Soledad City Council
June 19, 2024

S:\Community and Economic Development Department\Planning\Forms

CITY OF SOLEDAD

COMMUNITY & ECONOMIC DEVELOPMENT

PLANNING DIVISION
PLN: ______________________________
BLD: ______________________________
APPLICANT/OWNER INFORMATION:

Applicant:

Mailing Address:

Phone No: E-Mail (required):

Primary form of communication will be E-mail unless requested otherwise. Owner 1: Owner 1:

Address: Address:

Phone No.: Phone No.:

E-Mail: E-Mail:

PRIMARY CONTACT FOR PROJECT INFORMATION (SELECT ONLY ONE): Owner 1 Owner 2 Applicant PERMIT INFORMATION:

Architectural Review (Residential) Conditional Use Permit (Commercial) Tentative /Vesting Subdivision Map Temporary Use Permit Architectural Review (Commercial) Landscaping Review Tentative Parcel Map Business License Review Site Plan Review (Residential) Lot Line Adjustment Variance Planning Permit Amendment Site Plan Review (Commercial) Planned Development Zoning Map/General Plan Amendment Other Conditional Use Permit (Residential) Sign Permit/Banner Permit Certificate of Zoning Compliance Project Description (attach sheet if needed):

PROJECT SITE INFORMATION:

Project Location (Address): ________ Zoning District: ____________________________ APN(s): Parcel/Lot Size : _______________
Please use the space below to answer the following questions. If additional space is needed, please attach a letter to the application. List all elements of the proposed project: (e.g. access, size and location, primary and accessory structures, landscaping, streets): __________________________________________________________________________________________________ __________________________________________________________________________________________ Describe Existing Site Conditions/Features (e.g. topography, water bodies, vegetation): _____________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Describe Existing Structures and/or Development: ___________________________________________________________________ __________________________________________________________________________________________________ 248 Main Street
Soledad, CA 93960
Phone (831) 223-5020
Fax (831) 678-3965

PLANNING PERMIT

APPLICATION FORM
PUD 2018-02
273

S:\Community and Economic Development Department\Planning\Forms

APPLICANT DECLARATION
A separate signature from the applicant, whether they are the property owner or not, attesting to the following, is required before the application can be accepted.
a. I hereby certify that the information provided in this application, including the required plans and other attachments, is accurate and correct to the best of my knowledge. Furthermore, should the stated information be found false or insufficient to fulfill the requirements of the Department of Community and Economic Development Planning Division, I agree to revise the information as appropriate.
b. I understand that the environmental review associated with this application is preliminary and that after further evaluation, additional reports, studies, applications, and/or fees may be required. c. I understand and agree that any report, study, map, or other information submitted to the City of Soledad in for furtherance of this application will be treated by the City as public records that may be reviewed by any person and if requested, that the City will provide a copy to any person upon the payment of a Record’s Request. d. I understand that the burden of proof to substantiate the request is the applicant's responsibility. Additionally, I understand that planning staff are not permitted to assist the applicant or opponents of the project in preparing arguments for or against a request.
e. I understand that there is no guarantee, expressed or implied, that any permit will be granted. I understand that each matter must be carefully evaluated and that the resulting recommendation or decision may be contrary to a position taken or implied in any preliminary discussions.
f. I understand that if this application is denied, there is no refund of fees paid. g. I understand and agree to defend, indemnify, and hold harmless, the City, its officers, agents, employees, and volunteers (collectively “City”), from any and all legal actions, claims, or proceedings (including administrative or alternative dispute resolution (collectively “actions”), arising out of any City process or approval prompted by this action, either in whole or in part. Such actions include but are limited to: actions to attack, set aside, void, or otherwise modify, an =actions for personal or property damage; actions based on an allegation of an unlawful pattern and practice; inverse condemnation actions; and civil rights or an action based on the protected status of the petitioner or claimant under state or federal law (e.g. ADA). I understand and agree to reimburse the City for any and all costs incurred in defense of such actions. This includes but is not limited to, the payment of all court costs and attorneys’ fees, all judgments or awards, damages, and settlement costs. The indemnity language in this paragraph is intended to be interpreted to the broadest extent permitted by law. It shall be in addition to any other indemnification language agreed upon by the applicant. h. I understand that the City is protected by numerous statutory immunities from liability for damages that may be caused by its land use regulatory actions, as set forth in Government Code, section 818, et seq. For instance, the City cannot be liable for personal or property injuries or damages allegedly caused by its approval and issuance of any discretionary permit, entitlement, or approval. (Gov. Code Section 818.4), or its failure to inspect or its negligence in inspecting a property to determine whether the property complies with or violates any permit, entitlement, or approval or contains or constitutes a hazard to health or safety(Gov. Code Section 818.6).
i. By my signature below, I declare under penalty of perjury that I am the owner or an authorized agent for this property, under the laws of the State of California, that all statements contained in this application and any accompanying documents are true and correct, with full knowledge that all statements made in this application are subject to investigation and that any false or dishonest answer to any question may be grounds for denial or subsequent revocation of license or permit.

The City of Soledad requires an original signature from the applicant. The applicant’s signature below does not need to be notarized.

REQUIRED SUBMITTALS: Site Plan, Preliminary Floor Plans, Architectural Elevations or other material necessary as requested by the Soledad Planning Department.

Applicant Signature Date
Owner 1 Signature Date
Owner 2 Signature Date
Staff Use Only
Received by: Filing Fee:

Date: Receipt #

CITY OF SOLEDAD

COMMUNITY & ECONOMIC DEVELOPMENT

PLANNING DIVISION
Ariana Mora, Associate Planner
May 14, 2024
$1,239.15
SmartGov PUD24001
274
275

HMBY, LP
449 Alvarado Street,
Monterey, California 93940
Sent via email to: [email protected]
May 14, 2024
City of Soledad
clo Ariana Mora-Jacobo, Associate Planner
248 Main Street
Soledad, CA 93960
RE: PD2018-02 - Amendment to PUD
To Whom It May Concern:
subject line.

Please accept the attached application for an Amendment to the PUD in the The requested amendment is to increase the number of affordable multi-family units in the project from the original 28 to 40 units. To make this change, you have advised us to apply for a density bonus, which we have.

As part of the density bonus application and law, we requested concessions to help deviate from the maximum property development standards. To accommodate the additional units, a height exermption would be required since the maximum height for an R-3 property is 30'. Our project amendment requires a building height of 40".

Additionally, as part of the density bonus application, we are requesting concessions to provide for reduced parking from the development standards.

A. Project Description
Miravale Parcel E - Affordable Housing brings 40 new residential units for singles, couples and families to Soledad, CA. The design promotes human interaction and housing stability providing on-site social services, a community room, fenced play yard and outdoor gathering areas. Other community amenities include high efficiency homes to reduce utility costs, computer and business center for economic empowerment and other life convenience amenities such as an onsite laundry facility and a maintenance free living environment.
276
Agha Development is in the process of developing market-rate single family homes in the Miravale Master Development area in Soledad, CA. To satisfy the City of Soledad's inclusionary requirements Agha Development is responsible for entitling and ensuring the completion of a 26-unit affordable housing development within their site located on Parcel E. The affordable site is located on part of large 43-acre parcel at 33120 Bryant Canyon Road, Soledad, CA 93960 on Parcel E.
affordable housing on the site to serve very low- and low-income families in the Soledad and Monterey County area earning at or below 60% Area Medium Income. The unit mix will consist primarily of studios, one-, two-, and three-bedrooms with half of the homes designed as two- and three-bedroom homes.

Eden Housing will develop rental homes of
B. Amendment Request
The main objective is to increase the availability of affordable housing units. This can be achieved by deviating from the standard property development rules and requesting a density bonus.

C. JustificationofRequest

1. How is the proposed PUD change intended to promote efficient use of the land? Will your change be flexible to the current approved design? One of the most notable features of our redesign is that the building footprints will remain the same with the overall width and depth of the buildings. The facades massing has been minimally adapted to accommodate an additional floor on one building only without overbearing the overall site with additional height on all buildings. The parking layout is similar with more details focused on adding transformer and a trash area that is conducive to insightful and efficient public utility considerations.

Because of the financing of the project, we were required to redesign the interior of the buildings to ensure that we have a minimum of 25% of the homes as twobedrooms and 25% of the homes as three-bedrooms. To accomplish this, we right sized the interiors of the units by creating shared area "back of the house" infrastructure (laundry facilities, mechanical rooms for plumbing, etc.) and created required shared areas that enhance the living environment of the residents.

The result of these changes produced 12 more homes that are going to directly serve the community and assist with meeting housing needs of the community.

Explain how the planned development can provide for a maximum density or how it will increase density.

2. Density bonus law allows an 80% increase to the density of the site. Our request increases the density allowed on the site to the maximum. 277
3 Could you describe the benefit of this change to Soledad? The original Planned Development approvals and resolutions required 29% of the total units (102+ 28 = 130) and (130 * 29% = 37) to be available to very low (50% AMI) and low (80% AMI) households. Our planned change will deliver 32 units at or below 50% AMI and 7 units at or below 60% AMI
on-site manager who will reside at the property.

One unit will be unrestricted and set aside for an

4. How will the design ensure compatibility and harmony with existing and planned uses on adjacent properties?
Careful attention has been paid to the proximity of the townhome development and the adjacent neighborhood uses. We have maintained the original height of the second building closest to the townhomes. To ensure compatibility with the increased height on the first building, we have adjusted the pitch of the roof and changed the direction of the surface finish from vertical siding to horizontal siding. This impact assists in unnecessary visual elongation of the structure.
same realm as the original design except for trying to soften harsh exterior colors with warmer tones.

The color scheme has stayed in the

5. How will parking be affected?
Changes to the original parking layout was conducted to create an outdoor play area for the future residents of the community. This change saw 4 parking spaces reallocated to create a fenced in play area as required for tax credit program. More specifically, the financing project requires a minimum of 600 square feet of accessitble play space for children 2- 12 years old and additionalrecreationalspacefor those 12-17 years old (indoor or outdoor). This revised plan will comply this with this funding requirement and contributes vital funding to the project.

Please let us know if you have additional questions or need further information to complete this request.

Sincerely,
Laith Agha
Agha Development
Cc: Dixie Baus, Eden Housing
278

MIRAVALE PARCEL E

AFFORDABLE HOUSING
E N T I T L E M E N T S r e v i s i o n , 0 3 / 2 8 / 2 4P r epar ed by T EN OV ER ST UDI O Miravale Parcel E - Affordable Housing brings 40 new residenital units for singles, couples and families to Soledad, CA. The design promotes human interaction and mental health through a tax-credit, 100% affordable developement providing on-site social services, a community room, fenced play yard with outdoor gathering areas as well as a live-in site manager. 279
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 T1.0

PROJECT DESCRIPTION
Lot 5 - Affordable Housing proposes a revision to the multi-family component of the previously entitled Miravel Parcel E. The previous program provided for some inclusionary housing between two multi-family buildings on Lot 5. The revised program will provide 100% tax-credit affordable housing in a large-family mix within the same footprint as the two previously entitled buildings. The proposed scheme will increase the unit count from 26 to 40, by adding an additional story to Building A. The project will meet all TCAC requirements for large-family mix including but not limited to a community room, support staff offices, shared laundry facility and a protected kid play area. The project intends to utilize concessions and waivers under State Density Bonus Law in order to increase building height ,number of stories, and reduce parking requirements. The concessions and waivers are as follows: CONCESSIONS: Reduce required parking from 63 to 50 (21% reduction)WAIVERS: 1) Increase overall height in Building A from 25'-5.5 to XX 2) Increase allowed storeies in Building A from 2 to 3. The revised program seeks an Entitlement Revision Approval.

VICINITY MAP

PARKING REQUIRED USE UNIT COUNT (OR SF) PARKING FACTOR SPACES REQUIRED RESIDENTIAL STUDIO 2 1 2
1 BEDROOM 15 1 152 BEDROOM 13 2 263 BEDROOM 10 2 20REQUIRED TOTAL 63PROVIDED TOTAL 50 ADA SPACES USE # OF SPACES ADA FACTOR ADA REQUIRED
RESIDENTIAL 50 1 PER 25 2REQ'D TOTAL 2PROVIDED TOTAL 1 VAN, 1 STD

PARKING CALCULATIONS
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CLIENTEDEN HOUSING22645 GRAND STREET, HAYWARD CA CONTACT: DIXIE [email protected] OVER STUDIO539 MARSH ST., SAN LUIS OBISPO, CA 93401805.541.1010CONTACT: Jessie [email protected] INFO & DATA T1.0SITE PLAN PREVIOUS & PROPOSED A1.0BUILDING A PREVIOUS & PROPOSED A2.0BUILDING B PREVIOUS & PROPOSED A2.1BUILDING A & B PROPOSED UPPER FLOOR PLANS A2.2PROPOSED UNIT LAYOUTS A2.3PROPOSED UNIT LAYOUTS - CONTINUED A2.4BUILDING A PREVIOUS & PROPOSED ELEVATIONS A3.0BUILDING B PREVIOUS AND PROPOSED ELVATIONS A3.1 MATERIAL & COLOR SELECTION A4.0

CONTACTSSHEET INDEX
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280
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A1.0

K E Y P L A N

A R C H I T E C T U R A L S I T E P L A N
SC ALE: 1 ” = 50 ’ -0 ”
N

1. SIMILAR PARKING LAYOUT TO PREVIOUS DESIGN. ADDITIONAL TRASH AREA AND POTENTIAL TRANSFORMER LOCATION ADDED. FUTURE EASEMENT WILL PROVIDE ACCESS AN ACCESS TO LARGER DEVELOPMENT. 2. PARKING COUNT REDUCED FROM 54 TO 50 TO INCORPORATE A FENCED PLAY YARD FOR RESIDENTS, PER TCAC REQUIREMENTS. 3. BUILDING FOOTPRINTS REMAIN THE SAME IN OVERALL WIDTH AND DEPTH WITH MINOR CHANGES TO THE MASSING TO ACCOMODATE THE REVISED UNIT LAYOUT. P R O P O S E D S I T E P L A N N O T E S :

P R E V I O U S P R O P O S E D
281
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A2.0
SC ALE: 1 ” = 20 ’ -0 ”

P R E V I O U S B U I L D I N G A

F I R S T F L O O R P L A N
SC ALE: 1 ” = 20 ’ -0 ”
NN

P R O P O S E D B U I L D I N G A

F I R S T F L O O R P L A N
282
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A2.1
SC ALE: 1 ” = 20 ’ -0 ”

P R E V I O U S B U I L D I N G B

F I R S T F L O O R P L A N
SC ALE: 1 ” = 20 ’ -0 ”
NN

P R O P O S E D B U I L D I N G B

F I R S T F L O O R P L A N
283
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A2.2
SC ALE: 1 ” = 20 ’ -0 ”
N

P R O P O S E D B U I L D I N G B

S E C O N D F L O O R P L A N

P R O P O S E D B U I L D I N G A

N S E C O N D & T H I R D F L O O R P L A N
SC ALE: 1 ” = 20 ’ -0 ”
284
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A2.3
SC ALE: 1 /8 ” = 1 ’-0 ”

U N I T L A Y O U T S
UNI T 1A - ACCESSIBLE - 55 8 SF UNI T 2A - ACCES SIBLE - 71 0 SF UNI T 3 A - ACCESSIBLE - 97 8 SF UNI T 2B- ADAP TABLE - 7 0 6 S F 285
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A2.4
SC ALE: 1 /8 ” = 1 ’-0 ”
U N I T L A Y O U T S - C O N T .

UNI T ST UDI O- ADAP TABLE - 4 0 2 SF UNI T 3B - ADAP TABLE - 973 SF UNI T 3 C- ADAP TABLE - 1116 SF UNI T 1B - ADAP TABLE - 494 SF 286
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A3.0

P R E V I O U S B U I L D I N G A F R O N T E L E V A T I O N SC ALE: 1 /1 6 ” = 1’ -0 ”
P R o p o s e d B U I L D I N G A F R O N T E L E V A T I O N SC ALE: 1 /1 6 ” = 1’ -0 ”
287
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A3.1
P R E V I O U S B U I L D I N G b F R O N T E L E V A T I O N P R o p o s e d B U I L D I N G b F R O N T E L E V A T I O N SC ALE: 1 /1 6 ” = 1’ -0 ”
SC ALE: 1 /1 6 ” = 1’ -0 ”
288
539 Marsh Street
San Luis Obispo, CA
805.541.1010
[email protected]

MIRAVALE PARCEL E - AFFORDABLE HOUSING

S O L E D A D , C A
D A T E : 0 3 / 2 8 / 2 4 A4.0

P R E V I O U S L Y A P P R O V E D C O L O R S A N D M A T E R I A L S

P R O P O S E D C O L O R S A N D M A T E R I A L S

1.STUCCO 1: ROCK BOTTOM SW7062* (FROM COLOR SCHEME A)2.STUCCO 2: BALANCED BEIGE SW7073* (FROM COLOR SCHEME D)M A I N P A I N T C O L O R S : A C C E N T P A I N T C O L O R S :

3.HORIZONTAL SIDING & TRIM: PURE WHITE SW7005* (FROM COLOR SCHEME A)4.VERTICAL BOARD AND BATTEN: HALCYON GREEN SW6213* (FROM COLOR SCHEME B)5.DOOR COLOR: SPICY HUE SW6342* (FROM COLOR SCHEME B)6.ASPHALT SHINGLE ROOFING: BARKWOOD (FROM COLOR SCHEME D)ALL COLOR SELECTIONS TO BE “OR SIMILAR.” FINAL COLORS TO BE APPROVED AFTER ON-SITE MOCKUPS.

All proposed colors are pulled from the previously approved colors andmaterials shown above. 289
SUBJECT: Resolution No. 6112, a Resolution of the City Council of the City of Soledad Approving an Agreement with the California Department of Forestry and Fire Protection for Services from July 1, 2024 to June 30, 2025 at a Not to Exceed Cost of $2,152,140 for the Duration of the Term, and Authorizing the City Manager to Execute Said Agreement on Behalf of the City of Soledad
TO: Honorable Mayor Velazquez and City Council
FROM: Mike Howard, Finance Director
MEETING DATE: June 19, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the City Council Approve Resolution No. 6112, Approving an Agreement with the California Department of Forestry and Fire Protection (“CAL FIRE”) for services from July 1, 2024 to June 30, 2025 at a not to exceed cost of $2,152,140 for the duration of the term, and Authorizing the City Manager to Execute said Agreement on behalf of the City of Soledad.

Executive Summary
The City of Soledad has contracted with CAL FIRE since January 2012. CAL FIRE is a modern, fullservice fire protection and emergency management agency that provides comprehensive fire protection to local governments when requested. The current three-year agreement is set to expire on June 30, 2024. CAL FIRE representatives and City staff have been in discussions concerning a new contract for services beginning in April 2024. While Staff would have preferred to have a new three-year agreement, the increased cost is prohibitive at this time and does not represent a sound fiscal discission until the City is able to secure an additional revenue source to cover the cost of increasing fire staff to the industry standard of 3-0. The one-year agreement provides the City with continuing adequate fire protection services and time to evaluate and try to pass a measure to fund future fire services.

Background
In the fall of 2011, to address the economic downturn and the continuing structural budget deficits that the City of Soledad faced, City Staff conducted an in-depth review of how to improve the City’s financial situation and condition. This review required consideration of staffing levels, particularly in public safety services and programs. As part of the City’s in-depth review of how to improve the City’s financial situation and condition, Staff considered contracting with The California Department of 290
Forestry and Fire Protection for fire protection services. CAL FIRE is a modern, full-service fire protection and emergency management agency that provides comprehensive fire protection to local governments when requested.

The current three-year contract with CAL FIRE is set to expire on June 30, 2024. Over the past few months Staff has met with CAL FIRE representatives to prepare and assemble the attached Contract with the State of California for continuation of emergency fire protection services. The cooperative agreement is attached hereto for City Council consideration and approval.

Review & Analysis
The City began negotiation with CAL FIRE representatives in April 2024. The proposed three-year agreement would have increased staffing to the industry standard of 3-0 staffing by the second year of the agreement. One driver to the need for increased staffing is the anticipated delivery of the new fire apparatus or ladder truck which is expected to be delivered by the end of 2024. The new ladder truck requires three fire fighters on the apparatus for safety reasons. The proposed agreement cost in year two is approximately $3,300,000 and approximately $3,461,000 in year three. These cost increases where too significant for Staff to commit to without an additional revenue source to cover the increased cost of $1,148,000, or 53.3% in year two. The State of California was also unwilling to add language to allow the reopen of a three-year agreement if the City was unable to secure an additional funding source to cover the increased costs. Therefore, Staff is recommending a one-year agreement to provide time to secure an additional funding source, such as the Fire Parcel Tax as presented to the City Council earlier this year and/or receive Safer Grants for some of the proposed additional fire personnel.

The key terms and costs are as follows:

Term
One year (1) July 1, 2024 through June 30, 2025
Scope
Emergency fire protection, emergency response and basic life support; dispatch services; management and administration services
Costs
Fiscal Year 2024-2025 $2,152,140 40.5% increase
The majority of the increase is due to an additional Fire Apparatus Engineer position to meet the CAL FIRE requirements for all contract renewals that are not at the 3-0 staf ing factor.

The City of Soledad has a need to provide an important emergency service delivery system within limited resources. Through the attached cooperative agreement with CAL FIRE, the City recognizes the value of a regional approach and solution. By partnering with CAL FIRE and its family of districts in Monterey and San Benito Counties, the City can provide the level of service desired by the community while containing costs.

Financial Considerations
The proposed Agreement represents a 40.5% increase in costs over the previous fiscal year cost. The primary reason for the increase is a change in personnel staffing with the addition of a Fire Apparatus Engineer.
291
Resolution No. 6112
When compared to the cost of a stand-alone fire department, the contract with CAL FIRE is still the most cost effective alternative for the City. Earlier this year staff reported the cost of a stand-alone fire department would cost well over $3,000,000 and bring a host of additional staff costs in recruiting and pension liability.

In addition, CAL FIRE currently staffs the closest CAL FIRE Station with three personnel twenty-four hours per day, seven days per week. This action provides the City of Soledad with an additional engine for simultaneous calls and as the second engine on scene for a reported structure fire.

Alternatives
Adopt the attached Resolution as recommended; or
Do not adopt the Resolution; or
Provide other direction to staff.

Planning/CEQA
Approval of a new service agreement with the California Department of Forestry and Fire Protection is not considered a project for the purposes of CEQA since it has no potential for resulting in either a direct or indirect impact to the environment. (See CEQA Guidelines Section 15378.) Public Notice Requirements
None required.

Attachment(s):
292
RESOLUTION NO. 6112

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

APPROVING AN AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION SERVICES FROM JULY 1, 2024 THROUGH JUNE 30, 2025 AT A NOT TO EXCEED COST OF $2,152,140 FOR THE DURATION OF

THE TERM, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID

AGREEMENT ON BEHALF OF THE CITY OF SOLEDAD
WHEREAS, the City of Soledad, like many other California cities, is faced with the challenge of providing fire protection services at increasing costs and declining revenues; and WHEREAS, City Staff conducted a review of how to improve the City’s financial situation and condition and considered ways to reduce its fire protection costs; and WHEREAS, on June 16, 2021, the City Council adopted Resolution No. 5419, approving an agreement with the California Department of Forestry and Fire Protection Services extending the provision fire protection services; and
WHEREAS, on June 30, 2024, said agreement is due to expire; and WHEREAS, approval of a new service agreement with the California Department of Forestry and Fire Protection is not considered a project for the purposes of CEQA since it has no potential for resulting in either a direct or indirect impact to the environment. (See CEQA Guidelines Section 15378.).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Soledad that the “Cooperative Fire Programs Fire Protection Reimbursement Agreement” between the City and California Department of Forestry and Fire Protection (CAL FIRE), a copy of which is attached hereto and by this reference incorporated herein, is hereby approved and the City Manager is hereby authorized and directed to execute the same on behalf of the City of Soledad.

BE IT FURTHER RESOLVED, by the City Council of the City of Soledad that The City’s costs for the term of said agreement shall not exceed $2,152,140.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 19th of June, 2024, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers: None
ABSENT, Councilmembers: None
ABSTAIN, Councilmembers: None
293
____________________________
ANNA M. VELAZQUEZ, Mayor
ATTEST:
____________________________
MEGAN HUNTER, City Clerk
294
SUBJECT: Resolution No. 6103, a Resolution of the City Council of the City of Soledad Approving the Master Fee Schedule for Fiscal Year 2024-2025.

TO: Honorable Mayor Velazquez and City Council
FROM: Mike Howard, Finance Director
MEETING DATE: June 19, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 2.

Recommendation
It is recommended that the City Council of the City of Soledad adopt Resolution No.6103, Approving the Master Fee Schedule for Fiscal Year 2024-2025.

Executive Summary
In 2017 the City engaged the services of Wildan Financial Services to conduct a User Fee Study and subsequently adopted the recommended Master Fee Schedule in 2018. Annual adjustments are typically made to the Master Fee Schedule based on the current Consumer Price Index (CPI). The proposed adjustments to the Master Fee schedule reflect a 3.8% CPI increase for Fiscal Year 2024/25. It is critical that the City adjust fees based on the CPI to keep up with current expenses, which have significantly risen due to inflation, and to remain fiscally responsible.

Background
Soledad Municipal Code Section 3.20.020 provides that the City Council shall, by resolution, adopt a schedule of fees and charges applicable to City services and functions.

On August 2, 2017, the City Council adopted Resolution 5328 approving an agreement for Willdan Financial Services to provide a User Fee Study. The study was adopted by Resolution 5314 on June 26, 2018, and was subsequently used in the preparation of a Master Fee Schedule.

Pursuant to Resolution 5314, the Master Fee Schedule is to be included as a part of each annual City Budget, subject to adjustment (including Consumer Price Index adjustment) as necessary. Each year Staff is directed to propose fees, rates and charges for a variety of services provided by the City that are legal, applicable, cost effective, and set at a rate that only allows collection of funds sufficient to approximate the actual cost of said services, rates, charges and related materials.

Review & Analysis
295
Resolution No. 6103
Exhibit A - Master Fee Schedule Proposed FY 2024-25
Staff is recommending that the City update the fees set forth in the Master Fee Schedule to help ensure full cost recovery and to reflect current staffing levels, organizational structure, and state-mandated processing requirements. As referenced above, the Master Fee Schedule is established by the City Council to allow the City to recover costs for processing, permitting and inspection services provided to the community. Generally speaking, public agencies can impose fees for government services when two conditions are met. First, the individual’s decision to use the service is voluntary. Second, the fees charged are related to the level of service rendered and the cost of providing that service.

The attached Master Fee Schedule also provides a mechanism for cost recovery of those activities that may exceed an initial set fee, due to the project being extraordinarily complex, time consuming, or requiring extra meetings due to delay, public process, or unforeseen activities.

If approved, the proposed Master Fee Schedule, attached to Resolution No. 6103 as “Exhibit A,” will be in effect for the upcoming fiscal year 2024-25.

For Fiscal Year 2024-25, existing fees have been adjusted by the appropriate CPI, which is 3.8%.

In addition, the fees for the Soledad Community Center, our Water and Wastewater rates, and Business License rate schedules, which are established by separate actions, are included in the Master Fee Schedule.

Financial Considerations
With the goal of full cost recovery for City services and materials provided to the public, it is anticipated that City revenues will increase. The actual effect will depend on the level of activity and Staff’s tenacity in recovering applicable fees.

Alternatives

1. Adopt the Resolution to approve the Master Fee Schedule

2. Modify the Master Fee Schedule

3. Do not approve the Master Fee Schedule

4. Provide alternative direction to Staff
Planning/CEQA
The City has determined that approving the Master Fee Schedule is exempt from provisions of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to State CEQA Guidelines, Sections 15061, subd. (b)(3) and 15273. The fees collected will be used to cover costs of services and materials and have no possibility of causing significant environmental effects.

Public Notice Requirements
None required.

Attachment(s):
296
RESOLUTION NO. 6103

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD APPROVING THE MASTER FEE SCHEDULE FOR FISCAL YEAR 2024-2025 WHEREAS, Soledad Municipal Code Section 3.20.020 provides that the City Council shall by resolution adopt a schedule of fees, rates and charges applicable to City services and functions; and
WHEREAS, the City’s Master Fee Schedule was last modified and approved by resolution in June 2023, and the City Council wishes to establish updated fees, rates and charges to be assessed for services and functions provided by the City during Fiscal Year 2024-2025; and WHEREAS, the fees, rates and charges proposed for the Fiscal Year 2024-2025 Master Fee Schedule, unless adjusted by separate action, have been adjusted by the CPI (Consumer Price Index), at a rate of 3.8% and Staff can represent that in all cases, this adjustment will not cause the involved fees, rates and charges to exceed the actual value and/or cost of such fees, rates and charges.

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Soledad as follows:

1. All of the recitals set forth above are true and correct to the best of its knowledge, and by this reference are incorporated herein as findings.

2. The Master Fee Schedule, attached hereto as “Exhibit A” and by this reference incorporated herein, is adopted for Fiscal Year 2024-2025.

3. All fees, rates and charges set forth in any previous Fee Schedule or similar document and addressed by the new Master Fee Schedule are hereby rescinded.

PASSED AND ADOPTED by the City Council of the City of Soledad this 19th day of June, 2024.

AYES, and in favor thereof, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

ABSTAIN, COUNCILMEMBERS:
297
________________________________________
ANNA M. VELAZQUEZ, Mayor
ATTEST:
________________________________
MEGAN HUNTER, City Clerk
298
Adopted 6/14/21
Revised 6/15/22 6/21/23 5/22/24
FACILITY RENTALS – SOLEDAD COMMUNITY CENTER
Facility Rental Rates Rental Period
Gymnasium
Capacity: 999
Dining: 450
Large Multi-Purpose Room
Capacity: 150
Dining: 120
Small Multi-Purpose
Room
Capacity: 49
Dining: 25
Multi-purpose Rooms
Weekday Meetings
Friday-Sunday:

Block: 2hr min/6hr max
Meeting: 2hr min/4hr
max
N/A $380 Event Block
$70/hr*
$260 Event Block
$50/hr*
100 - 450 Attendees
Saturday-Sunday:

Full Block Use (10 hr.
max) $1600 N/A N/A
Rehearsal Fee 2 Hours $200 $100 $50
Catering Kitchen $100 per rental for use with Gymnasium or Multi-Purpose Room rentals.

Gymnasium Package: 20% off additional spaces – Large Multipurpose Room and Small Multipurpose Room if rented with the Gymnasium
*Meeting fee at min of 4 hours or per hour addition to event time to block fee over max of 6 hrs. **Block includes setup/event/cleanup
***Guests may stay as late as midnight, at which time events must end, and all guests must exit the premises. 12-1:30 is only for clean-up. The renter must have completed clean-up and exited the premises no later than the time reserved.

Note:

1. City Departments may book space at the Community Center free of charge with advanced notice; Parks & Recreation programming usage takes priority.

2. Attendee capacity numbers reflect all persons in the facility of all ages, including renters, guests, vendors, etc.

3. Facility private event rentals are for Soledad residents only.

EXHIBIT A
299
Adopted 6/14/21
Revised 6/15/22 6/21/23 5/22/24

FEES & DEPOSITS
Reservation Fee
Gymnasium
Multi-Purpose Rooms
$550 non-refundable reservation fee, $500 (credited towards the rental) $25 non-refundable fee per reservation, 50% non-refundable rental fee down payment (credited towards the rental)
Standby1 Staff Outside Business Hours $35/hr
Dance Floor Use, Setup, Cleanup $300
Refundable Deposit
Gymnasium:

Multi-Purpose Rooms
$1000 All Events
$150: Small Multi-Purpose Room Event
$250: Large Multi-Purpose Room Event
$45: Meetings and Presentations
Security Fees2 $40 / hour / security guard
AV Equipment Sound System, TV & Computer $15 per piece
IT Services4 Internet Meeting Services/Equipment $150

RESIDENTS / NON-PROFITS / COMMERCIAL
Non-Profit Discount:

Rental Fee Only
50% discount on Facility Rental rates for non-revenue-based rentals for Local Soledad Nonprofit Organizations, as evidenced by a 501c3 certificate.

Commercial Rentals: 30% surcharge. Rentals charging admission: 30% surcharge + 12% of gross proceeds. Must have a non-profit sponsor that will receive at least 50% of the event profit or council-approved sponsorship or co-sponsorship Note:

1. Per-hour facility use outside of normal staff hours.

2. Minimum 1:50 ratio of security guards to attendees; minimum security guards 2 for all alcohol rentals. Security must be onsite 30 minutes prior to event and remain 30 minutes after the conclusion of the rental activity. Rentals, without alcohol, over 100 attendees, require security at a 1:75 ratio.

3. A non-profit group still needs to pay a full-price deposit and booking fee and provide insurance. This discount is unavailable for private events such as weddings or celebrations.

4. Soledad IT department will setup, host and moderate renter Zoom/Facebook Live/other virtual meeting software event. 300
Adopted 6/14/21
Revised 6/15/22 6/21/23 5/22/24
MEMBERSHIPS – SOLEDAD COMMUNITY CENTER
Fitness Center
Member
(includes drop-in
basketball & volleyball)
Type Daily Drop-in Monthly Annually
Inclusive Fitness Pass1 $10 $55 $550
Adult $5 $25 $250
Adult Couple $45 $450
Family $55 $550
Senior $2 $10 $100
Senior Couple $15 $150
Teen $2 $10 $100
Daily
Basketball/Volleyball
Drop-In
Adult $4
Youth & Teen (10-17) $1
Youth Mini (9 & under $1
Note:

1. Includes full facility use (Fitness Center, Open Gym, Fitness Class(es).

2. In an ongoing commitment to employee wellness, City Employees qualify for a free Fitness Center, Basketball and/or Volleyball membership. One household member may receive a 50% membership discount to support and encourage the employee on their wellness journey.

PROGRAMMING – SOLEDAD COMMUNITY CENTER
Seniors, Adults, Youth, Preschool, Families All Recreational Programs and Activities as per Activity Costs/Market Rate/Need Recreational Program and Activity Areas Defined
Special Events Special Interest Classes Performing Arts Camps Sports Educational
Afterschool Program Health & Wellness Workshops
Leagues Arts & Culture Adaptive
Trips Martial Arts Outdoor Recreation
Note:

1. Employees and their dependents receive a 25% discount for programs and activities. 301
Adopted 6/14/21
Revised 6/15/22 6/21/23 5/22/24

PARK USAGE FEES
Non-Profit For-Profit
Ball Field Reservation – practice – per hour $1 $10
Ball Field Reservation – game – per hour $2 $20
Ball Field Reservation – tournament $25 per field / day $50 per field / day Soccer Field Reservation – practice – per hour $1 $10
Soccer Field Reservation – game – per hour $2 $20
Soccer Field Reservation – tournament $25 per field / day $50 per field / day Concession Stand – Per Day1 $150 30% surcharge + 12% of gross proceeds Resident Field Use (non-organized, general use
under 10 persons)
$2 / hr N/A
Lights (1 token = 30 min = $1/token) 1 $2 / hr $10.10 / hour Open Space Special Event Permits As per actual costs per space requested 30% surcharge Events charging admission or vendor fees: 30% surcharge + 12% of gross proceeds
Deposits (refundable upon return) Bathroom Key $25
Concession Stand Key $25
Scoreboard Controller $100
Resident Non-Resident
Picnic Area & BBQ (4hr. $6.25 per hr. up to 6hrs) $25 $50 Bounce House2 $45 $90
Bounce House Annual Vendor Permit $25 $50
Special Event Permit3 – Large (40 or more persons)
Events requiring coordination between Police, Fire,
Parks & Recreation and Public Works
$150 $250
1Requires qualified field use reservation
2Requires picnic area reservation and insurance
3Special event is determined by size and activity inclusion as defined by the City Special Event Policy. Fee for Special Event Permits may be waived at the discretion of involved departments for Non-Profit Agencies providing goods and services to the community for free or at low cost. 302
Planning
# Description Unit FY 2023/24 FEE INCREASE FY 2024/25 FEE Planning/Land Use Permit Fees * including 10% Admin. Fee General Plan Amendments
1 GA - General Plan or Specific Plan Map Amendments for sites of 1 acre or less $3,605.00 $137.00 $3,742.00 2 GA - General Plan or Specific Plan Map Amendments for sites of > 1 acre $6,195.75 $235.45 $6,431.20 3 GA - General Plan Text Change Amendments - Text Only or Text plus Map $1,689.75 $64.25 $1,754.00 Zoning Amendments
4 ZA - Zoning Code - Minor Text Amendment (one section only) $845.00 $32.00 $877.00 5 ZA - Zoning Code - Major Amendment (two or more sections) $3,604.75 $137.00 $3,741.75 6 Rezoning with Planned UNIT Development - Conditional Use Permit $6,195.75 $235.50 $6,431.25 7 Sphere of Influence Amendment and/or Annexation $3,604.75 $137.00 $3,741.75 8 CEQA filing Notice of Exemption / Determination $169.00 $6.50 $175.50 9 Registration of Abandoned Residentail Property Set by Ordinance $169.00 $6.50 $175.50 10 Initial Study/Negative Declaration or Mitigated Negative Declaration (IS-ND or MND) $1,126.75 $42.75 $1,169.50 11 Initial Study/Environmental Impact Report (IS- EIR) $3,604.75 $137.00 $3,741.75 Conditional Use Permit
12 CLASS I CUP - Minor Residential CUP-No New Square Footage Class I CUP + Admin fee $169.00 $6.50 $175.50 13 CLASS I CUP - Minor Commercial CUP - No New Square Footage Class I CUP + Admin fee $169.00 $6.50 $175.50 14 CLASS I CUP - CUP Alcohol Beverage Control (ABC) Licensing Class I CUP + Admin fee $169.00 $6.50 $175.50 15 CLASS II CUP - Minor CUP: Residential Planned Development- 6 Units or less- or 15,000 s.q. of non-residential floor area
Class II CUP + Admin fee $507.25 $19.25 $526.50
16 Major CUP (Planned Developments or projects of more than 6 new units or more than 15,000 SF of non-residential floor area) $3,604.75 $137.00 $3,741.75 17 CUP Amendment $1,126.50 $42.75 $1,169.25
NEW Minor CUP - Administrative CUP including a 10% Admin Fee $0.00 $175.50 $175.50 19 General TUP (Seasonal Sales, i.e. Xmas Trees, pumpkins) + Admin fee $33.50 $1.25 $34.75 20 Non Profit No Charge No Change No Charge
Variance Applications
21 Variance Application for One Single-family Residence on Existing Lot of Record $845.00 $32.00 $877.00 22 Variance Application for All Uses Other Than SFR on Existing Lot of Record $2,816.25 $107.00 $2,923.25 NEW Minor Variance- Administrative Variance $0.00 $877.00 $877.00

SUBDIVISION MISC FEES
24 Development Agreements $3,604.75 $137.00 $3,741.75
25 TSM / TPM / LLA Map Extension $1,126.50 $42.75 $1,169.25 26 Planned Unit Development (PUD) WITH Tentative Map Fee $1,126.50 $42.75 $1,169.25 MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) including a 10% Admin Fee
Developer Accounts
MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) Notes
MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) Temporary Use of Land Permit
MIN./ACTUAL COST* (including contracted consultant cost reimbursement)

LAND DIVISION PERMITS
303
Planning
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE

MINOR SUBDIVISIONS
27 LLA - Lot Line Adjustments or Lot Mergers $563.25 $21.40 $584.65 28 TPM - Parcel Map - 4 Lots or Fewer (Parcels) $1,126.50 $42.75 $1,169.25

MAJOR SUBDIVISIONS
29 TSM - Tentative SUBDIVISION Map - 5 lots or more (Tracts) $11,265.00 $428.00 $11,693.00 30 TSM- Tentative Map - Revision $3,942.50 $149.75 $4,092.25 31 FM Final Map $1,126.50 $42.75 $1,169.25
SPR ARC - ARCHITECTURAL and SITE DESIGN REVIEW - NEW CONSTRUCTION 32 No New Square Footage $169.00 $6.45 $175.45
33 15,000 square feet or less for commercial/industrial $563.25 $21.40 $584.65 34 15,000 to 75,000 square feet (commercial/industrial/other non- residential sites) and Multi-Family Residential (more than 6 units) $1,126.50 $42.75 $1,169.25 35 Greater than 75,000 square feet (commercial/industrial/other non- residential sites) $2,478.25 $94.20 $2,572.45
SPR - Site Plan Review permits
36 Residential - (new SFR's, additions, secondary or granny units and accessory structures per unit (Per hour) $56.25 $2.25 $58.50 37 Residential - (for Apartments and Townhomes) up to 6 Units per unit (per Hour) $141.00 $5.40 $146.40 38 Residential - (for Apartments and Townhomes) more than 6 Units per unit (per Hour) $169.00 $6.50 $175.50 39 Non-Residential - for Buildings 15,000 sf or less, including new buildings, expansion or existing buildings, accessory structures
per sf of gross lot
area (per hour) $0.00564 $0.00021 $0.00585
40 Non-Residential for Buildings 15,000 - 75,000 sf per sf of gross lot area (per hour) $0.00564 $0.00021 $0.00585
41 Non-Residential for Building(s) greater than 75,000 sf per sf of gross lot area (per hour) $0.00564 $0.00021 $0.00585
NEW Site Plan Review Permit - Minor Modification and Parking Reduction including a 10% Admin Fee $0.00 $175.45 $175.45 NEW Site Plan Review Permit- Alternative Means of Compliance Review including a 10% Admin Fee $0.00 $175.45 $175.45 NEW Site Plan Review Permit- Commercial/Industrial 15,000 square feet or less for commercial/industrial including a 10% Admin Fee $0.00 $1,169.25 $1,169.25 45 Temporary Sign Permit No Charge No Change No Charge
46 Sign Face Change $56.25 $2.25 $58.50
47 Single Sign, Staff Approval $84.50 $3.25 $87.75
48 Single Sign, ARC Approval $169.00 $6.50 $175.50
49 Master Sign Plan (2 -10 tenants) $338.25 $12.75 $351.00 50 Appeals - Related to One Single-family Residence $450.75 $17.25 $468.00 51 Appeals - Other Planning Decisions $450.75 $17.25 $468.00 Sign Permit
MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) Appeals
MIN./ACTUAL COST.

MIN./ACTUAL COST.

MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement)

DEVELOPMENT PERMITS
MIN./ACTUAL COST* (including contracted consultant cost reimbursement) MIN./ACTUAL COST* (including contracted consultant cost reimbursement) 304
Building & Safety
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE General Inspections and Fees
1 Deferred Submittal Penalty/Investigation Outsourced to CSG Actual cost + 10% in-house admin fee No change Actual cost + 10% in-house admin fee 2 Work without a Permit Investigation Outsourced to CSG Actual cost + 10% in-house admin fee No change Actual cost + 10% in-house admin fee 3 Inspections outside of normal business hours, reinspection fees assessed under provisions of Section 305.8, inspections for which no fee is specifically indicated, and additional plan review required by changes, additions or revisions to plans (minimum charge 1/2 hour) are all at the total hourly cost to the City (actual costs), plus 10% administration fee. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employee(s) or contract employees involved.
per hour Outsourced to CSG Actual cost + 10% in-house admin fee No change Actual cost + 10% in-house admin fee 4 Combination Office Automation 1.5% of the permit amount (Min. $2.00) Valuation based No change Valuation based 5 Combination Document Storage 1.125% of the permit amount (Min. $1.00) Valuation based No change Valuation based 6 State Green Building Fee $1.00 per every $25,000.00 of value or fraction thereof Valuation based No change Valuation based Building Plan Check
1 Accessibility - ADA Outsourced to CSG Min. $197+ Consultant direct charge $7.00 Min. $204 + Consultant direct charge 2 Demolition minimum or actual cost $82 min/Actual cost $3.00 $85min/Actual cost 3 Construction and Demolition Diversion Fee Set by Ordinance $219.00 No change $219.00 4 Records Request (i.e. City Report) $56.25 $2.25 $58.50 5 Solar Panels Applications Residential - Permit Tables/Valuation Based Valuation based No change Valuation based 6 Strong Motion Fee (Charged by State through City) Public Resources Code, Section 2705(a)
Fee is based on attached Building Valuation schedule which is determined by $.00010 x valuation with a minimum of $.50 for Group R occupancies excluding hotels and motels, and $.00021 x valuation for all other occupancies.

Valuation based No change Valuation based
7 Certificate of Occupancy $281.50 $10.75 $292.25
8 Training Fee .3% of the permit amount (Min. $2.00) Valuation based No change Valuation based 9 Plan Check (Original)
Table 3A. Plan Checks are contracted out
65% of the Permit Fee No change 65% of the Permit Fee
Permit Fees
1 Building Permit Table 3A Valuation Based No change Valuation Based 2 Additional building permit issuance (minimum charge: 1/2 hr) per hour Table 3A / Outsourced to CSG Actual cost + 10% in-house admin fee No change Actual cost + 10% in-house admin fee 3 Electrical, Mechanical and Plumbing Table 3A Valuation Based No change Valuation Based 4 Grading Table 3A Valuation Based No change Valuation Based 5 Swimming Pool Permit Table 3A (per square foot) Valuation Based No change Valuation Based 305
Building & Safety
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE 6 Permit Reinstatement Fee Actual cost + 10% in-house admin fee No change Actual cost + 10% in-house admin fee Addendum to Building Validation Data of Table A
1 Above Ground Tank or contract price Valuation Based No change Valuation Based 2 Deck square foot or contract price Valuation Based No change Valuation Based 3 Deck and Patio Cover square foot or contract price Valuation Based No change Valuation Based 4 Energy Checks based on valuation plus 10% Valuation Based No change Valuation Based 5 Fireplace (minimum valuation) value or contract price Valuation Based No change Valuation Based 6 In-ground Spa valuation based on $3,065 value or contract price Valuation Based No change Valuation Based 7 Patio Cover square foot or contract price Valuation Based No change Valuation Based 8 Remodeling based on contract price or total cost of labor and materials Valuation Based No change Valuation Based 9 Re-roof minimum plus plan review fee as needed or valuation Valuation Based No change Valuation Based Note 1: For equipment or appliance having more than one motor, transformer, heater, etc., the sum of the combined ratings may be used.

Note 2: These fees include all switches, circuit breakers, contactors, thermostats, relays and other directly related control equipment. 306
Building & Safety
Minimum Value Maximum Value Base Rate Plus $$ For every

0.00 0.00 0.00 0.00 0.00

1.00 500.00 92.14 0.00 0.00
501.00 2,000.00 92.14 4.34 100.00
2,001.00 25,000.00 98.17 19.92 1,000.00
25,001.00 50,000.00 555.33 14.37 1,000.00
50,001.00 100,000.00 912.55 9.96 1,000.00
100,001.00 500,000.00 1,408.69 7.97 1,000.00
500,001.00 1,000,000.00 4,584.00 6.76 1,000.00
1,000,001.00 9,999,999,999.00 7,950.69 5.19 1,000.00
CITY of SOLEDAD
Building Valuation Table
All New Construction - PROPOSED, FY 24/25
307

BUILDING CONSTRUCTION COSTS

IA IB IIA IIB IIIA IIIB IV VA VB
Sprinklers No Sprinklers
A-1 Assembly, theaters, with stage 330.56 318.80 309.39 297.20 277.71 269.67 287.04 258.79 248.89 A-1 Assembly, theaters, without stage 303.49 291.73 282.32 270.13 250.88 242.84 259.97 231.96 222.06 A-2 Assembly, nightclubs 272.51 264.43 256.91 248.19 232.76 226.12 239.28 211.57 204.72 A-2 Assembly, restaurants, bars, banquet halls 271.51 263.43 254.91 247.19 230.76 225.12 238.28 209.57 203.72 A-3 Assembly, churches 308.01 296.25 286.84 274.65 255.52 247.48 264.49 236.60 226.71 A-3 Assembly, general, community halls, libraries, museums 258.66 246.90 236.50 225.30 205.06 198.01 215.15 186.13 177.24 A-4 Assembly, arenas 302.49 290.73 280.32 269.13 248.88 241.84 258.97 229.96 221.06 B Business 289.51 279.23 269.21 257.82 235.42 227.07 247.91 210.39 200.78 E Educational 276.33 266.73 258.30 247.60 231.08 219.28 239.09 202.46 195.97 F-1 Factory and industrial, moderate hazard 160.20 152.78 143.34 138.64 123.55 117.41 132.48 102.44 95.93 F-2 Factory and industrial, low hazard 159.20 151.78 143.34 137.64 123.55 116.41 131.48 102.44 94.93 H-1 High Hazard, explosives 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 0.00 H234 High Hazard 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 85.50 H-5 HPM 289.51 279.23 269.21 257.82 235.42 227.07 247.91 210.39 200.78 I-1 Institutional, supervised environment 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 I-2 Institutional, hospitals 455.16 444.88 434.86 423.47 399.17 0.00 413.57 374.14 0.00 I-2 Institutional, nursing homes 315.97 303.75 293.73 282.34 261.43 0.00 272.44 236.40 0.00 I-3 Institutional, restrained 338.01 327.73 317.71 306.32 285.40 276.05 296.41 260.38 248.77 I-4 Institutional, day care facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 M Mercantile 203.29 195.21 186.69 178.98 163.28 157.64 170.06 142.09 136.24 R-1 Residential, hotels 264.67 255.41 246.77 238.13 218.35 212.40 238.17 196.75 190.67 R-2 Residential, multiple family 221.32 212.06 203.42 194.78 175.96 170.01 194.82 154.36 148.28 R-3 Residential, one- and two-family 209.61 203.74 198.94 195.12 188.41 181.45 191.77 175.86 165.67 R-4 Residential, care/assisted living facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 S-1 Storage, moderate hazard 148.46 141.04 131.60 126.90 112.12 105.97 120.74 91.00 84.50 S-2 Storage, low hazard 147.46 140.04 131.60 125.90 112.12 104.97 119.74 91.00 83.50 U Utility, miscellaneous 114.09 107.37 99.89 95.60 85.13 79.54 90.99 67.39 64.19 * Source: International Code Council
Unfurnished basements (all use group R-3) = $31.50 per sq ft.

For shell only buildings deduct 20 percent
N.P. = not permitted
(1) Temp. trailer, porch/patio, decks, garage, sheds, patio covers, hot water/heater enclosures, private garages International Building Code rate schedules come out every August and February. The above schedule is from February 2024. When the new schedule is released in August 2024, the City of Soledad will follow the new rates.

TABLE A *
Square Foot Construction Costs
(2024 International Building Code)
Type of Construction
308

CITY OF SOLEDAD

DEVELOPMENT IMPACT FEE SUMMARY
(Fees per Unit - Residential/1,000 Square Feet) (1)
Land Use
Classification
General
Government Public Safety(2) Park Water Wastewater Storm Drain Traffic Admin (3%) Total Fees Single Family
Residential (Per
Unit) $ 5,348.00 $ 1,670.00 $ 8,788.00 $ 3,063.00 $ 3,350.00 $ 2,254.00 $ 6,827.00 $ 939.00 $ 32,239.00 Multi-Family
Residential (Per
Unit) $ 4,279.00 $ 1,335.00 $ 7,030.00 $ 2,450.00 $ 2,680.00 $ 1,802.00 $ 4,711.00 $ 729.00 $ 25,016.00 Commercial (Per
1,000 Non-Res. SF) $ 1,316.00 $ 410.00 N/A $ 753.00 $ 824.00 $ 554.00 $ 5,387.00 $ 278.00 $ 9,522.00 Office (Per
1,000 Non-Res. Sf) $ 4,064.00 $ 1,268.00 N/A $ 2,328.00 $ 2,545.00 $ 1,712.00 $ 6,492.00 $ 552.00 $ 18,961.00 Industrial (Per
1,000 Non-Res. SF) $ 2,560.00 $ 799.00 N/A $ 1,467.00 $ 1,603.00 $ 969.00 $ 5,519.00 $ 391.00 $ 13,308.00 NOTES: (1). Some figures may not sum due to rounding
(2). The previous Fire Facilities Fee and Police Facilities Fee have been combined into one Public Safety Fee. 309
Public Works
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE 1 Curb & Gutter MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 2 Driveway Approach MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 3 Grading (CY Cut + fill) MIN.$365 (ACTUAL COST) + $1,092 DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 4 Lane Closure MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 5 Parking Space Closure MIN.$365 (ACTUAL COST) + $1,092 DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 6 Pedestrian Ramp MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 7 Sanitary Sewer MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 8 Storm Drain MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 9 Sidewalk MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 10 Street Cut MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 11 Utilities MIN.$365 (ACTUAL COST) + $1,092
DEPOSIT $14 for MIN. and $41 for DEPOSIT MIN.$379 (ACTUAL COST) + $1,133DEPOSIT 12 Staff Time
Actual Cost Plus 5.20%
Administrative Fee $14 for MIN. and $41 for DEPOSIT Actual Cost Plus 5.20% Administrative Fee Water (Hook Up) Meter Fees
1 5/8 Inch to 3/4 inch Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 2 1 inch Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 3 1.5 inch Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 4 2 inch Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 5 Larger than 2 inch Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee Sewer Hook Up Fees
1 Single Family (per unit) Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 2 Multi-Family (per unit) Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee Minimum
Minimum
Minimum
Minimum
Minimum
Minimum
Minimum
310
Public Works
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE 3 Industrial (per 1,000 sq ft.) Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 4 Retail/Commercial (per 1,000 sq. ft.) Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee 5 Office (per 1,000 sq. ft.) Actual Cost + $383.25 Admin. Fee $14.75 in Admin. Fee Actual Cost + $398 Admin. Fee Other Fees
1 Utility deposit Renter - SFR and Comm $60 - $200 No change $60 - $200 2 Discontinue & Reconnect Utility Service / Delinquent Fee $50.00 No change $50.00 3 Late fee (not paying utility bill by due date) 10% Penalty 10% of late amount No change 10% of late amount 4 After Hours Reconnection $135.50 $5.20 $140.70
5 Utility account Transfer Fee $22.75 $0.85 $23.60
6 Fire Hydrant meter deposit $3,000.00 No change $3,000.00 7 Water Meter re-read (customer requested re-read or meter test) $33.00 $1.25 $34.25 8 Meter Accuracy Test - up to 1" Meter $237.00 $9.00 $246.00 9 Meter Accuracy Test - up to 1.5" - 2" Meter $427.00 $16.25 $443.25 10 Meter Accuracy Test - up to 3" Meter and Larger Actual Cost + 20% No change Actual Cost + 20% 11 Construction fire hydrant meter rental fee Per day $10.00 No change $10.00 12 Miscellaneous public works support Actual Cost + 20% No change Actual Cost + 20% 13 Sewage spill response (if caused by owner or business) Actual Cost + 20% No change Actual Cost + 20% 14 Industrial Sewer Discharge Permit Actual Cost + 20% No change Actual Cost + 20% 15 Industrial Sewer Discharge Analysis Actual Cost + 20% No change Actual Cost + 20% 16 Event direct costs Actual Cost + 20% No change Actual Cost + 20% 17 Haul Permit Actual Cost + 20% No change Actual Cost + 20% 18 Source Control Permit Actual Cost + 20% No change Actual Cost + 20% 19 Septage /liquid waste disposal $.142/gal. $0.03 $.170/gal. 20 Unauthorized water use ($160) and 1st meter tampering violation ($130) $290.00 No change $290.00
21 Unauthorized water use ($160) and 2nd meter tampering violation - same year ($700) $860.00 No change $860.00
22 Unauthorized water use ($160) and 3rd meter tampering violation - same year ($1300) $1,460.00 No change $1,460.00
23 Unauthorized water use (Fire Hydrant, Private Fire Line, Backflow Assembly) 1st violation $1,000.00 No change $1,000.00
24 Unauthorized water use (Fire Hydrant, Private Fire Line, Backflow Assembly) 2nd violation - same year $2,000.00 No change $2,000.00 25 Unauthorized water use (Fire Hydrant, Private Fire Line, Backflow Assembly) 3rd violation - same year $3,000.00 No change $3,000.00 Direct cost of city services required for any special
event will be billed
Minimum
Minimum
Minimum
Penalty
CUT-OFF AND REINSTATE BOTH (2 hr call-out
minimum)
A work order with the cost will be provided
Annual
Penalty
Penalty
Penalty
Penalty
Penalty
Penalty
311
Police
# Description Unit FY 2023/24 FEE INCREASE FY 2024/25 FEE Bicycles
1 Bicycle Licenses - VOLUNTARY $15.00 $0.50 $15.50
Weapons
Concealed Carry Fees
2 Carry Concealed Weapon - New Permit $169.00 $6.50 $175.50 3 Carry Concealed Weapon - Renew Permit $112.50 $4.25 $116.75 4 Psychological Testing - if required Actual Cost No change Actual Cost 5 Additional Psychological Testing - if required Actual Cost No change Actual Cost 6 FFL (Federal Firearm License) Investigation Actual Cost No change Actual Cost Firearm Storage Fees
7 Gun Storage Administration Fee per gun $149 min./ Actual Cost $6.00 $155 min./ Actual Cost 8 Domestic Violence Protective Order Firearm Storage fees (court ordered) per day $141 min./ Actual Cost $5.00 $146 min./ Actual Cost Adminitrative Citizen Requests
9 Accident Report $19.25 $0.75 $20.00
10 Citation Sign Off $39.50 $1.50 $41.00
11 Clearance Letter $19.25 $0.75 $20.00
12 Crime Scene Photo Reproduction (digital only) per unit $12.25 $0.50 $12.75 13 Duplicate Citations $12.25 $0.50 $12.75
14 Immigration Letter (U VISA) $35.75 $1.25 $37.00
15 Special Event Permit $34.00 $1.25 $35.25
16 Fingerprinting Fee (SEE CHART) $38.25 - $127 $1.45 / $5.00 $39.70 - $132 17 Garage Sale Regulation (four a year allowed) $15.00 $0.50 $15.50 18 Repo Clearance Fee $22.50 $0.90 $23.40
19 Vehicle ID Number (VIN) Identification $112.50 $4.25 $116.75 20 Vehicle Impound Release (Admin. Tow Hearing) $197.00 $7.50 $204.50 21 Alcohol Permit Processing $62.00 $2.50 $64.50
22 Hunting Tag Verification $11.25 $0.45 $11.70
23 Taxicab Inspection - Annual per vehicle $56.25 $2.25 $58.50 24 ID Verification $38.25 $1.45 $39.70
False Alarms
25 1st Time Per 12 Mon. Period: 1/1 - 12/31 No Charge No change No Charge 26 2nd Time Per 12 Mon. Period: 1/1 - 12/31 $225.30 $8.50 $233.80 regulated per Penal Code Section 26190
Notes
regulated per Penal Code Section 26190; 80% of fee is reimbursable if license is not issued regulated per Penal Code Section 26190
regulated per Penal Code Section 26190: When compelling evidence is present CFC 6389 and P.C. 33880 P.C. - handling, processing, intake, storage and release of firearm(s). Initial cost is confiscating and processing; thereafter it is actual costs per day.

CFC 6389 and P.C. 33880 P.C. - handling, processing, intake, storage and release of firearm(s). Initial cost is confiscating and processing; thereafter it is actual costs per day. variable based on purpose
312
Police
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE 27 3rd Time Per 12 Mon. Period: 1/1 - 12/31 $281.75 $10.70 $292.45 28 4th Time Per 12 Mon. Period: 1/1 - 12/31 $450.75 $17.25 $468.00 29 5th+ Time Per 12 Mon. Period: 1/1 - 12/31 $563.50 $21.50 $585.00 Citations/Cause Based Charges
30 Loud Party - Second Call-out $120 min./AC $4.50 $124.50 min./AC 31 Officer's Fee per hour Actual Costs No change Actual Costs 32 Vehicle Parking Violations SEE SCHEDULE BELOW $53.75 $2.00 $55.75 33 Recovery of Public Safety Service Costs/Response to Hazardous Substance Spills, Refuse, Dumping, Willfully or Negligently Setting Fires (Plus Materials and Direct Costs)
Actual Costs No change Actual Costs
34 Recovery of Public Safety Service Costs - Crime Related: Response to Domestic Violence, DUI, Alcohol/Drug Related Vehicle
Accedent/Incident, False 911 Calls, Baricaded Robber, etc. (Plus Materials and Direct Costs)
Actual Costs No change Actual Costs
35 Water meter tampering SEE PUBLIC WORKS FEE SCHEDULE
Per call, or the fully burdened hourly rate, if greater.

Infraction: 0 to $100 - 1st offense, $100 to $200 - 2nd offense, $200 to $500 - 3rd offense; Per Penal Code
Restitution
313
Police
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE Animal Control
35 Euthanasia & Disposal of Animal: (by weight) Fee the same for picking up a live or a dead animal.

Actual Cost No change Actual Cost
36 Dog License, Neutered $10.00 No change $10.00
37 Dog License, Non Neutered $2 Multi year discount. Late fee $10 $75.00 No change $75.00 38 Animal Shelter Delivery (Contract with County) To pick up and deliver live animal to shelter at owner's request. Actual Cost No change Actual Cost 39 Animal Impounding Actual Cost No change Actual Cost
40 Care and Feeding of Animals - Cat per day contract cost - $6 minimum or ACTUAL COST Actual Cost No change Actual Cost 41 Care and Feeding of Animals - Dog per day contract cost - $10 minimum or ACTUAL COST Actual Cost No change Actual Cost 42 Redemption of Animal (Letter required from us before release by SPCA) Plus SPCA cost $56.75 + SPCA Actual Cost $2.25 $59.00 + SPCA Actual Cost
43 Dog Breeding License (Soledad Municipal Code Section

6.12.065) per dog $100.00 No change $100.00
44 Cat Trap Rental - Small Trap per day $5.75 $0.25 $6.00 45 Cat Trap Rental - Large Trap per day $11.25 $0.50 $11.75 46 Cat Trap Rental - Small Trap per day Actual Cost No change Actual Cost 47 Cat Trap Rental - Large Trap per day Actual Cost No change Actual Cost Vehicle Citations
City Code Violation Code Section:
48 Repairing Vehicle on Street $25.00 $15.00 $40.00
49 Parking Regulation Violations $25.00 $15.00 $40.00
50 Vehicle Storage / Repair $25.00 $15.00 $40.00
51 Outdoor Storage $25.00 $15.00 $40.00
52 Restricted Parking $25.00 $15.00 $40.00
53 Storage of Trailer / Motor Home $25.00 $15.00 $40.00 California Vehicle Code Violations
54 Parked in Intersection $25.00 $15.00 $40.00
55 Parking in Crosswalk $25.00 $15.00 $40.00
56 Parking in Red Zone / Safety Zone $25.00 $15.00 $40.00 57 Parking Within 15' of Fire Station $25.00 $15.00 $40.00 58 Blocking Driveway $25.00 $15.00 $40.00
59 Vehicle Parked on Sidewalk $25.00 $15.00 $40.00
60 Vehicle Obstructing Traffic $25.00 $15.00 $40.00
61 Double Parking $25.00 $15.00 $40.00
62 Park with Traffic Within 18" of Curb $25.00 $15.00 $40.00 63 Parked / Blocking Handicap Space $280.00 No change $280.00 64 Parked Within 15' of Fire Hydrant $25.00 $15.00 $40.00 ACO trap set/pick up
To dispose of dead animal at owner's request.
$3 discount if qualify for the Low Income Program
Additional licenses required for a Breeder business, i.e. Business license, etc. Fee is PER DOG, with a maximum allowed of four (4) dogs - max. fee $400 Customer pick-up of trap
Customer pick-up of trap
22500E
ACO trap set/pick up

10.04.070

10.04.050 a-f

10.12.025 a-b

17.38.220 a-b

10.04.100

10.12.027 a-b
22500A
22500B
22500C
22500D
22500F
22500G
22500H
22502 a-e
22507.8 A-C
22514
314
Police
# Description Unit Notes FY 2023/24 FEE INCREASE FY 2024/25 FEE 65 Parking Within 7 1/2' of Railroad Track $25.00 $15.00 $40.00 66 Drive / Park on Public Grounds $25.00 $15.00 $40.00
67 72 Hour Parking $25.00 $15.00 $40.00
68 Street and Alley Parking 22951 $25.00 $15.00 $40.00
69 Unattended Running Vehicle 22315 $25.00 $15.00 $40.00 70 Display of License Plates 5200 Reduced to $10 with proof of correction $25.00 $15.00 $40.00 71 Position of License Plates 5201 Reduced to $10 with proof of correction $25.00 $15.00 $40.00 72 Tabs Attached to Rear Plate $25.00 $15.00 $40.00
22521
21113A
22851K
5204 Reduced to $10 with proof of correction
315
Code Enforcement
# Description Unit FY 2023/24 FEE INCREASE FY 2024/25 FEE 1 Notice of Code Violation -second notice each violation $61.00 $2.40 $63.40 2 Nuisance Abatement Actual Cost No change Actual Cost
3 Abatement Administrative Fee
20% of Actual Cost or Contract
Cost of Abatement No change
20% of Actual Cost or Contract
Cost of Abatement
4 Code Violation Notice--Posting/Inspection per hour $112.75 $4.25 $117.00 5 Inspection/Abatement Warrant Actual Cost No change Actual Cost 6 Attorney or other Legal Fees Actual Cost No change Actual Cost 7 Vehicle Abatement Actual Cost No change Actual Cost
Notes
penalty
316
Fire
# Description Unit FY 2023/24 FEE INCREASE FY 2024/25 FEE Administrative
1 Training Surcharge 3% of permit fee No change 3% of permit fee Permits
2 Fire Permit (Where no specified elsewhere) Based on Valuation Per Hour $84.50 $3.20 $87.70 3 Work without a Permit Investigation Equal to Permit Fee No change Equal to Permit Fee 4 Fire Sprinkler Permit Actual Cost No change Actual Cost Inspections
5 Fire Inspection/Reinspection*** Per Hour $172.50 $6.50 $179.00 *** The first inspection is charged for - if items are cleared, there is no charge for the reinspection. If NOT cleared, there is a second charge for the reinspection, and so on
6 Weed Abatement Inspection/Reinspection Per Hour $172.50 $6.50 $179.00 7 Hazardous Materials Inspection Per Hour Minimum one hour $172.50 $6.50 $179.00 8 Special Events Inspection - due when permit pulled Per Hour $172.50 $6.50 $179.00 9 Fireworks Stands & Sales Inspection - due when permit pulled Per Hour $172.50 $6.50 $179.00 10 Fireworks Show Inspection - due when permit pulled Per Hour $172.50 $6.50 $179.00 Plan Checks
11 Fire Sprinkler Plan Check: Residential Minimum Charges Actual Cost & Admin fee of 10% No change Actual Cost & Admin fee of 10% 12 Fire Sprinkler Plan Check: Nonresidential Minimum Charges Actual Cost & Admin fee of 10% No change Actual Cost & Admin fee of 10% Miscellaneous
13 False Alarm - Third and Over Per Calendar Year Each occurrence Penalty $197.25 $7.50 $204.75 14 Fire Hydrant Flow Test Per location $172.50 $6.50 $179.00 15 Recovery of Public Safety Service Costs Per Incident $175/hr; Actual Costs $6.65 $181.65/hr; Actual Costs 16 Fire Department Response for Alcohol Related Accidents, Hazardous Substance Spills, Refuse, Dumping or Willfully Setting Fires Per Incident Plus Materials & Direct Costs Actual Cost No change Actual Cost Notes
Minimum 1 hour
CSG (contractor)
Minimum 1 hour
Minimum 1 hour
Minimum 1 hour
Minimum 1 hour
Minimum 1 hour
317
Finance
# Description Unit FY 2023/24 FEE INCREASE FY 2024/25 FEE 1 NSF Check Fee $28.25 $1.05 $29.30
2 Copy Fees Per page $0.25 No change $0.25
3 Credit Card Transaction Fee 2.5% of the charge No change 2.5% of the charge 4 Notary Fees
Per
Notary $15.00 No change $15.00
5 Contract Administration Fee $52.00 $2.00 $54.00
6 Business Licenses Tax Based upon annual gross
sales No change Based upon annual gross sales
7 Sidewalk Vendor Permit $61.00 $2.50 $63.50
Schedule of rates attached.

Non-refundable application fee as established by Muni Code (5.45.040) SB 998 mandates contractual arrangements be offered to past due customers and allows administrative fees on each contract
Notes
For first occurrence; $35 and then $35 + collections cost after for further occurrences Black & White Letter (Legal $.50/Ledger $.75)
318
319
320
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

5.04.200 Schedule of rates—Gross receipts basis generally.

A. Unspecified Businesses. Every person transacting or carrying on any business other than those businesses enumerated below in this section shall pay an annual license tax based upon the gross receipts resulting from the operation of the business in accordance with the following scale. If the annual gross receipts are:

At Least But Less Than The License Tax is
$ 1.00 $ 45,000.00 $ 40.00
45,000.00 65,000.00 55.00
65,000.00 85,000.00 75.00
85,000.00 105,000.00 95.00
105,000.00 125,000.00 115.00
125,000.00 150,000.00 137.50
150,000.00 175,000.00 162.50
175,000.00 200,000.00 187.50
200,000.00 230,000.00 215.00
230,000.00 260,000.00 245.00
260,000.00 300,000.00 280.00
300,000.00 350,000.00 325.00
350,000.00 400,000.00 375.00
400,000.00 450,000.00 425.00
450,000.00 500,000.00 475.00
500,000.00 550,000.00 525.00
550,000.00 600,000.00 575.00
600,000.00 700,000.00 650.00
700,000.00 800,000.00 750.00
800,000.00 900,000.00 850.00
900,000.00 1,000,000.00 950.00
1,000,000.00 1,000.00
B. Specified Businesses. Every person transacting or carrying on any of the following businesses or occupations:

Abstractor
Accountant
Architect
Advertising agent
Appraiser
Assayer
Attorney
Auditor
Bacteriologist
Baths, public and steam
321
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

Brokers
Business school
Chemists
Chiropodists
Chiropractor
Civil engineer
Cleaning buildings, windows
Collection agent
Credit bureau
Crematorium
Dancing school
Dancing teacher
Designer
Dental laboratory
Dental technician
Dentist
Dermatologist
Detective
Doctor
Employment agent
Electrical engineer
Engineer
Finance company
Funeral director
Geologist
Gunsmith
Grinder
Income tax expert
Insurance adjuster
Interior decorator
Interpreter
Janitor
Laboratory technician
Landscape architect
322
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

Lapidary
Livery stable
Locksmith
Masseur
Mechanical engineer
Medical laboratory
Messenger service
Mineral bath
Music school
Music teacher
Naturopathist
Oculist
Optician
Optometrist
Osteopath
Orthopedist
Parking lot
Pathologist
Patrol service
Physician
Physiotherapist
Piano tuner
Plunge
Posture correction
Public stenographer
Radiographer
Sign painter
Storage warehouse
Structural engineer
Surgeon
Surveyor
Taxidermist
Title insurance
Turkish baths
323
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

Urologist
Veterinarian
Watch repairing
Weighing machine
X-Ray technician
shall pay a license tax annually based upon gross receipts resulting from operations of such businesses, occupations or professions in accordance with the following scale. If annual receipts are:

At Least But Less Than The License Tax is
$ 1.00 $ 20,000.00 $ 40.00
20,000.00 30,000.00 62.50
30,000.00 40,000.00 87.50
40,000.00 50,000.00 112.50
50,000.00 70,000.00 150.00
70,000.00 90,000.00 200.00
90,000.00 110,000.00 250.00
110,000.00 140,000.00 312.50
140,000.00 170,000.00 387.50
170,000.00 200,000.00 462.50
200,000.00 300,000.00 625.00
300,000.00 400,000.00 875.00
400,000.00 or over 1,000.00
C. Retail Business Generally. Any person who transacts one or more of the businesses, occupations or professions enumerated in subsection A of this section, at one location, is required to obtain only one license and shall pay the license tax specified in this section, based upon the aggregate of his gross receipts realized from the operation of all such businesses, professions or occupations.

D. Retail Business Generally. Every person transacting or carrying on a retail business, unless otherwise specifically enumerated in this chapter, shall pay a annual license tax based upon the gross receipts resulting from the operation of the business, in accordance with the following scale. If annual receipts are:

At Least But Less Than The License Tax is
$ 1.00 $ 45,000.00 $ 40.00
45,000.00 65,000.00 55.00
65,000.00 85,000.00 75.00
85,000.00 105,000.00 95.00
105,000.00 125,000.00 115.00
125,000.00 150,000.00 137.50
150,000.00 175,000.00 162.50
175,000.00 200,000.00 187.50
200,000.00 230,000.00 215.00
230,000.00 260,000.00 245.00
260,000.00 300,000.00 280.00
300,000.00 350,000.00 325.00
324
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

350,000.00 400,000.00 375.00
400,000.00 450,000.00 425.00
450,000.00 500,000.00 475.00
500,000.00 550,000.00 525.00
550,000.00 600,000.00 575.00
600,000.00 700,000.00 650.00
700,000.00 800,000.00 750.00
800,000.00 900,000.00 850.00
900,000.00 1,000,000.00 950.00
1,000,000.00 or over 1,000.00
E. Wholesale and Jobbing Business. Every person transacting and carrying on a wholesale or jobbing business shall pay an annual license tax, based upon the gross receipts resulting from the operation of the business, in accordance with the following scale. If annual gross receipts are:

At Least But Less Than The License Tax is
$ 1.00 $ 200,000.00 $ 40.00
200,000.00 300,000.00 62.50
300,000.00 400,000.00 87.50
400,000.00 500,000.00 112.50
500,000.00 600,000.00 137.50
600,000.00 800,000.00 175.00
800,000.00 1,000,000.0 225.00
1,000,000.00 or over 250.00
F. Every person transacting or carrying on the business of general engineering or building contractor, plumbing, electrical or roofing contractor or other specialty contractor, shall pay a license tax based upon annual gross receipts resulting from the operation of the business in accordance with the following scale. If annual gross receipts are:

At Least But Less Than The License Tax is
$ 1.00 $100,000.00 $ 40.00
100,000.00 150,000.00 62.50
150,000.00 200,000.00 87.50
200,000.00 250,000.00 112.50
250,000.00 300,000.00 137.50
300,000.00 350,000.00 162.50
350,000.00 400,000.00 187.50
400,000.00 450,000.00 212.50
450,000.00 500,000,00 237.50
500,000.00 600,000.00 275.00
600,000.00 700,000.00 325.00
700,000.00 800,000.00 375.00
800,000.00 900,000.00 425.00
900,000.00 1,000,000.00 475.00
325
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

1,000,000.00 500.00
G. Twenty-dollar Quarterly Tax. Quarterly licenses will be issued for twenty dollars in the case of businesses having gross receipts of not more than twenty-five thousand dollars during any quarter.

H. Additional Business. If any person transacting any business enumerated in this section carries on a retail, wholesale or jobbing business or any other business, he is required to obtain a license and pay the tax specified for the other business, in addition to the license specified in this section.

I. Contractors Working Outside City. The receipts of the contractors enumerated in this section from contracts performed wholly outside of the city shall not be included in their gross receipts for the purpose of computing the license tax. Any such contractor who does not maintain a fixed place of business within the city is required to obtain a license and pay the tax specified in this section, with respect to any contract performed by him within the city.

J. Manufacturing. Every person carrying on the business of manufacturing shall pay an annual license tax, based upon the gross receipts resulting from the operation of the business, in accordance with the following scale. If annual gross receipts are:

At Least But Less Than The License Tax is
$ 1.00 $100,000.00 $ 40.00
100,000.00 200,000.00 50.00
200,000.00 300,000.00 62.50
300,000.00 400,000.00 87.50
400,000.00 500,000.00 112.50
500,000.00 600,000.00 137.50
600,000.00 800,000.00 175.00
800,000.00 1,000,000.00 225.00
1,000.000.00 and over 250.00
K. Manufacturing and Retail Business. If any person carrying on the business of manufacturing shall also engage in a retail business, whether selling products manufactured by him or not, he shall be required to obtain a license and pay the tax specified for the retail business in addition to the license specified in this section; provided, that any person engaged in the business of manufacturing is not required to obtain a license in addition to his manufacturer's license to engage in the wholesale or jobbing business with respect to products manufactured by him.
(Prior code § 12-20)

5.04.210 Schedule of rates—Public utilities.

Every person conducting or carrying on the business of a public utility shall pay an annual license tax based upon annual gross receipts resulting from the operation of such business, in accordance with the following scale. If the annual gross receipts are:

At Least But Less Than The License Tax is
$ 1.00 $ 100,000.00 $ 40.00
100,000.00 200,000.00 65.00
200,000.00 300,000.00 90.00
326
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

300,000.00 400,000.00 115.00
400,000.00 500,000.00 140.00
500,000.00 600,000.00 165.00
600,000.00 700,000.00 190.00
700,000.00 800,000.00 215.00
800,000.00 900,000.00 240.00
900,000.00 1,000,000.00 265.00
1,000,000.00 and over 290.00
(Prior code § 12-21)

5.04.220 Schedule of rates—Flat-rate basis.

Every person transacting and carrying on the businesses enumerated in this section shall pay a license tax as follows:

A. Advertising.

1. Every person conducting or carrying on the business of erecting, installing, maintaining or operating outdoor advertising, advertising structures, billboards, signboards or similar devices shall pay a license tax of forty dollars per annum.

2. Every person conducting or carrying on the business of operating, and who operates upon the streets, any vehicle equipped with music or musical device, loudspeaker or other device for attracting attention, shall pay a license tax of five dollars per day or forty dollars per year.

B. Auction Sale, Auctioneer, Auction House, Farmer's Auction Yard.

1. Every person conducting or carrying on the business of auctioneer shall pay a license tax of twenty-five dollars per day, except while operating in a licensed auction house having a fixed place of business as defined in this chapter.

2. Every person conducting or carrying on the business of an auction house other than as provided in subdivision 3 of this subsection, having a fixed place of business, shall pay a license tax of fifty dollars annually.

3. Every person conducting or carrying on the business of a farmer's auction yard for animals or implements of husbandry shall pay an annual license tax of fifty dollars. The license provided in this subsection shall permit only the auctioning of animals and implements of husbandry.

C. Automobile, Truck, Trailer Rentals.

1. Notwithstanding any other provisions to the contrary, every person conducting or carrying on the business of renting automobiles or trucks for a period of two months or less shall pay an annual license tax based on fifteen dollars per truck exceeding a manufacturer's rated capacity of one ton, ten dollars per truck with a manufacturer's rated capacity of one ton or less and ten dollars per automobile.

2. Every person conducting, managing or carrying on the business of renting trailers for the period of two months or less shall pay an annual license tax based on five dollars per trailer.

D. Bankrupt Sales, Etc. Every person conducting or carrying on the business of owning, operating, opening, establishing, managing or having charge of any temporary location or place of business of any kind for the sale of any insolvent, bankrupt, fire-damaged or other similar goods, wares or merchandise 327
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

and every itinerant or transient merchant having a temporary place of business but not having any continuous or permanent place of business in the city, who sells or offers for sale any insolvent, bankrupt, fire-damaged or other goods, wares or merchandise, shall pay a license tax of twenty-five dollars per day.

E. Barbershops and Beauty Shops. Every person engaging in the business of conducting, maintaining or carrying on a barber or beauty shop shall pay a license tax of forty dollars per year, plus ten dollars for every chair in excess of three.

F. Billiard and Pool Tables. Every person engaged in the business of conducting any billiard or pool table shall pay an annual license tax of sixteen dollars for each table located at such business establishment.

G. Bowling Alleys. Every person engaged in the business of conducting, maintaining or carrying on any bowling alley shall pay a license tax of ten dollars per year for each alley.

H. Brokers, Agents and Labor Contractors. Every person transacting or carrying on the business of broker or agent or labor contractor, who does not maintain a fixed place of business in the city shall pay an annual license tax of forty dollars per year.

I. Card Tables. Every person operating or maintaining any table, in the city, wherein cards or any legal game of chance is played, shall pay a license tax of forty dollars annually for each table.

J. Christmas Tree, Greens or Card Sales—Fireworks. Every person conducting or carrying on the business of selling Christmas trees, holly, berries, cards, fireworks or other seasonal items shall pay an annual license tax of twenty-five dollars, except where such business is conducted in connection with another regularly established place of business for which a license has been issued, or is conducted by and solely for the benefit of a charitable or nonprofit organization.

K. Circuses and Carnivals. Every person holding, promoting, managing or giving any concert, traveling show or exhibition for commercial purposes, whether in a tent or otherwise, shall pay a license tax of fifty dollars for the first day or any part thereof, and twenty-five dollars per day thereafter; provided, however, that no license shall be required for any exhibition, show or concert actually given and participated in by any local school, patriotic or civic organization.

L. Dances. Every person carrying on the business of conducting public dances at which an admission fee is charged, collected or received, shall pay a license tax of five dollars for each dance with a maximum of twenty-five dollars per quarter.

M. Hospital, Sanitarium, Rest Home, Nursing Home, Asylum. Every person engaged in the business of conducting, carrying on or operating a hospital, sanitarium, rest home, nursing home or asylum shall pay a license tax of twenty-five dollars per year plus one dollar per bed. This subsection shall not apply to nonprofit institutions exempted by the state.

N. Hotels, Roominghouses and Motel Rooms. Every person carrying on the business of conducting, operating or managing a hotel, roominghouse or motel, shall pay a yearly license according to the following scale:
1 to 15 units $ 40.00
16 to 25 units 50.00
26 to 70 units 75.00
Over 70 units 150.00
O. House Trailer and Mobile Home Parks. Every person conducting or carrying on the business of operating a trailer park, mobile home park or other similar business, where the owners of house trailers or mobile homes are allowed to use space within the house trailer park or mobile home park 328
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

through a lease, rental or other similar arrangement, shall pay an annual license tax as follows for rental spaces over four:
5 to 19 spaces $ 40.00
20 to 29 spaces 50.00
30 to 39 spaces 60.00
40 to 49 spaces 70.00
50 to 75 spaces 90.00
Over 75 spaces 110.00
P. Junk Dealers or Dealers in Old or Used Articles. Every person conducting or carrying on the business of collecting, buying or selling at either retail or wholesale, or otherwise dealing in junk, rubbish, waste material, refuse, old rags, sacks, bottles, cans, papers, metals, jewelry, precious metals, rubber, bric-abrac, cordage, truck or automobile parts and other like articles, whether the same can be sold or otherwise disposed of for the purpose of being treated, repaired or prepared so as to be used again in some other form, shall pay an annual license tax of forty dollars per year.

Q. Movie Theaters and Concert Halls. Every person carrying on the business of conducting a concert hall, or a theater containing a permanent stage upon which moveable scenery and theatrical appliances are used, where regular theatrical or vaudeville performances are given and to which an admission is charged, collected or received, or conducting a moving picture theater where moving or motion pictures are exhibited and an admission fee is charged, collected or received, shall pay an annual license tax of seventy dollars per year.

R. Pawnbrokers. Every person conducting or carrying on the business of pawnbroker shall pay a license tax of one hundred dollars per year.

S. Peddlers and Itinerant Vendors. Every person carrying on the business of peddling or selling services or goods, not having a regular established place of business in the city, shall pay a license tax of three dollars per day, with a maximum of twelve dollars per month.

T. Coin-operated Vending Machines.

1. Definition. The term "coin-operated vending machine," as used in this subsection, includes both game and other machines operated solely for amusement or convenience (e.g., mechanical games, pinball machines, video games, music or jukeboxes, weighing machines, laundry equipment, car wash equipment, etc.) and machines dispensing tangible personal property (e.g., tobacco, food, drink, confections or other merchandise).

2. Game and Convenience Machines. Section 5.04.060 notwithstanding, every person possessing or maintaining, on premises owned or leased by such person, any coin-operated vending machine operated solely for amusement or convenience shall pay an annual license tax of forty dollars per year per machine.

3. Machines Dispensing Tangible Personal Property. Section 5.04.060 notwithstanding, every person possessing or maintaining, on premises owned or leased by such person, any coin-operated vending machine dispensing tangible personal property shall pay an annual license tax in accordance with the following scale:

Unit Sale Price Annual Tax
1¢ to 5¢, inclusive $ 2.00
5¢ to 10¢, inclusive 4.00
10¢ to 50¢, inclusive 12.00
329
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

Over 50¢ 40.00
The term "unit sale price," as used in this subsection, means the maximum price charged for any single item dispensed from the machine to which it applies. The tax shall apply to each machine on the premises, if there be more than one.

4. Vending Machines—Exclusive Business. Section 5.04.060 and subdivisions 2 and 3 of this subsection notwithstanding, any individual or firm whose business is limited exclusively to renting, leasing or operating coin-operated vending machines, as provided in Section 16002.5 of the Business and Professions Code, shall pay a license tax based on gross receipts in accordance with the provisions of Section 5.04.200(A). Any license to conduct a business issued under this chapter in connection with which the city imposes a license tax upon coin-operated vending machines within the city may be revoked for failure of the licensee to report to the city the receipts from such machines.

U. Taxicabs. Every person conducting or carrying on the business of operating a taxicab company shall pay a license tax in accordance with Section 5.04.100.

V. Transportation and Trucking Service.

1. Every person conducting or carrying on the business of transporting goods, wares, merchandise or other materials for hire and providing for transportation and deliveries of goods or other materials either within the city limits or deliveries of goods or other materials from outside the city limits to places within the city limits, or both, shall pay an annual license tax of seventy dollars.

2. Every person not having a fixed place of business within the city who makes wholesale or retail deliveries of goods or services by motor vehicles within the city or who maintains, installs or repairs goods, wares, merchandise or equipment inside the city, or who provides a service not otherwise covered in this section, shall pay an annual license tax of forty dollars. (Prior code § 12-22)

5.04.240 Exemptions and exclusions.

A. Exemptions. The following are exempted from the payment of a license tax under this chapter:

1. Any charitable institution, organization or association organized and conducted for charitable purposes only. This exemption shall not apply to promoters employed by charitable organizations;

2. Any person conducting, carrying or staging any concert, exhibition, lecture, dance, amusement or entertainment where the receipts, if any, derived therefrom are to be used solely for charitable or benevolent purposes and not for private gain or for the private gain of any person in whole or in part;

3. Any religious, fraternal, educational, military, state, county or municipal organization or association conducting, carrying on or staging any amusement or entertainment concert, exhibition, lecture, dance or athletic event, when the receipts derived are to be wholly for the benefit of the organization and not in the whole or any part for private gain of any person;

4. Any public utility which pays to the city a tax under a franchise or similar agreement;

5. Any honorably discharged or honorably relieved soldier, sailor or marine of the United States who is physically unable to obtain a livelihood by manual labor, and who is a voter of this state, distributing circulars, or hawking, peddling or vending any goods, wares or merchandise owned by him, except spirituous, malt, vinous or other intoxicating liquor.
330
Created: 2024-05-31 17:52:23 [EST]
(Supp. No. 7)

B. Exclusions. Except as may be otherwise specifically provided in this chapter, the terms of this chapter do not apply to any of the following persons:

1. Banks, including national banking associations, to the extent that a city may not levy a license tax upon them under the provisions of Article 13, Section 16 of the State Constitution;

2. Insurance companies and associations to the extent that a city may not levy a license tax upon them under the provisions of Article 13, Section 28 of the State Constitution;

3. Any person whom the city is not authorized to license under any law or Constitution of the United States or this state. Specifically excluded from "gross receipts," as that term is used in Section 5.04.200 of this chapter, are receipts from the manufacture, importation or sale of alcoholic beverages exempt from local taxation under the provisions of Article XX, Section 22 of the State Constitution;

4. Commercial travelers may be required by the tax collector to file a verified statement claiming to be excluded by the provisions of this section, which shall set forth all facts upon which the exclusion is claimed.

C. Claims for Exemption. Any person desiring to claim exemption from the payment of a license tax and to have a free license issued to him shall make application therefor upon forms prescribed by the tax collector and shall furnish such information and make such affidavits as may be required. Upon the determination being made that the applicant is entitled to exemption from the payment of license taxes for any reason set forth in this chapter, the tax collector, upon the applicant complying with the provisions of this chapter or any other ordinance of the city which may require a permit for the doing of the particular act proposed to be done, shall issue a free license to such person which shall show upon its face that the license tax is exempt. (Prior code § 12-23)
331
SUBJECT: Acceptance of the City and Soledad Successor Agency's Audited Financial Statements for Fiscal Year 2022-2023
TO: Honorable Mayor Velazquez and City Council
FROM: Mike Howard, Finance Director
MEETING DATE: June 19, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 3.

Recommendation
It is recommended that the City Council and the Board of Directors of the Soledad Successor Agency accept the City and Successor Agency’s Audited Financial Statements for Fiscal Year Ended June 30, 2023.

Executive Summary
Each year the City is required by California Government code sections to conduct an audit of the fiscal year-end financial statements for the General Fund, Special Revenue Funds, and Enterprise Funds by an independent certified public accountant. For fiscal year-end June 30, 2023, the City of Soledad had expenditures greater that $750,000 of Federal Grant Funds, which required what is called a Single Audit. The current auditor’s report opinion is that the presented financial statements were free from any material misstatements, or in other words, a “clean audit." Staff is recommending that the Council/Agency Board accept the Audit Report.

Background
The State of California Government Code (sections 25250 & 25253) require all general-purpose local government to issue an annual report on the financial position and activities of that government. The report must be presented in conformance with generally accepted accounting principles (GAAP) and must be audited by an independent firm of certified public accountants (CPA) in conformance with generally accepted auditing standards (GAGAS). The goal of the audit by an independent firm is to provide reasonable assurance that the accounting transactions, practices, and procedures result in fair presentation of the financial position of the organization. In addition, the audit provides the same type of assurance about management’s assertions about the adequacy of internal accounting controls to safeguard the assets of the entities.

The City of Soledad received $6.2 million of American Rescue Plan Act funds. In the fiscal year 2022- 23, the City expended more than $750,000 of Federal Grant funds which required a more detailed audit 332
Independent Auditor's Report and Financial Statements FY 2022-23 Management Report FY 2022-23
Measure Y and S Letter 2023
of the City’s grant funds receipts and expenditures and the issuance of a Single Audit.

Review & Analysis
The independent auditor has rendered an unqualified audit opinion indicating that the City and Successor Agency are materially in compliance and has accounting records that properly reflect the financial position of those entities. Included in the report is a letter from the auditor stating that the Measure Y and Measure S cash receipts and disbursements have been accounted for in a proper manner.

This information will be provided to the City’s two oversight committees at their next scheduled meeting.

Financial Considerations
There is no cost associated with the acceptance of the audited financial statements.

Alternatives
Receive and file audited financial statements for FY 2022-23.

Postpone the acceptance of the audited report pending clarification if any.

Planning/CEQA
Acceptance of the Auditor’s Report is not considered a project for the purposes of CEQA since it has no potential for resulting in either a direct or indirect impact to the environment. (See CEQA Guidelines Section 15378.)
Public Notice Requirements
None required.

Attachment(s):
333

CITY OF SOLEDAD
INDEPENDENT AUDITOR’S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2023
334

TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet - Governmental Funds 6
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 7
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 8
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 11
Statement of Cash Flows – Proprietary Funds 12
Statement of Fiduciary Assets and Liabilities – Custodial Funds 13 Statement of Changes in Fiduciary Net Position – Custodial Funds 14 Statement of Fiduciary Net Position – Private Purpose Trust Fund 15 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Fund 16 Notes to Basic Financial Statements 17 – 45
335
TABLE OF CONTENTS (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 46
Budgetary Comparison Schedule – American Rescue Plan Fund 47 Budgetary Comparison Schedule – Program Income Fund 48
Budgetary Comparison Schedule – Park Grant (Prop 68) Fund 49 Budgetary Comparison Schedule – Measure X Fund 50
Schedule of the City’s Proportionate Share of Net Pension Liability 51 Schedule of Contributions 52
Supplemental Only Information
Combining Balance Sheet – Nonmajor Governmental Funds 53 – 55 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds 56 – 58 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 59 – 60
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 61 – 63
Schedule of Expenditures of Federal Awards 64
Notes to Schedule of Expenditures of Federal Awards 65
Schedule of Findings and Questioned Costs 66
Summary Schedule of Prior Audit Findings 67
336
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Soledad, 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 Soledad (the “City”), California, as of and for the year ended June 30, 2023, 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, 2023, 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. 337
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 46–50, the schedule of the City’s proportionate share of net pension liability on page 51, and the schedule of contributions on page 52, 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 338
3 operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2024, 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.

June 4, 2024
339
See accompanying notes. 4

CITY OF SOLEDAD

STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 25,399,809 $ 16,374,182 $ 41,773,991 $ Cash and investments with fiscal agent - 457 457
Accounts receivable, net 378,628 2,335,490 2,714,118
Internal balances (174,769) 174,769 -
Due from other governments 1,550,722 - 1,550,722
Interest receivable 11,102 6,153 17,255
Notes receivable 8,802,532 32,913 8,835,445
Deferred charges - 2,109,968 2,109,968
Capital assets, net of allowance
for depreciation 53,993,167 41,517,265 95,510,432
Total assets 75,027,099 77,485,289 152,512,388
DEFERRED OUTFLOWS OF RESOURCES 3,736,651 593,179 4,329,830

LIABILITIES
Accounts payable and accrued expense 2,463,700 581,498 3,045,198 Accrued interest payable 974 3,334 4,308
Unearned revenues 172,356 - 172,356
Deposits payable 290,320 181,376 471,696
Long-term liabilities
Due within one year 42,162 1,693,230 1,735,392
Due in more than one year 55,569 25,511,970 25,567,539
Compensated absences 684,069 281,614 965,683
Lease liability 175,897 69,619 245,516
Net pension liability 6,118,089 793,468 6,911,557
Total liabilities 29,116,109 10,003,136 39,119,245
DEFERRED INFLOWS OF RESOURCES 80,871 627,620 708,491

NET POSITION
Net investment in capital assets 41,419,534 26,781,357 68,200,891 Restricted for debt service - 1,542,895 1,542,895
Restricted for long-term notes receivable 8,802,532 - 8,802,532 Restricted for specific projects and programs 14,734,050 - 14,734,050 Unrestricted 5,635,068 18,099,046 23,734,114
Total net position $ 46,423,298 70,591,184 $ 117,014,482 $ 340
See accompanying notes. 5
CITY OF SOLEDADSTATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2023 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government 2,303,478 $ - $ 3,120,382 $ 2,203,317 $ 3,020,221 $ - $ 3,020,221 $ Public works 4,544,560 - 675,858 1,231,778 (2,636,924) - (2,636,924) Community development 1,862,767 773,283 127,660 - (961,824) - (961,824) Public safety 7,242,594 438,059 248,535 50,040 (6,505,960) - (6,505,960) Community services 1,008,865 181,419 1,860,003 403,583 1,436,140 - 1,436,140 Debt Service
Interest and fiscal charges - 13,073 - - (13,073) - (13,073) Total governmental activities 1,392,761 16,975,337 6,032,438 3,888,718 (5,661,420) - (5,661,420) Business-type activities
Water 3,697,345 3,239,730 - 264,404 - (193,211) (193,211) Sewer 6,758,359 7,060,455 - 141,525 - 443,621 443,621
Garbage 4,045,380 3,272,498 44 - - 772,926 772,926
Total business-type activities 14,345,565 13,728,202 44 405,929 - 1,023,336 1,023,336 Total primary government $ 30,703,539 15,738,326 $ 6,032,482 $ 4,294,647 $ (5,661,420) 1,023,336 (4,638,084) General Revenue
Property taxes and assessments - 5,314,166 5,314,166Sales taxes - 5,707,442 5,707,442Franchise and other taxes - 179,031 179,031Transient lodging taxes - 297,962 297,962Utility users tax - 954,565 954,565Business license tax - 131,954 131,954Investment income 383,539 683,944 1,067,483Sale of property - 2,002,359 2,002,359Rents and other income 47,486 126,707 174,193 Total general revenue and transfers 431,025 15,398,130 15,829,155 Change in Net Position 1,454,361 9,736,710 11,191,071Net Position Beginning of year 44,968,937 60,854,474 105,823,411
End of year $ 46,423,298 70,591,184 $ 117,014,482 $
Functions/Programs
Net Revenue/(Expense) and
Program Revenue Changes in Net Position
341
See accompanying notes. 6
CITY OF SOLEDAD BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2023 Other Total
American Park Grant Governmental Governmental
General Rescue Plan Program Income Prop 68 Measure X Funds Funds ASSETS
Cash and investments 7,038,510 $ 5,502,071 $ 451,429 $ - $ 3,779,988 $ 8,549,013 $ 25,321,011 $ Accounts receivable 319,752 - - - - 58,876 378,628
Due from other governments 1,183,526 - - - 219,317 147,879 1,550,722 Due from other funds 4,469,477 - - - - - 4,469,477
Interest receivable 4,224 2,033 166 - 1,397 3,253 11,073 Notes receivable - - 6,438,579 - - 2,363,953 8,802,532
Total assets $ 5,504,104 13,015,489 $ 6,890,174 $ - $ 4,000,702 $ 11,122,974 $ 40,533,443 $

LIABILITIES
Accounts payable and accrued expense 534,714 878,524 - 712,006 $ 18,199 309,488 2,452,931Unearned revenues 172,356 - - - - - 172,356Due to other funds - - - 3,906,353 - 563,124 4,469,477Advance from other funds - - - - - 174,769 174,769Deposits and other liabilities - 290,320 - - - - 290,320 Total liabilities 878,524 997,390 - 4,618,359 18,199 1,047,381 7,559,853

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 6,438,579 - - 2,363,953 8,802,532 Total deferred inflows of resources - - 6,438,579 - - 2,363,953 8,802,532

FUND BALANCE
Restricted
Capital improvement projects 1,833,933 - - - - 1,956,448 3,790,381 Circulation improvements - - - - 3,982,503 1,574,603 5,557,106 Lighting, landscape & park maintenance - - - - - 2,790,976 2,790,976 Public safety programs - - - - - 760,445 760,445
Low-income housing activities - - 451,595 - - 1,383,547 1,835,142 Committed for contingency reserve 1,500,000 - - - - - 1,500,000Unassigned 4,625,580 8,684,166 - (4,618,359) - (754,379) 7,937,008 Total fund balance 12,018,099 4,625,580 451,595 (4,618,359) 3,982,503 7,711,640 24,171,058 Total liabilities, deferred inflows of resources,
and fund balance 13,015,489 $ 5,504,104 $ 6,890,174 $ - $ 4,000,702 $ 11,122,974 $ 40,533,443 $ Special Revenue Funds
342
See accompanying notes. 7

CITY OF SOLEDAD

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO

THE STATEMENT OF NET POSITION
JUNE 30, 2023
Total governmental fund balance 24,171,058 $
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 41,517,265 Governmental long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds (273,628) Compensated absences are not due and payable in the current period and, therefore, are not reported in the governmental funds (684,069) Net pension liability applicable to governmental activities are not due and payable in the current period and accordingly is not reported in the governmental funds (6,118,089) Deferred outflows of resources related to net pension liability, represent an consumption of net pension or fund balance that applies to future period(s) and so 3,736,651 will not be recognized as an outflow of resources (revenue) until that time Deferred inflows of resources related to net pension liability, represent an acquisition of net pension or fund balance that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time (627,620) Interest on long-term debt is reported as an expenditure of the Governmental Funds when paid because it requires the use of current financial resources. However, accrued interest must be recorded when incurred (974) Internal service funds are used by management to charge the costs of fleet maintenance and computer services to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the Statement of Net Position. 68,058 Certain revenues in Governmental Funds are deferred because they are not collected within the prescribed time period after fiscal year end.

Those revenues are recognized on the accrual basis in Governmental Activities 8,802,532
Net position of governmental activities $ 70,591,184
343
See accompanying notes. 8
CITY OF SOLEDAD STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 Other Total
American Park Grant Governmental Governmental
General Rescue Plan Program Income Prop 68 Measure X Funds Funds Revenue
Taxes and assessments 11,119,318 $ - $ - $ - $ 843,992 $ 1,462,215 $ 13,425,525 $ Licenses, permits and impact fees 940,874 - - - - 1,243,343 2,184,217 Intergovernmental 2,181,007 3,109,757 - 1,754,406 15,680 804,192 7,865,042 Charges for services 192,044 - - - - - 192,044
Fines and forfeitures 46,071 - - - - - 46,071
Rents 78,601 - - - - - 78,601
Interest 141,750 241,349 10,669 - 80,955 208,784 683,507 Loan repayments - - 64,705 - - 16,991 81,696
Other - 75,197 - - - 52,078 127,275
Total revenue 14,874,461 3,251,507 75,374 1,754,406 940,627 3,787,603 24,683,978 Expenditures
Current
General government 2,008,890 - - - - - 2,008,890
Public works 2,025,104 - - - 90,460 1,603,891 3,719,455 Community development 846,142 226,760 5,121 - - 812,346 1,890,369Public safety 6,538,166 - - - - 39,990 6,578,156 Community services 600,885 - - 16,017 - 236,364 853,266 Capital outlay 1,685,121 1,511,787 - 6,068,606 - 847,630 10,113,144 Debt Service
Principal 122,078 - - - - - 122,078
Interest and fiscal charges - 6,392 - - - 6,681 13,073
Total expenditures 13,832,778 1,738,547 5,121 6,084,623 90,460 3,546,902 25,298,431 Revenue over/(under) expenditures 1,041,683 1,512,960 70,253 (4,330,217) 850,167 240,701 (614,453) Other Financing Sources/(Uses)
Sale of property 2,002,359 - - - - - 2,002,359
Transfers in/(out) - net - (151,259) - - - 151,259 -
- 1,851,100 - - - 151,259 2,002,359
Change in Fund Balance 1,512,960 2,892,783 70,253 (4,330,217) 850,167 391,960 1,387,906 Fund Balance
Beginning of year 3,112,620 9,125,316 381,342 (288,142) 3,132,336 7,319,680 22,783,152 End of year $ 4,625,580 12,018,099 $ 451,595 $ (4,618,359) $ 3,982,503 $ 7,711,640 $ 24,171,058 $ Special Revenue Funds
344
See accompanying notes. 9

CITY OF SOLEDAD

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
Net change in fund balance - total governmental funds 1,387,906 $ Amounts reported for governmental activities in the Statement of Activities are different because:

Depreciation expense on capital assets is reported in the Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not required as expenditures in Governmental Funds Depreciation and amortization expense (1,301,560)
Capital outlay 10,113,143
Issuance of long-term notes receivable is unavailable in governmental funds, but the 218,338 issuance is recorded as revenues in the statement of activities Repayment of long-term notes receivable is revenue in governmental funds, but the repayment reduces long-term assets in the statement of net position (107,199) Repayment of long-term debt is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position 122,078 Pension expenses reported in the Statement of Activities do no require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds (721,873)
Internal service funds are used by management to charge the costs of fleet maintenance and computer services to individual funds. The net revenue (loss) of certain activities of internal service funds is reported with governmental activities (69,228)
Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as expenditures in Governmental Funds 95,105
Change in net position of governmental activities 9,736,710 $ 345
See accompanying notes. 10
CITY OF SOLEDAD STATEMENT OF NET POSITION – PROPRIETARY FUNDS JUNE 30, 2023 Governmental
Total Activities
Proprietary Internal
Water Sewer Garbage Funds Service Fund
ASSETSCurrent assets
Cash and investments 2,565,842 $ 12,239,853 $ 1,568,487 $ 16,374,182 $ 78,798 $ Cash and investments with fiscal agent 457 - - 457 -
Accounts receivable 432,244 1,321,966 581,280 2,335,490 - Interest receivable 4,484 1,078 591 6,153 29
Total current assets 13,566,303 2,999,621 2,150,358 18,716,282 78,827 Non-current assets
Loan receivable 25,349 7,564 - 32,913 -
Deferred charges - 2,109,968 - 2,109,968 -
Advances to other funds - 174,769 - 174,769 -
Property, plant and equipment,
net of allowance for depreciation 44,970,311 9,016,246 6,610 53,993,167 - Total assets 60,828,915 12,041,216 2,156,968 75,027,099 78,827 DEFERRED OUTFLOWS OF RESOURCES 259,006 255,473 78,700 593,179 - LIABILITIESCurrent liabilities
Accounts payable and accrued expenses 154,510 168,488 258,500 581,498 10,769 Accrued interest 3,334 - - 3,334 -
Unearned revenues 25,349 7,564 - 32,913 -
Deposits 79,656 41,080 60,640 181,376 -
Current portion of long-term debt 150,792 1,542,438 - 1,693,230 - Total current liabilities 413,641 1,759,570 319,140 2,492,351 10,769 Non-current liabilities
Long-term debt 832,960 24,679,010 - 25,511,970 -
Lease liability 69,619 - - 69,619 -
Net pension liability 346,460 341,735 105,273 793,468 - Compensated absences 156,477 87,675 37,462 281,614 -
Total noncurrent liabilities 25,177,222 1,336,714 142,735 26,656,671 - Total liabilities 26,936,792 1,750,355 461,875 29,149,022 10,769 DEFERRED INFLOWS OF RESOURCES 20,655 20,941 6,362 47,958 -

NET POSITION
Net investment in capital assets 8,032,494 18,748,863 - 26,781,357 - Restricted for debt service 457 1,542,438 - 1,542,895 - Unrestricted/(deficit) 13,835,640 2,495,975 1,767,431 18,099,046 68,058 Total net position/(deficit) $ 10,528,926 34,126,941 $ 1,767,431 $ 46,423,298 $ 68,058 $ Business-Type Activities - Enterprise Funds
346
See accompanying notes. 11
CITY OF SOLEDAD STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION –

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Governmental
Total Activities
Proprietary Internal
Water Sewer Garbage Funds Service Fund
Operatin
g Revenue
Charges for services $ 7,060,455 3,239,730 $ 4,045,380 $ 14,345,565 $ 1,146,624 $ Total operating income 7,060,455 3,239,730 4,045,380 14,345,565 1,146,624 Operating Expense
Contractual services and utilities 965,155 1,962,042 2,763,893 5,691,090 1,218,762Personnel 1,321,353 2,315,408 434,865 4,071,626 -Supplies and materials 972,775 1,066,378 62,761 2,101,914 -Depreciation 1,166,631 412,207 10,978 1,589,816 - Total operating expense 6,510,459 3,671,490 3,272,497 13,454,446 1,218,762 Operating income/(loss) 549,996 (431,760) 772,883 891,119 (72,138) Nonoperating Revenue/(Expense)
Intergovernmental - - 42 42 -Development impact fees 264,404 141,525 - 405,929 -Other income 8,541 - 38,945 47,486 -Interest income 66,712 285,059 31,768 383,539 2,910Interest expense (247,900) (25,854) - (273,754) - Total nonoperating revenue/(expense) 178,684 313,803 70,755 563,242 2,910 Change in Net Position 728,680 (117,957) 843,638 1,454,361 (69,228) Net Position
Beginning of year 33,398,261 10,646,883 923,793 44,968,937 137,286 End of year $ 34,126,941 10,528,926 $ 1,767,431 $ 46,423,298 $ 68,058 $ Business-Type Activities - Enterprise Funds
347
See accompanying notes. 12
CITY OF SOLEDAD STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2023 Governmental
Total Activities
Business-Type Internal
Water Sewer Garbage Funds Service Fund
Operating Activities
Receipts from customers and users 3,224,693 $ 6,745,659 $ 4,010,233 $ 13,980,585 $ 1,147,352 $ Payments for contractual services and utilities (922,848) (1,819,786) (2,750,677) (5,493,311) (1,215,306)Payments to employees (1,300,106) (2,255,908) (419,845) (3,975,859) -Payment to suppliers (1,066,378) (972,775) (62,761) (2,101,914) - Net cash provided by (used in)
operating activities 1,603,587 28,964 776,950 2,409,501 (67,954) Non-capital Financial Activities
Payments from developers 272,945 141,525 38,987 453,457 - Proceeds from other government - (7,564) - (7,564) -Payments (to)/from other funds 206,992 5,779 - 212,771 - Net cash provided by (used in)
noncapital financing activities 340,953 278,724 38,987 658,664 - Capital and Related Financing Activities
Purchase of property, plant and equipment (34,064) (130,792) - (164,856) -Principal paid on long-term debt (214,617) (1,542,438) - (1,757,055) -Interest paid on long-term debt (247,900) (26,103) - (274,003) - Net cash provided by (used in)
capital and related financing activities (1,921,130) (274,784) - (2,195,914) - Investing Activities
Interest received 284,603 66,563 31,702 382,868 2,931
Net cash provided by
investing activities 284,603 66,563 31,702 382,868 2,931 Net Increase (Decrease) in Cash 308,013 99,467 847,639 1,255,119 (65,023)Cash Beginning of year 11,931,840 2,466,832 720,848 15,119,520 143,821 End of year $ 12,239,853 2,566,299 $ 1,568,487 $ 16,374,639 $ 78,798 $ Cash Flows from Operating Activities
Operating income (loss) (431,760) $ 549,996 $ 772,883 $ 891,119 $ (72,138) $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 1,166,631 412,207 10,978 1,589,816 -(Increase) Decrease in Accounts Receivable (11,365) (324,490) (37,597) (373,452) 728(Increase) Decrease in Deferred Charges - 247,900 - 247,900 -(Increase) Decrease in Deferred Outflow of Resources (144,208) (142,242) (43,819) (330,269) -Increase (Decrease) in Unearned Revenues (5,779) 7,564 - 1,785 -Increase (Decrease) in Deposits 2,107 2,130 2,450 6,687 -Increase (Decrease) in Compensated Absences (60,646) (21,277) (9,863) (91,786) -Increase (Decrease) in Net Pension Liability 279,054 275,250 84,792 639,096 -Increase (Decrease) in Deferred Inflow of Resources (52,953) (52,231) (16,090) (121,274) -Increase (Decrease) in Accounts Payable and Accrued Liabilities (105,644) 42,307 13,216 (50,121) 3,456 Net Cash Provided (Used) by Operating Activities $ 1,603,587 28,964 $ 776,950 $ 2,409,501 $ (67,954) $ Business-Type Activities - Enterprise Funds
348
See accompanying notes 13

CITY OF SOLEDAD
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES – CUSTODIAL FUNDS JUNE 30, 2023
The Vineyards Diamond Ridge
Assessment Assessment
District District Total
ASSETS
Cash and investments 111,232 $ 710,260 $ 821,492 $
Cash and investments with fiscal agent 130,586 155,999 286,585 Interest receivable 263 41 304
Total assets 866,522 241,859 1,108,381

LIABILITIES
Accounts payable - - -
Total liabilities $ - - $ - $

NET POSITION
Restricted for other governments 241,859 866,522 1,108,381 Total net position $ 866,522 241,859 $ 1,108,381 $
349
See accompanying notes 14

CITY OF SOLEDAD
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – CUSTODIAL FUNDS JUNE 30, 2023
The Vineyards Diamond Ridge
Assessment Assessment
District District Total

ADDITIONS
Property taxes 267,740 $ 320,364 $ 588,104 $
Interest revenue 3,711 16,532 20,243
Total additions 336,896 271,451 608,347

DEDUCTIONS
Professional services 2,075 $ 5,075 $ 7,150 $
Loan payment 180,000 155,000 335,000
Interest expense 145,896 68,456 214,352
Total deductions 305,971 250,531 556,502
Change in Net Position 20,920 30,925 51,845

NET POSITION
Beginning of year 220,939 835,597 1,056,536
End of year $ 866,522 241,859 $ 1,108,381 $
350
See accompanying notes 15

CITY OF SOLEDAD

STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2023
Assets
Cash and investments
Held in City Treasury 1,558,227 $
Held with trustees 9,243
Land held for redevelopment 180,000
Land 4,273,968
Total assets 6,022,014
Liabilities
Interest payable 24,706
Long-term debt
Due within one year 920,000
Due in more than one year 8,845,000
Total liabilities 9,789,706
Net Position
Held in trust for other governments (3,767,692) $
351
See accompanying notes 16

CITY OF SOLEDAD

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2023
Additions
Property taxes 1,237,923 $
Investment earnings and other 11,768
Total additions 1,249,691
Deductions
Administrative costs 11,696
Interest expense 305,119
Total deductions 316,815
Change In Net Position 932,876
Net Position
Beginning of year (4,700,568)
End of year (3,767,692) $
352
17 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of Soledad (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

These financial statements present the government and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government’s operations and data from these units are combined with data of the primary government. Each blended component unit has a June 30 fiscal year end. There are no discretely presented component units included in these financial statements. The following sections further describe the significant accounting policies of the City.

Reporting Entity
The City of Soledad is a municipal incorporation, operating as a general law city, and governed by a city council of five members, under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: general government, public safety, public works, facilities/transportation, culture and leisure, and public utilities.

Also included in this report is the Soledad Public Financing Authority (SPFA). The SPFA is governed by the City officers. Although it is legally separate from the City, the SPFA is reported as if it were part of the primary government because its sole purpose is to finance and construct the City’s public facilities.

Basis of Presentation – Fund Accounting
Government-Wide Financial Statements - The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its component units. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 353
18 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Net position are restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental Fund Financial Statements - The Governmental Fund Financial Statements provide information about the City’s funds, including fiduciary funds and the blended component units. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

The City reports the following major governmental funds:

General Fund – The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.

American Rescue Plan Fund – This fund accounts for pandemic related funding received and costs related to the pandemic.

Program Income Fund – This fund accounts for program income received and expenditures related to housing assistance loans for low income individuals.

Park Grant (Prop 68) Fund – This fund accounts for program income received and expenditures related to park grants.

Measure X Fund – The fund is used to account for the City’s Transportation Safety and Investment Plan activities, which include transportation safety and mobility projects such as Pinnacles Parkway, Metz Road Traffic calming project, and Highway 101 South County frontage roads.

The City reports the following major enterprise funds:

Water Fund – The Water Fund accounts for the operation and maintenance of the City’s water treatment and
water transmission and distribution systems.

Sewer Fund – The Sewer Fund accounts for the operation and maintenance of the City’s sewer system.

Garbage Fund - The Garbage Fund accounts for the operation and maintenance of the City’s garbage system.
354
19 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) The City reports the following additional fund types:

Internal Service Fund – The Internal Service Fund accounts for medical benefits provided to other departments or agencies of the government, on a cost reimbursement basis.

Custodial Funds – The Custodial Funds account for assets held by the City as an agent for various local governments or other entities. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

Private-Purpose Trust Funds – The Private-Purpose Trust Fund accounts for assets held by the City as trustee for the Successor Agency.

Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place.

Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund’s principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.

Financial Statement Amounts
Cash and Cash Equivalents – Cash and cash equivalents represent the City's cash bank accounts including, but not limited to, certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows. 355
20 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.

Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund and certificates of deposit. Investments are recorded at amortized cost or fair value. Fair value is based upon quoted market prices.

Accounts Receivable – Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year end accrual for services through the end of the fiscal year which have not yet been billed. Accounts receivable are reported net of an allowance for uncollectibles.

Monterey County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year.

Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on the January 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

Interfund Receivables/Payables – Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances To/From Other Funds – This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-term loan (advance) is included as an interfund receivable/payable.

Capital Assets – Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City’s capitalization threshold is met.

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial individual cost of more than $10,000 for roadways and $5,000 for all other assets, and an estimated useful life of at least three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
356
21 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities are included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:

Years
Buildings 40
Improvements 10 - 40
Equipment 5 - 10
Streets 30
Parks 40
Curbs and Gutters 40
Storm Drains 75
Signs and Streetlights 4 - 30
Compensated Absences – Vacation time may be accumulated up to two years entitlement. Cash compensation for accrued vacation is generally not payable until the employee terminates employment with the City.

In fiscal year 1986, the City adopted a policy whereby classified employees with accumulated vacation pay in excess of thirty days may elect to receive one cash payment for up to ten days in excess of the thirty days maximum accrual. Staff with less than thirty days accrued are not eligible to participate in the vacation buy back program.

Cash compensation for unused sick leave is payable to employees only upon termination of employment with the City and is limited to a maximum of 15 days payable upon resignation or dismissal or 30 days payable upon retirement. The calculation is done in accordance with Governmental Accounting Standards Board Statement No. 16.

Long-Term Obligations – In the Government-Wide Financial Statements and in the Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. 357
22 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Pension – For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employee Retirement System (CalPERS) plan and additions to/deduction 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.

Unearned Revenue – Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records unearned revenue related to uncollected outstanding performing loans and intergovernmental revenues received but not earned (qualifying expenditures not yet incurred).

Leases – The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide and enterprise fund financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
358
23 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Non-Current Governmental Assets/Liabilities – GASB Statement No. 34 eliminates the presentation of account groups, but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position.

Net Position – The government-wide and business-type activities 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 – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category presents external restrictions on net position imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose.

Fund Balance – In the fund financial statements, governmental fund balance is made up of the following components:
 Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments.  Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
 Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment.  Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed.  Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
359
24 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Note 2 – Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

Note 3 – Cash and Investments
In accordance with applicable sections of the California Government Code and the Soledad Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds.

Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during May of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.

The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.
360
25 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 – Cash and Investments (continued)
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 41,773,991 $
Cash and Investments with Fiscal Agent 457
Fiduciary Funds:

Cash and Investments 2,379,719
Cash and Investments with Fiscal Agent 295,828
Total Cash and Investments $ 44,449,995
Cash and investments as of June 30, 2023, consist of the following:

Cash on hand 2,380 $
Deposits with Financial Institutions 41,842,035
Local Agency Investment Fund 2,309,498
Held by Fiscal Agent:

Money Market 286,840
U.S. Treasury Obligations 9,243
Total Cash and Investments $ 44,449,995
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 361
26 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 – Cash and Investments (continued)
Following is a description of the valuation methodologies used for assets measured at fair value.

LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).

The City had the following recurring fair value measurements as of June 30, 2023:

Level 1 Level 2 Level 3
June 30, 2023
Balance
Investments by fair value level:

Equity Securities:

LAIF - $ $ 2,309,498 $ - $ 2,309,498
Total Equity Securities - 2,309,498 - 2,309,498
Cash and cash equivalents carried at amortized cost:

Deposits and cash on hand 41,844,415
Money Market Mutual Funds 286,840
U.S Treasury Obligation 9,243
Total Investments amortized at cost 42,140,497
Total Cash and Investments 44,449,995 $
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. 362
27 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 – Cash and Investments (continued)
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 20% None
Reverse Repurchase Agreements 92 days 20% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 2 years 20% None
County Pooled Investment Funds 1 year 20% None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Authorized Investment Type
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
363
28 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 – Cash and Investments (continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s investment in the investment pools are available for withdraw in one business day and have an overall maturity of less than one year.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investments in the investment pools are unrated.

Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total City investments (external investment pools and mutual funds are excluded from this disclosure requirement).

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: The City did not have any deposits with financial institutions in excess of federal depository insurance limits and held in uncollateralized accounts. 364
29 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 – Cash and Investments (continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Note 4 – Notes Receivables
Notes receivable and deferred loans consisted of the following at June 30, 2023:

Orchard Gabilan Associates, L.P. – The HOME Investment Partnership Grant program approved $1,600,000 of grant funds to be made available for local development of an affordable housing project.

The City entered into an agreement with Orchard Gabilan Associates, L.P. to loan such funds for the construction of Gabilan Family Apartments. Payments of principal and interest on the HOME loan are to be deferred until the earlier of repayment in full of the Deferred Development Fee or January 1 of the year in which the 14th anniversary of the date of issuance of the final Certificate of Occupancy. If not paid sooner, the unpaid principal balance of this note, plus any unpaid interest thereon shall be due and payable in full fifty-five years from the date of the note. The note bears 4.46% interest and the face amount of the note at June 30, 2023 was $1,600,000.

Benito FLC, L.P. – The HOME Investment Partnership Grant program approved $3,760,000 of grant funds to be made available for local development of an affordable housing project. The City entered into an agreement with Benito FLC, L.P. to loan such funds for the construction of the Benito Street Farm Labor Center. Funds were provided in the form of a deferred payment loan. If not paid sooner, the unpaid principal balance of this note, plus any unpaid interest thereon shall be due and payable in full fifty-five years from the date of the note. The note bears 4% interest and the face amount of the note at June 30, 2023 was $3,760,000.

Revolving Loan Program – Long-term loans receivable of $2,842,532 represent monies loaned to homebuyers and small business owners in connection with a downpayment assistance, home rehabilitation and business assistance programs. The loans are secured by real property with repayment due upon the sale of real property or starting at the end of the 30 year deferral period. At the time of sale, the seller pays the loan balance in full plus interest, ranging from 0% to 4%. For the homebuyer loan program, starting at the end of the 30 year deferral period, the borrower is required to repay the loan, without interest, over the following 15 years.

Multi-Family Affordable Housing Rehabilitation Loans – Long-term notes receivable of $600,000 represent monies loaned to two developers in connection with construction and rehabilitation of lowincome multi-family housing projects. The loans are secured by real property with repayment due upon the sale of real property or starting at the end of the 55 year deferral period. At the time of sale of the project or at the end of the deferral period, the borrower shall pay the loan balance in full with interest at 4 percent per annum.
365
30 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 – Interfund Advances, Receivables, Payables and Transfers Interfund Receivables and Payables
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash, and carry an interest rate equal to the rate earned on pooled cash.

Individual fund interfund receivables and payables balances as of June 30, 2023, are as follows:

Due From Due To
General Fund 4,469,477 $ - $
20-CDBG-CV1-00058 Special Revenue Fund - 32,628
Park Grant Prop 68 Special Revenue Fund - 3,906,353
20-CDBG-12084 Special Revenue Fund - 93,488
SB2 Public Land Use Element Special Revenue Fund - 16,475 LEAP Grant - 17,410
Gas Tax Special Revenue Fund - 67,541
REAP Grant - 59,369
CDBG Business Loans - 276,213
$ 4,469,477 4,469,477 $
Advance To and From Funds
Advances from and to balances as of June 30, 2023 are as follows:

Advance To Advance From
Sewer Fund 174,769 $ - $
Development Impact Capital Projects Fund - 174,769
$ 174,769 174,769 $
366
31 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 – Interfund Advances, Receivables, Payables and Transfers Transfers Between Funds
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds’ that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the government-wide financial statements. The City had the following interfund transfers during the current fiscal year:

Transfers In Transfers Out
Major Governmental Funds:

General Fund - $ (151,259) $
Nonmajor Governmental Funds:

COVID 16,259 -
Gas Tax Fund 135,000 -
$ (151,259) 151,259 $
367
32 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 6 – Capital Assets
Capital asset activities for the year ended June 30, 2023, were as follows:

Balance Balance
July 1, 2022 Additions Retirements June 30, 2023
Governmental Activities
Capital assets, not being depreciated
Land 822,801 $ - $ - $ 822,801 $
Construction in progress - 2,014,938 (2,014,938) -
Total capital assets, not being depreciated - 2,837,739 (2,014,938) 822,801 Capital assets, being depreciated
Buildings and improvements 8,632,665 7,919,520 - 16,552,185 Infrastructure 39,053,903 2,518,286 - 41,572,189
Machinery and equipment 1,690,276 5,690,574 (376,471) 7,004,379 Total capital assets, being depreciated 12,128,082 53,377,142 (376,471) 65,128,753 Less accumulated depreciation for
Buildings and improvements (2,685,787) (216,463) - (2,902,250) Infrastructure (15,690,029) (810,935) - (16,500,964)
Machinery and equipment (192,086) (5,390,931) 376,471 (5,206,546) Total accumulated depreciation (1,219,484) (23,766,747) 376,471 (24,609,760) Total capital assets, being depreciated, net 10,908,598 29,610,395 - 40,518,993 Right of use assets, being amortized:

Vehicles - right to use 410,379 - - 410,379
Less: accumulated amortization (82,076) (152,832) - (234,908) Total lease assets, being amortized, net (82,076) 257,547 - 175,471 Governmental activities capital assets, net $ 10,826,522 32,705,681 $ (2,014,938) $ 41,517,265 $ 368
33 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 6 – Capital Assets (continued)
Balance Balance
July 1, 2022 Additions Retirements June 30, 2023
Business-Type Activities
Capital assets, not being depreciated
Land 2,509,996 $ - $ - $ 2,509,996 $
Construction in progress - 224,867 - 224,867
Total capital assets, not being depreciated - 2,734,863 - 2,734,863 Capital assets, being depreciated
Buildings and improvements 55,689,390 - - 55,689,390
Infrastructure 19,389,129 - - 19,389,129
Machinery and equipment 164,856 2,216,454 - 2,381,310
Total capital assets, being depreciated 164,856 77,294,973 - 77,459,829 Less: accumulated depreciation (1,558,331) (24,712,643) - (26,270,974) Total capital assets, being depreciated, net (1,393,475) 52,582,330 - 51,188,855 Right of use assets, being amortized:

Vehicles - right to use 157,423 - - 157,423
Less: accumulated amortization (31,485) (56,489) - (87,974) Total right of use assets, being amortized (31,485) 100,934 - 69,449 Total right of use assets, being amortized, net (62,970) 44,445 - (18,525) Business-type activities capital assets, net $ (1,424,960) 55,418,127 $ - $ 53,993,167 $ Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Functions:

General Government 48,348 $
Public Works 837,884
Public Safety 155,599
Community Services 259,729
$ 1,301,560
Business-Type Functions:

Water 412,207 $
Sewer 1,166,631
Garbage 10,978
$ 1,589,816
369
34 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 – Long-Term Debt
Balance Balance Current
July 1, 2022 Additions Retirements June 30, 2023 Portion Governmental Activity Long Term Debt
Direct Borrowings:

Loan Payable
2019 Motorola Radios $ 137,770 - $ (40,039) $ 97,731 $ 42,162 $ Total Governmental Activity Long Term Debt $ - 137,770 $ (40,039) $ 97,731 $ 42,162 $ Business-Type Activity Long Term Debt
Direct Placement:

Bonds Payable
2021 Water Refunding Revenue Bonds 980,480 $ - $ (72,920) $ 907,560 $ 74,600 $ Direct Borrowings':

Loans Payable
Sewer Plant Loan 27,763,886 - (1,542,438) 26,221,448 1,542,438 Leases Payable
Energy Retrofit Financed Purchase - 186,423 (110,231) 76,192 76,192 Total Business-Type Activity Debt $ - 28,930,789 $ (1,725,589) $ 27,205,200 $ 1,693,230 $ Compensated Absences
Government Activities $ 779,174 - $ (95,105) $ 684,069 $ Business-Type Activities $ - 373,400 $ (91,786) $ 281,614 $ Net Pension Liability
Government Activities $ 3,932,668 2,185,401 $ - $ 6,118,089 $ Business-Type Activities $ 639,096 154,372 $ - $ 793,468 $ 2019 Motorola Radios – On July 18, 2018, the City entered into a purchase agreement for 30 portable radios. The lease bears an interest rate of 5.2% and terminates on July 18, 2025. Payments of $11,608 are to be paid quarterly.
2021 Water Refunding Revenue Bonds - In December 2015, the Public Financing Authority issued 2021 Enterprise Revenue Bonds for the principal amount of $1,053,920. The issuance was to refund the outstanding principal balance of the Water Note Payable presented. The reacquisition price exceeded the net carrying amount of the old debt by $1,819,135. The City refunded the above debts to reduce its total debt service over 13 years by $99,551 and to obtain an economic gain (difference between the present values of debt service payments on the old and new debt) of $87,643. The bonds bear interest of 2.040% and are payable semi-annually commencing November 2021 through May 2034. Debt service is secured by a pledge of net revenues of the City’s Water Systems. The City covenants that it shall prescribe, revise and collect such charges for the services and facilities of the water systems which shall produce revenues sufficient in each fiscal year to provide gross revenues which are sufficient to pay all water operation and maintenance costs and all bond installment payments and produce net water revenues equal to at least 1.15 times debt service coming due and payable during such fiscal year. The City is in compliance with those covenants as of June 30, 2023, debt coverage ratio was 4.40. Cash basis debt service paid during the fiscal year ended June 30, 2023 totaled $92,922.
370
35 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 – Long-Term Debt (Continued)
Water System Improvement Loan – On May 1, 1994, the City borrowed $2,593,000 for the purpose of paying for water system improvements. Principal amounts from $25,000 to $135,000 are due on May 1 of each year through 2034. The notes carry an interest rate of 4.5% with interest payable semi-annually.

During the year this loan was refinanced as 2021 Water Refunding Revenue Bonds.

Sewer Plant Loan – In connection with the City’s construction of a new sewer plant, a loan for $46,451,084 was obtained from the State of California. Although, the loan is non-interest bearing, it did require a 16.667% loan fee resulting in an effective interest rate of 1.8%. The loan was to be repaid in twenty equal annual installments of $2,322,554 beginning January 1, 2011. However, in October 2014, the City renegotiated the payment terms from 20 years to 30 years, resulting in annual payments of $1,542,438 for the remaining 26 years. Unamortized loan charges of $2,109,968 remains to be amortized over the remaining life of the loan.

Energy Retrofit Financed Purchase – On August 13, 2008, the City entered into a purchase agreement for an energy retrofit upgrade at the water plant. The agreement bears an interest rate of 6.786% and terminates on February 29, 2024. Payments are made monthly in the amount of $9,680. The outstanding balance of the lease as of June 30, 2023 was $76,192.

Compensated Absences – City employees accumulate earned but unused vacation and sick pay benefits which can be converted to cash at termination of employment. Since no means exist to reasonably estimate the amounts that might be liquidated with expendable currently available financial resources, if any, they are reported as long-term debt on the Statement of Net Position. No expenditure is reported for these amounts in the governmental funds statements. However, in the Statement of Activities the expense is allocated to each function based on usage. The non-current portion of these vested benefits, payable in accordance with various collective bargaining agreements, at June 30, 2023, totaled $684,069 for governmental activities and $463,456 for business-type activities.

The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2023, were as follows:

Years ending June 30, Principal Interest Principal Interest 2024 42,162 $ 4,269 $ 1,693,230 $ 261,482 $
2025 44,398 2,033 1,618,618 245,310
2026 11,171 145 1,620,108 228,949
2027 - - 1,621,498 215,592
2028 - - 1,622,778 200,488
2029-2033 - - 8,140,631 769,957
2034-2038 - - 7,803,461 377,707
2039-2040 - - 3,084,876 46,154
$ 6,447 97,731 $ 27,205,200 $ 2,345,639 $
Governmental-Type Activities Business-Type Activities
371
36 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 – Long-Term Debt (Continued)
Assessment District Debt – The City acts as an agent for bond offerings within two assessment districts in the City. The City is not obligated in the event of default. Accordingly, the debt is not reflected in the City’s financial information. The amount of debt outstanding as of June 30, 2023, not reflected in these statements is $1,690,000 for The Vineyards and $2,470,000 for Diamond Ridge.

Note 8 – Lease Liability
Balance Balance Current
July 1, 2022 Additions Retirements June 30, 2023 Portion Lease Liability - Right of Use
Government Activities $ - 257,936 $ (82,039) $ 175,897 $ 82,204 $ Business-Type Activities $ 101,085 - $ (31,466) $ 69,619 $ 31,529 $ The City entered into several sixty (60) month lease agreement as lessee for the acquisition and use of vehicles. An initial lease liability was recorded in the amount of $647,920 during the year the lease was entered. As of June 30, 2023, the value of the lease liability was $359,021. The City is required to make monthly principal and interest payments of $411 to $6,873. The lease has an interest rate of 0.9%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $244,920 and had accumulated amortization of $322,880. The future principal and interest lease payments as of June 30, 2023, were as follows:

Principal Interest Principal Interest
Years ending June 30,
2024 82,204 $ 276 $ 31,529 $ 110 $
2025 58,235 125 23,969 53
2026 31,752 38 14,121 10
2027 1 3,706 - -
$ 440 175,897 $ 69,619 $ 173 $
Governmental-Type Activities Business-Type Activities
372
37 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 9 – Deferred Outflows and Deferred Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item to report in this category:
 The City has $4,329,830 in pension related items that qualify to be reported in deferred outflows of resources. The pension related deferred outflows of resources are described in Note 11.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item to report in this category:
 The City has $675,580 in pension related items that qualify to be reported in deferred inflows of resources. The pension related deferred inflows of resources are described in Note 11.  The City has $32,911 in deferred notes receivable related to impact fees.

Unavailable revenues arise only under a modified accrual basis of accounting that qualifies for reporting as deferred inflows of resources. Accordingly, that item, unavailable revenues, is reported only in the governmental funds balance sheet. The City reports in the Program Income, Low-Moderate Housing, CDBG Business Loans, 20-CDBG-CV10058, 20-CDBG-12084, and Development Impact Fee, $6,438,579, $1,707,850, $148,338, $64,589, $341,582, $101,594, respectively, as unavailable revenues, related to long-term notes and loans receivables.

Note 10 – Risk Management
The City provides for workers' compensation and liability through a self-funded joint powers agency, Monterey Bay Area Self Insurance Authorities. Joint Powers Agreement (JPA) accounts are not separately maintained for each participant.

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the Monterey Bay Area Self Insurance Authority (MBASIA). MBASIA is composed of 10 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of MBASIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage.

General Liability: The City has a deductible of $10,000 for each liability claim. Claims above $10,000 up to $1,000,000 are paid by MBASIA. Claims above $1,000,000 up to $29,000,000 are covered by insurance purchased by MBASIA.
373
38 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 10 – Risk Management (continued)
Workers’ Compensation: The City does not retain a deductible for workers’ compensation claims. Annual premiums for coverage up to statutory levels are paid to MBASIA based on a Board approved Budget methodology. A third party claims administrator is contracted by MBASIA to manage claims activity.

Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded insured coverage. There have been no significant reductions in insured liability coverage from coverage in the prior year. Audited financial statements for MBASIA can be obtained from their management at 100 Pine Street, 11th Floor, San Francisco, CA 94111.

Contingent Liabilities
The City participates in a number of Federal and State assisted grant programs which are subject to financial and compliance audits. Audits for these programs and the respective findings are to be determined at a future date, and the City expects the amount, if any, of the expenditures which may be disallowed by the granting agency to be immaterial.

Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) Plan Description – The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.

Funding Policy – The City pays 7-9% of annual covered salary for active plan members in the City’s defined pension plan. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2023 was 8.630%, 7.470%, 20.640%, and 12.780% for the Miscellaneous, PEPRA Miscellaneous, Safety, and PEPRA Safety, respectively. The contribution requirements of plan members is established by State statute and the employer contribution is established and may be amended by PERS. 374
39 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous Safety
Hire Date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit Formula 2.0% at 60;
maximum 2%
COLA

3.0% at 55;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 60 55
Monthly Benefits, as a % of Eligible Compensation 2.00% 3.00% Required Employee Contribution Rates 7.00% 9.00%
Required Employer Contribution Rates 8.630% 20.640%
PEPRA
Miscellaneous PEPRA Safety
Hire Date
On or After
January 1, 2013
On or After
January 1, 2013
Benefit Formula 2.0% at 62;
maximum 2%
COLA

2.7% at 57;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 62 57
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.70% Required Employee Contribution Rates 6.25% 11.50%
Required Employer Contribution Rates 7.470% 12.780%
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 July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 375
40 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) For the year ended June 30, 2023, $1,064,760 of contributions was recognized as part of the pension expense.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share of
Net Pension Liability/(Asset)
Miscellaneous $ 2,220,927
Safety $ 4,690,630

The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plan is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2022 and 2023 was as follows:

Miscellaneous Safety
Proportion – June 30, 2022 0.02276% 0.05436%
Proportion – June 30, 2023 0.04746% 0.06826%
Change – Increase/(Decrease) 0.02470% 0.01390%
376
41 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) For the year ended June 30, 2023, the City recognized pension expense of $2,080,930. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 1,171,502 $ - $
Change in employer's proportion 1,071,529 -
Difference between employer's contributions and
proportionate share of contributions - (594,776)
Changes in assumptions 700,538 -
Differences between projected and
actual investments earnings 1,147,532 -
Difference between expected and actual
experience (80,814) 238,729
Total 4,329,830 $ (675,590) $
The $1,171,502 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2024 765,478 $
2025 653,076
2026 363,521
2027 700,668
Thereafter -
377
42 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Actuarial Methods Assumptions – The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' Membership
Date for all Funds
1 Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
Investment Rate of Return 6.90%
Mortality Derived using CalPERS' Membership
Data for all Funds
1 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% 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.

All other actuarial assumptions used in the June 30, 2018 valuation was based on the results of an December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.

Change of assumptions – None.
378
43 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Discount rate – The discount rate used to measure the total pension liability for PERF C was 6.90%. 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.

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 equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The long-term expected real rates of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2022.

The table below reflects long-term expected real rates 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. The geometric rates of return are net of administrative expenses.

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10
1,
2 Global Equity - cap-weighted 30% 4.45%
Global Equity - noncap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
Total 100% 1 An expected inflation of 2.3% used for this period 2 Figures are based on the 2021-22 Asset Liability Management study. 379
44 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – City Employees’ Retirement Plan (Defined Benefit Pension Plan) (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90%) or 1-percentage point higher (7.90%) than the current rate:
1% Decrease
(5.90%)
Current Discount
Rate
(6.90%)
1% Increase
(7.90%)
Miscellaneous 3,934,688 $ 2,220,927 $ 810,927 $
Safety 7,433,019 $ 4,690,630 $ 2,449,349 $
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan – At June 30, 2023, the City has no outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

Note 12 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through June 4, 2024, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023 that required recognition or disclosure in such financial statements.

Note 13 – Fund Balance
Fund Balance Deficits – The following is a summary of fund balance deficits as of June 30, 2023:

Nonmajor Funds:

SB 2 Planning Land Use Element Grant Special Revenue Fund (18,566) $ Park Grant Prop 68 Special Revenue Fund (4,618,359) $
20-CDBG-CV100058 Special Revenue Fund (32,628) $
20-CDBG-12084 Special Revenue Fund (93,488) $
Gas Tax Special Revenue Fund (47,602) $
LEAP Grant Special Revenue Fund (120,754) $
REAP Grant Special Revenue Fund (165,128) $
CDBG Business Loans Special Revenue Fund (276,213) $
These fund balance deficits are expected to be relieved from future revenues or transfers from other funds.
380
45 CITY OF SOLEDAD

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 14 – Excess of Expenditures over Appropriations
The excess of expenditures over appropriations are as follows:

General Fund:

Current:

General Government $ 229,526
Public Works $ 228,790
Debt Service
Principal $ 84,286
Interest $ 6,392
Program Income Fund:

Current:

Community Development $ 2,621
American Rescue Plan Fund:

Current:

Community Development $ 225,309
Park Grant (Prop 68) Fund:

Current:

Community Services $ 16,017
Capital Outlay $ 1,068,606
The excess of expenditures over appropriations are covered by the available fund balance in the General Fund and future revenues for the American Rescue Plan Fund, Program Income Fund, and Park Grant (Prop 68) Fund.
381

REQUIRED SUPPLEMENTARY INFORMATION
382
46 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 10,323,488 $ 10,323,488 $ 11,119,318 $ 795,830 $
Licenses and permits 569,213 569,213 940,874 371,661
Intergovernmental 2,115,000 2,115,000 2,181,007 66,007
Charges for services 315,000 315,000 192,044 (122,956)
Fines and forfeitures 39,300 39,300 46,071 6,771
Interest 110,000 110,000 241,349 131,349
Rents 86,000 86,000 78,601 (7,399)
Other 2,076,863 2,076,863 75,197 (2,001,666)
Total revenue 15,634,864 15,634,864 14,874,461 (760,403) Expenditures
Current
General government 1,779,362 1,779,362 2,008,890 (229,528) Public works 1,796,314 1,796,314 2,025,104 (228,790)
Community development 1,291,163 1,291,163 846,142 445,021 Public safety 6,538,264 6,538,264 6,538,166 98
Community services 1,001,800 1,001,800 600,885 400,915
Capital outlay 2,292,500 2,292,500 1,685,121 607,379
Debt Service
Principal 37,792 37,792 122,078 (84,286)
Interest and fiscal charges - - 6,392 (6,392)
Total expenditures 14,737,195 14,737,195 13,832,778 904,417 Revenue over (under)expenditures 897,669 897,669 1,041,683 144,014 Other Financing Sources
Transfers in (out) - net 460,768 460,768 (151,259) (612,027) Net Change in Fund Balance $ 1,358,437 1,358,437 $ 890,424 $ (468,013) Fund Balance
Beginning of year 9,125,316
End of year $ 10,015,740
383
47 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

PROGRAM INCOME FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Interest $ 675 675 $ 10,669 $ 9,994 $
Loan repayments 10,000 10,000 64,705 54,705
Total revenue 10,675 10,675 75,374 64,699
Expenditures
Current
Community development 2,500 2,500 5,121 (2,621)
Total expenditures 2,500 2,500 5,121 (2,621)
Net Change in Fund Balance $ 8,175 8,175 $ 70,253 $ 62,078 Fund Balance
Beginning of year 381,342
End of year $ 451,595
384
48 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

AMERICAN RESCUE PLAN FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 3,109,757 3,109,757 $ 3,109,757 $ - $ Interest 91,000 91,000 141,750 50,750
Total revenue 3,200,757 3,200,757 3,251,507 50,750
Expenditures
Current
Community development 1,451 1,451 226,760 (225,309)
Capital outlay 2,309,514 2,309,514 1,511,787 797,727
Total expenditures 2,310,965 2,310,965 1,738,547 572,418 Net Change in Fund Balance $ 889,792 889,792 $ 1,512,960 $ 623,168 Fund Balance
Beginning of year 3,112,620
End of year $ 4,625,580
385
49 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE
PARK GRANT (PROP 68) FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 5,000,000 5,000,000 $ 1,754,406 $ (3,245,594) $ Total revenue 5,000,000 5,000,000 1,754,406 (3,245,594) Expenditures
Current
Community services - - 16,017 (16,017)
Capital outlay 5,000,000 5,000,000 6,068,606 (1,068,606) Total expenditures 5,000,000 5,000,000 6,084,623 (1,084,623) Net Change in Fund Balance $ - - $ (4,330,217) $ (4,330,217) Fund Balance
Beginning of year (288,142)
End of year $ (4,618,359)
386
50 CITY OF SOLEDAD

BUDGETARY COMPARISON SCHEDULE

MEASURE X FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes and assessments 509,706 $ 509,706 $ 843,992 $ 334,286 $ Interest 5,000 5,000 80,955 75,955
Intergovernmental - - 15,680 15,680
Total revenue 514,706 514,706 940,627 425,921
Expenditures
Current
Public works 2,425,000 2,425,000 90,460 2,334,540
Total expenditures 2,425,000 2,425,000 90,460 2,334,540 Revenue over (under)expenditures (1,910,294) (1,910,294) 850,167 2,760,461 Net Change in Fund Balance $ (1,910,294) (1,910,294) $ 850,167 $ 2,760,461 Fund Balance
Beginning of year 3,132,336
End of year $ 3,982,503
387
51 CITY OF SOLEDAD SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS* YEAR ENDED JUNE 30, 2023 Miscellaneous Plan:

Proportion of the net
pension liability
Proportionate share of the net
pension liability
Covered - employee
payroll
Proportionate share of the
net pension liability as a
percentage of
covered-employee payroll
Plan's fiduciary
net position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2015 0.03413% 843,493 $ 2,268,357 $ 37.19% 3,997,688 $ 82.580%2016 0.02608% 706,131 $ 2,218,866 $ 31.82% 4,764,400 $ 86.914%2017 0.03048% 1,058,944 $ 2,498,215 $ 42.39% 4,887,163 $ 82.191% 2018 0.03308% 1,303,916 $ 2,514,038 $ 51.87% 5,573,589 $ 81.041% 2019 0.03322% 1,251,774 $ 2,375,546 $ 52.69% 6,634,706 $ 84.128% 2020 0.03643% 1,459,009 $ 2,513,003 $ 58.06% 7,479,133 $ 83.677% 2021 0.03996% 1,685,422 $ 2,803,460 $ 60.12% 8,255,376 $ 83.045% 2022 0.02276% 432,090 $ 3,416,711 $ 12.65% 10,626,299 $ 96.093%2023 0.04746% 2,220,927 $ 4,490,090 $ 49.46% 10,350,858 $ 82.334% Safety Plan:
2015 0.06095% 2,286,046 $ 1,379,249 $ 165.75% 7,353,347 $ 76.280% 2016 0.05496% 2,264,409 $ 1,243,281 $ 182.13% 7,303,514 $ 76.338% 2017 0.05453% 2,824,201 $ 1,330,635 $ 212.24% 7,469,874 $ 72.565% 2018 0.05443% 3,252,288 $ 1,446,149 $ 224.89% 8,745,272 $ 72.892% 2019 0.05492% 3,518,548 $ 1,543,148 $ 228.01% 11,383,719 $ 77.938% 2020 0.05883% 3,672,312 $ 1,648,187 $ 222.81% 12,617,720 $ 77.457%2021 0.05896% 3,928,420 $ 1,500,361 $ 261.83% 13,292,935 $ 77.189%2022 0.05436% 1,907,684 $ 1,636,722 $ 116.56% 16,256,088 $ 89.497%2023 0.06826% 4,690,631 $ 1,837,972 $ 255.21% 15,167,578 $ 76.379% *Fiscal year 2014-15 was the first year of implementation, therefore only nine years are shown. Changes of Assumptions: None. 388
52 CITY OF SOLEDAD SCHEDULE OF CONTRIBUTIONS LAST 10 YEARS* YEAR ENDED JUNE 30, 2023 Contractually
required contribution
(actuarially
determined)
Contributions in relation to the
actuarially determined contributions
Contributions
deficiency (excess) Covered-employee payroll
Contributions as a
percentage of
covered-employee
payroll
Miscellaneous Plan:
2015 181,913 $ (181,913) $ - $ 2,268,357 $ 8.02%
2016 185,905 $ (185,905) $ - $ 2,218,866 $ 8.38%2017 190,660 $ (190,660) $ - $ 2,498,215 $ 7.63%2018 204,609 $ (204,609) $ - $ 2,514,038 $ 8.14%2019 214,151 $ (214,151) $ - $ 2,375,546 $ 9.01%2020 252,840 $ (252,840) $ - $ 2,513,003 $ 10.06%2021 287,787 $ (287,787) $ - $ 2,803,460 $ 10.27%2022 354,799 $ (354,799) $ - $ 3,416,711 $ 10.38%2023 457,029 $ (457,029) $ - $ 4,490,090 $ 10.18% Safety Plan:
2015 245,592 $ (245,592) $ - $ 1,379,249 $ 17.81%
2016 273,761 $ (273,761) $ - $ 1,243,281 $ 22.02%2017 360,960 $ (360,960) $ - $ 1,330,635 $ 27.13%2018 341,676 $ (341,676) $ - $ 1,446,149 $ 23.63%2019 351,948 $ (351,948) $ - $ 1,543,148 $ 22.81%2020 424,542 $ (424,542) $ - $ 1,648,187 $ 25.76%2021 461,523 $ (461,523) $ - $ 1,500,361 $ 30.76%2022 546,871 $ (546,871) $ - $ 1,636,722 $ 33.41%2023 607,731 $ (607,731) $ - $ 1,837,972 $ 33.07% *Fiscal year 2014-15 was the first year of implementation, therefore only nine years are shown. 389

SUPPLEMENTAL ONLY INFORMATION
390
See accompanying notes. 53
CITY OF SOLEDAD COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 Maintenance Public Gas LEAP REAP
Districts Safety Tax Grant Grant
ASSETS
Cash and investments 2,804,427 $ 674,272 $ - $ - $ - $
Accounts receivable - - 58,876 - -
Due from other governments - 39,936 - - -
Interest receivable 1,042 257 - - -
Notes receivable - - - - -
Total assets $ 714,465 2,805,469 $ 58,876 $ - $ - $

LIABILITIES
Accounts payable and accrued expense 14,493 $ 8,458 $ 38,937 $ 103,344 $ 105,759 $ Due to other funds - - 67,541 17,410 59,369
Advance from other funds - - - - -
Total liabilities 8,458 14,493 106,478 120,754 165,128

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -

FUND BALANCE
Restricted
Capital improvement projects - - - - -
Circulation improvements - - - - -
Public safety programs - 706,007 - - -
Lighting, landscape & park maintenance 2,790,976 - - - - Low-income housing activities - - - - -
Unassigned - - (47,602) (120,754) (165,128)
Total fund balance 2,790,976 706,007 (47,602) (120,754) (165,128) $ 714,465 2,805,469 $ 58,876 $ - $ - $
Total liabilities, deferred inflows of resources and fund balance Special Revenue Funds
391
See accompanying notes. 54
CITY OF SOLEDAD COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 SB2 Planning
Low-Moderate Vehicle CDBG Land UseHousing Asset COVID Abatement Business Loans Element Grant ASSETS
Cash and investments 1,383,066 $ - $ 54,418 $ - $ - $
Accounts receivable - - - - -
Due from other governments - - - - -
Interest receivable 511 - 20 - -
Notes receivable - 1,707,850 - 148,338 -
Total assets $ - 3,091,427 $ 54,438 $ 148,338 $ - $

LIABILITIES
Accounts payable and accrued expense 30 $ - $ - $ - $ 2,091 $ Due to other funds - - - 276,213 16,475
Advance from other funds - - - - -
Total liabilities - 30 - 276,213 18,566

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 1,707,850 - 148,338 -
Total deferred inflows of resources - 1,707,850 - 148,338 -

FUND BALANCE
Restricted
Capital improvement projects - - - - -
Circulation improvements - - - - -
Public safety programs - - 54,438 - -
Lighting, landscape & park maintenance - - - - -
Low-income housing activities 1,383,547 - - - -
Unassigned - - - (276,213) (18,566)
Total fund balance 1,383,547 - 54,438 (276,213) (18,566) $ - 3,091,427 $ 54,438 $ 148,338 $ - $
Total liabilities, deferred inflows of resources and fund balance Special Revenue Funds
392
See accompanying notes. 55
CITY OF SOLEDAD COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 Capital Projects
Fund Total
Non-major
20-CDBG 20-CDBG Development Governmental
SB1 CV1-00058 12084 Impact Funds
ASSETS
Cash and investments 1,474,395 $ - $ - $ 2,158,435 $ 8,549,013 $ Accounts receivable - - - - 58,876Due from other governments 107,943 - - - 147,879Interest receivable 545 - - 878 3,253Notes receivable 64,589 - 341,582 101,594 2,363,953 Total assets $ 64,589 1,582,883 $ 341,582 $ 2,260,907 $ 11,122,974 $

LIABILITIES
Accounts payable and accrued expense 8,280 $ - $ - $ 28,096 309,488 $ Due to other funds - 32,628 93,488 - 563,124Advance from other funds - - - 174,769 174,769 Total liabilities 32,628 8,280 93,488 202,865 1,047,381

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 64,589 - 341,582 101,594 2,363,953 Total deferred inflows of resources 64,589 - 341,582 101,594 2,363,953

FUND BALANCE
Restricted
Capital improvement projects - - - 1,956,448 1,956,448Circulation improvements 1,574,603 - - - 1,574,603Public safety programs - - - - 760,445Lighting, landscape & park maintenance - - - - 2,790,976Low-income housing activities - - - - 1,383,547 Unassigned (32,628) - (93,488) - (754,379)
Total fund balance 1,574,603 (32,628) (93,488) 1,956,448 7,711,640 $ 64,589 1,582,883 $ 341,582 $ 2,260,907 $ 11,122,974 $ Total liabilities, deferred inflows of resources and fund balance Special Revenue Funds
393
See accompanying notes. 56
CITY OF SOLEDAD COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 Maintenance Public Gas LEAP REAP
Districts Safety Tax Grant Grant
Revenue
Taxes and assessments 788,790 $ 57,417 $ - $ - $ - $
Licenses, permits and impact fees - - - - -
Intergovernmental - 13,840 675,122 - -
Interest 16,249 62,261 - - -
Loan repayments - - - - -
Other 29,509 - 22,569 - -
Total revenue 117,015 851,051 697,691 - -
Expenditures
Public works 456,979 - 849,102 120,754 -
Community development - - - - 165,128
Public Safety - 39,990 - - -
Parks and recreation - - - - -
Capital outlay - - 36,420 - -
Debt service
Interest - - - - -
Total expenditures 39,990 456,979 885,522 120,754 165,128 Revenue over (under) expenditures 394,072 77,025 (187,831) (120,754) (165,128) Other financing sources/(uses)
Operating transfers in/(out) - net - - 135,000 - -
- - 135,000 - -
Change in Fund Balance 77,025 394,072 (52,831) (120,754) (165,128) Fund Balance
Beginning of year 628,982 2,396,904 5,229 - -
End of year 2,790,976 $ 706,007 $ (47,602) $ (120,754) $ (165,128) $ Special Revenue Funds
394
See accompanying notes. 57
CITY OF SOLEDADCOMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 SB2 Planning
Low-Moderate Vehicle CDBG Land UseHousing Asset COVID Abatement Business Loans Element Grant Revenue
Taxes and assessments - $ - $ - $ - $ - $
Licenses, permits and impact fees - - - - -
Intergovernmental - 105,597 9,633 - -
Interest 396 32,706 1,021 - -
Loan repayments - - - - -
Other - - - - -
Total revenue 105,993 32,706 10,654 - -
Expenditures
Public works - - - - 3,970
Community development 7,530 - - 220,894 -
Public Safety - - - - -
Community services - 179,424 1,621 55,319 -
Capital outlay - - - - -
Debt service
Interest - - - - -
Total expenditures 7,530 179,424 1,621 276,213 3,970
Revenue over (under) expenditures 25,176 (73,431) 9,033 (276,213) (3,970) Other financing sources/(uses)
Operating transfers in/(out) - net 16,259 - - - -
- 16,259 - - -
Change in Fund Balance (57,172) 25,176 9,033 (276,213) (3,970) Fund Balance
Beginning of year 1,358,371 57,172.00 45,405 - (14,596) End of year 1,383,547 $ - $ 54,438 $ (276,213) $ (18,566) $ Special Revenue Funds
395
See accompanying notes. 58
CITY OF SOLEDADCOMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 Capital Projects Total
Fund Non-major
20-CDBG 20-CDBG Development Governmental
SB1 CV1-00058 12084 Impact Funds
Revenue
Taxes and assessments 616,008 $ - $ - $ - $ 1,462,215 $ Licenses, permits and impact fees - - - 1,243,343 1,243,343Intergovernmental - - - - 804,192Interest 464 34,017 2,790 58,880 208,784 Loan repayments - 2,948 14,043 - 16,991Other - - - - 52,078 Total revenue 3,412 650,025 16,833 1,302,223 3,787,603
Expenditures
Public works 173,086 - - - 1,603,891Community development - - 69,998 348,796 812,346Public Safety - - - - 39,990Community services - - - - 236,364Capital outlay - - - 811,210 847,630Debt service Interest - - - 6,681 6,681
Total expenditures - 173,086 69,998 1,166,687 3,546,902 Revenue over (under) expenditures 476,939 3,412 (53,165) 135,536 240,701 Other financing sources/(uses)
Operating transfers in/(out) - net - - - - 151,259
- - - - 151,259
Change in Fund Balance 3,412 476,939 (53,165) 135,536 391,960Fund Balance Beginning of year (36,040) 1,097,664 (40,323) 1,820,912 7,319,680 End of year 1,574,603 $ (32,628) $ (93,488) $ 1,956,448 $ 7,711,640 $ Special Revenue Funds
396
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Soledad, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City of Soledad (the “City”), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated June 4, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
397
60 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

June 4, 2024
398
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Soledad, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Soledad (the “City”), California’s 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, 2023. 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, 2023.

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.
399
62 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 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 judgment 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 include 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.

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 a 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.
400
63 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.

April 4, 2023
401
64 CITY OF SOLEDAD

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
Assistance Agency or
Federal Grantor/Pass-through Listing Pass-through Federal Grantor/Program Title Number Number Expenditures
U.S. Department of Housing and Urban Development
Passed through from the California Department of Housing and Community Development
Community Development Block Grant 14.228 N/A 105,597 $
U.S. Department of the Treasury
Passed through from United Way Monterey County
Coronavirus Relief Fund 21.019 N/A 346,213
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 1,738,547 Total Federal Expenditures $ 2,190,357
402
65 CITY OF SOLEDAD

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2023
Note 1 – Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Soledad, California (the City). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.

Note 2 – Basis of Accounting
The accompanying SEFA 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 Note 1 to the City’s basic financial statements. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presented in the basic financial statements
Note 3 – Relationship to the Financial Statements
Expenditures of federal awards are reported in the City’s basic financial statements as expenditures/expenses in the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.

Note 4 – Indirect Cost Rate
The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414. 403
66 CITY OF SOLEDAD

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
A. Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified

Internal control over financial reporting:
 Material weaknesses identified? Yes No
 Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported  Non-compliance material to financial
statements noted? Yes No
Federal Awards
Internal control over major programs:
 Material weaknesses identified? Yes No
 Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported Type of auditor’s report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.516(a)? Yes No
Identification of Major Programs
Assistance Listing Number Name of Federal Program or Cluster

21.027 Coronavirus State and Local Fiscal Recovery
Funds
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes No
B. Findings – Financial Statements Audit
None noted.

C. Findings and Questioned Costs – Major Federal Award Programs Audit None noted.
404
67 CITY OF SOLEDAD

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
YEAR ENDED JUNE 30, 2023
Summary Schedule of Prior Audit Findings
There were no prior year audit findings.
405

CITY OF SOLEDAD

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2023
406

TABLE OF

CONTENTS
Page
Required Communications 1 – 3
407
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 To the Honorable Mayor and City Council
City of Soledad, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Soledad for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated July 1, 2020. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Soledad are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2023. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance and consensus. All significant transactions have been recognized in the financial statements in the proper period.

We noted no transactions entered into by City of Soledad during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
408
2 Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated June 4, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City of Soledad’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
409
3 Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Soledad’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, Proportionate Share of Net Pension Liability, and Schedule of Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of City of Soledad and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
June 4, 2024
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BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 June 4, 2024
City of Soledad/Measure S and Measure Y Committee
248 Main Street
Soledad, CA 93960
Ladies and Gentlemen:

As part of our audit is the review of cash receipts and disbursements related to Measure S and Measure Y sales tax. In connection with the audit, we examined the Measure S and Measure Y remittances and expenditures noting that the activity had been accounted for in a separate Measure S and Measure Y department.

During our audit, we familiarized ourselves with the expenditure and budget guidelines set by the City Council and noted that current year expenditures were within these guidelines. Measure S and Measure Y revenues were $1,205,878 and $2,420,728, respectively.

Our initial conclusion is that Measure S and Measure Y cash receipts and disbursements have been accounted for in a proper manner which is consistent with the ordinance that authorized the Measure S and Measure Y general use tax.

Should you have any further questions relating to this or any other audit issue, please feel free to contact me at any time.

Sincerely,
Bryant L. Jolley, CPA
411
SUBJECT: Resolution No. 6102, a Resolution of the City Council of the City of Soledad Approving a Cooperation Agreement with the Department of the Army for P.L. 84-99 Rehabilitation of Federal Flood Control Work with City’s Share of Costs in the Amount of $703,698 Plus $50,000 for Construction Contingency for Repairs of the Levee Protecting Soledad’s Water Reclamation Facility from Flood Inundation from the Salinas River And Authorizing The City Manager to Execute Said Agreement on Behalf of the City of Soledad
TO: Honorable Mayor Velazquez and City Council
FROM: Donald Wilcox, Public Works Director
MEETING DATE: June 19, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 4.

Recommendation
Staff recommends that the City Council consider and adopt Resolution No. 6102, “Approving a Cooperation Agreement with The Department of the Army for P.L. 84-99 Rehabilitation of Federal Flood Control Work With City’s Share of Costs in the Amount of $703,698 plus $50,000 for Construction Contingency for Repairs of the Levee Protecting Soledad’s Water Reclamation Facility from Flood Inundation from the Salinas River and Authorizing the City Manager to Execute Said Agreement on Behalf of the City of Soledad.”
Executive Summary
The heavy intensity and duration of winter rains, Salinas River dam releases, and resultant high river flows during the winters of 22/23 and 23/24 have once again scoured the WRF levee requiring significant repair work. Similar damages were previously repaired pursuant to a $1.5M agreement between the City and the US Army Corps of Engineers (“USACE”) in 2022. Staff once again contacted the USACE requesting a levee repair project, and USACE staff visited the WRF levee in the spring of 2024 and agreed to a levee repair project under their P.L. 84-99 program. The current levee damages are more extensive than those addressed in the 2022 project, with an estimated cost of repair of $3,518,488. USACE will fund 80% of the cost of this project, with the City picking up the remaining 20% match.

Background
The City’s Water Reclamation Facility (WRF) is located adjacent to the Salinas River and is protected 412
from the river by an unclassified levee constructed by the California Department of Corrections (CDC) in 1998 when the CDC began discharging wastewater to the Soledad WWTP. The levee was designed to hold back relatively slow-rising, low-velocity water when the Salinas River swells during highintensity/long-duration rain events.

Since the levee was constructed, the Salinas River changed course so that the river channel moved from several hundred feet away from the levee to right up against the levee (see attached WRF levee photos), so the river began to flow along the levee instead of just slowly swelling up to it. In 2017, winter storms produced considerable flows in the river resulting in scouring velocity causing significant erosion of the levee, which was designed to withhold low or no flow swelling of the river, not scouring velocities of river water.

After the winter storms of 2017 caused significant erosion to the levee, City staff met with staff from the Federal Emergency Management Agency (FEMA) and the California Office of Emergency Services (Cal OES) for the purposes of requesting funding to properly armor the levee against erosion.

However, both agencies stated that the US Army Corp of Engineers (USACE) would need to review the damage and consider funding levee repairs. Staff then reached out to USACE with little success as USACE believed this to be a FEMA project through Cal OES. After 5 years and assistance from Congressman Jimmy Panetta, it was finally determined that the USACE could assist Soledad with this project.

The City of Soledad and USACE entered into an agreement in 2022 for an estimated $1.5M levee repair project, with the USACE funding 80% of the repairs and the City of Soledad matching the remaining 20%. That project was completed in December 2022, literally one day before heavy rains began that continued throughout that winter and were some of the heaviest rains and resultant river flows in the preceding 20 years.

The heavy intensity and duration of winter rains and Salinas River dam releases and resultant high river flows during the winters of 22/23 and 23/24 have once again scoured the WRF levee in additional areas, and new repairs are needed. Staff contacted USACE requesting another levee repair project, and USACE staff visited the WRF levee in the spring of 2024 and agreed to another levee repair project under their P.L. 84-99 program. The current levee damage is more extensive than damages addressed by the 2022 project, with repair work being estimated at a cost of $3,518,488. Fortunately, the USACE can once again fund 80% of the cost of this project.

City staff are also working on a FEMA Building Resilient Infrastructure and Communities (BRIC) program grant application in collaboration with a Cal OES funding application for the BRIC match, to fund a Guide Bank project that will prevent future levee damage by building a new guide levee capable of withstanding scouring to protect the existing levee. That project is estimated at $10-20M and is described in a separate agenda item.

Review & Analysis
Significant damage has once again occurred to the levee that protects the Soledad WRF from flooding.

The Soledad WRF elevation is actually lower than the base of the Salinas River, so the levee must be repaired to protect the facility from the river and the river from potential raw sewage contamination if the WRF is flooded and ceases to operate.

Staff has been working with USACE providing them with city documents & records, County Resource Conservation District Aerials and LiDAR drawings, and site visits as needed for USACE to design and 413
Resolution No. 6102
Exhibit A - USACE Draft Agreement- WRD Fac. Levee Repairs.pdf WRF Levee Photos
construct levee repairs. USACE now has a construction window of late summer or early fall 2024, and has requested the City of Soledad to enter into their attached Agreement so they can schedule the construction. It is extremely important to facilitate the levee repair project prior to the next big rain event as a significant rise and flow of the Salinas River could further undermine the levee and flood Soledad’s WRF.

Entering into this agreement with USACE as soon as possible is in the best interest of the City while the project is currently funded and scheduled in the USACE system, and to avoid delaying the project and resultant potential flooding of the WRF. Therefore, approval of the Resolution and Agreement is an urgent item.

Financial Considerations
USACE currently estimates the cost of this project to be $3,518,488 with a required 20% City match of $703,698. Due to uncertainties in construction costs due to Covid, labor and materials availability, fuel costs, etc., staff recommends a concurrent approval of $50,000 contingency. Any unused funds shall be sent back to the City if not expended. This project is listed in the proposed FY 24-25 CIP and was requested to be budgeted for in the proposed FY 24-25 budget under Wastewater Operations, Capital Projects 310-6100-5632.

Alternatives
Adopt the recommended resolution.

Do not approve the attached resolution. This is not recommended as there is potential for catastrophic damage to the WRF and environment without this project Provide Staff with alternate direction
Planning/CEQA
Repairs of the levee are categorically exempt per CEQA Guidelines §15301 and §15302. These repairs involve an existing public facility with no expansion of an existing or former use (CEQA §15301).

Reinforcement of the levee may also be considered replacement and reconstruction of an existing structure on the same site with the same purpose and capacity, which is exempt pursuant to CEQA §15302.

The USACE (Army Corps of Engineers) has determined that the levee is well above ordinary high water and falls under maintenance exemption of the Clean Water Act and would not require coordination with the USACE Regulatory Office to complete this repair and return the site to its prestorm condition.

Public Notice Requirements
None
Attachment(s):
414
RESOLUTION NO. 6102

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

APPROVING A COOPERATION AGREEMENT WITH THE DEPARTMENT OF THE ARMY FOR P.L. 84-99 REHABILITATION OF FEDERAL FLOOD CONTROL WORK WITH CITY’S SHARE OF COSTS IN THE AMOUNT OF $703,698 PLUS $50,000 FOR

CONSTRUCTION CONTINGENCY FOR REPAIRS OF THE LEVEE PROTECTING SOLEDAD’S WATER RECLAMATION FACILITY FROM FLOOD INUNDATION

FROM THE SALINAS RIVER AND AUTHORIZING THE CITY MANAGER TO

EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF SOLEDAD WHEREAS, the City’s Water Reclamation Facility (WRF) is located adjacent to the banks of the Salinas River and is protected by an unclassified levee constructed by the California Department of Corrections (CDC) in 1998 when the CDC began discharging wastewater to the Soledad WWTP; and
WHEREAS, in 2022, the City and the US Army Corps of Engineers (USACE) entered into a cooperation agreement by which the USACE performed a repair project for damages done to WRF’s protective levee by intense rainfall, Salinas River dam releases, and resulting high river flows; and
WHEREAS, the heavy intensity and duration of winter rains and Salinas River dam releases and resultant high river flows during the winters of 22/23 and 23/24 have once again scoured the WRF levee in additional areas, and repairs are once again needed; and WHEREAS, staff contacted USACE requesting another levee repair project, and USACE staff visited the WRF levee in the spring of 2024 and agreed to another levee repair project under their P.L. 84-99 program; and
WHEREAS, USACE now has a construction window of late summer or early fall 2024, and has requested the City of Soledad to enter into their attached Agreement so they can schedule the construction; and
WHEREAS, USACE currently estimates the cost of this project to be $3,518,488 with a required 20% City match of $703,698; and
WHEREAS, due to uncertainties in construction costs due to Covid, labor and materials availability, fuel costs, etc., staff recommends a concurrent approval of $50,000 contingency; and WHEREAS, repairs of the levee are categorically exempt per CEQA Guidelines §15301 and §15302, these repairs involve an existing public facility with no expansion of an existing or former use (CEQA §15301), and reinforcement of the levee may also be considered replacement and reconstruction of an existing structure on the same site with the same purpose and capacity, which is exempt pursuant to CEQA §15302; and
415
WHEREAS, the USACE (Army Corps of Engineers) has determined that the levee is well above ordinary high water and falls under maintenance exemption of the Clean Water Act and would not require coordination with the USACE Regulatory Office to complete this repair and return the site to its pre-storm condition; and
WHEREAS, funding for this project was requested to be budgeted for in the proposed FY 24-25 budget under Wastewater Operations, Capital Projects 310-6100-5632.

BE IT HEREBY RESOLVED by the City Council of the City of Soledad, that a Cooperation Agreement with The Department of the Army for Rehabilitation of a Federal Flood Control Work, with City’s share in the Amount of $703,698 with $50,000 for construction contingency, for repairs of the levee protecting Soledad’s Water Reclamation Facility from flood inundation from the Salinas River, a copy of which is attached hereto as Exhibit A, and by reference incorporated herein, is hereby approved and the City Manager is hereby authorized and directed to execute the same on behalf of the City of Soledad.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 19th day of June 2024 by the following vote:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
416

COOPERATION AGREEMENT

BETWEEN

THE DEPARTMENT OF THE ARMY
AND

CITY OF SOLEDAD
FOR
P.L. 84-99 REHABILITATION OF FEDERAL FLOOD CONTROL WORK

THIS AGREEMENT is entered into this ____ day of June 2024, by and between the Department of the Army (hereinafter the “Government”), represented by the District Commander for San Francisco District (hereinafter the “District Commander”) and the City of Soledad (hereinafter the “Public Sponsor”), represented by its Executive Director.

WITNESSETH, THAT:

WHEREAS, the non-Federal flood risk management project commonly referred to as the Soledad Wastewater Treatment Plant (hereinafter the “project”), is located on Morisoli Road off HWY 146 in CITY OF SOLEDAD, MONTEREY COUNTY, CA;
WHEREAS, pursuant to Public Law 84-99, as amended (33 U.S.C. 701n), the Government is authorized to conduct repair or restoration of the project (hereinafter the “rehabilitation work”, as defined in Article I.A. of this Agreement) if the Public Sponsor agrees to provide 20 percent of the cost shared rehabilitation costs, as defined in Article I.C. of this Agreement;
WHEREAS, on 17 March 2023, the Public Sponsor requested in writing that the Government, undertake the rehabilitation work and agreed to provide its 20 percent of the cost shared rehabilitation costs; and
WHEREAS, the Government and the Public Sponsor have the full authority and capability to perform the rehabilitation work in accordance with the terms of this Agreement and acknowledge that Section 221 of the Flood Control Act of 1970, as amended (42 U.S.C. 1962d5b), provides that this Agreement shall be enforceable in the appropriate district court of the United States.

NOW, THEREFORE, the parties agree as follows:

ARTICLE I - DEFINITIONS
A. The term “rehabilitation work” means repairing and restoring damages from the CA Winter Storms on the Soledad Wastewater Treatment Plant Levee on the Salinas River, as generally described in P.L. 84-99 Soledad Wastewater Treatment Plant Levee Damages - Addendum, dated 26 February 2024 and approved by the Chief of Readiness and Contingency from the South Pacific Division on 04 March 2024 417
2 B. The term “HTRW” means hazardous, toxic, and radioactive wastes, which includes any material listed as a “hazardous substance” (42 U.S.C. 9601(14)) regulated under the Comprehensive Environmental Response, Compensation, and Liability Act (hereinafter “CERCLA”) (42 U.S.C. 9601-9675) and any other regulated material in accordance with applicable laws and regulations.

C. The term “cost shared rehabilitation costs” means all costs incurred by the Government and the Public Sponsor that are directly related to construction of the rehabilitation work and cost shared. The term includes the Government’s construction costs; the Government’s supervision and administration costs; the Public Sponsor’s creditable cost for inkind contributions; and the costs of historic preservation activities except for data recovery for historic properties. The term does not include the Government’s Full Federal engineering and design (E&D) costs; costs for operation and maintenance; real property interests, placement area improvements, and relocations; HTRW investigations, cleanup, and response; betterments; audits; or increased costs to correct deficient, deferred, or inadequate maintenance, or for the Public Sponsor’s preferred alternatives.

D. The term “Full Federal E&D costs” means the costs for engineering and design work incurred by the Government after the effective date of this Agreement at full Federal expense.

E. The term “total costs of the rehabilitation work” means the sum of the cost shared rehabilitation costs and the Full Federal E&D costs.

F. The term “in-kind contributions” means those materials or services provided by the Public Sponsor that are identified as being integral to the rehabilitation work by the Division Commander for South Pacific Division (hereinafter the “Division Commander”). To be integral to the rehabilitation work, the material or service must be part of the work that the Government would otherwise have undertaken for design and construction of the rehabilitation work.

G. The term “betterment” means the difference in construction of an element of the rehabilitation work that results from the application of standards that the Government determines exceed those that the Government would otherwise apply to construction of that element.

H. The term “fiscal year” means one year beginning on October 1st and ending on September 30th of the following year.

ARTICLE II - OBLIGATIONS OF THE PARTIES
A. In accordance with applicable Federal laws, regulations, and policies, the Government shall undertake the rehabilitation work subject to receiving funds appropriated by the Congress and funds provided by the Public Sponsor. In carrying out its obligations under this Agreement, the Public Sponsor shall comply with all the requirements of applicable Federal laws and implementing regulations, including but not limited to, if applicable, Section 601 of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d), and Department of Defense Directive 418
3 5500.11 issued pursuant thereto; the Age Discrimination Act of 1975 (42 U.S.C. 6102); and the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), and Army Regulation 600-7 issued pursuant thereto.

B. The Public Sponsor shall contribute 20 percent of the cost shared rehabilitation costs and provide the following, in accordance with the provisions of this paragraph:

1. As further specified in Article III, the Public Sponsor, at no cost to the Government, shall provide the real property interests, placement area improvements, and relocations required for the rehabilitation work.

2. In accordance with Article IV, the Public Sponsor, at no cost to the Government, shall be responsible for undertaking any HTRW investigations required by the Government for the rehabilitation work.

3. If providing in-kind contributions as a part of its cost share for the rehabilitation work, the Public Sponsor shall obtain all applicable licenses and permits necessary for such work. As functional portions of the work are completed, the Public Sponsor shall begin operation and maintenance of such work. Upon completion of the work, the Public Sponsor shall so notify the Government within 30 calendar days and provide the Government with a copy of as-built drawings for the work. The Government shall verify and credit the value of the inkind contributions towards the Public Sponsor’s share of the cost shared rehabilitation costs in accordance with the following procedures, requirements, and conditions and subject to audit in accordance with Article VIII.B. to determine reasonableness, allocability, and allowability of costs.
a. The value shall be equivalent to the costs, documented to the satisfaction of the Government, that the Public Sponsor incurred to provide the in-kind contributions, which may include engineering and design; construction; and supervision and administration, but shall not include any costs associated with betterments, as determined by the Government. Appropriate documentation includes invoices and certification of specific payments to contractors, suppliers, and the Public Sponsor’s employees. b. No credit shall be afforded for the following: interest charges, or any adjustment to reflect changes in price levels between the time the in-kind contributions are completed and credit is afforded; the value of in-kind contributions obtained at no cost to the Public Sponsor; any in-kind contributions performed prior to the effective date of this Agreement; or costs that exceed the Government’s estimate of the cost for such in-kind contributions.
c. Any credit afforded for in-kind contributions under the terms of this Agreement is subject to satisfactory compliance with applicable Federal labor laws covering non-Federal construction, including, but not limited to, 40 U.S.C. 3141-3148 and 40 U.S.C. 3701-3708 (labor standards originally enacted as the Davis-Bacon Act, the Contract Work Hours and Safety Standards Act, and the Copeland Anti-Kickback Act), and credit may be withheld, in 419
4 whole or in part, as a result of the Public Sponsor’s failure to comply with its obligations under these laws.

4. After considering the estimated amount of credit that will be afforded to the Public Sponsor pursuant to paragraph B.3., above, if any, the Government shall determine the estimated amount of funds required from the Public Sponsor to meet its 20 percent cost share for the then-current fiscal year. No later than 60 calendar days after receipt of notification from the Government, the Public Sponsor shall provide the full amount of such required funds to the Government in accordance with Article V.C.

5. No later than August 1st prior to each subsequent fiscal year, the Government shall provide the Public Sponsor with a written estimate of the full amount of funds required from the Public Sponsor during that fiscal year to meet its cost share. No later than September 1st prior to that fiscal year, the Public Sponsor shall provide the full amount of such required funds to the Government in accordance with Article V.C.

C. To the extent practicable and in accordance with Federal law, regulations, and policies, the Government shall afford the Public Sponsor the opportunity to review and comment on contract solicitations, including relevant plans and specifications, prior to the Government’s issuance of such solicitations; proposed contract modifications, including change orders; and contract claims prior to resolution thereof. Ultimately, the contents of solicitations, award of contracts, execution of contract modifications, and resolution of contract claims shall be exclusively within the control of the Government.

D. Within 30 calendar days of the District Commander determining that the rehabilitation work is complete, the District Commander shall so notify the Public Sponsor in writing. The Government shall furnish the Public Sponsor with an Operation, Maintenance, Repair, Rehabilitation, and Replacement Manual (hereinafter the “OMRR&R Manual”) to reflect changed conditions resulting from rehabilitation work and copies of all as-built drawings for the completed work.

1. The Government undertaking the rehabilitation work has no effect on the Public Sponsor’s responsibility for operation, maintenance, repair, rehabilitation, and replacement of the project, to include any additional responsibilities related to rehabilitation of the project, at no cost to the Government. The Public Sponsor shall continue to operate and maintain the project in accordance with applicable Federal laws and regulations and the Government’s specific directions in the OMRR&R Manual. The Government and the Public Sponsor shall consult on any subsequent updates or amendments to the OMRR&R Manual.

2. The Government may enter, at reasonable times and in a reasonable manner, upon real property interests that the Public Sponsor now or hereafter owns or controls to inspect the project. If the Government determines that the Public Sponsor is failing to perform its obligations under this Agreement and the Public Sponsor does not correct such failures within a reasonable time after notification by the Government, the Government, at its sole discretion, may undertake any operation, maintenance, repair, rehabilitation, or replacement of the project, or deny further assistance under Public Law 84-99. No operation, maintenance, repair, 420
5 rehabilitation, or replacement by the Government shall relieve the Public Sponsor of its obligations under this Agreement or preclude the Government from pursuing any other remedy at law or equity to ensure faithful performance of this Agreement.

E. The Public Sponsor shall not use Federal program funds to meet any of its obligations under this Agreement unless the Federal agency providing the funds verifies in writing that the funds are authorized to be used for the rehabilitation work. Federal program funds are those funds provided by a Federal agency, plus any non-Federal contribution required as a matching share therefor.

F. The Public Sponsor shall hold and save the Government free from all damages arising from the rehabilitation work, and for operation and maintenance of the project, except for damages due to the fault or negligence of the Government or the Government's contractors.

G. The Public Sponsor agrees to continue to participate in and comply with the policies and procedures of the U.S. Army Corps of Engineers Rehabilitation and Inspection Program, and of Title 33, Code of Federal Regulations, Part 208.10 (33 CRF 208.10).

H. The Public Sponsor may request in writing that the Government perform betterments on the Public Sponsor’s behalf. Each request shall be subject to review and written approval by the Division Commander. If the Government agrees to such request, the Government shall provide written notice to the Public Sponsor of the amount of funds required to cover the costs of such work in advance of the Government performing the work. The Public Sponsor shall provide such funds in accordance with Article V.F. In addition, the Public Sponsor is responsible for providing, at no cost to the Government, any additional real property interests, relocations, and placement area improvements determined by the Government to be required for such work.

ARTICLE III - REAL PROPERTY INTERESTS, PLACEMENT AREA IMPROVEMENTS,

AND RELOCATIONS
A. The Government, after consultation with the Public Sponsor, shall determine the real property interests required for the rehabilitation work. The Government shall provide the Public Sponsor with general written descriptions, including maps as appropriate, of the real property interests that the Government determines the Public Sponsor must provide for the rehabilitation work. The real property interests required for the rehabilitation work may be provided incrementally for each construction contract. In accordance with Article IV, the Public Sponsor shall investigate to verify that HTRW does not exist in, on, or under any of the real property interests required for the rehabilitation work. For real property interests currently owned or controlled by the Public Sponsor, such HTRW investigations must be completed prior to the Government advertising a construction contract for that work. For any additional real property interests to be acquired by the Public Sponsor, such HTRW investigations must be completed by the Public Sponsor prior to the Government providing the Public Sponsor with a written notice to proceed with that acquisition. The Public Sponsor shall provide the Government with authorization for entry to such real property interests according to the Government’s construction 421
6 schedule for that work. The Public Sponsor shall ensure that real property interests they provide are retained in public ownership.

B. The Government, after consultation with the Public Sponsor, shall determine the placement area improvements required for the rehabilitation work, provide the Public Sponsor with general written descriptions, including maps as appropriate, of such improvements, and provide the Public Sponsor with a written notice to proceed with such improvements. The Public Sponsor shall construct the improvements in accordance with the Government’s construction schedule for that work.

C. The Government, after consultation with the Public Sponsor, shall determine the relocations required for the rehabilitation work, provide the Public Sponsor with general written descriptions, including maps as appropriate, of such relocations, and provide the Public Sponsor with a written notice to proceed with such relocations. The Public Sponsor shall perform or ensure the performance of these relocations in accordance with the Government’s construction schedule for that work.

D. In acquiring the real property interests for the rehabilitation work, the Public Sponsor assures the Government that it will comply with the following:
(1) fair and reasonable relocation payments and assistance shall be provided to or for displaced persons, as are required to be provided by a Federal agency under 42 U.S.C. 4622, 4623 and 4624;
(2) relocation assistance programs offering the services described in 42 U.S.C. 4625 shall be provided to such displaced persons;
(3) within a reasonable period of time prior to displacement, comparable replacement dwellings will be available to displaced persons in accordance with 42 U.S.C. 4625(c)(3);
(4) in acquiring real property, the Public Sponsor will be guided, to the greatest extent practicable under State law, by the land acquisition policies in 42 U.S.C. 4651 and the provisions of 42 U.S.C. 4652; and
(5) displaced persons will be paid or reimbursed for necessary expenses as specified in 42 U.S.C. 4653 and 4654.

ARTICLE IV - HTRW
A. The Public Sponsor shall be responsible for undertaking any investigations to identify the existence and extent of any HTRW regulated under applicable law that may exist in, on, or under real property interests required for the rehabilitation work. 422
7 B. In the event it is discovered that HTRW exists in, on, or under any of the real property interests needed for the rehabilitation work, the Public Sponsor and the Government shall provide written notice to each other within 15 calendar days of such discovery, in addition to providing any other notice required by applicable law. If HTRW is discovered prior to acquisition, the Public Sponsor shall not proceed with the acquisition of such real property interests until the parties agree that the Public Sponsor should proceed. If HTRW is discovered in, on, or under real property interests that the Public Sponsor currently owns or controls or after acquisition of the real property interests, no further rehabilitation activities within the contaminated area shall proceed until the parties agree on an appropriate course of action.

C. If HTRW is found to exist in, on, or under any required real property interests, the parties shall consider any liability that might arise under applicable law and determine whether to initiate construction, or if already initiated, whether to continue, suspend, or terminate construction.

1. Should the parties initiate or continue construction, the Public Sponsor shall be solely responsible, as between the Government and the Public Sponsor, for the performance and costs of HTRW cleanup and response, including the costs of any studies and investigations necessary to determine an appropriate response to the contamination. The Public Sponsor shall pay such costs without reimbursement or credit by the Government. In no event will the Government proceed with that construction before the Public Sponsor has completed the required cleanup and response actions.

2. In the event the parties cannot reach agreement on how to proceed or the Public Sponsor fails to discharge its responsibilities under this Article upon direction by the Government, the Government may suspend or terminate construction. Additionally, the Government may undertake any actions it determines necessary to avoid a release of such HTRW with the Public Sponsor responsible for such costs without credit or reimbursement by the Government.

D. In the event of a HTRW discovery, the Public Sponsor and the Government shall initiate consultation with each other within 15 calendar days in an effort to ensure that responsible parties bear any necessary cleanup and response costs as required by applicable law.

Any decision made pursuant to this Article shall not relieve any third party from any HTRW liability that may arise under applicable law.

E. To the maximum extent practicable, the Government and Public Sponsor shall perform their responsibilities under this Agreement in a manner that will not cause HTRW liability to arise under applicable law.

F. As between the Government and the Public Sponsor, the Public Sponsor shall be considered the owner and operator of the project, including the rehabilitation work, for purposes of CERCLA liability or other applicable law.

ARTICLE V - PROVISION OF NON-FEDERAL COST SHARE
423
8 A. As of the effective date of this Agreement, the total rehabilitation costs are projected to be $3,518,488, which includes the cost shared rehabilitation costs and the Full Federal E&D costs. The cost shared rehabilitation costs are projected to be $3,518,488, with the Government’s share of such costs projected to be $2,814,791 and the Public Sponsor’s share of such costs projected to be $703,698, which includes creditable in-kind contributions projected to be $________, and the amount of funds required projected to be $703,698. The Government’s Full Federal E&D costs are projected to be $173,041. Costs for betterments are projected to be $0.

These amounts are estimates only that are subject to adjustment by the Government and are not to be construed as the total financial responsibilities of the Government and the Public Sponsor.

B. The Government shall provide the Public Sponsor with [Insert “quarterly” or “monthly”, based on Public Sponsor’s preference] financial reports setting forth the estimated cost shared rehabilitation costs and the Government’s and Public Sponsor’s estimated shares of such costs; costs incurred by the Government, using both Federal and Public Sponsor funds, to date; the amount of funds provided by the Public Sponsor to date; the estimated amount of any creditable in-kind contributions; and the estimated amount of funds required from the Public Sponsor during the upcoming fiscal year.

C. The Public Sponsor shall provide the funds required to meet its share of the cost shared rehabilitation costs by delivering a check payable to “FAO, USAED, San Francisco (L3)” to the District Commander, or verifying to the satisfaction of the Government that the Public Sponsor has deposited such required funds in an escrow or other account acceptable to the Government, with interest accruing to the Public Sponsor, or by providing an Electronic Funds Transfer of such required funds in accordance with procedures established by the Government.

D. The Government shall draw from the funds provided by the Public Sponsor to cover the non-Federal share of cost shared rehabilitation costs as those costs are incurred. If the Government determines at any time that additional funds are needed from the Public Sponsor to cover the Public Sponsor’s required share of such rehabilitation costs, the Government shall provide the Public Sponsor with written notice of the amount of additional funds required.

Within 60 calendar days from receipt of such notice, the Public Sponsor shall provide the Government with the full amount of such additional required funds.

E. Upon completion or termination of construction of the rehabilitation work, the Government shall conduct a final accounting and furnish the Public Sponsor with the written results of such final accounting. Should the final accounting determine that additional funds are required from the Public Sponsor, the Public Sponsor, within 60 calendar days of receipt of written notice from the Government, shall provide the Government with the full amount of such additional required funds by delivering a check payable to “FAO, USAED, San Francisco (L3)” to the District Commander, or by providing an Electronic Funds Transfer of such funds in accordance with procedures established by the Government. Such final accounting does not limit the Public Sponsor's responsibility to pay its share of rehabilitation costs, including contract claims or any other liability that may become known after the final accounting. If the final accounting determines that funds provided by the Public Sponsor exceed the amount of funds required to meet its share of rehabilitation costs, the Government shall refund such excess amount, subject to the availability of funds for the refund. 424
9 F. If the Government agrees to perform betterments on the Public Sponsor’s behalf, the Government shall provide written notice to the Public Sponsor of the amount of funds required to cover such costs. No later than 60 calendar days after receipt of such written notice, the Public Sponsor shall make the full amount of such required funds available to the Government through either payment method specified in Article V.E. If at any time the Government determines that additional funds are required to cover such costs, the Public Sponsor shall provide those funds within 30 calendar days from receipt of written notice from the Government.

If the Government determines that funds provided by the Public Sponsor exceed the amount that was required for the Government to complete such work, the Government shall refund any remaining unobligated amount.

ARTICLE VI - DISPUTE RESOLUTION
As a condition precedent to a party bringing any suit for breach of this Agreement, that party must first notify the other party in writing of the nature of the purported breach and seek in good faith to resolve the dispute through negotiation. If the parties cannot resolve the dispute through negotiation, they may agree to a mutually acceptable method of non-binding alternative dispute resolution with a qualified third party acceptable to the parties. Each party shall pay an equal share of any costs for the services provided by such a third party as such costs are incurred.

The existence of a dispute shall not excuse the parties from performance pursuant to this Agreement.

ARTICLE VII - TERMINATION OR SUSPENSION
A. If at any time the Public Sponsor fails to fulfill its obligations under this Agreement, the Government may suspend or terminate construction unless the Assistant Secretary of the Army (Civil Works) determines that continuation of such work is in the interest of the United States or is necessary in order to satisfy agreements with other non-Federal interests.

B. If the Government determines at any time that the Federal funds made available for the rehabilitation work are not sufficient to complete such work, the Government shall so notify the Public Sponsor in writing within 30 calendar days, and upon exhaustion of such funds, the Government shall suspend construction until there are sufficient funds appropriated by Congress and funds provided by the Public Sponsor to allow construction to resume.

C. If HTRW is found to exist in, on, or under any required real property interests, the parties shall follow the procedures set forth in Article IV.

D. In the event of termination, the parties shall conclude their activities relating to the rehabilitation work. To provide for this eventuality, the Government may reserve a percentage of available funds as a contingency to pay the costs of termination, including any costs of resolution of real property acquisition, resolution of contract claims, and resolution of contract modifications.
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10 E. Any suspension or termination shall not relieve the parties of liability for any obligation incurred. Any delinquent payment owed by the Public Sponsor pursuant to this Agreement shall be charged interest at a rate, to be determined by the Secretary of the Treasury, equal to 150 per centum of the average bond equivalent rate of the 13 week Treasury bills auctioned immediately prior to the date on which such payment became delinquent, or auctioned immediately prior to the beginning of each additional 3 month period if the period of delinquency exceeds 3 months.

ARTICLE VIII - MAINTENANCE OF RECORDS AND AUDITS
A. The parties shall develop procedures for the maintenance by the Public Sponsor of books, records, documents, or other evidence pertaining to costs and expenses for a minimum of three years after the final accounting. The Public Sponsor shall assure that such materials are reasonably available for examination, audit, or reproduction by the Government.

B. The Government may conduct, or arrange for the conduct of, audits of the rehabilitation work. Government audits shall be conducted in accordance with applicable Government cost principles and regulations. The Government’s costs of audits shall not be included in rehabilitations costs.

C. To the extent permitted under applicable Federal laws and regulations, the Government shall allow the Public Sponsor to inspect books, records, documents, or other evidence pertaining to costs and expenses maintained by the Government, or at the Public Sponsor’s request, provide to the Public Sponsor or independent auditors any such information necessary to enable an audit of the Public Sponsor’s activities under this Agreement. The Public Sponsor shall pay the costs of non-Federal audits without reimbursement or credit by the Government.

ARTICLE IX - RELATIONSHIP OF PARTIES
In the exercise of their respective rights and obligations under this Agreement, the Government and the Public Sponsor each act in an independent capacity, and neither is to be considered the officer, agent, or employee of the other. Neither party shall provide, without the consent of the other party, any contractor with a release that waives or purports to waive any rights a party may have to seek relief or redress against that contractor.

ARTICLE X - NOTICES
A. Any notice, request, demand, or other communication required or permitted to be given under this Agreement shall be deemed to have been duly given if in writing and delivered personally or mailed by registered or certified mail, with return receipt, as follows:
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11 If to the Public Sponsor:

Public Works Director
City of Soledad
248 Main Street
Soledad, California 93960
If to the Government:

District Commander
U.S. Army Corps of Engineers, San Francisco District
450 Golden Gate Avenue
San Francisco, California 94102
B. A party may change the recipient or address to which such communications are to be directed by giving written notice to the other party in the manner provided in this Article.

ARTICLE XI - CONFIDENTIALITY
To the extent permitted by the laws governing each party, the parties agree to maintain the confidentiality of exchanged information when requested to do so by the providing party.

ARTICLE XII - THIRD PARTY RIGHTS, BENEFITS, OR LIABILITIES Nothing in this Agreement is intended, nor may be construed, to create any rights, confer any benefits, or relieve any liability, of any kind whatsoever in any third person not a party to this Agreement.

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12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, which shall become effective upon the date it is signed by the District Commander.

DEPARTMENT OF THE ARMY CITY OF SOLEDAD
BY: __________________________ BY: ____________________________

TIMOTHY SHEBESTA MEGAN HUNTER
Lieutenant Colonel, U.S. Army City Manager
District Commander City of Soledad
DATE: _________________________ DATE: __________________________ 428

WATER RECLAMATION FACILITY LEVEE PHOTOS
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