SOUTH GATE CITY COUNCIL; SOUTH GATE HOUSING
AUTHORITY; SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SOUTH GATE;
SOUTH GATE UTILITY AUTHORITY; AND SOUTH GATE PUBLIC
FINANCE AUTHORITY SPECIAL JOINT MEETING AGENDA
SPECIAL JOINT MEETING AGENDA
Thursday, February 23, 2023 at
5:00 p.m.
AMENDED
SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
DIAL-IN-NUMBER: 1 (669) 900-6833
MEETING ID: 828 1623 3541
HTTPS://US02WEB.ZOOM.US/J/82816233541
Call to Order/Roll Call
CALL TO ORDER:
Maria del Pilar Avalos, Mayor/Chairperson
ROLL CALL:
Yodit Glaze, City Clerk/Recording Secretary
Council Members/Agency Members
MAYOR/CHAIRPERSON CITY CLERK/RECORDING SECRETARY Maria del Pilar Avalos Yodit Glaze
VICE MAYOR/CHAIRPERSON CITY ATTORNEY/AUTHORITY COUNSEL Gil Hurtado Raul F. Salinas
COUNCIL/AUTHORITY/
AGENCY MEMBERS CITY MANAGER/EXECUTIVE DIRECTOR Joshua Barron Chris Jeffers Maria Davila (Participating via teleconference)
Al Rios
1 Meeting Schedule
The regular meetings of the Authority Members are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.
Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.
City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.
Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Authority Members not to the members of the public.
Meeting Compensation Disclosure
Pursuant to Government Code Section 54952.3: Disclosure of compensation for meeting attendance by City Council is $790 monthly and the Authority Members is $75.00 per meeting regardless of the amount of meetings.
Open Session Agenda
1. Official Vote considering Thomas Bekele for All Cities Appointed Central Basin Municipal Water
District Director Position (City Council)
The City Council will consider authorizing the City Manager to submit the City's vote for
Thomas Bekele, Director of Public Works for the City of Signal Hill, to fill the vacant
Appointed Central Basin Municipal Water District Director position. (CM) Documents:
Item 1 Report 02232023.pdf
2. Mid-year Budget Report for Fiscal Year 2022-23 (Joint City Council, Successor Agency, Housing
Authority, Utility Authority, and Public Finance Authority
The City Council, South Gate Housing Authority and the
Successor Agency to the
Community Development Commission of the City of South Gate will consider: (ADMIN
SVCS)
a. Updating the Fiscal Year 2022-23 Adopted Budget by accepting June 30, 2022, ending 2 fund balances as depicted in Attachment A; and
b. Modifying the Fiscal Year 2022-23 Adopted Budget and approving the additional appropriations and adjustments as recommended in this report and as outlined in Attachment B and C with any additional changes approved by City Council; and
c. Approving a Grant Agreement with the U.S. Environmental Protection Agency for full federal funding in the amount of $500,000 to inventory, characterize, assess, and conduct cleanup planning and community involvement related activities; and
d. Authorizing the Mayor to execute the Grant Agreement in a form acceptable to the City Attorney.
Documents:
Item 2 Report 02232023.pdf
Mid-Year Report Presentation.pdf
Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on February 16, 2023, at 11:32 a.m., as required by law.
Yodit Glaze
City Clerk
GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.
MEETING SCHEDULE
Regular meetings of the Housing Authority are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:
City
Clerk's Office,
Public Notice Boards at City Hall, and on the
City’s web page at
https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.
3 PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.
Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.
Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the Housing Authority as a body.
To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.
CURFEW
In absence of a motion duly adopted by majority vote of the Housing Authority, the Presiding Officer may adjourn the Housing Authority meetings at 10:30 p.m. The Presiding Officer may ask the Housing Authority if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the Housing Authority can direct the item be placed on the next Housing Authority agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the Housing Authority and action upon the published agenda continued.
STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular Housing Authority meeting and a minimum of 24-hours prior to a Housing Authority meeting. There are times when the housing Authority receives written material, revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.
SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the Housing Authority Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the Housing Authority Meeting will enable the City to make reasonable arrangements to assure accessibility.
For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
4 Item No. 1
cb"txwt*b:h:;'r"t-CityofSouthGate
FEB 14 2023 CITY COUNCIL
,,2: :30fvz AGENDA PJLL
For the Special Meeting of: February 23, 2023
Originating Department: City Manager's Office
Ciffl Manager:
Chris Jeffers
City Manager:
Chris Je.ffers
SUBJECT: OFFICIAL VOTE FOR CANDIDATE TO SERVE ON THE BOARD OF DIRECTORS OF THE CENTRAL BASIN M{JNICIPAL WATER DISTRICT PURPOSE: To consider and vote for an eligible candidate to fill the vacant "All Cities" Appointed Central Basin Director position to represent municipal cities.
RECOMMENDED ACTION: The City Council will consider authorizing the City Manager to submit the City's vote for Thomas Bekele, Director of Public Works for the City of Signal Hill, to fill the vacant Appointed Central Basin Municipal Water District Director position.
FISCAL IMPACT: None.
ANALYSIS: As a member of the Central Basin Municipal Water District ("CBMWD"), the City has the oppoitunity to officially vote for CBMWD appointed positions. The "All Cities" Appointed Central Basin Director ("All Cities Director") seat is currently vacant. On February 9, 2023, the CBMWD announced that two candidates were nominated: Thomas Bekele, Director of Public Works from the City of Signal Hill and Efren Martinez, a consultant representing the City of Huntington Park.
Thomas Bekele is qualified and willing to serve on the CBMWD Board to advocate for City Water Purveyors. He is a city employee with the City of Signal Hill (Director of Public Works) and is licensed as a Professional Engineer in the State of Califoinia. Mr. Bekele has experience managing capital improvement projects and has technical expertise in the water field. He currently oversees the Municipal Water System for the City of Signal Hill; therefore, he is familiar with water systems, operations and maintenance, and water quality requirements.
BACKGRO{JND: Established in 1952, the CBMWD is a water wholesaler that provides imported water to 40 retail water providers and one water wholesaler including: cities, mutual water companies, investor-owned utilities, and private companies in southeast Los Angeles County. The CBMWD purchases imported water from the Metropolitan Water District of Southern Califomia. The City is located within the CBMWD's service area; however, it has not l
5 had the need to purchase imported water since 1990. The City relies entirely on groundwater to serve the community.
The CBMWD is govetned by a Board of Directors currently made up of five elected officials and three appointed officials. Elected Directors are voted in by the general public through an election process to a four-year ternn and receive a stipend for participating on the Board of Directors. Appointed Directors are selected by water purveyors to a four-year ternn. Under state law, Appointed Director seats must be filled by non-elected individuals with technical knowledge and experience in the water industry. They do not receive a stipend. Compensation for their time spent on board activities is the responsibility of their employer.
There are three seats on the Board designated for Appointed Directors - All Cities seat, Large Water Purveyors seat and All Water Purveyors seat. Their role is generally the same in representing water purveyor groups. They guide decision-making by the Board through a technical understanding of CBMWD's projects and programs. As a City and a water purveyor, the City may cast a vote for the All Cities Director seat and the All Water Purveyor's seat.
The All Cities Director seat is currently vacant and in the process of being filled. The CBMWD has formally provided member agencies a ballot to vote for two candidates to fill the vacant seat.
Two eligible individuals were nominated; Thomas Bekele and Efren Martinez.
If the City Council wishes to cast a vote for Thomas Bekele or Efren Martinez, the ballot must be returned by noon on Monday 27, 2023. There is no requirement that a member agency cast a ballot for any candidate. The CBMWD process does not accept any write-in nominations.
Should the City Council decide to cast a ballot, the City Manager would be responsible for completing the official ballot and returning it to the CBMWD prior to the deadline.
ATTACHMENT: Letter from CBMWD providing Eligible Candidate List, Appointed Director's Ballot Schedule, and Official Ballot
CJ/CC:lc
2 6
Central Basin
Municipal Water District
Date: February 9, 2023
To: Central Basin MWD Water Purveyors
Subject: Eligible Candidates for Appointed Central Basin Director The Central Basin Municipal Water District (Central Basin) opened nominations for Appointed Directors at the February 8, 2023, Special Purveyor Workshop. Nominated candidates where:
All Cities: 1. Thomas Bekele
Director of Public Works
City of Signal Hill
2. Efren Martinez
Consultant
Please return your ballot even if there is only one candidate. A pre-paid return FedEx envelope has been included and is due back to Central Basin no later than noon on Monday February 27, 2023.
Results will be opened at a Special Purveyor Workshop upon receipt of all Voting Ballot forms.
The Director filling the vacancy will be appointed at a Special Purveyor Workshop affer all ballots are counted and certified.
If you have any questions, please contact me at (323) 895-6185 or via email at [email protected]
If you have any questions on the process, please contact me via email at alexr@centra!basin.org or via phone at (323) 201-5548.
7 Appointed Director's
Ballot Schedule
* Voting Ballot Forms
1. District will FedEx Ballot Forms on Thursday, February 9, 2023 to be delivered to the Purveyor on Monday, February 13, 2023.
2. Signature will be required.
3. upon receipt of the Ballot Forms, Purveyors must return the ballots no later than noon on Monday, February 27, 2023.
4. To return the Ballot Form, please use reusable FedEx Envelope. A pre-paid return FedEx slip will be included.
ii Must call FedEx to schedule a pick-up or drop off envelope at designated FedEx Location.
ii Call 1-800-463-3339 and follow automated instructions.
5. Purveyors must return the Ballot Form in a sealed envelope no later than noon on Monday February 27, 2023. Please DO NOT EMAIL.
* Results:
1. Results will be opened at a Purveyor Workshop upon receipt of all Ballot Forms. * Appointment:
1. The Director filling the vacancy will be appointed at a Special Purveyor Workshop affer all ballots are counted and certified.
8 Central Basin
Municipal Water District
CENTRAL BASIN MUNICIPAL WATER DISTRICT
OFFICIAL BALLOT (FOR CITIES)
This is an official ballot pursuant to Water Code Section 71267 as enacted in Assembly Bill 1794 and will be maintained by the District as a public record. Please cast your vote(s) for the nominated candidate of your choice only for each of the categories for which your agency qualifies under the provisions of that statute; should you have any uncertainty as to which categories for which your agency qualifies, please review Water Code section 71267. Please print clearly or type in providing the information requested, sign, date, and return this ballot to the District at 6252 Telegraph Road, Commerce, California 90040, Attention:
Dr. Alejandro Rojas, General Manager.
am casting this ballot on behalf of the City of an incorporated city.
As a in the District, this vote is cast for the following nominated candidate:
Thomas Bekele
Efren Martinez
I certify that I have the authorization and capacity to act in this regard on behalf of my agency by virtue of (check as many as apply):
€ a. an express authorization by a vote of my governing board at a properly noticed public meeting on
€ b. my position with the agency as
€ c. my position and authority as set forth in my agency's administrative code and/or a resolution delegating to me such general authority
€ d. Other: please describe:
Dated: Submitted by:
Name
Title
Signature
REVISED U3012017-CPO
9 el'ffMANAa!R'S OFFICE Item No. 2
FEB I 5 7)23
Ciffl of South Gate
CITY COUNCIL; SOUTH GATE HOUSING
AUTHORITY; AND SUCCESSOR AGENCY TO THE
COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SOUTH GATE
AGENDA BJ[LL
For the Special Meeting of: February 23, 2023
Originating Department: Administrative Semices
DepartmentDirector:
Kristopher Ryan
City Manager:
A',regers
SUBJECT: MID-YEAR BUDGET REPORT FOR FISCAL YEAR 2022-23 PURPOSE: To provide the City Council with a financial status update of the Fiscal Year 2022- 23 budget and to approve updates to tl'ie revised fund balance figures and mid-year budget modifications.
RECOMMENDED ACTIONS: The City Council, South Gate Housing Authority and tl'ie Successor Agency to tlie Community Development Commission of the City of South Gate will consider:
a. Updating tlie Fiscal Year 2022-23 Adopted Budget by acceptuig June 30, 2022, ending fund balances as depicted in Attacl'unent A; and
b. Modifying tl':ie Fiscal Year 2022-23 Adopted Budget and approving the additional appropriations and adjustments as recommended in this report and as outlined in Attachment B and C with any additional changes approved by City Council; and c. Approving a Grant Agreement with the U.S. Environmental Protection Agency for full federal funding in tlie amount of $500,000 to inventory, characterize, assess, and conduct cleanup planning and community involvement related activities; and d. Authorizing the Mayor to execute tlie Grant Agreement in a fonn acceptable to the City Attorney.
FISCAL IMPACT: The Fiscal Year 2022-23 Adopted Budget will be modified by the revised beginning fund balances as depicted iii Attachment 1 and the items approved by City Council as outlined in the report and as listed in Attacl'unent 3.
ANALYSIS: Witli tl'ie independent audit for Fiscal Year 2021-22 recently completed, it is appropriate for staff to return to City Council and ripdate the current budget with the revised fund balance figures and a mid-year budget revision.
10 BACKGROUND: The Mid-Year Budget Report is being divided up into two parts. First part will review the revised budget balances as a result of the independent audit and propose budget modifications to address budget variances and specific needs of the departments. The second part will provide a financial status report of the current fiscal year for the General Fund and other operating funds as of January 31, 2023.
I. FTJND BALANCES FOR JUNE 30, 2021, AND PROPOSED BUDGET
MODIFICATIONS
A mid-year review is done by staff to identify and adjust the current budget with the revised fund balance figures from the Annual Comprehensive Financial Report (ACFR) and propose budget modifications to address budget variances. Each year during the budget process, the begiru'iing fund balances used to develop the adopted budget are an estimate based on the best available inforination at the time. Once the ACFR and independent audit are completed, typically in December, staff then updates the current budget with the revised beginning fund balances and recognizes the net changes to the various City funds. It is important to update the fund balances after the independent audit to depict the actual fund balances for each fund and the difference between the estimated fund balance and the actual fund balance. Staff then updates the current budget by adopting the revised beginning fund balance figures and recognizing the net changes in available fund balance. Table I below summarizes the net change for the City's operating funds for last year, Fiscal Year 2021-22.
TABLE I
Fund Categoiy
Estimated
Ending Fund Balance
FY2021-22
Achial
Ending Fund Balance
FY2021-22
Change m Ending
Fund Balance
General Fiu'id* 20,395,647 25,503,413 5,107,766
Special Revenue Funds 70,464,704 66,997,564 (3,467,140) Capital Project Funds 3,426,146 4,979,522 1,553,376
Enterpie Funds 38,560,561 39,040,640 480,079
Intemal Service Funds 3,642,600 4,792,220 1,149,620
"excludes General Fund Reservas
Attachment A provides further details depicting the actual balances for each fund and the difference between the expected ending fund balance and the actual balances for the fiscal year.
General Fund
The ending fund balance for the General Fund was $5.1 million higher than initially anticipated.
Factors that led to this result include:
@ On the revenue side, Sales tax was up 10% compared to the prior year and 14% above budget estimates resulting in $3.4 million added to the available fund balance. This is good news; however, sales tax revenue is expected to taper off with inflation begiiu'iing to subside and a mild recession to come.
2 11
* On the expendihire side, City departments saved approximately $3.2 million last year mostly attributed to salary savings. The City averaged around 37 full-time vacancies during the fiscal year out of 323 full-time budgeted positions.
In addition to recognizing the new fund balance figures, the City Council should consider modifying the Fiscal Year 2022-23 Budget. Staff is recommending following the City Council adopted budgetary policy when it comes to unassigned fund balances. The City's policy is as followed:
* Maintain an emergency reserve of 20% of operating costs. * 30% of all excess would go to the Capital Projects Reserves. * The next 50% would go the PERS/OPEB Reserves.
* If needed, the final 20% would go to reduce any Fund deficits.
Staff recommends transferring $3 million to the emergency reserves for a total of $13 million to meet the 20% of operating costs of $65 million. Staff is also recoinrnending transferring $1.37 million to the capital project reserves to fund future capital projects and $730 thousand to the PERS/OPEB reserves.
l Various Deparhnents
2 Admin Services
3 Adnm Services
4 Adinin Serv'ces
5 Various Deparhnents
TABLE 2 - General Fiuid
FY2022-23 Adopted Ending Fund Balance
FY21-22 Endig Fund Balance Adjustinent (Savings)
Transfer Out to Emergency Reserves (to maintain 20% of operating budget) Transfer Out to Capital Project Reserves
Transfer Out to PERS/OPEB Reserves
Council Appropitions from Jul 2022 - Jan 2023
Subtotal Budget Changes
Appropriate
One-titne Ongoing
$979,272 $0
5,107,766
(3,000,000)
(1,370,000)
(730,000)
(648,230)
338,808
e Various Deparhnents Salary sav'ngs from staff vacancies 3,200,000 r (jty Attomey Increase City Attorney budget for Legal Fees (500,000) 8 City Clerk Priinary Election and November 2022 General Election (60,000) c Hwian Resources Pro'fessional Semces for administeting Sgt./Lt. promotional testing (30,000) IC Various Deparhnents Price icreases for vehicle equipment included ffi Adopted Budget (36,800) 11 Pubhc Works Transfer Out to CIP Fund tar carpet rep]acement & paint for HR offices (12,102) 12 Public Works Increases in custodial, electrical and plumbing supplies (20,000) 13 Public Works HVAC equipment rentals at Police Depar'h'nent (45,000) M Public Works Roofrepa#s at City Hall (62,000)
15 Public Works Computer Softviiare for graffiti abatement and facffities (20,000:
16 Comminity Developmen1 En*onmental Protection Agency Grant (Revenue) appropnation 500,000 17 Cominunity Development Emr"onmental Protection Agency Grant (Expend#ure) appropnation (500,000:
18 Parks & Recreation Califomians ir All Grant Transfer (Revenue) appropnation 500,000 IC Parks & Recreation Califomians for All Grant (Expenditure) approptiation (soo,ooo; 2,414,098
Remaining Fund Balance $2,752,906 $0
Additionally, staff is proposing several budget modifications to address budget variances that will most likely occur by year-end. These budget modifications will be offset by the $3.2 million in salai'y savings that is expected this fiscal year due to staff vacancies. As of January 31, 2023, the 3 12
City had 35 full-time vacancies with 18 of them coming from the Police Department. Table 2 below suminarizes the proposed budget modifications.
Special Revenue Funds
Special Revenue funds are used to account for revenues derived from specific taxes or other revenue sources that are restricted by law and can only be used for specified purposes. The collective ending fund balance for the City's Special Revenue Funds was $3.4 million lower than initially anticipated. However, it's important to note that this net change is not an actual loss to the City but rather due to the timing of capital project expenditures at year-end. The 5-Year Capital Improvement Program (CIP) will be updated as part of the FY 2023-24 Budget Process to account for the timing of these expenditures
In addition to recognizing the new fund balance figures for the Special Revenue Funds, as outlined in Attachment B, staff is proposing the following budget modifications. It's important to note that each table provided in this report includes a FY21-22 Year-End Actuals Adjustment. This is to ensure we are capturing the difference between the estimated fund balance and the actual fund balance as a result of the ACFR to provide an accurate available fund balance for FY 2022-23 after the budget modifications are considered.
American Rescue Plan
As of June 30, 2023, there was $7.1 million remaining of ARPA funds to appropriate for 'future uses. One of the eligible uses of ARPA funds is to restore lost revenue as a result of the pandemic.
The U.S. Treasury allows for a Standard Allowance of up to $10 million to be used in the Revenue Replacement category for a broad range of government services. To date, the Cityhas only claimed $8.78 million of the $10 million allowable. Staff is recomi'nending that the City claim the remaining $1.2 million to be set aside for future appropriations.
Additionally, staff is recommending using $500,000 of ARPA funds to fund a utility assistance program that will provide payment assistance to South Gate water customers for outstanding past due balances. Lastly, staff is recom+'nending reprogramming the original budget for the replacement of gym lockers at the Sports Center to come from the Park Enhancement Fund. Table 3 below summarizes the proposed budget modifications for the ARPA Fund.
TABLE 3 - American Rescue Act Plan Fund
l Adinin Services
2 Admin Services
3 Admiit Services
4 Admin Services
5 Parks & Recreation
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Endig Fund Balance Adjushnent
Council Appropitions from Jul 2022 - Jan 2023
Reserve the rernainingportion ofRevenue LosseS for futiu'e appropriations Ut'lity Assistance Program for South Gate water customers Reduce budget for Sports Center lockers replacement and reprogram from Park Enhancement Fund
Subtotal Budget Clianges
Remaining Fund Balance
Appropriate
One-time Ongoing
$7,992,723
(118,397)
(768,120)
(1,212,926)
(500,000)
130,000
(2,469,443)
$5,523,280 $0
4 13
Asset Forfeiture Fund
The Asset Forfeiture Fund collects revenues through the seizure of drug-related assets by the South Gate Police Department and are restricted for the use of law enforcement activities. Currently, the fund helps pay for expenses, such as overtime and equipment, that the City's General Fund would otherwise need to cover. These operating costs average around $950,000 annually. And it's important to note that while the Department has submitted release of funds to the appropriate State or federal agency, the timing of those requests are dependent on any case adjudication and/or assigned share to the South Gate Police Department. Thus, the receipt of those funds can be very volatile and may result in the General Fund needing to cover these costs in future years.
The Police Department is proposing several budget modifications to help fund the purchase of equipment and supplies pertinent to police operations. Table 4 below suinmarizes the proposed budget modifications.
1 Adrnin Services
2 Police
3 Police
4 PoEce
5 Police
6 Police
7 Police
8 Police
9 Police
Gas Tax Fund
TABLE 4 - Asset Forfeiture Fund
FY2022-23 AdoptedEnding FundBalance
FY21-22 Endig Fund Balance Adjushnent
Council Appropriations from Jul 2022 - Jan 2023
Price icreases for Velffcle equipment and MDC replacements Carpet replacement for PD offices
Replacement of 12 computers and radios
Axon redaction software
Price icreases for radio and equ:ment replacement
AC Unit Rentals for Detective Bureau
Vehicle lease agreement
Subtotal Budget Cbanges
Remag Fund Balance
Appropriate
One-time Ongoing
$1,322,659 $0
(183,404)
(42,853)
(25,857)
(14,874)
(20,221)
(10,455)
(39, 172)
(8,395)
(14,348)
(359,579)
$963,080 $0
The Gas Tax Fund is a special revenue fund related to streets and transportation. This fund receives revenues from excise and sales tax on gasoline and diesel fuel and taxes on registration of motor vehicles. Revenues must be spent on street related construction and maintenance projects. Staff is proposing two budget modifications to help fund the replacement of six street light poles and the rental of emergency light towers to be used during street light outages. Table 5 below sui'nunarizes the proposed budget modifications.
l Admin Services
2 Public Works
3 Public Works
4 Public Works
TABLE 5 - Gas Tax Fund
FY 2022-23 Adopted Ending Fund Balance
FY2 1-22 Endig Fund Bamnce Adjushnent
Council Appropnations from Jul 2022 - Jan 2023
Replacement ofsix street ligbt poles
Emergency liglit tower rentals for street outages Subtotal Budget Changes '
Remaining Fund Balance
Appropriate
One-time Ongoing
$2,714,720 $
(403,436)
(3,000)
(25,000)
(31,500)
(462,936)
$2,251,784 $0
5 14
Measure R and M Funds
These funds are used to fund new transportation projects and programs. The revenues are both % cent tax measures that are administered by Metro. The first proposed budget modification is to replace the median signs at three locations (Garfield @ El Paseo, Firestone @ Alameda, Tweedy @ Alameda) and split the costs between both funds. The second proposed budget modification is for parking improvements along State Street using Measure R funds. Table 6 and 7 below summarizes the proposed budget modifications.
I Administrat'ie Services
2 Public Works
3 Public Works
1 Administrative Serv'ces
2 Public Works
3 Public Works
4 Public Works
Prop A and C Funds
TABLE 6 - Measure M Fund
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Endig Fund Bahnce Adjustinent
Council Appropitions from Jul 2022 - Jan 2023
Median Sign Replacement at tmee locations (Garfield @ El Paseo, F#estone @ Alameda, Tweedy @ Alameda) 50% Split Measure M and R
Subtotal Budget Changes '
Appropriate
One-time Ongoing
$2,112,933 $
(965,286)
60,000
(30,176)
(935,462)
Remaining Fund Balance 1 $1,177,471 $0
TABLE 7 - Measure R Fiuid
FY2022-23 Adopted Ending Fund Balance
FY21-22 Endig Fund Bamnce Adjushnent
Council Appropitions froin Jul 2022 - Jan 2023
Median Sign Replacement at three locations (Garfield @ El Paseo, F#estone @ Aaaineda, Tweedy @ Alameda) 50% Spat Measure M and R
Parkig iprovements along State Street
Subtotal Budget Changes '
Appropriate
One-time Ongotng
$2,626,234 $
784,144
(1,354,122)
(30,176)
(30,000)
(630,154)
Remaig Fund Balance $1,996,080 $0
These funds are also a '/2 cent sales tax from each proposition and are administered by Metro.
Funds must be used in developing and improving local public transit and related infrastructure Prop C is more flexible becarise funds can also be used for street and traffic signal improvements.
The proposed budget modification for Prop A is to fund the replacement of 68 trash receptacles at bus stops along Tweedy Blvd and the surrounding area. The proposed budget modifications for Prop C are budget cleanup items to increase the revenue projection for Prop C and also reduce expenditures that were already paid for in the prior year. Tables 8 and 9 below summarizes the proposed budget modifications.
6 15
TABLE 8 - Prop A Fund
FY2022-23 Adopted Ending Fund Balance
1 Administratie Services FY21-22 Endig Fund Balance Adjushnent Replacement of 68 trash receptables at bus/shuttle locations on Tweedy Blvd and suirounding vicinity2 Public WorkS
Subtotal Budget Changes '
Appropriate
One-time Ongoing
$5,195,069 $
107,932
(100,000)
7,932
Remaintng Fund Balance $5,203,001 $0 ,
I Administratie Services
2 Administrative Services
3 Public Works
4 Public Works
TABLE 9 - Prop C Fund
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Endig Fund Bamnce Adjustment
Increase Prop C Revenue Projection
Reduce Transfer Out for Prior Year expendes
Reduce expenditure budget for Professional Services Subtotal Budget Changes
Reniaining Fund Balance
Appropriate
One-time Ongoing
$1,200,585 $
(2,309,3 45)
200,000
705,145
203,615
(1,200,585)
$0 $0
Park Enhancement Fund
The Park Enhancement Fund is used to collect rent payments from various park related facilities andusethemtohelpmaintaintheparksandparksfacilities. Staffisrecomrnendingreprograrnming the original budget for the replacement of gym lockers at the Sports Center from the ARPA Fund to the Park Enhancement Fund. Table 10 below summarizes the proposed budget modifications.
TABLE 10 - Park Enhancement Fund
l Administrative Services
2 Parks & Recreation
FY 2022-23 Adopted Ending Fund Balance
FY21-22 EndigFund Balance Adjustinent
Add budget for Sports Center lockers replacement
Subtotal Budget Changes '
Remaining Fund Balance
Federal & State Grant Fund
Appropriate
One-time Ongoing
$120,379 $
45,315
(130,000)
(84,685)
$35,694 $0
The Federal and State Grant Fund is used to receive grant funding received by the City and be used for specific purposes as outlined in the grants. Most all the City's grant funding is on a reimbursement basis and is received after the expenditures are incurred.
Staff is proposing budget modifications to incorporate two new grants that the City recently received. The first grant is the Californians for All Grant that was awarded to the City for $750,000 to reimburse the City for workforce development activities through an agreement with the Conservation Corp of Long Beach. This grant agreement was already approved by City Council and Staff is recoinmending adding the appropriation of $500,000 to Fiscal Year 2022-23. The 7 16
remaining $250,000 will be appropriated in the Fiscal Year 2023-24 budget. This grant will be administered by the Parks & Recreation Department.
The second grant is the U.S. Environmental Protection Agency (EPA) Grant that was recently awarded for $500,000. Tlffs grant will provide funding to inventoi'y, characterize, assess, and conduct cleanup planning and coinrnunity involvement related activities and will be administered by the Community Development Department. Staff is recomi'nending City Council to approve the grant agreement with the EPA and appropriate the $500,000 for the grant. Table 11 below summarizes the proposed budget modifications.
TABLE 11- Federal & State Grants Fund
FY2022-23 Adopted Ending Fund Balance
l Parks & Recreation Californians for All Grant Revenue budget appropition 2 Parks & Recreation Califomians for All Grant Transfer Out budget appropriation 3 Community Development Env#onmental Protection Agency Grant Revenue budget appropition 4 Community Development Env#onmental Protection Agency Grant Transfer Out budget appropition Subtotal Budget Changes '
Appropriate
One-tme Ongoing
$114,407 $
500,000
(soo,ooo)
500,000
(500,000)
o
Remaintng Fund Balance $114,407 $0
Capital Improvement Fund
The Capital Improvement Fund is used to budget all capital projects related to City facilities, parks, and streets. This fund is one component of the Capital Improvement Program (CIP) and represents the largest share of capital projects. Other funds that have capital projects budgeted are the Water Fund, Sewer Fund, Fleet Management Fund, and the Building & Infrastructure Maintenance Fund.
Staff is proposing two budget modifications to update the capital project budgets to address a budget variance with the HR offices renovation and modify the CDBG funded projects to match the Fiscal Year 2022-23 CDBG Action Plan. Table 12 below suinrnarizes the proposed budget modifications.
TABLE 12 - Capital Improvement Projects Fund
l Adr Services
2 Public Works
3 PubEc Works
4 Public Works
5 Public Works
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Endig Fund Balance Adjushnent
Carpet replacement & paint for HR Offices (Revenues) Carpet replacement & paint for HR Offices (Expenditures) Update CDBG funded projects per FY22-23 Action P%n (Revenues) Update CDBG funded prqjects per FY22-23 Action Plan (Expenditures) Subtotal Budget Changes
Rentaining Fund Balance
Appropriate
One-time Ongoing
$0 $
1,553,376
12,102
(12,102)
(33,405)
33,405
1,553,376
$1,553,376 ' $0
8 17
Enterprise Funds
The Enterprise Funds consist of the Water Fund, Sewer Fund, and Refuse Fund. These funds are financed and operated in a maru'ier similar to a private business enterprise. The intent is that the costs of providing goods and services to the public are to be recovered through user charges.
Staff is proposing one budget modification to the Sewer Fund for the procurement of computer softwaretoassistwithsewermappingandgeotaggingofsewerassets. Tablel3belowsumrnarizes the proposed budget modification.
TABLE 13 - Sewer Fund
I Adrnin Services
2 Public Works
3 Public Works
FY2022-23 Adopted Ending Fund Balance
FY21-22 Ending Fund Balance Adjushrient
Council Appropnations from Jul 2022 - Jan 2023
Computer Software for sewer mappig and geotagg'ng
Subtotal Budget Clianges '
Remaining Fund Balance
Appropriate
One-time Ongoing
$88,094 $
393,333
(52,000)
(10,000)
331,333
$419,427 $0
It is important to note that while the Sewer Fund has a positive ending fund balance for FY 2022- 23, this was primarily as a result of City Council declaring the $21.9 million City loan to the Sewer Enterprise as satisfied and discharged. However, the Sewer Fund continues to operate with costs far exceeding revenues at about $700 thousand each year and doesn't have the capacity to set aside funds for capital projects to address aging infrastructure. Staff plans to come back to the City Council in the coming months to propose clianges to the sewer rates to help address this gap in funding,
Internal Service Funds
The Internal Service Funds include the Insurance Fund (Worker's Compensation and Liability Insurance); Information Systems Fund; Fleet Management Fund; Capital Asset & Equipment Replacement Fund; and Building Maintenance & Infrastructure Fund. The revenues in these funds come from charges to the departments and the supporting funds that receive these services. While Staff is not proposing any budget modifications to these funds at mid-year, it's still important to discuss the current status.
The Fiscal Year 2022-23 Adopted Budget has a total of $2.3 million budgeted to help cover fiind deficits in both the Insurance Fund and Building & Infrastructure Maintenance Fund. Additionally, service charges from the Insurance Fund were increased by $2.3 million to help cover the rising costs of insurance premiums. These actions combined have allowed the Internal Service Funds to be in a positive net position at the moment; however, there is still cause for concern as costs continue to increase not only for insurance premiums but also for IT-related infrastructure and fleet management.
A critical goal for staff during tlie upcoming budget process is to complete a thorough analysis of the department allocations and develop a consistent methodology and user charge that will ensure that all funding sources are being appropriately charged for internal services received. 9 18
South Gate Housing Authority Funds
The South Gate Housing Authority's function consists of monitoring affordable housing agreements, managing the portfolio of housing rehabilitations, overseeing the first-time homebuyer loans, and managing land held for affordable housing projects.
Staff is proposing budget modifications to the Low/Mod Income Housing Asset Fund to address budget variances that will most likely occur by year-end. This includes increasing the budget for both legal fees related to Housing Redevelopment Projects and the costs associated with tenant relocations. For the Housing Authority Fund, Staff is proposing a budget modification increasing the budget for Housing Assistance Payments. Tables 14 and 15 below summarizes the proposed budget modifications.
TABLE 14 - Low/Mod Income Housing Asset Fund
FY 2022-23 Adopted Ending Fund Balance
lAdininistrativeServices FY21-22EndigFundBalanceAdjtlShnent 2 Community Developn'ient Legal Fees for Housing Redevelopment 3 Coinrnunity Developinent Increase budget for relocation fees Subtotal Budget Changes'
Remaining Fund Balance
Apprupriate
One-tinie Ongoing
$3,840,789 $
(20,337)
(100,000)
(11,500)
(131,837)
$3,708,952 , $0 ,
TABLE 15 - Housing Authority Fund
FY 2022-23 Adopted Ending Fund Balance
I Adrnin Services FY21-22 Endig Fund Balance Adjushnent 2 Community Development Reduce budget for Prior Year expendes 3 Con'u'nunity Development Increase budget for Housig Assistance Payinents SubtotalBudget Changes'
Appropriate
One-time Ongoing
$434,705 $
215,676
25,841
(500,000)
(258,483)
Remaintng Fund Balance $176,222 j $0
II. FINANCIAL ST ATUS REPORT FOR FISCAL YEAR 2022-23 AS OF JANUARY 31, 2023
The second part of the Mid-Year Report is to provide a financial status update of the current fiscal year for the General Fund and other operating funds as of January 31, 2023. Reviewing the cwrent year budget against actuals is key to ensuring that revenues and expenditures are on track to come in as anticipated. As of January 31, the fiscal year is considered 58.3% complete. This percentage will help compare what the City has received or spent to-date compared to what was budgeted. It is important to note that not all revenues and expenditures are incurred evenly throughout the year.
Some deposits or payments may incur sporadically throughout the year causing variances from the percent received or spent. Therefore, we need to provide some context as to why the City is experiencing any variances and if they are due to timing or other factors. 10 19
General Fund
The General Fund has a revenue budget of $61.8 million for Fiscal Year 2022-23. As of January 31, wehave received $27.9 million which is 45.28% ofthe overall revenue budget. This is perfectly normal because many of the major revenue sources, such as Sales Tax, have a 2-month lag time from receiving it from the State, meaning that the percent received would be around 41.6%. To date, Sales Tax is at 42% - 43% received which is in line with the 41.6% target. Additionally, other revenue sources, such as Franchise Tax and Business License Tax, have lower amounts received to date because the revenues are received on a qriarterly or annual basis. Those revenues are expected to come in as plaru"ied by year-end. Below is a chart that shows, by major revenue category, the General Fund revenues as of January 31s', compared to the adopted budget.
Revenues - By Category
2022-23
Adopted Budget
Achials
as of
01/31/2023 % Rec'd
Property Taxes 15,888,803 8,228,776 51.79%
State Sales Taxes 13,928,657 6,022,835 43.24%
Local Sales Taxes 13,372,000 5,645,647 42.22%
Franchise Taxes 1,603,968 306,813 19.13%
Business License Taxes 1,580,525 263,493 16.67%
Transient Occupancy Taxes 570,511 218,915 38.37%
Other Taxes 2,007,906 629,279 31.34%
Perinits 1,734,601 938,841 54.12%
Fines & Forfeitures 1,127,092 650,576 57.72%
Use ofMoney & Property 1,797,938 686,388 38.18%
Intergoverni'nental 140,389 88,667 63.16%
Fees & Charges 3,092,303 1,792,224 57.96%
Other Revenues 4,934,624 2,499,017 50.64%
Total General Fund Revenues 61,779,316 27,971,470 45.28% On the expenditure side, 53.84% of the General Fund budgeted expenditures have been spent. This would be an ideal percentage to have for this time of year, however, the actuals include the annual prepayment to CalPERS for the Unfunded Accrued Liability (UAL). This payment is made every July for the total amount owed to CalPERS for tlie UAL. Therefore, it inflates the amount that has been spent to date. If you were to exclude the annual UAL prepayment from the actuals, we would only be at 42.62% of General Fund expenditures spent. This is more in line with staff projections since we are estimating the General Fund will have at least $3.2 million in salary savings due to staff vacancies. The chart below shows, by department, the General Fund expenditures as of January 31, 2023, compared to the aru'iual budget. 11 20
Expendihires - By Department
2022-23
Adopted Budget
Achials
as of
01/31/2023 % Spent
City Council 349,256 183,466 52.53%
City Clerk 892,225 552,168 61.89%
City Treasurer 38,863 25,014 64.37%
City Attomey 1,250,663 753,721 60.27%
City Manager 1,285,402 600,622 46.73%
Administrative Services 3,861,931 2,019,035 52.28%
Parks & Recreation 11,316,943 5,347,778 47.25%
Police 34,819,541 20,076,236 57.66%
Corni'nunity Development 3,845,998 1,739,318 45.22%
Public Works 5,588,897 2,900,087 51.89%
Non-Deparhnental 2,668,530 1,293,100 48.46%
Total General Fund Expendihires 65,918,249 35,490,547 53.84% Exchtdes UAL annual prepayment 28,091,493 42. 62 %
In surninary, there is nothing noteworthy or concerning with respect to General Fund revenues and Staff believes the City is on track to come in at budget. As for expenditures, we are estimating at least $3.2 million in savings due to staff vacancies. However, besides salaries, there is nothing else concerning that would significantly impact the General Fund through the last five months of Fiscal Year 2022-23. Staff will be closely monitoring the actuals for both revenues and expenditures over the next few months as we prepare for the upcoming budget process.
Other Operating Funds
As for the other funds of the City, they also experience cyclical revenue receipts that are not received on a monthly basis. Examples of these are grant reimbursements, tax proceeds from the State, and federal disbursements for drug-related seizures. It is difficult to anticipate when some of these proceeds will come in and may come in at various times during the year. But unlike the General Fund, most ofthese special revenue funds are restricted for specific purposes and can only be spent as funding comes in. Some of the other City funds for restricted revenues are Gas Tax, Prop A, Prop C, Measure R, Measure M, Law Enforcement Grants, Assert Forfeiture, CDBG, Capital Improvement Program, Water, Sewer, Fleet Management, CAER, etc. 12 21
The chart below provides revenue and expenditure comparisons for each of the City's other funds through January 31, 2023.
Fund Name
2022-23
Adopted
Revenue
Budget
Achials
as of
01/31/2023 % Rec'd
2022-23
Adopted
Expendihire
Budget
Achials
as of
01/31/2023 % Spent
Gas Tax 2,793,379 1,468,461 52.57% 2,106,071 862,135 40.94% TDA B*eway 480,000 O.OO% O.OO%
Street Sweeping 711,570 368,420 51.78% 730,533 387,661 53.07% Road Repair & Acct Act (SBI) 2,226,093 998,718 44.86% O.OO% CASp Ceitification & Trag 13,876 5,686 40.98% O.OO%
Measure W 1,002,100 1,003,093 IO0.10% 591,029 161,545 27.33% Used Oil Recycling 13,523 506 3.74% 20,243 7,311 36.12% Beverage Container Recycling 24,315 1,519 6.25% 23,935 22,284 93.10% Road Mitigation Program Fund 47,640 62,553 131.30% O.OO% Prop A Transit 2,818,952 1,953,810 69.31% 2,195,747 902,000 41.08% Prop C Transit 1,993,794 1,433,283 71.89% 809,075 103,856 12.84% Air Quality (AQMD) 130,590 80,769 61.85% 50,525 7,278 14.40% Measure R Transit 1,502,171 1,065,408 70.92% 1,254,799 519,325 41.39% Measure M Transit 1,676,560 1,142,796 68.16% 1,493,431 761714 51.41% State COPS Grants 354,367 O.OO% 354,367 106,349 30.01% Law Enforcement Grants 34,823 261,171 750.00% 112,529 239,372 212.72% Asset Forteiture 76,250 108,623 142.46% 1,593,340 453,503 28.46% OTS Grant 7,360 O.OO% 7,360 O.OO%
Housing Authority Admin 353,164 O.OO% 244,958 9,488 3.87% Housing Authority - Section 8 5,247,115 2,605,816 49.66% 4,929,591 2,705,012 54.87% Home Program 3,407,033 51,044 1.50% 3,407,033 37,589 1.IO% CDBG 2,924,194 12,000 0.41% 1,871,566 211,768 11.32%
Emergency Housig Voucher (EHV) 183,698 O.OO% 21,834 O.OO% ARPA 94,500 17,649,368 18676.58% 15,335,637 2,220,956 14.48% Street Ligh% & Landscaping 2,055,121 1,007,741 49.04% 3,041,636 1,135,010 37.32% Tweedy Parking & BnD 22,210 907 4.08% 61,206 20,000 32.68% Federal & State Grants 45,865,192 O.OO% O.OO%
UDAG 3,045 12,333 405.03% 30,000 O.OO%
Public Access Corp 60,210 31,040 51.55% 18,845 12,603 66.88% WSAB TOD SIP 180,000 O.OO% 180,000 O.OO%
Pemianent Local Housing Allocation 721,320 O.OO'% 306,958 12,338 I 4.02% SB 2 Grant Fund 310,000 O.OO'% 191,608 23,144 12.08%
LEAP Grant 300,000 0.00'/, 282,919 29,400 10.39%
Park Enhancement 272,300 241,211 88.58'% 188,958 14,479 7.66% Capital Improvement Program 73,096,452 O.OO'% 76,522,598 5,787,636 7.56% Successor Agency 23,005 O.OO'% 70,311 20,000 28.45%
Low/Mod Income Housing 60,876 45,368 74.53'% 120,544 78,157 64.84% Water 20,563,664 10,942,888 53.21'/i 34,262,074 8,337,703 24.34% Sewer 2,004,083 624,763 31.17'/. 2,758,999 557, 146 20.19% Refuse 4,523,628 2,340,249 51.73'/i 4,150,673 2,324,172 56.00% Insurance (Risk Management) 6,785,066 3,476,818 51.24'% 6,736,346 5,492,991 81.54% Fleet Management 2,019,855 1,062,936 52.62'% 2,443,459 1,109,715 45.42% Information Systems 1,554,719 807,783 51.96',, 1,572,843 492,260 31.30% Capital Asset & Equip Repl 605,684 417,173 68.88o/i 1,678,704 33,896 2.02% Building & Infrasti'uchire Maint 1,043,380 30,969 2.97'/i 1,351,675 158,732 l1.74% Successor Agency Debt Service 5,381,436 2,525,262 46.93',"i 4,942,665 298,561 6.04% Totals - Other Funds 195,560,953 53,847,844 ' 27.54% 178,037,430 35,692,285 20.05% Totals - All Funds 257,340,269 81,819,314 31.79'!/i 2 43,955,679 71,182,831 29.18% 13 22
ATTACHMENTS: A. Net Changes to Fund Balances
B. Revised Fund Balance Surnmai'y
C, FY 2022-23 Budget Modifications
D. Proposed Grant Agreement
23 ATT ACHMENT A
Net Changes in Fund Balances
for FY 2022-23
15 24
NET CHANGES BETWEEN FY 2021-22 ENDING BALANCES AND FY 2022-23 ESTIMATED BEGINNING BALANCES Available for new
Appropriations
25,503,413
25,503,413
31,151
1,630,375
559,123
5,321,250
78,050
1,021,456
35 45,483
2,146,451
4,679,796
4,936,358
451,305
4,814,590
2,588,046
o
648,639
2,672,822
o
o
6,516,267
(18,575)
189,168
(1,389,661)
35,624
114,407
421,834
34,799
o
o
(124,356)
(20,528)
24,614,044
1,119,491
o
3,880,120
66,997,564
Fund
General
GENERAL FUNDS
Traffic Safety
Gas Tax
Street Sweeping
Road Repair & Accountability
CASp Certification & Training
Measure W Stormwater
Used Oil Recycling Program
Beverage Container Recycling
Road Mitigation Fee
Prop A Transit
Prop C Transit
SCAQM D
Measure R Transit
Measure M Transit
COPS Grant
Law Enforcement Grants
Asset Forfeiture
OTS Grant
Edward Byrne Grant
HOME Program
CDBG
Emergency Housing Voucher
Street Lighting & Landscaping
Tweedy Parking & Bus Improv Area
Federal & State Grants
UDAG
Public Access Corp.
WSAB TOD SIP
Permanent Local Housing
SB2 Grant
LEAP Grant
ArBerican Rescue Plan Act (ARPA)
Park Enhancement
Measure A
Low/Mod Income Housing ASsetS
SPECIAL REV. FUNDS
Estimate Difference
Estimated Beginning
Balance - FY 21-22 Over/(Under)
Adopted Budget Estimate
20,395,647 5,107,766
20,395,647 5,107,766
31,151 o
2,033,811 (403,436)
550,682 8,441
5,792,506 (471,256)
76,499 1,551
1,221,446 (199,990)
6,720 (6,685)
33,783 11,700
2,146,382 69
4,571,864 107,932
7,245,703 (2,309,345)
667,869 (216,564)
4,030,446 784 144
3,553,332 (965,286)
o o
633,691 14,948
2,856,226 (183,404)
o o
o o
6,523,072 (6,805)
446,886 (465,461)
197,295 (8,127)
(1,343,611) (46,050)
39,407 (3,783)
(1,259,000) 1,373,407
422,355 (521)
48,466 (13,667)
o o
(15,000) 15,000
(118,392) (5,964)
(17,081) (3,447)
25,113,563 (499,519)
1,07 4,176 45,315
o o
3,900,457
70,464,704
(20,337)
(3,467,140)
16 25
NET CHANGES BETWEEN FY 2021-22 ENDING BALANCES AND FY 2022-23 ESTIMATED BEGINNING BALANCES Available for new
Appropriations
o
4,979,522
4,979,522
36,308,359
1,237,243
1,495,038
39,040,640
(1,773,105)
639,270
70,356
4,591,388
1,264,311
4,792,220
141,313,359
3,403,356
(8,255,576)
(4,852,220)
(134,047)
358,698
224,651
136,685,790
Fund
TDA Bikeway
Capital Improvement Projects
CAPIT AL PROJECT FUNDS
Water
Sewer
Refuse Collection
ENTERPRISE FUNDS
Insurance
Fleet Management
Information Systems
Capital Asset & Equip Replacement
Building & Infrastructure Maint
INTERNAL SERVICE FUNDS
TOT AL CITY FUNDS
Successor Agency
Successor Agency ROPS
SUCCESSOR AGENCY FUNDS
Housing Authority Admin
Housing Authority - Section 8
HOUSING AUTHORITY FUNDS
TOTALALLFUNDS
Estimate
Estimated Beginning
Balance - FY 21-22
Adopted Budget
o
3,426,146
3,426,146
36,719,514
843,910
997,137
38,560,561
(2,237,296)
497,346
23,068
4,326,620
1,032,862
3,642,600
136,489,658
3,456,597
(7,831,297)
(4,374,700)
(108,206)
117,181
8,975
132,123,933
Difference
Over/(Under)
Estimate
o
1,553,376
1,553,376
(411,155)
393,333
497,901
480,079
464,191
141,924
47,288
264,768
231,449
1,149,620
4,823,701
(53,241)
(424,279)
(477,520)
(25,841)
241,517
215,676
4,561,857
17 26
ATT ACHMENT B
REVISED FUND BALANCE SUMMARY
18 27
City of South Gate
Financial Summary
Fiscal Year 2022/23
Fund
No. Fund Name
General Fund: Unassigned
Revised
Beginning Fund
Balances
(7 /1/2022)
Available Fund Balances Summary
FY 2022/23
Revised
Revenues
FY 2022/23
Revised Net Surplus /
Expenditures (Shortfall)
Fund
Balance
Coverage
Capital
Projects
Revised
Transfers In
Revised Ending
Revised Fund Balances
Transfers Out (6/30/2023)
211 Traffic Safety
212 Gas Tax
214 Street Sweeping
215 Road Repair & Accountability
216 CASp Certification & Training
217 Measure W Stormwater
218 Used Oil Recycling Program
219 Beverage Container Recycling
220 Road Mitigation Fee
221 Prop A Transit
222 Prop C Transit
223 SCAQMD
224 Measure R Transit
225 Measure M Transit
230 COPS Grant
231 Law Enforcement Grants
235 Asset Forfeiture
242 HOME Program
243 CDBG
246 Emergency Housing Voucher
251 Street Lighting & Landscaping
S31,151
Sl,630,375
S559,123
S5,321,250
S78,050
Sl,021,456
S35
S45,483
S2,146,451
S4,679,796
S4,936,358
S451,305
S4,814,590
S2,588,046
SO
S648,639
S2,672,822
S6,516,267
(S18,575)
S189,168
(5i,asg,sex)
SO
S2,793,379
S711,570
S2,226,093
S13,876
S975,913
S13,523
S24,315
S47,640
S2,818,952
(S315,551)
S259,590
Sl,502,171
Sl,676,560
S241,838
S44,823
S76,250
S3,407,033
S3,433,505
S183,698
S2,055,121
SO
S2,165,571
S730,533
SO
SO
S372,292
S13,558
S23,935
SO
S2,295,747
S103,930
S322,494
S2,669,097
Sl,463,607
S354,367
SI0,000
Sl,769,515
S3,407,033
Sl,815,416
SO
S2,995,586
SO (531,151)
SO
50 SO
.50
90 SO
SO
SO
SO
9o
SO
SO
SO
SO
SO
SO
SO
SO
SO
S627,808
(S18,963)
S2,226,093
S13,876
S603,621
(S35)
S380
S47,640
S523,205
(S419,481)
(S62,904)
(51,166,926)
S212,953
(S112,529)
S34,823
(Sl,693,265)
SO
Sl,618,089
S183,698
(S940,465) 52,330,126
SO
SO
SO
SO
SO
50 SO
SO
SO
SO
SO
SO
SO
SO
S112,529
SO
SO
SO
SO
SO
SO
SO
S6,399
SO
S7,399,024
SO
Sl,528,291
SO
SO
S2,050,000
SO
S6,524,692
S294,309
Sl,651,584
Sl,623,528
SO
S112,529
S16,477
SO
Sl,499,514
SO
!;O
SO
S2,251,784
S540,160
S148,319
S91,926
S96,786
SO
S45,863
S144,091
S5,203,001
(62,007,815)
S94,092
Sl,996,080
Sl,177,471
§O
S570,933
S963,080
S6,516,267
SIO0,000
5372,866
SO
19 28
City of South Gate
Financial Summary
Fiscal Year 2022/23
252 Tweedy Parking & Bus Improv Area
261 Federal & State Grants
262 UDAG
263 Public Access Corp.
264 WSAB TOD SIP
265 Permanent Local Housing
266 SB2 Grant
267 LEAP Grant
268 American Rescue Plan Act (ARPA)
271 Park Enhancement
322 Low/Mod Income Housing Assets
Special Revenue Funds Totals
S35,624
S114,407
S421,834
S34,799
!,iO
SO
(S124,356)
(S20,528)
S24,614,044
Sl,119,491
.53,880,120
S66,997,564
S25,582
S45,666,192
S3,045
S60,210
S180,000
S721,320
S310,000
S300,000
S94,500
S272,300
%0,876
S70,059,324
S61,206
SO
S30,000
S18,845
S180,000
S62,000
S185,644
S279,472
S16,222,635
S188,958
S232,044
S38,148,485
(S35,624)
S45,666,192
(S26,955)
S41,365
SO
S659,320
S124,356
920,528
(516,128,13!S)
S83,342
(5171,168)
S31,910,839
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
S2,298,975
SO
SO
SO
SO
50 SO
SO
SO
SO
SO
SO
S112,529
90 S45,666,192
SO
SO
SO
S244,958
SO
SO
S2,962,629
Sl,167,139
SO
S72,7 47,265
90 S114,407
S394,879
S76,164
SO
5414,362
SO
SO
S5,523,280
S35,694
S3,708,952
S28,572,642
511 Insurance
521 Fleet Management
522 Information Systems
523 Capital Asset & Equip Replacement
524 Building & Infrastructure Maint
Internal Service Funds Totals
Total City Funds
(51,773,105)
S639,270
970,356
S4,591,388
Sl,264,311
S4,792,220
S6,785,066
S2,019,855
91,554,719
S605,684
S197,255
Sll,162,579
S6,736,346
S2,343,459
Sl,572,843
Sl,861,469
S183,500
S12,697,617
S48,720
(S323 604
S18 124
Sl,255 785)
S13 755
S156,321,658 S170,798,351 S141,912,633 S28,885,718
S2,188,576
SO
SO
SO
S140,894
S2,329,470
SO
SIO0,000
90 SO
Sl,348,175
Sl,448,175
SO
SO
90 !'O
51,026,125
Sl,026,125
SO
SO
SO
SO
S864,336
S864,336
S464,191
S215,666
S52,232
S3,335,603
S232,574
S4,300,266
(S450,000) S93,205,028 S74,329,664 S76,955,754 S88,926,258 20 29
City of South Gate
Financial Summary
Fiscal Year 2022/23
Fund
No. Fund Name
Revised
Beginning Fund
Balances
(7 /1/2022)
Available Fund Balances Summary
FY 2022/23
Revised
Revenues
FY 2022/23
Revised Net Surplus /
Expenditures (Shortfall)
Fund
Balance
Coverage
Capital
Projects
Revised Ending
Revised Revised Fund Balances
Transfers In Transfers Out (6/30/2023)
240 HousingAuthorityAdmin (51341047) SO S219,117 (5219,117) 241 Housing Authority - Section 8 S358,698 S5,247,115 S5,429,591 (5182,476) Total Housing Authority Funds 5224,651 55,247,115 S5,648,708 (5401,593) Total All Funds S151,694,089 S181,449,907 S152,574,317 S28,875,590 SO SO S353,164 .50
SO 50 SO SO
SO SO S353,164 S0
(1450,000) S93,205,028 S74,682,828 S76,955,754
SO
S176,222
S176,222
S84,641,725
21 30
ATTACHMENT C
Recommended Budget Modifications
to the FY 2022-23 Adopted Budget
22 31
MODIFICATIONS TO THE FY22-23 ADOPTED BUDGET
General Fund
Appripriate
One-time Ongoing
$979,272 $0
l Variotis Departments FY21-22 Ending Fund Balance A4jtistment (Savings) 5,107,766 2 Admin Services Transfer Orit to Emergency Reserves (to maintain 20% of operating budget) p.OOO,000) 3 Admin Services Transfer Out to Capital Project Reserves (1,370,(El 4 Admin Services Transfer Orit to PERS/OPEB Reserves (730.000) 5 Variotis Departments Council Appropriations from Jtil 2022 - Jaii 2023 (648,230) 338,808
6 Various Departments Salaiy savings from staff vacancies 3,200,000 7 City Attomey Increase City Attorney budget for Legal Fees (500.000) 8 City Clerk Primary Election and November 2022 General Election (60.000) 9 Htiman Resources Professional Services for administering Sgt./Lt. promotional testing (30,000) 10 Variotis Departments Price increases for vehicle equipment incltided in Adopted Budget (36,800) 11 Priblic Works Transfer Out to CAP Ftind for carpet replacement & paint for HR offices (l:!JO)!) 12 Public Works mcreases in custodial, electrical, and pltimbing sripplies (:!O,(X)O) 13 Public Works HVAC equipment rentals at Police Department (45,000) 14 Public Works Roof repairs at City Hall (62,000)
15 Public Works Computer Softivare for graffiti abatement and facilities (,!0,000) 16 Community Development Environmenta) Protection Agency Grant (Revenue) appropriation 500,000 17 Community Development Environinental Protection Agency Grant (Expendihire) appropriation (500_000) 18 Parks & Recreation Califomians for Al} Grant Traiisfer (Revenue) appropriation 500,000 19 Parks & Recreation Califomians for All Grant (Expenditure) appropriation (500.000) 2,414,098
Remaining Fund Balanee , $2,752,906 ,
American Rescue Act Plan Fund
l Adinin Services
2 Admin Services
3 Admin Services
4 Admin Services
5 Parks & Recreation
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Ftind Balance At%justment
Cotincil Appropriations from Jtil 2022 - Jan 2023
Reserve the remaining portion of Revenue Losses for fuhire appropriations Utility Assistaiice Program for Sout)i Gate water customers Reduce budget for Sports Center lockers replacement and reprogram from Park Enliancement Ftind
Subtotal Budget Changes
Remaining Fund Balance ,
Appr ipriate
One-time Ongoing
$7,992,723
(113397)
(768,120)
(1,212,',!6)
(500.00(D
130,000
(2,469,443)
$5,523,280 , $0
Asset Forfeiture Fund
I Admin Services
2 Police
3 Police
4 Police
5 Police
6 Police
7 Police
8 Police
9 Police
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Frind Balance Adjustment
Cotincil Appropriations fron'i Jul 2022 - Jan 2023
Price increases for Veliicle eqtiipment and MDC replacements Carpet replacement for PD offices
Replacement of 12 computers and radios
Axon redaction softivare
Price increases for radio and eqriipment replacen'ient AC Unit Rentals for Detective Bureau
Vehicle lease agreement
Subtotal Bridget Cliaiiges
Remaining Fund Balance ,
Appr ipriate
One-time Ongoing
$1,322,659 $0
(183,404)
(42,853)
Q5,857)
(14,874)
(!OJI)
(10,455)
(39,172)
(8,W5)
(ti.348)
(359,579)
$963,080 , $0
32 MODIFICATIONS TO THE FY22-23 ADOPTED BUDGET
Gas Tax Fund
l Admin Services
2 Public Works
3 Public Works
4 Public Works
Measure M Fund
l Administrative Services
2 Public Works
3 Public Works
Measure R Fund
1 Administrative Services
2 Public Works
3 Ptiblic Works
4 Priblic Works
Prop A Fund
l Administrative Services
2 Public Works
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending F+ind Balance ,%justment
Council Appropriations from Jtil 2022 - Jaii 2023
Replacement of six street light poles
Emergency light tower rentals for street oritages
Sribtotal Btidget Changes
Remaining Fund Balance ,
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Fund Balaiice A4justment
Cotincil Appropriations from Jut 2022 - Jaii 2023
Median Sign Replacement at tliree locations (Garfield @ EI Paseo, Firestone @ Alameda, Tweedy @ Alameda) 50% Split Measure M and R Subtotal Budget Changes
Remaining Fund Balance ,
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Fund Balance At%jtistment
Cotincil Appropriations from Jtil 2022 - Jait 2023
Median Sign Replacement at tliree locations (Garfield @ EI Paseo, Firestone @ Alameda, Tweedy (ii) Alaineda) 50% Split Measure M and R Parking improvemei'its along State Street
Stibtotal Budget Changes
Remaining Fund Balance ,
Appr ipriate
One-time Ongoing
$2,714,720 $
(403,436)
(3,000)
(25,000)
(31,500)
(462,936)
$2,251,784 ,
Appr,ipriate
One-ttme Ongoing
$2,112,933 S
(965,,!86)
60,000
(30,176)
(935,462)
$1,177,471 , $0
Appropriate
One-time Ongoing
$2,626,234 $
784,144
(1,354,122)
(30,176)
(30,000)
(630,154)
$1,996,080 ,
Appropriate
One-time Ongoing
$5,195,069 S
107,932
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Fund Balance A4justment
Replacement of 68 tras)i receptables at bus/shtittle locations on Tweedy Blvd aim surroundingvicinity (l(X),000)
Subtotal Budget Changes 7,932
Remaining Fund Balance , $5,203,00l , $0
Prop C Fund
l Administrative Services
2 Administrative Services
3 Public Works
4 Public Works
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Ftind Balance A4justment
Increase Prop C Reventie Projection
Reduce Transfer Out for Prior Year expenditiires
Reduce expenditiire budget for Professional Services Subtotal Budget Clianges
Remaining Fund Balance ,
Appripriate
One-time Ongoing
$1,200,585 S
(.!,309,345)
200,000
705,145
203,615
(1,200,585)
$0 , $0 ,
33 MODIFICATIONS TO THE FY22-23 ADOPTED BUDGET
Park Enhancement Fund
Appropriate
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $120,379 S 1 Administrative Services FY21-22 Ending Ftind Balance Adjustment 45,315 2 Parks & Recreation Add budget for Sports Center lockers replacement ( 03J Subtotal Budget Changes
Remaining Fund Balance $35,694 5iO
Federal & State Grants Fund
FY 2022-23 Adopted Ending Fund Balance
1 Administrative Services FY21-22 Year-End Actuals Adjustment 2 Administrative Services Increase tnidget for Grant Revenues for FY21-22 Year-End expenditiires I Parks & Recreation Californians for All Grant Revenue budget appropriation 2 Parks & Recreation Californians for All Grant Transfer Otit budget appropriation 3 Coinmunity Development Environmental Protection Agency Grant Revenue budget appropriation 4 Comn'amity Development Environmental Protection Agency Grant Transfer Out budget approIiriation Subtotal Budget Changes
Appr ipriate
One-time Ongoing
$114,407 $
(1,043,2a2)
1,043,202
500,000
(500,000)
500,000
(500,000)
o
Remaining Fund Balance , $114,407 , $0
Capital Improvement Projects Fund
l Admin Services
2 Public Works
3 Public Works
4 Public Works
5 Ptiblic Works
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Fund Balance A4justment
Carpet replacement & paint for HR Offices (Revenues) Carpet replacement & paint for HR Offices (Expenditures) Update CDBG funded prqjects per FY22-23 Action Plan (Revenues) Update CDBG funded projects per FY22-23 Action Plan (Expenditiires) Stibtotal Budget Changes
Remaining Fund Balance ,
Appropriate
One-time Ongoing
$0 S
1,553,376
12, 102
(12,102)
(33,405)
33,405
1,553,376
$1,553,376 , $0 ,
Sewer Fund
A ropriate
1 Admin Services
2 Public Works
3 Public Works
FY 2022-23 Adopted Ending Fund Balance
FY21-22 Ending Fund Balance Adjtistment
Council Appropriations from Jul 2022 - Jan 2023
393,333
(52,Ol)0
(IO,OOO
Subtotal Budget Clianges 331,333
Remaining Fund Balance $419,427 $0
Software for sewer n'iapping and geotagging
One-ttme Ongoing
Low/Mod Income Housing Asset Fund
A ropriate
One-time
FY 2022-23 Adopted Ending Fund Balance $3,840,
l Administratiye Services FY21-22 Ending Fund Balance Adjristment 2 Coirimunity Legal Fees for Hotising Redevelopment 3 Community Development Ii'icrease btidget for relocation fees (l i3oo Subtotal Budget Cliaiiges 03n,83
Rematning Fund Balance !Fi3,708,952 $0
34 MODIFICATIONS TO THE FY22-23 ADOPTED BUDGET
Housing Authority Fund
Appr-ipriate
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance
1 Adinin Services FY21-22 Ending Fund Balance Adjustment 2 Community Developinent Redtice budget for Prior Year expenditures 3 Community Development Increase budget for Housing Assistance Payments Subtotal Btidget Clianges
$434,705 $
215,676
25,841
(500,000)
(253413)
Remaining Fund Balance i $176,222 i
35 ATT ACHMENT D
Grant Agreement with
U.S. Environmental Protection Agency
27 36
BF - 98T43301 - O Page 1
,tlEDSr4y,,
=' 0 '-= M ("'o <Z
'(" '!F"-+, {
4( psi""
u.s. ENVIRONMENTAL
PROTECTION AGENCY
Cooperative Agreement
GRANT NUMBER (FAIN): 98T43301
MODIFICATION NUMBER: 0
PROGRAM CODE: BF
DATE OF AWARD
09/06/2022
TT'PE OF ACTION
New
MAILING DATE
09/09/2022
PAYMENT METHOD:
ASAP
ACH#
PEND
RECIPIENT Th'PE:
Municipal
Send Payment Request to:
Contact EPA RTPFC at: [email protected]
RECIPIENT: PAYEE:
City of South Gate
8650 California Avenue
South Gate, CA 90280-3004
EIN: 95-6000799
City of South Gate
8650 California Avenue
South Gate, CA 90280-3004
PROJECT aGER EPA PROJECT OFFICEP. EPA GRANT SPECIALIST Meredith Elguira
8650 California Avenue
South Gate, CA 90280-3004
Email: [email protected]
Phone: 323-563-9566
Noemi Emeric-Ford
75 Hawthorne Street, LND-2-1
San Francisco, CA 94105
Email: [email protected]
Phone: 213-244-1821
Norma Douglass
Grants Branch, MSD-6
75 Hawthorne Street
San Francisco, CA 94105
Email: [email protected]
Phone: 415-947-4136
PROJECT TITLE AND DESCRIPTION
BROWNFIELDS ASSESSMENT COOPERATIVE AGREEMENT
Brownfields are real property, the expansion, development or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.
This assistance agreement provides full federal funding in the amount of $500,000. Specifically, this agreement will provide funding to ihe recipient to inventory, characterize, asSeSS, and conduct cleanup planning and community involvement related activities. Additionally, the recipient will competitively procure and direct a Qualified Environmental Professional to conduct environmental site activities, and will report on interim progress and final accomplishments by completing and submitting relevant portions of the Property Profile Form using EPA's Assessment, Cleanup and Redevelopment Exchange System (ACRES). Customize based on information in the application/workplan. Further, the recipient anticipates conducting Phase I and environmental site assessments, holding community meetings, developing site-specific cleanup plans/Analysis of Brownfield Cleanup Alternatives, developing planning documents to initiate brownfields revitalization, and submitting quarterly reports. Work conducted under this agreement will benefit the residents, business owners, and brownfield in and near project location(s). No subawards are included in this assistance agreement.
BUDGET PERIOD
10/01/2022- 10/31/2025
PROJECT PERIOD
10/01/2022 - 10/31/2025
TOTAL BUDGET PERIOD COST
$500,000.00
TOTAL PROJECT PERIOD COST
$500,000.00
NOTICE OF AWARD
Based on your Application dated 12/CIU2021 including all modifications and amendments, the United States acting by and through the US Environmental Protection Agency (EPA) hereby awards $500,000.00. EPA agrees to cost-share of all approved budget period costs incurred, up to and not exceeding total federal funding of $500,000.00. Recipient's signature is not required on this agreement. The recipient demonstrates its commitment to carry out this award by either: 1 ) drawing down funds within 21 days afier the EPA award or amendment mailing date: or 2) not filing a notice of disagreement with the award terms and conditions within 21 days affer the EPA award or amendment mailing date. If the recipient disagrees with the terms and conditions specified in this award, the authorized representative of the recipient must furnish a notice of disagreement to the EPA Award Official within 21 days affer the EPA award or amendment mailing date. In case of disagreement, and until the disagreement is resolved, the recipient should not draw down on the funds provided by this award/amendment, and any costs incurred by the recipient are at its own risk. This agreement is subject to applicable EPA regulatory and statutory provisions, all terms and conditions of this agreement and any attachments. 18SUlNG OFFICE (GRANTS MANAGEMENT OFFICE) AWARD APPROVAL OFFICE
ORGANIZATION /ADDRESS ORGANIZATION /ADDRESS
u.s. EPA, Region 9, u.s. EPA, Region 9 Grants Branch, MSD-6 75 Hawthorne Street
San Francisco, CA 94105
u.s. EPA, Region 9, Land, Chemicals and Redevelopment, LND-1 R9 - Region 9
75 Hawthorne Street
San Francisco, CA 94105
THE UNITED STATES OF AMERICA BY THE u.s. ENVIRONMENTAL PROTECTION AGENCY Digital signature applied by EPAAward Offlaal Carolyn Truong - Grants Management Officer DATE 09/06/2022
28 37
BF - 98T43301 - O Page 2
EPA Funding Information
FUNDS FORMER AWARD THIS ACTION AMENDED TOTAL
EPA Amount This Adion $0 $500,000 $500,000
EPA In-Kind Amount $0 $0 $0
Unexpended PriorYear Balanoe $0 $0 $0
Other Federal Funds $0 $0 $0
Redplem Contibution $0 $0 $0
State Contribution $0 $0 $0
Loml Contribution $0 $0 $0
Other Conbibution $0 $0 $0
Allowable Pmjed Cost $0 $500,000 $500,000
Asslstanoe Program (CFDA) StatutoryAufiort§ RegulatoryAuthority
66.E118 - Brownfields Multipurpose, Assessment,
Revolving Loan Fund, and Cleanup Cooperative
Agreements
CERCLA: Secs. 104(k)(2) & 104(k)(5)(E) 2 CFR 200, 2 CFR 1500 and 40 CFR 33 Fis>l
Site Name Req No FY Appmpa
Code
Budget
Oganizatlon
PRC Object
Class
8itePmJed Cost
Organlzation
Obligation /
Deobligation
2209QEOOB1 22 E4 0900AG7 000D79 4114 $500,000
$500,000
29 38
BF - 98T43301 - O Page 3
Budget Summary Page
Table A - ObJed Class Category
(Non-Construdion)
Total Appmved Allowable
Budget Period Cost
1. Personnel $39.976
2. Frlnge Benefits $0
3. Tmvel $24,000
4. Equipment $0
5. Supplies $36.024
6. Contnadual $400.000
7. Construdion $0
8. Other $0
9. Total Dired Charges $500.000
10. Indlred Costs: 0.00 % Base $0
1 1. Total (Share: Recipient _Q_QQ % Federal %) $500,000 1 2_ Total Annrovod Aaslotanoo Amriunt egrin nnn
l;JljlJ,LlljU
13. Program Inmme $0
14. Total EPAArnount Awarded This AThon $500.000
16. Total EPAAmoum Awarded To Date $500.000
30 39
BF - 98T43301 - O Page 4
Administrative Conditions
General Terms and Conditions
The recipient agrees to comply with the current EPA general terms and conditions available at:
https://www.epa.qov/grants/epa-general-terms-and-conditions-effective-october-1-2021 -or-later.
These terms and conditions are in addition to the assurances and certifications made as a part of the award and the terms, conditions, or restrictions cited throughout the award.
The EPA repository for the general terms and conditions by year can be found at: https://www.epa.qov/qrants/qrant-terms- and-conditions#qeneral.
A. Federal Financial Reporting (FFR)
For awards with cumulative project and budget periods greater than '12 months, the recipient will submit an annual FFR (SF 425) covering the period from "project/budget period start date" to September 30 of each calendar year to the EPA Finance Center in Research Triangle Park, NC. The annual FFR will be submitted electronically to rtpfc-qrants(aepa.qov no later than December 30 of the same calendar year. Find additional information at https://ww.epa.qov/financial/qrants. (NOTE:
The grantee must submit the Final FFR to [email protected] within 120 days afker the end of the project period.) B. Procurement
The recipient will ensure all procurement transactions will be conducted in a manner providing full and open competition consistentwith2CFRPart200.319. lnaccordance2CFRPart200.324thegranteeandsubgrantee(s)mustperforma cost or price analysis in connection with applicable procurement actions, including contract modifications.
State recipients must follow procurement procedures as outlined in 2 CFR Part 200.31 7.
C. MBE/WBE Reporting, 40 CFR, Part 33, Subpart E (EPA Form 5700-52A) The recipient agrees to submit a "MBE/WBE Utilization Under Federal Grants and Cooperative Agreements" report (EPA Form 5700-52A) annually for the duration of the project period. The current EPA Form 5700-52A with instructions can be found at https://www.epa.qov/qrants/epa-form-57
This provision represents an approved exception from the MBE/WBE reporting requirements as described in 40 CFR Section 33.502.
Reporting is required for assistance agreements where Funds are budgeted for procuring construction, equipment, services and supplies (including funds budgeted for direct procurement by the recipient or procurement under subawards or loans in the "Other" category) with a cumulative total that exceed the Simplified Acquisition Threshold (SAT) currently, set at $250,000 (the dollar threshold will be automatically revised whenever the SAT is adjusted; See 2 CFR Section 200.1 ), including amendments and/or modifications. When reporting is required, all procurement actions are reportable, not just the portion which exceeds the SAT.
Recipients with expended and/or budgeted funds for procurement are required to report annually whether the planned procurements take place during the reporting period or not. If no budgeted procurements take place during the reporting period, the recipient should check the box in section 5B when completing the form.
When completing the annual report, recipients are instructed to check the box titled "annual" in section 1 B of the form. For 31 40
BF - 98T43301 - O Page 5
the final report, recipients are instructed to check the box indicated for the "last report" of the project in section 1 B of the form. For section 2B, the Region 9 EPA DBA Coordinator is Alexandrea Perez, email: [email protected], phone:
415-972-3826.
The annual reports are due by October 30th of each calendar year and the final report is due within 120 days afker the end of the project period, whichever comes first. The recipient will submit the MBE/WBE report(s) and/or questions to [email protected] and the EPA Grants Specialist identified on page 4 of the award document.
D. Indirect Costs
The Cost Principles under 2 CFR Part 200, Subpart E apply to this award. Since there are no indirect costs included in the assistance budget, they are not allowable under this Assistance Agreement.
Proqrammatic Conditions
Please note that these Terms and Conditions (T&Cs) apply to Brownfield Assessment Cooperative Agreements awarded under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) § 1 04(k).
1. GENERAL FEDERAL REQUIREMENTS
NOTE: For the purposes of these Terms and Conditions, the term "assessment" includes eligible activities under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) § 1 04(k%2%A)(i) such as activities involving the inventory, characterization, assessment, and planning relating to brownfield sites as described in the EPA-approved workplan.
A. Federal Policy and Guidance
1. Cooperative Aqreement Recipients: By awarding this cooperative agreement, the Environmental Protection Agency (EPA) has approved the application for the Cooperative Agreement Recipient (CAR) submitted in the Fiscal Year 2022 competition for Brownfield Assessment cooperative agreements.
EPA has conditionally approved the workplan. The recipient may incur costs on eligible activities associated with the conditionally-approved workplan up $500,000. Until a final revised workplan has been approved by EPA:
a. the recipient should not request payments and EPA will not make payments for unapproved work; and b. any costs incurred for unapproved work by the recipient are at its own risk.
2. ln implementing this agreement, the CAR shali ensure that work done with cooperative agreement funds complies with the requirements or CERCLA § 104(k). The CAR shall also ensure that assessment activities supported with cooperative agreement funding comply with all applicable federal and state laws and regulations.
3. A term and condition or other legally binding provision shall be included in all subawards entered into with the funds awarded under this agreement, or when funds awarded under this agreement are used in combination with non-federal sources of funds, to ensure that the CAR complies with all applicable federal and state laws and requirements. In addition to CERCLA § 1 04(k), federal applicable laws and requirements include 2 CFR Part 200.
4. The CAR must comply with federal cross-cutting requirements. These requirements include, but are not limited to, 41 BF - 98T43301 - O Page 6
DBE requirements found at 40 CFR Part 33; OSHA Worker Health & Safety Standard 29 CFR § 1910.120; Uniform Relocation Act (40 USC § 61); National Historic Preservation Act (16 USC § 470); Endangered Species Act (P.L. 93- 205); Permits required by Section 404 of the Clean Water Act; Executive Order 11246, Equal Employment Opportunity, and implementing regulations at 41 CFR § 60-4; Contract Work Hours and Safety Standards Act, as amended (40 USC §§ 327-333); the Anti-Kickback Act (40 USC § 276c); and Section 504 of the Rehabilitation Act of 1973 as implemented by Executive Orders 11914 and 11250. For additional information on cross-cutting requirements visit https://www.epa.qov/qrants/epa-subaward-cross-cutter-requirements.
5. The CAR must comply with Davis-Bacon Act prevailing wage requirements and associated u.s. Department of Labor (DOL) regulations for all construction, alteration, and repair contracts and subcontracts awarded with funds provided under this agreement by operation of CERCLA § 104(g). Assessment activities generally do not involve construction, alteration, and repair within the meaning of the Davis-Bacon Act. However, the recipient must contact the EPA Project Officer if there are unique circumstances (e.g., removal of an underground storage tank or another structure and restoration of the site) that indicate that the Davis-Bacon Act applies to an activity the CAR intends to carry out with funds provided under this agreement. EPA will provide guidance on Davis-Bacon Act compliance if necessary.
Davis-Bacon Terms and Conditions For Cooperative Aqreements to Governmental Entities
DAVIS-BACON PREVAILING WAGE TERM AND CONDITION
The following terms and conditions specify how Cooperative Agreement Recipients (CARs) will assist EPA in meeting its Davis-Bacon (DB) responsibilities when DB applies to EPA awards of financial assistance under CERCLA 1 04(g) and any other statute which makes DB applicable to EPA financial assistance. If a CAR has questions regarding when DB applies, obtaining the correct DB wage determinations, DB contract provisions, or DB compliance monitoring, they should contact the regional Brownfields Coordinator or Project Officer for guidance.
1. Applicability of the Davis-Bacon Prevailinq Waqe Requirements After consultation with DOL, EPA has determined that for Brownfields Grants for remediation of sites contaminated with hazardous substances and petroleum, DB prevailing wage requirement apply when the project includes the following activities.
Hazardous substances contamination:
(a) All construction, alteration and repair activity involving the remediation of hazardous substances, including excavation and removal of hazardous substances, construction of caps, barriers, structures which house treatment equipment, and abatement of contamination in buildings.
Petroleum contamination:
(a) Installing piping to connect households or businesses to public water systems or replacing public water system supply well(s) and associated piping due to groundwater contamination (b) Soil excavation/replacement when undertaken in conjunction with the installation of public water lines/wells described above, or
(c) Soil excavation/replacement, tank removal, and restoring the area by paving or pouring concrete when the soil excavation/replacement occurs in conjunction with both tank removal and paving or concrete replacement. 42 BF - 98T43301 - O Page 7
In the above circumstances, all the laborers and mechanics employed by contractors and subcontractors will be covered by the DB requirements for all construction work performed on the site. Other petroleum site cleanup activities such as in situ remediation, and soil excavation/replacement and tank removal when not in conjunction with paving or concrete replacement, will normally not trigger DB requirements.
If the CAR encounters a unique situation at a site (e.g., unusually extensive excavation, construction of permanent facilities to house in situ remediation systems, reconstruction of roadways) that presents uncertainties regarding DB applicability, the CAR must discuss the situation with EPA before authorizing work on that site.
2. Obtaininq Waqe Determinations
(a) Unless otherwise instructed by EPA on a project specific basis, the CAR shall use the following DOL General Wage Classifications for the locality in which the construction activity subject to DB will take place. CARs must obtain proposed wage determinations for specific localities at https://beta.sam.qov/. (i) When soliciting competitive contracts, awarding new contracts or issuing task orders, work assignments or similar instruments to existing contractors (ordering instruments), the CAR shall use the "Heavy Construction" classification for the following activities:
Hazardous substances contamination: excavation and removal of hazardous substances, construction of caps, barriers, and similar activities that do not involve construction of buildings.
Petroleum contamination: installing piping to connect households or businesses to public water systems or replacing public water system supply well(s) and associated piping, including soil excavation/replacement.
(ii) When soliciting competitive contracts, awarding new contracts, or issuing ordering instruments, the CAR shall use the "Building Construction" classification for the Following activities:
Hazardous substances contamination: construction of structures which house treatment equipment, and abatement of contamination in buildings (other than residential structures less than 4 stories in height).
Petroleum contamination: soil excavation/replacement, tank removal, and restoring the area by paving or pouring concrete when the soil excavation/replacement occurs in conjunction with both tank removal and paving or concrete replacement at current or former service station sites, hospitals, fire stations, industrial or freight terminal facilities, or other sites that are associated with a facility that is not used solely for the underground storage of fuel or other contaminant. (iii) When soliciting competitive contracts, awarding new contracts or issuing ordering instruments for soil excavation/replacement, tank removal, and restoring the area by paving or pouring concrete when the soil excavation/replacement occurs in conjunction with both tank removal and paving or concrete replacement at a facility that is used solely for the underground storage of fuel or other contaminant the CAR shall use the "Heavy Construction" classification. (Only applies to petroleum contamination.) (iv) When soliciting competitive contracts, awarding new contracts or issuing ordering instruments for the abatement of contamination in residential structures less than 4 stories in height the CAR shall use "Residential Construction" classification. (Only applies to hazardous substances contamination.) 43 BF - 98T43301 - O Page 8
Note: CARs must discuss unique situations that may not be covered by the General Wage Classifications described above with EPA. If, based on discussions with a CAR, EPA determines that DB applies to a unique situation (e.g., unusually extensive excavation) the Agency will advise the CAR which General Wage Classification to use based on the nature of the construction activity at the site. (b) CARs shall obtain the wage determination for the locality in which a Brownfields cleanup activity subject to DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that subcontractors follow the wage determination incorporated into the prime contract.
(i) While the solicitation remains open, the CAR shall monitor https://beta.sam.qov/ on a weekly basis to ensure that the wage determination contained in the solicitation remains current. The CAR shall amend the solicitation if DOL iSSues a modification more than 10 days prior to the closing date (i.e. bid opening) for the solicitation. If DOL modifies or supersedes the applicable wage determination less than 10 days prior to the closing date, the CAR may request a Finding from EPA that there is not a reasonable time to notify interested contractors of the modification of the wage determination. EPA will provide a report of the Agency's finding to the CAR.
(ii) If the CAR does not award the contract within 90 days of the closure of the solicitation, any modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be effective unless EPA, at the request of the CAR, obtains an extension of the 90-day period from DOL pursuant to 29 CFR 1.6(c)(3%iv). The CAR shall monitor https://beta.sam.qov/ on a weekly basis if it does not award the contract within 90 days of closure of the solicitation to ensure that wage determinations contained in the solicitation remain current.
(iii) IF the CAR carries out Brownfields cleanup activity subject to DB by issuing a task order, work assignment or similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation, the CAR shall insert the appropriate DOL wage determination from https://beta.sam.qov/ into the ordering instrument.
(c) CARs shall review all subcontracts subject to DB entered into by prime contractors to verify that the prime contractor has required its subcontractors to include the applicable wage determinations. (d) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a CAR's contract afker the award of a contract or the issuance of an ordering instrument if DOL determines that the CAR has failed to incorporate a wage determination or has used a wage determination that clearly does not apply to the contract or ordering instrument. If this occurs, the CAR shall either terminate the contract or ordering instrument and issue a revised solicitation or ordering instrument or incorporate DOL's wage determination retroactive to the beginning of the contract or ordering instrument by change order. The CAR's contractor must be compensated for any increases in wages resulting from the use of DOL's revised wage determination.
3. Contract and Subcontract Provisions
(a) The CAR shall insert in full in any contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from 44 BF - 98T43301 - O Page 9
funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to DB, the following labor standards provisions. (1 ) Minimum wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the applicable wage determination of the Secretary of Labor which the CAR obtained under the procedures specified in Item 2, above, and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics.
Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1 (b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a%l )(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less ofken than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1 %ii) of this section) and the Davis-Bacon poster (WH-1321 ) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. CARs shall require that the contractor and subcontractors include the name of the CAR employee or official responsible for monitoring compliance with DB on the poster. (ii)(A) The CAR, on behalf of EPA, shall require that contracts and subcontracts entered into under this agreement provide that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The EPA Award Official shall approve an additional classification and wage rate and Fringe benefits therefore only when the following criteria have been met:
(1 ) The work to be performed by the classification requested is not performed by a classification in the wage determination; and
(2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (ii%B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the CAR agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the CAR to the EPA Award 36 45
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Official. The Award Official will transmit the report, to the Administrator of the Wage and Hour Division, Employment Standards Administration, u.s. Department of Labor, Washington, DC 202'lO. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the award official or will noti$ the award official within the 30-day period that additional time is necessary.
(ii)(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the CAR do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the questions, including the views of all interested parties and the recommendation of the award official, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the Award Official within the 30-day period that additional time is necessary.
(ii)(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1 )(ii)(B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets fot the meeting of obligations under the plan or program.
(1 ) Withholding. The CAR, upon written request of the Award Official or an authorized representative of the Department of Labor, shall withhold or cause to withhold from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much or the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, EPA may, after written notice to the contractor, or CAR take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. (2) Payrolls and basic records.
(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafker for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for 37 46
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bona fide fringe benefits or cash equivalents thereof of the types described in section 1 (b)(2%B) or the Davis- Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a%1 %iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1 (b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii%A) The contractor shall submit weekly for each week in which any contract work is peformed a copy of al payrolls to the CAR who will maintain the records on behalf of EPA. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits ofthe employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division website at https://www.dol.qov/whd/forms/wh347.pdf or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the CAR for transmission to the EPA, if requested by EPA, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the CAR.
(ii)(B) Each payroll submitted to the CAR shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1 ) That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3%ii) of Regulations, 29 CFR Part 5, the appropriate information is being maintained under § 5.5 (a)(3%i) of Regulations, 29 CFR Part 5, and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR Part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract.
(ii%C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by 47 BF - 98T43301 - O Page 12
paragraph (a)(3)(ii%B) of this section.
(ii)(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section '1 0CY of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a%3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the EPA or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, EPA may, afker written notice to the contractor, CAR, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any Further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(3) Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the u.s. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship ptogram, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually peformed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. IT the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in 48 BF - 98T43301 - O Page 13
a program which has received prior approval, evidenced by formal certification by the u.s. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program.
If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30.
(4) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by reference in this contract. (5) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR
5.5(a)(1 ) through (10) and such other clauses as the EPA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this term and condition.
(6) Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. (7) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract. (8) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors), the CAR, borrower or subrecipient and EPA, the u.s. Department of Labor, or the employees or their representatives. (9) Certification of eligibility.
(i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts 49 BF - 98T43301 - O Page 14
by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a%1 ). (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.1 2(a)(1 ). (iii) The penalty for making false statements is prescribed in the u.s. Criminal Code, 18 u.s.c. iooi.
4. Contract Provisions for Contracts in Excess of $100,000 (a) Contract Work Hours and Safety Standards Act. The CAR shall insert the following clauses set forth in paragraphs (a%l ), (2), (3), and (4) of this section in full in any contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forky hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a%1 ) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a)(1 ) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a%1 ) of this section.
(3) Withholding for unpaid wages and liquidated damages. The CAR, upon written request of the Award Official or an authorized representative of the Department of Labor, shall withhold or cause to withhold from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (a)(2) of this section. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a%1 ) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a%1 ) through (4) of this section. (b) In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the CAR shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shal preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including 50 BF - 98T43301 - O Page 45
guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Further, the CAR shall insert in any such contract a clause providing that the records to be maintained under this paragraph shall be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job.
5. Compliance Verification
(a) The CAR shall periodically interview a sufficient number of employees entitled to DB prevailing wages (covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR
5.6(a)(6), all interviews must be conducted in confidence. The CAR must use Standard Form 1445 or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on request. (b) The CAR shall establish and follow an interview schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, the CAR must conduct interviews with a representative group of covered employees within two weeks of each contragtor or subcontractor's submission of its initial weekly payroll data and two weeks prior to the estimated completion date for the contract or subcontract. CARs must conduct more frequent interviews if the initial interviews or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. CARs shall immediately conduct necessary interviews in response to an alleged violation of the prevailing wage requirements. All interviews shall be conducted in confidence.
(c) The CAR shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that contractors or subcontractors are paying the appropriate wage rates. The CAR shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, the CAR must spot check payroll data within two weeks of each contractor or subcontractor's submission of its initial payroll data and two weeks prior to the completion date the contract or subcontract. CARs must conduct more frequent spot checks if the initial spot check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In addition, during the examinations the CAR shall verify evidence of fringe benefit plans and payments thereunder by contractors and subcontractors who claim credit for fringe benefit contributions. (d) The CAR shall periodically review contractors and subcontractors use of apprentices and trainees to verify registration and certification with respect to apprenticeship and training programs approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and (c) above. (e) CARs must immediately report potential violations of the DB prevailing wage requirements to the EPA DB contact listed above and to the appropriate DOL Wage and Hour District Office listed at https://www.dol.qov/whd/america2.htm.
II. SITE ELIGIBILITY REQUIREMENTS
A. Eligible Brownfield Site Determinations
1. All brownfield sites that will be addressed using funds from the cooperative agreement must be located within the target area(s) described in the scope of work for this cooperative agreement (i.e., the EPA-approved workplan). The 51 BF - 98T43301 - O Page 16
CAR must provide information to the EPA Project Officer about site-specific work prior to incurring any costs under this cooperative agreement. The information that must be provided includes whether the site meets the definition of a brownfield site as defined in CERCLA § 1 C)1(39), and whether the CAR is the potentially responsible party under CERCLA § 107, is exempt from CERCLA liability, and/or has defenses to CERCLA liability. This requirement does not apply to site-specific assessment cooperative agreements where this information has been previously provided and approved in threshold eligibility review of the application, and where sites have already been pre-approved by EPA in the CAR's workplan.
2. If the site is excluded from the general definition of a brownfield, but is eligible for a property-specific funding determination, then the CAR may request a property-specific funding determination from the EPA Project Officer. In its request, the CAR must provide information sufficient for EPA to make a property-specific funding determination on how financial assistance will protect human health and the environment, and either promote economic development or enable the creation of, preservation of, or addition to parks, greenways, undeveloped property, other recreational property, or other property used for nonprofit purposes. The CAR must not incur costs for assessing sites requiring a property-specific funding determination by EPA until the EPA Project Officer has advised the CAR that EPA has determined that the properiy is eligible.
3. Brownfield Sites Contaminated with Petroleum
a. For any petroleum-contaminated brownfield site that is not included in the CAR's EPA-approved workplan, the CAR shall provide sufficient documentation to EPA prior to incurring costs under this cooperative agreement which documents that:
i. the State determines there is "no viable responsible party" for the site; ii. the State determines that the person assessing or investigating the site is a person who is not potentially liable for cleaning up the site; and
iii. the site is not subject to any order issued under Section 9003(h) of the Solid Waste Disposal Act.
This documentation must be prepared by the CAR or the State, following contact and discussion with the appropriate state petroleum program official. Please contact the EPA Project Officer for additional information. b. Documentation must include:
i. theidentityoFtheStateprogramofficialcontacted;
ii. the State official's telephone number;
iii. the date of the contact; and
iv. a summary of the discussion relating to the State's determination that there is no viable responsible party and that the person assessing or investigating the site is not potentially liable for cleaning up the site.
Other documentation provided by a State to the recipient relevant to any of the determinations by the State must also be provided to the EPA Project Officer. c. If the State chooses not to make the determinations described in Section 11.A.3. above, the CAR must contact the EPA Project Officer and provide the necessary information for EPA to make the requisite 52 BF - 98T43301 - O Page 17
determinations.
d. EPA will make all determinations on the eligibility of petroleum-contaminated brownfield sites located on tribal lands (i.e., reservation lands or lands otherwise in Indian country, as defined at 18 u.s.c. § 1151 ).
Before incurring costs for these sites, the CAR must contact the EPA Project Officer and provide the necessary information for EPA to make the determinations.
Ill. GENERAL COOPERATIVE AGREEMENT ADMINISTRATIVE REQUIREMENTS A. Sufficient Progress
L This condition supplements the requirements of the Termination and Sufficient Progress Conditions in the General Terms and Conditions.
EPA's Project Officer will assess whether the recipient is making sufficient progress in implementing its cooperative agreement 18 months and 30 months from the date of award. EPA determines that the CAR has not made sufficient progress in implementing its cooperative agreement, the CAR, if directed to do so, must implement a corrective action plan concurred on by the EPA Project Officer and approved by the Award Official or Grants Management Officer.
Alternatively, EPA may terminate this agreement under 2 CFR § 200.340 for material non-compliance with its terms, or with the consent of the CAR as provided at 2 CFR § 200.340, depending on the circumstances.
Sufficient progress at 18 months is indicated when:
at least 25% of funds have been drawn down and disbursed for eligible activities; a solicitation for a Qualified Environmental Professional(s) has been released; sites are prioritized or an inventory has been initiated (unless site prioritization or an inventory was completed prior to award);
community involvement activities have been initiated; and/or other documented activities have occurred that demonstrate to EPA's satisfaction that the CAR will successfully perform the cooperative agreement.
Sufficient progress at is indicated when:
at least 45% of funds have been drawn down and disbursed for eligible activities; a Qualified Environmental Professional(s) has been procured; assessments on at least two sites have been initiated; and/or other documented activities have occurred that demonstrate to EPA's satisfaction that the CAR will successfully perform the cooperative agreement.
B. Substantial Involvement
1. The EPA Project Officer will be substantially involved in overseeing and monitoring this cooperative agreement.
Substantial involvement, includes, but is not limited to:
a. Close monitoring of the CAR's performance to verify compliance with the EPA-approved workplan and achievement of environmental results.
b. Participation in periodic telephone conference calls to share ideas, project successes and challenges, 44 53
BF - 98T43301 - O Page 18
etc., with EPA.
c. Reviewing and commenting on quarterly and annual reports prepared under the cooperative agreement (the final decision on the content of reports rests with the recipient or subrecipients receiving pass-through awards).
d. Verifying sites meet applicable site eligibility criteria (including property-specific funding determinations described in Section 11.A.2.) and when the CAR awards a subaward for site assessment. The CAR must obtain technical assistance from the EPA Project Officer, or his/her designee, on which sites qualify as a brownfield site and determine whether the statutory prohibitions found in CERCLA § 1 04(k)(5%B)(i)-(iv) apply. (Note, the prohibition does not allow a subrecipient to use EPA cooperative agreement funds to assess a site for which the subrecipient is potentially liable under CERCLA § 107.) e. Reviewing and approving Quality Assurance Project Plans and related documents or verifying that appropriate Quality Assurance requirements have been met where quality assurance activities are being conducted pursuant to an EPA-approved Quality Assurance Management Plan.
Substantial involvement may also include, depending on the direction of the EPA Project Officer:
f. Collaboration during the performance of the scope of work including participation in project activities, to the extent permissible under EPA policies. Examples of collaboration include:
i. Consultation between EPA staff and the CAR on effective methods of carrying out the scope of work provided the CAR makes the final decision on how to perform authorized activities.
Advice from EPA staff on how to access publicly available information on EPA or other federal agency websites.
iii. With the consent of the CAR, EPA staff may provide technical advice to the CAR's contractors or subrecipients provided the CAR approves any expenditures of funds necessary to follow advice from EPA staff. (The CAR remains accountable for performing contract and subaward management as specified in 2 CFR § 200.318 and 2 CFR § 200.332 as well as the terms of the EPA cooperative agreement.)
iv. EPA staff participation in meetings, webinars, and similar events upon the request of the CAR or in connection with a co-sponsorship agreement.
g. Reviewing proposed procurements in accordance with 2 CFR § 200.325, as well as the substantive terms of proposed contracts or subawards as appropriate.
h. Reviewing the qualifications of key personnel (EPA does not have the authority to select employees or contractors, including consultants, employed by the award CAR). i. Reviewing all costs incurred by the CAR and/or its contractor(s) if needed to ensure appropriate expenditure of grant funds.
EPA may waive any of the provisions in Section III.B.1., except for property-specific funding determinations. The EPA Project Officer will provide waivers to provisions a. - e. in Section III.B.1 in writing.
2. Effects of EPA's substantial involvement include:
54 BF - 98T43301 - O Page 19
a. EPA's review of any project phase, document, or cost incurred under this cooperative agreement will not have any effect upon CERCLA § 128 Eligible Response Site determinations or rights, authorities, and actions under CERCLA or any federal statute.
b. The CAR remains responsible for ensuring that all assessments are protective of human health and the environment and comply with all applicable federal and state laws. c. The CAR and its subrecipients remain responsible for ensuring costs are allowable under 2 CFR Part 200, Subpart E.
C. Cooperative Agreement Recipient Roles and Responsibilities
1. CARs, other than state entities, that procure a contractor(s) (including consultants) where the contract will be more than the micro-purchase threshold in 2 CFR § 200.320(a)(1 ) ($1 0,000 for most CARs) must select the contractor(s) in compliance with the fair and open competition requirements in 2 CFR Part 200 and 2 CFR Part 1500. CARs may procure multiple contractors to ensure the appropriate expertise is in place to perform work under the agreement (e.g., expertise to conduct site assessment activities vs. planning activities) and to allow the ability for work be performed concurrently in multiple target areas and/or at sites.
2. The CAR must acquire the services of a Qualified Environmental Professional(s) as defined in 40 CFR § 312.10, if it does not have such a professional on staff to coordinate, direct, and oversee the brownfield site assessment activities at a given site.
3. Cybersecurity - The recipient agrees that when collecting and managing environmental data under this cooperative agreement, it will protect the data by following all applicable state or tribal law cybersecurity requirements. a. EPA must ensure that any connections between the recipient's network or information system and EPA networks used by the recipient to transfer data under this agreement are secure. For purposes of this section, a connection is defined as a dedicated persistent interface between an Agency IT system and an external IT system for the purpose of transferring information. Transitory, user-controlled connections such as website browsing are excluded from this definition.
If the recipient's connections as defined above do not go through the Environmental Information Exchange Network or EPA's Central Data Exchange, the recipient agrees to contact the EPA Project Officer no later than 90 days after the date of this award and work with the designated Regional/ Headquarters Information Security Officer to ensure that the connections meet EPA security requirements, including entering into Interconnection Service Agreements as appropriate. This condition does not apply to manual entry of data by the recipient into systems operated and used by EPA's regulatory programs for the submission of reporting and/or compliance data.
b. The recipient agrees that any subawards it makes under this agreement will require the subrecipient to comply with the requirements in Cybersecurity Section a. above if the subrecipient's network or information system is connected to EPA networks to transfer data to the Agency using systems other than the Environmental Information Exchange Network or EPA's Central Data Exchange. The recipient will be in compliance with this condition: by including this requirement in subaward agreements; and during subrecipient monitoring deemed necessary by the recipient under 2 CFR § 200.332(d), by inquiring whether the subrecipient has contacted the EPA Project Officer. Nothing in this condition requires the recipient to contact the EPA Project Officer on behalf of a subrecipient or to be involved in the negotiation of an 55 BF - 98T43301 - O Page 20
Interconnection Service Agreement between the subrecipient and EPA.
7. All geospatial data created must be consistent with Federal Geographic Data Committee (FGDC) endorsed standards. Information on these standards may be found at .
0. Quarterly Progress Reports
L In accordance with EPA regulations 2 CFR Parts 200 and 1500 (specifically, § 200.329, Monitoring and Reporting Program Performance}, the CAR agrees to submit quarterly progress reports to the EPA Project Officer within 30 days after each reporting period. The reporting periods are October 1- December 31 (1a' quarter); January 1- March 31 (2 " quarter); April 1- June 30 (3'd quarter); and July 1- September 30 (4'h quarter).
These reports shall cover work status, work progress, difficulties encountered, preliminary data results and a statement of activity anticipated during the subsequent reporting period, including a description of equipment, techniques, and materials to be used or evaluated. A discussion of expenditures and financial status for each workplan task, along with a comparison of the percentage of the project completed to the project schedule and an explanation of significant discrepancies shall be included in the report. The report shall also include any changes of key personnel concerned with the project.
The CAR shall refer to and utilize the Quarterly Reporting function within the Assessment, Cleanup and Redevelopment Exchange System (ACRES) to submit quarterly reports unless approval is obtained from the EPA Project Officer to use an alternate format for reports.
2. The CAR must submit progress reports on a quarterly basis in ACRES. Quarterly progress reports must include:
a. A summary that clearly differentiates between activities completed with EPA funds provided under the Brownfield Assessment cooperative agreement and related activities completed with other sources of leveraged funding.
b. A summary and status of approved activities performed during the reporting quarter; a summary of the performance outputs/outcomes achieved during the reporting quarter; and a description of problems encountered during the reporting quarter that may affect the project schedule. c. A comparison of actual accomplishments to the anticipated outputs/outcomes specified in the EPA- approved workplan and reasons why anticipated outputs/outcomes were not met. d. An update on the project schedule and milestones, including an explanation of any discrepancies from the EPA-approved workplan.
e. A list of the properties where assessment activities were performed and/or completed during the reporting quarter.
f. A budget summary table with the following information: current approved project budget; EPA funds drawn down during the reporting quarter; costs drawn down to date (cumulative expenditures); program income generated and used (if applicable) (i.e., program income received and disbursed during the reporting quarter and during the entire cooperative agreement, and the amount of program income remaining); and total remaining funds. The CAR should include an explanation of any discrepancies in the budget from the EPA- approved workplan, cost overruns or high unit costs, and other pertinent information. 56 BF - 98T43301 - O Page 21
g. For local governments that are using cooperative agreement funds for health monitoring, the quarterly report must also include the specific budget, the quarterly expenditure, and cumulative expenditures to demonstrate that 1 0% of federal funding is not exceeded.
Note: Each property where assessment activities were performed and/or completed must have its corresponding information updated in ACRES (or via the Property Profile Form with prior approval from the EPA Project Officer) p3y;4 to submitting the quarterly progress report (see Section III.E. below).
3. The CAR must maintain records that will enable it to report to EPA on the amount of funds disbursed by the CAR to assess specific properties under this cooperative agreement.
4. In accordance with 2 CFR § 200.329(e%l ), the CAR agrees to inform EPA as soon as problems, delays, or adverse conditions become known which will materially impair the ability to meet the outputs/outcomes specified in the EPA-approved workplan.
E. Property Profile Submission
1. The CAR must report on interim progress (i.e., assessment started) and any final accomplishments (i.e., assessment completed, clean up required, contaminants, institutional controls, engineering controls) by completing and submitting relevant portions of the Property Profile Form using the Assessment, Cleanup and Redevelopment Exchange System (ACRES). The CAR must enter the data in ACRES as soon as the interim action or final accomplishment has occurred, or within 30 days after the end of each reporting quarter. The CAR must enter any new data into ACRES prior to submitting the quarterly progress report to the EPA Project Officer. The CAR must utilize ACRES unless approval is obtained from the EPA Project Officer to utilize the hardcopy version of the Property Profile Form.
F. Final Technical Cooperative Agreement Report with Environmental Results
1. In accordance with EPA regulations 2 CFR Parts 200 and 1500 (specifically, § 200.329, Monitoring and Reporting Program Performance and 2 CFR § 200.344(a), Closeout), the CAR agrees to submit to the EPA Project Officer within 120 days afker the expiration or termination of the approved project period a final technical report on the cooperative agreement via email; unless the EPA Project Officer agrees to accept a paper copy of the report. The final technical repork shall document project activities over the entire project period and shall include brief information on each of the following areas:
a. a comparison of actual accomplishments with the anticipated outputs/outcomes specified in the EPA- approved workplan;
b. reasons why anticipated outputs/outcomes were not met; and c. other pertinent information, including when appropriate, analysis and explanation of cost overruns or high unit costs.
IV. FINANCIAL ADMINISTRATION REQUIREMENTS
A. Eligible Uses of the Funds for the Cooperative Agreement Recipient
1. To the extent allowable under the EPA-approved workplan, cooperative agreement funds may be used for eligible programmatic expenses to inventory, characterize, assess sites; conduct site-specific planning, general brownfield- 57 BF - 98T43301 - O Page 22
related planning activities around one or more brownfield sites, and outreach. Eligible programmatic expenses include activities described in Section V. of these Terms and Conditions. In addition, eligible programmatic expenses may include:
a. Determining whether assessment activities at a particular site are authorized by CERCLA § 1 04(k). b. Ensuring that an assessment complies with applicable requirements under federal and state laws, as required by CERCLA § 104(k).
c. Preparing and updating an Analysis of Brownfield Cleanup Alternatives (ABCA) which will include information about the site and contamination issues, cleanup standards, applicable laws, alternatives considered, and the proposed cleanup.
d. Developing a Quality Assurance Project Plan (QAPP) as required by 2 CFR § 1500.12. The specific requirement for a QAPP is outlined in Implementation of Quality Assurance Requirements for Organizations Receiving EPA Financial Assistance available at https://www.epa.qov/qrants/implementation-quality- assurance-requirements-orqanizations-receivinq-epa-financial. e. Using a portion of the cooperative agreement funds to purchase environmental insurance for the characterization or assessment of the site. [Funds shall not be used to purchase insurance intended to provide coverage for any of the ineligible uses under Section IV., Ineligible Uses of the Funds for the Cooperative Agreement Recipient.}
f. Any other eligible programmatic costs, including direct costs incurred by the recipient in reporting to EPA; procuring and managing contracts; awarding, monitoring, and managing subawards to the extent required to comply with 2 CFR § 200.332 and the "Establishing and Managing Subawards" General Term and Condition; and carrying out community involvement pertaining to the assessment activities.
2. Local Governments Only - If authorized in the EPA-approved workplan and budget narrative, up to 10% of the funds awarded by this agreement may be used by the CAR itself as a programmatic cost for Brownfield Program development and implementation of monitoring health conditions and institutional controls. The health monitoring activities must be associated with brownfield sites at which at least a Phase II environmental site assessment is conducted and is contaminated with hazardous substances. The CAR must maintain records on funds that will be used to carry out this task to ensure compliance with this requirement.
3. Under CERCLA § 1 04(k)(5%E), CARs and subrecipients may use up to 5% of the amount of federal Tunding for this cooperative agreement for administrative costs, including indirect costs under 2 CFR § 200.414. The limit on administrative costs for the CAR under this agreement is $25,000. The total amount of indirect costs and any direct costs for cooperative agreement administration by the CAR paid for by EPA under the cooperative agreement shall not exceed this amount. Subrecipients may use up to 5% of the amount of Federal funds in their subawards for administrative costs. As required by 2 CFR § 200.403(d), the CAR and subrecipients must classify administrative costs as direct or indirect consistently and shall not classify the same types of costs in both categories. The term "administrative costs" does not include:
a. Investigation and identification of the extent of contamination of a brownField site; b. design and performance of a response action; or
c. monitoring of a natural resource.
58 BF - 98T43301 - O Page 23
Eligible cooperative agreement and subaward administrative costs subject to the 5% limitation include direct costs for:
a. Costs incurred to comply with the following provisions of the Uniform Administrative Requirements for Cost Principles and Audit Requirements for Federaj Awards at 2 CFR Parts 200 and 1500 other than those identified as programmatic.
i. Record-keeping associated with equipment purchases required under 2 CFR § 200.31 3; ii. Preparing revisions and changes in the budgets, scopes of work, program plans and other activities required under 2 CFR § 200.308;
iii. Maintaining and operating Financial management systems required under 2 CFR § 200.302; iv. Preparing payment requests and handling payments under 2 CFR § 200.305; v. Financial reporting under 2 CFR § 200.328;
vi. Non-federal audits required under 2 CFR Part 200, Subpart F; and vi. Closeout under 2 CFR § 200.344 with the exception of preparing the recipient's final performance report. Costs for preparing this report are programmatic and are not subject to the 5% limitation on direct administrative costs.
b. Pre-award costs for preparation of the proposal and application for this cooperative agreement (including the final workplan) or applications for subawards are not allowable as direct costs but may be included in the CAR's or subrecipient's indirect cost pool to the extent authorized by 2 CFR § 200.460.
B. Ineligible Uses of the Funds for the Cooperative Agreement Recipient
1. Cooperative agreement funds shall not be used by the CAR for any of the following activities:
a. Cleanup activities;
b. Site development activities that are not brownfield site assessment activities (e.g., marketing of property (activities or products created specifically to attract buyers or investors) or construction of a new facility); c. General community visioning, area-wide zoning updates, design guideline development, master planning, green infrastructure, infrastructure service delivery, and city-wide or comprehensive planning/plan updates - these activities are all ineligible uses of grant funds if unrelated to advancing cleanup and reuse of brownfield sites or sites to be assessed. Note: for these types of activities to be an eligible use of grant funds, there must be a specific nexus between the activity and how it will help further cleanup and reuse of the priority brownfield site(s). This nexus must be clearly described in the workplan for the project; d. Job training activities unrelated to performing a specific assessment at a site covered by the cooperative agreement;
e. To pay for a penalty or fine;
f. To pay a federal cost share requirement (e.g., a cost share required by another federal grant) unless there is specific statutory authority;
59 BF - 98T43301 - O Page 24
g. To pay for a response cost at a brownfield site for which the CAR or subaward recipient is potentially liable under CERCLA § 1 07;
h. To pay a cost of compliance with any federal law, excluding the cost of compliance with laws applicable to the assessment; and
i. Unallowable costs (e.g., lobbying and purchases of alcoholic beverages) under 2 CFR Part 200, Subpart E.
2. Cooperative agreement funds shall not be used for any of the following properties:
a. Facilities listed, or proposed for listing, on the National Priorities List (NPL); b. Facilities subject to unilateral administrative orders, court orders, and administrative orders on consent or judicial consent decree issued to or entered by parties under CERCLA; c. Facilities that are subject to the jurisdiction, custody or control of the United States government except for land held in trust by the Llnited States government for an Indian tribe; or d. A site excluded from the definition of a brownfield site for which EPA has not made a property-specific funding determination.
3. As required by 2 CFR § 200.302, the CAR must maintain accounting records documenting the receipt and disbursement of program income.
4. The recipient must provide as part of its quarterly performance report and final technical report a description of how program income is being used. Further, a report on the amount of program income earned during the award period must be submitted with the quarterly performance report, final technical report, and Federal Financial Report (Standard Form 425).
V. ASSESSMENT REQUIREMENTS
A. Authorized Assessment Activities
1. Prior to conducting or engaging in any on-site activity with the potential to impact historic properties (such as invasive sampling), the CAR shall consult with the EPA Project Officer regarding potential applicability of the National Historic Preservation Act (NHPA) (16 USC § 470) and, if applicable, shall assist EPA in complying with any requirements of the NHPA and implementing regulations.
2. If funds from this cooperative agreement are used to prepare an Analysis of Brownfield Cleanup Alternatives (ABCA), or equivalent state Brownfields program document, the CAR must include information about the site and contamination issues (i.e., exposure pathways, identification of contaminant sources, etc.); cleanup standards; applicable laws; alternatives considered; and the proposed cleanup. The evaluation of alternatives must include effectiveness, ability to implement, and the cost of the response proposed. The evaluation of alternatives must also consider the resilience of the remedial options to address potential adverse impacts caused by extreme weather events (e.g., sea level rise, increased frequency and intensity of flooding, etc.). The alternatives may additionally consider the degree to which they reduce greenhouse gas discharges, reduce energy use or employ alternative energy sources, reduce volume of wastewater generated/disposed of, reduce volume of materials taken to landfills, and recycle and re-use materials generated during the cleanup process to the maximum extent practicable. The evaluation 60 BF - 98T43301 - O Page 25
will include an analysis of reasonable alternatives including no action. The cleanup method chosen must be based on this analysis.
B. Quality Assurance (QA) Requirements
1. When environmental data are collected as part of the brownfield assessment, the CAR shall comply with 2 CFR § 1500.12 requirements to develop and implement quality assurance practices sufficient to produce data adequate to meet project objectives and to minimize data loss. State law may impose additional QA requirements. Recipients implementing environmental programs within the scope of the assistance agreement must submit to the EPA Project Officer an approvable Quality Assurance Project Plan (QAPP) at least 45 prior to the initiating of data collection or data compilation. The Quality Assurance Project Plan (QAPP) is the document that provides comprehensive details about the quality assurance, quality control, and technical activities that must be implemented to ensure that project objectives are met. Environmental programs include direct measurements or data generation, environmental modeling, compilation of data from literature or electronic media, and data supporting the design, construction, and operation of environmental technology.
This grant includes the performance of environmental measurements, therefore, a QA Plan, a Sampling and Analysis Plan, or other comparable document covering QA activities must be prepared before any sampling or cleanup activities at the site may begin The QA Plan must be approved by the EPA Project Officer, the Region 9 Quality Assurance Manager, and the recipient's Quality Assurance Officer before measurement activities are undertaken. The recipient should consult with the Region 9 Quality Assurance Branch (415-972-3431 ) to determine what type of QA document is required.
2. Competency of Organizations Generating Environmental Measurement Data: In accordance with Agency Policy Directive Number FEM-2012-02, Policy to Assure the Competency of Organizations Generating Environmental Measurement Data under Agency-Funded Assistance Agreements, the CAR agrees, by entering into this agreement, that it has demonstrated competency prior to award, or alternatively, where a pre-award demonstration of competency ig not practicable, the CAR agrees to demonstrate competency prior to carrying out any activities under the award involving the generation or use of environmental data. The CAR shall maintain competency for the duration of the project period of this agreement and this will be documented during the annual reporting process. A copy of the Policy is available online at http://www.epa.qov/fem/lab comp.htm or a copy may also be requested by contacting the EPA Project Officer for this award.
C. Community Outreach
1. The CAR agrees to clearly reference EPA investments in the project during all phases of community outreach outlined in the EPA-approved workplan which may include the development of any post-project summary or success materials that highlight achievements to which this project contributed. a. If any documents, fact sheets, and/or web materials are developed as part of this cooperative agreement, then they shall comply with the Acknowledgement Requirements for Non-ORD Assistance Agreements in the 61 BF - 98T43301 - O Page 26
General Terms and Conditions of this agreement.
b. If a sign is developed as part of a project funded by this cooperative agreement, then the sign shall include either a statement (e.g., this project has been funded, wholly or in part, by EPA) and/or EPA's logo acknowledging that EPA is a source of Tunding for the project. The EPA logo may be used on project signage when the sign can be placed in a visible location with a direct linkage to site activities. Use of the EPA logo must follow the sign specifications available at https://ww.epa.qov/qrants/epa-loqo-seal-speciTications- siqnaqe-produced-epa-assistance-aqreement-recipients.
2. The CAR agrees to notify the EPA Project Officer of public or media events publicizing the accomplishment of significant events related to construction and/or site reuse projects as a result of this agreement, and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days' notice.
3. To increase public awareness or projects serving communities where English is not the predominant language, CARs are encouraged to include in their outreach strategies communication in non-English languages. Translation costs for this purpose are allowable, provided the costs are reasonable.
4. All public awareness activities conducted with EPA funding are subject to the provisions in the General Terms and Conditions on compliance with section 504 of the Americans with Disabilities Act.
D. All Appropriate Inquiry
1. As required by CERCLA § 104(k)(2)(B)(ii) and CERCLA § 101 (35%B), the CAR shall ensure that a Phasel site characterization and assessment carried out under this agreement will be performed in accordance with EPA's all appropriate inquiries regulation (AAI). The CAR shall utilize the practices in ASTM standard E1527-13 "Standard Practices for Environmental Site Assessment: Phase lEnvironmental Site Assessment Process" (or the latest recognized ASTM standard at the time the assessment is performed), or EPA's All Appropriate Inquiries Final Rule (40 CFR Part 312). A suggested outline for an 441 final report is provided in"A// Appropriate Inquiries Rule: Reporting Requirements and Suggestions on Report Content" (Publication Number: EPA 560-F-14-003). This does not preclude the use of cooperative agreement funds for additional site characterization and assessment activities that may be necessary to characterize the environmental impacts at the site or to comply with applicable state standards.
2. AAI final reports produced with funding from this agreement must comply with 40 CFR Part 312 and must, at a minimum, include the information below. All AAI reports submitted to the EPA Project Officer as deliverables under this agreement must be accompanied by a completed "A// Appropriate Inquiries: Reporting Requirements Checklist for Assessment Grant Recipients" (Publication Number: EPA 560-F-17-194) that the EPA Project Officer will provide to the recipient. The checklist is available to CARs on EPA's website at www.epa.qov/brownfields. The completed checklist must include:
a. An opinion as to whether the inquiry has identified conditions indicative of releases or threatened releases of hazardous substances, and as applicable, pollutants and contaminants, petroleum or petroleum products, or controlled substances, on, at, in, or to the subject property. b. An identification of "significant" data gaps (as defined in 40 CFR § 312.10), if any, in the information collected for the inquiry. Significant data gaps include missing or unattainable information that affects the ability of the environmental professional to identify conditions indicative of releases or threatened releases of hazardous substances, and as applicable, pollutants and contaminants, petroleum or petroleum products, or controlled substances, on, at, in, or to the subject property. The documentation of significant data gaps must 53 62
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include information regarding the significance of these data gaps. c. Qualifications and signature of the environmental professional(s). The environmental professional must place the following statements in the document and sign the document:
'71, Wel declare that, to the best of [my, ourl professional knowledge and belief, //, wel meet the definition of Environmental Professional as defined in 40 CFR § 312.10 of this part." '7/, Wel have the specific qualifications based on education, training, and experience to assess a property of the nature, history, and setting of the subject property. //, Wel have developed and performed the all appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Part 312." Note: Please use either "l/my" or "We/our."
d. In compliance with 40 CFR § 312.31 (b), the environmental professional must include in the final report an opinion regarding additional appropriate investigation, if the environmental professional has such an opinion.
3. EPA may review checklists and AAI final reports for compliance with the AAI regulation documentation requirements at 40 CFR Part 312 (or comparable requirements for those using ASTM Standard 1527-13 or the latest recognized ASTM standard at the time the assessment is performed). Any deficiencies identified during an EPA review of these documents must be corrected by the recipient within 30 days of notification. Failure to correct any identified deficiencies may result in EPA disallowing the costs for the entire AAI report as authorized by 2 CFR § 200.339. If a recipient willfully fails to correct the deficiencies EPA may consider other available remedies under 2 CFR § 200.339 and 2 CFR 200.340.
E. Completion of Assessment Activities
1. The CAR shall properly document the completion of all activities described in the EPA- approved workplan. This must be done through a final report or letter from a Qualified Environmental Professional, or other documentation provided by a State or Tribe that shows assessments are complete.
F. Inclusion of Additional Terms and Conditions
1. In accordance with 2 CFR § 200.334, the CAR shall maintain records pertaining to the cooperative agreement for a minimum of three (3) years following submission of the final financial report unless one or more of the conditions described in the regulation applies. The CAR shall provide access to records relating to assessments supported with Assessment cooperative agreement funds to authorized representatives of the Federal government as required by 2 CFR § 200.337.
2. The CAR has an ongoing obligation to advise EPA if it assessed any penalties resulting from environmental non- compliance at sites subject to this agreement.
Vl. PAYMENT AND CLOSEOUT
For the purposes of these Terms and Conditions, the following definitions apply: "payment" is EPA's transfer of funds to the CAR; "closeout" refers to the process EPA follows to ensure that all administrative actions and work required under the cooperative agreement have been completed.
A. Payment Schedule
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1. The CAR may request advance payment from EPA pursuant to 2 CFR § 200.305(b%1 ) and the prompt disbursement requirements of the General Terms and Conditions of this agreement.
This requirement does not apply to states which are subject to 2 CFR § 200.305(a).
B. Schedule for Closeout
1. Closeout will be conducted in accordance with 2 CFR § 200.344. EPA will close out the award when it determines that all applicable administrative actions and all required work under the cooperative agreement have been completed.
2. The CAR, within 120 days after the expiration or termination of the cooperative agreement, must submit al financial, performance, and other reports required as a condition of the cooperative agreement. a. The CAR must submit the following documentation:
I. The Final Technical Cooperative Agreement Report as described in Section llliFi of these Terms and Conditions.
II. Administrative and Financial Reports as described in the General Terms and Conditions of this agreement.
b. The CAR must ensure that all appropriate data have been entered into ACRES or all hardcopy Property Profile Forms are submitted to the EPA Project Officer. c. As required by 2 CFR § 200.344, the CAR must immediately refund to EPA any balance of unobligated (unencumbered) advanced cash or accrued program income that is not authorized to be retained for use on other cooperative agreements.
### END OF DOCUMENT ###
64 1
CITY OF SOUTH GATE
MID-YEAR REPORT
FEBRUARY 23, 2023
AGENDA
• Sales Tax Presentation
• Fund Balances Fiscal Year 2021‐22
• Proposed Budget Modifications
• Financial Status Update Fiscal Year 2022‐23
• City Council Questions/Comments
1 2
65 2
SALES AND USE TAX
CALIFORNIA SALES AND USE TAX COMPONENTS
Bradley‐Burns
(City General
Fund)
1.00%
County
Transportation
0.25%
Public Safety
Augmentation
Fund
0.50%
County
Corrections
1.06%
County Health & Welfare
0.50%
State General Fund
3.94%
District Tax*
3.00%
Bradley‐Burns (City General Fund)
County Transportation
Public Safety Augmentation Fund
County Corrections
County Health & Welfare
State General Fund
District Tax*
South Gate
Sales Tax
10.25%
*includes 1% for Measure P
3 4
66 3
SALES & USE TAX –L O C A L
• Bradley‐Burns Tax – City receives 1% of Sales for eligible goods • Tangible personal property is any material asset, such as household goods and business equipment, which is readily movable and not permanently attached to real property. • Example of 10.25% sales tax on a $100 purchase
• Total Sales Tax paid is $10.25
• South Gate receives $1.00
• Sales Tax is applied to purchases made at a physical location in South Gate. • Use Tax is applied to purchases made from an out‐of‐state vendor and shipped to the County where they are being used.
• Examples of Use Tax are catalog or online orders
• City shares in County/State pool allocations
SALES & USE TAX –L O C A L (cont.)
•Use Tax Allocations
• If the County can be identified as the place of Use –i t will go to the county pool • If the County cannot be identified as the place of Use ‐ it will go to state pool • All pools are distributed to each jurisdiction based on pro rata share • County Pool makes up 16%‐18% (historically) of total sales & use taxes received • State Pool allocations are very minimal (less than 0.1%) 5 6
67 4
Major
Industry
Groups
District Tax
• Voters of City/County can approve an additional Sales & Use tax from .10% to 1.00% per district.
• Max District Tax Rate is 3.00% in Los Angeles County
• South Gate Measure P is a District Tax for 1.00%
• Propositions A and C are District Tax by Metro (1/2 cent each proposition) • Measure R and M are District Tax by Metro (1/2 cent each measure) • 7.25% (State) plus 3.00% (District) equals 10.25%.
• “District” entities include:
• Cities
• Counties
• Special Districts
• Transportation Authorities
7 8
68 5
SALES TAX – FOOD PRODUCTS
NONTAXABLE TAXABLE
Sales Taxable
Products
9 10
69 6
SALES TAX ‐ SERVICES
• Labor Nontaxable (Repair/Installation) • Labor Taxable (Fabrication/Assembly) SALES TAX – GOVERNMENT
• Nontaxable Government Sales (Federal
Agencies)
• Taxable Government Sales (Local and State
Agencies)
11 12
70 7
Top 25 Bradley‐Burns Local Tax Producers
(random order)
• Alliance California Laundry
• McDonalds
• Arco AM PM
• Northgate Market
• Blue Diamond Materials
• Sam’s Club
• Brenntag Pacific
• South Gate Arco
• Central Ford
• T Mobile
• Chevron
• Target
• Curacao
• Ulta Beauty
• dd’s Discount
• United Rentals
• Frameless Hardware
• Walmart Supercenter
• Ganas Auto
• Glasswerks
• In N Out Burger
• La Playita Auto Sales
• Lucas Auto Sales
• Marshalls
FY 2021‐22 Sales Tax Data
South Gate Sales Tax Receipts
• Bradley‐Burns 1.00 % ‐ $14,043,557
• Total of 2,058 businesses with resell permits ‐ $11,540,130 or 82% ($5,452 average for 2,058)
• Top 25 ‐ $6,222,838 or 55% of total ($248,913 average) • Top 100 ‐ $9,056,071 or 81% of total ($37,776 average for the next 75) • County/State Pool accounts for $2,503,427 or 18%
• Measure P 1.00% ‐ $13,645,787
• Total 9,162 businesses filed ‐ $13,645,787 ($1489.39 average for 9,162) • Top 25 ‐ $5,401,793 or 38% of total ($216,071 average) • Top 100 ‐ $8,294,785 or 61% of total ($38,573 average for the next 75) 13 14
71 8
Sales Tax History
Bradley Burns Local Return 1.00%
• FY 17‐18 $11,057,999
• FY 18‐19 $11,494,175(3.9%)
• FY 19‐20 $10,716,557( ‐6.8%)
• FY 20‐21 $12,769,852(19.2%)
• FY 21‐22 $14,043,557(10.0%)
• FY 22‐23 Budget $13,928,657( ‐0.8%)
District Tax (Measure P) 1.00%
• FY 17‐18 $10,063,210
• FY 18‐19 $11,066,448(10%)
• FY 19‐20 $10,445,967( ‐5.6%)
• FY 20‐21 $12,336,395(18.1%)
• FY 21‐22 $13,645,787(10.6%)
• FY 22‐23 Budget $13,372,000( ‐2.0%)
REVISED FUND
BALANCES
15 16
72 9
REVISED FUND BALANCES
City Operating Funds
Fund Category
Estimated
Ending Fund Balance
FY 2021-22
Actual
Ending Fund Balance
FY 2021-22
Change in Ending
Fund Balance
General Fund* 20,395,647 25,503,413 5,107,766 Special Revenue Funds 70,464,704 66,997,564 (3,467,140) Capital Project Funds 3,426,146 4,979,522 1,553,376 Enterprise Funds 38,560,561 39,040,640 480,079 Internal Service Funds 3,642,600 4,792,220 1,149,620 *excludes General Fund Reserves
GENERAL FUND
17 18
73 10
General Fund
Change in Ending Fund Balance for FY 2021 ‐2022 was $5.1 million • $3.4 million in Sales Tax above FY 2021 ‐22 Adopted Budget • Major attributable categories include:
• Fuel and service stations
• New and used car sales
• Restaurants and fast‐food establishments
• $3.2 million in salary savings due to vacancies
• Averaged 37 full‐time vacancies throughout the year
REVISED FUND BALANCES
UNASSIGNED FUND BALANCE
Budgetary Policy – Unassigned Fund Balances
• Maintain an emergency reserve of 20% of
operating costs
• 30% of all excess would go to the Capital
Projects Reserves
• N e x t5 0 %w o u l dg ot ot h eP E R S / O P E B
Reserves
• If needed, the final 20% would go to reduce
any fund deficits
Emergency Reserves ‐ $3,000,000
Capital Project Reserves ‐ $1,370,000
PERS/OPEB Reserves ‐ $730,000
Total ‐ $5,100,000
19 20
74 11
PROPOSED BUDGET MODIFICATIONS
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $979,272 $0
1 Various Departments FY21-22 Ending Fund Balance Adjustment (Savings) 5,107,766 2 Admin Services Transfer Out to Emergency Reserves (to maintain 20% of operating budget) (3,000,000) 3 Admin Services Transfer Out to Capital Project Reserves (1,370,000) 4 Admin Services Transfer Out to PERS/OPEB Reserves (730,000) 5 Various Departments Council Appropriations from Jul 2022 - Jan 2023 (648,230) Subtotal Budget Changes 338,808
6 Various Departments Salary savings from staff vacancies 3,200,000 7 City Attorney Increase City Attorney budget for Legal Fees (500,000) 8 City Clerk Primary Election and November 2022 General Election (60,000) 9 Human Resources Professional Services for administering Sgt./Lt. promotional testing (30,000) 10 Various Departments Price increases for vehicle equipment included in Adopted Budget (36,800) 11 Public Works Transfer Out to CIP Fund for carpet replacement & paint for HR offices (12,102) 12 Public Works Increases in custodial, electrical, and plumbing supplies (20,000) 13 Public Works HVAC equipment rentals at Police Department (45,000) 14 Public Works Roof repairs at City Hall (62,000)
15 Public Works Computer Software for graffiti abatement and facilities (20,000) 16 Community Development Environmental Protection Agency Grant (Revenue) appropriation 500,000 17 Community Development Environmental Protection Agency Grant (Expenditure) appropriation (500,000) 18 Parks & Recreation Californians for All Grant Transfer (Revenue) appropriation 500,000 19 Parks & Recreation Californians for All Grant (Expenditure) appropriation (500,000) Subtotal Budget Changes 2,414,098
Remaining Fund Balance $2,752,906 $0
General Fund
Appropriate
SPECIAL REVENUES
21 22
75 12
PROPOSED BUDGET MODIFICATIONS
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $7,992,723
1 Admin Services FY21-22 Year-End Actuals Adjustment (118,397) 2 Admin Services Council Appropriations from Jul 2022 - Jan 2023 (768,120) 3 Admin Services Reserve the remaining portion of Revenue Losses for future appropriations (1,212,926) 4 Admin Services Utility Assistance Program for South Gate water customers (500,000) 5 Parks & Recreation
Reduce budget for Sports Center lockers replacement and reprogram from Park Enhancement Fund 130,000
Subtotal Budget Changes (2,469,443)
Remaining Fund Balance $5,523,280 $0
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $1,322,659 $0
1 Admin Services FY21-22 Year-End Actuals Adjustment (183,404) 2 Police Council Appropriations from Jul 2022 - Jan 2023 (42,853) 3 Police Price increases for Vehicle equipment and MDC replacements (25,857) 4 Police Carpet replacement for PD offices (14,874)
5 Police Replacement of 12 computers and radios (20,221) 6 Police Axon redaction software (10,455)
7 Police Price increases for radio and equipment replacement (39,172) 8 Police AC Unit Rentals for Detective Bureau (8,395)
9 Police Vehicle lease agreement (14,348)
Subtotal Budget Changes (359,579)
Remaining Fund Balance $963,080 $0
American Rescue Act Plan Fund
Appropriate
Asset Forfeiture Fund
Appropriate
PROPOSED BUDGET MODIFICATIONS
Gas Tax Fund
• Revenues received from
excise taxes on gasoline and
diesel fuel, sales taxes on
gasoline and diesel fuel and
registration taxes on motor
vehicles
• Revenues must be spent on
street related construction
and/or maintenance projects
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $2,714,720 - $
1 Admin Services FY21-22 Ending Fund Balance Adjustment (403,436) 2 Public Works Council Appropriations from Jul 2022 - Jan 2023 (3,000) 3 Public Works Replacement of six street light poles (25,000) 4 Public Works Emergency light tower rentals for street outages (31,500) Subtotal Budget Changes (462,936)
Remaining Fund Balance $2, 251,784 $0
Gas Tax Fund
Appropriate
23 24
76 13
PROPOSED BUDGET MODIFICATIONS
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $2,112,933 - $
1 Administrative Services FY21-22 Ending Fund Balance Adjustment (965,286) 2 Public Works Council Appropriations from Jul 2022 - Jan 2023 60,000 3 Public Works
Median Sign Replacement at three locations (Garfield @ El Paseo, Firestone @ Alameda, Tweedy @ Alameda) 50% Split Measure M and R (30,176) Subtotal Budget Changes (935,462)
Remaining Fund Balance $1,177,471 $0
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $2,626,234 - $
1 Administrative Services FY21-22 Ending Fund Balance Adjustment 784,144 2 Public Works Council Appropriations from Jul 2022 - Jan 2023 (1,354,122) 3 Public Works
Median Sign Replacement at three locations (Garfield @ El Paseo, Firestone @ Alameda, Tweedy @ Alameda) 50% Split Measure M and R (30,176) 4 Public Works Parking improvements along State Street (30,000) Subtotal Budget Changes (630,154)
Remaining Fund Balance $1,996,080 $0
Measure M Fund
Appropriate
Measure R Fund
Appropriate
Measure R and Measure M Funds
• ½ cent sales tax for Measure R and ½
cent sales tax for Measure M
• Both are administered through
Metropolitan Transit Authority
(MTA/Metro)
• Funds must be used to finance new
transportation projects and
programs, and accelerate those
already in the pipeline
PROPOSED BUDGET MODIFICATIONS
Prop A and Prop C Funds
• ½ cent sales tax for Prop A and ½
cent sales tax for Prop C
• Both are administered through
Metropolitan Transit Authority
(MTA/Metro)
• Funds must be used in developing
and/or improving local public
transit, paratransit, and related
transportation infrastructure
• Prop C is more flexible in that funds
can also be used for street/traffic
signal improvements
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $5,195,069 - $
1 Administrative Services FY21-22 Ending Fund Balance Adjustment 107,932 2 Public Works
Replacement of 68 trash receptables at bus/shuttle locations on Tweedy Blvd and surrounding vicinity (100,000)
Subtotal Budget Changes 7,932
Remaining Fund Balance $5, 203,001 $0
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $1,200,585 - $
1 Administrative Services FY21- 22 Ending Fund Balance Adjustment (2,309,345) 2 Administrative Services Increase Prop C Revenue Projection 200,000 3 Public Works Reduce Transfer Out for Prior Year expenditures 705,145 4 Public Works Reduce expenditure budget for Professional Services 203,615 Subtotal Budget Changes (1,200,585)
Remaining Fund Balance $0 $0
Prop A Fund
Appropriate
Prop C Fund
Appropriate
25 26
77 14
PROPOSED BUDGET MODIFICATIONS
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $120,379 - $
1 Administrative Services FY21-22 Ending Fund Balance Adjustment 45,315 2 Parks & Recreation Add budget for Sports Center lockers replacement (130,000) Subtotal Budget Changes (84,685)
Remaining Fund Balance $35,694 $0
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $0 - $
1 Admin Services FY21-22 Ending Fund Balance Adjustment 1,553,376 2 Public Works Carpet replacement & paint for HR Offices (Revenues) 12,102 3 Public Works Carpet replacement & paint for HR Offices (Expenditures) (12,102) 4 Public Works Update CDBG funded projects per FY22-23 Action Plan (Revenues) (33,405) 5 Public Works Update CDBG funded projects per FY22-23 Action Plan (Expenditures) 33,405 Subtotal Budget Changes 1,553,376
Remaining Fund Balance $1,553,376 $0
Capital Improvement Projects Fund
Appropriate
Park Enhancement Fund
Appropriate
ENTERPRISE
FUNDS
27 28
78 15
PROPOSED BUDGET MODIFICATIONS
Sewer Fund
• $21.9 Million City Loan was
deemed satisfied and
discharged
• Operating costs exceed
revenues by $700K
• Results of Sewer Study and
proposed changes to sewer
rates in coming months
One-time Ongoing
FY 2022-23 Adopted Ending Fund Balance $88,094 - $
1 Admin Services FY21-22 Ending Fund Balance Adjustment 393,333 2 Public Works Council Appropriations from Jul 2022 - Jan 2023 (52,000) 3 Public Works Computer Software for sewer mapping and geotagging (10,000) Subtotal Budget Changes 331,333
Remaining Fund Balance $419,427 $0
Sewer Fund
Appropriate
INTERNAL SERVICE
FUNDS
29 30
79 16
INTERNAL SERVICE FUNDS
Fund Category
Revised
Beginning
Fund Balance
FY 2022/23
Adopted
Revenues
FY 2022/23
Adopted
Expenditures
Fund Balance
Coverage
Estimated
Ending
Fund Balance
Insurance Fund (1,773,105) 6,785,066 6,736,346 2,188,576 464,191 Fleet Management Fund 639,270 2,019,855 2,443,459 - 215,666 Information Systems Fund 70,356 1,554,719 1,572,843 - 52,232 Capital Asset & Equip Replacement Fund 4,591,388 605,684 1,861,469 - 3,335,603 Building & Infrastructure Maint Fund 1,264,311 1,223,380 2,396,011 140,894 232,574 FY 2022‐23
FINANCIAL STATUS
REPORT
31 32
80 17
GENERAL FUND OVERVIEW
Revenues by Major Category
Revenues - By Category
2022-23
Adopted Budget
Actuals
as of
01/31/2023 % Rec'd
Property Taxes 15,888,803 8,228,776 51.79% State Sales Taxes 13,928,657 6,022,835 43.24% Local Sales Taxes 13,372,000 5,645,647 42.22% Franchise Taxes 1,603,968 306,813 19.13% Business License Taxes 1,580,525 263,493 16.67% Transient Occupancy Taxes 570,511 218,915 38.37% Other Taxes 2,007,906 629,279 31.34% Permits 1,734,601 938,841 54.12% Fines & Forfeitures 1,127,092 650,576 57.72% Use of Money & Property 1,797,938 686,388 38.18% Intergovernmental 140,389 88,667 63.16% Fees & Charges 3,092,303 1,792,224 57.96% Other Revenues 4,934,624 2,499,017 50.64% Total General Fund Revenues 61,779,316 27,971,470 45.28% GENERAL FUND OVERVIEW
Expenditures by Major Category
Expenditures – By Department
2022-23
Adopte d Budget
Actuals
as of
01/31/2023 % Spent
City Council 349,256 183,466 52.53%
City Clerk 892,225 552,168 61.89%
City Treasurer 38,863 25,014 64.37%
City Attorney 1,250,663 753,721 60.27%
City Manager 1,285,402 600,622 46.73%
Administrative Services 3,861,931 2,019,035 52.28%
Parks & Recreation 11,316,943 5,347,778 47.25%
Police 34,819,541 20,076,236 57.66%
Community Development 3,845,998 1,739,318 45.22%
Public Works 5,588,897 2,900,087 51.89%
Non-Departmental 2,668,530 1,293,100 48.46%
Total General Fund Expenditures 65,918,249 35, 490,547 53.84% Excludes UAL annual prepayment 28,091,493 42.62%
33 34
81 18
GENERAL FUND
5‐YEAR FORECAST
5‐YEAR
FINANCIAL
FORECAST
GENERAL FUND 2019 ‐20 2020 ‐21 2021 ‐22 2022 ‐23 2023 ‐24 2024 ‐25 2025 ‐26 2026 ‐27 Est. Beginning Fund Balance $25,503,413 $2,752,906 ($1,712,912) ($6,859,112) ($11,789,012) Revenues
Property Tax 14,078,869 15,082,297 15,323,098 15,888,800 16,404,000 17,133,600 17,679,700 18,242,900 Sales Tax 21,162,524 25,106,247 27,689,344 27,300,700 27,660,882 28,214,100 29,060,500 29,932,300 Other Taxes 5,145,428 5,411,633 5,758,177 5,762,900 5,527,700 5,581,100 5,682,700 5,786,600 Permits 1,988,477 1,649,566 1,623,236 1,734,600 1,754,100 1,776,200 1,815,200 1,869,400 Fines & Forfeitures 1,418,757 1,040,478 1,310,097 1,127,150 1,138,400 1,149,700 1,184,100 1,219,500 Use of Money & Property 1,148,122 242,237 (727,636) 1,797,900 1,807,100 1,815,900 1,825,100 1,834,600 Intergovernmental 283,239 2,232,340 216,631 140,300 140,500 140,500 140,500 140,500 Fees & Charges 1,731,802 1,212,093 2,339,037 3,092,300 3,087,300 3,098,400 3,132,200 3,166,900 Other Revenues 3,998,230 3,466,358 4,196,786 4,934,667 4,975,800 5,017,400 5,143,500 5,273,400 Total Revenues 50,955,449 55,443,249 57,728,770 61,779,317 62,495,782 63,926,900 65,663,500 67,466,100 1% 2% 3% 3%
Expenditures
Salaries & Benefits $38,492,866 $39,351,224 $40,539,917 $46,413,940 $48,260,100 $49,953,600 $51,609,200 $53,336,800 Supplies & Services $7,833,221 $7,232,531 $8,501,551 $9,402,354 $9,147,300 $9,517,300 $9,334,500 $9,729,400 Internal Services $4,283,443 $4,268,760 $4,261,104 $7,296,082 $7,341,500 $7,387,800 $7,435,300 $7,483,900 Debt Service $2,211,482 $2,192,444 $2,214,397 $2,216,849 $2,212,700 $2,214,400 $2,214,400 $2,214,400 Capital Outlay $26,944 $48,422 $79,034 $480,818 $0 $0 $0 $0 Total Expenditures $52,847,956 $53,093,381 $55,596,003 $65,810,043 $66,961,600 $69,073,100 $70,593,400 $72,764,500 2% 3% 2% 3%
Net Revenues Over (Under)
Expenditures (1,892,507) 2,349,868 2,132,767 (4,030,726) (4,465,818) (5,146,200) (4,929,900) (5,298,400) Est. Year‐End Savings $3,200,000
Transfer Out for CIP ($2,757,204)
Fund Balance Coverage ($4,628,445)
Transfer Out to Reserves ($13,100,000)
Council Appropriations ($785,903)
Mid‐Year Budget Requests ($648,229)
Est. Ending Fund Balance $2,752,906 ($1,712,912) ($6,859,112) ($11,789,012) ($17,087,412) Actuals Forecast
35 36
82 19
RECOMMENDED
ACTIONS
Update the Fiscal Year 2022‐23 Adopted Budget by accepting June 30, 2022, ending fund balances as depicted in Attachment A;
Modify the Fiscal Year 2022‐23 Adopted Budget and approve the additional appropriations and adjustments as recommended in this report and as outlined in Attachment B and C with any additional changes approved by City Council; and
Approve a Grant Agreement with the U.S. Environmental Protection Agency for full federal funding in the amount of $500,000 to inventory, characterize, assess, and conduct cleanup planning and community involvement related activities; and
Authorize the Mayor to execute the Grant Agreement in a form acceptable to the City Attorney.
RECOMMENDED ACTIONS
37 38
83