs and RFIs 8 4 6 6 16 $ 7,290
4.6 Final Inspection (assume two site visits) 8 4 8 4 $ 5,268
4.7 Record Drawings 4 24 32 $ 9,756
Assistance During Bidding and Construction Subtotal: 52 16 8 18 54 92 0 0 0 0 0 3 0 $ 43,795 300 130 56 104 194 392 4 8 4 48 16 19 6 1,281
$ 221 $ 255 $ 221 $ 178 $ 167 $ 152 $ 240 $ 455 $ 331 $ 151 $ 136 $ 83 $ 76 N/A $ 66,300 $ 33,150 $ 12,376 $ 18,512 $ 32,398 $ 59,584 $ 960 $ 3,640 $ 1,324 $ 7,248 $ 2,176 $ 1,577 $ 456 $ 284,314 Added Task after SOQ&P submittal.
Total Person-Hours:
Labor Cost Per Hour:
Labor Cost Per Classification:
EXHIBIT A
PERSON-HOUR BREAKDOWN AND FEE ESTIMATE - REV-1
Planning
Task Description
(Subconsultant: KC Engineering Company/Materials Testing, Inc. (MTI), Redding, CA) (Subconsultant: McEntire Landscaping, Redding, CA)
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Exhibit B
This project is funded by Community Development Block Grant (CDBG) program funds and the following language shall be adhered to and included with the Professional Services Agreement (PSA) entered into by the City and the Consultant.
Anti Lobbying Language:
No CDBG, HOME, CDBG-DR or other Federally awarded funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
If any funds other than CDBG, HOME, CDBG-DR or other Federally awarded funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the agency will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions to HUD, HCD or other Federal awarding agency.
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Exhibit B – CDBG-DR
Community Development Block Grant Program Disaster Recovery Rider This Community Development Block Grant Program Rider contains supplementary general conditions for use with procurement contracts and subrecipient agreements that are funded in whole or in part by the U.S. Department of Housing and Urban Development (“HUD”) under Title I of the Housing and Community Development Act of 1974 (Pub. L. 93-383) as amended.
For all procurement contracts and subrecipient agreements funded fully or in part by the Community Development Block Grant Disaster Recovery (“CDBG-DR”) Program by and between the City of Shasta Lake , State of California, acting herein by City Manager, hereunto duly authorized, and [PACE Engineering], a [engineering design services consultant] organized under the laws of the State of California, acting herein by [City Manager], [Chief Executive Officer or appointed representative, hereunto duly authorized; this CDBG Rider will serve as a universal addendum to each of those contracts and/or agreements.
This Rider must be signed separately as a stand-alone document, and the terms and provisions outlined herein will be applicable to all contracts and agreements between City of Shasta Lake , and [PACE Engineering] in which CDBG-DR grant funds are a funding source.
FEDERAL REGISTER NOTICES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Federal Register Notices applicable to the use of CDBG-DR Funds for all associated grants are available on the HUD Web site at:
https://www.hudexchange.info/programs/cdbg-dr/cdbg-dr-laws-regulations-and-federal-registernotices/ CDBG-DR-INFR Procurement Policies and Procedures
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COMPLIANCE PROVISIONS FOR CDBG-DR RIDER
FOR
PROFESSIONAL SERVICES CONTRACTS
CONTENTS
1. EQUAL EMPLOYMENT OPPORTUNITY (Equal Opportunity Clause)
2. CERTIFICATION OF NONSEGREGATED FACILITIES
3. CIVIL RIGHTS
4. SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
5. SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 -
COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS
OPPORTUNITIES
6. SECTION 503 OF THE REHABILITATION ACT OF 1973 (29 USC 793)
7. SECTION 504 OF THE REHABILITATION ACT OF 1973, AS AMENDED
8. AGE DISCRIMINATION ACT OF 1975
9. CERTIFICATION OF COMPLIANCE WITH AIR AND WATER ACTS
10. FLOOD DISASTER PROTECTION
11. ACCESS TO RECORDS - MAINTENANCE OF RECORDS
12. INSPECTION
13. REPORTING REQUIREMENTS
14. CONFLICT OF INTEREST
15. ACTIVITIES AND CONTRACTS NOT SUBJECT TO EXECUTIVE ORDER 11246, AS
AMENDED
16. PATENTS
17. COPYRIGHT
18. TERMINATION FOR CAUSE
19. TERMINATION FOR CONVENIENCE
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20. ENERGY EFFICIENCY
21. SUBCONTRACTS
22. DEBARMENT, SUSPENSION, AND INELIGIBILITY
23. BREACH OF CONTRACT TERMS
24. PROVISIONS REQUIRED BY LAW DEEMED INSERTED
25. CHANGES
26. PERSONNEL
27. ANTI-KICKBACK RULES
28. ASSIGNABILITY
29. INTEREST OF CONTRACTOR
30. POLITICAL ACTIVITY
31. COMPLIANCE WITH THE OFFICE OF MANAGEMENT AND BUDGET
32. DISCRIMINATION DUE TO BELIEF
33. CONFIDENTIAL FINDINGS
34. LOBBYING
35. AUTHORIZATION
1. EQUAL EMPLOYMENT OPPORTUNITY (Equal Opportunity Clause) (applicable to contracts and subcontracts above $10,000) During the performance of any contract, the Contractor agrees as follows:
A. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
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B. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration without regard to race, color, religion, sex, or national origin.
C. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Contract Compliance Officer advising the said labor union or workers' representatives of the Contractor's commitment under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
D. The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, as amended, and the rules, regulations, and relevant orders of the Secretary of Labor.
E. The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, as amended, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and others.
F. In the event of the Contractor's noncompliance with the non-discrimination clauses of any contract or with any of the said rules, regulations, or orders, that contract may be cancelled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, as amended, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
G. The Contractor will include the provisions of the sentence immediately preceding paragraph A and the provisions of paragraphs A through G in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, as amended, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance.
Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department, the Contractor may request the United States to enter into such litigation to protect the interest of the United States.
2. CERTIFICATION OF NONSEGREGATED FACILITIES
(applicable to contracts and subcontracts over $10,000) By the submission of this bid, the bidder, offeror, applicant or subcontractor certifies that he/she does not maintain or provide for his/her establishments, and that he/she does not permit employees to perform their services at any location, under his/her control, where segregated facilities are maintained. He/she certifies further that he/she will not maintain or provide for employees any segregated facilities at any of his/her establishments, and he/she will not permit employees to perform their services at any location under his/her control where segregated facilities are maintained. The bidder, offeror, applicant or subcontractor agrees that a breach of this certification is a violation of the equal opportunity clause of this contract.
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As used in this certification, the term "segregated facilities" means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms, and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation and housing facilities provided for employees which are segregated by explicit directive or are, in fact, segregated on the basis of race, color, religion, or national origin because of habit, local custom, or any other reason.
He/she further agrees that (except where he/she has obtained for specific time periods) he/she will obtain identical certification from proposed subcontractors prior to the award of subcontracts exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause; that he/she will retain such certifications in his/her files; and that he/she will forward the following notice to such proposed subcontractors (except where proposed subcontractors have submitted identical certifications for specific time periods).
3. CIVIL RIGHTS
The Contractor shall comply with the provisions of Title VI of the Civil Rights Act of 1964. No person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.
4. SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
The Contractor shall comply with the provisions of Section 109 of the Housing and Community Development Act of 1974. No person in the United States shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. Section 109 further provides that discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973, as amended, is prohibited.
5. SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 -
COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS
OPPORTUNITIES
A. The work to be performed under any contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
B. The parties to any contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to CDBG-DR-INFR Procurement Policies and Procedures
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any contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations.
C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each, and the name and location of the person(s) taking applications for each of the positions, and the anticipated date the work shall begin.
D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135.
E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of any contract for default, and debarment or suspension from future HUD assisted contracts.
G. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to any contract that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b).
6. SECTION 503 OF THE REHABILITATION ACT OF 1973 (29 USC 793) (applicable to contracts and subcontracts over $10,000) A. The contractor will not discriminate against any employee or applicant for employment because of physical or mental handicap in regard to any position for which the employee or applicant for employment is otherwise qualified. The contractor agrees to take affirmative action to employ, advance in employment and otherwise treat qualified handicapped individuals without discrimination based upon their physical or mental handicap in all employment practices such as the following: employment upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.
B. The Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Act.
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C. In the event of the Contractor's noncompliance with the requirements of this clause, actions for noncompliance may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Act.
D. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices in a form to be prescribed by the Director, provided by or through the contracting officer. Such notices shall state the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified handicapped employees and applicants for employment, and the rights of applicants and employees.
E. The Contractor will notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the Contractor is bound by the terms of Section 503 of the Rehabilitation Act of 1973, and is committed to take affirmative action to employ and advance in employment physically and mentally handicapped individuals.
F. The Contractor will include the provisions of this clause in every subcontract or purchase order of $10,000 or more unless exempted by rules, regulations, or orders of the Secretary issued pursuant to Section 503 of the Act, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce such provisions, including action for noncompliance.
7. SECTION 504 OF THE REHABILITATION ACT OF 1973, AS AMENDED The Contractor agrees that no otherwise qualified individual with disabilities shall, solely by reason of his disability, be denied the benefits, or be subjected to discrimination including discrimination in employment, any program or activity that receives the benefits from the federal financial assistance.
8. AGE DISCRIMINATION ACT OF 1975
The Contractor shall comply with the provisions of the Age Discrimination Act of 1975. No person in the United States shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity receiving federal financial assistance.
9. CERTIFICATION OF COMPLIANCE WITH AIR AND WATER ACTS
(applicable to contracts and subcontracts exceeding $100,000) The Contractor and all subcontractors shall comply with the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended.
In addition to the foregoing requirements, all nonexempt contractors and subcontractors shall furnish to the owner, the following:
A. A stipulation by the Contractor or subcontractors, that any facility to be utilized in the performance of any nonexempt contract or subcontract, is not listed on the List of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR Part 15, as amended.
B. Agreement by the Contractor to comply with all the requirements of Section 114 of the Clean Air Act, as amended, (42 USC 1857 c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, CDBG-DR-INFR Procurement Policies and Procedures
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(33 USC 1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder.
C. A stipulation that as a condition for the award of the contract, prompt notice will be given of any notification received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized, or to be utilized for the contract, is under consideration to be listed on the EPA List of Violating Facilities.
D. Agreement by the Contractor that he will include, or cause to be included, the criteria and requirements in paragraph (1) through (4) of this section in every nonexempt subcontract and requiring that the Contractor will take such action as the government may direct as a means of enforcing such provisions.
10. FLOOD DISASTER PROTECTION
Any contract is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234).
Nothing included as a part of the contract is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary of HUD as having special flood hazards which is located in a community not then in compliance with the requirements for participation in the National Flood Insurance Program pursuant to Section 201(d) of said Act; and the use of any assistance provided under the contract for such acquisition for construction in such identified areas in communities then participating in the National Flood Insurance Program shall be subject to the mandatory purchase of flood insurance requirements or Section 102(a) of said Act.
Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under any Contract shall contain, if such land is located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., provisions obligating the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of Flood Disaster Protection Act of 1973.
11. ACCESS TO RECORDS - MAINTENANCE OF RECORDS
The State of California, the Department of Housing and Urban Development, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the Contractor which are directly pertinent to this specific contract, for the purpose of audits, examinations, and making excerpts and transcriptions. All records connected with any contract will be maintained in a central location by the unit of local government and will be maintained for a period of five (5) years from the official date of the State's final closeout of the grant.
12. INSPECTION
The authorized representative and agents of the State of California and the Department of Housing and Urban Development shall be permitted to inspect all work, materials, payrolls, records of personnel, invoices of materials, and other relevant data and records.
13. REPORTING REQUIREMENTS
The Contractor shall complete and submit all reports, in such form and according to such schedule, as may be required by the Owner.
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14. CONFLICT OF INTEREST
A. No officer or employee of the local jurisdiction or its designees or agents, no member of the governing body, and no other public official of the locality who his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed. Further, the Contractor shall cause to be incorporated in all subcontracts the language set forth in this paragraph prohibiting conflict of interest.
B. No member of or delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of any contract or to any benefit that may arise therefrom, but this provision shall not be construed to extend to any contract if made with a corporation for its general benefit.
15. ACTIVITIES AND CONTRACTS NOT SUBJECT TO EXECUTIVE ORDER 11246, AS
AMENDED
(applicable to contracts and subcontracts of $10,000 and under) During the performance of any contract, the Contractor agrees as follows:
A. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
B. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by Contracting Officer setting forth the provisions of this nondiscrimination clause. The Contractor shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.
C. Contractors shall incorporate foregoing requirements in all subcontracts.
16. PATENTS
A. The Contractor shall hold and save the Owner and its officers, agents, servants, and employees harmless from liability of any nature or kind, including cost and expenses for, or on account of any patented or unpatented invention, process, article, or appliance manufactured or used in the performance of the contract including its use by the Owner, unless otherwise specifically stipulated in the Contract Document.
B. License or Royalty Fees: License and/or Royalty Fees for the use of a process which is authorized by the Owner of the project must be reasonable, and paid to the holder of the patent, or his authorized license, direct by the Owner and not by or through the Contractor.
C. If the Contractor uses any design device or materials covered by letters, patent or copyright, he shall provide for such use by suitable agreement with the owner of such patented or copy-righted design device or material. It is mutually agreed and understood, that without exception the contract prices shall include all royalties or costs arising from the use of such design, device or materials, in any way involved in the work. The Contractor and/or his Sureties shall indemnify and save harmless the Owner of the project from any and all claims for infringement by reason of the use of such patented or copy-righted design, CDBG-DR-INFR Procurement Policies and Procedures
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device or materials or any trademark or copy-right in connection with work agreed to be performed under this contract, and shall indemnify the Owner for any cost, expense, or damage which it may be obliged to pay by reason of such infringement at any time during the prosecution of the work or after completion of the work.
17. COPYRIGHT
No materials, to include but not limited to reports, maps, or documents produced as a result of this contract, in whole or in part, shall be available to the Contractor for copyright purposes. Any such materials produced as a result of any contract that might be subject to copyright shall be the property of the Owner and all such rights shall belong to the Owner.
18. TERMINATION FOR CAUSE
If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his obligations under this contract, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this contract, the Owner shall thereupon have the right to terminate any contract by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports prepared by the Contractor under any contract shall, at the option of the Owner, become the Owner’s property and the Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder.
Notwithstanding the above, the Contractor shall not be relieved of liability to the Owner for damages sustained by the Owner by virtue of any breach of the contract by the Contractor, and the Owner may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the Owner from the Contractor is determined.
19. TERMINATION FOR CONVENIENCE
The Owner may terminate any contract at any time by giving at least ten (10) days’ notice in writing to the Contractor. If the contract is terminated by the Owner as provided herein, the Contractor will be paid for the time provided and expenses incurred up to the termination date.
20. ENERGY EFFICIENCY
The Contractor shall comply with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Public Law 94-163).
21. SUBCONTRACTS
A. The Contractor shall not enter into any subcontract with any subcontractor who has been debarred, suspended, declared ineligible, or voluntarily excluded from participating in contacting programs by any agency of the United States Government or the State of California.
B. The Contractor shall be as fully responsible to the Owner for the acts and omissions of the Contractor’s subcontractors, and of persons either directly or indirectly employed by them, as he is for the acts and omissions of persons directly employed by the Contractor.
C. The Contractor shall cause appropriate provisions to be inserted in all subcontracts relative to the work to bind subcontractor to the Contractor by the terms of the contract documents insofar as applicable to the CDBG-DR-INFR Procurement Policies and Procedures
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work of subcontractors and to give the Contractor the same power as regards terminating any subcontract that the Owner may exercise over the Contractor under any provision of the contract documents.
D. Nothing contained in any contract shall create any contractual relation between any subcontractor and the Owner.
22. DEBARMENT, SUSPENSION, AND INELIGIBILITY
The Contractor represents and warrants that it and its subcontractors are not debarred, suspended, or placed in ineligibility status under the provisions of 24 CFR 24 (government debarment and suspension regulations).
23. BREACH OF CONTRACT TERMS
Any violation or breach of terms of any contract on the part of the Contractor or the Contractor’s subcontractors may result in the suspension or termination of the contract or such other action that may be necessary to enforce the rights of the parties of the contract. The duties and obligations imposed by the contract documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law.
24. PROVISIONS REQUIRED BY LAW DEEMED INSERTED
Each and every provision of law and clause required by law to be inserted in any contract shall be deemed to be inserted herein and the contract shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction.
25. CHANGES
The Owner may, from time to time, request changes in the scope of the services of the Contractor to be performed hereunder. Such changes, including any increase or decrease in the amount of the Contractor’s compensation which are mutually agreed upon by and between the Owner and the Contractor, shall be incorporated in written and executed amendments to this Contract.
26. PERSONNEL
The Contractor represents that it has, or will secure at its own expense, all personnel required in performing the services under this Contract. Such personnel shall not be employees of or have any contractual relationship with the Owner. All the services required hereunder will be performed by the Contractor or under its supervision, and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such services.
No person who is serving sentence in a penal or correctional institution shall be employed on work under any Contract.
27. ANTI-KICKBACK RULES
Salaries of personnel performing work under any Contract shall be paid unconditionally and not less often than once a month without payroll deduction or rebate on any account except only such payroll deductions as are mandatory by law or permitted by the applicable regulations issued by the Secretary of Labor pursuant to the "Anti-Kickback Act" of June 13, 1934 (48 Stat. 948; 62 Stat. 740; 63 Stat. 108; CDBG-DR-INFR Procurement Policies and Procedures
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Title 18 U.S.C. 874; and Title 40 U.S.C. 276c). The Contractor shall comply with all applicable "AntiKickback" regulations and shall insert appropriate provisions in all subcontracts covering work under the contract to insure compliance by the subcontractors with such regulations, and shall be responsible for the submission of affidavits required of subcontractors thereunder except as the Secretary of Labor may specifically provide for variations of or exemptions from the requirements thereof.
28. ASSIGNABILITY
The Contractor shall not assign any interest in any Contract, and shall not transfer any interest in the same (whether by assignment or novation) without prior written approval of the Owner provided that claims for money due or to become due the Contractor from the Owner under the Contract may be assigned to a bank, trust company, or other financial institution, or to a Trustee in Bankruptcy, without such approval.
Notice of any such assignment or transfer shall be furnished promptly to the Owner.
29. INTEREST OF CONTRACTOR
The Contractor covenants that he presently has no interest and shall not acquire any interest direct or indirect in the above described project or any parcels therein or any other interest which would conflict in any manner or degree with the performance of his services hereunder. The Contractor further covenants that in the performance of any Contract no person having any such interest shall be employed.
30. POLITICAL ACTIVITY
The Contractor will comply with the provisions of the Hatch Act (5 U.S.C. 1501 et seq.), which limits the political activity of employees.
31. COMPLIANCE WITH THE OFFICE OF MANAGEMENT AND BUDGET The parties agree to comply with the regulations, policies, guidelines, and requirements of the Office of Management and Budget, Circulars A-95, A-102, A-133, and A-54, as they relate to the use of Federal funds under any contract.
32. DISCRIMINATION DUE TO BELIEFS
No person with responsibilities in operation of the project to which this grant relates will discriminate with respect to any program participant or any applicant for participation in such program because of political affiliation or beliefs.
33. CONFIDENTIAL FINDINGS
All of the reports, information, data, etc., prepared or assembled by the Contractor under any Contract are confidential, and the Contractor agrees that they shall not be made available to any individual or organization without prior written approval of the Owner.
34. LOBBYING
The Contractor certifies, to the best of his or her knowledge and belief that:
1. No federally appropriated funds have been paid or will be paid, by or on behalf of the contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection CDBG-DR-INFR Procurement Policies and Procedures
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27 June 2023
with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
2. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the contractor shall complete and submit Standard FormLLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
35. AUTHORIZATION
This Agreement is authorized by the [City of Shasta Lake] , Resolution [2022-92] adopted [October 4, 2023], copies of which are attached hereto and made a part hereof.
ATTEST:
___________________________
___________________________
___________________________
___________________________
[City of Shasta Lake]
By:________________________________
[Jessaca Lugo, City Manager]
Date: ______________________________
[PACE Engineering]
By:___________________________________
[Steven Wilson, Senior Engineer]
Date: _________________________________
CDBG-DR-INFR Procurement Policies and Procedures
120
Report and Recommendations 14 Reviewed and Approved
City Manager
AGENDA ITEM
City Council Meeting
TO: Jessaca Lugo, City Manager
FROM: Wendy Howard, Finance Director
DATE: August 30, 2023
SUBJECT: Resolution Accepting the Financial Statements, Single Audit Act Reports, and Auditor’s Letter to Council for the Fiscal Year Ending June 30, 2022 FILE NO: F-200-005-120
RECOMMENDATION:
Staff recommends approval of a Resolution by the Shasta Lake City Council accepting the Financial Statements, Single Audit Act Report, and Auditor’s Letter to Council for the Fiscal Year Ending June 30, 2022 for the City of Shasta Lake.
BACKGROUND:
The financial report is an accumulation of information relating to the activities directed and approved by the City Council, along with the actions necessary by Management to carry out the desires of the City Council. This year, as in prior years, the staff records these transactions and works diligently to ensure that everything is proceeding within the guidance given by the City Council.
FISCAL IMPACTS:
None.
ATTACHMENTS:
• Resolution accepting the Audited Financial Statements for the Fiscal Year Ending June 30, 2022
• Financial Statements Together with Independent Auditor’s Report for the Fiscal Year Ended June 30, 2022
• Single Audit Act Reports and Schedules for the Year Ended June 30, 2022 • Auditor’s Letter to Council
DISTRIBUTION:
City of Shasta Lake City Council
121
RESOLUTION CC-2023-XX
A SHASTA LAKE CITY COUNCIL RESOLUTION ACCEPTING THE AUDITED FINANCIAL STATEMENTS, SINGLE AUDIT ACT REPORT, MANAGEMENT LETTER, AND AUDITOR’S LETTER TO COUNCIL FOR FISCAL YEAR ENDING JUNE 30, 2022.
WHEREAS, the Shasta Lake City Council is required by Government Code to have an Annual Audit, and;
WHEREAS, the audit has been completed by Smith & Newell, Certified Public Accountants.
NOW, THEREFORE, BE IT RESOLVED that the Financial Statements, Single Audit Act Report, Management Letter, and Auditor’s Letter to Council for the fiscal year ending June 30, 2022 is hereby accepted; and
BE IT FURTHER RESOLVED that the Finance Director is hereby authorized and directed to disseminate that audited report to the appropriate recipients.
PASSED, APPROVED, AND ADOPTED this 5th day of September, 2023, by the following vote:
AYES:
NOES:
ABSENT:
GREG WATKINS, Mayor
ATTEST:
TONI M. COATES, CMC
City Clerk
122
123
124
CITY OF SHASTA LAKE,
CALIFORNIA
SINGLE AUDIT ACT
REPORTS AND SCHEDULES
FOR THE YEAR ENDED
JUNE 30, 2022
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CITY OF SHASTA LAKE
Single Audit Act
For the Year Ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................................................................1-2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance.................................................3-5 Schedule of Expenditures of Federal Awards for the Year Ended June 30, 2022 ........................................ 6 Notes to Schedule of Expenditures of Federal Awards .............................................................................7-8 Schedule of Findings and Questioned Costs............................................................................................9-12 Schedule of Prior Year Findings and Questioned Costs............................................................................. 13 Management’s Corrective Action Plan ....................................................................................................... 14 127
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CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]
SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Shasta Lake, (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated August 13, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2022-001 and 2022-002 to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2022-003 to be a significant deficiency. 129
-2-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying management’s corrective action plan. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Smith & Newell CPAs
Yuba City, California
August 13, 2023
130
CERTIFIED PUBLIC ACCOUNTANTS
-3-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]
SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Shasta Lake, California's (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2022. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
131
-4-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgement and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures, including examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 132
-5-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Shasta Lake, California, (City) as of and for the year ended June 30, 2022 and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated August 13, 2023, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Smith & Newell CPAs
Yuba City, California
August 13, 2023
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134
CITY OF SHASTA LAKE
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
Pass-Through
Assistance Entity Passed Total
Federal Grantor/Pass-Through Listing Identifying Through to Federal Grantor/Program Title Number Number Subrecipients Expenditures U.S. Department of Housing and Urban Development
State Department of Housing and Community Development:
Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 18-CDBG-12918 $ - $ 135,916 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 20-CDBG-CV2-3-00109 - 231,401 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 20-CDBG-12060 - 754,600 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 - - 95,000
Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 - - 254,204 Subtotal 14.228 - 1,471,121
Home Investment Partnerships Program 14.239 - - 1,200
Home Investment Partnerships Program 14.239 - - 2,744,192 Subtotal 14.239 - 2,745,392
Total U.S. Department of Housing and Urban Development - 4,216,513 U.S. Department of Transportation
State Department of Transportation:
Highway Planning and Construction 20.205 BRLS-5474 (015) - 80,128 Highway Planning and Construction 20.205 HSISPL-5474 (020) - 12,414 Subtotal 20.205 - Highway Planning and Construction Cluster - 92,542 Total U.S. Department of Transportation - 92,542
U.S. Department of the Treasury
State Department of Finance:
Coronavirus State and Local Fiscal Recovery Funds 21.027 - - 75,210 State Water Resources Control Board:
Coronavirus State and Local Fiscal Recovery Funds 21.027 CA4510006 - 77,191 Coronavirus State and Local Fiscal Recovery Funds 21.027 256627 - 77,249 Subtotal 21.027 - 229,650
Total U.S. Department of the Treasury - 229,650
U.S. Department of Homeland Security
State Office of Emergency Services:
Hazard Mitigation Grant Program 97.039 HMGP-4382-265-26P - 45,001 Total U.S. Department of Homeland Security - 45,001
Total $ - $ 4,583,706
See the accompanying Notes to Schedule of Expenditures of Federal Awards -6-
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136
CITY OF SHASTA LAKE
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
-7-
1. REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Shasta Lake, California (City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.
2. BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The accompanying Schedule of Expenditures of Federal Awards, is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in the notes to the City financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursements. In addition, the outstanding balance of prior years’ loans that have significant continuing compliance requirements have been included in total federal expenditures.
3. INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
4. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the related federal financial assistance reports.
5. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the City’s basic financial statements.
6. PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity. 137
CITY OF SHASTA LAKE
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
-8-
7. LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
The City participates in certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs require servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. In accordance with Section 200.510 of the Uniform Guidance, the City has reported the outstanding balance of loans from previous years that have significant continuing compliance requirements as of June 30, 2022, along with the value of total outstanding and new loans made during the current year.
The programs listed below had the following aggregate, federally funded loans outstanding at June 30, 2022:
Assistance Amount Outstanding
Listing
Number Program Title July 1, 2021 June 30, 2022
14.228 Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii $ 254,204 $ 341,694
14.239 Home Investment Partnerships Program 2,744,192 2,584,162 Total Loans Outstanding $ 2,998,396 $ 2,925,856
138
CITY OF SHASTA LAKE
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
-9-
SECTION I - SUMMARY OF AUDITOR’S RESULTS
Financial Statements Status
1. Type of auditor’s report issued Unmodified
2. Internal controls over financial reporting:
a. Material weaknesses identified? Yes
b. Significant deficiencies identified and not considered to be material weaknesses? Yes
3. Noncompliance material to financial statements noted? No Federal Awards
1. Internal control over major programs:
a. Material weaknesses identified? No
b. Significant deficiencies identified and not considered to be material weaknesses? No
2. Type of auditor’s report issued on compliance for major programs: Unmodified
3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? No
4. Identification of major programs:
14.239 Home Investment Partnerships Program
21.027 Coronavirus State and Local Fiscal Recovery Funds
5. Dollar threshold used to distinguish between Type A and Type B programs? $750,000
6. Auditee qualified as a low-risk auditee under 2 CFR Section 200.520? No
SECTION II - FINANCIAL STATEMENT FINDINGS
Prior Period Adjustment 2022-001
Reconciliation of Cash and Investments of the City 2022-002 Timeliness of Financial Statement Audit 2022-003
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None
139
CITY OF SHASTA LAKE
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
-10-
2022-001 Prior Period Adjustment (Material Weakness)
Criteria
Generally Accepted Accounting Principles require that errors of the prior year ending balances be corrected by a prior period adjustment to beginning fund balance/net position.
Condition
We noted that the City had understated the balance of cash with fiscal agent at June 30, 2021.
Cause
All year-end balances had not been reviewed for accuracy.
Effect
Cash with fiscal agent was understated at June 30, 2021.
Questioned Cost
No questioned costs were identified as a result of our procedures.
Context
Not applicable.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend that all year-end balances be reviewed for accuracy.
Views of Responsible Officials and Planned Corrective Action Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
140
CITY OF SHASTA LAKE
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
-11-
2022-002 Reconciliation of Cash and Investments of the City (Material Weakness) Criteria
Governmental Accounting Principles require that the cash and investments accounts be reconciled to the cash held in the various bank accounts.
Condition
We noted that there was a difference of approximately $95,000 between the cash reported on the general ledger and the bank reconciliation.
Cause
The City changed the accounting software for the year 2020-21, which resulted in a unidentified difference in the cash balance between the prior year and the current year.
Effect
There is an unidentified difference of approximately $95,000 between the cash balance on the general ledger and the cash reconciliation of the City.
Questioned Cost
No questioned costs were identified as a result of our procedures.
Context
We examined the year-end bank reconciliations of the City.
Repeat Finding
This is a repeat finding of prior year finding 2021-001.
Recommendation
We recommend that all cash and investment accounts on the City’s records be reconciled to the cash in the bank in a timely manner.
Views of Responsible Officials and Planned Corrective Action Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
141
CITY OF SHASTA LAKE
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
-12-
2022-003 Timeliness of Financial Statement Audit (Significant Deficiency) Criteria
Good internal control of financial statement reporting requires that audited financial statements be prepared timely in order to provide financial statement users with accurate and timely information. In addition, the State Controller’s Office requires that audited financial statements be submitted to them within 12 months after fiscal year-end.
Condition
The City did not have the financial audit until approximately 11 months after fiscal year-end and the final audited financial statements were not issued until August 13, 2023.
Cause
The City did not have the financial audit conducted until 11 months after fiscal year-end.
Effect
The audited financial statements for the fiscal year ending June 30, 2022 were not issued timely.
Questioned Cost
No questioned costs were identified as a result of our procedures.
Context
Not applicable.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the City make every effort to have the financial statement audit conducted timely.
Views of Responsible Officials and Planned Corrective Action Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
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PO BOX 777 | 4477 Main Street
Shasta Lake, CA 96019
(530) 275-7400
www.cityofshastalake.org
CITY OF SHASTA LAKE, CALIFORNIA
Schedule of Prior Year Findings and Questioned Costs
And
Corrective Action Plan
For the Year Ended June 30, 2022
Compiled by: Wendy Howard, Finance Director
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CITY OF SHASTA LAKE
Schedule of Prior Year Findings and Questioned Costs
For the Year Ended June 30, 2022
-13-
Audit Reference
2021-001
2021-002
Status of Prior Year Recommendations
Reconciliation of Cash and Investments of the City
Recommendation
We recommend that all cash and investment accounts on the City’s records be reconciled to the cash in the bank in a timely manner.
Status
Not Implemented
Reconciliation of Financial Statement Accounts
Recommendation
We recommend that the City reconcile all accounts in a timely manner so that required adjustments can be recorded prior to the start of the annual audit.
Status
Implemented
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CITY OF SHASTA LAKE
Management’s Corrective Action Plan
For the Year Ended June 30, 2022
-14-
2022-001 Prior Period Adjustment (Material Weakness)
We recommend that all year-end balances be reviewed for accuracy.
Management’s Response: The City agrees and all year-end balances will be reviewed for accuracy.
Responsible Individual: Wendy Howard, Finance Director
Corrective Action Plan: Year-end balances will be reviewed for accuracy before commencement of audit fieldwork.
Anticipated Completion Date: 8/31/2023
2022-002 Reconciliation of Cash and Investments of the City (Material Weakness) We recommend that all cash and investment accounts on the City’s records be reconciled to the cash in the bank in a timely manner.
Management’s Response: The City agrees and all cash and investment accounts will be reconciled in a timely manner.
Responsible Individual: Wendy Howard, Finance Director
Corrective Action Plan: Bank reconciliations will be completed by the end of the following month.
Anticipated Completion Date: 4/30/2023
2022-003 Timeliness of Financial Statement Audit (Significant Deficiency) We recommend that the City make every effort to have the financial statement audit conducted timely.
Management’s Response: The City agrees and all effort will be made to have the financial statement audit conducted in a timely manner.
Responsible Individual: Wendy Howard, Finance Director
Corrective Action Plan: All effort will be made to have the financial statement audit conducted in a timely manner.
Anticipated Completion Date: 12/31/2023
146
CITY OF SHASTA LAKE,
CALIFORNIA
FINANCIAL STATEMENTS
TOGETHER WITH
INDEPENDENT AUDITOR’S REPORT
FOR THE YEAR ENDED
JUNE 30, 2022
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148
CITY OF SHASTA LAKE
Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION
List of Officials..............................................................................................................................................i
FINANCIAL SECTION
Independent Auditor’s Report....................................................................................................................1-4 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................................5-6 Statement of Activities..................................................................................................................... 7 Fund Financial Statements:
Governmental Funds:
Balance Sheet ............................................................................................................................ 8 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position – Governmental Activities ............................ 9 Statement of Revenues, Expenditures and Changes in Fund Balances................................... 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities – Governmental Activities............................................................................... 11 Proprietary Funds:
Statement of Net Position...................................................................................................12-13 Statement of Revenues, Expenses and Changes in Net Position............................................. 14 Statement of Cash Flows....................................................................................................15-16 Fiduciary Funds:
Statement of Fiduciary Net Position........................................................................................ 17 Statement of Changes in Fiduciary Net Position..................................................................... 18 Notes to Basic Financial Statements ...............................................................................................19-58 Required Supplementary Information (Unaudited):
City Pension Plan – Schedule of Proportionate Share of the Net Pension Liability ............................ 59 City Pension Plan – Schedule of Contributions.................................................................................... 60 City Pension Plan – Notes to City Pension Plan .................................................................................. 61 City OPEB Plan – Schedule of Changes in the Net OPEB Liability and Related Ratios .................... 62 City OPEB Plan – Schedule of Contributions...................................................................................... 63 City OPEB Plan – Notes to City OPEB Plan ....................................................................................... 64 Budgetary Comparison Schedule – General Fund ............................................................................... 65 Budgetary Comparison Schedule – State Trafficway........................................................................... 66 Budgetary Comparison Schedule – CDBG Project.............................................................................. 67 Note to Budgetary Comparison Schedule ............................................................................................ 68 Combining and Individual Fund Financial Statements:
Nonmajor Governmental Funds:
Combining Balance Sheet.............................................................................................................. 69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances....................... 70 149
CITY OF SHASTA LAKE
Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (CONTINUED)
Combining and Individual Fund Financial Statements: (Continued) Nonmajor Governmental Funds: (Continued)
Special Revenue Funds:
Combining Balance Sheet ....................................................................................................... 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances................ 72 Debt Service Funds:
Combining Balance Sheet ....................................................................................................... 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances................ 74 Internal Service Funds:
Combining Statement of Net Position ........................................................................................... 75 Combining Statement of Revenues, Expenses and Changes in Net Position ................................ 76 Combining Statement of Cash Flows .......................................................................................77-78 150
INTRODUCTORY SECTION
• List of Officials
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152
CITY OF SHASTA LAKE
List of Officials
For the Year Ended June 30, 2022
-iElected Officials
Richard Kern Mayor
Matthew Doyle Vice-Mayor
Greg Watkins Member
Janice Powell Member
Pamelyn Morgan Member
Administrative Personnel
Jessaca Lugo City Manager
Vacant Assistant City Manager
John Kenny City Attorney
Wendy Howard Finance Director
Jason Peterson Finance and General Services Manager
James Takehara Electric Utility Director
William Bond City Engineer
Tony Thomasy Water Utility Specialist
Chris Carr Chief Water Treatment Plant Operator
Tom Chism Wastewater Treatment Superintendent
Tyler Thompson Sheriff’s Lieutenant
Toni Coates City Clerk
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154
FINANCIAL SECTION
• Independent Auditor’s Report
• Basic Financial Statements
• Required Supplementary Information
• Combining and Individual Fund Financial Statements
155
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156
CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]
SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Shasta Lake, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 157
-2-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgement and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
158
-3-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, City Pension Plan information, City OPEB Plan information, and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtain during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
159
-4-
To the Honorable Mayor and Members of the City Council
City of Shasta Lake
Shasta Lake, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 13, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Smith & Newell CPAs
Yuba City, California
August 13, 2023
160
Basic Financial Statements
• Government-Wide Financial Statements
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163
CITY OF SHASTA LAKE
Statement of Net Position
June 30, 2022
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments $ 11,452,435 $ 39,054,672 $ 50,507,107 Cash with fiscal agent 1,201,885 - 1,201,885
Receivables:
Accounts, net 104,051 3,465,282 3,569,333
Interest 30,754 159,043 189,797
Taxes 639,203 10,429 649,632
Intergovernmental 532,024 - 532,024
Assessments 2,274,000 560,002 2,834,002
Deposits 4,428 1,455,233 1,459,661
Prepaid costs 1,155 89,149 90,304
Inventory - 470,078 470,078
Internal balances 605,475 (605,475) -
Restricted cash and investments 386,005 - 386,005
Loans receivable 4,071,565 - 4,071,565
Land held for resale 534,984 - 534,984
Net pension asset 1,812,751 3,830,902 5,643,653
Net OPEB asset 426,862 695,866 1,122,728
Capital assets:
Non-depreciable 5,981,277 6,559,115 12,540,392
Depreciable, net 50,062,848 45,285,425 95,348,273
Total capital assets 56,044,125 51,844,540 107,888,665
Total Assets 80,121,702 101,029,721 181,151,423
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 3,083,811 6,517,037 9,600,848 Deferred OPEB adjustments 338,831 552,362 891,193
Total Deferred Outflows of Resources 3,422,642 7,069,399 10,492,041
LIABILITIES
Accounts payable 444,763 910,945 1,355,708
Retentions payable 95,431 7,857 103,288
Salaries and benefits payable 199,643 209,551 409,194
Due to other governments 772,238 770,343 1,542,581
Deposits payable 692,394 10,880 703,274
Interest payable 205,056 105,372 310,428
Unearned revenues 1,202,832 - 1,202,832
Long-term liabilities:
Due within one year 613,293 793,429 1,406,722
Due in more than one year 12,786,076 16,896,266 29,682,342 Total Liabilities 17,011,726 19,704,643 36,716,369
DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 1,428,661 3,019,199 4,447,860 Deferred OPEB adjustments 927,135 1,511,409 2,438,544
Total Deferred Inflows of Resources 2,355,796 4,530,608 6,886,404 The notes to the basic financial statements are an integral part of this statement. -5-
Continued (Page 1 of 2)
164
CITY OF SHASTA LAKE
Statement of Net Position
June 30, 2022
Governmental Business-Type
Activities Activities Totals
NET POSITION
Net investment in capital assets 51,398,350 34,515,927 85,914,277 Restricted for:
General government 1,107,749 - 1,107,749
Public safety 10,982 - 10,982
Public ways and facilities 406,549 - 406,549
Community development 5,721,946 - 5,721,946
Debt service 3,780,689 627,586 4,408,275
Unrestricted 1,750,557 48,720,356 50,470,913
Total Net Position $ 64,176,822 $ 83,863,869 $148,040,691 The notes to the basic financial statements are an integral part of this statement. -6-
Continued (Page 2 of 2)
165
CITY OF SHASTA LAKE
Statement of Activities
For the Year Ended June 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:
General government $ 1,177,311 $ 4,746,295 $ 331,514 $ - Public safety 3,819,891 194,708 - -
Public ways and facilities 2,254,670 273,651 2,869,180 101,075 Planning (52,877) - - -
Culture and recreation 251,852 3,717 - -
Community development 367,251 - 730,928 -
Interest on long-term debt 390,304 - - -
Total Governmental Activities 8,208,402 5,218,371 3,931,622 101,075 Business-type activities:
Water 1,838,960 3,926,941 - -
Electric 20,920,569 27,374,207 - 568
Wastewater 2,502,728 3,458,809 - -
Industrial park 52,122 32,829 - -
Total Business-Type Activities 25,314,379 34,792,786 - 568 Total $ 33,522,781 $ 40,011,157 $ 3,931,622 $ 101,643
General revenues:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Unrestricted grants and contributions
Interest and investment earnings
Miscellaneous
Loss on sale of capital assets
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Prior Period Adjustment
Net Position - Beginning, Restated
Net Position - Ending
The notes to the basic financial statements are an integral part of this statement. -7-
166
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Totals
$ 3,900,498 $ - $ 3,900,498
(3,625,183) - (3,625,183)
989,236 - 989,236
52,877 - 52,877
(248,135) - (248,135)
363,677 - 363,677
(390,304) - (390,304)
1,042,666 - 1,042,666
- 2,087,981 2,087,981
- 6,454,206 6,454,206
- 956,081 956,081
- (19,293) (19,293)
- 9,478,975 9,478,975
1,042,666 9,478,975 10,521,641
1,521,698 - 1,521,698
764,644 - 764,644
29,581 - 29,581
227,790 - 227,790
681,471 - 681,471
1,034,116 - 1,034,116
(100,502) (621,275) (721,777)
25,012 373,679 398,691
(90,244) - (90,244)
(53,916) 53,916 -
4,039,650 (193,680) 3,845,970
5,082,316 9,285,295 14,367,611
58,576,408 74,578,574 133,154,982
518,098 - 518,098
59,094,506 74,578,574 133,673,080
$ 64,176,822 $ 83,863,869 $ 148,040,691
The notes to the basic financial statements are an integral part of this statement. -7-
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168
Basic Financial Statements
• Fund Financial Statements
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170
CITY OF SHASTA LAKE
Balance Sheet
Governmental Funds
June 30, 2022
Other
State CDBG Governmental
General Trafficway Project Funds Totals
ASSETS
Cash and investments $ 5,555,235 $ 1,804,788 $ - $ 4,092,412 $ 11,452,435 Cash with fiscal agent 1,201,885 - - - 1,201,885
Receivables:
Accounts, net 104,051 - - 104,051
Interest 16,744 7,274 (4,041) 10,777 30,754
Taxes 464,687 155,031 - 19,485 639,203
Intergovernmental 54,554 41,019 356,721 79,730 532,024
Assessments - - - 2,274,000 2,274,000
Deposits 4,428 - - - 4,428
Prepaid costs 1,155 - - - 1,155
Due from other funds 497,771 - - - 497,771
Restricted cash and investments 112,197 - - 273,808 386,005 Loans receivable - - 263,089 3,808,476 4,071,565
Land held for resale - - - 534,984 534,984
Total Assets $ 8,012,707 $ 2,008,112 $ 615,769 $11,093,672 $ 21,730,260
LIABILITIES
Accounts payable $ 283,493 $ 155,287 - $ 5,983 $ 444,763 Retentions payable 8,647 86,784 - - 95,431
Salaries and benefits payable 199,643 - - - 199,643
Due to other governments 738,298 - 17,273 16,667 772,238 Deposits payable 692,394 - - - 692,394
Due to other funds - - 400,240 740 400,980
Advances from other funds 154,632 - - - 154,632
Unearned revenues 32,537 - - 1,170,295 1,202,832
Total Liabilities 2,109,644 242,071 417,513 1,193,685 3,962,913
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 138,226 41,019 322,522 53,730 555,497 Total Deferred Inflows of Resources 138,226 41,019 322,522 53,730 555,497
FUND BALANCES
Restricted 688,715 1,725,022 - 9,901,603 12,315,340
Unassigned 5,076,122 - (124,266) (55,346) 4,896,510
Total Fund Balances 5,764,837 1,725,022 (124,266) 9,846,257 17,211,850 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 8,012,707 $ 2,008,112 $ 615,769 $11,093,672 $ 21,730,260 The notes to the basic financial statements are an integral part of this statement. -8-
171
CITY OF SHASTA LAKE
Reconciliation of the Governmental Funds Balance
Sheet to the Government-Wide Statement of
Net Position - Governmental Activities
June 30, 2022
Total Fund Balance - Total Governmental Funds $ 17,211,850 Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds balance sheet. 56,044,125 Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable revenues in the governmental funds. 555,497 Interest payable on long-term debt does not require the use of current financial resources and therefore is not accrued as a liability in the governmental funds balance sheet. (205,056) Deferred outflows of resources related to pension and OPEB are not reported in the governmental funds. 3,422,642 Deferred inflows of resources related to pension and OPEB are not reported in the governmental funds. (2,355,796) Certain liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.
Revenue bonds payable (2,251,775)
Special assessment bonds payable (24,000)
Certificates of participation, less unamortized discount of $255,367 (10,964,633) Compensated absences (158,961)
Net pension asset 1,812,751
Net OPEB asset 426,862
Internal service funds are used by management to charge the cost of certain activities, such as equipment maintenance and operations, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position. 663,316 Net Position of Governmental Activities $ 64,176,822
The notes to the basic financial statements are an integral part of this statement. -9-
172
CITY OF SHASTA LAKE
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
Other
State CDBG Governmental
General Trafficway Project Funds Totals
REVENUES
Taxes and assessments $ 3,116,797 $ 482,981 $ - $ 50,893 $ 3,650,671 Licenses and permits 218,392 - - - 218,392
Fines and forfeitures 7,493 - - - 7,493
Use of money and property (26,585) (29,537) (4,075) (40,305) (100,502) Intergovernmental 1,240,418 1,098,581 3,388,542 201,210 5,928,751 Charges for services 4,835,419 16,801 - 140,266 4,992,486 Other revenues 25,012 - - - 25,012
Total Revenues 9,416,946 1,568,826 3,384,467 352,064 14,722,303
EXPENDITURES
Current:
General government 2,981,138 - - 129,130 3,110,268
Public safety 4,157,780 - - 100,000 4,257,780
Public ways and facilities 141,331 1,163,999 - - 1,305,330 Planning 643,062 - - - 643,062
Culture and recreation 309,725 - - - 309,725
Community development - - 344,175 23,076 367,251
Debt service:
Principal 404,000 - - 127,000 531,000
Interest and other charges 375,516 - - 105,392 480,908
Capital outlay 1,198,562 703,779 650,765 53,730 2,606,836 Total Expenditures 10,211,114 1,867,778 994,940 538,328 13,612,160 Excess of Revenues Over (Under)
Expenditures (794,168) (298,952) 2,389,527 (186,264) 1,110,143
OTHER FINANCING SOURCES (USES)
Proceeds from the sale of capital assets 198,929 - - - 198,929 Transfers out - - - (53,916) (53,916)
Total Other Financing Sources (Uses) 198,929 - - (53,916) 145,013 Net Change in Fund Balances (595,239) (298,952) 2,389,527 (240,180) 1,255,156 Fund Balances - Beginning 5,841,978 2,023,974 (2,513,793) 10,086,437 15,438,596 Prior period adjustment 518,098 - - - 518,098
Fund Balances - Beginning, Restated 6,360,076 2,023,974 (2,513,793) 10,086,437 15,956,694 Fund Balances - Ending $ 5,764,837 $ 1,725,022 $ (124,266) $ 9,846,257 $17,211,850 The notes to the basic financial statements are an integral part of this statement. -10-
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CITY OF SHASTA LAKE
Net Change in Fund Balances - Total Governmental Funds $ 1,255,156 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Expenditures for capital outlay 2,606,836
Less current year depreciation (1,400,981)
Governmental funds only report the disposal of assets to the extent proceeds are received from the sale.
In the Statement of Activities, gain or loss is reported for each disposal. This is the net cost of the capital assets disposed. Proceeds from the sale of capital assets was $198,929. (289,173) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Principal retirements 531,000
Amortization of bond issue costs (14,187)
Some revenues reported in the Statement of Activities will not be collected for several months after the City's year end and do not provide current financial resources and therefore are not reported as revenues in the governmental funds.
Change in unavailable revenues (1,287,425)
Certain changes in deferred outflows and deferred inflows of resources reported in the Statement of Activities relate to long-term liabilities and are not reported in the governmental funds.
Change in deferred outflows of resources related to pension 942,147 Change in deferred inflows of resources related to pension 60,216 Change in deferred outflows of resources related to OPEB 521,560 Change in deferred inflows of resources related to OPEB (150,277) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds.
Change in compensated absences payable 15,000
Change in net pension liability 1,958,482
Change in net OPEB liability 112,515
Change in accrued interest on long-term debt 90,604
Internal service funds are used by management to charge the cost of certain activities, such as equipment maintenance and operations, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities. 130,843 Change in Net Position of Governmental Activities $ 5,082,316 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the For the Year Ended June 30, 2022
Government-Wide Statement of Activities - Governmental Activities The notes to the basic financial statements are an integral part of this statement. -11-
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CITY OF SHASTA LAKE
Statement of Net Position
Proprietary Funds
June 30, 2022
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park
ASSETS
Current Assets:
Cash and investments $ 5,154,366 $ 25,887,125 $ 5,895,426 $ - Receivables:
Accounts, net 513,680 2,511,045 439,547 -
Interest 20,188 107,600 23,749 -
Taxes - - - 10,429
Assessments - - - 560,002
Deposits - 1,455,233 - -
Prepaid costs 12,560 76,589 - -
Inventory 4,108 465,970 - -
Total Current Assets 5,704,902 30,503,562 6,358,722 570,431 Noncurrent Assets:
Advances to other funds - 295,661 - -
Net pension asset 422,041 1,799,309 446,839 -
Net OPEB asset 127,991 204,224 - -
Capital assets:
Non-depreciable 267,210 4,252,450 646,759 1,392,696
Depreciable, net 10,953,351 6,106,707 27,328,158 -
Total Noncurrent Assets 11,770,593 12,658,351 28,421,756 1,392,696 Total Assets 17,475,495 43,161,913 34,780,478 1,963,127
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 717,966 3,060,941 760,151 - Deferred OPEB adjustments 101,596 162,108 - -
Total Deferred Outflows of Resources 819,562 3,223,049 760,151 - The notes to the basic financial statements are an integral part of this statement. -12-
Continued (Page 1 of 2)
176
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 36,936,917 $ 2,117,755
3,464,272 1,010
151,537 7,506
10,429 -
560,002 -
1,455,233 -
89,149 -
470,078 -
43,137,617 2,126,271
295,661 -
2,668,189 1,162,713
332,215 363,651
6,559,115 -
44,388,216 897,209
54,243,396 2,423,573
97,381,013 4,549,844
4,539,058 1,977,979
263,704 288,658
4,802,762 2,266,637
The notes to the basic financial statements are an integral part of this statement. -12-
Continued (Page 1 of 2)
177
CITY OF SHASTA LAKE
Statement of Net Position
Proprietary Funds
June 30, 2022
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park
LIABILITIES
Current Liabilities:
Accounts payable 95,482 699,851 85,343 -
Retentions payable 7,857 - - -
Salaries and benefits payable 22,692 91,700 23,538 -
Due to other governments 127,276 634,516 1,622 -
Deposits payable 10,880 - - -
Due to other funds - - - 96,791
Interest payable 35,840 - 59,032 10,500
Compensated absences payable 18,299 81,786 26,443 -
Loans payable 181,429 - 391,459 -
Bonds payable - - - 40,000
Total Current Liabilities 499,755 1,507,853 587,437 147,291 Noncurrent Liabilities:
Compensated absences payable 18,299 81,786 26,443 -
Advances from other funds 25,478 - 25,655 -
Loans payable 2,657,383 - 13,498,342 -
Bonds payable - - - 560,000
Total Noncurrent Liabilities 2,701,160 81,786 13,550,440 560,000 Total Liabilities 3,200,915 1,589,639 14,137,877 707,291
DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 332,618 1,418,066 352,161 - Deferred OPEB adjustments 277,994 443,571 - -
Total Deferred Inflows of Resources 610,612 1,861,637 352,161 -
NET POSITION
Net investment in capital assets 8,381,749 10,359,157 14,085,116 792,696 Restricted - - 627,586 -
Unrestricted 6,101,781 32,574,529 6,337,889 463,140
Total Net Position $ 14,483,530 $ 42,933,686 $ 21,050,591 $ 1,255,836 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net Position of Business-Type Activities
The notes to the basic financial statements are an integral part of this statement. -13-
Continued (Page 2 of 2)
178
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
880,676 30,269
7,857 -
137,930 71,621
763,414 6,929
10,880 -
96,791 -
105,372 -
126,528 54,013
572,888 -
40,000 -
2,742,336 162,832
126,528 54,013
51,133 89,896
16,155,725 -
560,000 -
16,893,386 143,909
19,635,722 306,741
2,102,845 916,354
721,565 789,844
2,824,410 1,706,198
33,618,718 897,209
627,586 -
45,477,339 3,906,333
79,723,643 $ 4,803,542
4,140,226
$ 83,863,869
The notes to the basic financial statements are an integral part of this statement. -13-
Continued (Page 2 of 2)
179
CITY OF SHASTA LAKE
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park
OPERATING REVENUES
Charges for services $ 3,926,941 $ 27,374,207 $ 3,458,809 $ - Other revenues 8,306 365,373 - -
Total Operating Revenues 3,935,247 27,739,580 3,458,809 -
OPERATING EXPENSES
Salaries and benefits 771,079 (992,738) 593,845 -
Administration 626,542 3,286,856 572,857 7,016
Power and water 330,715 17,067,049 371,257 489
Insurance 60,000 174,138 86,704 12,142
Supplies 81,133 17,794 27,452 -
Repair and maintenance 379,727 686,735 256,920 -
Professional services - 53,017 49,690 625
Depreciation 630,783 642,442 1,293,145 -
Other expense 11,721 24,714 9,590 -
Total Operating Expenses 2,891,700 20,960,007 3,261,460 20,272 Operating Income (Loss) 1,043,547 6,779,573 197,349 (20,272)
NON-OPERATING REVENUES (EXPENSES)
Assessment revenue - - - 32,829
Intergovernmental - 568 - -
Interest income (81,453) (411,795) (97,570) -
Interest expense (96,311) - (241,845) (31,850)
Gain on sale of assets - - - -
Total Non-Operating Revenues (Expenses) (177,764) (411,227) (339,415) 979 Income (Loss) Before Transfers 865,783 6,368,346 (142,066) (19,293) Transfers in 650 - 53,266 -
Change in Net Position 866,433 6,368,346 (88,800) (19,293) Total Net Position - Beginning 13,617,097 36,565,340 21,139,391 1,275,129 Total Net Position - Ending $ 14,483,530 $ 42,933,686 $ 21,050,591 $ 1,255,836 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in Net Position of Business-Type Activities
The notes to the basic financial statements are an integral part of this statement. -14-
180
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 34,759,957 $ 3,254,063
373,679 9,483
35,133,636 3,263,546
372,186 (142,847)
4,493,271 723,696
17,769,510 -
332,984 20,872
126,379 23,353
1,323,382 142,156
103,332 20,776
2,566,370 235,160
46,025 -
27,133,439 1,023,166
8,000,197 2,240,380
32,829 -
568 -
(590,818) (30,457)
(370,006) (2,842)
- 82,371
(927,427) 49,072
7,072,770 2,289,452
53,916 -
7,126,686 2,289,452
2,514,090
$ 4,803,542
2,158,609
$ 9,285,295
The notes to the basic financial statements are an integral part of this statement. -14-
181
CITY OF SHASTA LAKE
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 4,175,448 $ 28,583,301 $ 3,538,918 $ - Receipts from interfund services - - - -
Payments to suppliers (1,470,569) (22,205,258) (1,298,013) (20,272) Payments to employees (1,602,917) (2,424,588) (1,461,199) - Net Cash Provided by Operating Activities 1,101,962 3,953,455 779,706 (20,272)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Transfers from other funds 650 - 53,266 -
Interfund loans received - - - 96,791
Interfund loans repaid (12,545) - (12,631) (66,369)
Interfund loans repayments received - 145,576 - -
Grants, assessments, and other receipts - 568 - 62,400
Net Cash Provided (Used) by Non-Capital
Financing Activities (11,895) 146,144 40,635 92,822
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (612,418) (2,887,990) - - Proceeds from the sale of capital assets - - - -
Principal paid on debt (176,092) - (384,916) (40,000)
Interest paid on debt (98,534) - (243,481) (32,550)
Net Cash Provided (Used) by Capital and Related
Financing Activities (887,044) (2,887,990) (628,397) (72,550)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments (97,079) (508,086) (114,202) -
Net Cash Provided by Investing Activities (97,079) (508,086) (114,202) - Net Increase (Decrease) in Cash and Cash
Equivalents 105,944 703,523 77,742 -
Balances - Beginning 5,048,422 25,183,602 5,817,684 -
Balances - Ending $ 5,154,366 $ 25,887,125 $ 5,895,426 $ - The notes to the basic financial statements are an integral part of this statement. -15-
Continued (Page 1 of 2)
182
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 36,297,667 $ 9,483
- 3,254,422
(24,994,112) (947,848)
(5,488,704) (2,118,846)
5,814,851 197,211
53,916 -
96,791 -
(91,545) (44,262)
145,576 -
62,968 -
267,706 (44,262)
(3,500,408) (183,750)
- 91,898
(601,008) -
(374,565) (2,842)
(4,475,981) (94,694)
(719,367) (36,094)
(719,367) (36,094)
887,209 22,161
36,049,708 2,095,594
$ 36,936,917 $ 2,117,755
The notes to the basic financial statements are an integral part of this statement. -15-
Continued (Page 1 of 2)
183
CITY OF SHASTA LAKE
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities - Enterprise Funds
Major Funds Nonmajor
Industrial
Water Electric Wastewater Park
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss) $ 1,043,547 $ 6,779,573 $ 197,349 $ (20,272) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation 630,783 642,442 1,293,145 -
Decrease (increase) in:
Accounts receivable 237,587 843,721 80,109 -
Deposits - (916,255) - -
Prepaid costs 27,272 (4,169) - -
Inventory - 16,637 - -
Pension adjustment - deferred outflows (322,283) (965,237) (341,731) - OPEB adjustment - deferred outflows (43,522) (34,208) 38,716 - Increase (decrease) in: -
Accounts payable (102,934) 352,303 74,949 -
Salaries and benefits payable 4,009 7,743 942 -
Due to other governments 94,931 (343,471) 1,508 -
Deposits payable 2,614 - - -
Compensated absences 3,278 15,094 5,524 -
Net pension liability (406,842) (1,996,977) (398,427) - Net OPEB asset/(liability) (124,154) (221,861) 2,365 -
Pension adjustment - deferred inflows (58,392) (308,829) (66,793) - OPEB adjustment - deferred inflows 116,068 86,949 (107,950) - Net Cash Provided by Operating Activities $ 1,101,962 $ 3,953,455 $ 779,706 $ (20,272) The notes to the basic financial statements are an integral part of this statement. -16-
Continued (Page 2 of 2)
184
Governmental/
Business-Type
Funds Activities
Internal
Service
Totals Funds
$ 8,000,197 $ 2,240,380
2,566,370 235,160
1,161,417 359
(916,255) -
23,103 -
16,637 -
(1,629,251) (645,186)
(39,014) (100,610)
324,318 (20,939)
12,694 3,085
(247,032) 3,944
2,614 -
23,896 (4,018)
(2,802,246) (1,113,608)
(343,650) (426,917)
(434,014) (239,952)
95,067 265,513
$ 5,814,851 $ 197,211
The notes to the basic financial statements are an integral part of this statement. -16-
Continued (Page 2 of 2)
185
CITY OF SHASTA LAKE
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
Private Custodial
Purpose Fund
Trust Fund (Community Total
(Successor Facilities Fiduciary
ASSETS Agency) District) Funds
Current Assets:
Cash and investments $ 540,843 $ 434,621 $ 975,464
Receivables:
Interest 1,135 1,520 2,655
Taxes - 872 872
Total Current Assets 541,978 437,013 978,991
Noncurrent Assets:
Land held for resale 484 - 484
Total Noncurrent Assets 484 - 484
Total Assets 542,462 437,013 979,475
LIABILITIES
Current Liabilities:
Accounts payable - 4,007 4,007
Interest payable 6,117 - 6,117
Unearned revenues 384,703 - 384,703
Loans payable 345,000 - 345,000
Total Current Liabilities 735,820 4,007 739,827
Noncurrent Liabilities:
Loans payable 1,520,000 - 1,520,000
Total Noncurrent Liabilities 1,520,000 - 1,520,000
Total Liabilities 2,255,820 4,007 2,259,827
NET POSITION
Restricted for:
Successor Agency to the Redevelopment Agency (1,713,358) - (1,713,358) Individuals, organizations, and other governments - 433,006 433,006 Total Net Position $ (1,713,358) $ 433,006 $ (1,280,352) The notes to the basic financial statements are an integral part of this statement. -17-
186
CITY OF SHASTA LAKE
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
Private Custodial
Purpose Fund
Trust Fund (Community Total
(Successor Facilities Fiduciary
Agency) District) Funds
ADDITIONS
Taxes and assessments $ 409,531 $ 69,941 $ 479,472
Interest income (4,448) (6,239) (10,687)
Total Additions 405,083 63,702 468,785
DEDUCTIONS
Administrative expenses 5,025 - 5,025
Distribution of funds held for others - 39,565 39,565
Interest expense 80,177 - 80,177
Total Deductions 85,202 39,565 124,767
Net Increase (Decrease) in Fiduciary Net Position 319,881 24,137 344,018 Total Net Position - Beginning (2,033,239) 408,869 (1,624,370) Total Net Position - Ending $ (1,713,358) $ 433,006 $ (1,280,352) The notes to the basic financial statements are an integral part of this statement. -18-
187
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188
Basic Financial Statements
• Notes to Basic Financial Statements
189
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190
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-19-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City operates under a Council form of government and provides the following services: sanitation, electric, water and wastewater services; the construction and maintenance of highways, streets and infrastructure; recreational activities and cultural events.
Component Units
Generally accepted accounting principles require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an organization’s governing body and is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.
Reporting for component units on the City’s financial statements can be blended or discretely presented.
Blended component units are, although legally separate entities, in substance part of the City’s operations and, therefore, data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, would be reported in a separate column in the governmentwide financial statements to emphasize it is legally separate from the government.
For financial reporting purposes, the City’s basic financial statements include all financial activities that are controlled by or are dependent upon actions taken by the City Council. The financial statements of the individual component units may be obtained by writing to the City of Shasta Lake, 4477 Main Street, Shasta Lake, CA 96019.
Blended Component Units
Shasta Lake Public Financing Authority (PFA) - The Authority, established in 1994, was created for the purpose of financing public capital improvements. The City is financially accountable for this entity.
Financial accountability is primarily demonstrated by the City Council acting as the governing board for the PFA and its ability to impose its will. The financing activity of the PFA has been included in the City’s financial statements in the major debt service fund, Wastewater Treatment Debt.
The City of Shasta Lake Housing Authority - The Authority, established in 1994, was created for the purpose of administering housing programs. The housing programs and services are clustered in two broad categories: affordable housing and special projects. Because of the nature of the programs and their intended outcomes, the categories will often overlap. The City is financially accountable for this entity.
Financial accountability is primarily demonstrated by the City Council acting as the governing board for the Authority and its ability to impose its will. As an integral part of the City, the Authority is reported as a nonmajor special revenue fund of the City.
Discretely Presented Component Units
There are no component units of the City which meet the criteria for discrete presentation. 191
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-20-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Joint Agencies
The City is a participant in Small Cities Organized Risk Effort (SCORE), the purpose of which is for member cities to share in the administrative costs of providing liability and workers’ compensation insurance. SCORE is composed of 18 member cities and is governed by a board of directors appointed by the member cities. Complete financial information can be obtained from the SCORE offices at 2180 Harvard Street, Suite 460, Sacramento, CA 95815. The City is not financially accountable for this organization and therefore it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board.
The City is a participant in the Redding Area Bus Authority (RABA), the purpose of which is to provide a public transit system to the City of Redding, City of Anderson, City of Shasta Lake, and adjacent urbanized areas in unincorporated areas of Shasta County. The governing board of RABA is comprised of eight members, five appointed by the City of Redding and one member by the City of Anderson, City of Shasta Lake, and Shasta County. Complete financial statements for RABA can be obtained from the City of Redding Finance Division, 777 Cypress Avenue, Redding, CA 96001. The City is not financially accountable for this organization and therefore it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board.
B. Basis of Presentation
Government-Wide Financial Statements
The Statement of Net Position and Statement of Activities display information on all of the nonfiduciary activities of the City and its blended component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent, on fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions, and 3) capital grants and contributions. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories; each is displayed in a separate column. All remaining governmental and proprietary funds are separately aggregated and reported as nonmajor funds.
192
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-21-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
The City reports the following major governmental funds:
• The General fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General fund includes such activities as general government, public protection, community development, public ways and facilities, planning, and culture and recreation services. • The State Trafficway fund is a special revenue fund used to account for transportation revenues and expenditures.
• The CDBG Project fund is a special revenue fund used to account for the CDBG program. Funding comes primarily from grant revenues.
The City reports the following major proprietary funds:
• The Water fund is an enterprise fund used to account for activity related to providing customers with water service and billing for water service provided by the City. • The Electric fund is an enterprise fund used to account for activity related to providing customers with electric service and billing for electric service provided by the City. • The Wastewater fund is an enterprise fund used to account for activity related to providing customers with wastewater service and billing for wastewater service provided by the City.
The City reports the following additional fund types:
• Internal Service funds (ISF) account for the City’s motor pool and public works departments, which provide services to other departments on a cost reimbursement basis. • Private-purpose trust funds are used to report all fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds and (b) are held in a trust in which the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from the creditors of the government. • Custodial funds are used to report fiduciary activities that are not required to be reported in pension trust funds, investment trust funds, or private-purpose trust funds. 193
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-22-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting and Measurement Focus
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales tax, grants, entitlements, and donations. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.
Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
Property and sales taxes, interest, certain state and federal grants and charges for services are considered susceptible to accrual and are accrued when their receipt occurs within sixty days after the end of the fiscal year. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures as well as expenditures related to claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in the various functions of the governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Fiduciary funds include private-purpose trust funds and custodial funds. The fiduciary funds are reported using the accrual basis of accounting to recognize receivables and payables.
D. Non-Current Governmental Assets/Liabilities
Non-current governmental assets and liabilities, such as capital assets and long-term liabilities, are reported in the governmental activities column in the government-wide Statement of Net Position.
E. Cash and Cash Equivalents
For purposes of the accompanying Statement of Cash Flows, the City considers all highly liquid investments, including restricted cash and investments, with an original maturity of three months or less and amounts held in the City’s investment pool to be cash and cash equivalents.
F. Investments
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. 194
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-23-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Investments (Continued)
Investment transactions are recorded on the trade date. The fair value of investments is determined monthly.
Investments in nonparticipating interest-earning investment contracts are reported at cost; short term investments are reported at amortized cost, investments in the State of California Local Agency Investment Fund, an external pool, are reported at amortized cost which approximates fair value, and the fair value of all other investments are obtained by using quotations obtained from independent published sources or by the safekeeping institution. The fair value represents the amount the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller.
Income from pooled investments is allocated to the individual funds based on the fund or participant’s average daily cash balance at quarter end in relation to the total pool investments. Income from non-pooled investments is recorded based on the specific investments held by the fund. The interest income is recorded in the fund that earned the interest.
G. Restricted Cash and Investments
Restricted assets in the governmental funds represent cash and investments held in the General fund for customer utility deposits of $112,197 and in the Wastewater Treatment Debt fund for debt service of $273,808.
H. Receivables
Receivables for governmental activities consist mainly of accounts, interest, taxes, intergovernmental revenues, and special assessments. Management records an allowance for doubtful accounts based on historical trends and the periodic aging of receivables. At June 30, 2022, the allowance for doubtful accounts was $8,598.
Receivables for business-type activities consist mainly of user fees, interest, taxes, intergovernmental revenues and special assessments. Management records an allowance for doubtful accounts based on historical trends and the periodic aging of receivables. At June 30, 2022, the allowance for doubtful accounts was $80,594.
I. Other Assets
Deposits
The City has recorded deposits in several funds. The General fund made payments during the year to various other agencies and the Electric fund of the City made payments during the year to Western Area Power Administration for future construction projects and to WCI, Inc. for the CARB quarterly auction.
Inventory
Governmental fund inventories are recorded as expenditures at the time inventory is purchased rather than when consumed. Records are not maintained of inventory and supplies on hand, although these amounts are not considered material.
195
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-24-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Other Assets (Continued)
Inventory (Continued)
Inventories are stated at cost using the first-in, first-out method for proprietary funds. Inventory recorded by the proprietary funds includes electric power equipment. Proprietary fund inventories are recorded as expenses when consumed.
Prepaid Items
Payments made for services that will benefit periods beyond June 30, 2022, are recorded as prepaid costs in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
J. Loans Receivable
A total of $4,071,565 was recorded as loans receivable at June 30, 2022. These represent low interest notes and related accrued interest to finance multi-family and single-family construction and rehabilitation projects and homebuyer assistance for low-income families. Loan terms are 15 to 55 years with an interest rate at 0 to 5 percent. The primary source of funding for these loans comes from grants from the Federal Community Development Block Grant (CDBG) program and Home Investment Partnerships (HOME) program and the State CalHome program. The CDBG, HOME and CalHome grants contain monitoring requirements to ensure grant compliance. These requirements are reflected in the loan agreements.
K. Land Held for Resale
Land held for resale is generally acquired under Developer Disposition Agreements in the normal course of Low and Moderate Fund activity. The Developer Disposition Agreements provide for transfer of property to developers after certain obligations have been fulfilled. This property is carried at cost until an event occurs to indicate a net realizable value.
L. Capital Assets
Capital assets, including public domain (infrastructure such as roads, bridges, sidewalks, sewer, and similar items) are defined by the City as assets with a cost greater than $5,000 for equipment, $25,000 for buildings and improvements, and $50,000 for infrastructure assets. Capital assets are recorded at historical cost or estimated historical cost if actual historical cost is unavailable. Contributed capital assets are recorded at their acquisition value at the date of donation.
Capital assets used in operations are depreciated or amortized using the straight-line method over the assets’ estimated useful lives in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:
Depreciable Asset Estimated Lives
Electric, water and wastewater system assets 20 to 50 years Other system assets 20 to 33 years
Buildings 33 years
Equipment 5 to 10 years
Infrastructure 20 to 50 years
196
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-25-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Capital Assets (Continued)
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
M. Property Tax
Shasta County assesses properties, bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.
Property taxes are levied on a fiscal year (July 1 - June 30). The secured property tax assessments are due on November 1 and February 1 and become delinquent after December 10 and April 10, respectively. The unsecured property tax assessments are due on August 1, and become delinquent after August 31. Property taxes become a lien on the property effective January 1 of the preceding year.
The City recognizes property taxes when the individual installments are due provided they are collected within 60 days after year-end.
N. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.
Loans reported as receivables and payables are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide statement of activities.
Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.
All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation.
O. Unearned Revenue
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned. When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue. 197
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Due to Other Governments
Accrued liabilities payable to other governmental entities are recorded in both the government-wide and fund financial statements as due to other governments.
Q. Compensated Absences
In the government-wide financial statements, vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is recorded as an expense and related liability with the current portion estimated based on historical trends. In the governmental fund financial statements the expenditures and liabilities related to those obligations are recognized only when they mature. Vested or accumulated vacation leave of proprietary funds and in the government-wide financial statements is recorded as an expense and liability of those funds as the benefits accrue to employees.
Sick leave, however, does not vest to the employees and is payable only when sick leave is taken or when an individual has been employed by the City for ten years or longer. These employees receive 25 percent of their accrued sick pay, up to 100 hours, as additional termination pay.
In accordance with GASB Statement No. 16, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave benefits that is estimated to be taken as additional termination pay.
All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. In governmental funds, the cost of vacation and sick leave benefits is recognized when payments are made to employees.
R. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pension, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
S. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
198
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Other Postemployment Benefits (OPEB) (Continued)
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period June 30, 2020 to June 30, 2021
T. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items which qualify for reporting in this category. These items relate to the outflows from changes in the net pension liability and the net OPEB liability and are reportable on the Statement of Net Position.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The government has three types of items which qualify for reporting in this category. One item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for receivables that have not been received within the modified accrual period. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second and third items relate to the inflows from changes in the net pension liability and the net OPEB liability and are reportable on the Statement of Net Position.
U. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
V. Implementation of Governmental Accounting Standards Board (GASB) Statements The following Governmental Accounting Standards Board (GASB) Statements have been implemented, if applicable, in the current financial statements.
Statement No. 87, Leases. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This statement enhances the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and simplifies accounting for interest cost incurred before the end of a construction period.
199
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. Implementation of Governmental Accounting Standards Board (GASB) Statements (Continued) Statement No. 92, Omnibus 2020. This Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature.
Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is to address implications of GASB Statement No. 53 and GASB Statement No. 87 and other accounting and financial reporting implications that result from the replacement of an IBOR.
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The requirements of this Statement will result in more consistent financial reporting of defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans.
The requirements also will enhance the relevance, consistency, and comparability of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans.
W. Future Accounting Pronouncements
The following GASB Statements will be implemented, if applicable, in future financial statements:
Statement No. 91 “Conduit Debt Obligations” The requirements of this statement are effective for periods beginning after December 15, 2021. (FY 22/23)
Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements” The requirements of this statement are effective for periods beginning after June 15, 2022. (FY 22/23)
Statement No. 96 “Subscription-Based Information Technology Arrangements” The requirements of this statement are effective for periods beginning after June 15, 2022. (FY 22/23) NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Restatement of Net Position/Fund Balance
Adjustments resulting from errors or a change to comply with provisions of the accounting standards are treated as adjustments to prior periods. Accordingly, the City reports these changes a restatements of beginning net position/fund balance. During the current year the City reported a prior period adjustment to correct a prior year understatement of cash with fiscal agent. 200
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-29-
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) A. Restatement of Net Position/Fund Balance (Continued) The impact of the restatement on the net position of the government-wide financial statements as previously reported is presented below:
Governmental
Activities
Net Position, June 30, 2021 as previously reported $ 58,576,408 Adjustment associated with:
Correction of prior year understatement of cash with fiscal agent 518,098 Total Adjustments 518,098
Net Position, July 1, 2021 as restated $ 59,094,506
The impact of the restatement on the fund balance of the fund financial statements as previously reported is presented below:
General Fund
Fund Balance, June 30, 2021 as previously reported $ 5,841,978 Adjustment associated with:
Correction of prior year understatement of cash with fiscal agent 518,098 Total Adjustments 518,098
Fund Balance, July 1, 2021 as restated $ 6,360,076
B. Deficit Fund Balance
The following major special revenue fund had a deficit fund balance:
• The CDBG Project fund had a fund balance deficit of $124,266, which is expected to be eliminated in future years through intergovernmental revenues.
The following nonmajor special revenue funds had deficit fund balances:
• The Wastewater P & FCC Charges fund had a fund balance deficit of $586, which is expected to be eliminated in future years through increased charges for services. • The Grant fund had a fund balance deficit of $54,760, which is expected to be eliminated in future years through intergovernmental revenues.
C. Rebatable Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of taxexempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. During the current year, the City performed calculations of excess investment earnings on various bonds and financing and at June 30, 2022, does not expect to incur a liability.
201
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 3: CASH AND INVESTMENTS
A. Financial Statement Presentation
As of June 30, 2022, the City’s cash and investments are reported in the financial statements as follows:
Governmental activities $ 13,040,325
Business-type activities 39,054,672
Fiduciary funds 975,464
Total Cash and Investments $ 53,070,461
As of June 30, 2022, the City’s cash and investments consisted of the following:
Cash:
Cash on hand $ 2,072
Deposits (less outstanding checks) 1,392,170
Cash with fiscal agent 1,201,885
Total Cash 2,596,127
Investments:
In City’s pool 50,474,334
Total Investments 50,474,334
Total Cash and Investments $ 53,070,461
B. Cash
At year end, the carrying amount of the City’s cash deposits (including amounts in checking accounts and money market accounts) was $2,594,055 and the bank balance was $3,085,708. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit. In addition, the City had cash on hand of $2,072.
Custodial Credit Risk for Deposits - Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The City’s investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 105 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits of more than the $250,000 insured amount are collateralized.
C. Investments
Pursuant to Section 53646 of the Government Code, the City prepares an investment policy annually and presents it to the City Council for review and approval. The investment policy provides the basis for the management of a prudent, conservative investment program. Funds are invested to provide the maximum security of principal with secondary emphasis on achieving the highest return, while meeting daily cash flow needs. All investments are made in accordance with the Government Code and, in general, the investment policy is more restrictive than state law.
202
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-31-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Under the provisions of the City’s investment policy the City may invest or deposit in the following:
Municipal Securities
U.S. Treasuries
Federal Agencies
Bankers’ Acceptances
Federally Insured Time Deposits
Collateralized Time Deposits
Certificate of Deposit Placement Service (CDARS)
Negotiable Certificates of Deposit
Repurchase Agreement
Commercial Paper
State of California Local Agency Investment Fund (LAIF) Corporate Medium-Term Notes
Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations
Money Market Mutual Funds
Fair Value of Investments - The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a threetiered fair value hierarchy as follows:
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs
The City’s position in external investment pools is in itself regarded as a type of investment and looking through to the underlying investments of the pool is not appropriate. Therefore, the City’s investments in external investment pools are not recognized in the three-tiered fair value hierarchy described above.
At June 30, 2022, the City had the following recurring fair value measurements:
Fair Value Measurements Using
Investment Type Fair Value Level 1 Level 2 Level 3
Investments by Fair Value Level
Federal Agencies $ 9,387,011 $ 9,387,011 $ - $ -
U.S. Treasuries 12,890,543 12,890,543 - -
Collateralized Mortgage Obligations 597,158 597,158 - - Corporate Medium-Term Notes 7,328,883 7,328,883 - -
Asset-Backed Securities 2,195,310 2,195,310 - -
Supranationals 354,379 354,379 - -
Total Investments Measured at Fair Value 32,753,284 $32,753,284 $ - $ - Investments in External Investment Pools
Shasta County Investment Pool 273,808
LAIF 17,447,242
Total Investments $ 50,474,334
203
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-32-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Interest Rate Risk - Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To limit the exposure to fair value losses resulting from increases in interest rates, the City’s investment policy limits investment maturities to a term appropriate to the need for funds so as to permit the City to meet all projected obligations. Any investments that mature more than five years from the date of purchase cannot occur without prior approval of the City Council.
As of June 30, 2022, the City had the following investments, all of which had a maturity of 5 years or less:
Maturities Weighted
Average
Interest Fair Maturity
Investment Type Rates 0-1 year 1-5 years Value (Years)
Federal Agencies 0.125-3.125% $ 4,051,011 $ 5,336,000 $ 9,387,011 1.29 U.S. Treasury 0.125-3.000% 2,890,760 9,999,783 12,890,543 1.92 Collateralized Mortgage Obligations 3.308-3.389% - 597,158 597,158 2.49 Corporate Medium-Term Notes 0.350-3.766% 751,753 6,577,130 7,328,883 2.20 Asset-Backed Securities 0.260-3.390% - 2,195,310 2,195,310 3.47 Supranationals 0.500% - 354,379 354,379 0.36
Shasta County Investment Pool Variable 273,808 - 273,808 - LAIF Variable 17,447,242 - 17,447,242 -
Total Investments $25,414,574 $25,059,760 $50,474,334 1.23 Credit Risk - Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy sets specific parameters by type of investment to be met at the time of purchase. Presented below is the minimum rating required (where applicable) by the California Government Code or the City’s investment policy, and the actual rating as of year-end for each investment type.
204
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-33-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Minimum Standard &
Legal Poor’s Moody’s % of
Investment Type Rating Rating Rating Portfolio
Federal National Mortgage Association - - - 3.74%
Federal Farm Credit Bank - - - 6.42%
Federal Home Loan Bank - - - 5.23%
Federal Home Loan Mortgage Corporation - - - 3.21%
U.S. Treasury - - - 25.54%
Collateralized Mortgage Obligations - - - 1.18%
Corporate Medium-Term Notes A A A1 2.49%
Corporate Medium-Term Notes A A+ A1 1.99%
Corporate Medium-Term Notes A AA A1 0.36%
Corporate Medium-Term Notes A A A2 4.30%
Corporate Medium-Term Notes A A- A2 1.81%
Corporate Medium-Term Notes A A+ A2 1.43%
Corporate Medium-Term Notes A A+ A3 0.19%
Corporate Medium-Term Notes A AA Aa2 0.50%
Corporate Medium-Term Notes A A Aa3 0.49%
Corporate Medium-Term Notes A AA+ Aaa 0.96%
Asset-Backed Securities A AAA Aaa 0.96%
Asset-Backed Securities A NR Aaa 1.81%
Asset-Backed Securities A AAA NR 1.58%
Supranationals A AAA Aaa 0.70%
Shasta County Investment Pool N/A NR NR 0.54%
LAIF N/A NR NR 34.57%
Total 100.00%
Custodial Credit Risk - Custodial credit risk for investments is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. To mitigate the custodial credit risk the City’s investment policy requires that all of its managed investments be held in the name of the City in safekeeping by a third party bank trust department.
Concentration of Credit Risk - Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. The City’s investment policy contains limitations on the amount that can be invested in any one issuer. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) at June 30, 2022, that represent 5 percent or more of total City investments are as follows:
Percentage of
Investment Type Amount Invested Investments
Federal Farm Credit Bank $ 3,239,668 6.42%
Federal Home Loan Bank 2,637,443 5.23%
205
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-34-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
D. Investment in External Investment Pools
The Shasta County Pooled Investment Fund is a pooled investment fund program governed by the County which monitors and reviews the management of public funds maintained in the investment pool in accordance with the County investment policy and the California Government Code. The Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the Board of Supervisors every month. The report covers the type of investments in the pool, maturity dates, par value, actual cost and fair value. Investments in the Shasta County Pooled Investment Fund are regarded as highly liquid as deposits and withdrawals can be made at any time without penalty. The Pool does not impose a maximum investment limit. Required disclosure information regarding categorization of investments and other deposit and investment risk disclosures can be found in the County’s financial statements. The County of Shasta’s financial statements may be obtained by contacting the County of Shasta Auditor-Controller’s office at 1450 Court Street, Suite 238, Redding, CA 96001.
The City of Shasta Lake maintains an investment in the State of California Local Agency Investment Fund (LAIF), managed by the State Treasurer. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State Code. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2022, the City’s investment in LAIF valued at amortized cost was $17,447,242 and is the same as the value of the pool shares. There are no restrictions on withdrawal of funds. The total amount invested by all public agencies in LAIF on that day was $231.6 billion. Of that amount, 98.12 percent is invested in non-derivative financial products and 1.88 percent in structured notes and asset-backed securities.
206
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-35-
NOTE 4: CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2022, was as follows:
Balance Transfers/ Balance
July 1, 2021 Additions Retirements Adjustments June 30, 2022 Governmental Activities
Capital Assets, Not Being Depreciated
Land, easements, and right of way $ 3,826,936 $ - ($ 18,600) $ - $ 3,808,336 Construction in progress 2,892,186 2,583,535 - ( 3,302,780) 2,172,941 Total Capital Assets, Not Being
Depreciated
6,719,122 2,583,535
( 18,600) ( 3,302,780) 5,981,277
Capital Assets, Being Depreciated
Infrastructure and land improvements 54,169,861 - - 3,302,780 57,472,641 Buildings and improvements 16,816,446 - ( 662,584) - 16,153,862 Machinery and equipment 747,266 23,301 ( 12,504) - 758,063 Vehicles 34,571 - - - 34,571
Total Capital Assets, Being Depreciated 71,768,144 23,301 ( 675,088) 3,302,780 74,419,137 Less Accumulated Depreciation For:
Infrastructure and land improvements ( 19,569,314) ( 923,657) - - ( 20,492,971) Building and improvements ( 3,163,624) ( 434,191) 392,011 - ( 3,205,804) Machinery and equipment ( 592,314) ( 43,133) 12,504 - ( 622,943) Vehicles ( 34,571) - - - ( 34,571)
Total Accumulated Depreciation ( 23,359,823) ( 1,400,981) 404,515 - ( 24,356,289) Total Capital Assets, Being Depreciated,
Net 48,408,321 ( 1,377,680) ( 270,573) 3,302,780 50,062,848 Governmental Activities Capital Assets,
Net $ 55,127,443 $ 1,205,855 ($ 289,173) $ - $ 56,044,125 207
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-36-
NOTE 4: CAPITAL ASSETS (CONTINUED)
Balance Transfers/ Balance
July 1, 2021 Additions Retirements Adjustments June 30, 2022 Business-Type Activities
Capital Assets, Not Being Depreciated
Land $ 1,837,377 $ - $ - $ - $ 1,837,377
Construction in progress 2,342,469 3,516,200 - ( 1,136,931) 4,721,738 Total Capital Assets, Not Being
Depreciated
4,179,846 3,516,200
- ( 1,136,931) 6,559,115
Capital Assets, Being Depreciated
General and utility plant 93,755,983 - - 1,056,886 94,812,869 Buildings and improvements 1,462,789 - - 55,335 1,518,124 Equipment and vehicles 4,467,339 165,448 ( 383,207) 24,710 4,274,290 Total Capital Assets, Being Depreciated 99,686,111 165,448 ( 383,207) 1,136,931 100,605,283 Less Accumulated Depreciation For:
General and utility plant ( 48,428,045) ( 2,516,017) - - ( 50,944,062) Building and improvements ( 771,745) ( 44,135) - - ( 815,880) Equipment and vehicles ( 3,692,220) ( 241,378) 373,682 - ( 3,559,916) Total Accumulated Depreciation ( 52,892,010) ( 2,801,530) 373,682 - ( 55,319,858) Total Capital Assets, Being Depreciated,
Net 46,794,101 ( 2,636,082) ( 9,525) 1,136,931 45,285,425 Governmental Activities Capital Assets,
Net $ 50,973,947 $ 880,118 ($ 9,525) $ - $ 51,844,540
Depreciation
Depreciation expense was charged to governmental activities as follows:
General government $ 177,828
Public safety 7,917
Public ways and facilities 1,133,033
Planning 3,214
Culture and recreation 78,989
Total Depreciation and Expense – Governmental Activities $ 1,400,981 Depreciation expense was charged to business-type activities as follows:
Water $ 630,783
Electric 642,442
Wastewater 1,293,145
Internal Service Funds 235,160
Total Depreciation Expense – Business-Type Activities $ 2,801,530 Construction in Progress
Construction in progress for governmental activities relates primarily to work performed on road and bridge projects. Construction in progress for business-type activities relates primarily to work performed on water projects, electric projects, and the wastewater treatment plant. 208
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-37-
NOTE 5: INTERFUND TRANSACTIONS
Due From/To Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds.
The following are due from and due to balances as of June 30, 2022:
Due From Due To
Other Funds Other Funds
General fund $ 497,771 $ -
CDBG Project - 400,240
Nonmajor governmental funds - 740
Nonmajor enterprise funds - 96,791
Total $ 497,771 $ 497,771
Advances To/From Other Funds
Advances to/from other funds are non-current interfund loans and are offset by a nonspendable fund balance account in applicable governmental funds to indicate they are not in spendable form.
The following are advances to/from other funds as of June 30, 2022:
Advances To Advances From
Other Funds Other Funds
General fund $ - $ 154,632
Water - 25,478
Electric 295,661 -
Wastewater - 25,655
Internal service funds - 89,896
Total $ 295,661 $ 295,661
Transfers
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations and re-allocations of special revenues.
The following are the interfund transfers for fiscal year ended June 30, 2022:
Transfers Transfers
In Out
Nonmajor governmental funds $ - $ 53,916
Water 650 -
Wastewater 53,266 -
Total $ 53,916 $ 53,916
209
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-38-
NOTE 6: UNEARNED/UNAVAILABLE REVENUES
At June 30, 2022, components of unearned and unavailable revenues were as follows:
Unearned Unavailable Totals
General Fund
Utility overpayments and deposit refunds $ 32,537 $ - $ 32,537 Grants receivable - 138,226 138,226
State Trafficway
Grants Receivable - 41,019 41,019
CDBG Project
Grants Receivable - 322,522 322,522
Nonmajor Governmental Funds
ARPA Funds 1,170,295 - 1,170,295
Grants receivable - 53,730 53,730
Total $ 1,202,832 $ 555,497 $ 1,758,329
NOTE 7: LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:
Amounts
Balance Adjustments/ Balance Due Within
Type of Indebtedness July 1, 2021 Additions Retirements June 30, 2022 One Year Governmental Activities
Revenue Bonds $ 2,376,775 $ - ($ 125,000) $ 2,251,775 $ 130,000 Special Assessment Bonds 26,000 - ( 2,000) 24,000 2,000 Certificates of Participation 11,624,000 - ( 404,000) 11,220,000 416,000 Unamortized Discount ( 269,554) - 14,187 ( 255,367) ( 14,187) Certificates of Participation, Net 11,354,446 - ( 389,813) 10,964,633 401,813 Compensated Absences 173,961 261,219 ( 276,219) 158,961 79,480 Total Governmental Activities $ 13,931,182 $ 261,219 ($ 793,032) $ 13,399,369 $ 613,293 Business-Type Activities
Loans $ 17,289,621 $ - ($ 561,008) $ 16,728,613 $ 572,888 Special Assessment Bonds 640,000 - ( 40,000) 600,000 40,000 Compensated Absences 341,204 324,586 ( 304,708) 361,082 180,541 Total Business-Type Activities $ 18,270,825 $ 324,586 ($ 905,716) $ 17,689,695 $ 793,429 Internal service funds predominately serve the enterprise funds. Accordingly, long-term liabilities for these funds are included as part of the above totals for business-type activities.
Compensated absences for the governmental activities are generally liquidated by the fund where the accrued liability occurred, which is primarily the General fund. Principal and interest payments for the governmental activities are generally paid by a debt service fund.
For the business-type activities, all debt is accounted for in the proprietary fund where the liability occurred. 210
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Individual issues of debt payable outstanding at June 30, 2022, are as follows:
Governmental Activities
Revenue Bonds:
1995 Wastewater Revenue Bonds - Series A issued by the Shasta Lake Public Financing Authority to finance construction of the Wastewater Treatment Plant expansion. Principal payments, ranging from $49,000 to $210,000, are due annually on September 2, and mature September 2, 2034. Interest payments at 4.50% are due semi-annually. The bonds are secured by property assessment payments.
1995 Wastewater Revenue Bonds - Series B issued by the Shasta Lake Public Financing Authority to finance construction of the Wastewater Treatment Plant expansion. Principal payments, ranging from $6,000 to $27,000, are due annually on September 2, and mature September 2, 2034. Interest payments at 4.50% are due semi-annually. The bonds are secured by property assessment payments.
Total Revenue Bonds
2,001,000
250,775
2,251,775
Special Assessment Bonds:
Riddle Road Assessment Bonds transferred from Shasta Dam Area Public Utility District - voter approved 1989. $64,932 issue of bonds (Farmers’ Home Administration) for the assessment district share of construction costs for the Riddle Road water system. Principal payments, ranging from $900 to $4,000, plus interest at 5%, are due annually on September 2. Final maturity of the issue is scheduled for 2029. The bonds are secured by property assessment payments.
Total Special Assessment Bonds
24,000
24,000
Certificates of Participation:
2018 Certificates of Participation issued February 15, 2018, in the amount of $2,500,000, payable in annual installments of $31,000 to $114,000, with an interest rate of 3.25% and maturity on January 1, 2058. The certificates were used to finance construction of certain improvements to the City Hall/Community Center Project and are secured by lease payments pursuant to a lease-leaseback arrangement, as well as a lien on the property. 2,370,000
2019 Certificates of Participation issued October 8, 2019, in the amount of $9,500,000, payable in annual installments of $280,000 to $645,000 with an interest rate of 2.05 to 3.70% and maturity on July 15, 2039. The certificates were used to refinance a portion of the City’s unfunded actuarial accrued liability (UAAL) with respect to its payments to CalPERS and are secured by lease payments pursuant to a lease-leaseback arrangement, as well as a lien on the property. 8,850,000 Total Certificates of Participation 11,220,000
Total Governmental Activities $ 13,495,775
211
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities
Loans:
State of California Infrastructure Bank Water Loan used to finance the Reservoir and Water System Improvement Project (Project), issued in the amount of $5,000,000, payable in annual principal payments ranging from $115,944 to $259,579 with interest payable semi-annually at an annual rate of 3.03%. The loan also consists of an annual fee ranging from $779 to $15,000. The loan is amortized over 30 years with the final payment due in 2034. The loan is secured by a lien on and pledge of the net system of revenues.
California State Water Resources Control Board Small Community Wastewater Loan, issued in the amount of $15,000,000, payable in annual installments of $249,617 with an interest rate of 1.70%. Principal payments are due annually on March 30 beginning 2021 with the final payment due March 30, 2050. The loan is being used to finance wastewater treatment plant facility upgrades. The loan is secured by a lien on and pledge of net revenues and a reserve fund.
Total Loans
$ 2,838,811
13,889,802
16,728,613
Special Assessment Bonds:
Shasta Gateway Industrial Park Assessment Bonds transferred from Shasta Dam Area Public Utility District - voter approved 1989. $64,932 issue of bonds (Farmers’ Home Administration) for the assessment district share of construction costs for the Shasta Gateway Industrial Park water system. Principal payments, ranging from $900 to $4,000, plus interest at 5%, are due annually on September 2. Final maturity of the issue is scheduled for 2029. The bonds are secured by property assessment payments.
Total Special Assessment Bonds
Total Business-Type Activities
600,000
600,000
$ 17,328,613
Following is a schedule of debt payment requirements of governmental activities and business-type activities to maturity for long-term debt, excluding compensated absences that have indefinite maturities.
Governmental Activities
Revenue Bonds
Year Ended
June 30 Principal Interest Total
2023 $ 130,000 $ 98,370 $ 228,370
2024 139,000 92,318 231,318
2025 143,000 85,972 228,972
2026 152,000 79,335 231,335
2027 155,000 72,428 227,428
2028-2032 891,000 247,657 1,138,657
2033-2035 641,775 44,168 685,943
Total $ 2,251,775 $ 720,248 $ 2,972,023
212
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-41-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Special Assessment Bonds
Year Ended
June 30 Principal Interest Total
2023 $ 2,000 $ 1,050 $ 3,050
2024 2,000 925 2,925
2025 3,000 775 3,775
2026 3,000 625 3,625
2027 3,000 450 3,450
2028-2030 11,000 325 11,325
Total $ 24,000 $ 4,150 $ 28,150
Certificates of Participation
Year Ended
June 30 Principal Interest Total
2023 $ 416,000 $ 361,360 $ 777,360
2024 427,000 350,948 777,948
2025 438,000 339,768 777,768
2026 449,000 327,849 776,849
2027 460,000 315,218 775,218
2028-2032 2,507,000 1,357,305 3,864,305
2033-2037 2,962,000 897,361 3,859,361
2038-2042 2,170,000 361,598 2,531,598
2043-2047 360,000 203,417 563,417
2048-2052 422,000 140,984 562,984
2053-2057 495,000 67,762 562,762
2058 114,000 3,704 117,704
Total $ 11,220,000 $ 4,727,274 $ 15,947,274
Business-Type Activities
Loans
Year Ended
June 30 Principal Interest Total
2023 $ 572,888 $ 335,714 $ 908,602
2024 585,040 331,354 916,394
2025 597,471 319,394 916,865
2026 610,190 307,159 917,349
2027 623,202 294,641 917,843
2028-2032 3,322,004 1,275,059 4,597,063
2033-2037 3,152,857 915,504 4,068,361
2038-2042 2,607,570 616,805 3,224,375
2043-2047 2,836,878 395,099 3,231,977
2048-2050 1,820,513 153,894 1,974,407
Total $ 16,728,613 $ 4,944,623 $ 21,673,236
213
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-42-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Special Assessment Bonds
Year Ended
June 30 Principal Interest Total
2023 $ 40,000 $ 30,450 $ 70,450
2024 45,000 28,219 73,219
2025 45,000 25,857 70,857
2026 50,000 23,363 73,363
2027 50,000 20,738 70,738
2028-2032 370,000 61,165 431,165
Total $ 600,000 $ 189,792 $ 789,792
NOTE 8: NET POSITION
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted. • Net investment in capital assets - consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets.
• Restricted net position - consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. • Unrestricted net position - all other net position that does not meet the definition of “restricted” or “net investment in capital assets”.
Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $11,655,501 of restricted net position, of which $4,000,022 is restricted by enabling legislation.
Net Position Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted net position are available, it is considered that restricted resources are used first, followed by the unrestricted resources.
214
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
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NOTE 9: FUND BALANCES
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds can be made up of the following:
• Nonspendable fund balance - amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example:
inventories and prepaid amounts.
• Restricted fund balance - amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restrictions may effectively be changed or lifted with the consent of resource providers. • Committed fund balance - amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance commit fund balance. Once adopted, the limitation imposed remains in place until a similar action is taken to remove or revise the limitation. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. • Assigned fund balance - amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established by the City Council or official or body to whom the Council has delegated its authority.
• Unassigned fund balance - the residual classification for the City’s General fund that includes all amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.
215
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-44-
NOTE 9: FUND BALANCES (CONTINUED)
The fund balances for all major and nonmajor governmental funds as of June 30, 2022, were distributed as follows:
Other
General State CDBG Governmental
Fund Trafficway Project Funds Totals
Restricted for:
HOME $ - $ - $ - $ 4,479,513 $ 4,479,513
Wastewater treatment debt - - - 3,060,159 3,060,159
Law enforcement fund (COPS) - - - 10,982 10,982
Water P&FCC charges - - - 440,158 440,158
State trafficway - 1,725,022 - - 1,725,022
Electric P&FCC charges - - - 330,243 330,243
CDBG housing rehabilitation - - - 139,910 139,910
Parks P&FCC charges - - - 306,300 306,300
Former RDA low/moderate - - - 1,102,523 1,102,523
Debt service 688,715 - - 31,815 720,530
Subtotal 688,715 1,725,022 - 9,901,603 12,315,340
Unassigned 5,076,122 - ( 124,266) ( 55,346) 4,896,510
Total $ 5,764,837 $ 1,725,022 ($ 124,266) $ 9,846,257 $ 17,211,850 Fund Balance Flow Assumptions
When a government funds outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance), a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted fund balance are available, it is considered that restricted fund balance is depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
Fund Balance Policy
The City Council adopted the City of Shasta Lake Fund Balance Policy in 2011. The policy establishes procedures for reporting fund balance classifications, establishes prudent reserve requirements, and establishes a hierarchy of fund balance expenditures. The policy also provides for a measure of financial protection for the City against unforeseen circumstances and to comply with GASB Statement No. 54.
NOTE 10: PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost-sharing multiple employer-defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
216
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-45-
NOTE 10: PENSION PLAN (CONTINUED)
A. General Information about the Pension Plan (Continued) Plan Description (Continued)
Effective January 1, 2013, the City added retirement tiers for the Miscellaneous Rate Tiers for new employees as required under the Public Employee Pension Reform Act (PEPRA). Classic employees are generally defined as employees who have been a member of any public retirement system who have had less than a six-month break in service. Applicable new hires to the City defined as classic employees as determined by PERS will be subject to the non-PEPRA plan. New non-classic employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new non-classic employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the City’s retirement costs.
Summary of Rate of Tiers and Eligible Participants
Open for New Enrollment
Miscellaneous PEPRA Miscellaneous members hired on or after January 1, 2013 Closed to New Enrollment
Miscellaneous First Tier Miscellaneous employees hired before January 1, 2013 Miscellaneous Second Tier Miscellaneous employees hired before January 1, 2013 Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. Retirement benefits are paid monthly for life. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The costof-living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law.
Each Rate Tier’s specific provisions and benefits in effect at June 30, 2022, are summarized as follows:
Monthly Benefits
Benefit Retirement as a % of
Formula Age Eligible Compensation
Miscellaneous First Tier 3.0% @ 60 50-60 2.000% - 3.000% Miscellaneous Second Tier 2.0% @ 60 50-60 1.092% - 2.418% Miscellaneous PEPRA 2.0% @ 62 52-62 1.000% - 2.500%
217
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-46-
NOTE 10: PENSION PLAN (CONTINUED)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for all Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer Employee Employer Paid
Contribution Contribution Member
Rates Rates Contribution Rates
Miscellaneous First Tier 15.250% 8.000% 0.000%
Miscellaneous Second Tier 9.130% 7.000% 0.000%
Miscellaneous PEPRA 7.590% 6.750% 0.000%
For the year ended June 30, 2022, the contributions recognized as part of pension expense were as follows:
Contributions-Employee
Contributions-Employer (Paid by Employer)
Miscellaneous $ 563,348 $ -
B. Pension Liabilities (Asset), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension
As of June 30, 2022, the City reported a net pension liability (asset) for its proportionate share of the net pension liability (asset) of the Plan as follows:
Proportionate
Share of Net
Pension Liability
(Asset)
Miscellaneous ($ 5,643,653)
Total Net Pension Liability (Asset) ($ 5,643,653)
The City’s net pension liability (asset) for the Plan is measured as the proportionate share of the net pension liability (asset). The net pension liability (asset) of the Plan is measured as of June 30, 2021, and the total pension liability (asset) for the Plan used to calculate the net pension liability (asset) was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures.
The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of the June 30, 2021 and 2022 measurement dates was as follows:
Proportion Proportion Change-
June 30, 2021 June 30, 2022 Increase (Decrease)
Miscellaneous 0.00547% -0.29722% -0.30269%
218
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-47-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities (Asset), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
For the year ended June 30, 2022, the City recognized pension credit of $9,712,421. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ 571,058 $ - Difference between expected and actual experience ( 632,875) - Difference between projected and actual earnings on
pension plan investments 4,926,611 -
Difference between City contributions and proportionate share of contributions. 3,626,047 ( 964,667)
Amortization due to differences in proportions 1,110,007 ( 3,483,193) Total $ 9,600,848 ($ 4,447,860)
$571,058 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal
Year Ended
June 30
2023 $ 1,008,641
2024 1,081,232
2025 1,130,595
2026 1,361,462
Thereafter -
Total $ 4,581,930
Actuarial Assumptions
The total pension liability (asset) in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Investment Rate of Return 7.15%
Inflation 2.50%
Salary Increases Varies by entry-age and service
Mortality Rate Table Derived using CalPERS’ membership data for all funds Post-Retirement Benefit Increase Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power
applies
219
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-48-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities (Asset), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Actuarial Assumptions (Continued)
The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90 percent of scale MP 2016. For more details on this table, please refer to the December 2017 Experience Study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. 220
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-49-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities (Asset), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Long-Term Expected Rate of Return (Continued)
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These rates of return are net of administrative expenses.
Assumed
Asset Real Return Real Return
Asset Class Allocation Years 1 – 10(a) Years 11+(b)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) An expected inflation of 2.00% used for this period (b) An expected inflation of 2.92% used for this period Sensitivity of Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability as of the measurement date, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability (asset) would be if it were calculated using as discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase
6.15% 7.15% 8.15%
Miscellaneous ($ 389,428) ($ 5,643,653) ($ 9,987,247)
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB)
A. General Information about the OPEB Plan
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Plan Description
The City’s defined benefit OPEB plan (Plan) provides OPEB for all permanent full-time employees of the City. The Plan is an agent multiple-employer defined benefit OPEB plan administered by the California Public Employees’ Retirement System (CalPERS). The City Council has the authority to establish and amend the benefit terms of the Plan.
221
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-50-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB)
A. General Information about the OPEB Plan (Continued)
Plan Description (Continued)
The City provides medical, dental and vision coverage for qualifying retirees. Retirees eligible for medical coverage can also elect dental and vision coverage, but the dental and vision coverage is entirely at the retiree’s own expense. Medical coverage is provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This coverage requires the employee to satisfy the requirements for retirement under CalPERS, which requires attainment of age 50 (age 52, if a miscellaneous employee new to PERS on or after January 1, 2013) with 5 years of State or public agency service or approved disability retirement.
Unless covered by a PEMHCA Vesting resolution, the employee must begin his or her retirement warrant within 120 days of terminating employment with the City to be eligible to continue medical coverage through the City and be entitled to the employer subsidy.
If an eligible employee is not already enrolled in the medical plan, he or she may enroll within 60 days of retirement or during any future open enrollment period. Coverage may be continued at the retiree’s option for his or her lifetime. A surviving spouse and other eligible dependents may also continue coverage.
Retirees eligible for medical coverage can also elect dental and vision coverage at their own expense.
Employees Covered by Benefit Terms
At the OPEB liability measurement date of June 30, 2021, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefit payments 29 Inactive employees entitled to but not yet receiving benefit payments 11 Active employees 52
Total 92
Contributions
The City Council has the authority to establish and amend the contribution requirements of the Plan.
As a condition of participation in the CalPERS medical program, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. A spouse and other eligible dependents may also continue coverage and receive the City contribution. 222
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-51-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
Contributions (Continued)
The City currently maintains two different types of resolutions with CalPERS defining the level of the City’s contribution. The resolutions apply to those eligible for coverages, based on the employee’s hire date and/or irrevocable election:
• Retirees hired before June 1, 2010 are covered by ‘unequal contribution’ resolutions, initially adopted in 1994. For active employees, the City contributes 100 percent of the premium for the employee and his or her dependents, subject to a maximum monthly amount. The following chart shows the maximum monthly amounts (“City Non-Vesting Caps”) for active employee medical costs for 2022:
City Non – Vesting Caps
Group Ee Only Ee + Sp Ee + Fam
Management $ 701.23 $ 1,402.46 $ 1,823.20
Teamsters 701.23 1,402.46 1,823.20
IBEW 701.23 1,402.46 1,823.20
The City’s contribution for retirees covered by these unequal contribution resolutions is determined by multiplying: (a) 5 percent times (b) the number of years the employer has been contracted with PEMHCA times (c) the contribution the employer makes towards active employee health benefits, as described above.
The maximum increase in the dollar amount of the monthly retiree contribution for anyone fiscal year is $100. In no event will the City’s total subsidy for retiree medical expenses exceed the retiree’s actual premium.
Employees hired prior to June 1, 2010 were given the option to have their benefits calculated using the vesting resolution (described below) if they so desired. All current active employees hired prior to June 1, 2010 have chosen that option.
• Retirees hired on or after June 1, 2010 are covered by PEMHCA ‘Vesting’ resolutions. Under these resolutions, the City’s contribution toward retiree medical benefits is determined as the lesser of:
• 100 percent of the medical plan premiums for the retiree and his or her eligible dependents; and • The “100/90” formula maximum benefits (caps) multiplied by the vesting percent. 223
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-52-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
Contributions (Continued)
The cap amounts vary by coverage level and are adjusted annually. For 2022, the caps are $816 (employee), $1,548 (employee plus one) and $1,983 (employee plus family).
The vested percent is based on the retiree’s years of CalPERS membership, as shown in the table below, though a minimum of 5 years of City service is required to be vested.
Employees who retire on approved disability retirement are 100 percent vested regardless of service.
Years of
Qualifying
Service Vested Percent
Years of
Qualifying
Service Vested Percent
Less than 10
10 11
12 13
14 0%
50%
55%
60%
65%
70%
15 16
17 18
19 20 or more
75%
80%
85%
90%
95%
100%
Note: Employees covered by the PEMHCA vesting resolution who complete at least 20 years of service with the City are entitled to these subsidized medical benefits from the City once they commence their CalPERS retirement warrant, even if they terminate employment prior to reaching age 50.
Current premium rates: The 2022 CalPERS monthly medical plan rates in the Region 1 area rate group are shown in the table below, though other regional rates were also applied. The CalPERS administration fee is assumed to be expensed each year and has not been projected as an OPEB liability in this valuation.
Region 1 2020 Health Plan Rates
Activities and Pre-Med Retirees Medicare Eligible Retirees Plan Ee Only Ee & 1 Ee & 2+ Ee Only Ee & 1 Ee & 2+
Kiaser HMO $ 857.06 $ 1,714.12 $ 2,228.36 $ 302.53 $ 605.06 $ 1,119.30 PERS Platinum PPO 1,057.01 2,114.02 2,748.23 381.94 763.88 1,398.09 PERS Gold PPO 701.23 1,402,46 1,823.20 377.41 754.82 1,175.56 B. Net OPEB Liability (Asset)
The City’s net OPEB Liability (asset) of ($1,122,728) was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.
224
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-53-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) B. Net OPEB Liability (Asset) (Continued)
Actuarial Assumptions and Other Inputs
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2021
Funding Method Entry Age Normal Cost, level of percent of pay Asset Valuation Method Market value of assets
Discount Rates 5.65% as of June 30, 2021 and 6.45% as of June 30, 2020 Participants Valued Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation.
Salary Increase 3.00% per year; since benefits do not depend on salary, this is used only to allocate the cost of benefits between service years General Inflation Rate 2.50% per year
Healthcare cost trend rates 5.80% for 2020, decreasing 0.20% or 0.10% per year to an ultimate rate of 3.90% for 2076 and later years
Mortality rates CalPERS 2017 experience study
The demographic actuarial assumptions used in the June 30, 2021 valuation are based on the 2017 experience study of the California Public Employees Retirement System using data from 1997 to 2015, except for basis used to project future mortality improvements.
Discount Rate
The discount rate used to measure the total OPEB liability was 5.65 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
C. Changes in the Net OPEB Liability (Asset)
The table below shows the changes in the total OPEB liability, the Plan fiduciary net position (i.e. fair value of the Plan assets), and the net OPEB liability (asset) during the measurement period ending on June 30, 2021 for the City’s proportionate share.
225
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-54-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) C. Changes in the Net OPEB Liability (Asset) (Continued) Increases (Decreases)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balances at Fiscal Year Ending June 30, 2021 $ 7,836,887 $ 8,076,533 ($ 239,646) Changes for the year:
Service cost 343,830 - 343,830
Interest 517,584 - 517,584
Differences between expected and actual experience ( 180,309) - ( 180,309) Change of assumptions 392,586 - 392,586
Contributions – employer - 372,321 ( 372,321)
Net investment income - 1,587,392 ( 1,587,392)
Benefit payments, ( 312,321) ( 312,321) -
Administrative expense - ( 2,940) 2,940
Net Changes 761,370 1,644,452 ( 883,082)
Balances at Fiscal Year Ending June 30, 2022 $ 8,598,257 $ 9,720,985 ($ 1,122,728) Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
1% Decrease Discount Rate 1% Increase
4.65% 5.65% 6.65%
Net OPEB liability (asset) $ 162,941 ($ 1,122,728) ($ 2,167,630) Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(4.8% decreasing (5.8% decreasing (6.8% decreasing
to 4.0%) to 5.0%) to 6.0%)
Net OPEB liability (asset) ($ 2,290,813) ($ 1,122,728) $ 344,670 OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued CalPERS financial report.
226
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-55-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB income of $197,549. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions made subsequent to the measurement date $ 374,517 $ - Changes of assumptions 516,676 ( 175,325)
Difference between expected and actual experience - ( 1,449,036) Net differences between projected and actual earnings
on OPEB plan investments - ( 814,183)
Total $ 891,193 ($ 2,438,544)
$374,517 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended June 30, 2023.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Fiscal
Year Ended
June 30
2023 ($ 533,656)
2024 ( 449,887)
2025 ( 445,180)
2026 ( 476,751)
2027 ( 56,085)
Thereafter 39,691
Total ($ 1,921,868)
Payable to the OPEB Plan
At June 30, 2022, the City reported a payable of $0 for the outstanding amount of contributions to the Plan required for the year.
NOTE 12: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disaster. The City maintains insurance coverage from a commercial carrier for its medical, short-term and long-term disability, and dental and vision plan.
There is no claims liability to be reported based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
There are no significant reductions in insurance coverage from prior years and there have been no settlements exceeding the insurance coverages for each of the past three fiscal years. 227
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-56-
NOTE 12: RISK MANAGEMENT (CONTINUED)
The City is a member of the Small Cities Organized Risk Effort joint powers authority (SCORE), which provides the City with liability coverage with limits of $40,000,000 for each occurrence, workers’ compensation coverage with limits to $5,000,000 for each occurrence and property coverage for replacement. SCORE provides these limits and coverage by participating in the California Joint Powers Risk Management Authority (CJPRMA) for excess liability and Local City Workers’ Compensation Excess Liability joint powers authority (LAWCX) for excess workers’ compensation. Property coverage is obtained by a group purchase from insurance companies with the City’s deductible being $10,000 each claim for vehicles and property.
NOTE 13: JOINT VENTURES
A. NCPA
Northern California Power Agency
The City is a member of Northern California Power Agency (NCPA), a joint powers agency which operates under a joint powers agreement among sixteen public agencies. NCPA Commission is the agency’s governing board with each member appointing one Commission Representative. The purpose of NCPA is to provide its members cost effective wholesale power, energy-related services, and advocacy on behalf of public power consumers through joint action. NCPA provides services to its members through a set of programs, such as the Legislative & Regulatory Program and Power Management Program. NCPA owns generation projects and its Generation Services division operates and maintains these resources on behalf of participating members. Member are only obligated for agency costs related to programs and services expressly selected by members. Members are empowered to opt in to programs and projects and agree to fund a pro rata share allocation associated with selected programs and projects. As a member of NCPA, the City participates in the Legislative & Regulatory Affairs Program.
NCPA’s Legislative & Regulatory Affairs Program is primarily focused on advocacy efforts at Federal and State levels dealing with matters of legislation and regulation that affect electric ratepayers. NCPA engages in policy discussions in forums that include but are not limited to Congress, California State Legislature, Federal Energy Regulatory Commission, California Energy Commission, and California Air Resources Board. The Legislative & Regulatory Affairs Program allows NCPA members to interact with key policy makers with a single coordinated voice. The L&R team also assists NCPA members in addressing numerous energy and environmental reporting obligations and developing capabilities in marketing customer-oriented energy-saving programs.
B. Balancing Authority of Northern California
The Balancing Authority of Northern California (BANC) is a joint powers agency consisting of the Sacramento Municipal Utility District (SMUD), Modesto Irrigation District (MID), City of Roseville, City of Redding (REU) and the City of Shasta Lake as its founding members. On June 26, 2013, BANC members voted to accept Trinity Public Utilities District (TPUD) as a new member. BANC assumed the balancing authority responsibilities from SMUD on May 1, 2011, and is responsible for the matching of generation to load and coordinating system operations with neighboring Balancing Authorities. The resources within the BANC footprint include but are not limited to the Central Valley project (CVP) generation, owned by the Bureau of Reclamation; the CVP transmission network, owned by the Western Area Power Administration (WAPA); and the 500-kV California Oregon Transmission Project (COTP), which is jointly owned by several parties including WAPA and the Transmission Agency of Northern California (TANC). BANC members contract for about 40 percent of the CVP hydroelectric resource. 228
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-57-
NOTE 13: JOINT VENTURES (CONTINUED)
B. Balancing Authority of Northern California (Continued) BANC offers its members cost savings and greater influence through joint action. BANC is engaged in several external policy forums focused on balancing authority matters and allows its members to speak with a unified voice. BANC’s structure provides flexibility to jointly develop and expand operational capabilities at significant cost savings relative to individual development costs. BANC is governed by its members and clarifies roles and responsibilities of the members regarding reliability standard compliance.
The members’ rights and expense-sharing are based on the participation percentages in most BANC activities. BANC members’ participation percentages are based on each members’ retail sales, which are approximately 68.8 percent, 16.5 percent, 7.8 percent, 5.0 percent, 1.2 percent and 0.7 percent for SMUD, MID, Roseville, REU, Shasta Lake and TPUD respectively. These participation percentages can be updated as the need requires.
Complete separate financial statements for each of the joint ventures in which the City participants may be obtained from the City of Shasta Lake Finance Department, 447 Main Street, Shasta Lake, California 96019.
NOTE 14: OTHER INFORMATION
A. Commitments and Contingencies
At June 30, 2022, the City had construction commitments outstanding of approximately $74,408.
The City is a defendant in various lawsuits. Management and Counsel believe the suits will not have a material adverse effect on the City’s financial condition.
B. Successor Agency Trust for Assets of Former Redevelopment Agency In accordance with Assembly Bill 1X26 and Assembly Bill 1434, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. The activity of the Successor Agency Trust for Assets of Former Redevelopment Agency (Successor Agency) is recorded in a private purpose trust.
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:
Amounts
Balance Additions/ Balance Due Within
Type of Indebtedness July 1, 2021 Adjustments Retirements June 30, 2022 One Year Tax Allocation Bonds $ 2,190,000 $ - ($ 325,000) $ 1,865,000 $ 345,000 Total $ 2,190,000 $ - ($ 325,000) $ 1,865,000 $ 345,000 229
CITY OF SHASTA LAKE
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
-58-
NOTE 14: OTHER INFORMATION (CONTINUED)
B. Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Individual issues of debt payable outstanding at June 30, 2022, are as follows:
Tax Allocation Bonds:
Tax Allocation Revenue Refunding Bonds, Series 2014, issued by the Shasta Lake Public Financing Authority in the amount of $3,900,000 and payable in annual installments of $265,000 to $400,000, with an interest rate of 2.00% to 5.00% and maturity on December 1, 2026. The bonds were used to refund the 2006 Tax Allocation Revenue Bonds.
Total Tax Allocation Bonds
$ 1,865,000
$ 1,865,000
Following is a schedule of debt payment requirements to maturity for long-term debt:
Tax Allocation Bonds
Year Ended
June 30 Principal Interest Total
2023 $ 345,000 $ 64,781 $ 409,781
2024 360,000 47,156 407,156
2025 375,000 33,703 408,703
2026 385,000 19,625 404,625
2027 400,000 5,000 405,000
Total $ 1,865,000 $ 170,265 $ 2,035,265
C. Subsequent Events
Management has evaluated events subsequent to June 30, 2022 through August 13, 2023, the date on which the financial statements were available for issuance and has determined no other subsequent events requiring disclosure have occurred.
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Required Supplementary Information
(Unaudited)
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CITY OF SHASTA LAKE
Required Supplementary Information
City Pension Plan
Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2022
Last 10 Years*
Measurement Date 2013/2014 2014/2015 2015/2016 2016/2017 Miscellaneous Plan
Proportion of the net pension liability 0.17774% 0.17492% 0.18668% 0.19250% Proportionate share of the net pension
liability $ 4,392,836 $ 4,798,851 $ 6,485,096 $ 7,588,576 Covered payroll 3,288,389 3,191,503 3,310,634 3,655,228 Proportionate share of the net pension
liability as a percentage of covered payroll 133.59% 150.36% 195.89% 207.61% Plan fiduciary net position as a percentage
of the total pension liability 83.80% 82.80% 78.07% 76.44% * The City implemented GASB 68 for the fiscal year June 30, 2015, therefore only eight years are shown. -59-
234
2017/2018 2018/2019 2019/2020 2020/2021
0.19678% 0.20417% 0.00547% -0.29722%
$ 7,416,000 $ 8,175,847 $ 230,682 $ (5,643,653)
3,897,624 3,931,301 4,292,114 4,698,897
190.27% 207.97% 5.37% -120.11%
78.08% 77.37% 99.39% 114.18%
-59-
235
CITY OF SHASTA LAKE
Required Supplementary Information
City Pension Plan
Schedule of Contributions
For the Year Ended June 30, 2022
Last 10 Years*
Fiscal Year 2014/2015 2015/2016 2016/2017 2017/2018
Miscellaneous Plan
Contractually required contribution
(actuarially determined) $ 539,884 $ 373,644 $ 405,356 $ 414,691 Contributions in relation to the actuarially
determined contributions (2,502,238) (604,944) (670,799) (723,724) Contribution deficiency (excess) $ (1,962,354) $ (231,300) $ (265,443) $ (309,033) Covered payroll $ 3,191,503 $ 3,310,634 $ 3,655,228 $ 3,897,624 Contributions as a percentage of covered
payroll 78.40% 18.27% 18.35% 18.57%
* The City implemented GASB 68 for the fiscal year June 30, 2015, therefore only eight years are shown. -60-
236
2018/2019 2019/2020 2020/2021 2021/2022
$ 425,624 $ 472,300 $ 563,348 $ 571,058
(817,880) (9,341,569) (563,348) (571,058)
$ (392,256) $ (8,869,269) $ - $ -
$ 3,931,301 $ 4,292,114 $ 4,698,897 $ 4,874,966
20.80% 217.64% 11.99% 11.71%
-60-
237
CITY OF SHASTA LAKE
Required Supplementary Information
City Pension Plan
Notes to City Pension Plan
For the Year Ended June 30, 2022
-61-
NOTE 1: SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Change of Assumptions and Methods
Benefit Changes: None
Changes of Assumptions: None
NOTE 2: SCHEDULE OF CONTRIBUTIONS
Methods and assumptions used to determine the contribution rates were as follows:
Valuation Date June 30, 2019
Actuarial cost method Individual Entry Age Normal
Amortization method Level Percentage of Payroll and Direct Rate Smoothing Remaining Amortization Period Differs by employer rate plan but no more than 30 years Asset valuation method Fair value
Discount Rate 7.00%
Payroll Growth 2.75%
Inflation 2.50%
Salary increases Varies based on entry age and service
Investment rate of return 7.00%
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239
CITY OF SHASTA LAKE
Required Supplementary Information
City OPEB Plan
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
Last 10 Year Fiscal Years*
Measurement Date 2016/2017 2017/2018 2018/2019 2019/2020 Total OPEB Liability
Service cost $ 291,008 $ 326,791 $ 361,837 $ 333,816
Interest 566,870 551,780 582,324 484,815
Differences between expected and actual experience (1,046,313) - (1,835,068) - Changes of assumptions 244,005 351,325 (297,932) -
Benefit payments (303,321) (327,846) (402,009) (328,882) Net Change in Total OPEB Liability (247,751) 902,050 (1,590,848) 489,749 Total OPEB Liability - Beginning 8,283,687 8,035,936 8,937,986 7,347,138 Total OPEB Liability - Ending (a) $ 8,035,936 $ 8,937,986 $ 7,347,138 $ 7,836,887 Plan Fiduciary Net Position
Contributions - employer $ 473,437 $ 472,498 $ 445,979 $ 328,882 Net investment income 435,349 406,313 503,091 414,776
Benefit payments (303,321) (327,846) (402,009) (328,882) Administrative expenses (3,167) (3,480) (1,535) (3,782) Other expenses - (8,704) - -
Net Change in Plan Fiduciary Net Position 602,298 538,781 545,526 410,994 Plan Fiduciary Net Position - Beginning 5,978,934 6,581,232 7,120,013 7,665,539 Plan Fiduciary Net Position - Ending (b) $ 6,581,232 $ 7,120,013 $ 7,665,539 $ 8,076,533 Net OPEB Liability (Asset) - Ending (a) - (b) $ 1,454,704 $ 1,817,973 $ (318,401) $ (239,646) Plan fiduciary net position as a percentage of the total OPEB liability 81.90% 79.66% 104.33% 103.06%
Covered employee payroll $ 3,655,228 $ 3,897,624 $ 3,928,111 $ 4,292,114 Net OPEB liability as a percentage of covered employee payroll 39.80% 46.64% -8.11% -5.58% * The City implemented GASB 75 for the fiscal year June 30, 2018, therefore only five years are shown. -62-
240
2020/2021
$ 343,830
517,584
(180,309)
392,586
(312,321)
761,370
7,836,887
$ 8,598,257
$ 372,321
1,587,392
(312,321)
(2,940)
-
1,644,452
8,076,533
$ 9,720,985
$ (1,122,728)
113.06%
$ 4,420,877
-25.40%
-62-
241
CITY OF SHASTA LAKE
Required Supplementary Information
City OPEB Plan
Schedule of Contributions
For the Year Ended June 30, 2022
Last 10 Fiscal Years*
Fiscal Year 2017/2018 2018/2019 2019/2020 2020/2021
Actuarially determined contribution $ 505,772 $ 487,373 $ 346,279 $ 358,770 Contributions in relation to the actuarially determined contribution (472,498) (445,979) (328,882) (372,321) Contribution deficiency (excess) $ 33,274 $ 41,394 $ 17,397 $ (13,551) Covered employee payroll $ 3,897,624 $ 3,928,111 $ 4,292,114 $ 4,420,877 Contributions as a percentage of covered employee payroll 12.12% 11.35% 7.66% 8.42% * The City implemented GASB 75 for the fiscal year June 30, 2018, therefore only five years are shown. -63-
242
2021/2022
$ 367,955
(374,517)
$ (6,562)
$ 4,877,603
7.68%
-63-
243
CITY OF SHASTA LAKE
Required Supplementary Information
City OPEB Plan
Notes to City OPEB Plan
For the Year Ended June 30, 2022
-64-
NOTE 1: SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
There were no changes reflected during the current measurement period.
NOTE 2: SCHEDULE OF CONTRIBUTIONS
The actuarially determined contribution (ADC) developed for the City’s fiscal year ending June 30, 2022 was determined and presented in the June 30, 2021 Actuarial Valuation report.
Methods and Assumptions Used to Determine Contributions:
Actuarial cost method Entry Age Normal
Amortization method Level dollar
Amortization period 30 years
Asset valuation method Market value
Inflation 2.50%
Healthcare cost trend rates 6.5% in 2021, stepping down gradually to 4.0% in 2076 Salary increases 3.00%
Investment rate of return 6.35%
Retirement age From 50 to 75
Mortality CalPERS 2017 Experience Study
Mortality improvement MW Scale 2020 generationally
244
CITY OF SHASTA LAKE
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2022
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Taxes and assessments $ 3,426,169 $ 3,426,169 $ 3,116,797 $ (309,372) Licenses and permits 275,900 275,900 218,392 (57,508)
Fines and forfeitures 19,250 19,250 7,493 (11,757)
Use of money and property 65,000 65,000 (26,585) (91,585) Intergovernmental 1,057,500 1,057,500 1,240,418 182,918 Charges for services 4,047,366 4,047,366 4,835,419 788,053 Other revenues 10,000 10,000 25,012 15,012
Total Revenues 8,901,185 8,901,185 9,416,946 515,761
EXPENDITURES
Current:
General government 3,193,239 3,209,239 2,981,138 228,101 Public safety 3,895,789 4,234,021 4,157,780 76,241
Public ways and facilities 310,625 310,625 141,331 169,294 Planning 892,699 892,699 643,062 249,637
Culture and recreation 406,525 406,525 309,725 96,800
Debt service:
Principal 34,000 404,000 404,000 -
Interest 78,130 135,960 375,516 (239,556)
Capital outlay 730,000 2,628,800 1,198,562 1,430,238
Total Expenditures 9,541,007 12,221,869 10,211,114 2,010,755 Excess of Revenues Over (Under) Expenditures (639,822) (3,320,684) (794,168) 2,526,516
OTHER FINANCING SOURCES (USES)
Proceeds from the sale of capital assets - - 198,929 198,929 Transfers in - 427,830 - (427,830)
Total Other Financing Sources (Uses) - 427,830 198,929 (228,901) Net Change in Fund Balances (639,822) (2,892,854) (595,239) 2,297,615 Fund Balances - Beginning 5,841,978 5,841,978 5,841,978 - Prior period adjustment 518,098 518,098 518,098 -
Fund Balances - Beginning, Restated 6,360,076 6,360,076 6,360,076 - Fund Balances - Ending $ 5,720,254 $ 3,467,222 $ 5,764,837 $ 2,297,615 -65-
245
CITY OF SHASTA LAKE
Required Supplementary Information
Budgetary Comparison Schedule
State Trafficway
For the Year Ended June 30, 2022
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Taxes and assessments $ 690,000 $ 690,000 $ 482,981 $ (207,019) Use of money and property - - (29,537) (29,537)
Intergovernmental 434,350 434,350 1,098,581 664,231
Charges for services 50,000 50,000 16,801 (33,199)
Total Revenues 1,174,350 1,174,350 1,568,826 394,476
EXPENDITURES
Current:
Public ways and facilities 290,000 290,000 1,163,999 (873,999) Capital outlay 1,425,386 2,079,267 703,779 1,375,488
Total Expenditures 1,715,386 2,369,267 1,867,778 501,489 Net Change in Fund Balances (541,036) (1,194,917) (298,952) 895,965 Fund Balances - Beginning 2,023,974 2,023,974 2,023,974 - Fund Balances - Ending $ 1,482,938 $ 829,057 $ 1,725,022 $ 895,965 -66-
246
CITY OF SHASTA LAKE
Required Supplementary Information
Budgetary Comparison Schedule
CDBG Project
For the Year Ended June 30, 2022
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Use of money and property $ - $ - $ (4,075) $ (4,075)
Intergovernmental 150,000 2,006,614 3,388,542 1,381,928 Total Revenues 150,000 2,006,614 3,384,467 1,377,853
EXPENDITURES
Current:
Community development 150,000 2,006,614 344,175 1,662,439 Capital outlay - - 650,765 (650,765)
Total Expenditures 150,000 2,006,614 994,940 1,011,674
Net Change in Fund Balances - - 2,389,527 2,389,527
Fund Balances - Beginning (2,513,793) (2,513,793) (2,513,793) - Fund Balances - Ending $ (2,513,793) $ (2,513,793) $ (124,266) $ 2,389,527 -67-
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CITY OF SHASTA LAKE
Required Supplementary Information
Note to Budgetary Comparison Schedule
For the Year Ended June 30, 2022
-68-
NOTE 1: BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the General fund, Special Revenue funds, and Debt Service funds and is controlled at the department level for the City.
Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant adjustments.
The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:
(1) The two-year operating budget of the City is adopted by the City of Shasta Lake City Council prior to July 1 on even numbered years, primarily on the cash basis. (2) The City manager is authorized to transfer budget amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund requires City Council resolution
The City does not use encumbrance accounting under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.
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Combining and Individual Fund Financial Statements
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Nonmajor Governmental Funds
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CITY OF SHASTA LAKE
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Debt
Revenue Service
Funds Funds Totals
ASSETS
Cash and investments $ 3,569,501 $ 522,911 $ 4,092,412
Receivables:
Interest 9,007 1,770 10,777
Taxes - 19,485 19,485
Intergovernmental 79,730 - 79,730
Assessments - 2,274,000 2,274,000
Restricted cash and investments - 273,808 273,808
Loans receivable 3,808,476 - 3,808,476
Land held for resale 534,984 - 534,984
Total Assets $ 8,001,698 $ 3,091,974 $11,093,672
LIABILITIES
Accounts payable $ 5,983 $ - $ 5,983
Due to other governments 16,667 - 16,667
Due to other funds 740 - 740
Unearned revenue 1,170,295 - 1,170,295
Total Liabilities 1,193,685 - 1,193,685
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 53,730 - 53,730
Total Deferred Inflows of Resources 53,730 - 53,730
FUND BALANCES
Restricted 6,809,629 3,091,974 9,901,603
Unassigned (55,346) - (55,346)
Total Fund Balances 6,754,283 3,091,974 9,846,257
Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 8,001,698 $ 3,091,974 $11,093,672 -69-
253
CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Debt
Revenue Service
Funds Funds Totals
REVENUES
Taxes and assessments $ - $ 50,893 $ 50,893
Use of money and property (36,804) (3,501) (40,305)
Intergovernmental 201,210 - 201,210
Charges for services 140,266 - 140,266
Total Revenues 304,672 47,392 352,064
EXPENDITURES
Current:
General government 129,130 - 129,130
Public safety 100,000 - 100,000
Community development 12,646 10,430 23,076
Debt service:
Principal - 127,000 127,000
Interest - 105,392 105,392
Capital outlay 53,730 - 53,730
Total Expenditures 295,506 242,822 538,328
Excess of Revenues Over (Under) Expenditures 9,166 (195,430) (186,264)
OTHER FINANCING SOURCES (USES)
Transfers out (53,266) (650) (53,916)
Total Other Financing Sources (Uses) (53,266) (650) (53,916) Net Change in Fund Balances (44,100) (196,080) (240,180) Fund Balances - Beginning 6,798,383 3,288,054 10,086,437 Fund Balances - Ending $ 6,754,283 $ 3,091,974 $ 9,846,257 -70-
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Nonmajor Governmental Funds
• Special Revenue Funds
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CITY OF SHASTA LAKE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
Law Water Electric CDBG
Enforcement P&FCC P&FCC Housing
(COPS) Charges Charges HOME Rehabilitation
ASSETS
Cash and investments $ 27,514 $ 438,561 $ 328,992 $ 1,251,268 $ 61,093 Receivables:
Interest 135 1,597 1,251 4,292 212
Intergovernmental - - - - -
Loans receivable - - - 3,224,053 78,605
Land held for resale - - - - -
Total Assets $ 27,649 $ 440,158 $ 330,243 $ 4,479,613 $ 139,910
LIABILITIES
Accounts payable $ - $ - $ - $ 100 $ -
Due to other governments 16,667 - - - -
Due to other funds - - - - -
Unearned revenue - - - - -
Total Liabilities 16,667 - - 100 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCES (DEFICIT)
Restricted 10,982 440,158 330,243 4,479,513 139,910
Unassigned - - - - -
Total Fund Balances 10,982 440,158 330,243 4,479,513 139,910 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 27,649 $ 440,158 $ 330,243 $ 4,479,613 $ 139,910 -71-
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Wastewater Parks
P&FCC P&FCC Housing Grant
Charges Charges Authority Fund Totals
$ - $ 305,184 $ 61,471 $ 1,095,418 $ 3,569,501
154 1,116 250 - 9,007
- - - 79,730 79,730
- - 505,818 - 3,808,476
- - 534,984 - 534,984
$ 154 $ 306,300 $ 1,102,523 $ 1,175,148 $ 8,001,698
$ - $ - $ - $ 5,883 $ 5,983
- - - - 16,667
740 - - - 740
- - - 1,170,295 1,170,295
740 - - 1,176,178 1,193,685
- - - 53,730 53,730
- - - 53,730 53,730
- 306,300 1,102,523 - 6,809,629
(586) - - (54,760) (55,346)
(586) 306,300 1,102,523 (54,760) 6,754,283
$ 154 $ 306,300 $ 1,102,523 $ 1,175,148 $ 8,001,698
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CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
Law Water Electric CDBG
Enforcement P&FCC P&FCC Housing
(COPS) Charges Charges HOME Rehabilitation
REVENUES
Use of money and property $ (552) $ (6,604) $ (5,151) $ (17,410) $ (573) Intergovernmental 100,000 - - - -
Charges for services - 59,080 2,934 - -
Total Revenues 99,448 52,476 (2,217) (17,410) (573)
EXPENDITURES
Current:
General government - 9,354 1,900 - -
Public safety 100,000 - - - -
Community development - - - 1,200 -
Capital outlay - - - - -
Total Expenditures 100,000 9,354 1,900 1,200 -
Income (Loss) Before Transfers (552) 43,122 (4,117) (18,610) (573) Transfers out - - - - -
Change in Net Position (552) 43,122 (4,117) (18,610) (573) Fund Balances - Beginning 11,534 397,036 334,360 4,498,123 140,483 Fund Balances (Deficit) - Ending $ 10,982 $ 440,158 $ 330,243 $ 4,479,513 $ 139,910 -72-
260
Wastewater Parks
P&FCC P&FCC Housing Grant
Charges Charges Authority Fund Totals
$ (866) $ (4,593) $ (1,055) $ - $ (36,804)
- - - 101,210 201,210
49,650 28,602 - - 140,266
48,784 24,009 (1,055) 101,210 304,672
12,490 3,146 - 102,240 129,130
- - - - 100,000
- - 11,446 - 12,646
- - - 53,730 53,730
12,490 3,146 11,446 155,970 295,506
36,294 20,863 (12,501) (54,760) 9,166
(53,266) - - - (53,266)
(16,972) 20,863 (12,501) (54,760) (44,100)
16,386 285,437 1,115,024 - 6,798,383
$ (586) $ 306,300 $ 1,102,523 $ (54,760) $ 6,754,283
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Nonmajor Governmental Funds
• Debt Service Funds
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CITY OF SHASTA LAKE
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2022
Wastewater Riddle Davis
Treatment Road Grunsky
Debt Water Bond Loan Act Totals
ASSETS
Cash and investments $ 515,763 $ 7,148 $ - $ 522,911
Receivables:
Interest 1,751 19 - 1,770
Taxes 18,837 648 - 19,485
Assessments 2,250,000 24,000 - 2,274,000
Restricted cash and investments 273,808 - - 273,808
Total Assets $ 3,060,159 $ 31,815 $ - $ 3,091,974
LIABILITIES
Accounts payable $ - $ - $ - $ -
Total Liabilities - - - -
FUND BALANCES
Restricted 3,060,159 31,815 - 3,091,974
Total Fund Balances 3,060,159 31,815 - 3,091,974
Total Liabilities and Fund Balances $ 3,060,159 $ 31,815 $ - $ 3,091,974 -73-
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CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended June 30, 2022
Wastewater Riddle Davis
Treatment Road Grunsky
Debt Water Bond Loan Act Totals
REVENUES
Taxes and assessments $ 49,552 $ 1,341 $ - $ 50,893
Use of money and property (3,372) (79) (50) (3,501)
Total Revenues 46,180 1,262 (50) 47,392
EXPENDITURES
Community development
Debt service: 10,430 - - 10,430
Principal 125,000 2,000 - 127,000
Interest 104,142 1,900 (650) 105,392
Total Expenditures 239,572 3,900 (650) 242,822
Excess of Revenues Over (Under) Expenditures (193,392) (2,638) 600 (195,430)
OTHER FINANCING SOURCES (USES)
Transfers out - - (650) (650)
Total Other Financing Sources (Uses) - - (650) (650)
Net Change in Fund Balances (193,392) (2,638) (50) (196,080) Fund Balances - Beginning 3,253,551 34,453 50 3,288,054 Fund Balances - Ending $ 3,060,159 $ 31,815 $ - $ 3,091,974 -74-
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Internal Service Funds
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CITY OF SHASTA LAKE
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Motor Public
Pool Works Totals
ASSETS
Current Assets:
Cash and investments $ 714,955 $ 1,402,800 $ 2,117,755
Receivables:
Accounts - 1,010 1,010
Interest 1,001 6,505 7,506
Total Current Assets 715,956 1,410,315 2,126,271
Noncurrent Assets:
Net pension asset 173,968 988,745 1,162,713
Net OPEB asset 36,264 327,387 363,651
Capital assets:
Depreciable, net 733,650 163,559 897,209
Total Noncurrent Assets 943,882 1,479,691 2,423,573
Total Assets 1,659,838 2,890,006 4,549,844
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 295,949 1,682,030 1,977,979 Deferred OPEB adjustments 28,786 259,872 288,658
Total Deferred Outflows of Resources 324,735 1,941,902 2,266,637
LIABILITIES
Current Liabilities:
Accounts payable 26,592 3,677 30,269
Salaries and benefits payable 8,617 63,004 71,621
Due to other governments 629 6,300 6,929
Compensated absences payable 8,619 45,394 54,013
Total Current Liabilities 44,457 118,375 162,832
Noncurrent Liabilities:
Compensated absences payable 8,619 45,394 54,013
Advances from other funds 7,056 82,840 89,896
Total Noncurrent Liabilities 15,675 128,234 143,909
Total Liabilities 60,132 246,609 306,741
DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 137,107 779,247 916,354
Deferred OPEB adjustments 78,765 711,079 789,844
Total Deferred Inflows of Resources 215,872 1,490,326 1,706,198
NET POSITION
Investment in capital assets 733,650 163,559 897,209
Unrestricted 974,919 2,931,414 3,906,333
Total Net Position $ 1,708,569 $ 3,094,973 $ 4,803,542
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CITY OF SHASTA LAKE
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2022
Motor Public
Pool Works Totals
OPERATING REVENUES
Charges for services $ 862,714 $ 2,391,349 $ 3,254,063
Other revenue 7,722 1,761 9,483
Total Operating Revenues 870,436 2,393,110 3,263,546
OPERATING EXPENSES
Salaries and benefits (117,380) (25,467) (142,847)
Administration 239,841 483,855 723,696
Insurance 5,997 14,875 20,872
Supplies 4,748 18,605 23,353
Repair and maintenance 123,280 18,876 142,156
Professional services 3,753 17,023 20,776
Depreciation 223,206 11,954 235,160
Total Operating Expenses 483,445 539,721 1,023,166
Operating Income (Loss) 386,991 1,853,389 2,240,380
NON-OPERATING REVENUES (EXPENSES)
Interest income (3,812) (26,645) (30,457)
Interest expense (223) (2,619) (2,842)
Gain on sale of assets 82,371 - 82,371
Total Non-Operating Revenues (Expenses) 78,336 (29,264) 49,072 Change in Net Position 465,327 1,824,125 2,289,452
Total Net Position - Beginning 1,243,242 1,270,848 2,514,090 Total Net Position - Ending $ 1,708,569 $ 3,094,973 $ 4,803,542 -76-
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CITY OF SHASTA LAKE
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
Motor Public
Pool Works Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 7,722 $ 1,761 $ 9,483
Receipts from interfund services 862,714 2,391,708 3,254,422 Payments to suppliers (394,246) (553,602) (947,848)
Payments to employees (260,657) (1,858,189) (2,118,846) Net Cash Provided (Used) by Operating Activities 215,533 (18,322) 197,211
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Interfund loans repaid (3,474) (40,788) (44,262)
Net Cash Provided (Used) by Non-Capital Financing Activities (3,474) (40,788) (44,262)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition of capital assets (183,750) - (183,750)
Proceeds from the sale of capital assets 91,898 - 91,898 Interest paid on debt (223) (2,619) (2,842)
Net Cash Provided (Used) by Capital and Related Financing Activities (92,075) (2,619) (94,694)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments (4,813) (31,281) (36,094)
Net Cash Provided by Investing Activities (4,813) (31,281) (36,094) Net Increase (Decrease) in Cash and Cash Equivalents 115,171 (93,010) 22,161 Balances - Beginning 599,784 1,495,810 2,095,594
Balances - Ending $ 714,955 $ 1,402,800 $ 2,117,755
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CITY OF SHASTA LAKE
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
Motor Public
Pool Works Totals
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 386,991 $ 1,853,389 $ 2,240,380 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 223,206 11,954 235,160
Decrease (increase) in:
Accounts receivable - 359 359
Pension adjustment - deferred outflows (198,532) (446,654) (645,186) OPEB adjustment - deferred outflows (7,354) (93,256) (100,610) Increase (decrease) in:
Accounts payable (17,199) (3,740) (20,939)
Salaries and benefits payable 218 2,867 3,085
Due to other governments 572 3,372 3,944
Compensated absences (612) (3,406) (4,018)
Net pension liability (128,498) (985,110) (1,113,608)
Net OPEB liability (56,038) (370,879) (426,917)
Pension adjustment - deferred inflows (6,228) (233,724) (239,952) OPEB adjustment - deferred inflows 19,007 246,506 265,513 Net Cash Provided (Used) by Operating Activities $ 215,533 $ (18,322) $ 197,211 -78-
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