City Council
Cristi Creegan, Mayor
Cody Bass, Mayor Pro Tem
John Friedrich, Councilmember
Tamara Wallace, Councilmember
Scott Robbins, Councilmember
Mission of the City Council
The City was established to provide essential,
outstanding and cost-effective services that
enhance environmental sustainability, economic
vitality and the quality of life for our residents,
businesses and guests.
City of South Lake Tahoe
City Council and South Tahoe Redevelopment Successor
Agency
Meeting Agenda
Tuesday, December 12, 2023 at 5:30 pm
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe Public Participation
City Council meetings are held in person at the time and location listed on this agenda. Meetings are live-streamed on Channel 21, City website at www.cityofslt.us, and via ZOOM at this link https://us06web.zoom.us/j/85907213522 A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City’s Website at www.cityofslt.us, or by contacting the City Clerk's Office, (530) 542-6005 or [email protected]
Providing Public Comment: In Person: Every agenda for regular meetings provides an opportunity for members of the public to directly address the legislative body (City Council), on any item of public interest which is within the jurisdiction of the City Council during Public Communications. For items on the agenda or in connection with any item which the City Council will consider, the public is given the opportunity to comment before or during the City Council's consideration of the item [Government Code Section 54954.3(a)].
By Phone: If you are joining the meeting via ZOOM and would like to make a comment, press the "raise a hand" button. If you are joining the meeting via Channel 21 or live stream and would like to make a comment, please call (530) 542-6500. The meeting ID is ID: 859 0721 3522 press *9 to indicate a desire to make a comment. Press *6 to unmute your phone. The Clerk will call you by the last three digits of your phone number when it is your turn to speak. In Writing: Written comments received by 3 p.m. the day before the meeting will be distributed to City Council prior to the meeting. Written public comment regarding any item on this agenda may be sent to [email protected]. When emailing comments, identify the agenda item number in the subject line to which your comments relate. Any such comment that is a public record and is emailed to [email protected] or otherwise provided to a majority of the City Council before the meeting will be made available for public inspection during 1 1. 2024 Mayor and Mayor Pro Tem Selection
2. Tobacco Prevention Presentation from El Dorado County Public Health normal business hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.
The City Council Chambers meeting facility is accessible to people with disabilities. Every reasonable effort will be made to accommodate any person needing special assistance to attend this meeting.
Contact the City Clerk at (530) 542-6005 at least 48 hours in advance of the meeting for assistance [28 CFR 35.102.35.104 ADA Title II and Brown Act Government Code Sections 54953.2, 54954.1, 54954.2, and 54957.5]. Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the Agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in-person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.
Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
Public Communications
This is the public's opportunity to speak on any topic NOT LISTED on this agenda. Comments shall be limited to four (4) minutes. In accordance with the Brown Act, the City Council cannot deliberate or vote on any matter raised under public communications, but may briefly respond to statements made or questions posed. (Government Code Sections 54954.2)
Reorganization of the City Council
Requested Action / Suggested Motions: Pass a Motion selecting a Mayor and Mayor Pro Tem for the year 2024.
Responsible Staff Member(s): Susan Blankenship, City Clerk Item 1- Executive Summary.pdf
01-Staff Report -2024 Mayor and Mayor Pro-Tem Selection.docx City Commission Reports
Presentations
Requested Action / Suggested Motions: Receive presentation.
Responsible Staff Member(s): Heather Stroud, City Attorney Item 2- Executive Summary.pdf
01-Staff Report - County Public Health Tobacco Prevention Presentation.docx 02-Presentation.pdf
Consent Agenda
Public Comment - This is the public's opportunity to speak on any topic listed on the Consent Agenda.
Comments shall be limited to three (3) minutes.
The consent agenda consists of items of a repeating or routine nature considered under a single action.
Any Councilmember may have an item on the consent agenda removed and considered separately upon request.
2 3. City Council Meeting Minutes
4. Investment Portfolio Report - September 30, 2023
5. Fiscal Year 2022-23 Quarterly Financial Status Report - Quarter Ending September 2023
6. Purchase of Three Police Patrol Vehicles from National Auto Fleet Group
7. Reimbursement Agreement with El Dorado County for Purchase of Communications Equipment for Fire Rescue Marine 17 Using 2021 Homeland Security Grant Funds in an amount up to $7,652
8. Barton Avenue & 2nd Street Drainage Project - Ratification of Change Orders No. 1, 2, 3 & 4 ($228,561.50)
Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.
Requested Action / Suggested Motions: Pass a Motion approving the November 21, 2023 Regular City Council and South Tahoe Redevelopment Successor Agency meeting minutes.
Responsible Staff Member(s): Susan Blankenship, City Clerk Item 3- Executive Summary.pdf
11 21 2023 City Council Minutes.pdf
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member(s): Olga Tikhomirova, Director of Finance Item 4- Executive Summary.pdf
01-Staff Report - Investment Report Sept. 2023.docx
02-Operations Cash 09 30 2023.pdf
03-Fiscal Agent 09 30 2023.pdf
04-Graph 09 30 2023.pdf
05-Cash September 2023.pdf
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member(s): Andrew Black, Financial Services Supervisor Item 5- Executive Summary.pdf
01-Staff Report - FY 2022-23 Quarterly Budget
02-FY 2022-23 Qtrly Budget Report Sept 2023
Requested Action / Suggested Motions: Pass a Motion authorizing the purchase of three (3) 2024 Chevy Tahoe 4WD PPV police vehicles using existing budget appropriations up to $169,305.75.
Responsible Staff Member(s): Jeff Roberson, Police Lieutenant Item 6- Executive Summary.pdf
01-Staff Report - Police Vehicle Replacement.docx
2-2024 Chevy Tahoes National Auto Sales.pdf
3-National Auto Fleet Contract 091521.pdf
Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute a funding reimbursement agreement with El Dorado County for the purchase of AIS secure communications GPS equipment for South Lake Tahoe Fire Rescue Marine 17 not to exceed $7,652.00, appropriating funding in the FY 2023-2024 budget, authorizing purchase of the equipment and installation from Raymarine, and authorizing the City Manager to sign and submit all documents necessary documents for the completion of the grant scope.
Responsible Staff Member(s): Jay Manning, Battalion Chief, Jim Drennan, Fire Chief Item 7 Executive Summary.pdf
01-Staff Report - Funding Agreement with EDSO.docx
02-Resolution - Funding Agreement with EDSO.docx
03-Funding Reimbursement Agreement with El Dorado County for Marine 17 Equipment.pdf 04-Order Acknowledgement
3 9. California Tahoe Conservancy Planning Grant Application for Dennis Machida Memorial Trail Phase 1c
10. California Office of Traffic Safety Enforcement Grant FY 23-24
11. City Salary Table Amendments - California Minimum Wage Increase
12. Recognized Obligation Payment Schedule (ROPS) FY 2024-2025 Requested Action / Suggested Motions: Pass a Motion ratifying Change Orders 1-4 and increasing construction contingency to 11.5% ($229,310) to be reimbursed by Southwest Gas and South Tahoe Public Utility District at no additional cost to the City.
CEQA Determination: This project is categorically exempt under CEQA Guidelines 15304 (minor alteration to land).
Responsible Staff Member(s): Stan Hill, Engineering Manager, and Jason Burke, Complete Streets Program Manager
Item 8- Executive Summary.pdf
01-Staff Report - CCO Close-Out.docx
02-Vicinity Map.pdf
03-CCO-4 Balancing Worksheet.pdf
04-LaFleur Excavating, Inc Contract_C-054-2023.pdf
Requested Action / Suggested Motions: Pass a Resolution authorizing the Director of Public Works to submit a grant application for $800,000 to the California Tahoe Conservancy for the Dennis Machida Memorial Trail Phase 1c.
CEQA Determination: This action is statutorily exempt from review under CEQA Guidelines section 15262 (planning and feasibility studies).
Responsible Staff Member(s): Jason Burke, Complete Streets Program Manager, and Stephen Anderjack, Associate Civil Engineer
Item 9- Executive Summary.pdf
01-Staff Report-CTC Grant Application.docx
02-Resolution - CTC Grant Application.docx
Requested Action / Suggested Motions:
Pass a Resolution ratifying the application, budget, and reimbursement of grant award by California Office of Traffic Safety (OTS) for a Selective Traffic Enforcement Program (STEP) in amount up to $41,000.00, and upon final approval from OTS, authorizing the Mayor to execute a grant agreement.
Responsible Staff Member(s): Lt Scott Crivelli
Item 10- Executive Summary.pdf
01-Staff Report - OTS Grant.docx
02-Resolution - Office of Traffic Safety Grant.docx
03- Grant Agreement.pdf
04 - Grant Application
Requested Action / Suggested Motions: Pass Resolution raising the minimum wage for City employees to $16.00, effective January 1, 2024, as required by state law.
Responsible Staff Member(s): Ember Buckman, Human Resources Manager Item 11- Executive Summary.pdf
01-Staff Report - City Salary Table Amendments.docx
02-Resolution - City Salary Table Amendments.docx
03-City of South Lake Tahoe Salary Table December 6 2023 (EXH A to Reso).pdf Consent Agenda - South Tahoe Redevelopment Successor Agency Requested Action / Suggested Motions: Acting as the South Tahoe Redevelopment Successor Agency Board, Pass a Resolution approving the Recognized Obligation Payment Schedule (ROPS) 4 13. South Tahoe Refuse Base Year Rate Increase of 11.05 Percent
14. Amendments to Cannabis Ordinance, Public Safety License Ordinance, and Clean Indoor Air Ordinance Regarding On-Site Consumption, Medicinal Delivery, and to Remove Outdated Provisions Regarding Development Agreements and Existing Medical Marijuana Dispensaries pursuant to Health and Safety Code section 34177 for the fiscal period commencing July 1, 2024, and ending June 30, 2025.
Responsible Staff Member(s): Olga Tikhomirova, Finance Director Item 12- Executive Summary.pdf
01-Staff Report-ROPS 2024-2025.DOCX
02-Resolution STRSA ROPS 2024-2025.DOCX
03-ROPS 2024-2025 (Exh. A to Resolution).pdf
04-Sponsoring Entity Loan Repayment ROPS 2024-2025 (Exh. B to Resolution).pdf Public Hearing
Requested Action / Suggested Motions: (1) Conduct a Majority Protest Public Hearing, and (2) If no majority protest is received, Pass a Motion approving South Tahoe Refuse Base Year Rate Increase of 11.05 percent ($4.11 per month for residential customers and $4.70 per cubic yard for commercial customers), effective January 1, 2024.
Responsible Staff Member(s): Anush Nejad Public Works Director, and Sara Letton, Sustainability Coordinator
Item 13- Executive Summary.pdf
01-Staff Report - South Tahoe Refuse 2024 Rate Adjustment.docx 02 - 2012 Rate-Setting Manual.pdf
03 - Prop 218 Notice 10.23.23 FINAL.pdf
04 - Crowe Report - STR 2024 Rate Review.pdf
05 - Clean Tahoe Budget 2023-4.pdf
06 - STR Rate Presentation.pptx
07- Redacted Protest Letter.pdf
Regular-Unfinished Business
Requested Action / Suggested Motions: Pass a Motion to hold a first reading (by title only) of Version 1 (allowing on-site consumption) or Version 2 (continuing to prohibit on-site consumption) and refer second reading to January 9, 2024, of an Ordinance amending the following sections of the South Lake Tahoe City Code: (1) Article X of Chapter 6.55 (Cannabis Regulations) Regarding On-Site Consumption at Cannabis Retailers, Medicinal Delivery, and to Remove Outdated Provisions Regarding Development Agreements and Existing Medical Marijuana Dispensaries; (2) Chapter 4.180 (Cannabis Public Safety License Ordinance) Regarding On-Site Consumption at Cannabis Retailers and Curbside Delivery; and (3) Chapter 4.100 (Clean Indoor Air and Health Protection) Regarding On-Site Consumption at Cannabis Retailers and to Comply with Changes in State Law on Smoking in Workplaces.
CEQA Determination: The proposed Ordinance would allow for additional or expanded cannabis business activities but does not change the intensity or density of cannabis business uses beyond what is currently allowed in Table 6.55.740. The proposed Ordinance is consistent with the 2030 General Plan policies. The 2030 General Plan Environmental Impact Report (EIR) adequately addresses the potential environmental impacts of the proposed ordinance. No further environmental analysis is required under CEQA Guidelines section 15162 because the proposed Ordinance is within the scope of the previous EIR and there are no substantial changes to the project or the circumstances that require major revisions to the previous EIR due to new significant environmental effects not discussed in the previous EIR, significant effects previously examined that would be more severe, or mitigation measures or alternatives previously found not to be feasible that would substantially reduce one or more significant effects.
Responsible Staff Member(s): Heather Stroud, City Attorney Item 14- Executive Summary.pdf
5 15. City Council Assignments to Boards and Commissions
16. Climate Action Plan Annual Update
17. 2021 Greenhouse Gas Inventory
18. Amendments to City Council Protocols
19. Agenda Planning Calendar
01 - Staff Report - Cannabis Ordinance.docx
02 - Ordinance Amending Cannabis Regulations - Version 1 Allowing On-Site Consumption.docx 03 - Clean Indoor Air Ordinance Redline Version 1.pdf
04 - Public Safety License Ordinance Redline Version 1.pdf 05 - Cannabis Ordinance Redline Version 1.pdf
06 - Ordinance Amending Cannabis Regulations - Version 2.docx 07 - Clean Indoor Air Ordinance Redline Version 2.pdf
08 - Public Safety License Ordinance Redline Version 2.pdf 09 - Cannabis Ordinance Redline Version 2.pdf
10 - 2023 South Lake Tahoe Scorecard from Public Health Institute.pdf 12-Notice of Public Hearing 11 21 2023.pdf
11- Planning Commission Res 2023-015.pdf
Regular-New Business
Requested Action / Suggested Motions: 1) Pass a Motion appointing a citizen representative to the El Dorado County Community Action Council or direct the City Clerk to continue to solicit applications; 2) for the El Dorado County Commission on Aging, City Council may either fill the position with a member of the City Council, or direct the City Clerk to continue to solicit applications; and, 3) Pass a Motion approving City Council assignments to boards and commissions.
Responsible Staff Member(s): Susan Blankenship, City Clerk Item 15- Executive Summary.pdf
01-Staff Report-Assignments to Commissions and Boards.docx 02-2023 City Council Assignments.pdf
03-Notice of Solicitation - City Council Representative.pdf Requested Action / Suggested Motions: Receive presentation on Climate Action Plan implementation progress and provide feedback on new Climate Action Plan tracking website.
Responsible Staff Member(s): Sara Letton, Sustainability Coordinator Item 16- Executive Summary.pdf
01 - 2023 Climate Action Plan Update.docx
02 - Presentation 2023 Climate Action Plan Update.pptx
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member(s): Sara Letton, Sustainability Coordinator Item 17- Executive Summary.pdf
01 - Staff Report - 2021 GHG Inventory.docx
02 - Exhibit CW and GO 2021 GHG Inventories.pdf
Requested Action / Suggested Motions: 1) Pass a Motion approving the suggested amendments to the City Council Protocols; or, 2) Pass a Motion directing staff to bring back the City Council Protocols with specific changes.
Responsible Staff Member(s): Susan Blankenship, City Clerk, and Heather Stroud, City Attorney Item 18- Executive Summary.pdf
01-Staff Report-Protocols.docx
02-Proposed 2024 City Council Protocols (Redline).pdf
Agenda Planning Calendar
6 Requested Action / Suggested Motions: A Councilmember may request that an item be placed on a future agenda. Upon the support of one (1) additional Council Member, direction shall be given to the City Manager to calendar the item for a convenient future agenda, but no sooner than the second meeting after the request was made, and/or modify the Agenda Planning Calendar as desired.
Responsible Staff Member(s): Joseph Irvin, City Manager Item 19- Executive Summary.pdf
APC - 12 06 2023.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday December 12, 2023, City Council meeting was posted and available for review on Thursday, December 7, 2023, at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the City website at https://www.cityofslt.us. Signed December 7, 2023 \\sb\\ Susan Blankenship, Elected City Clerk
7 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:1
Agenda Item: 2024 Mayor and Mayor Pro Tem Selection
Executive Summary: The Mayor and Mayor Pro-Tem shall serve a (1) one-year term of office. Pursuant to City Code section 2.05.050(A) and City Council Protocols VII (1) the City Council shall, at its first meeting, select a mayor and mayor pro tempore. The newly selected Mayor and Mayor Pro Tem will commence their terms of office immediately.
Requested Action / Suggested Motions: Pass a Motion selecting a Mayor and Mayor Pro Tem for the year 2024.
Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Heather Stroud, City Attorney Attachments:
01-Staff Report -2024 Mayor and Mayor Pro-Tem Selection.docx 8 Council Agenda Report December 12, 2023 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: 2024 Mayor and Mayor Pro Tem Selection
Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk (530) 542-6005 Background: In accordance with South Lake Tahoe City Code section 2.05.050(A) and City Council Protocol VII(1) Mayor and Mayor Pro Tem Term of Office, at its first meeting the City Council shall select a Mayor and Mayor Pro Tem. The Mayor’s duties under the South Lake Tahoe City Code and City Council Protocols include presiding over and facilitating discussion at City Council meetings, signing written contracts and instruments, and acting as the City Council’s ceremonial representative at public events and functions. The Mayor Pro Tem assumes the Mayor’s responsibilities in the Mayor’s absence.
Issue and Discussion: The City Council is asked to deliberate and pass a Motion selecting a Mayor and Mayor Pro Tem for 2024.
Financial Implications: There are no financial obligations associated with this action.
Environmental Considerations: The selection of Mayor and Mayor Pro Tem is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes to the environment).
Policy Implications: The selection of a Mayor and Mayor Pro Tem conforms to City Code and Protocols.
The newly selected Mayor and Mayor Pro Tem will commence their terms of office immediately. 9 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:2
Agenda Item: Tobacco Prevention Presentation from El Dorado County Public Health Executive Summary: On September 28, 2023, Mayor Creegan, the City Attorney, and Assistant City Manager met with representatives from El Dorado County Public Health to receive information about ongoing tobacco prevention efforts. At the City Council meeting on November 7, 2023, Mayor Creegan requested that a presentation from El Dorado County Public Health on tobacco prevention be placed on a future agenda (seconded by Councilmember Friedrich).
Requested Action / Suggested Motions: Receive presentation.
Responsible Staff Member: Heather Stroud, City Attorney Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Attachments:
01-Staff Report - County Public Health Tobacco Prevention Presentation.docx 02-Presentation
10 Council Agenda Report- December 12, 2023 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Tobacco Prevention Presentation
Location: “Citywide”
Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Background:
On September 28, 2023, Mayor Creegan, the City Attorney, and Assistant City Manager met with representatives from El Dorado County Public Health to receive information about ongoing tobacco prevention efforts. At the City Council meeting on November 7, 2023, Mayor Creegan requested that a presentation from El Dorado County Public Health on tobacco prevention be placed on a future agenda (seconded by Councilmember Friedrich).
Issue and Discussion:
Staff from El Dorado County Public Health will present on current tobacco prevention efforts in El Dorado County and statewide. Topics will include local tobacco retail license requirements and local enforcement including prevention of retail sales of tobacco products to youth, zoning to limit density and number of tobacco retailers, and waste management regulations such as prohibiting single-use electronic smoking devices (vape pens).
Financial Implications:
None.
Environmental Considerations:
Receiving this presentation is not a “project” requiring review under the California Environmental Quality Act (CEQA) under CEQA guidelines 15378(b)(2) (general policy or procedure making).
Policy Implications:
Regulating tobacco retailers would be generally consistent with Strategic Priority 5.4 (Local Control) in the 2023-2028 Strategic Plan.
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15 16
17 18
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23 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:3
Agenda Item: City Council Meeting Minutes
Executive Summary: The Minutes of the last meeting have been prepared by the City Clerk for approval.
Requested Action / Suggested Motions: Pass a Motion approving the November 21, 2023 Regular City Council and South Tahoe Redevelopment Successor Agency meeting minutes.
Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:
11 21 2023 City Council Minutes.pdf
24 11 21 2023 Minutes
City of South Lake Tahoe
City Council
Meeting Minutes
Tuesday, November 21, 2023 at 5:30 pm
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. Complete Council member discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us Call to Order/Pledge of Allegiance
At 5:34 p.m. Mayor Creegan called the meeting to order. Creegan then led the pledge of allegiance to the flag.
Roll Call
Present were Mayor Creegan, Mayor Pro Tem Bass, and Councilmembers Friedrich, Wallace and Robbins.
Also present were City Manager Irvin, City Attorney Stroud and City Clerk Blankenship.
Closed Session Report – 11 21 2023
1. Conference with Real Property Negotiators. Gov. Code section 54956.8.
Property: Potential acquisition of 3707 Blackwood Road
Agency negotiator: Jason Burke, Complete Streets Manager Negotiating parties: Keith Minor, Trustee of the Larkin D. Minor QTIP Trust and Trustee of the Minor Legacy Trust
Under negotiation: Purchase price and terms of payment.
Action: No reportable action
Proclamations:
1. Proclamation Recognizing "Hate Has No Place in South Lake Tahoe" Action: Issued a Proclamation to a coalition of South Shore Clergy recognizing, "Hate Has No Place in South Lake Tahoe"
2. Proclamation Recognizing November 2023 as "National Runaway Prevention Month" Action: Issued a Proclamation to Tahoe Youth and Family Services recognizing November 2023 as "National Runaway Prevention Month”
Public Communications
Public Comment was heard from the following people:
1. Scott- Annexation and fees for snow removal
2. Heidi Mayerhofer, Representative for Senator Marie Alvarado-Gil- Mobile office hours, thank you to Council for Peace Walk *distributed employee certificates of appreciation
3. Melissa Soderston, Tahoe Forests Matter- Forest health
4. Kenney Curtzweiler- Heavenly Village tree lighting, thank you to all partners
5. Annie Davidson, South ShoreClergy- Thank you for Hate Has No Place Proclamation 25 11 21 2023 Minutes
Written Public Communications were received from the following people:
1. Edith Chase- Cell towers
2. Ernest Coe- Cell towers
3. Shirley Briggs- Cell towers
4. Asa Briggs- Cell towers
5. John Carlos- Cell towers
6. Theo Colborn- Environmental health
7. Saundra Edwards- Cell towers
8. Peter Norman- Overtourism
9. Vasily Sleptsov- Ski Run parcel
City Commission Reports
1. Nicole Ramirez-Thomas, Parks and Recreation Commission- Provided a verbal report of the Parks and Recreation Commission (Item 4)
Consent Agenda
Note: Items 4, 5, 7, 13, and 16 were pulled from consent by Councilmember Robbins.
Action: Moved/Seconded: Wallace/Friedrich
Yes: Creegan, Bass, Friedrich, Wallace, and Robbins
Action: Passed Consent Agenda. Items 13 and 16 were voted on separately. Items 4, 5, and 7 were received and filed.
3. City Council Meeting Minutes
Action: Passed Motion 2023-099 approving the November 7, 2023 meeting minutes.
4. Independent Citizens' Oversight Committee (Measure P), Arts Culture, and Tourism Commission, and Parks & Recreation Commission Annual Reports Action: Received and Filed.
5. Planning Commission and Airport Land Use Commission Annual Report to City Council Action: Received and Filed.
Note: John Stark provided a verbal report of the Arts, Culture, and Tourism Commission.
The following people addressed the Council:
1. Stacey Ballard, Arts, Culture and Tourism Commissioner
6. Building Board of Appeals Annual Report to City Council Action: Received and filed.
7. Police Advisory Commission Annual Report
Action: Received and Filed.
Note: Chief of Police David Stevenson provided a verbal report of the Police Advisory Commission.
The following people addressed the Council:
1. Erika Gonzalez, Chair, Police Advisory Commission
8. Ordinance Requiring Good Faith Effort on Local Hiring on Public Works Projects (Second Reading) Action: Passed Ordinance 2023-1179 amending South Lake Tahoe City Code Title 3, Chapter 3.45, Article II (Public Contracts and Uniform Public Construction Cost Accounting Act) to require a good faith effort for local hiring on public works projects.
9. Inclusionary Housing Ordinance (Second Reading)
Action: Passed Ordinance 2023-1180 amending Title 6 of the South Lake Tahoe City Code to include Chapter 6.27, Inclusionary Housing.
26 11 21 2023 Minutes
10. Ratification of Application for State and El Dorado County Funding for Police Boating Safety and Enforcement Program
Action: Passed Resolution 2023-106 ratifying the application for financial aid from the California State Boating and Enforcement Aid Program (C-241-2023); authorizing the Mayor, or the Police Chief, to sign the application for financial aid, the program agreement, and each reimbursement claim; authorizing acceptance of financial aid award from the California State Boating and Enforcement Aid Program in amount up to $100,279.17 and acceptance of El Dorado County vessel property taxes, confirmed by the El Dorado County Auditor in the amount up to $63,792.00 for a total program amount up to $164,071.17; and authorizing budget of that amount into the current City’s budget into account #237 02110 effective July 1, 2024.
11. Appropriation of Funds for Terminal Repairs
Action: Passed Resolution 2023-107 authorizing the Finance Director to appropriate $145,000.00 from Airport Available Fund Balance for for Airport Maintenance needs, including a Temporary Employee and Deferred Maintenance.
12. Application for Caltrans Sustainable Transportation Planning Grant for U.S. Highway 50 and 89 Corridors
Action: Passed Resolution 2023-108 authorizing the Director of Public Works to submit a grant application (C-242-2023) for the Caltrans Sustainable Transportation Planning grant program fund in an amount up to $700,000, appropriating $20,000 from General Fund Undesignated Excess Reserves for consultant services to assist with preparing the grant application, and setting aside up to $80,000 in matching funds from General Fund Undesignated Excess Reserves.
Public Comment was heard from the following people:
1. Ed Mosur
13. Amendment to Agreement with Placemate to Extend Term and Fund "Lease to Locals" Rental Incentive Grant Program for One Year
Action: Passed Resolution 2023-109 authorizing and directing the Mayor to execute Amendment No. 2 (C-243-2023) to Agreement with Placemate (formerly Landing Locals) to extend term of "Lease to Locals" Rental Incentive Grant Program until January 15, 2025 and authorizing budget appropriations of $100,000.
Action: Moved/Seconded: Wallace/Friedrich
Yes: Creegan, Bass, Friedrich, Wallace, Robbins
The following person addressed the Council:
1. Chase Janvrin, Placemate General Manager
14. Agreement with Lew Edwards Group to Provide Ballot Measure Consulting Services Action: Passed Motion 2023-100 authorizing and directing the Mayor to execute sole source agreement with Lew Edwards Group (C-244-2023) for ballot measure consulting services in an amount not to exceed $107,500.
Public Comment was heard from the following people:
1. Ed Mosur
15. Memorandum of Understandings (MOU's) with the Police Officers' Association, Police Supervisors' Committee, Local 39 Administrative and Confidential, and Local 39 General & Public Works.
Action: Passed Resolution 2023-110 approving MOU's with the Police Officers' Association (C-252- 2023), the Police Supervisors' Committee (C-253-2023), Local 39 Administrative and Confidential (C254-2023), and Local 39 General & Public Works (C-255-2023). 27 11 21 2023 Minutes
16. Amendment to Heavenly Parking Agreement
Note: City Manager Irvin recused himself on this item due to property interest in the area and left the meeting.
Action: Moved/Seconded: Bass/Friedrich
Yes: Creegan, Bass, Friedrich, Wallace, Robbins
Action: Passed Motion 2023-101 authorizing and directing the Mayor to execute Amendment 1 to the Heavenly Parking Agreement (C-245-2023).
Public Comment was heard from the following people:
1. Kenney Curtzweiler
17. Agreements with BPR Consulting Group, 4Leaf Inc., and TRB and Associates for Inspection, Plan Review, and Permit Technician Services
Action: Passed Motion 2023-102 authorizing and directing the Mayor to execute Professional Services Agreements with BPR Consulting Group (C-246-2023), 4Leaf Inc. (C-256-2023), and TRB and Associates (C-257-2023) for Plan Review Services, Permit Technician Services, and Inspection Services for a cumulative total amount not to exceed $230,000 over a three-year term.
Regular-Unfinished Business
18. Amendment to Funding Agreement with the South Shore Transportation Management Association
Note: Staff provided an updated Attachment 03.
Action: Moved/Seconded: Bass/Friedrich
Yes: Creegan, Bass, Friedrich, Wallace, Robbins
Action: Passed Motion 2023-103 authorizing and directing the Mayor to execute Amendment 1 (C247-2023) to the Funding Agreement with the South Shore Transportation Management Association (SS/TMA); Passed Resolution 2023-111 appropriating an additional $500,000 for Microtransit Service from General Fund Undesignated Excess Reserves to fund SS/TMA Agreement Amendment 1, with an additional $200,000 that will be tied to the SS/TMA receiving the TDA funds for microtransit.
Public Comment was heard from the following people:
1. Duane Wallace
2. Ed Mosur
3. Steve Teshara, Chair, SSTMA Board of Directors
4. Sharon Kerrigan, South Tahoe Association of Realtors *written material provided
19. Draft City Charter
Action: Moved/Seconded: Creegan/Bass
Yes: Creegan, Bass, Friedrich, Robbins
No: Wallace
Action: Passed Motion 2023-104 authorizing the Ad Hoc Charter City Subcommittee to initiate public outreach on draft city charter.
Public Comment was heard from the following people:
1. Duane Wallace, CEO of South Tahoe Chamber of Commerce
2. Ed Mosur
3. Scott
4. Steve Teshara, Tahoe Chamber of Commerce
5. Sharon Kerrigan, South Tahoe Association of Realtors *written material distributed Written Public Comment was received from the following people:
1. Terri Jinkens
2. David Jinkens
3. Doug Rosner
6. Duane Wallace, CEO of South Tahoe Chamber of Commerce
7. Spencer
8. Kathleen and Steven
28 11 21 2023 Minutes
20. Update on the Multi-Family Dwelling (MFD) Inspection and Single Room Occupancy (SRO) Programs
Action: Received and Filed.
Regular-New Business
21. Short Term Rental Enforcement
Note: Robbins requested a future agenda item for raising illegal VHR fines and to begin enforcement against internet listing agencies through the interpretation of the current City Code (Council provided consensus).
Action: Received presentation.
Public Comment was heard from the following people:
1. Diane Reese, Tahoe Neighborhoods Group
2. Peggy Bourland, Tahoe Neighborhoods Group
3. Ed Mosur
Written Public Comment was received from the following people:
1. John Kolesar
2. Kathleen Bailey
22. 2024 City Council Meeting Schedule
Action: Moved/Seconded: Bass/Friedrich
Yes: Creegan, Bass, Friedrich, Wallace, Robbins
Action: Passed Resolution 2023-112 adopting the 2024 City Council regular meeting schedule.
23. City Council Travel Authorization - 2024 Civicwell Policymaker Conference (March 14-17, 2024) Action: No action taken
Public Comment was heard from the following people:
1. Ed Mosur
24. Amendments to Cannabis Ordinance, Public Safety License Ordinance, and Clean Indoor Air Ordinance Regarding On-Site Consumption, Medicinal Delivery, and to Remove Outdated Provisions Regarding Development Agreements and Existing Medical Marijuana Dispensaries
Note: Mayor Pro Tem Bass recused himself on this item due to financial interest in the cannabis industry and left the meeting.
Public Comment was heard from the following people:
1. Melissa Soderston
2. Ryan O’Malley, Tahoe Wellness Center
3. Ed Mosur
4. Jess, Cannablue Dispensary
5. Alex Gosselin, Owner of Cannablue Dispensary
6. Scott
7. Angie Regan
8. Sarah, Cannablue Dispensary
Action: This item was continued to the December 12, 2023 City Council meeting.
Adjournment
At 9:57 p.m. Mayor Creegan took an oral vote of Councilmembers present, to continue the meeting past 10 p.m. Councilmembers Friedrich, Wallace and Robbins voted yes, Mayor Creegan voted no. Consistent with City Council protocols, requiring a unanimous vote, Mayor Creegan adjourned the meeting.
Agenda Planning Calendar
25. Agenda Planning Calendar
29 11 21 2023 Minutes
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions _____________________ _______________
Cristi Creegan, Mayor Date
Attest:
______________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
30 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:4
Agenda Item: Investment Portfolio Report - September 30, 2023 Executive Summary: In accordance with the City of South Lake Tahoe Financial Policies and State law, a quarterly investment report is hereby submitted to the members of the City Council. As of September 30, 2023, the City's total cash and investment balances across all funds is $173.9 million.
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report - Investment Report Sept. 2023.docx
02-Operations Cash 09 30 2023.pdf
03-Fiscal Agent 09 30 2023.pdf
04-Graph 09 30 2023.pdf
05-Cash September 2023.pdf
31 Council Agenda Report December 12, 2023 Page | 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Investment Portfolio Report as of September 30, 2023 Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 Background: In accordance with the City of South Lake Tahoe Financial Policies and State law a quarterly investment report shall be submitted to the members of the City Council.
Issue and Discussion: The attached report for the period ending September 30, 2023, describes the type of investments, the issuers, the maturity dates, the par value and the market value. Total cash for operations and cash held by fiscal agents is $173,852,446.
Cash available for operations is $102,537,908. This includes Cash in Bank of $12,379,107 with the remaining amount in various investments diversified in accordance with the City’s adopted Investment Policy. The total portfolio yield is 4.20%. Based on this report the City of South Lake Tahoe will be able to meet projected operating expenditures for the next six months.
Cash held by fiscal agents for debt service is $71,314,538. These investments comprise the reserves and other accounts held in trust for debt service, lease financing, and capital projects financed with debt.
Fund Type Total Cash Balance Operations Balance Fiscal Agent Balance Trust and Agency $12,101,058 $1,740,101 $10,360,957
Special Revenue $36,445,296 $36,445,296 -
General Fund $28,714,870 $28,714,870 -
Internal Service $8,173,594 $8,173,594 -
Debt Service $58,451,389 $305,351 $58,146,038
Enterprise $10,112,074 $7,304,531 $2,807,543
CIP $19,854,165 $19,854,165 -
Grand Total $173,852,446 $102,537,908 $71,314,538
The attached documents include investment terms that are defined below:
Current yield – The investments annual income (interest or dividends) divided by the current price of the security.
Weighted par – Weighting the price of each bond by the total price of the entire portfolio. Weighted yield – The current yield multiplied by the weighted par, provides the yield of the bonds in the portfolio.
Financial Implications: None.
Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies)
Policy Implications: Consistent with City’s Financial Policies. 32 CITY OF SOUTH LAKE TAHOE
OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF SEPTEMBER 30, 2023
INVESTMENT TYPE ISSUER PAR VALUE
Local Agency Investment Fund State Treasurer 42,172,396$ 41,594,960$ 3.53% 41.1% 1.45% N/AFederal Home Loan Bank Government Agency 1,000,000$ 896,655$ 1.00% 0.98% 0.01% 5/27/2026 Federal Farm Credit Banks Government Agency 1,000,000 $ 894,981$ 1.50% 0.98% 0.01% 12/14/2026Federal Farm Credit Banks Government Agency 1,000,000 $ 983,290$ 1.67% 0.98% 0.02% 3/8/2024Fed. Home Loan Bank Government Agency 1,000,000$ 932,454$ 3.00% 0.98% 0.03% 3/29/2027Federal Farm Credit Banks Government Agency 1,000,000 $ 948,515$ 3.11% 0.98% 0.03% 4/13/2026 Fed. Home Loan Bank Government Agency 2,000,000$ 1,976,401$ 2.63% 1.95% 0.05% 2/26/2024Fed. Home Loan Bank Government Agency 1,000,000$ 982,911$ 4.25% 0.98% 0.04% 6/20/2025Fed. Home Loan Bank Government Agency 1,000,000$ 956,928$ 4.10% 0.98% 0.04% 6/30/2027Fed. Home Loan Bank Government Agency 1,000,000$ 975,290$ 5.00% 0.98% 0.05% 9/30/2027Fed. Home Ln Mtg Corp Government Agency 1,000,000$ 992,237$ 5.05% 0.98% 0.05% 12/19/2024Fed. Home Ln Mtg Corp Government Agency 1,000,000$ 991,208$ 5.30% 0.98% 0.05% 11/28/2025Fed. Home Ln Mtg Corp Government Agency 2,000,000$ 1,986,846$ 5.00% 1.95% 0.10% 8/22/2024Fed. Home Loan Bank Government Agency 2,000,000$ 1,974,637$ 4.75% 1.95% 0.09% 1/30/2025Fed. Home Ln Mtg Corp Government Agency 2,000,000$ 1,988,289$ 5.50% 1.95% 0.11% 3/13/2025Fed. Home Loan Bank Government Agency 1,000,000$ 998,061$ 5.00% 0.98% 0.05% 1/5/2024Fed. National Mtg Association Government Agency 2,500,000$ 2,492,212$ 5.13% 2.44% 0.12% 4/26/2024Fed. Home Loan Bank Government Agency 2,500,000$ 2,496,287$ 5.13% 2.44% 0.12% 1/26/2024Fed. Home Loan Bank Government Agency 2,500,000$ 2,494,143$ 5.10% 2.44% 0.12% 2/15/2024Fed. Home Ln Mtg Corp Government Agency 1,000,000$ 998,074$ 6.00% 0.98% 0.06% 8/16/2028U.S. Treasury Bill Treasury Obligations 7,307,025$ 7,416,054$ 5.37% 7.13% 0.38% 12/14/2023U.S. Treasury Bill Treasury Obligations 7,305,975$ 7,408,103$ 5.43% 7.13% 0.39% 12/21/2023U.S. Treasury Bill Treasury Obligations 4,866,655$ 4,882,083$ 5.51% 4.75% 0.26% 3/7/2024
WEIGHTED
PAR
WEIGHTED
MARKET VALUE CURRENT YIELD YIELD MATURITY DATE
1 of 2
33 CITY OF SOUTH LAKE TAHOE
OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF SEPTEMBER 30, 2023
Certificate of Deposit Barclays bank/Delaware 250,000 $ 245,426$ 2.85% 0.24% 0.01% 6/3/2024Certificate of Deposit Capital One NA 250,000$ 240,022$ 3.10% 0.24% 0.01% 6/2/2025Certificate of Deposit Capital One Bank (USA) NA 250,000$ 235,789$ 3.15% 0.24% 0.01% 6/2/2026Certificate of Deposit State Bank of India 250,000$ 233,493$ 3.30% 0.24% 0.01% 6/1/2027Cash in Bank General & Sweep 12,379,107$ 12,379,107$ 0% - 5.20728% 12.07% 0.52% N/APetty Cash 6,750$ 6,750$ N/A 0.01% 0.00% N/A TOTAL 102,537,908$ 101,601,207$ 4.20% (Total Portfolio Yield) The Investment porfolio at September 30, 2023 is in compliance with the Investment Policy of the City of South Lake Tahoe. The City of South Lake Tahoe will be able to meet its projected expenditure requirements for the next six months. Valuation is based upon the State Treasurer's Office LAIF quarterly apportionment rates and US Bank Safekeeping. 2 of 2
34 CITY OF SOUTH LAKE TAHOE INVESTMENT REPORT
CASH AND INVESTMENTS HELD WITH FISCAL AGENTS
AS OF SEPTEMBER 30, 2023
BOND ISSUE CURRENT MATURITY
ACCOUNT INVESTMENT TYPE ISSUER COST VALUE MARKET VALUE YIELD DATE So Tahoe JPFA Lease Rev Bonds 2023 A Project Fund Dreyfus Gov Sec CM Inst 227 Dreyfus 56,166,967 56,166,967 5.21% N/A Lease Revenue Fund Dreyfus Gov Sec CM Inst 227 Dreyfus 226,455 226,455 5.21% N/A Cost of Issuance Account Dreyfus Gov Sec CM Inst 227 Dreyfus 95,505 95,505 5.21% N/ASo Tahoe JPFA Ref Lease Rev Bonds 2016 A Lease Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 798 798 5.23% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 74,037 74,037 5.23% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 1,215,002 1,215,002 5.23% N/A Reserve Assured Guaranty Municipal Bank of New York Mellon - 2 0.00% N/A So Tahoe JPFA Parking Rev Bonds 2013 Debt Service Reserve Blackrock Treasury Trust Bank of New York Mellon 591,075 591,075 5.23% N/A Refunding Account Blackrock Treasury Trust Bank of New York Mellon 77 77 5.23% N/A Debt Service Account Blackrock Treasury Trust Bank of New York Mellon 204,306 204,306 5.23% N/A Supplemental Reserve Blackrock Treasury Trust Bank of New York Mellon 2,012,084 2,012,084 5.23% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 0 0 4.76% N/A So Tahoe JPFA Ref Rev Bonds 2014 A, 2015 A, 2017 A Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 117 118 5.19% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 1,176,567 1,176,567 5.23% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 2,816,139 2,816,139 5.23% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 156 156 5.23% N/A So Tahoe JPFA (RPA 1) Reserve Blackrock Treasury Trust Bank of New York Mellon 5,348,056 5,348,056 5.23% N/ASuccessor Agency to the So Tahoe RDA, CFD 2001-1, Refdg Series 2015 Special Tax Blackrock Treasury Trust Bank of New York Mellon 365,408 365,408 5.23% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 85,192 85,192 5.23% N/A Reserve Blackrock Treasury Trust Bank of New York Mellon 569,072 569,072 5.23% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 248 248 5.23% N/A City of South Lake Tahoe 2014 Pension Obligation Bonds Interest Blackrock Treasury Trust Bank of New York Mellon 3,286 3,286 5.23% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 1,117 1,117 5.23% N/ACity of So Lake Tahoe 2012 COPS, Road Improvmt. Lease Payment Fund First American Govt Obligation Fund/Money Mkt US Bank 14,222 14,222 4.81% N/A Reserve Account First American Govt Obligation Fund/Money Mkt US Bank 348,646 348,646 4.81% N/A TOTAL 71,314,535 71,314,538
Valuation is based upon the valuations contained in the monthly statements provided by the trust departments of the fiscal agents. 35 LAIF
47%
Medium Term
Certificate of Dep
1%
Treasury
Obligations
22%
Government Agency
30%
City of South Lake Tahoe
Operations Cash Investment Portfolio
Market Value as September 30, 2023
36 CITY OF SOUTH LAKE TAHOE
CASH REPORT
SEPTEMBER 30, 2023
FUND FUND NAME OPERATIONS CASH FISCAL AGENT TOTAL CASH TOTAL # BALANCE CASH BALANCE BALANCE OPERATIONS FISCAL AGENT CASH BALANCE 100 General Fund 28,216,143.13 $28,216,143.13
102 Measure S - Sales Tax 498,727.20 $498,727.20 $28,714,870 $0 $28,714,870 201 Gas Tax 2105 105,943.19 $105,943.19
207 Snow Removal 262,545.86 $262,545.86
208 Snow Removal - Equipment Replac 3,530,787.96 $3,530,787.96 210 Vehicle Replacement 130,966.92 $130,966.92
211 Police Vehicle Replacement 461,371.85 $461,371.85
213 Fire Vehicle Replacement 865,960.98 $865,960.98
215 Disaster Relief (75,539.35) ($75,539.35)
216 Transit Center 40,584.98 $40,584.98
217 Arts Program 7,859.82 $7,859.82
218 VHR Program 292,436.60 $292,436.60
220 Parks and Recreation 13,377,373.20 $13,377,373.20
221 Ice Arena 84,895.88 $84,895.88
222 Fire Safety Sales Tax 132,874.07 $132,874.07
223 Cannabis Program 1,491,253.85 $1,491,253.85
224 PEG Programming 304,481.79 $304,481.79
225 Tobacco Law Enforcement Grant 9,506.16 $9,506.16
229 DUI/Traffic Safety Grant (35,837.30) ($35,837.30)
230 Local Law Enforcement 1,994.32 $1,994.32
231 AB3229 COPS 112,844.86 $112,844.86
232 Safety Sales Tax 500,882.54 $500,882.54
233 Forfeiture - State Fund 38,477.07 $38,477.07
235 Forfeiture - Justice Fund 10,619.30 $10,619.30
236 EMS - JPA 348,317.97 $348,317.97
237 Boat Patrol - Grant 34,837.98 $34,837.98
238 Domestic Violence (DVRT) Grant 5,253.01 $5,253.01
240 Solid Waste AB939 33,135.87 $33,135.87
241 Clean Community 24,258.88 $24,258.88
242 Vehicle Abatement 158,195.28 $158,195.28
243 Nuisance Abatement 149,504.78 $149,504.78
244 Solid Waste JPA 1,132,594.49 $1,132,594.49
245 Storm Water Mgmt/Sweeping 156,058.87 $156,058.87
250 Hsng&ED - Work Force Housing 5,836,711.85 $5,836,711.85 251 Hsng & Ed - Home 1,053,887.50 $1,053,887.50
252 Hsng & Ed - CDBG 130,141.12 $130,141.12
253 Hsng & Ed - Administration 187,598.92 $187,598.92
255 CDBG Program Income Loans 142,608.45 $142,608.45
256 CDBG Economic Development (144,908.08) ($144,908.08) 257 CDBG - ED Program Income 0.00 $0.00
258 Calhome Loan Repayments 132,327.66 $132,327.66
259 First Time Homebuyers Rev Loan 9,674.99 $9,674.99
263 TOT Revenue Fund 1,808,185.59 $1,808,185.59
270 General Plan/Community Plan 687,311.18 $687,311.18
271 Building Permit Fees 1,817,225.65 $1,817,225.65
280 Ski Run Business Improvement 8,983.19 $8,983.19
281 Measure S Maintenance Fund 75,118.71 $75,118.71
284 Measure S City Maintenance 427,133.97 $427,133.97
285 Tourism Improvement District (TID) 356,238.73 $356,238.73 290 Opioid Settlement Proceeds 222,615.43 $222,615.43 $36,445,297 $0 $36,445,297 301 City CIP 19,018,459.23 $19,018,459.23
303 City CIP - Reg.Surf.Transp.Progr 199,072.51 $199,072.51 306 Rehab Water Quality Projects 2,892.03 $2,892.03
310 Long term Capital Replacement 416,533.64 $416,533.64 320 Housing - CIP Projects 217,207.62 $217,207.62 $19,854,165 $0 $19,854,165 401 City Debt Service 305,350.59 58,146,038.26 $58,451,388.85 $305,351 $58,146,038 $58,451,389 501 Airport 2,334,624.40 $2,334,624.40
510 Parking Management Bellamy 182,068.28 $182,068.28
515 Parking Management Plan 20,187.44 $20,187.44
520 Parking Garage 4,176,355.64 2,807,542.67 $6,983,898.31 550 Transit - Stage 591,294.84 $591,294.84 $7,304,531 $2,807,543 $10,112,073 601 Self Insurance - Health, Vision, Den 607,430.10 $607,430.10 602 Self Insurance - Workers Comp 6,089,053.72 $6,089,053.72 604 Payroll 1,452,665.45 $1,452,665.45
605 Health Insurance Savings 24,444.53 $24,444.53 $8,173,594 $0 $8,173,594 701 Trust 917.00 $917.00
707 Park Avenue CFD Fund 875,796.31 1,019,921.08 $1,895,717.39 711 Bijou ECP CFD 166,570.58 $166,570.58
712 Harrison Avenue CFD 163,474.72 $163,474.72
725 RD Obligation Retirement Fund 525,354.79 9,341,035.65 $9,866,390.44 751 Special Assessment District 4,572.00 $4,572.00
762 Tahoe Transportation Authority 3,416.00 $3,416.00 $1,740,101 $10,360,957 $12,101,058 Total Cash and Investments $102,537,908.29 $71,314,537.66 $173,852,445.95 $102,537,908 $71,314,538 $173,852,446
SUBTOTAL BY CATEGORY
37 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:5
Agenda Item: Fiscal Year 2022-23 Quarterly Financial Status Report - Quarter Ending September 2023 Executive Summary: In accordance with the City's Financial Policies, the Finance Department submits reports to City Council on a periodic basis to provide assurance of budget compliance and for informational and comparative purposes. Attachment 2, “FY 2022/23 Quarterly Budget and Financial Status Report for Period Ending September 30, 2023†summarizes operating revenues and operating expenditures (unaudited figures) for the General Fund and Measure S Sales Tax fund for the year-todate providing an analysis of any significant budget variances.
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member: Andrew Black, Financial Services Supervisor Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - FY 2022-23 Quarterly Budget
02-FY 2022-23 Qtrly Budget Report Sept 2023
38 Council Agenda Report- December 12, 2023 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Fiscal Year 2022/23 Quarter End Financial Status Report as of September 2023 Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance, (530) 542-7431; Andrew Black, Financial Services Supervisor, (530) 542-6016
Background: The Finance Department submits quarterly reports to City Council to provide assurance of budget compliance and for informational and comparative purposes throughout the year. Attachment 2, “FY 2022/23 Quarterly Budget and Financial Status Report for Period Ending September 30, 2023” covers the preliminary results of the entire fiscal year 2022-23 period. The report summarizes General Fund operating revenues and operating expenditures (unaudited figures) and provides an analysis of any significant budget variances.
Issue and Discussion: At the end of the fourth quarter with 100% of the year complete, actual revenues within the primary General Fund were at 106.4% of the amended budget, while expenditures were at 93.6% of appropriations. All departmental expenditures were below the total allocated budget.
Through September 30th, the City received Measure S Sales Tax payments, accounted for in a separate general fund, totaling $7.9 million. This revenue was allocated to various projects and programs, such as Fire and Police safety positions and programs, including 7 firefighters previously partially funded by a SAFER grant, streets and snow removal vehicle and equipment replacement, road rehabilitation, and several others. See Attachment 2 for further analysis.
Financial Implications: At the end of the Fiscal Year 2022-23, total budgeted expenditures were projected to exceed revenues by $5.8 million. Based on preliminary unaudited actual results, General Fund revenues exceeded expenditures by $1.5 million. The Finance department will submit the final year-end results in the form of an Annual Comprehensive Financial Report (ACFR) including audited financial statements to the City Council in May of 2024.
Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes in the environment).
Policy Implications: Consistent with City’s Financial Policies. 39 2022‐23 QUARTERLY FINANCIAL REPORT Page 1 of 2 4th QUARTER ENDING SEPTEMBER 30, 2023
CITY OF SOUTH LAKE TAHOE
2022-23 QUARTERLY FINANCIAL REPORT
4TH QUARTER ENDING SEPTEMBER 30, 2023
Thisreportsummarizesthe City’sfinancial position forthe General Fund for Fiscal Year 2022‐23 displaying expenditures at the department level and revenues by type. It compares actual revenues and expenditures received through September 2023 (preliminary unaudited figures) to the total budget.
General Fund Financial Condition
As of September 30th, with 100% of the year complete, General Fund revenues are at 106.4% of projections and expenditures are at 93.6% of appropriations.
Revenues. The top three revenues, Property Tax, City Transient Occupancy Tax (TOT), and Sales Tax generated 56.5% of the total $58.1 million General
Fund revenues collected through
September 30th. Overall revenues
were $5.0 million higher than last
fiscal year 2021‐22.
Property Tax and Motor Vehicle
License Fees (MVLF) increased
from the previous fiscal year by
10% ($963K) and 8.3% ($211K)
respectively, driven by higher
home sale prices and rising
property value assessments
within South Lake Tahoe.
Transient Occupancy Tax (TOT)
receipts, including TOT from the
Project area but excluding TOT
audits, showed a slight increase
of $139K, or approximately 1%
above previous year. Sales Tax
and Measure Q revenue
combined also showed a 1%
increase ($57K) when compared
to last fiscal year 2021‐2022.
Increases in various other revenue categories and sources have significantly contributed to the overall revenue growth of $5.0 million in comparison to the previous year. These increases include Interest Income ($1.1M), Business License Tax ($273K), Parking/Code Citation Fines ($428K), building fees ($415K), and transfers in ($328K).
In comparison to the current year’s budget, Fire department revenues were $1.5M below projections primarily due to a multi‐year project funded by the Southern Nevada Public Land Management Act (SNPLMA) grant and lower than projected overtime reimbursements. Parks and Recreation’s golf course and recreation program revenues were also lower than anticipated. These budget shortfalls were offset by several revenue categories that performed above budgeted projections, including Development Services ($664K), Police ($256K), Public Works ($256K), as well as those performed above last year’s results described previously.
Revenues by Type Total Budget
as of Sept 30
Actuals through
Sept 30
As % of
Budget
Property Tax 10,160,000 $ $ 10,643,052 104.8% Transient Occupancy Tax ‐ City 10,413,562 10,943,007 105.1% Transient Occupancy Tax ‐ Project Area 7,040,000 7,283,796 103.5% Sales Tax 7,100,000 7,304,010 102.9% Measure Q 3,500,000 3,955,207 113.0% Motor Vehicle License Fees (MVLF) 2,515,000 2,745,534 109.2% Franchise Taxes 1,650,000 1,805,349 109.4% Business License Tax 1,692,000 2,147,573 126.9% Finance ‐ Other Revenues 1,128,050 2,419,509 214.5% General Government 252,483 168,130 66.6% Police 2,233,796 2,490,254 111.5%
Fire 3,164,530 1,680,850 53.1%
Public Works 493,300 749,247 151.9% Development Services 1,459,503 2,123,817 145.5% Parks and Recreation 1,068,481 758,569 71.0% Transfers In 392,438 362,438 92.4% Miscellaneous General Fund 351,699 526,413 149.7% REVENUES TOTAL 54,614,842 $ $ 58,106,756 106.4% 40 2022‐23 QUARTERLY FINANCIAL REPORT Page 2 of 2 4th QUARTER ENDING SEPTEMBER 30, 2023 Expenditures. Out of the actual expenditures totaling $56.6 million through September 30th, approximately $33.3 million or 55.9% was allocated to personnel expenses, representing 26 payroll periods or 100% of periods for the year.
Out of the remaining 44.1% or approximately $23.3 million of actual expenditures, $11.4 million is attributed to transfers‐out, $4.5 million to professional, technical and other contract services, $3.4 million to miscellaneous general expense including taxes and fees, travel and training, communications etc., $1.4 million to purchases of tools, parts, software, machinery and equipment, and the remaining $2.6 million to utilities, general supplies, and other miscellaneous expense.
Total expenditures at year‐end were
below budget by $3.8 million
(preliminary unaudited figure). A large
portion of this amount ($2.1 million,
including $300K vacancy factor), is
attributed to salary savings. Additionally,
approximately $1.6 million was carried
over into the new fiscal year to pay for
obligations that were budgeted and not
fully received or could not be completed
in fiscal year 2022‐23.
The overall expenditures exceeded last fiscal year 2021‐22 by 5.4% or $2.9 million. Approximately $624K is attributed to higher salaries and benefits costs, while the remaining increase is due to utilities expense, technical/professional services, equipment/vehicle purchases, and software implementation costs.
Measure S Sales Tax General Fund
Measure S, a 1% city‐wide sales and use tax, went
into effect on April 1, 2021. In the FY 2022‐23
total budget, this revenue was projected to
generate approximately $7.0 million.
Revenues. The City received Measure S Sales Tax
totaling $7.9 million for Fiscal Year 2022‐23.
Expenditures. City Council allocated a significant
portion of the total projected annual revenue for
various purposes including funding for annual
road reconstruction, seven firefighter positions
previously funded by the SAFER grant, setting
aside fundsfor the rehabilitation of Fire Station II,
and year 3 debt service for the emergency
communications system for Fire, Police, and
Public Works. Throughout the fiscal year, City
Council additionally designated available
Measure S fund balance for the creation of the
South Shore Fuels Reduction Program, purchase
of snow removal equipment and related debt
service, and funding for construction of the new
Recreation Center. As of September 30th, a total
of $7.7 million has been transferred out for these
Measure S designated projects and programs.
Expenditures by Department
Total Budget
as of
Sept 30
Actuals
through
Sept 30
As % of
Budget
General Government 5,261,424 $ $ 4,900,328 93.1% Finance 2,738,191 2,579,731 94.2% Miscellaneous General Fund 16,900,748 16,895,632 100.0% Police 13,617,368 12,833,318 94.2% Fire 11,474,696 9,873,398 86.0% Public Works 4,860,062 4,530,391 93.2% Development Services 2,120,137 1,740,164 82.1% Parks and Recreation 3,486,545 3,256,714 93.4% EXPENDITURES TOTAL 60,459,171 $ $ 56,609,676 93.6% Measure S Sales Tax
Total Budget as
of Sept 30
Actuals
through
Sept 30
As % of
Budget
REVENUES
Measure S Sales Tax 7,000,000 $ $ 7,900,148 112.9% Interest/Dividends Revenue ‐ 20,009 100.0% REVENUES TOTAL 7,000,000 $ $ 7,920,157 113.1% EXPENDITURES and FINANCING USES
Technical Services 5,000 ‐ 0.0% Transfer out to/for:
Debt Service ‐ Communication System 554,643 554,643 100.0% Debt Service ‐ Snow Removal Equip 301,361 301,361 100.0% Fire Marshall postion (50%) 110,692 85,572 77.3% Fire Station II Rehabilitation 500,000 500,000 100.0% General Fund ‐ Safety Equip. 121,400 121,400 100.0% Hazardous Fuels Reduction ‐ Airport 200,000 ‐ 0.0% Police Lieutenant position 271,745 123,174 45.3% Police Officer (Tobacco grant not renewed) 70,013 70,013 100.0% Recreation Center Construction 1,000,000 1,000,000 100.0% Road Reconstruction 2,500,000 2,500,000 100.0% Seven (7) Firefighters 979,030 979,030 100.0% South Shore Fuels Reduction Program 392,987 305,633 77.8% Stateline Ave Complete Streets 100,000 100,000 100.0% Storm Water Program 50,000 50,000 100.0% Stormdrain Replacement 200,000 200,000 100.0% Street and Snow Vehicle Replacement 843,263 843,263 100.0% EXPENDITURES TOTAL 8,200,134 $ $ 7,734,089 94.3% 41 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:6
Agenda Item: Purchase of Three Police Patrol Vehicles from National Auto Fleet Group Executive Summary: This action item would authorize the purchase of three 2024 Chevrolet Tahoe 4WD PPV police vehicles for a total purchase price of $169, 305.75. Although patrol vehicle purchase was expected this fiscal year, the timing of this purchase is the result of a unexpected and immediate vehicle allocation from National Auto Fleet Group. Upfitting vendors have not had sufficient time to respond with proposals, as such the PD will return to council for future authorization to purchase upfitting equipment.
Requested Action / Suggested Motions: Pass a Motion authorizing the purchase of three (3) 2024 Chevy Tahoe 4WD PPV police vehicles using existing budget appropriations up to $169,305.75.
Responsible Staff Member: Jeff Roberson, Police Lieutenant Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - Police Vehicle Replacement.docx
2-2024 Chevy Tahoes National Auto Sales.pdf
3-National Auto Fleet Contract 091521.pdf
42 Council Agenda Report- December 12, 2023 Page 1 of 3 City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Police Patrol Vehicle Replacement
Location: Citywide
Responsible Staff Member: Jeff Roberson, Police Lieutenant (530) 542-6521 Background: Historically, funding for the purchase of police vehicles has come almost entirely from Proposition 172 – Safety Sales Tax, a restricted revenue source required to be used specifically for Public Safety services which includes sheriffs, police, fire protection, county district attorneys, county corrections and ocean lifeguards. This request to purchase three replacement patrol police vehicles uses funds from that source.
Issue and Discussion: The Police Department seeks to replace aging portions of our fleet as vehicles reach the end of their service life.
The Police Operations Division (marked patrol vehicles) currently has several high mileage vehicles to be replaced. These replaceable patrol cars are near 10 years old, have high mileage, high engine hours, or decommissioned as the result of collisions.
The Police Department seeks to purchase three 2024 Chevrolet Tahoe PPVs to be outfitted as patrol cars.
Chevrolet offers the Tahoe in a 4-wheel drive SUV, police pursuit vehicle (PPV) package.
The Police Department has found this specific vehicle to be effective, reliable, and comfortable for all seasons and variable driving conditions in South Lake Tahoe. This vehicle has also been selected and currently driven by the California Highway Patrol. The City’s Motor Pool Department endorses the purchase of this vehicle type and brand for the police patrol division to maintain consistency in the police fleet and efficiency in maintenance.
The department recommends purchasing these three marked police vehicles in an amount up to $169,305.75. This vehicle purchase will be done as a cooperative purchase through National Auto Fleet.
Equipment purchases to complete the build out of these vehicles usually accompany this request to purchase police patrol vehicles. A supply chain issue caused allocation of these patrol cars to be significantly delayed through this vendor, and then immediately and unexpectedly available. While the purchase of police vehicles was expected this fiscal year, the timing of this allocation did not allow adequate time for our regular suppliers to respond 43 Council Agenda Report- December 12, 2023 Page 2 of 3 with upfitting proposals. Without timely purchase, the dealer will release these allocated patrol vehicles to the wider market. To that point, a second purchase authorization will be brought before the council for the purchase of equipment to upfit these patrol vehicles.
Financial Implications: The expense of this vehicle purchase recommended in this staff report will have no impact on the City General fund.
The 2023-2024 Police Department Vehicle Replacement fund has approximately $464,955 available (21102110 46130).
Purchasing Process: Staff recommends purchasing these vehicles through a cooperative purchase agreement. Our cooperative purchase partner is National Auto Fleet. The purchase price for three 2024 Chevrolet Tahoe 4WD PPV is $169,305.75.
Environmental Considerations: This is not a ‘project’ subject to review under the California Environmental Quality Act (CEQA) under CEQA guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies).
Policy Implications: This report considers Climate Action Plan Action Item EV-2 which directs that city fleet vehicles move toward electric vehicles. In conversations with the Sustainability Coordinator, we agree that emergency response EVs are not a viable option for emergency response police operations at this time. We have agreed that administrative travel vehicles may be the first practical EV option for the police department. There are several components to address by city action or developing technology before bringing EVs into the emergency response fleet.
Infrastructure: The infrastructure at the Police Department requires major upgrades to support EV emergency response vehicles. These upgrades include building wiring, transformers, meters, and the modifications to install each. Indications from Public Works are that components such as transformers may have a lead time of nearly two years from time of order. Additional infrastructure upgrades include a significantly larger emergency generator to carry that capacity in the event of power loss from the grid. However, consideration for such upgrades were discussed as part of future planning to implement Climate Action Plan Action Item EV-2. These discussions include adoption of EV cars for administrative travel cars, and a onetime build out of the electrical infrastructure upgrades for the police fleet. Surface upgrades may come in phases to include tree removal and carport installation to protect charging infrastructure from the weather. The City’s Sustainability Coordinator plans to release an RFP for Design of EV Charging Stations this summer. This will include the Police Department as the largest, most expensive, and complex site. The Sustainability Coordinator will be working with Liberty Utilities to get this project site on radar for front-of-meter upgrades.
Other considerations are addressed below and deal indirectly with infrastructure by addressing emergency operations rather than routine patrol operations. These other considerations may become irrelevant in the future as adoption of EV becomes universal. These infrastructure issues also impact contemporary adoption of administrative vehicles. 44 Council Agenda Report- December 12, 2023 Page 3 of 3 Fleet Resilience: Emergency operations, such as Caldor, require continuous use with little to no down time for emergency response vehicles. Energy transfer rates (ie, the fill up) for EV require much more down time that energy transfer in ICE emergency response vehicles; however, that difference may diminish in the future as infrastructure for EVs become more universal.
Collisions; damage that may be survivable and/or easily reparable for an ICE emergency response vehicle may be catastrophic for an EV. Sudden loss of a vehicle patrol vehicle may impact normal and emergency police operations with an inordinate and incapacitating delay for EV replacement.
Interoperability: In response to emergencies within and outside the county, our patrol officers often find themselves assisting other police and fire agencies. The nature of an emergency response requires officer and equipment self-sufficiency and ability to self-evacuate. Future SLTPD commitment to outside agency assist will have to come with consideration for EV infrastructure and availability in the affected or assisted area. The limited range of current 100kWh vehicle batteries undermines our police department’s ability to respond to assist without consideration for destination infrastructure; a definite impact to our availability for and effectiveness in providing outside assistance. 45 46
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091521-NAF
Rev. 3/2021 1
Solicitation Number: RFP #091521
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and 72 Hour LLC dba: National Auto Fleet Group, 490 Auto Center Drive, Watsonville, CA 95076 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B. EXPIRATION DATE AND EXTENSION. This Contract expires November 8, 2025, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.
C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.
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Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.
In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be
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returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.
C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change;
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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS
A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell
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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum; the terms of which will be negotiated directly between the Participating Entity and the Supplier. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased
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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party.For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use thetrademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.
2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers,
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resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. As applicable, Supplier agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Supplier in violation of applicable patent or copyright laws.
5. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.
B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
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14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.
15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for Products-Completed operations
$2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms
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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
$1,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
$2,000,000
5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is
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primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
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21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.
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C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names
81 091521-NAF
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of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation
82 091521-NAF
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and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier not use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by an Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S. Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.
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22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell 72 Hour LLC dba: National Auto
Fleet Group
By: __________________________ By: __________________________ Jeremy Schwartz Jesse Cooper
Title: Chief Procurement Officer Title: Fleet Manager
Date: ________________________ Date: ________________________ Approved:
By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:7
Agenda Item: Reimbursement Agreement with El Dorado County for Purchase of Communications Equipment for Fire Rescue Marine 17 Using 2021 Homeland Security Grant Funds in an amount up to $7,652
Executive Summary: City Council is asked to approve a funding reimbursement agreement with El Dorado County for the purchase of AIS secure communications GPS equipment for SLTFR Marine 17 not to exceed $7,652.00, appropriate funding in FY 2023-2024 budget, and authorize purchase of equipment and installation from Raymarine.
Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute a funding reimbursement agreement with El Dorado County for the purchase of AIS secure communications GPS equipment for South Lake Tahoe Fire Rescue Marine 17 not to exceed $7,652.00, appropriating funding in the FY 2023-2024 budget, authorizing purchase of the equipment and installation from Raymarine, and authorizing the City Manager to sign and submit all documents necessary documents for the completion of the grant scope.
Responsible Staff Member: Jay Manning, Battalion Chief, Jim Drennan, Fire Chief Reviewed and Approved By: Susan Blankenship, City Clerl Olga Tikhomirova, Director of Finance Heather Stroud, City Atorney
Attachments:
01-Staff Report - Funding Agreement with EDSO.docx
02-Resolution - Funding Agreement with EDSO.docx
03-Funding Reimbursement Agreement with El Dorado County for Marine 17 Equipment.pdf 04-Order Acknowledgement
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Council Agenda Report December 12, 2023 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Resolution Authorizing Purchase of AIS Equipment for SLTFR Marine 17 under a reimbursement agreement with El Dorado County using 2021 Homeland Security Grant funds in the amount up to $7,652.00.
Location: Citywide
Responsible Staff Members: Jay Manning, Battalion Chief (530) 542-6164, and Jim Drennan, Fire Chief (530) 542-6152
Background: The Homeland Security Grant is administered by El Dorado County on an annual basis and approves the funding of projects using Homeland Security Grant funds.
The funds are divided between public safety departments throughout El Dorado County, City Police and Fire Agencies.
Issue and Discussion: El Dorado County was awarded grant funds in the amount of $265,040.00 for the FY 2021 Homeland Security Grant, which was included in the County Sheriff’s Office Fiscal year 2023-2024 budget. As required by the Homeland Security Grant, The County Board of Supervisors reaffirmed the creation of an Approval Authority, representing the city of Placerville, City of South Lake Tahoe, Sheriff, Public Health, and Fire Districts to distribute the grant funds at the local level. The Approval Authority has agreed to disburse an amount not to exceed $7,652.00 to the City for the purchase of AIS GPS transponder system for SLTFR Marine 17. The Resolution authorizes the City Manager, or Fire Chief to sign and submit all documents, including but not limited to applications, agreement amendments, payment requests, and necessary documents for the completion of the grant scope.
Financial Implications: Application submitted will be in the amount up to $7,652.00 to fund the purchase of the AIS GPS Transponder System for SLTFR Marine 17 from Ray Marine, current vendor of the equipment installed in our City Marine units.
Upon award, funds should be appropriated into the Fiscal Year 2023-24 budget as follows:
Revenue: 100-02210-33316 County Homeland Security $7,652 Expense: 100-02210-46110 Equipment $7,652.00
The Funding/Reimbursement Agreement with the County requires certain compliance with the applicable law and grant requirements, including tagging and maintaining strict accountability of the equipment. Additionally, the equipment is subject to an audit by the County or the State of California (Cal OES) and must be made available for mutual aid, as 102
Council Agenda Report December 12, 2023 2
requested. The federally funded equipment can be disposed only upon receipt of written approval from the U.S. Department of Homeland Security or its delegated representative.
Environmental Considerations: The proposed action of applying for the grant funds is not a “project” under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) because it is a continuing administrative or maintenance activity such as purchases for supplies and personnel-related actions.
Policy Implications: Adhere to the 2021 FINANCIAL MANAGEMENTGRANT FUNDING
AND COMPLIANCE POLICY
3.1 APPROVAL PROCESS
Upon Grant approval the Department will receive a grant award letter from the funding agency detailing the measures necessary to accept the award. The city should also receive a finalized grant contract which will become a binding agreement. The grant contract and all compliance measures should be reviewed by the Grants Manager, Project Manager, and the Department Director. Grant Manager reviews the grant contract to ensure ability to maintain compliance, and the Director will ensure the department’s capability to comply with the contract and will make the appropriate recommendation to City Manager and City Council.
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Resolution 2023-XXX December 12, 2023 Page 1 of 2
Resolution 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
December 12, 2023
Resolution Authorizing Purchase of AIS Equipment for SLTFR Marine 17 under a Reimbursement Agreement with El Dorado County Using 2021 Homeland Security Grant funds in an Amount up to $7,652.00.
BACKGROUND
A. El Dorado County was awarded grant funds in the amount of $265,040.00 for the FY 2021 Homeland Security Grant, which was included in the County Sheriff’s Office Fiscal year 2023-2024 budget.
B. The grant provides funding for planning, equipment, training, exercises, and management/administrative costs.
C. The county is the Operational Area lead agency, will receive the grant funds, purchase and loan equipment and services to other participating agencies or reimburse agencies who purchase grant approved equipment or services.
D. The City of South Lake Tahoe is a local participating agency in the FY 2021 Homeland Security Grant program.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Authorizes and directs the Mayor to sign a reimbursement agreement with El Dorado County for the purchase of AIS transponder GPS equipment for SLTFR Marine 17 in the amount up to $7,652.00.
2. Certifies that the City of South Lake Tahoe has or will have sufficient funds to operate and maintain the project.
3. Certifies that if approved, funds under the jurisdiction of The City of South Lake Tahoe are available to begin the project.
4. Certifies that said applicant will expend grant funds in accordance with Grant Sub-Recipient Agreement Between El Dorado County and the City of South Lake Tahoe.
5. Appoints City Manager or a designee to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project.
6. Accepts the grant funds and authorize the Finance Director to appropriate the funds into the Fiscal Year 2023-2024 budgets as described in the staff report.
Adopted by the City of South Lake Tahoe City Council on December 12, 2023 by the following vote:
Yes:
No:
Absent:
Abstain:
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Resolution 2023-XXX December 12, 2023 Page 2 of 2
________________________ Date:_________
Mayor
Attest:
_________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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FUNDING/REIMBURSEMENT AGREEMENT WITH THE CITY OF SOUTH
LAKE TAHOE
THIS AGREEMENT made and entered into by and between the County of El Dorado, a political subdivision of the State of California (hereinafter referred to as "County") and the City of South Lake Tahoe (wherein after referred to as “City").
Recitals
WHEREAS, County applied for FY 2021 Homeland Security Grant programs (“Grant”); and
WHEREAS, County was awarded grant funds in the amount of $265,040, for the FY 2021 grant, which was included in the County Sheriff’s Office Fiscal Year 2023 - 2024 budget; and WHEREAS, Grant provides funding for planning, equipment, training, exercises, and management/administrative costs; and
WHEREAS, County, as the Operational Area lead agency, will receive the grant funds, purchase and loan equipment or services to other participating agencies, or reimburse agencies who purchase grant approved equipment or services; and
WHEREAS, as required by the Homeland Security Grant, on June 23, 2015, the County Board of Supervisors reaffirmed the creation of an Approval Authority, representing the City of Placerville, City of South Lake Tahoe, Sheriff, Public Health, and Fire Districts, to distribute the Grant funds at the local level; and
WHEREAS, City is a local participating agency in the FY 2021 Homeland Security Grant program; and
WHEREAS, the Approval Authority has agreed to disburse an amount not to exceed $7,652.00 in grant funds to City, for City to purchase: a GPS system (hereinafter referred to as the “Equipment”);
NOW, THEREFORE, County and City mutually agree as follows:
ARTICLE I
Payment of Funds: County will reimburse City in an amount not to exceed $7,652.00 solely for the purchase of Equipment within thirty (30) days after City presents an invoice, as well as documentation verifying that City complied with grant purchasing guidelines to County. In no event shall County’s obligation under this Agreement exceed $7,652.00. 23-2136 A 1 of 8
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ARTICLE II
Use of Funds: City will use the funds to be reimbursed by County solely for the purchase of the Equipment. City is responsible for any other costs incurred in accordance with grant purchasing guidelines related to the Equipment. City shall purchase the Equipment directly from the supplier and shall take title directly without title passing through the County. City will purchase the Equipment by May 31, 2024, or expiration date of grant if a time extension is granted for this project and present the County with an invoice for payment. In the event City does not purchase the Equipment by the grant’s expiration date, and invoice the County by the grant’s expiration date, or in the event City does not adhere to grant purchasing guidelines, County’s obligation for payment shall be null and void, and upon written demand by County, City shall return any funds it has received from County and not spent on the Equipment to County within thirty (30) days of mailing of written demand of County.
City shall submit to County its statement of the total sum of an amount not to exceed $7,652.00, identical to Attachment A, noting that the Equipment has been purchased and received.
Such statement shall be signed under penalty of perjury by an authorized signatory of City.
ARTICLE III
Term: This Agreement shall become effective when fully executed by both parties (“Effective Date”) covering the reimbursement of purchase of Equipment from the start of the grant term and shall expire when grant performance period expires, currently scheduled for May 31, 2024.
ARTICLE IV
Audit and Access to Records: The County shall have the right of access to any books, documents, papers, or other records which are pertinent to the Grant, to make audits, examinations, excerpts and transcripts. City will keep and maintain an accurate financial account, in accordance with generally accepted accounting principles, of all funds expended by City with respect to the Equipment until notification is provided by the county that the State Homeland Security Grant Program has closed the grant and completed all audits and reviews. Such accounting records shall be available for inspection by the County’s designee, during normal business hours at the offices of City, or the offices of its financial consultant.
ARTICLE V
Compliance with Applicable Law and Grant Requirements: City has read and understands the Grant and will comply with and require any vendor of the Equipment to comply with all laws, regulations and guidance documents that apply to the Grant. City is responsible for ensuring that all purchases for goods and services must comply with grant purchasing guidelines. Specifically, City shall comply with 2 Code of Federal Regulations (CFR) Part200, E.O. 12372, and any current Administrative Requirements, Cost Principles, and Audit Requirements.
City agrees to maintain accountability of all items, mark or tag all individual items or sets costing over $5,000 for inventory and control purposes, maintain or repair any items and ensure 23-2136 A 2 of 8
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all CFR required record keeping. ID tag numbers, location of storage, and physical condition will be reported by City to the County at the time of purchase and at least once per year thereafter.
Items lost or destroyed within the Grant Performance Period must be replaced solely by the City at its own expense. City is responsible for ensuring that all items, regardless of cost, procured under this or any federal grant programs will be maintained and controlled for the useful life of the items, and any sale, disposal, or planned destruction of said items will be done only upon receipt of written approval from the U.S. Department of Homeland Security or its delegated representative.
City agrees that federally funded equipment must be made available for mutual aid, as requested.
In the event an audit by the County or the State of California (Cal OES) determines City failed to comply with these guidelines, the County shall provide written notification of the violation and City may be required to reimburse the County for the total cost of the affected items.
ARTICLE VI
Debarment and Suspension Certification: By signing this agreement, City agrees to comply with applicable federal suspension and debarment regulations including, but not limited to 45 CFR 76.
By signing this agreement, City certifies to the best of its knowledge and belief, that it and its principals:
A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any federal department or agency; B. Have not within a three year period preceding this application/proposal/agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification of destruction of records, making false statements, or receiving stolen property; C. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in Paragraph b(2) herein;
D. Have not within a three (3)-year period preceding this application/proposal/agreement had one or more public transactions (Federal, State, or local) terminated for cause or default; E. Shall not knowingly enter any lower tier covered transaction with a person who is proposed for debarment under federal regulations (i.e., 48 CFR part 9, subpart 9.4), debarred, suspended, declared ineligible or voluntarily excluded from participation in such transactions, unless authorized by the State; and
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F. Shall include a clause entitled, "Debarment and Suspension Certification" that essentially sets forth the provisions herein, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.
If City is unable to certify to any of the statements in this certification, City shall submit an explanation to County.
The terms and definitions herein have the meanings set out in the Definitions and Coverage sections of the rules implementing Federal Executive Order 12549.
If City knowingly violates this certification, in addition to other remedies available to the Federal Government, County may terminate this agreement for cause or default.
ARTICLE VII
Independent Authority Liability: City is, and shall be at all times, deemed independent and shall be wholly responsible for the acts of the City’s employees, associates, agents, and contractors, if any, in connection with the purchase of the Equipment.
ARTICLE VIII
No Third Party Beneficiary: Nothing in this Agreement shall be construed to create any rights of any kind or nature in any other party not a named party to this Agreement.
ARTICLE IX
Termination: County may terminate this Agreement in the event City becomes unable to substantially perform any terms or conditions of the Agreement. In the event of early termination of the Agreement, funds previously received from County shall be returned to County within thirty (30) days of termination.
ARTICLE X
Notice to Parties: All notices to be given by the parties hereto shall be in writing and served by depositing same in the United States Mail, postage prepaid and return receipt requested.
Notices to County shall be in duplicate and addressed as follows:
EL DORADO COUNTY SHERIFF’S OFFICE
200 Industrial Drive
Placerville, CA 95667
ATTN: Asst. Deputy Director of OES
or to such other location as the County directs.
Notices to City shall be addressed as follows:
City of South Lake Tahoe
1901 Lisa Maloff Way
23-2136 A 4 of 8
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City of South Lake Tahoe Page 5 of 8 #8263
South Lake Tahoe, CA 96150
ATTN: Joe Irvin, City Manager
or to such other location as City directs.
ARTICLE XI
Indemnity: City shall defend, indemnify, and hold the County harmless against and from any and all claims, suits, losses, damages and liability for damages of every name, kind and description, including attorneys' fees and costs incurred, brought for, or on account of, injuries to or death of any person, including but not limited to workers, County employees, and the public, or damage to property, or any economic or consequential losses, which are claimed to or in any way arise out of or are connected with the purchase of the Equipment. This duty of City to indemnify and save County harmless includes the duties to defend set forth in California Civil Code section 2778.
This obligation to defend and indemnify the County shall survive the expiration or termination of this Agreement and shall remain in full force and effect. Within thirty (30) days after the Effective Date of this Agreement, City shall provide proof in a form satisfactory to the County’s Risk Manager of participation in a self-insurance program, or proof of insurance sufficient to meet City’s defense and indemnification obligations herein.
ARTICLE XII
Change to Agreement: This Agreement may be amended by mutual consent of the parties hereto. Said Amendment shall become effective only when in writing and fully executed by duly authorized officers of the parties hereto.
ARTICLE XIII
Administrator: The County Officer or employee with responsibility for administering this Agreement is Jeff Leikauf, Sheriff, or successor.
ARTICLE XIV
Authorized Signatures: The parties to this Agreement represent that the undersigned individuals executing this Agreement on their respective behalf are fully authorized to do so by law or other appropriate instrument and to bind upon said parties to the obligations set forth herein.
ARTICLE XV
Partial Invalidity: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will continue in full force and effect without being impaired or invalidated in any way.
ARTICLE XVI
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Venue: Any dispute resolution action arising out of this Agreement, including but not limited to litigation, mediation, or arbitration, shall be brought in El Dorado County, California, and shall be resolved in accordance with the laws of the State of California. Authority waives any removal rights it might have under Code of Civil Procedure Section 394.
ARTICLE XVII
Entire Agreement: This document and the documents referred to herein or exhibits hereto are the entire Agreement between the parties and they incorporate or supersede all prior written or oral Agreements or understandings.
ARTICLE XVIII
Time is of the Essence: The parties hereto acknowledge and agree that time is of the essence.
REQUESTING DEPARTMENT CONCURRENCE:
By: Dated: ____________________
Bryan Golmitz
Undersheriff
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first below written.
COUNTY OF EL DORADO:
Dated: __________________
ATTEST:
Kim Dawson, Clerk
of the Board of Supervisors
By: __________________________
Dated:________________________
By:_________________________________
Chair
Board of Supervisors
“County”
ATTEST:
Susan Blankenship, City Clerk
By:_______________________________
Dated:_____________________________
CITY OF SOUTH LAKE TAHOE
Approved By: ________________________
Cristi Creegan,Mayor
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XXX, XXXX
Sheriff Jeff Leikauf
Sheriff’s Office
County of El Dorado
200 Industrial Drive
Placerville, California 95667
Re: City of South Lake Tahoe
FY 2022 Homeland Security Grant Equipment
Dear Sheriff Leikauf:
I certify that the City of South Lake Tahoe completed the following purchase of the Equipment in accordance with grant purchasing guidelines and grant assurances.
Attached is the invoice for this Equipment. Please remit the reimbursement at your earliest convenience.
I declare under penalty of perjury under the laws of the State of California that the foregoing certification is true and correct. Executed on the date written above in El Dorado County, State of California.
City of South Lake Tahoe
By:________________________
23-2136 A 8 of 8
ATTACHMENT “A”
Cristi Creegan, Mayor
113
Teledyne FLIR Maritime US, Inc.
110 Lowell Road
HUDSON NH 03051
UNITED STATES OF AMERICA
ORDER ACKNOWLEDGEMENT Page 1 of 1
BILL
TO
610788
City of South Lake Tahoe Fire Department
2101 Lake Tahoe Blvd
South Lake Tahoe CA 96150 SHIP
TO
610788
City of South Lake Tahoe Fire Department
2101 Lake Tahoe Blvd
South Lake Tahoe CA 96150
ITEM PART
NUMBER
DESCRIPTION PLANNED
SHIP DATE
REQUEST
DATE
QTY PRICE AMOUNT
(USD)
10 E70529 AIS5000 Transponder Bundle 09/28/2023 09/28/2023 1 EA 3,500.00 3,500.00
20 E70372 Axiom Pro 12 RVX - 12.1" MFD
with RealVision 3D and 1kW
CHIRP
09/28/2023 09/28/2023 1 EA 2,250.00 2,250.00
THIS IS NOT AN INVOICE. PLEASE DO NOT PAY FROM THIS DOCUMENT. ORDER CONFIRMATION ONLY.
Teledyne FLIR Maritime US., Inc. acknowledges with thanks your order as detailed above subject to our standard terms and conditions, a copy of which is available on request.
SHIPPING & HANDLING 24.10
SUBTOTAL
TAX
TOTAL ORDER AMOUNT (USD)
5,774.10
505.23
6,279.33
SALES ORDER NO. ORDER DATE
PURCHASE ORDER NO. TERMS OF DELIVERY
SHIP VIA PAYMENT TERMS
EXPORT CURRENT DATE
24931041 09/28/2023
M17 Ex works prepay & add
UPS Ground (Weight Based Code) Credit Card Payment
No 09/28/2023
ORDER TYPE:
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:8
Agenda Item: Barton Avenue & 2nd Street Drainage Project - Ratification of Change Orders No. 1, 2, 3 & 4 ($228,561.50)
Executive Summary: The Barton Avenue & 2nd Street Drainage Project was awarded to contractor, Lafleur Excavating, Inc. on May 2, 2023, with an approved contract amount of $1,993,999 and an approved construction contingency of $199,400. The Contractor encountered unknown subsurface utility conflicts affecting STPUD water mains and S.W. Gas service laterals resulting in extra construction costs of approximately $179,000, which only left approximately $20,400 of construction contingency. Other unanticipated extra work included asphalt pavement tie-in and driveway transition pavement, two-sack cement slurry backfill of shallow storm drain pipe, and other quantities exceeding the estimated construction contract bid item amounts. Ultimately, the overall contract expense total exceeded the approved 10% construction contingency by $29,161.60. Attachment No. 3, Change Order No. 4 - Balancing Worksheet summary lists the contract bid items with over and under-quantity bid items and Project construction cost totals. The cost increase exceeding the approved 10% construction contingency will be covered by reimbursement from STPUD and SWG; no additional budget is required.
Requested Action / Suggested Motions: Pass a Motion ratifying Change Orders 1-4 and increasing construction contingency to 11.5% ($229,310) to be reimbursed by Southwest Gas and South Tahoe Public Utility District at no additional cost to the City.
Responsible Staff Member: Stan Hill, Engineering Manager, and Jason Burke, Complete Streets Program Manager
Reviewed and Approved By: Anush Nejad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney Joseph Irvin, City Manager Attachments:
01-Staff Report - CCO Close-Out.docx
02-Vicinity Map.pdf
03-CCO-4 Balancing Worksheet.pdf
04-LaFleur Excavating, Inc Contract_C-054-2023.pdf
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City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Barton Avenue & 2nd Street Drainage Project - Ratification of Contract Change Orders No. 1, 2, 3, and 4 to Lafleur Excavating, Inc. ($228,561.50) Location: Third St. and 2nd St. between Barton Ave. and Helen Ave; Barton Ave between 3rd St. and 2nd St; Helen Ave. between Third St. and Winnemucca Ave; Winnemucca Ave. between Helen Ave. and Silver Tip Ave; and Silver Tip Ave. between Winnemucca Ave. and Truckee Drive (see Attachment 02 – Vicinity Map)
Responsible Staff Members: Stan Hill, Engineering Manager/City Engineer Jason Burke, Complete Streets Program Manager
Background:
The Department of Public Works has received many complaints of flooding in the Barton Ave – Second Street neighborhood. Land division and development within the area, occurring prior to City of South Lake Tahoe (City) incorporation in 1965, did not include stormwater drainage systems. The flooding issue is most prevalent on 2nd Street between Barton and Helen Avenue and was noted as a priority problem area in the Drainage Master Plan Update presented to the City Council on April 20, 2021.
Public Works acquired a Proposition 68, Urban Flooding Protection grant sponsored by the California Natural Resources Agency. Design work to prepare the Project Plans, Specifications, and Engineer’s Estimate (PS&E) documents followed shortly after acceptance and appropriation of the grant funding (Resolution 2022-006).
Timeline:
The Project PS&E bid documents were prepared by consultant, SNG & Associates Engineering during the fall and winter of 2022-23.
At the May 2, 2023, City Council Meeting an agreement between the City and Lafleur Excavating, Inc. was approved for $1,993,999 and a 10% construction contingency of $199,400.
Construction of the Barton Ave & 2nd Street Drainage Project started in May 2023 and was completed at the end of October 2023.
Constructed improvements include a new stormwater collection, conveyance, and stormwater treatment drainage system. Following completion of the new stormwater drainage and treatment system, the old deteriorating street pavement with a multitude of utility trenching patchwork was milled and overlaid with a new pavement surface.
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Construction of the new stormwater drainage system will address historic urban flooding occurring at the intersection of Third Street and Helen Avenue, 2nd Street, east Helen Avenue, Winnemucca Avenue and Silver Tip Avenue.
Funding for a majority of the stormwater system improvements was provided through a Proposition 68, Urban Flooding Protection Grant Program sponsored by the California Natural Resources Agency. Funding for the street pavement mill and overlay work and part of the stormwater drainage work was provided through the City General Fund local match and the City’s Road Rehabilitation Project fund, consisting of Measure S funds, SB-1 RMRA funds, and Southwest Gas Payment In-Lieu funds as described within Resolution 2022-006. Project funding is further discussed and detailed within the Financial Implications section of this staff report.
Issue and Discussion:
During construction of the storm drainage system, the Contractor encountered unforeseen subsurface utilities that required relocation. In addition to relocation of subsurface utilities, extra work and materials were required to address various site conditions that were not foreseen during the preparation of the Project PS&E bid documents. By far, the extra cost to address relocation of existing subsurface utilities resulted in depleting the approved 10% construction contingency.
However, most of the expenses associated with relocating subsurface utilities were reimbursable franchise utility costs.
Some Project construction bid item quantities were less than the amount estimated within the agreement awarded to Lafleur Excavating and some quantities constructed were more than the estimated amount awarded to Lafleur Excavating. Public Works directed the Contractor to perform extra work through Contract Change Order (CCO) where work was not defined within the PS&E bid documents. Three CCOs were approved for Project construction. A final balancing CCO No. 4 is an “Over and Under” change order which will account for increases and decreases to the bid item quantities and final contract line-item expenses.
Although most of the expenses exceeding the approved 10% construction contingency were reimbursed by South Tahoe Public Utilities (STPUD) and Southwest Gas (SW Gas), Public Works is required to return to City Council for ratification of the Project budget increase that exceeds the authorized 10% construction contingency.
Financial Implications:
The CNRA, Prop. 68 grant included $1,150,000 in construction grant funding. All other funding for Project construction expenses was through a General Fund local match, the City Road Rehabilitation Program, or through reimbursement from STPUD and SW Gas. Construction funding sources are listed within Table 1.
Table 1 – Barton Ave & 2nd Street Drainage Project - Construction Funding Sources Fund Source Funding Amount
CNRA, Proposition 68, Urban Flooding Protection Grant Program $1,150,000 Local Match per Resolution 2022-006 $89,341
Road Rehabilitation Program (Measure S, SW Gas In-Lieu Fees, SB1 RMRA) $976,272 STPUD Reimbursement for Realignment of Water Mains and Water Services $129,000 Southwest Gas Reimbursement for Gas Service Relocations $50,000 Total Construction Funds: $2,394,613
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Table 2 - Contract Change Orders (CCO)
CCO No. CCO Description CCO Amount
1 STPUD Water Main, Water Service Relocations (Reimbursed to City) $110,000.00 2 Resetting Utility Box & Extending Driveway Paver Stones $5,436.00 3 Installation of Yard Drain and Drainage Pipe $3,175.00 4 Balancing Over and Under Bid of Contract Line-Item Amounts $109,950.50 Total CCO Amount: $228,561.50
A 10% construction contingency totaling $199,400 was approved with City Council approval of the $1,993,999.00 LaFleur Excavating contract to construct the Project improvements. Applying the 10% construction contingency to the overall CCO amount summed up as a part of Table 2, Contract Change Orders, leaves a $29,161.50 construction cost overrun.
CCO #4 - Balancing Worksheet is included with this staff report as Attachment-03. Attachment-03 lists all the Barton Ave & 2nd Street Drainage Project bid line-items, estimated quantities, and contract amounts. CCOs #1, #2, and #3 are listed near the bottom-left of the worksheet. The column on the right side of the worksheet, shaded in light blue shows the bid item amount differing from the estimated bid amount (over and under bid line-item amounts). The worksheet cell shaded in bright yellow is the total amount exceeding the approved 10% construction contingency ($29,161.50).
Table 3 – Construction Expenses
Expense Description Expense Amount
LaFleur Excavating – Contractor Bid Amount $1,993,999.00 10% Construction Contingency $199,400.00
Amount Exceeding Construction Contingency $29,161.50
Total Project Construction Expenses $2,222,560.50
$1,150,000
$89,341
$976,272
$179,000
C O N S T R U C T I O N F U N D I N G S O U R C E S /A M O U N T S CNRA Prop. 68 Grant City General Fund Match
Annual Road Rehab. Reimbursed (SW Gas & STPUD)
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The net contract over-run totaling $29,161.50 is easily absorbed by the utility reimbursements from STPUD and SW Gas. No additional funding is being requested for the CCOs City Council is considering for ratification.
An increase in City Council approved construction contingency, from 10% to 11.5% will authorize sufficient construction contingency budget to contain the $29,161.60 in expenses exceeding the 10% contingency. A revised 11.5% construction contingency provides $229,310 in authorized contingency, which will cover the overall CCO total listed with Table 2, Contract Change Orders ($228,561.50).
Environmental Considerations:
On June 15, 2021, a CEQA Notice of Exemption was filed by the City Planning Manager with the State Clearinghouse as a Class 4, 15304 (minor alteration to land) categorical exemption, State Clearinghouse Number 2021060316. The proposed Project improvements consist of minor alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature scenic trees.
An expired TRPA EIP permit for the Project was renewed by TRPA on March 14, 2023. The California Tahoe Conservancy approved a License Agreement on June 15, 2017 (C-93-17) for the use of three Conservancy parcels for the construction and maintenance of the stormwater treatment basin on Second Street.
Policy Implications:
The Project will assist with the updated City Council Priorities to improve road drainage conditions, to ensure pavement resurfacing investments are long-lasting, prepare for increased flooding risks due to climate change, and build public trust by following through with previous commitments with tangible results.
The Project will address major drainage issues identified in the Updated Drainage Master Plan presented to the City Council on April 20, 20211 and as shown in the attached Project Location Map and Photos. The proposed improvements will also assist the City in meeting the sediment and nutrient reductions mandated by the Lake Tahoe TMDL. Meeting sediment and nutrient reduction mandates will assist with receiving all housing allocations under TRPA Code section
50.5.2.E.2 (Distribution and Administration of Residential Allocations – TMDL Implementation).
1 Available on the City Website: https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/888076/04- Updated_Drainage_Master_Plan_Ranking_Criteria_and_Project_List.pdf 119
Bijou Park Creek Restoration
Tahoe Valley Greenbelt
Ruby Way
Overlook Court
Barton Neighborhood
Urban Stormwater Treatment
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community Lake Tahoe
00 0.25 .5 1
Miles
£¤50
¬«89
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Department ofPublic Works -Engineering Division
Jason Burke
City of SLT9/26/2019
£¤50
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Legend
Prop 68 Storm Water Projects
Document Path: J:\DATA-A-D\City Council\2019 Meetings\10-15-19\Prop 68 Projects.mxd City of South Lake Tahoe
Potential Proposition 68 Storm Water Projects
120
BARTON AVE & 2ND STREET DRAINAGE PROJECT
Public Works Contract No: 20-301-40054-01 Date: 11/15/2023 Contractor:
Payment Request No. Balancing CCO
Payment
Retention
Bid Item
No. Bid Item Description Unit of Measure
Estimated Bid
Item Quantity Bid Unit Price Bid Item Amount Quantity Amount 5% 1 Mobilization & Demobilization LS 1 $ 41,565.00 $ 41,565.00 1.00 $ 41,565.00 100% $ 2,078.25 $ - 2 Traffic Control & Plan LS 1 $ 5,000.00 $ 5,000.00 1.00 $ 5,000.00 100% $ 250.00 $ - 3 Construction Surveying and Staking LS 1 $ 16,170.00 $ 16,170.00 1.00 $ 16,170.00 100% $ 808.50 $ - 4 Temporary Staging & Construction Access LS 1 $ 15,000.00 $ 15,000.00 1.00 $ 15,000.00 100% $ 750.00 $ - 5 Temporary Barriers, Fencing, and Vegetation
Protection LS 1
$ 5,000.00 5,000.00 $ 1.00 5,000.00 $ 100% 250.00 $ - $ 6 Erosion Prevention, Sediment Controls, Dust
Controls, & BMPs LS 1
$ 10,000.00 10,000.00 $ 1.00 10,000.00 $ 100% 500.00 $ - $ 7 Pothole Subsurface Utility EA 15 $ 1,070.00 $ 16,050.00 20.00 $ 21,400.00 133% $ 1,070.00 $ 5,350.00 8 Clearing and Grubbing LS 1 $ 15,000.00 $ 15,000.00 1.00 $ 15,000.00 100% $ 750.00 $ - 9 Infiltration Basin w/Outlet Control Structure LS 1 $ 57,150.00 $ 57,150.00 1.00 $ 57,150.00 100% $ 2,857.50 $ - 10 Rock-Lined Channel Outlet (Silver Tip Ave) LS 1 $ 17,355.00 $ 17,355.00 1.00 $ 17,355.00 100% $ 867.75 $ - 11 Remove & Replace Concrete HC Ramp and
Rolled Curb & Gutter EA 1
$ 5,500.00 5,500.00 $ 1.00 5,500.00 $ 100% 275.00 $ - $ 12 AC Pavement Sawcutting/Grinding LF 4,142 $ 8,284.00 2.00 $ 4,142.00 8,284.00 $ 100% 414.20 $ - $ 13 AC Pavement Removal SF 18,601 $ 37,202.00 2.00 $ 18,601.00 37,202.00 $ 100% 1,860.10 $ - $ 14 Gas Service Adjustment EA 4 $ 5,000.00 $ 20,000.00 10.00 $ 50,000.00 250% $ 2,500.00 $ 30,000.00 15 2" Watermain Adjustment EA 3 $ 3,000.00 $ 9,000.00 2.00 $ 6,000.00 67% $ 300.00 $ (3,000.00) 16 4" Watermain Adjustment EA 7 $ 4,000.00 $ 28,000.00 2.00 $ 8,000.00 29% $ 400.00 $ (20,000.00) 17 8" Watermain Adjustment EA 2 $ 6,000.00 $ 12,000.00 - $ - 0% $ - $ (12,000.00) 18 1" Water Service Lateral Adjustment EA 7 $ 2,000.00 $ 14,000.00 5.00 $ 10,000.00 71% $ 500.00 $ (4,000.00) 19 Sewer Lateral Depth Adjustment EA 6 $ 2,500.00 $ 15,000.00 1.00 $ 2,500.00 17% $ 125.00 $ (12,500.00) 20 Reset Existing Water Valve Cans to Grade EA 4 $ 1,300.00 $ 5,200.00 9.00 $ 11,700.00 225% $ 585.00 $ 6,500.00 21 Reset Existing SSMH Rims to Grade EA 10 $ 1,300.00 $ 13,000.00 10.00 $ 13,000.00 100% $ 650.00 $ - 22 18" Dia. HDPE Storm Drain Pipe LF 1,127 $ 178,066.00 158.00 $ 1,233.00 194,814.00 $ 109% 9,740.70 $ 16,748.00 $ 23 18" Dia. Cl. V RCP LF 826 $ 195.00 $ 161,070.00 826.00 $ 161,070.00 100% $ 8,053.50 $ - 24 2-Sack Slurry Cement (Structural
Backfill/Shallow Pipe Installations) CY 58 $ 40,600.00 700.00 $ 101.00 70,700.00 $ 174% 3,535.00 $ 30,100.00 $ 25 Concrete Flared End Section w/Outlet Rock
Protection EA 3
$ 12,450.00 4,150.00 $ 3.00 12,450.00 $ 100% 622.50 $ - $ 26 48" Diameter Eccentric Flat-Top Storm Drain
Manhole w/24” Frame & Cover 6
$ 50,130.00 8,355.00 $ 6.00 50,130.00 $ 100% 2,506.50 $ - $ 27 48" Diameter Eccentric Storm Drain Manhole
w/24” Frame & Cover EA 4
$ 34,400.00 8,600.00 $ 4.00 34,400.00 $ 100% 1,720.00 $ - $ 28 84" x 60” Junction Structure EA 1 $ 18,700.00 $ 18,700.00 1.00 $ 18,700.00 100% $ 935.00 $ - 29 Type 1 Drainage Inlet w/Sediment Trap EA 1 $ 9,085.00 $ 9,085.00 1.00 $ 9,085.00 100% $ 454.25 $ - 30 Type 2 Drainage Inlet w/Closed Bottom EA 3 $ 9,075.00 $ 27,225.00 3.00 $ 27,225.00 100% $ 1,361.25 $ - 31 Type 3 Drainage Inlet w/Closed Bottom EA 1 $ 8,535.00 $ 8,535.00 1.00 $ 8,535.00 100% $ 426.75 $ - 32 Type 3 Drainage Inlet w/Sediment Trap EA 4 $ 9,085.00 $ 36,340.00 4.00 $ 36,340.00 100% $ 1,817.00 $ - 33 Rolled Concrete Curb & Gutter LF 3,263 $ 163,150.00 50.00 $ 3,330.00 166,500.00 $ 102% 8,325.00 $ 3,350.00 $ 34 Concrete Curb Transition (@ Curb End) LF 45 $ 132.00 $ 5,940.00 45.00 $ 5,940.00 100% $ 297.00 $ - 35 Concrete Valley/V-Gutter LF 183 $ 40.00 $ 7,320.00 288.00 $ 11,520.00 157% $ 576.00 $ 4,200.00 36 Roadside Shoulder Permeable Parking Area SF 1,000 $ 45,000.00 45.00 $ 1,000.00 45,000.00 $ 100% 2,250.00 $ - $ 37 Concrete Paver Band LF 140 $ 32.00 $ 4,480.00 140.00 $ 4,480.00 100% $ 224.00 $ - 38 2” AC/6” AB Driveway Transition SF 2,555 $ 40,880.00 16.00 $ 3,476.00 55,616.00 $ 136% 2,780.80 $ 14,736.00 $ 39 2” Min. AC/6” AB Tie-In Pavement SF 18,601 $ 148,808.00 8.00 $ 27,807.00 222,456.00 $ 149% 11,122.80 $ 73,648.00 $ 40 1” AC Pavement Milling & 2” HMA Overlaying SY 10,820 $ 454,440.00 42.00 $ 10,820.00 454,440.00 $ 100% 22,722.00 $ - $ 41 Revegetation Treatments SF 13,356 $ 20,034.00 1.50 $ 21,235.00 31,852.50 $ 159% 1,592.63 $ 11,818.50 $ 42 Remove & Replace Buck Pole Fencing &
Install Two 10-Foot-Wide Steel Access Gates LF 145 $ 24,070.00 166.00 $ 145.00 24,070.00 $ 100% 1,203.50 $ - $ 43 Rock Fracture and Removal (Contingency Item
as Directed or Authorized) CY 20 $ 40,000.00 2,000.00 $ - - $ 0% - $ (40,000.00) $ 44 Tree Removal - (14" to 18" Base Diameter) EA 8 $ 3,000.00 $ 24,000.00 8.00 $ 24,000.00 100% $ 1,200.00 $ - 45 Tree Removal - (19" to 24" Base Diameter) EA 1 $ 4,000.00 $ 4,000.00 1.00 $ 4,000.00 100% $ 200.00 $ - 46 Tree Removal - (25" to 35" Base Diameter) EA 3 $ 5,000.00 $ 15,000.00 3.00 $ 15,000.00 100% $ 750.00 $ - 47 2-Year Maintenance of Revegetation LS 1 $ 40,000.00 $ 40,000.00 1.00 $ 40,000.00 100% $ 2,000.00 $ - 48 Temporary Full Coverage Rotary Sprinkler
Irrigation at 2nd Street Basin LS 1
$ 8,000.00 8,000.00 $ 1.00 8,000.00 $ 100% 400.00 $ - $ 49 Remove 12” Storm Drain Pipe LF 53 $ 100.00 $ 5,300.00 103.00 $ 10,300.00 194% $ 515.00 $ 5,000.00 50 Project Sign LS 1 $ 1,500.00 $ 1,500.00 1.00 $ 1,500.00 100% $ 75.00 $ - $ 1,993,999.00 $ 2,103,949.50 $ 105,197.48 $ 109,950.50 CCO No. CCO Description Unit Quantity Unit Price Amount Quantity Amount 5% Retention Over/Under 1 8-inch Water Main Adjustment (Winnemucca
& SilverTip) LS 1.00 110,000.00 $ 110,000.00 $ 1.00 110,000.00 $ 100% 5,500.00 $ - $ 2 Paver Stone Driveway - 2272 Silver Tip Ave LS 1.00 5,436.00 $ 5,436.00 $ 1.00 5,436.00 $ 100% 271.80 $ - $ 3 Yard Drain Inlet - 1070 Winnemucca Ave LS 1.00 3,175.00 $ 3,175.00 $ 1.00 3,175.00 $ 100% 158.75 $ - $ CCO Totals: $ 118,611.00 CCO Total: $ 118,611.00 CCO Retent.: $ 5,930.55 $ - CCOs 1, 2, & 3 plus Contract Over & Under Amount: 2,112,610.00 $ Total Retent.: 111,128.03 $ Total Final Contract Amount: 2,222,560.50 $
Construction Contingency @ 5% $ 111,128.03 Total Amount Due To Date: $ 2,222,560.50 Total Amount Due w./out Const. Contingency: $ 2,111,432.48 Total Amount Paid To Date: $ 2,111,432.48 Total Retention: $ 111,128.03
Amount exceeding the contract award: 228,561.50 $ Sum of Over/Under & CCOs Retention Release 60 days Original contract award contingency at 10%: $ 199,400.00 Following Notice of Completion $ 29,161.50
Overall Amount
Over/Under Bid
Amount
Amount exceeding 10% contingency:
CHANGE ORDER WORK
LAFLEUR EXCAVATING, INC.
LaFleur Excavating, Inc. Total Work Completed to Date Percent Complete
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CITY OF SOUTH LAKE TAHOE
DEPARTMENT OF PUBLIC WORKS
AGREEMENT
DOCUMENT 00500 - AGREEMENT
City of South Lake Tahoe
DEPARTMENT OF PUBLIC WORKS
AGREEMENT
BARTON AVE & 2ND STREET DRAINAGE PROJECT
PUBLIC WORKS CONTRACT NO. 20-30140054-01
INFORMAL BID No. 23-30140054-BN1
THIS AGREEMENT is made and entered into this . 4- nt day of Ju.... lt:. , 20 2-:'. 3, by and between the City ofSouth Lake Tahoe, a political subdivision of the State of California, herein designated " City"' and 1-AFLevefUJ'Wt' N tTI INl, ' herein designated as Contractor."
WITNESSETH, that the City and the Contractor, in consideration of the mutual covenants hereafter set forth, agree as follows:
ARTICLE 1 - THE WORK
Contractor agrees to furnish all labor, tools, equipment, facilities, materials, transportation and services necessary to.perform and complete, in a good and workmanlike manner, the BARTON AVE & 2ND STREET DRAINAGE PROJECT as required pursuant to the Contract Documents.
ARTICLE 2 - COMMENCEMENT AND COMPLETION
The Work to be performed under this Agreement shall commence at the time as specified in the Notice to Proceed, and the Contractor shall diligently undertake the performance of the obligations as set forthin the Contract Documents to achieve Final Completion of the Work ( as defined at Section 9.9 Special Provisions) on or beforeSeptember 1, 2023 ( the "Contract Time").
No grading or excavation or other land disturba11ce willbe allowed between October 15th and May pt; allWork shall be performed afterthe issuance of the Notice to Proceed, and Final Completion achieved within the contract time as set forth in these Contract Documents. 00500
C-054-2023 122
The City and the Contractor recognize that time is ofthe essence of this Agreement and that the City will sufferfinancial loss ifthe Work is not completed within the time specified herein, plus any extensions thereof allowed in accordance with the Contract Documents. The City and Contractor also recognize the delays, expense, and difficulties involvedin proving the actual loss suffered by the City ifthe Work is not completed within the Contract Time. Accordingly, instead ofrequiring any such proof, and pursuant to the Contract Documents, the City and the Contractor agree that as liquidated damages ( but not as a penalty), the Contractor shall pay the City the sum of $1,000 foreach calendar day beyond August 18, 2023, and continuing until Bidder achieves Milestone # 1, Substantial Completion ( per Document 00100, Article 1.04.A.l), and $ 500 for each calendar day beyond September 1, 2023, that portion ofthe Contract Time within which the Bidder is required to achieve Milestone # 2, Final Completion ( per Document 00100, Article
1.04.A.3).
In accordance with the Contract Documents, including, without limitation Document 00400. 4.2 Bid Proposal"), the daily amount that Contractor may charge to the City forall delay costs, direct and indirect ( and inclusive of all expenses and damages, including, without limitation, jobsite and home office overhead costs and extended general conditions) applicable to the first sixty (60) calendar days of Compensable Delay, ifany, is [INSERT FROM BID PROPOSAL], the amount set forthby Contractor in Document 00400. 4.2 (" Bid Proposal"). This sum shall represent the exclusive and sole amount ( i.e., payment in fullforany and all direct and indirect delay costs) that Contractor, on behalf ofitself and subcontractors and suppliers, of every tier, shall receive forany and all Compensable Delay( s) during the firstsixty (60) calendar days of actual, Compensable Delay at the Project. Delay costs that may arise from Compensable Delay, ifany, beyond the firstsixty (60) calendar days of a Compensable Delay, if allowable, shall thereafter be governed by, and subject to, the applicable provisions of Sections 8 and 9 of the Standard Specifications, as modified by the Special Provisions, and the Contract Documents.
ARTICLE 3 - CONTRACT PRICE
The City agrees to pay, and the Contractor agrees to accept, in current fundsforthe performance of the Work pursuant to the Contract Documents, the Contract Sum for the completion of the Work in accordance with the Contract Documents as follows:
Item
N.
IfeJ:DDe«ription 1fJW of Estim::ited. UmtPri.ce ItemTotal Me:1,mre Q11: mtify
THECONTRACT 1 TO BE DETEllilNEDIN
ACCORDANCE TuTIHTHEBIDPROPOPSAL AND
C01'.1TRACTDOCUMEN1S.
TOTAL CONTRACT SUM: $ ________ _
For the Total Contract Sum of S e n , , ""''-' ----------------=--------- 1...- r,-,,.__, H'' dollars and cents. -----------------------
00500
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:9
Agenda Item: California Tahoe Conservancy Planning Grant Application for Dennis Machida Memorial Trail Phase 1c
Executive Summary: Submittal of this grant application to the California Tahoe Conservancy could provide an additional $800,000 to complete feasibility assessment, public meetings, alternative development, environmental review, and initiation of detailed engineering drawings for a preferred alternative alignment of the Dennis Machida Memorial Greenway Phase 1c. This grant has no formal match requirement and will allow the City to build on the previously completed survey and feasibility assessments.
Requested Action / Suggested Motions: Pass a Resolution authorizing the Director of Public Works to submit a grant application for $800,000 to the California Tahoe Conservancy for the Dennis Machida Memorial Trail Phase 1c.
Responsible Staff Member: Jason Burke, Complete Streets Program Manager, and Stephen Anderjack, Associate Civil Engineer
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report-CTC Grant Application.docx
02-Resolution - CTC Grant Application.docx
155
Council Agenda Report December 12, 2023 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: Authorization to Apply for California Tahoe Conservancy Planning Grant Program for the Dennis Machida Memorial Trail Phase 1c
Location: Pioneer Trail (Herbert Avenue to Ski Run Boulevard) Responsible Staff Member: Jason Burke, Complete Streets Program Manager (530) 542- 6038 and Stephen Anderjack, Associate Civil Engineer (530) 542-6033 Background: The Dennis T. Machida Memorial Greenway Trail will connect the Tahoe Sierra Neighborhood to Van Sickle Bi-State Park via a series of paved bicycle and pedestrian trails, completing the core of the non-motorized transportation network in the South Shore. Previously known as the South Tahoe Greenway Shared Use Trail, the original project approval and preliminary designs occurred in 2011 and were amended in 2016.
Phase 1a of the Greenway extends between Herbert Avenue and Glenwood Way in the heart of the Bijou neighborhood in South Lake Tahoe. This project phase was built in 2016 and is open to public use.
Phases 1b and 2 of the Greenway extend the trail south across Bijou Creek Meadow, crossing Al Tahoe Boulevard to Lake Tahoe Community College (LTCC). From LTCC, the trail crosses Trout Creek and Martin Avenue to provide a safe route to Sierra Boulevard in the Tahoe Sierra neighborhood. This project connects to the City of South Lake Tahoe’s Sierra Boulevard “complete streets” project and extends the bike trail network to the U.S. Highway 50 revitalization project. Phases 1b and 2 were completed in 2021 and are open to public use.
Phase 1c of the Greenway will extend from Herbert Ave. to Ski Run Blvd. To complete Phase 1c of the Greenway, the city has been invited to apply for grant funds from the Tahoe California Conservancy (CTC) to complete feasibility studies, alternatives analysis, and updates to the environmental document to move forward with the design of the project.
Issue and Discussion: On January 4, 2022, the City Council approved the appropriation of $200,000 of SLFRF funds for planning studies to assess the original conceptual trail alignment and environmental documents for phase 1c as originally designed by the CTC in 2011.
The originally designed alignment for Phase 1c begins at the easterly terminus of phase 1a at Herbert Avenue, crosses into CTC owned land, then veers up to, and along the Pioneer Trail right of way to the limits of Ski Run Boulevard. This proposed alignment along the north side of Pioneer Trail comprises several design issues including limited site distance, insufficient right of way width, topography elevation changes, and property acquisition concerns that have prevented this section of the Greenway from moving forward. The Conservancy has stepped forward with this grant opportunity to provide an additional $800,000 to advance planning and design utilizing the survey and feasibility analysis previously completed by the City. This requested action will authorize staff to submit a grant application for an additional $800,000 in grant funds to advance the design of this phase of the Greenway. 156
Council Agenda Report December 12, 2023 Page 2 of 2
Financial Implications: On June 7th, 2022, the City Council authorized an appropriation of $56,037 in Resolution 2022-065 in addition to the previously allocated $200,000 in American Rescue Plan Act funds for engineering design services for phase 1c of the Greenway. If approved, this grant from the Conservancy would provide an additional $800,000 to complete a feasibility assessment, public meetings, alternative development, environmental review, and initiation of detailed engineering drawings for a preferred alternative alignment. This grant has no formal match requirement and will allow the City to build on the previously completed survey and feasibility assessments. Upon receipt of the grant, staff plans to issue an RFP using the remaining $197,792.05 City funds, in addition to the $800,000 in Conservancy grant funds to advance the project to become “shovel ready”. No additional funds are being requested at this time.
Environmental Considerations: Submittal of this grant application is statutorily exempt from review under CEQA Guidelines section 15262 (planning and feasibility studies). “A project involving only feasibility or planning studies for possible future actions which the agency, board, or commission has not approved, adopted, or funded does not require the preparation of an EIR or negative declaration but does require consideration of environmental factors. This section does not apply to the adoption of a plan that will have a legally binding effect on later activities”.
Policy Implications: Authorizing this grant application will potentially fund the design and environmental work for the Greenway that will advance the City Council's Strategic Priorities and Goals, specifically:
Action Item 1.4 (Transportation): Prioritize the implementation of trail and complete street projects including continued progress of the Greenway to Van Sickle Bi-State Park. Action Item 2.3 (Connectivity): Enhance the connectivity of the community for those on foot and bike, while promoting a car-free culture.
Action Item 5.3 (Infrastructure and Maintenance): Actively seek funding to develop sustainable infrastructure projects, based on the prioritized capital improvement project list.
The project will also provide greenhouse gas reduction benefits, providing progress on Action #WB-1 of the 2020 Climate Action Plan: Improve bicycle and pedestrian networks. 157
Resolution 2023-XXX December 12, 2023 Page 1 of 2
Resolution 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
December 12, 2023
Authorization to Apply for California Tahoe Conservancy Planning Grant Program for the Dennis Machida Memorial Trail Phase 1c
BACKGROUND
A. The City of South Lake Tahoe has designated the Dennis Machida Memorial Trail Phase 1c a viable and desired project.
B. The California Tahoe Conservancy is open to accepting a grant application to fund planning and design to advance phase 1C of the Greenway so that the project can eventually be built.
C. Upon award of the grant the Public Works Department will return to the City Council to authorize execution of a grant agreement and request budget appropriations upon notification of a grant award.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Authorizes the Public Works Director, or designee, to submit a grant application to the California Tahoe Conservancy for an amount up to $800,000 for planning and design for the Dennis Machida Memorial Trail Phase 1c project.
Adopted by the City of South Lake Tahoe City Council on December 12, 2023 by the following vote:
Yes:
No:
Absent:
Abstain:
________________________ Date:_________
Mayor
Attest:
158
Resolution 2023-XXX December 12, 2023 Page 2 of 2
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
159
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:10
Agenda Item: California Office of Traffic Safety Enforcement Grant FY 23-24 Executive Summary: The Police Department has applied for an OTS STEP grant which has been "tentatively approved" by OTS in an amount up to $41,000.00 to fund extra traffic enforcement, training, and traffic related equipment. City Council authorization is required by OTS and the City to accept, budget, and receive reimbursement of grant funds. OTS anticipates final approval and a grant agreement in place by October 1, 2023.
Requested Action / Suggested Motions:
Pass a Resolution ratifying the application, budget, and reimbursement of grant award by California Office of Traffic Safety (OTS) for a Selective Traffic Enforcement Program (STEP) in amount up to $41,000.00, and upon final approval from OTS, authorizing the Mayor to execute a grant agreement.
Responsible Staff Member: Lt Scott Crivelli
Reviewed and Approved By: David Stevenson, Chief of Police Susan Blankenship, Coity Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - OTS Grant.docx
02-Resolution - Office of Traffic Safety Grant.docx
03 - Grant Agreement
04 - Grant Application
160
Council Agenda Report `December 12, 2023 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: California Office of Traffic Safety Enforcement Grant FY 23-24 Location: Citywide
Responsible Staff Member: Lieutenant Scott Crivelli, (530) 542-6130 Background: The California Office of Traffic Safety (OTS) provides grants to local jurisdictions for various traffic safety enforcement programs. On January 28, 2023, the Police Department submitted an application to OTS for a Selective Traffic Enforcement Program (STEP) grant. The grant amount requested was $45,531.92. The Police Department received notification that our application has been “tentatively approved” for up to $41,000.00.
OTS and City financial policy require approval by City Council for the application, acceptance, budget, and reimbursement for this grant.
Issue and Discussion: Traffic Collisions including those involving impaired drivers, vehicle versus bicycle and/or pedestrians, and collisions involving motorcycles continue to be a safety issue in the City.
The OTS STEP grant will be used to conduct traffic enforcement operations, public information campaigns, and officer training related to impaired drivers. The goal of the program is to reduce the number of injury and fatal traffic collisions in the City.
Financial Implications: There will be no additional impact to the general fund. This is a reimbursement grant. The tentative approval for the program is not to exceed $41,000.00.
Expenditures for the program will be reimbursed quarterly. If approved, effective October 1, 2023; budget in account number 229 02110 should be amended as follows:
Revenue: #33130 $41,000.00
Expenditures: Final expenditure accounts to be determined after receipt of the grant agreement from OTS and after adjustments to personnel and equipment costs based on the amount approved versus the original amount requested not to exceed $41,000.00 combined.
Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).
Policy Implications: The police boating safety program supports the City of South Lake Tahoe’s Strategic Plan “5.1 – Public Safety”.
161
Resolution 2023-XXX December 12, 2023 Page 1 of 1
Resolution 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
December 12, 2023
Ratify the application, budget, and reimbursement of grant award by California Office of Traffic Safety (OTS) for a Selective Traffic Enforcement Program (STEP) in amount up to $41,000.00, and upon final approval from OTS, authorize the Mayor to execute a grant agreement.
BACKGROUND
The California Office of Traffic Safety (OTS) provides grants to law enforcement agencies to support traffic safety programs.
The Police Department applied for and was tentatively awarded an OTS STEP grant in an amount not to exceed $41,000.00.
The Police Department intends to utilize these grant funds to increase traffic safety through special enforcement operations, training, and public outreach.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
Approves and accepts the OTS STEP grant award up to $41,000.00.
Authorizes the Mayor to execute a grant agreement including any extensions or amendments thereof and any subsequent contract with the State in relation thereto once the agreement is received from the State.
Authorizes increasing the 2023/2024 City budget account # 229 02110 as follows:
Revenue: #33221 $41,000.00
Expenditures: #41040 (Personnel), #44050 (Training travel), and #46110 (Equipment) to be determined after receipt of grant agreement by the State not to exceed $41,000.00 combined.
Adopted by the City of South Lake Tahoe City Council on December 12, 2023 by the following vote:
Yes:
No:
Absent:
Abstain:
________________________ Date: _________
Mayor
Attest: ________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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Application :: Page 1 of 12
Application Information
Application No: 24-004741
Application Type: STEP Agency (City or
County):
South Lake
Tahoe
Department
(Police
Dept, DA
Office, etc):
South Lake
Tahoe
Police
Department
Authorized
Representative: Doug Sentell DUNS/SAMNumber: FG8YLL3CQ3J1
DUNS/SAM
Expiration
Date:
DUNS/SAM
Registered Address:
1901 Lisa
Maloff Way DUNS/SAM City: South LakeTahoe
DUNS/SAM
ZIP+4: 96150-7009
Application Summary
Grants Made Easy Application Titles and Descriptions are pre-populated. For General Grants, provide the Application Title and Application Description.
Application Title:
Selective Traffic Enforcement Program (STEP)
Application Description:
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect. 182
Application :: Page 2 of 12
Problem Statement:
The City of South Lake Tahoe is very unique compared to most California cities. South Lake Tahoe shares a border with Nevada that has five large casinos within the first mile that offer 24 hour alcohol and entertainment. The city has a population of 23,000 with approximately 2.2 million visitors to the Lake Tahoe Basin annually. Motorists in South Lake Tahoe also deal with extreme weather conditions in the winter months and heavily congested vehicle traffic in the summer months. The city also has a large portion of the population and its visitors walking, biking, or riding motorcycles during all months of the year.
The South Lake Tahoe Police department does not have a dedicated traffic enforcement unit.
We use grant funding to conduct dedicated traffic enforcement operations. We have one traffic motor officer who works traffic enforcement on a part time basis around their normal patrol officer beat functions and calls for service; They cannot currently dedicate their full focus to traffic enforcement. Additionally, the season weather prohibits the motor officer from using the motor during the fall/winter months.
In 2020, the city endured the unprecedented issues caused by Covid-19. These issues included complete travel bans, the premature shut down of our ski industry, lodging bans, and a segment of people too afraid to travel. As a city built on the tourist/travel economy, the number of visitors to South Lake Tahoe dramatically reduced, oftentimes causing empty roadways. As we transitioned out of Covid restrictions, we saw a dramatic rise in visitors return to the area. These visitors brought back the congestion and conflict between vehicle, pedestrian, and bicycle traffic.Our fiscal year 21/22 traffic statistics showed an increase in several areas that reflected the increase in visitor population.
Traffic Data Summary:
City Applicants: Complete the table below using the most current local data and update the 20XX years in the table (do not use the OTS Rankings or SWITRS).
Crash
Type 2020 2021 2022
Crashes Victims Crashes Victims Crashes Victims
Fatal 1 1 1 1 1 1
Injury 48 57 43 58 66 94
Fatal Injury Killed Injured Fatal Injury Killed Injured Fatal Injury Killed Injured Alcohol -
Involved 0 12 0 15 1 9 1 14 0 13 0 17
Hit & Run 0 5 0 5 0 4 0 4 0 3 0 4
Nighttime
(2100-0259
hours)
0 5 0 5 0 2 0 2 0 11 0 15
Top 3 Primary Crash Factors Fatal Injury Killed Injured #1 - Unsafe Speed 0 17 0 25
#2 - Right of Way Violations 0 0 0 0
#3 - Improper Turning Movements 0 11 0 15
183
Application :: Page 3 of 12
1. 2.
3. Proposed Solution
Equity:
This agency does not discriminate against any group and prides itself on treating people equally under the law.
People in lower income brackets are often without their own transportation. In South Lake Tahoe, this causes many in this group to walk, bike, or use rented electric scooters. The agency would use OTS grant funds to address the traffic conflicts that often occur between pedestrians, bicyclists, and scooter users. While the city has many accessible walking/bike paths, those same paths intersect roadways. We would use the funds to help reduce injuries and fatalities in this affected group. We would conduct traffic enforcement details along the major routes the affected groups frequently use to get to work.
Strategies:
The agency will conduct directed enforcement activities to combat the DUI and traffic issues. These will include DUI saturation patrols targeting impaired driving, bicycle and pedestrian safety enforcement details targeting both vehicle drivers as well as bicycle and pedestrian operators The agency will also conduct enforcement on .
The agency will conduct warrant sweeps to hold offenders accountable for their actions. The agency will address motorcycle safety with enforcement details targeting unsafe driving around and by motorcycles. The agency will also put officers through DUI-related trainings to provide them with the skills to better document the DUI arrests, as well as assist in the successful prosecution of DUI cases.
Agency Qualifications:
Are staffing levels adequate to complete the requested activities? Yes. Our agency has recovered from a deficit of staffing due to an unprecedented amount of officers injured in the line of duty. We are only down two positions which are in process of being filled.
Briefly describe qualifications of both program and fiscal staff, or plans to train staff. The city staff is well versed on OTS grant procedures and reporting. This includes a specialty staff member at the city who works on the city's various grants.
Please indicate your agency’s contract procurement method and estimated length of time to receive an approved contract, if applicable. We have used OTS's procurement methods through its website and email.
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Application :: Page 4 of 12
Goals
Description
Reduce the number of persons killed in traffic crashes.
Reduce the number of persons injured in traffic crashes.
Reduce the number of pedestrians killed in traffic crashes.
Reduce the number of pedestrians injured in traffic crashes.
Reduce the number of bicyclists killed in traffic crashes.
Reduce the number of bicyclists injured in traffic crashes.
Reduce the number of persons killed in alcohol-involved crashes.
Reduce the number of persons injured in alcohol-involved crashes.
Reduce the number of persons killed in drug-involved crashes.
Reduce the number of persons injured in drug-involved crashes.
Reduce the number of persons killed in alcohol/drug combo-involved crashes.
Reduce the number of persons injured in alcohol/drug combo-involved crashes.
Reduce the number of motorcyclists killed in traffic crashes.
Reduce the number of motorcyclists injured in traffic crashes.
Reduce hit & run fatal crashes.
Reduce hit & run injury crashes.
Reduce nighttime (2100 - 0259 hours) fatal crashes.
Reduce nighttime (2100 - 0259 hours) injury crashes.
Custom Description
Objectives
Included Target
Number Description
Yes 1
Issue a press release announcing the kick-off of the grant by November 15. The kick-off press releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 14 days prior to the issuance date of the release.
Yes 1
Participate and report data (as required) in the following campaigns; Quarter 1: National Walk to School Day, National Teen Driver Safety Week, NHTSA Winter Mobilization; Quarter 3: National Distracted Driving Awareness Month, National Motorcycle Safety Month, National Bicycle Safety Month, National Click it or Ticket Mobilization; Quarter 4: NHTSA Summer Mobilization, National Child Passenger Safety Week, and California's Pedestrian Safety Month. 185
Application :: Page 5 of 12
Yes 12
Develop (by December 31) and/or maintain a “DUI BOLO” program to notify patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. Updated DUI BOLOs should be distributed to patrol and traffic officers monthly.
Yes 3
Send law enforcement personnel to the NHTSA Standardized Field Sobriety Testing (SFST) (minimum 16 hours) POST-certified training.
Yes 2
Send law enforcement personnel to the NHTSA Advanced Roadside Impaired Driving Enforcement (ARIDE) 16 hour POST-certified training.
Yes 1 Send law enforcement personnel to the Drug Recognition Expert (DRE) training.
Yes 1 Send law enforcement personnel to the DRE Recertification training.
No 0 Send law enforcement personnel to SFST Instructor training.
No 0 Send law enforcement personnel to DRE Instructor training.
No 0
Conduct DUI/DL Checkpoints. A minimum of 1 checkpoint should be conducted during the NHTSA Winter Mobilization and 1 during the Summer Mobilization. To enhance the overall deterrent effect and promote high visibility, it is recommended the grantee issue an advance press release and conduct social media activity for each checkpoint. For combination DUI/DL checkpoints, departments should issue press releases that mention DL's will be checked at the DUI/DL checkpoint. Signs for DUI/DL checkpoints should read "DUI/Driver's License Checkpoint Ahead." OTS does not fund or support independent DL checkpoints. Only on an exception basis and with OTS pre-approval will OTS fund checkpoints that begin prior to 1800 hours. When possible, DUI/DL Checkpoint screeners should be DRE- or ARIDE-trained.
Yes 8 Conduct DUI Saturation Patrol operation(s).
No 0
Conduct Court Sting operation(s) to cite individuals driving to and from the court after having their driver's license suspended or revoked.
Yes 2
Conduct Warrant Service operation(s) targeting multiple DUI offenders who fail to appear in court.
No 0
Conduct Stakeout operation(s) that employ police officers to observe the "worst of the worst" repeat DUI offender probationers with suspended or revoked driver licenses.
Yes 5
Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
Yes 2
Conduct highly publicized Distracted Driving enforcement operation(s) targeting drivers using hand held cell phones and texting.
Yes 2
Conduct highly publicized Motorcycle Safety enforcement operation(s) in areas or during events with a high number of motorcycle incidents or crashes resulting from unsafe speed, DUI, following too closely, unsafe lane changes, improper turning, and other primary crash factor violations by motorcyclists and other drivers.
No 0 Conduct Nighttime (1800-0559) Click It or Ticket enforcement operation(s).
Yes 4
Conduct highly publicized pedestrian and/or bicycle enforcement operation(s) in areas or during events with a high number of pedestrian and/or bicycle crashes resulting from violations made by pedestrians, bicyclists, and drivers.
Yes 1
Conduct Traffic Safety educational presentation(s) with an effort to reach community members.
Note: Presentation(s) may include topics such as distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts and child passenger safety.
No 0 Conduct Know Your Limit campaigns with an effort to reach members of the community.
No 0 Participate in highly visible collaborative DUI Enforcement operations.
No 0 Participate in highly visible collaborative Traffic Enforcement operations.
Yes 1 Send law enforcement personnel to DUI Checkpoint Planning and Management training.
No 0
Conduct specialized enforcement operations focusing specifically on street racing and sideshow activities.
Yes 2
Conduct Illegal Street Racing and Modified Vehicle training classes for law enforcement personnel.
No 0
Identify straight time personnel and report on activities completed. Include any vacancies or staff changes that have occurred.
186
Application :: Page 6 of 12
Included Target Number Custom Description
Method of Procedure
Phase 1 - Program Preparation:
The department will develop operational plans to implement the “best practice” strategies outlined in the objectives section.
All training needed to implement the program should be conducted in the first quarter.
All grant related purchases needed to implement the program should be made in the first quarter.
In order to develop/maintain the “DUI BOLOs,” research will be conducted to identify the “worst of the worst” repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. The DUI BOLO may include the driver’s name, last known address, DOB, description, current license status, and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly.
Implementation of the STEP grant activities will be accomplished by deploying personnel at high crash locations.
Media Requirements Issue a press release approved by the OTS PIO announcing the kick-off of the grant by November 15, but no sooner than October 1. The kick-off release must be approved by the OTS PIO and only distributed after the grant is fully signed and executed. If you are unable to meet the November 15 deadline to issue a kick-off press release, communicate reasons to your OTS coordinator and OTS PIO.
Phase 1 - Program Preparation Addendum:
Phase 2 - Program Operations:
187
Application :: Page 7 of 12
The department will work to create media opportunities throughout the grant period to call attention to the innovative program strategies and outcomes.
Media Requirements
The following requirements are for all grant-related activities:
Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS coordinator. Optimum lead time would be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the Coordinator.
Pre-approval is not required when using any OTS-supplied template for media advisories, press releases, social media graphics, videos or posts, or any other OTS-supplied educational material.
However, copy the OTS PIO at [email protected] and your OTS coordinator when any material is distributed to the media and public, such as a press release, educational material, or link to social media post. The OTS-supplied kick-off press release templates and any kickoff press releases are an exception to this policy and require prior approval before distribution to the media and public.
If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy to your OTS Coordinator. Optimum lead time would be 7 days prior to the scheduled release date, but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
Press releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are exempt from the OTS PIO approval process. The OTS PIO and your Coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are exempt from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your Coordinator with embargoed date and time or with “INTERNAL ONLY: DO NOT RELEASE” message in subject line of email.
Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval. Please send to the OTS PIO at [email protected] for approval and copy your grant coordinator at least 3 business days prior to the scheduled release date.
Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.
Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS Coordinator for approval prior to the production or duplication.
Use the following standard language in all press, media, and printed materials, space permitting:
Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.
Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult your OTS Coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo.
Email the OTS PIO at [email protected] and copy your OTS Coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so OTS has sufficient notice to arrange for attendance and/or participation in the event. If unable to attend, email the OTS PIO and coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of event within 7 days following significant grant-related event or program. Media and program highlights are to be reflected in QPRs.
Any press releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received PIO approval in a prior grant year needs to be resubmitted for approval in the current grant year.
Contact the OTS PIO or your OTS Coordinator for consultation when changes from any of the above requirements might be warranted.
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Application :: Page 8 of 12
Phase 2 - Program Operations Addendum:
Phase 3 - Data Collection:
1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)
2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
Collect and report quarterly, appropriate data that supports the progress of goals and objectives.
Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.
Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
Collect, analyze and report statistical data relating to the grant goals and objectives.
Phase 3 - Data Collection Addendum:
Budget
Personnel Costs
Hourly Rates - When requesting hours for personnel, enter them as straight time or overtime (for Enforcement Overtime, please use section below) and include the amount of hours that they will spend on grant operations.
Example: Personnel getting paid 100% by the grant working a full year at $41.00 per hour would be entered as Straight time, 2080 Units, $41.00 Unit cost or Rate, and 100% Percent Paid by Grant. This gives a total of $85,280.00 for the year.
Benefits – If requesting benefits for personnel, enter all benefits as a separate line item for each. Start the Item Name with the word 'Benefits', enter the corresponding straight time or overtime total amount in the Unit Cost or Rate, and enter the Benefits Rate to have the system calculate Benefit Costs. (Unit Cost) X (Benefits Rate) = Benefit Costs. To properly relate benefits to the correct personnel line item use the Display Order field, for example use 100.0 for Display Order for the personnel line item and 100.1 for Display Order for the associated Benefits. 189
Application :: Page 9 of 12
Display
Order
Cost
Category Item Name PositionType
Benefit
Rate
Unit Cost
or Rate Units
Percent
Paid by
Grant
Calculated
Cost to
Grant
100.0
A.
Personnel
Costs
DUI Saturation Patrols Overtime $1,586.00 8 100.00% $12,688.00 100.1
A.
Personnel
Costs
DUI Warrant Sweep Overtime $1,586.00 2 100.00% $3,172.00 100.2
A.
Personnel
Costs
PCF Traffic
Enforcement Overtime $1,586.00 5 100.00% $7,930.00
100.3
A.
Personnel
Costs
Cellphone/Texting
Enforcement Overtime $1,586.00 2 100.00% $3,172.00
100.4
A.
Personnel
Costs
Motorcycle/Scooter
Safety Overtime $1,586.00 2 100.00% $3,172.00
100.5
A.
Personnel
Costs
Pedestrian/Bicycle
Safety Enforcment Overtime $1,586.00 4 100.00% $6,344.00 Display
Order
Cost
Category
Enforcement
Activity
Item
Name
Unit Cost or
Rate Units Calculated Cost toGrant
Personnel Costs: $36,478.00
Travel Expenses
Display Order Cost Category Item Name Unit Cost or Rate Units Calculated Cost to Grant 200.0 B. Travel Expenses In State Travel $638.48 2 $1,276.96 200.1 B. Travel Expenses In State Travel $638.48 2 $1,276.96 Travel Expenses: $2,553.92
Contractual Services
Do not include brand names or names of specific organizations.
Display Order Cost Category Item Name Unit Cost or Rate Units Calculated Cost to Grant 300.0 C. Contractual Services None $0.00 1 $0.00
Contractual Services: $0.00
Equipment (must have Unit Cost of at least $5,000)
Do not include brand names or names of specific organizations.
Please include an equipment quote in the Upload Documents Tab 190
Application :: Page 10 of 12
Display
Order
Cost
Category Item Name Unit Cost orRate Units Calculated Cost toGrant 400.0 D.
Equipment
Traffic Data Collection Device and
Software $6,500.00 1 $6,500.00
Equipment: $6,500.00
Other Direct Costs (must have Unit Cost of less than $5,000, including tax and shipping) Do not include brand names or names of specific organizations.
NOTE : When creating a new "Other Direct Cost" budget item, the Standard Language Item drop down list may not be available. When this is the case, complete only the required fields and save the budget item. Once saved, select the Edit button (pencil icon); the Standard Language Item drop down list will be available for selection. Alternatively, if not requesting a Standard Language Item, please utilize the Custom Narrative field to enter an appropriate narrative.
Display Order Cost Category Item Name Unit Cost or Rate Units Calculated Cost to Grant 500.0 E. Other Direct Costs None $0.00 1 $0.00
Other Direct Costs: $0.00
Indirect Costs
Item Name should indicate the % and the Cost Category for Indirect Costs e.g. 15% of Salaries and Benefits. Use the Percent Paid by Grant for the Indirect Rate and the Unit Cost or Rate field to indicate the total amount for which Indirect Costs will be claimed. The system will calculate the Cost to Grant.
Indirect Cost Rate must be supported by a federally approved indirect cost rate letter and uploaded to the application.
Display Order Cost Category Item Name Indirect Rate Amount Subject to Indirect Calculated Cost to Grant 600.0 F. Indirect Costs None $0.00
Indirect Costs: $0.00
Total Requested Funding: $45,531.92
Narrative Review
Review and update Narrative for Budget Items
191
Application :: Page 11 of 12
Cost
Category Item Narrative CustomNarrative
A.
Personnel
Costs
DUI Saturation
Patrols
A.
Personnel
Costs
DUI Warrant
Sweep
A.
Personnel
Costs
PCF Traffic
Enforcement
A.
Personnel
Costs
Cellphone/Texting
Enforcement
A.
Personnel
Costs
Motorcycle/Scooter
Safety
A.
Personnel
Costs
Pedestrian/Bicycle
Safety Enforcment
B. Travel
Expenses In State Travel
Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. Anticipated travel may include (enter other known conferences or required events). All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.
B. Travel
Expenses In State Travel
Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. Anticipated travel may include (enter other known conferences or required events). All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.
C.
Contractual
Services
None None
D.
Equipment
Traffic Data
Collection Device
and Software
Device for
addressing
citizen
concerns of
speed and
traffic in
targeted
areas. The
device will
record and
report traffic
speeds and
volume.
E. Other
Direct
Costs
None None
F. Indirect
Costs None None
192
Application :: Page 12 of 12
Upload Documents (Optional)
Please try to include all information in the application itself, but if necessary, upload additional documents here
Document Name Update Date/Time
Evaluation, Support, and Submittal
Evaluation, Support, and Submittal
Method of Evaluation:
Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.
Administrative Support:
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.
Total Requested Funding:
$45,531.92
193
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:11
Agenda Item: City Salary Table Amendments - California Minimum Wage Increase Executive Summary: The proposed resolution aims to implement a minimum wage of $16.00 per hour for all City positions, as mandated by California law. This will come into effect from January 1, 2024. To comply with this requirement, the hourly rates for several temporary, seasonal, and part-time position classifications would be revised as follows: a) incorporating the mandated $16.00 minimum wage, and b) maintaining the appropriate separation between different steps in the approved salary ranges and classifications within the same series. In October of this year, the State announced that the minimum wage would increase to $16.00, starting January 1, 2024. It is mandatory to update the City Salary Table to reflect the latest minimum wage increase, and CalPERS also requires posting the current City Salary Table.
Requested Action / Suggested Motions: Pass Resolution raising the minimum wage for City employees to $16.00, effective January 1, 2024, as required by state law.
Responsible Staff Member: Ember Buckman, Human Resources Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - City Salary Table Amendments.docx
02-Resolution - City Salary Table Amendments.docx
03-City of South Lake Tahoe Salary Table December 6 2023 (EXH A to Reso).pdf 194
Council Agenda Report December 12, 2023 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: City Salary Table Amendments - Minimum Wage Increase Location: Citywide
Responsible Staff Member: Ember Buckman, Human Resources Manager (530) 542-6050 Background: The State of California will increase the minimum wage from $15.50 to $16.00 an hour effective January 1, 2024.
The City of South Lake Tahoe has seasonal or part time temporary positions that will fall below the $16.00 minimum wage. The City Salary Table must be updated to reflect the minimum wage increase.
Issue and Discussion: The City hires seasonal and temporary employees every year for various roles such as Cashier, Park Attendant I, Recreation Leader I, Pool Lifeguard, and Park Steward. These employees assist with the operational needs of recreational and parks facilities throughout the year.
Additionally, departments may hire interns who are new to a particular field to provide practical work experience and general assistance on an as-needed basis. The number of interns hired each year varies from 1 to 5 depending on departmental needs.
Effective January 1, 2024, the following seasonal or part-time temporary classifications will need to be adjusted to ensure compliance with California minimum wage: Cashier I, Park Attendant I, Pool Lifeguard, Recreation Leader I, Park Steward, and Intern.
To prevent compaction and overlap between classification series, Cashier II, Head Cashier, Park Attendant II, and Recreation Leader II will receive the same pay increase. 195
Council Agenda Report December 12, 2023 Page 2 of 3
Additionally, CalPERS requires annual posting of a City Salary Table, therefore we are bringing forward the full salary table for approval.
To ensure consistency and to remain competitive in the labor market, salary adjustments will be made to the seasonal positions that mirror regular full-time positions.
Financial Implications: The total cost of the proposed minimum wage adjustments across the entire City organization is estimated at approximately $20,000.
Environmental Considerations: The Minimum Wage Increase is not a project requiring review under the California Environmental Quality Act (CEQA) under CEQA Guidelines 15378(b)(2) (personnel-related actions).
CASHIER1 Current New CASHIER2 Current New HEADCASHR Current New 9000/9927/01 15.5000 16.0000 9000/9951/01 16.4702 17.0000 9000/9971/01 17.4788 18.0416 9000/9927/02 16.2750 16.8000 9000/9951/02 17.2937 17.8500 9000/9971/02 18.3528 18.9436 9000/9927/03 17.0888 17.6400 9000/9951/03 18.1583 18.7400 9000/9971/03 19.2704 19.8900 9000/9927/04 17.9432 18.5220 9000/9951/04 19.0663 19.6770 9000/9971/04 20.2339 20.8845 9000/9927/05 18.8403 19.4481 9000/9951/05 20.0196 20.6600 9000/9971/05 21.2456 21.9287 9000/9927/06 19.7824 20.4205 9000/9951/06 21.0206 22.0716 9000/9971/06 22.3079 23.0251 PARKATTEN1 Current New PARKATTEN2 Current New PKSTEWARD Current New 9000/9970/01 15.5000 16.0000 9000/9932/01 16.0000 16.5152 9000/9966/01 15.5000 16.0000 9000/9932/02 16.8000 17.3409 9000/9966/02 16.2750 16.8000 9000/9932/03 17.6400 18.2080 9000/9966/03 17.0888 17.6400 9000/9932/04 18.5220 19.1184 9000/9966/04 17.9432 18.5220 9000/9932/05 19.4481 20.0740 9000/9966/05 18.8403 19.4481 9000/9932/06 20.4205 21.0780 9000/9966/06 19.7824 20.4205 RECLEADER1 Current New RECLD2 Current New LIFEGUARD Current New 9000/9908/01 15.5000 16.0000 9000/9984/01 16.4702 17.0000 9000/9976/01 15.5000 16.0000 9000/9908/02 16.2750 16.8000 9000/9984/02 17.2937 17.8500 9000/9976/02 16.2750 16.8000 9000/9908/03 17.0888 17.6400 9000/9984/03 18.1583 18.7400 9000/9976/03 17.0888 17.6400 9000/9908/04 17.9432 18.5220 9000/9984/04 19.0663 19.6770 9000/9976/04 17.9432 18.5220 9000/9908/05 18.8403 19.4481 9000/9984/05 20.0196 20.6600 9000/9976/05 18.8403 19.4481 9000/9908/06 19.7824 20.4205 9000/9984/06 21.0206 22.0716 9000/9976/06 19.7824 20.4205 INTERN Current New
9900/9943/01 15.5000 16.0000
9900/9943/02 16.2750 16.8000
9900/9943/03 19.2441 19.8642
9900/9943/04 20.2062 20.8574
9900/9943/05 21.2166 21.9000
196
Council Agenda Report December 12, 2023 Page 3 of 3
Policy Implications: The Minimum Wage Increase is consistent with California minimum wage requirements.
197
Resolution 2023-XXX December 12, 2023 Page 1 of 1
Resolution 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
December 12, 2023
Amending the City Salary Table to incorporate a mandated minimum wage increase
BACKGROUND
A. Effective January 1, 2024 the California minimum wage will increase to $16.00 per hour.
B. Changes must be made to the City Salary Table to reflect the changes to the minimum wage.
C. In order to avoid compaction and overlap, classifications within the same series will be adjusted by the same amount.
D. To ensure consistency and to remain competitive in the labor market, salary adjustments will be made to the seasonal positions that mirror regular full-time positions.
E. CalPERS requires posting of a city-wide salary table.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Amends the City Salary Table attached as Exhibit “A” to reflect the changes to minimum wage and satisfy the CalPERS requirement.
2. Authorizes any additional action be taken to implement the above.
Adopted by the City of South Lake Tahoe City Council on December 12, 2023 by the following vote:
Yes:
No:
Absent:
Abstain:
___________________________ Date:___________
, Mayor
Attest:
____________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:12
Agenda Item: Recognized Obligation Payment Schedule (ROPS) FY 2024-2025 Executive Summary: In an effort to balance its budget, the State of California adopted Assembly Bill (AB)x1 26 on June 28, 2011, amended by AB 1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on February 1, 2012. The Successor Agency Board is required by state law to annually pass a resolution approving the ROPS.
Requested Action / Suggested Motions: Acting as the South Tahoe Redevelopment Successor Agency Board, Pass a Resolution approving the Recognized Obligation Payment Schedule (ROPS) pursuant to Health and Safety Code section 34177 for the fiscal period commencing July 1, 2024, and ending June 30, 2025.
Responsible Staff Member: Olga Tikhomirova, Finance Director Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report-ROPS 2024-2025.DOCX
02-Resolution STRSA ROPS 2024-2025.DOCX
03-ROPS 2024-2025 (Exh. A to Resolution).pdf
04-Sponsoring Entity Loan Repayment ROPS 2024-2025 (Exh. B to Resolution).pdf 231
Council Agenda Report December 12, 2023 Page | 1
City of South Lake Tahoe
Report to South Tahoe
Redevelopment Successor Agency
Meeting Date: December 12, 2023
Title: Recognized Obligation Payment Schedule (ROPS), FY 2024-2025 Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 Background: In an effort to balance its budget, the State of California adopted Assembly Bill (AB)x1 26 on June 28, 2011, amended by AB 1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on February 1, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.
Certain assets of the former Redevelopment Agency (“Former RDA”) were to be distributed to a Housing Successor and all remaining Redevelopment Agency assets and liabilities were to be distributed to a Successor Agency. The City elected to become the Successor Agency. The Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency and are recorded in the Redevelopment Obligation Retirement Private-Purpose Trust Fund (Fund 725) Issue and Discussion: Pursuant to Health and Safety Code section 34177(o)(1), Successor Agencies are required to prepare Recognized Obligation Payment Schedules (“ROPS”) prior to each twelve-month fiscal period. The ROPS is then ratified by the Oversight Board and subsequently submitted to the County Auditor and State Department of Finance (“DOF”). ROPS 2024-2025 for the period of July 1, 2024 to June 30, 2025 is due February 1, 2024.
Financial Implications: The preparation and approval of this ROPS, including the Administrative Budget, will allow the Successor Agency to continue to pay enforceable obligations of the former redevelopment agency and is required by the Health and Safety Code section 34177.
On July 25, 2014, the local Oversight Board of the Successor Agency to the South Tahoe Redevelopment agency adopted Resolution No. 2014-4 which approved repayment of a loan incurred in Fiscal Year 2010- 11 by the Former RDA to pay remittance to the Supplemental Educational Revenue Augmentation Fund (SERAF) in the total amount of $426,210. Prior to dissolution, the Former RDA was required to maintain a Low and Moderate Income Housing Fund (the “Housing Fund”) and deposit certain amounts of tax increment received by the Former RDA into the Housing Fund. The Former RDA was permitted to incur a loan payable to the Housing Fund (the “SERAF Loan”) to pay the FY 2010-11 SERAF Payment. As a result of the RDA dissolution, the City designated the South Tahoe Housing Authority to act as the Housing Successor for the Former RDA, and the Housing Authority assumed the housing assets and functions of the Former RDA. The SERAF Loan constitutes an enforceable obligation of the Former RDA, provided that the repaid funds are used in a manner consistent with the affordable housing requirements of the Redevelopment Law. The DOF informed the local Oversight Board that DOF was not initiating a review of Resolution No. 2014-4.
232
Council Agenda Report December 12, 2023 Page | 2
According to the Health and Safety Code (HSC) Section 34176(e)(6)(B), the aggregate repayment amount authorized each fiscal year for the SERAF Loan shall not exceed one-half of the increase between the amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in that fiscal year and the amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in the 2012-13 base year (“RPTTF residual”). .
Based on the calculations using the Sponsoring Entity Loan Repayment Calculator provided by the Department of Finance (attached 04), for Fiscal year 2024-25, it is estimated that the ROPS 2023-24 RPTTF residual balance is available to begin repayment of the SERAF Loan. Therefore, the repayment of SERAF Loan is included on the ROPS 2024-25.
Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).
Policy Implications: The preparation and approval of this ROPS is consistent with Health and Safety Code section 34177(o)(1).
233
STRSA Resolution 2023-XXX December 12, 2023 Page 1 of 4 STRSA Resolution 2023-XXX
Adopted by the Board of Directors of the
South Tahoe Redevelopment Successor Agency
December 12, 2023
Approving a Recognized Obligation Payment Schedule (ROPS 2024-25), Including an Administrative Budget, Pursuant to Health and Safety Code Section 34177 for the Fiscal Period Commencing July 1, 2024 and Ending June 30, 2025, and Taking Related Actions
BACKGROUND
A. The South Tahoe Redevelopment Agency (the “Former RDA”) was a duly constituted redevelopment agency pursuant to provisions of the Community Redevelopment Law (the “Redevelopment Law”) set forth in Section 33000 et seq. of the Health and Safety Code (“HSC”) of the State of California.
B. Pursuant to HSC 33334.2, the Former RDA was required to maintain a Low and Moderate Income Housing Fund (the “Housing Fund”) and deposit certain amounts of tax increment received by the Former RDA into the Housing Fund.
C. Pursuant to HSC Section 33690.5(a), the Former RDA was required to make a remittance (the “FY 2010-11 SERAF Payment”) to the El Dorado County Auditor-Controller for deposit into the County Supplemental Educational Revenue Augmentation Fund (‘SERAF”) for fiscal year 2010-11.
D. Pursuant to HSC Section 33690.5(c), the Former RDA was permitted to, and did, incur a loan repayable to the Housing Fund (the “SERAF Loan”) to pay the FY 2010-11 SERAF Payment.
E. Pursuant to AB X1 26 (enacted in June 2011), and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.4th 231(2011), the Former RDA was dissolved as of February 1, 2012, the Successor Agency to the South Tahoe Redevelopment Agency (“Successor Agency”) was established, and a local oversight board of the Successor Agency was established.
F. As of the date of this Resolution, a portion of the SERAF Loan remains outstanding and unpaid in the amount of $426,210.
G. Pursuant to HSC Section 34176(b), the City Council of the City of South Lake Tahoe designated the South Lake Tahoe Housing Authority as the successor entity with respect to the housing assets and functions of the Former RDA (the “Housing Successor”) pursuant to its Resolution No. 2012-65, adopted on October 16, 2012.
H. Pursuant to HSC Section 34176(d), all funds transferred to the Housing Successor and all funds generated from housing assets must be maintained in a Low and Moderate Income 234
STRSA Resolution 2023-XXX December 12, 2023 Page 2 of 4 Housing Asset Fund (the “Housing Asset Fund”), established and held by the Housing Successor.
I. Pursuant to HSC Section 34171(d)(1)(G), the SERAF Loan constitutes an enforceable obligation; provided that the repayment schedule must be approved by the oversight board of the Successor Agency, and repayments must be transferred to the Housing Asset Fund and used in a manner consistent with the affordable housing requirements of the Redevelopment Law.
J. Pursuant to HSC Section 34176(e)(6)(B), the aggregate repayment amount authorized each fiscal year for the SERAF Loan shall not exceed one-half of the increase between the amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in that fiscal year and the amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in the 2012-13 base year.
K. By its Resolution No. 2014-5, adopted on July 15, 2014, the Board of Directors of the Successor Agency requested the local oversight board of the Successor Agency (i) to authorize the inclusion of a line item on future ROPS, for the repayment of the SERAF Loan, up to the maximum repayment amount calculated in accordance with HSC Section 34176(e)(6)(B), until the SERAF Loan has been paid in full; and (ii) to recognize that the repayment of the SERAF Loan as described in the Successor Agency resolution shall constitute the repayment schedule of the SERAF Loan for the purposes of HSC Section 34171(d)(1)(G) and approve such repayment schedule.
L. On July 25, 2014, the local oversight board of the Successor Agency adopted its Resolution No. 2014-4, which approved inclusion of the SERAF Loan on future ROPS and the repayment schedule as described in the above-described Successor Agency Resolution.
M. On July 30, 2014, the State Department of Finance (“DOF”) informed the oversight board in writing that the DOF was not initiating a review of the oversight board’s Resolution No. 2014-4.
N. Pursuant to Health and Safety Code Section 34179(j), as of July 1, 2018, the El Dorado Countywide Oversight Board (the “Countywide Oversight Board”) has jurisdiction over the Successor Agency.
O. Pursuant to HSC Section 34177(o)(1), the Successor Agency must prepare a Recognized Obligation Payment Schedule (“ROPS”) listing the anticipated payments for enforceable obligations to be made by the Successor Agency during the fiscal period from July 1, 2024 through June 30, 2025 (“ROPS 24-25”) and submit ROPS 24-25 to the Countywide Oversight Board for approval.
P. Pursuant to HSC Section 34177(l)(2)(B), at the same time that the Successor Agency submits ROPS 24-25 to the Countywide Oversight Board for approval, the Successor Agency must submit a copy of ROPS 24-25 to the DOF, the County administrative officer, and the County Auditor-Controller.
Q. Pursuant to HSC Section 34177(l)(2)(C) and Section 34177(o)(1), the Successor Agency must: (i) submit the Countywide Oversight Board-approved ROPS 24-25 to the DOF, the 235
STRSA Resolution 2023-XXX December 12, 2023 Page 3 of 4 Office of the State Controller, and the County Auditor-Controller no later than February 1, 2024, and (ii) post a copy of the Countywide Oversight Board-approved ROPS 24-25 on the Successor Agency’s website.
R. A partial repayment of SERAF Loan is included on ROPS 2024-25.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE
SOUTH TAHOE REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
1. The above recitals are true and correct and are a substantive part of this Resolution.
2. The Board of Directors hereby approves ROPS 24-25, including the Administrative Budget, substantially in the form attached as Exhibit “A” to this Resolution and incorporated herein by reference. The Executive Director of the Successor Agency, in consultation with the Successor Agency’s legal counsel, may modify ROPS 24-25 as the Executive Director or the Successor Agency’s legal counsel deems necessary or advisable.
3. Staff is hereby authorized and directed to submit a copy of ROPS 24-25 to the Countywide Oversight Board for approval and, at the same time, transmit a copy of ROPS 24-25 to the DOF, the County Auditor-Controller and the County administrative officer as designated by the County.
4. Staff is hereby authorized and directed to submit a copy of the Countywide Oversight Board-approved ROPS 24-25 to the DOF, the Office of the State Controller, and the County Auditor-Controller. If the Countywide Oversight Board has not approved ROPS 24-25 by February 1, 2024, Staff is hereby authorized and directed to transmit ROPS 24-25 to the DOF, the Office of the State Controller, and the County Auditor-Controller by February 1, 2024, with a written notification regarding the status of the Countywide Oversight Board’s review. Written notice and information regarding the action of the Countywide Oversight Board shall be provided to the DOF by electronic means and in a manner of DOF’s choosing.
5. Staff is hereby authorized and directed to post a copy of the Countywide Oversight Boardapproved ROPS 24-25 on the Successor Agency’s Internet website (being a page on the Internet website of the City of South Lake Tahoe).
6. The officers and the other staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including but not limited to requesting additional review by the DOF and an opportunity to meet and confer on any disputed items, and making adjustments to ROPS 24-25 pursuant to the DOF’s instructions, and any such actions previously taken are hereby ratified and confirmed. 236
STRSA Resolution 2023-XXX December 12, 2023 Page 4 of 4 Adopted by the Board of Directors of the Successor Agency of the South Tahoe Redevelopment Agency at a duly noticed meeting held on December 12, 2023, by the following vote:
Yes:
No:
Absent:
Abstain:
___________________________ Date:___________
, Agency Chair
Attest:
______________________________
Susan Blankenship, Agency Secretary
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council
237
Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Successor Agency: South Lake Tahoe
County: El Dorado
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
24-25A Total
(July -
December)
24-25B Total
(January -
June)
ROPS 24-25
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 4,092,054 $ 1,354,172 $ 5,446,226 F RPTTF 4,069,554 1,331,672 5,401,226
G Administrative RPTTF 22,500 22,500 45,000
H Current Period Enforceable Obligations (A+E) $ 4,092,054 $ 1,354,172 $ 5,446,226 Certification of Oversight Board Chairman:
Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
238
South Lake Tahoe
Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
24-25
Total
ROPS 24-25A (Jul - Dec)
24-25A
Total
ROPS 24-25B (Jan - Jun)
24-25B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
$77,006,745 $5,446,226 $- $- $- $4,069,554 $22,500 $4,092,054 $- $- $- $1,331,672 $22,500 $1,354,172 6 Contracted
Financial
Services
Fees 10/01/
1999
10/01/2037 Bank of
New York
Mellon,
Willdan,
Fraser &
Associates
Trustee
Services,
arbitrage
rebate
calculations,
continuing
disclosure
reports, pass
through
calculations
Park
Avenue
Area
#1
15,300 N $15,300 - - - 7,650 - $7,650 - - - 7,650 - $7,650 7 Contracted
Legal Services
Admin
Costs
10/01/
2007
10/01/2037 Richards,
Watson and
Gershon
Redevelopment
Dissolution
Legal Costs
Park
Avenue
Area
#1
5,000 N $5,000 - - - - 2,500 $2,500 - - - - 2,500 $2,500 21 Administrative
Costs
Admin
Costs
01/01/
2014
10/01/2037 City of
South Lake
Tahoe
Costs to
Administer
Successor
Agency
(internal debt
administration,
accounting
financial
reporting, legal
and banking
fees
40,000 N $40,000 - - - - 20,000 $20,000 - - - - 20,000 $20,000 25 Supplemental
Educational
Revenue
Augmentation
Fund loan
SERAF/
ERAF
03/01/
2011
10/01/2037 City of
South Lake
Tahoe LowModerate
Income
Housing
Fund
Supplemental
Educational
Revenue
Augmentation
Fund Loan
426,210 N $285,019 - - - - - $- - - - 285,019 - $285,019 26 City General
Fund loan to
the
Redevelopment
Agency for
Completion of
Park Avenue
Project
City/
County
Loan
(Prior 06/
28/11),
Cash
exchange
03/14/
2004
10/01/2037 City of
South Lake
Tahoe
General
Fund
Park Avenue
Project
Completion
costs loan
Park
Avenue
Area
#1
5,276,219 N $- - - - - - $- - - - - - $-
27 2014
Redevelopment
Project Area
Bonds
Issued
After 12/
12/08/
2014
10/01/2034 Bondholders
paid by
Trustee
Refunding of
1999, 2003,
and 2004
Park
Avenue
Area
30,066,709 N $1,746,519 - - - 1,286,360 - $1,286,360 - - - 460,159 - $460,159 239
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
24-25
Total
ROPS 24-25A (Jul - Dec)
24-25A
Total
ROPS 24-25B (Jan - Jun)
24-25B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
No. 1 Series A
Notes
31/10 (Bank of
New York
Mellon)
Refunding
Revenue
Bonds to fund
non-housing
projects
#1
28 2015
Redevelopment
Project Area
No. 1 Series A
Notes
Bonds
Issued
After 12/
31/10
09/16/
2015
10/01/2035 Bondholders
paid by
Trustee
(Bank of
New York
Mellon)
Refunding of
2005
Refunding
Revenue
Bonds to fund
non-housing
projects
Park
Avenue
Area
19,785,210 N $2,418,194 - - - 2,111,097 - $2,111,097 - - - 307,097 - $307,097 29 2017 Loan
Agreements
(securing
Authority's
2017
Refunding
Revenue Bond)
Bonds
Issued
After 12/
31/10
09/01/
2017
10/01/2037 Bondholders
paid by
Trustee
(Bank of
New York
Mellon)
Refunding of
2007 RDA
Notes sercuring
bonds to fund
non-housing
projects
21,392,097 N $936,194 - - - 664,447 - $664,447 - - - 271,747 - $271,747 240
South Lake Tahoe
Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A B C D E F G H
ROPS 21-22 Cash Balances
(07/01/21 - 06/30/22)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/21)
RPTTF amount should exclude "A" period distribution
amount.
5,111,759 Only balances in Reserve Fund are reported
here
2 Revenue/Income (Actual 06/30/22)
RPTTF amount should tie to the ROPS 21-22 total
distribution from the County Auditor-Controller
411,832 4,191,254 Other Funds are revenues transferred in on an as-needed basis to cover the RPTTF
shortfall. Only transfer needed for cash at 6/
30/22 was made. Additional transfer to cover
total Other Funds expenses was made after
6/30/22 (for City's fiscal year ending 9/30/22)
3 Expenditures for ROPS 21-22 Enforceable Obligations
(Actual 06/30/22)
923,238 4,191,254 Other Funds expenditures exceed Actual 6/ 30/22 Revenue due to different City's fiscal
year accounting (Oct. to Sept) compared to
ROPS year (Jun. to Jul.)
4 Retention of Available Cash Balance (Actual 06/30/22) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5 ROPS 21-22 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 21-22 PPA
form submitted to the CAC
No entry required
241
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A B C D E F G H
ROPS 21-22 Cash Balances
(07/01/21 - 06/30/22)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
6 Ending Actual Available Cash Balance (06/30/22)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$5,111,759 $- $- $(511,406) $-
242
South Lake Tahoe
Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025
Item # Notes/Comments
6 7
21 25 Using one-half of the ROPS 23-24B Residual Balance to start re-paying SERAF loan 26 27
28 29
243
County Name Agency Name
ROPS II
July thru December
2012
ROPS III
January thru June
2013
Total For
Base Year
0 0 0
ROPS 23-24 A
July thru December
2023
ROPS 23-24 B
January thru June
2024
Total For
Comparison
Year
0 570,038 570,038
A 570,038
B 0
A-B 570,038
÷2
285,019
El_Dorado South Lake Tahoe
Maximum Repayment for
Fiscal Year 2024-25
Sponsoring Entity Loan Repayment Calculator
Base Year:
Residual Balance
Comparison Year:
Residual Balance
ROPS Review Period: ROPS 24-25
Total Residual Balance for Comparison Year
Total Residual Balance for Base Year
Difference of Residual Balance
244
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: December 12,
2023
Agenda Item #:13
Agenda Item: South Tahoe Refuse Base Year Rate Increase of 11.05 Percent Executive Summary: The City maintains a solid waste franchise agreement with South Tahoe Refuse (STR) for collection and disposal services. The City Council approved a new franchise agreement with STR on August 22, 2023. The Agreement continues to use the 2012 Rate Setting Policy and Procedures Manual, which is also used by the other two partners in the South Lake Tahoe Basin Waste Management Authority (JPA): El Dorado County and Douglas County. The Base Year increase is based on a detailed evaluation of STR operating costs, Consumer Price Index, landfill disposal, and other costs. The JPA's rate-setting consultant's analysis identified a Base Year rate increase of 11.05 percent for the City of South Lake Tahoe, which equates to an increase of $4.11 per month for residential customers and $4.70 per cubic yard for commercial customers.
Requested Action / Suggested Motions: (1) Conduct a Majority Protest Public Hearing, and (2) If no majority protest is received, Pass a Motion approving South Tahoe Refuse Base Year Rate Increase of
11.05 percent ($4.11 per month for residential customers and $4.70 per cubic yard for commercial customers), effective January 1, 2024.
Responsible Staff Member: Anush Nejad Public Works Director, and Sara Letton, Sustainability Coordinator
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - South Tahoe Refuse 2024 Rate Adjustment.docx 02 - 2012 Rate-Setting Manual.pdf
03 - Prop 218 Notice 10.23.23 FINAL.pdf
04 - Crowe Report - STR 2024 Rate Review.pdf
05 - Clean Tahoe Budget 2023-4.pdf
06 - STR Rate Presentation.pptx
07- Redacted Protest Letter.pdf
245
Council Agenda Report December 12, 2023 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: December 12, 2023
Title: South Tahoe Refuse Base Year Rate Increase of 11.05 Percent Location: Citywide
Responsible Staff Member: Anush Nejad, Director of Public Works (530) 542- 6031 and Sara Letton, Sustainability Coordinator (530) 542-6175
Background: The City maintains a solid waste franchise agreement with South Tahoe Refuse (STR) for solid waste collection and disposal. The City Council authorized a new franchise agreement with STR August 22, 2023.
The Agreement continues to use the 2012 Rate Setting Policy and Procedures Manual (Manual) (Attachment 02). The Manual establishes rate change policies, provides application forms, specifies reporting formats, identifies required supporting documentation, and describes the procedures for requesting, reviewing, and adopting rate changes. The Manual is utilized by the three jurisdictional partners in the South Lake Tahoe Basin Waste Management Authority (JPA).
The partner agencies include the City of South Lake Tahoe, El Dorado County, and Douglas County. On October 23, 2023, the JPA considered the proposed rate increase and recommended approval to the parter agencies.
Proposition 218 Notice: The city notified property owners and customers at least 45 days before the Public Hearing by mailing written notices of the proposed residential and commercial increase for the solid waste services on October 27, 2023. As further described below (See Public Notification Attachment 03), those property owners and customers may submit a written protest of the proposed rate increase to the City Clerk any time before the close of the public hearing on December 12, 2023. If less than a majority of the property owners and customers file written protests to the proposed rate increase, the City Council may approve the proposed change to the solid waste rates.
Issue and Discussion: The Manual describes the process for rate adjustment for both the base year and interim years on a 3-year cycle. The last base year was 2021. The current rate adjustment (2024) is also for a base year. Base year analysis involves a more detailed analysis of STR costs of operations.
In June of 2023, STR submitted its Application to the JPA for the base rate year 2024. The JPA approved a contract with Crowe, LLC to review STRs base year rate application and to recommend a proposed rate adjustment.
On October 20, 2023, Crowe LLP (Crowe) completed an analysis of South Tahoe Refuse Company’s Inc.’s (STR) 2024 Base Year Rate Application. The analysis was conducted in 246
Council Agenda Report December 12, 2023 Page 2 of 3
accordance with the JPA’s Manual. Crowe’s analysis identified a base year increase of 11.05% for the City of South Lake Tahoe. The analysis and the recommendation are included (Attachment 04-STR 2024 Rate Review Report).
The proposed 2024 rate increases for residential and commercial customers are summarized below:
Service Type Current Rate (Per
Customer, Per Month
Proposed Rate (Per
Customer Per Month)
Proposed Rate
Increase (Per
Customer Per Month)
Unlimited Residential
Service *
$37.15 $41.22 $4.11
Commercial Rate per
Cubic Yard
$42.50 $47.20 $4.70
* Excluding City surcharges for street sweeping ($0.25) and nuisance abatement ($0.25). For the City of South Lake Tahoe, the City has determined that it is in the best interests of all parties for Clean Tahoe to become a subcontractor to STR for litter abatement, debris, and illegal dumping cleanup services. The Clean Tahoe Budget is included (Attachment 05).
The recently approved rate adjustments for the City of South Lake Tahoe are shown below:
2016 – No rate change – interim year
2017 – 1.62 percent rate increase – interim year.
2018 – 8.81 percent rate increase – base year
2019 – 3.11 percent rate increase – interim year.
2020 – 2.93 percent rate increase – interim year.
2021 – 9.04 percent rate increase – base year
2022 – 3.77 percent rate increase – interim year.
2023 – 4.96 percent rate increase – interim year.
On October 23, the JPA Board approved the report and recommended that each jurisdiction consider and approve the rate adjustment.
Mandatory Commercial Organic Recycling Act and Short-Lived Climate Pollutants Bill:
The 2023 Franchise Agreement includes requirements for the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826) and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383).
These bills have directed all local agencies to promote diversion and maximize the use of feasible waste reduction, reuse, recycling, and composting options to reduce the amount of refuse that must be disposed of and to avoid the production of short-lived climate pollutants. SB 1383 establishes regulatory requirements for jurisdictions, generators, haulers, solid waste facilities, and other entities to support the achievement of State-wide Organic Waste Disposal reduction targets. It requires the City to implement collection programs, meet processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. The City has delegated some of its responsibilities to STR, acting as its designee.
In the new Franchise Agreement, STR has requested a 20-year term to amortize the capital expenses STR will incur to implement the 3-Cart residential collection system required to 247
Council Agenda Report December 12, 2023 Page 3 of 3
implement SB1383. The City entered into a new franchise agreement with such a term based on STR’s prior satisfactory service and to ensure the successful implementation of SB 1383 and with the inclusion of other contractual provisions that advance the City’s economic and environmental goals.
The new Franchise Agreement stipulates that on or before September 15, 2024, STR shall provide residential customers with new carts to implement the 3-cart collection program. STR may request an extension from the City based on good cause, which the City may grant or deny within its reasonable discretion.
Crowe’s report includes potential rate adjustments in 2025 and 2026 for compliance with SB 1383, including the roll-out of the 3-cart system. The JPA reviewed the proposed rate adjustments for 2025 and 2026 to cover the costs of SB 1383 compliance but did not act on the future proposed rate increases and deferred this item to 2024. It is anticipated that the costs of the 3-cart system will be included in requested rate increases for 2025 and 2026.
Financial Implications: An 11.05% increase in solid waste service rates within the City of South Lake Tahoe will increase the cost of STR’s unlimited service for residential customers by $4.11 per month. For commercial customers, the increase will be $4.70 per cubic yard.
Environmental Considerations: This action is not a “project” requiring review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).
Policy Implications: The application process and analysis utilized to determine the interim year rate adjustment are consistent with the Solid Waste Rate Setting Policies and Procedures Manual. The updated franchise agreement supports the local implementation of the Mandatory Commercial Organic Recycling Act and Short-Lived Climate Pollutants Bill, which are consistent with the City’s Climate Action Plan WA-2 ‘Promote reductions in organic waste and landfill diversion’.
248
South Lake Tahoe Basin
Waste Management Authority
Solid Waste Rate Setting
Policies and Procedures Manual
March 30, 2012
249
Table of Contents
Section
1. Rate Setting Goals and Objectives ................................................ 1-1 A. Introduction .................................. ............................................................. 1-1 B. Rate Setting Goals ...................................................................................... 1-2 C. Rate Setting Policies .............................................. ..................................... 1-3 D. Rate Application Process ............................................................................ 1-6 E. Allowable and Non-Allowable Costs .......................................................... 1-8
2. Base Year Rate Setting Process ....................................................... 2-1 A. Step 1 - Prepare and Submit Rate Application ........................................... 2-1 B. Step 2 - Verify Completeness of Rate Application ...................................... 2-8 C. Step 3 - Review Rate Application and Prepare Response ............................ 2-8 D. Step 4 - Prepare Draft Report and Final Report.. ..................................... 2-10 E. Step 5 - Present Final Report to JPA Board ............................................. 2-12 F. Step 6 - Notify Customers of Rate Hearing ............................................. 2-12 G. Step 7 - Receive Approval from City Council and County Boards ........... 2-12 H. Step 8 - Implement New Rates ................................................................ 2-13
3. Interim Year Rate Setting Process ................................................... 3-1 A. Step 1 - Prepare and Submit Rate Application ............................. .............. 3-1 B. Step 2 - Prepare Draft Report and Final Report ............. ............................ 3-2 C. Step 3 - Receive Approval from City Council and County Boards ............. 3-6 D. Step 4 -Implement New Rates ................................................................... 3-6 Appendix
A. Blank Forms and Worksheets ........... .. .................... .. ....................... A-1 250
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ii Solid Waste Rate Setting Policies and Procedures Manual 251
8 .
.
Section l
Rate Setting Goals and O~jectives
252
l . Rate Setting Goals
and Objectives
This section of the manual provides an overview of the rate setting process. The section includes five subsections:
A. Introduction
B. Rate Setting Goals
C. Rate Setting Policies
D. Rate Application Process
E. Allowable and Non-Allowable Costs.
A. Introduction
This manual is a step-by-step guide for the South Lake Tahoe Basin Waste Management Authority QPA), and its franchise hauler, to prepare and approve changes in solid waste collection rates. The manual establishes rate change policies, provides application forms, specifies reporting formats, identifies required supporting documentation, and describes the procedure for requesting, reviewing, and adopting rate changes. The following three (3) jurisdictions make up the JPA:
• City of South Lake Tahoe, California
• El Dorado County, California
• Douglas County, Nevada.
In 1996, the JPA developed a "Solid Waste Collection, Recycling, and Transfer Station Operations Rate Setting Policies and Procedures Manual' ( 1996 Manual) as a tool to use to regulate solid waste rates. This version (version 2.0) represents the first update to the 1996 Manual since that time.
The franchise hauler for the three (3) jurisdictions is South Tahoe Refuse Company, Inc. (STR). Each jurisdiction has a franchise agreement with STR for collection and disposal of refuse as follows:
• Collection Franchise Agreement between El Dorado County and South Tahoe Refase Company, Inc., dated February 13, 1995 • Solid Waste Services Agreement between City of South Lake Tahoe and South Tahoe Refase Company, Inc., dated August 21, 2001 • Solid Waste Services Agreement between Douglas County and South Tahoe Refuse Company, Inc., dated October 2006. ' ' The franchise agreement has been amended three times. On March 15, 2007, the franchise was amended to reflect the correct franchise fee (First Amendment). On October 15, 2009, the franchise was amended to update indices used in the cost-of-living adjustment (COLA, Second Amendment). The most recent amendment was signed on December 21, 2009, again revising the COLA, to account for negative rate changes (Third Amendment). 253
Table 1- 1
South Tahoe Refuse Company, Inc.
Business Divisions
-- Divisions Service Areas
I. South Tahoe • City of South
Refuse Company Lake Tahoe
• Unincorporated
El Dorado County
• Douglas County,
Nevada
2. American River • Unincorporated
Disposal El Dorado County
3. Sierra Disposal • Unincorporated
Service El Dorado County
Covered
by Manual
Yes
No
No
Each franchise agreement currently has slightly
different terms and conditions for how rates are
set. The intent of this manual update is to replace
these varied rate setting terms and conditions with
common rate setting terms and conditions that the
JPA, and the three (3) jurisdictions, can agree to,
and apply. The intent of this manual update is
for each jurisdiction to incorporate this updated
version 2.0 of the manual, by reference, into their
respective franchise agreements with STR.
This manual is meant as a tool for setting rates
for the three (3) jurisdictions, combined. The JPA
will be responsible for reviewing rate applications
submitted by the franchised hauler. The JPA will
recommend percentage rate changes to apply to the
three (3) jurisdictions.' Each jurisdiction, however,
will have the ultimate authority to approve the
JPA's rate change recommendation (i.e., at the city
council or board of supervisor level).
3 2 For base year reviews, there would be one recommended rate change for the City of South Lake Tahoe and Douglas County, and one recommended rate change for El Dorado County. For interim year reviews, there would be one recommended rate change for the City of South Lake Tahoe and El Dorado County, and one recommended rate change for Douglas County.
3 Interim year rate setting for the City of South Lake Tahoe and Douglas County is procedural and does not require a rate hearing. Interim year rate setting for El Dorado County does require a rate hearing.
The franchised hauler, South Tahoe Refuse
Company, Inc. , has three (3) divisions as shown
in Table 1-1, left. T he South Tahoe Refuse
Company represents the division covered by
this manual.
The JPA intends for this manual to be revised
over time, as needed, to reflect changes in objectives
or modifications to the franchise agreements. 4
B. Rate Setting Goals
The primary goal of the rate setting process and
methodology is to determine solid waste collection
rates which are fair to customers and which provide
a fair return to the franchise hauler. A total of six
(6) rate setting process goals were considered in
developing this rate setting methodology:
1. The JPA and franchised hauler should start
with a strong and committed partnership.
The JPA and franchised hauler should view
this franchise as a business partnership where
both parties commit to use the formal rate
setting methodology, and plan continuous
communication on rate setting
throughout the franchise term.
2. Rates requested by the franchise hauler must
be justifiable and supportable. A formal
request to change rates, submitted by the
franchise hauler, should provide the basis for
all rate changes, include only allowable and
necessary costs, and provide accountability
for expenditures. In determining rates, the
JP A shall consider both the need for fairness
to the ratepayer and the need to compensate
the franchise hauler fairly and consistently
with the methodology.
3. The estimated costs of service, and resulting
solid waste rates, should be reasonable.
The JPA acknowledges that maintenance
• Should the JPA dissolve at any time in the future, the three jurisdictions have indicated a preference to continue to use this manual on a jurisdictional basis. Jurisdiction-specific rate setting would require some modifications to the methodology in that STR would have to allocate its revenues and costs to each jurisdiction.
1-2 Solid Waste Rate Setting Policies and Procedures Manual 254
of quality service is related to providing
adequate compensation, and financial
incentives, for continued good performance.
Revenues generated should be adequate
to fully meet reasonable costs-of-service.
The resulting monthly fees for solid waste
collection service should be comparable
to those charged in other jurisdictions for
providing similar services.
4. The process should be kept as simple as
possible, while ensuring that any rate
request is justifiable and reasonable. The
process should be easy to explain and not
place an undue cost on either the JPA,
the jurisdictions, or the franchise hauler
to implement. The process also should
minimize administrative efforts of the JPA,
and its jurisdictions.
5. The rate setting process should provide
mechanisms for ongoing rate review
and rate stability. A periodic, formal, and
thorough JPA review (every three years)
of financial and operating data will set an
expectation for the hauler and ultimately
will protect the ratepayer. These reviews
should be conducted consistently and in
accordance with set schedules in the
manual. The process should prevent large,
unexpected fluctuations in rates due to
changes in costs or from the need to fund
a broadening scope of waste management
services. This formal process also serves to
meet the fiduciary responsibility of the JPA,
and individual jurisdictions, to its ratepayers.
6. The JPA and franchised hauler should
strive to maximize opportunities to
improve performance and service quality
while maintaining cost competitiveness in
the marketplace. In a "cost-plus-profit"
contract such as exists between the
jurisdictions and franchised hauler, there
can be less incentive for the hauler to
decrease costs because increases in allowable
costs actually result in increases in allowable
operating profit levels. Ideally, the JPA, and
the hauler, should set rates in a base year,
and the hauler should attempt to reduce its
costs in subsequent years.
C. Rate Setting Policies
The JPA will use the following eight (8)
policies when setting rates:
1. Use the Operating Ratio Method to
Determine Profit - The JPA will use the
operating ratio (OR) method to establish
revenue requirements for setting rates.
The operating ratio establishes revenue
requirements based on allowable expenses
and is defined as follows:
Operating = Allowable expenses
ratio Allowable expenses + Profit
The operating ratio effectively determines
the profit allowed to the franchise hauler on
operating costs. Total revenue requirements
then are determined as the sum of:
(1) allowable operating costs, (2) allowable
profit, and (3) pass-through costs (for which
the franchise hauler receives no profit).
Specific operating ratios are provided in
Exhibit 1-1 on page 1-10.
2. Do Not Allow Retroactive Rate Increases -
There will be no allowance for a retroactive
increase in rates, except by special
agreement, or by party default. Retroactive
reimbursements can move rates out of
alignment with the actual costs of providing
service. This process and methodology
codifies strict rate review timelines and
responsibilities. If the JPA, jurisdictions,
and hauler adhere to these timelines for
submission and rate change approval, and
no party defaults on these timelines, all
future rates should be established such that
there is no need for retroactive rate increases.
3. Do Not Allow Balancing Accounts -
This rate setting process is based on projecting
results during base years. Thus, actual base
year results likely will differ from base year
projections. In some regulatory environments,
these differences are "balanced" in subsequent
years by using a balancing account.
Balancing accounts are occasionally used in
the waste industry as an accounting-based
approach to true up a previous year's
1-3
255
projections to actual financial results. A
balancing account can then be used to address
differences between actual and projected
results. A balancing account requires
substantial administration, reporting, and
control measures which determine how funds
in the account are invested and managed.
When a balancing account is established,
terms and conditions related to these accounts
are clearly documented as part of a rate
setting process and methodology manual.
Also, terms and conditions are specifically
incorporated by reference into contractual
agreements between the respective parties.
The problem with balancing accounts is
that by funding surpluses and deficits using
rate revenues, rates charged to customers
ultimately do not reflect the true cost of
providing service to customers because they
include retroactive components. Over time,
current ratepayers can end up ultimately
subsidizing, or beneficing from, prior
generations of ratepayers. For example,
if rates are raised to pay off a balancing
account, then current ratepayers bear the
responsibility of what previous ratepayers
should have paid for initially.
Municipal finance principles generally
require a strong nexus between (1) cost-ofservice and benefits and (2) cost-of-service and rates. Use of a balancing account
generally breaks down this nexus and
results in rate inequalities.
A balancing account also frequently is less
useful when a long-term franchise exists.
With a long-term business partnership,
there is less need to recover variances
between actual and projected results on
a year-to-year basis. These variances can
often be absorbed over the course of a long
term franchise, such as is the case between
the jurisdictions and franchise hauler.
Balancing accounts are not designed to
account for differences between "rates asked
for" and "rates received." They also are not
designed for accounting for differences
between "rates received" and "a fair rate of
return. " Balancing accounts, by their very
nature, result in retroactive rates, which do
not reflect cost-of-service based rates.
4. Do Not Allow Fuel Surcharges - There
will be no separate "fuel surcharges" added
to rates to account for increases in fuel
costs. Fuel surcharges create accounting
problems (e.g., which fuel index to use,
over what time period to use the index,
and determining what portion of the rate
that fuel costs represent). Fuel surcharges
require separate accounting from allowable
rate changes which may already reflect
compensation to the franchise hauler for
changes in fuel costs (e.g., as part of a CPIbased rate change during interim years).
Fuel surcharges lag actual changes in fuel
prices (by as much as one year), so changes
in the fuel surcharge are disconnected
from current changes in fuel prices. Fuel
costs typically represent a relatively small
portion of the overall rate charged (less
than ten (10) percent), minimizing the
impact of fluctuating fuel prices on overall
rates. Finally, once established, fuel
surcharges can linger within rates during
periods when fuel prices are stable and
when a fuel surcharge is not necessary.
5. Analyze Related Party Transactions -
The company has certain related-party
transactions with affiliates. The company
must disclose all related party transactions
as part of the rate setting process.
The JPA will allow only those transactions
with these related parties which are "market
based." The JPA will assess whether related
party transactions are conducted on an
"arms length" basis, equivalent to terms as
with an unrelated party in the conditions
of a competitive, free market, environment.
STR related parties are identified in
Table 1-2, on the next page.
During its review, the JPA may request that
STR provide the following information in
support of related party transactions:
D Allocation methods used, if applicable
1-4 Solid Waste Rate Setting Policies and Procedures Manual 256
Table 1-2
STR Related Parties and Transactions
Related Company Relationship/Transaction
Douglas Disposal, • Owned by same ownership
Inc. (DOI) group as STR
• STR leases facility space to DOI
• STR leases office space to DOI
• STR leases computers to DOI
• STR loans money to DOI
Tahoe Basin • Owned by same ownership
Container Service group as STR
(TBC) • STR leases facility space and
equipment to TBC
• ST R leases office space to TBC
• STR rents computers to TBC
• STR loans money to TBC
American River • Owned by same ownership
Disposal (ARD) group as STR
• STR leases office space to ARD
• STR leases computers to ARD
• STR provides office contract
labor to ARD
Sierra Disposal • Owned by same ownership
Service (SOS) group as STR
• ST R leases office space to SOS
• STR leases computers to SOS
0 Nature, extent, and magnitude of
the relationship
0 Terms of the related parry transaction
(e.g., timing of payments, term length)
0 Historical information (e.g., ownership)
0 Dace of acquisition (if applicable)
0 Purchase price of item (if applicable)
0 Financing terms for item (if applicable).
The JPA may require STR to provide up
to three (3) comparable lease races for
leases of facilities and equipment. For
related parry company leases, the JPA may
require STR to identify financing charges,
or profit components, within these lease
rates. STR should be prepared to support
the business purpose for each related
parry transaction.
The JP A will examine how related parry
transactions are created for rate setting
purposes in the Base Year Rate Application.
The JPA will assess whether related
parry transactions already have a profit
component on chem, and if so, treat these
related parry transactions as pass-through
costs (without a profit component)
to avoid a "double counting" of profit.
The JPA will consider all of the above
factors in determining whether the related
parry transaction is an allowable cost and
is charged at a reasonable amount.
6. Account for Prior Resource Recovery
Facility (RRF) Rate Funding - For each of
the three consecutive years of 2005, 2006,
and 2007, each of the three jurisdictions
approved a nine (9) percent race increase
for STR. The first of these three nine (9)
percent race increases, implemented in 2005,
was provided to fund general STR cost
increases. For the second nine (9) percent
race increase implemented in 2006, a total of
six (6) percent of chis nine (9) percent rate
increase was provided to fund operating
and capital costs of the Resource Recovery
Facility (RRF) project. For the third nine (9)
percent rate increase, implemented in 2007,
a total of six ( 6) percent of chis rate increase
also was provided to fund operating and
capital costs of the Resource Recovery
Facility (RRF) Project.
For 2006, and 2007, El Dorado County
and Douglas County required chat STR
pay the six ( 6) percent race increase, which
was provided to cover the RRF, to the JPA.
The JPA then released these amounts back
to STR upon completion of certain RRF
project milestones.
For 2006, and 2007, the City of South
Lake Tahoe required chat STR pay the
six (6) percent rate increase, which was
provided to cover the RRF, to the City
of South Lake Tahoe. The City of South
Lake Tahoe then released these amounts
back to STR upon completion of certain
RRF project milestones.
1-5
257
Table 1-3
Recycling Revenue Bonus Amounts
For Extraordinary Diversion
(2012 to 2018)
-
Minimum Minimum
Diversion Rate Diversion Rate
Years To Achieve 25% To Achieve 50%
of Recycling of Recycling
Revenue Share Revenue Share
2012 to 2014 38 44
2015 to 2016 40 47
201 7 co 2018 43 50
STR received these RRF-related funds and
collected project revenues in excess of
project expenses totaling $4,722,285. The
RRF project was completed in April, 2010.
Beginning at the next base year (2012),
STR will include a credit to JPA
jurisdiction ratepayers of $787,048 each
year through the end of 2017. This
amount was determined by dividing the
credit of $4,722,285 by six years. The
credit amount of $787,048 will be applied
to the base year rate in 2012 and 2015.
This means that in each base year, the
$787,048 amount will be reset as a credit
line item in the base year rate application.
7. Use Recycling Materials Sales Revenue
Sharing - There will be a recycling revenue
bonus which is tied to STR diversion levels.
In addition to the calculation of allowed
profit, STR is allowed the recycling revenue
bonuses shown in Table 1-3, below. For
years 2019 and beyond, the JPA will reassess
whether the recycling diversion rates, which
trigger revenue sharing, remain sufficient
to meet State of California diversion
requirements. For 2019 and beyond, the
JPA may adjust the diversion rates, which
trigger revenue sharing, upward by up to
three (3) percent per year to achieve greater
State of California diversion requirements.
8. Eliminate Annual Summary Report -
Beginning in 2010, STR will no longer be
required to submit an Annual Summary
Repon as had been the required practice dating
back to the original 1996 Manual version.
9. Unforeseen Circumstances - The JPA
and/or the three jurisdictions shall consider
a proposed revision in STR's rates whenever
STR establishes to the satisfaction of the
JPA and/or each jurisdiction that unforeseen
circumstances have arisen that have or will
materially affect STR's costs or revenues
under this rate manual.
D. Rate Application Process
1. Base Year Process
The JPA requires that the franchise hauler
submit a detailed Base Year Rate Application once
every three (3) years. With the Base Year Rate
Application, the franchise hauler provides detailed
financial and operating information which is
carefully reviewed and analyzed by the JP A.
These detailed reviews are referred to as "base
year reviews" in the methodology.
With the Base Year Rate Application, the franchise
h~uler submits audited financial statements for the
previously completed fiscal year. These statements
serve as the base documents for the application.
The franchised hauler should reconcile financial
information contained in the Base Year Rate
Application with the audited financial statements
to provide assurance that all of the company's
activities are accounted for.
The timing of the base year process is shown
in Figure 1-1, on the next page. The schedule
is expected to start with submission of the Base
Year Rate Application on May 31" of the year
proceeding each base year. The process targets
an implementation date of January 1" of the
base year. 5
5 For Douglas County, the maximum rate increase is 9.9 percent before the County must take the increase to the County citizens for a vote of approval.
1-6 Solid Waste Rate Setting Policies and Procedures Manual 258
Figure 1-1
Timing of Base Year Process
2 Verify Completeness of Rate Application
3 Review Rate Application and Prepare Response
4 5
6 7
8 Prepare Draft Report and Final Report
Prepare Final Report to JPA Board
Notify Customers of Rate Hearing
Receive Approval from City Council and
County Boards
Implement New Rates
Table 1-4
Base Year Financial Statement Requirements
(Fiscal Year Ending June 30)
Base Prior Current Base
Year Year Year Year
(Audited) (Estimated) (Projected)
2012' 2010 2011 2012
2015 2013 2014 2015
2018 2016 2017 2018
2021 2019 2020 2021
2024 2022 2023 2024
2027 2025 2026 2027
The Base Year Rate Application requires three
(3) years of data, including a year of actual data
(based on audited information), a year of
estimated data (based on year-to-date information
available at the time the application is submitted),
and the projection, or base year. The required
years, and types, of data for upcoming base year
reviews are displayed in Table 1-4, above. For
• Represents the fiscal year ending June 30, 2011 .
example, for the 2012 base year, STR would
prepare the Base Year Rate Application using
audited 2010 data, estimated year-to-date 2011
data, and entirely projected 2012 data.
STR operates on a fiscal year ending June 30.
Thus, for the current year, STR should have
available the first three quarters of compiled,
not audited, fiscal year data to use for its current
year estimate (i.e., data through March of the
current year).
2. Interim Year Process
In each of the "interim" two (2) years between
"base" years, should the franchised hauler want to
increase rates, the JPA requires that the franchise
hauler submit an Interim Year Rate Application
for an interim year rate change. The scope and
content of the Interim Year Rate Application is
much more limited than a base year request. The
franchised hauler is not obligated to request an
increase in rates and can instead request to leave
rates unchanged.
1-7
259
Figure 1-2
Timing of Interim Year Process
2 Prepare Draft Report and Final Report
3 Receive Approval from City Council and County Boards. 4 Implement New Races
During the interim years, STR shall be entitled to
increase its rates based upon the following formula:
(1) eighry-five (85) percent of the annual
percentage change in the most recent actual,
not forecasted, change in the Consumer
Price Index, All Urban Consumers,
U.S. Ciry Average - Garbage and Trash
Collection (December 1983= 100, series
CUUROOOOSEHG02) ("CPI") applied to
costs other than landfill disposal costs, plus
(2) projected changes in landfill disposal costs.
7 For the first part of the calculation (noted as
(1) above), the JPA and franchised hauler will use
the percentage change in the CPI for the prior
June to June twelve-month period. This June to
June CPI data will be available at the time the
franchised hauler submits the Interim Year
Application in August (see Exhibit A-4, for sample
of CPI percent change calculation).
Interim year rate adjustments are subject to a
"floor" and 'a "cap." During interim years, rates
shall not be greater than six ( 6) percent nor less
than one (1) percent, regardless of the rate
change calculated by the interim year formula.
The timing of the interim year process is
shown in Figure 1-2, above. The schedule is
expected to start with submission of the Interim
7 These landfill disposal costs are currently set by a non-related party to STR, under a long-term disposal agreement.
Year Rate Application on August 31" of the year
proceeding the interim year. The process targets
an implementation date of January 1" of the
interim year.
E. Allowable and
Non-Allowable Costs
Rates are established for each base year based
on the hauler's projected revenue requirement.
The revenue requirement is defined as the sum
of the following: ,
• Allowable costs
• Allowable operating profits
• Pass through costs.
For purposes of computing the revenue
requirement, it is necessary to determine which
of the franchise hauler's costs are (1) allowable
costs, (2) pass through costs, and (3) nonallowable costs.
1. Allowable Costs
When a cost is said to be "allowable," that
cost, plus a profit component associated with
that cost, is included in rates charged to the
ratepayers. Allowable costs are often those costs
that are integral to the hauler's operation and/or
are associated with actual activiry performed by
the hauler.
1-8 Solid Waste Rate Setting Policies and Procedures Manual 260
Table 1-5
Allowable Depreciation Methods and Useful Lives
for STR Assets Purchased After January 1 , 201 O - -
Category Method Useful Life
(Years)
Carts SL' 5
Office Equipment SL 5
Vehicles and Equipment SL 8
Buildings and Leasehold SL 20 Improvements
The hauler is allowed to earn a profit on certain
costs. The majority of allowable costs are direct
labor, equipment costs and facility costs, landfill
disposal costs, office salaries, and general and
administrative costs. These allowable costs are
defined in Exhibit 1-1, on the following page.
Exhibit 1-2, following Exhibit 1-1, includes a
chart of expense accounts (based on current STR
financial statements) for allowable costs, which
serves to further clarify categories of allowable costs.
The following costs are clarified because of
their special treatment for rate setting:
• Depreciation - Table 1-5, above, shows
depreciation methods and useful lives, by
asset type, recommended for rate setting
purposes. Current methods used to
depreciate capital items, which were in use
prior to this version 2.0 of the manual, are
allowed to continue. Useful lives in Table
1-5 are for new capital purchases (i.e.,
those made during and after 2010).
• Officer's Salaries - Reasonable officer's
salaries are considered an allowable cost.
Officers are employees fully performing
management functions identified in the
franchise agreement. Officer's salaries
include base compensation plus bonuses
and do not include profit distributions
to owners. The JPA shall set the total
combined officer's salaries for the franchise
• Represents straight-line depreciation.
hauler, at a reasonable level, during each
base year. For purposes of establishing
base year rates, the total amount of
officer's salaries of six ( 6) percent of gross
revenues is deemed reasonable.
9 • Materials Recovery Facility and Resource
Recovery Facility Capital Costs - The
rate treatment of equipment and building
costs associated with the STR Materials
Recovery Facility (MRF) and Resource
Recovery Facility (RRF) is summarized in
Table 1-6, on page 1-13. These rate
treatment provisions are based on the
agreed upon terms and conditions at the
time the MRF and RRF were constructed.
• Blue and Green Bag Program Costs -
STR currently provides blue bag curbside
recycling services to JP A customers. STR
collects these blue bags with the refuse
container and sorts the materials at its
Materials Recovery Facility (MRF). Blue
bags are, however, currently paid for by
the jurisdictions themselves and not STR.
For the blue bag program, the costs for
blue bags are not included in current rates
charged to JPA customers.
STR plans to roll out a yardwaste program,
with or without the green bags also
collected with the refuse container.
Materials from the yardwaste program will
be sorted at STR' s Resource Recovery
Facility (RRF). For the yardwaste program,
the costs for green bags are not included in
current rates charged to JPA customers.
During the next rate review, blue bag and
yardwaste program revenues and costs will
be fully reflected in the rates charged to
JPA customers. The full costs of the blue
bag and yardwaste programs will be
9 Currently, officer salaries have been limited to an agreed upon amount specified in the franchise agreements to be adjusted annually by a CPI. STR distributes the officer salaries, under its discretion, within the limit allowed under the current franchise agreements for the City of South Lake Tahoe, El Dorado County, and Douglas County. Providing for officer salaries of 6 percent of gross revenues will provide about the same limit for officer salaries as the allowable amount specified in the franchise agreements.
1-9
261
Exhibit 1- 1
Definition of Financial Terms Page I of2
Application Line Number/Item Definition
Allowable Operating Costs
I. Direct Labor Wages, and related benefits, paid to refuse collection staff, including wages, overtime, payroll taxes, health and welfare benefits, workers compensation, and pension benefits.
2. Equipment Costs Includes cost of equipment depreciation, equipment leases, equipment insurance, equipment and Facility Costs repair and maintenance, fuel, and other miscellaneous equipment expenses. Facilities expenses consist of building rent, building depreciation, and building repair /and maintenance.
3. Landfill Disposal Costs Costs to dispose of solid waste at landfills.
4. Office Salaries Wages, and related benefits, paid to office and administrative staff, including wages, overtime, payroll taxes, health and welfare benefits, workers compensation, and pension benefits.
5. General and General and administrative coses including:
Administration Costs • Advertising
• Colleccion fees
• Contract labor
• Dues and subscriptions
• Employee education
• General insurance
• Office repair and maincenance
• Officer salaries and benefits (less chan or equal to six (6) percent of gross revenues) • Professional fees
• Property caxes
• Office expense
• Licenses
• Supplies
• Travel
• Utilities.
1-1 O Solid Waste Rate Setting Policies and Procedures Manual 262
Exhibit 1-1
Definition of Financial Terms , tir ~""J) Page2 f2
Application Line Number/Item Definition
Operating Ratio (OR)
Allowable Operating Profit
MRF and RRF Principal
Payments
Interest Expense
Franchise Fees
Resource Recovery Facility Fund
Credit
Allowable Operating Profit
For the City of South Lake Tahoe and Douglas County, a profit is allowed based on a sliding scale which varies with STR's recovery percentage as follows:
Operating Ratio Recovery Percentage
94.34 0-15%
93.90 16
93.46 17
93.02 18
92.59 19
92.17 20
91.74 21
91.32 22
90.90 23
90.50 24
89 25-28
88 29-32
87 33-100
For El Dorado County, a profit is allowed, based on a targeted operating ratio ranging betweer 87 and 91 percent. For El Dorado County, in the base year, if rates remain unchanged at an operating ratio within the range of 87 to 91 percent, and the franchise hauler actually realized an operating ratio within this range, then that same operating ratio resulting in no rate change is used, and no rate change occurs. Otherwise, an 89 percent operating ratio is used for the bas year calculation. For El Dorado County, the operating ratio for the first base year (2012) will be set at 89 percent.
Established by the allowable operating ratio and equal to total allowable costs divided by the allowable OR, less total allowable costs.
Pass Through Costs
For the City of South Lake Tahoe and Douglas County, principal payments on debt used to finance the Materials Recovery Facility (MRF) and Resource Recovery Facility (RRF). For El Dorado County, principal payments on the debt used to finance the MRF and RRF will be allowed with profit.
For the City of South Lake Tahoe and Douglas County, interest on debt used to finance all STR operations. For El Dorado County, interest on the debt used to finance the MRF and RRF will be allowed with profit.
Equal to five (5) percent of gross residential, commercial, and recycling revenues for the City of South Lake Tahoe and El Dorado County, and three (3) percent of gross residential, commercial, and recycling revenues for the Douglas County. 10 Rates will be reduced by an amount of$288,121 (plus afcer tax interest) for each year between 2012 and 2024
10 This franchise fee amount is subject to change by any of the three (3) JPA jurisdictions. 1- 11
263
Exhibit 1-2
Chart of Accounts
for Allowable Operating Costs
Category Description
Direct Labor • Direct Labor
• Direct Labor Benefits
• Direct Labor Insurance
• Direct Labor Workers Compensation
• Direct Labor Pension
• Direct Labor Payroll TaJCes
Equipment Costs and Facility Costs • Equipment and Facility Depreciation • Property Rent
• Equipment Rent
• Fuel
• Repairs and Maintenance
Landfill Disposal Costs • Dump Fees
Office Salaries • Office Scaff Salaries
• Office Scaff Benefits
• Office Scaff Insurance
• Office Scaff Workers Compensation
• Office Scaff Pension
• Office Staff Payroll T aJCes
General and Administrative Costs • Advertising
• Contract Labor
• Dues and Subscriptions
• Employee Education
• General Insurance
• Office Expense
• Officer Salaries
• O cher Administrative Costs
• Licenses and Fees
• Property T aJCes
• Supplies
• Travel
• Ucilicies
1-12 Solid Waste Rate Setting Policies and Procedures Manual 264
Table 1-6
Materials Recovery Facility and Resource Recovery Facility Capital and Operating Cost Treatment -
Description
Materials Recovery Facility and Resource Recovery Facility Depreciation Equipment Depreciation II
Building Depreciation
Materials Recovery Facility and Resource Recovery Facility Building Financing Interest
Principal
12 Materials Recovery Facility and Resource Recovery Facility Equipment Financing Interest
Principal
- Rate Setting Treatment
Allowable with Profit
Non-Allowable Cost
Pass-Through Expense
Pass-Through Expense
Pass-Through Expense
Non-Allowable Cost
11 Includes reasonable depreciation on equipment used in the Materials Recovery Facility and Resource Recovery Facility. 12 Includes debt financing on loans provided by the South Lake Tahoe Basin Waste Management Authority. For El Dorado County's portion of the debt financing, these MRF and RRF financing amounts will be treated as an allowed cost. 1-13
265
considered an allowable cost (with profit) for
rate setting purposes. STR will then thereafter
purchase and provide the blue and/or green
bags to its customers as determined by the
JPA. The individual jurisdictions will no
longer be required to purchase and provide
blue and/or green bags to their customers.
2. Pass Through Costs
Pass through costs are costs included in rates
charged to customers, however these costs do not
have an associated profit component. Pass through
costs are generally transactional in nature and
often are thought of as costs not associated with
any significant effort performed by the hauler.
The following pass through costs do not earn
a profit, but are included in determining total
revenue requirements to establish solid waste rates:
• MRF principal payments (City of South
Lake Tahoe and Douglas County) 13
• RRF principal payments (City of South
Lake Tahoe and Douglas County) 13
• I 14 nterest expense
• Franchise fees
• RRF fund credit
• Franchise fees.
3. Non-AJlowable Costs
Non-allowable costs are not allowed in rates
charged to ratepayers. These costs are disallowed
because (1) they may not be associated with the
core business, (2) they may be included implicitly
in the profit level allowed by the JPA, or (3) they
may unnecessarily complicate rate regulation
(e.g., income taxes). Costs shown in Exhibit 1-3,
on the next page, are not allowable for rate setting,
and as a result will not be passed onto ratepayers.
13 For El Dorado County, principal payments on the MRF and RRF financing are allowable costs.
14 For El Dorado County, interest on the MRF and RRF financing is an allowable cost.
Table 1-7
Recommended STR Allocation Methods For Costs
Shared with Other Non-JPA Serviced Jurisdictions
Cost Category Allocation Method
Billing costs Number of bills processed
Disposal costs Actual tonnage
Equipment costs (e.g., rental, Truck usage (over
leases, parts, fuel, supplies, representative period)
tires, repair and maintenance,
licenses, permits)
Franchise fees Revenues multiplied by
fee percentage
General and administrative Direct labor hours
costs, management fees
Loans Revenues
4. Cost AJlocations and Methodologies
The franchised hauler should provide
supporting documentation and rationale for the
allocation of expenses between the franchised
areas covered by this manual and non-JPA areas
serviced by South Tahoe Refuse Company .
Examples of the types of expenses which may
require justification for allocations may include:
• Billing costs
• Disposal costs
• Equipment costs
• General and administrative costs
• Loans to or from affiliates
• Loans to or from officers
• Management fees.
The franchised hauler should be prepared to
provide a reasonable and supportable methodology
for these cost allocations. Table 1-7, above,
provides recommended allocation methods for
various costs which may be shared between JPA
and non-JP A jurisdictions.
1-14 Solid Waste Rate Setting Policies and Procedures Manual 266
Exhibit 1-3
Non-Allowable Costs
Category
Amortization of Franchise Purchases
Charitable and Political Donations
Entertainment Expenses
Fines and Penalties
Income Taxes
Cost of Repairs Due to Operator Negligence
Costs Incurred to Serve Other Jurisdictions
(i.e., for non-JPA areas served by STR
(e.g., Forest Service areas))
-- Description
Consistent with the waste management industry, the JPA disallows amortization of franchise purchases because the operating ratio is designed to provide a return to the company sufficient to compensate for the company's investment in the business. • Costs associated with attempting to influence the outcome of any federal, state, or local election, referendum, initiative, or similar procedure, through in-kind or cash contriburions, endorsements, publicity, or similar activities. • Establishing, administering, contributing to, or paying the expenses of a political parry, campaign, political action committee, or other organization established for the purposes of influencing the outcomes of elections.
Costs incurred in hosting social events for clients or suppliers. Examples include costs of tickets, concerts, athletic events, or other performances; room rentals; cruises; entertaining guests at athletic, social, or sporting clubs and on vacation or other similar trips.
Costs associated with violations of, or failure of, the hauler to comply with federal, state, local, or foreign laws and regulations. This category of non-allowable costs can also include costs in connection with alteration or destruction of records, or other false or improper charging or recording of costs.
The operating ratio is provided on a pre-tax basis. To allow income tax expense would unnecessarily add complexity to the rate review process.
Costs of negligence on the part of the hauler which could include accidents or property damage.
The franchised hauler will be compensated for only those costs that can be directly attributable to operations within the franchised boundaries. The franchised hauler should have a clear basis for allocating shared costs to the franchise areas covered by this manual, and those franchised areas not covered by this manual.
The JPA will assess reasonableness of the revenue
and cost projections provided by the franchised
hauler in its Base Year Rate Application. Examples
of rypes of factors the JPA will consider when
assessing reasonableness of projected revenues and
costs are shown in Table 1-8, on the next page.
1-15
267
Table 1-8
Base Year Rate Review
Revenue and Cost Projection Factors ~
Description Factors to Consider in Developing Revenue and Cost Projections Revenues
RC5idential and commercial revenue5 • Projected account growth based on historical account trends, or population trends • Historical changes in tonnage (particularly for the industrial sector) Recycled materials sales revenue5 • Historical changes in recycled materials volumes • Recycled commodity pricing trends (may be highly volatile) Costs
Direct labor • Projected increases in wage rates
• Planned changes in insurance races
• Planned changes in benefit races
Equipment costs and facility costs • H istorical average trends in costs (last three years) • Inflation rates
• Fuel price history
• Depreciation schedules
• Equipment replacement plans
Landfill disposal fee5 • H istorical changes in refuse tonnage • Tipping fee rate increases, per contract
Office salaries • Projected increases in wage rates
• Planned changes in insurance rates
• Planned changes in benefit rates
General and administrative costs • Historical average trends in coses (lase three years) • Inflation rates
MRF principal payments • Loan documents
lntere5t expense • Borrowing rates
• Loan documents
Franchise fees • Projected changes in revenues multiplied by the fee amount 1-16 Solid Waste Rate Setting Policies and Procedures Manual 268
Section 2
Base Year Rate Setting Process
269
2. Base Year Rate
Setting Process
This section describes each of the eight (8) steps of the base year rate setting process.
Each step includes an overview of the seep and a detailed description of the casks required co complete the step. The section includes eight (8) subsections:
A. Step 1 - Prepare and Submit Rate Application
B. Step 2 - Verify Completeness of Rate Application
C. Step 3 - Review Rate Application and Prepare Response D. Step 4 - Prepare Draft Report and Final Report
E. Step 5 - Present Final Report to ]PA Board
F. Step 6 - Notify Customers of Rate Hearing
G. Step 7 - Receive Approval from City Council and County Boards H Step 8 - Implement New Rates.
A. Step 1 - Prepare and Submit Rate Application
Responsibility: Franchise hauler
Timing: Completed seven (7) months prior to the dace new races become effective Tasks: a.
b.
c.
d.
e.
f.
g.
h.
I.
Overview
Prepare Cost Information
Prepare Revenue Information
Prepare Operating Information
Calculate Allowable Operating Profit
Determine Franchise Fee
Calculate Revenue Requirement
Calculate Net Surplus/Shortfall and Percent Change in Rates Calculate New Percentage Race Change and Races
Prepare and Submit Race Application.
During chis seep, the franchise hauler prepares the Base Year Rate Application. This three-page form includes detailed financial and operating information and is used to determine the actual costs and revenues of the franchise hauler. Blank copies of the Base Year Rate Application are provided in Appendix A (Exhibit A-1).
Several lines in the application contain four columns. These columns are intended to show the relationship between the most recently completed year, the current year, and projections for the new "base" year. These columns are organized as follows:
270
• Column one includes actual audited
information for the franchise hauler's prior
fiscal year. This is the most recent year that
financial information is available and that
actual costs and revenues can be verified.
• Column two is for estimating performance
during the current fiscal year. The "current
year" is the franchise hauler's fiscal year prior
to the new base year. The Base Year Rate
Application is prepared during the course
of the current year. Data in this column
should include year-to-date performance
plus estimated performance during the
remaining months of the current fiscal year.
• Columns three and four are used to report
projected performance during the new base
year. This information is entirely a
projection and is utilized to determine any
rate changes. Projected information should
be developed by estimating anticipated
service levels during the base year, and
determining the revenues and expenses
which will be incurred to provide these
services. Each cost element in the application
should be reviewed and any anticipated
change in specific line items should be
included in the base year projection. For
example, if labor rates are scheduled to
change, or if landfill disposal costs are
expected to change, these changes should be
included in projections for the base year.
The relationship between these four (4) columns
for any given line item should be consistent. Any
substantial difference between each of the three (3)
years should be explained by the franchise hauler and
considered by the JPA during the review process.
The franchise hauler should provide a copy of
audited financial statements for the prior fiscal
year. Financial information from the audit is
consolidated into specific categories identified in
the application. All financial information shall be
in accordance with generally accepted accounting
principles. The franchise hauler should prepare
supplemental documentation which reconciles
the financial audit for the most recently
completed fiscal year to information provided in
the application. This documentation should be
included in the application package.
a. Prepare Cost Information
Cost information from the franchise hauler is
provided in the Base Year Rate Application. Cost
information is reported for the most recently
completed fiscal year, the current fiscal year, and the new base year. Information reported in each line item
represents the total combined costs for residential,
curbside recycling, yardwaste, commercial, transfer
station, and RRF services. Segregation of costs by
residential, curbside recycling, yardwaste, commercial, transfer station, and RRF services is not required.
Cost information includes:
• Allowable Costs
D Direct Labor (Line 5)
D Equipment Costs and Facility Costs (Line 6)
D Landfill Disposal Costs (Line 7)
D Office Salaries (Line 8)
D General and Administration Costs (Line 9)
D MRF Principal and Interest Payments
(El Dorado County) (Line 1 O)
D RRF Principal and Interest Payments
(El Dorado County) (Line 11)
• Pass Through Costs
D MRF Principal Payments (Line 15)
D RRF Principal Payments (Line 16)
D MRF and RRF Interest Expenses (Line 17)'
D Franchise Fees (Line 59)
D RRF Fund Credit (Line 18)
D Recycling Revenue Bonus (Line 19).
Definitions and specific components of these cost
categories are described in Exhibits 1-1 and 1-2,
in Section 1.
' For El Dorado County, interest on the MRF and RRF financing is an allowable cost.
2-2 Solid Waste Rate Setting Policies and Procedures Manual 271
By aggregating costs into these line items, the
JPA, and franchised hauler, can focus on major
changes without becoming distracted by large
changes in insignificant cost components. For
example, if licenses and fees doubled from
$10,000 in the current year to $20,000 in the base
year (i.e., a 100 percent increase), this might only
cause General and Administrative Costs to
increase by one percent, resulting in little impact
on the overall rate. Minor components of General
and Administrative Costs may decrease between
the current year and the base year, while others
may increase.
If one of the major cost line items in the
application changes at an unusual rate, then the
franchise hauler should be able to explain the
change. An unusual change in cost is any change
which is greater than the change in the U.S. City
Average Garbage and Trash Collection CPI. The
CPI used in the analysis should be based on the
most current actual information for the U.S. City
Average Garbage and Trash Collection CPI. This
information is available from the United States
Department of Labor, Bureau of Labor Statistics.
Cost information for the current year, and base
year, must account for any increases or decreases
in the number of customers served, or tons of
waste and recyclable material collected. Actual
increases in costs also must be included. For
example, if health benefit costs will increase in
the base year as a result of increases in premiums,
this additional cost should be included.
Cost information provided in the application
is used with operating profit to calculate the
franchise hauler's revenue requirement. The
revenue requirement is equal to the sum of the
following three categories:
• Total allowable operating costs
• Allowable operating profit
• Total pass through costs.
This revenue requirement is compared to
anticipated revenues. The JPA uses the operating
ratio (OR) method to establish revenue
requirements for setting rates.
b. Prepare Revenue Information
Revenue information is provided in this task.
Similar to cost information, revenues are reported
for the most recently completed fiscal year, the
current fiscal year, and the projected base fiscal year.
Revenues are reported in four (4) separate categories:
• Residential
• Commercial
• Transfer station and RRF revenues
• Recycled material sales.
Revenues in the base year are projected without
any changes in rates. Revenue projections are
prepared based on existing rates and the number
of customers which the franchise hauler
anticipates serving in the base year.
1. Determine Residential Revenues.
To calculate projected residential revenues
for the base year, enter the current monthly
rates by service type in the first column of
cells in lines 22 to 48, on page 2 of 3. Then
enter the projected number of accounts by
service type in the second column of cells
in lines 22 to 48, on page 2 of 3. Total
revenues for each service type are calculated
based on the following:
Multiplied lzJ
Equals
Current rate per month
Twelve months
Rate per year
Multiplied lzJ Projected residential accounts
Equals Revenues by service type.
Revenues by service type then are entered in
the third column of cells in lines 22 to 48,
on page 2 of 3. These values then are added
together, entered, and totaled in line 49.
Residential revenues should reflect all revenues
2-3
272
generated for providing curbside collection
services of refuse, recyclables, and yardwaste.
The number of accounts in each service
category may change throughout the year.
For example, some customers may request
one can service part of the year and an
additional can during the remainder of the
year. The average number of accounts by
service type should be used in these
calculations. In addition, the number of
accounts identified for these calculations
must agree with operating data provided in
Section VIII (page 3) of the application.
Multi-family can, cart, and bin services, and
mobile home park can, cart, and bin services,
should be included in residential revenues.
2. Determine Commercial Revenues.
Commercial revenue information is entered
in line 54 of page 2 of 3 of the application.
In the first column of this line, actual
revenues generated by commercial accounts
during the prior year are reported. This year
amount must reconcile with the financial
audit for that same year. Commercial
revenues for the current year are based on
actual revenue to-date plus an estimate of
the revenues that will be received through
the end of the fiscal year. Commercial
revenues in the current year should be
comparable to revenues in the prior year,
after taking into changes in accounts and
service levels.
Projected commercial revenues for the new
base year are entered in the third and fourth
columns. These amounts, net of any projected
uncollectible accounts, are based on the
estimated annual revenues received during
the current fiscal year plus any additional
revenues generated from additional accounts.
Operating data provided in Section VIII
(page 3) of the application should support any
service level changes.
In order to analyze changes in commercial
rates, rate information must be provided for
specific commercial services. These services are:
Bin Service (Compacted
and Uncompacted)
D 2 Yard Bin-once per week
D 3 Yard Bin - once per week
D 4 Yard Bin - once per week
D 5 Yard Bin - once per week
D 6 Yard Bin - once per week.
In the columns of lines 74 through 78, the
franchise hauler enters the rate for these
services for the prior year, the current year,
and the base year, respectively. Percentage
changes then are entered in columns 3 and
6. This information substantiates previously
approved changes in commercial rates.
3. Determine Allowance for Uncollectible
Accounts. The franchise hauler likely will
not be paid by all customers served. While
this amount is expected to be relatively
small, it must be accounted for in the
calculation of base year net revenues. These
amounts are reported in two places for each
service type: on line 50 for the allowance
for uncollectible residential accounts, and
line 53 for the allowance for uncollectible
commercial accounts.
These amounts can be calculated based on a
formula, such as one percent of anticipated
revenues, or based on actual experience.
Assumptions related to the projection of
uncollectible accounts must be documented and
included as a supplement to the application.
4. Determine Transfer Station and RRF
Revenues. Transfer station and RRF
revenues are included in the total revenue
calculation. In the first column of line 55,
actual revenues received during the most
recently completed fiscal year are reported.
In the second column of line 55, estimated
revenues for the current year are reported.
For the base year, transfer station and RRF
revenues are determined by the best estimate
of transfer station and RRF operations
during the new base year. The projected
revenues are reported in the third and fourth
columns of line 5 5 of the application.
2-4 Solid Waste Rate Setting Policies and Procedures Manual 273
5. Determine Revenues from Recycled
Material Sales. In addition to revenues
generated through residential and
commercial services, and from the transfer
station and RRF, additional revenues are
generated by selling recyclable materials
collected through the curbside re_cycling
program. The amount of recycling revenues
generated through the sale of these
materials is dependent upon the quantity
of material collected and the market price
for these materials. Both of these factors
are outside direct control of the franchise
hauler. Therefore, revenues generated by
recycled material sales are not subject to
an across-the-board rate changes. Revenues
generated from charging residential
customers for curbside recycling services
should not be included here, but should
be included as part of residential revenues
(#1 above).
In the first column of line 56, actual
revenues received during the most recently
completed fiscal year are reported. In the
second column of line 56, estimated
revenues for the current year are reported.
For the base year, revenues from recycled
material sales are determined by projecting
scrap prices for recycled materials and the
anticipated quantity of materials sold. The
projected scrap prices are multiplied by the
projected volume of materials to be sold
to determine projected recycled materials
sales revenues. These projected revenues are
reported in the third and fourth columns of
line 56 of the application.
6. Calculate Total Revenues. The calculation
of total revenue is as follows:
Total residential revenues (Line 51)
Plus Total commercial revenues (Line 54)
Plus Transfer station and
RRF revenues (Line 55)
Plus Recycled material sales (Line 56)
Equals Total revenues.
Total revenues are entered on line 57.
c. Prppare Operating Information
During this task, non-financial operating
information is compiled by the franchise hauler.
Operating information, requested in the application,
provides an important indicator of the franchise
hauler's performance. If costs are changing at an
unusual rate, operating data may provide some
explanation of these changes. For example, cost
increases could be attributed to the increased level of service provided (i.e., accounts served). The franchise hauler should provide the following information:
• Number of accounts
• Quantity of refuse tonnage collected
• Quantity of recycling tonnage collected
• Quantity of yard waste tonnage collected
• JPA bins provided.
Similar to cost data, the first year is "historical,"
the second year is the "current" year, and the third
year is the "base" year. Historical data are based
on actual annual operating statistics during the most
recently complete fiscal year and reflect the same
year used in the financial sections of the application.
Current year performance is based on performance
to-date plus estimated performance for the
remaining months of the current year. Projected
base year data represents the franchise hauler's best
projection of service levels during the new base year.
Year-to-year percentage changes then are
determined for each set of operating metrics. The
franchise hauler should be able to explain any
significant changes. A significant change in an
operating characteristic is an increase or decrease
of more than two (2) percent.
This information allows both the JPA, and the
franchise hauler, to monitor changes in the service
characteristics, estimate total revenues at existing
rates, and compare these to changes in total costs.
The franchise hauler should identify to the JPA
any operating information submitted as part of the
application that it considers confidential.
2-5
274
d. Calculate Allowable Operating Profit
For the historical year of actual data, the
franchise hauler will calculate the actual operating
ratio based on the formula below:
Divided bv
- Equals
Total allowable costs
Total allowable costs plus
Operating profit
Operating ratio.
These actual operating ratios on allowable costs
will reveal how well past base year projections
corresponded to actual results. Similarly, the
formula estimated above is used to calculate the
operating ratio for the current year (column 2).
The actual operating profit received by the
franchise hauler in the most recently completed
fiscal year is entered on line 13, column 1. The
estimated operating profit for the current fiscal
year also is entered on line 13, column 2.
To calculate the allowable operating profit in
the base year, the equation below is utilized:
Allowable operating costs
Divided by Operating ratio
Equals Allowable operating revenues
Minus Allowable operating costs
Equals Allowable operating profit.
The allowable operating profit is entered on line
13, columns 3 and 4 of the application.
In each base year, the operating ratio will range
as shown in Exhibit 1-1, which will help stabilize
rate changes and afford the franchise hauler an
incentive to reduce costs.
e. Determine Franchise Fee
The calculation of the franchise fee is not a
straightforward exercise because as revenue is
increased (e.g., via a rate change), so does the
amount of franchise fees increase because
franchise fees are based on a percent of gross
revenues. To calculate the franchise fee for the
base year requires the hauler to calculate the
franchise fee to be paid to each jurisdiction based
on the revenues after a rate change is applied.
Projected franchise fees should be entered on
line 59, columns 3 and 4 of the application.
f. Calculate Revenue Requirement
The revenue requirement establishes the level
of revenues needed to meet all allowable costs
and operating profit. This includes residential
and commercial waste and recycling costs, and
assumes a reasonable profit margin based on the
operating ratio calculation.
Total revenue requirement (without franchise
fees) is determined as the sum of:
• Allowable operating costs (Line 12)
• Allowable operating profit (Line 14)
• Pass through costs (Line 20).
The revenue requirement (without franchise fees)
is entered on line 21 of the application.
g. Calculate Net Surplus/Shortfall
and Percent Change in Rates
The net surplus/shortfall is determined based
on the following calculation:
Revenue requirement (Line 21)
Less Total revenues (Line 57)
Plus Residential and Commercial
Franchise Fees (Line :!2)
Equals Net surplus/shortfall (Line 60).
The projected amount of revenue generated
during the base year from the sale of recycled
materials was calculated in Step 1, #5 of
subsection b.; therefore, any increase or decrease
in revenues required must come from an increase
or decrease in rates.
2-6 Solid Waste Rate Setting Policies and Procedures Manual 275
If applicable, the percent change in existing
rates is calculated as follows:
Net surplus/shortfall (Line 60)
Divided by Total revenues without change
(Line 61)
Equals Percent change in rates (Line 62).
The percent change in rates is entered on line 62
of the application.
h. Calculate New Percentage
Rate Change and Rates
If applicable, the percentage rate change
identified on page 2 of 3, line 62 should be
entered on page 1 of 3, line 1 of the Base Year Rate
Application. Current residential rates for solid
waste collection should be entered on page 1 of 3.
The adjusted rates for each jurisdiction then are
calculated by multiplying the current rate by one
plus the rate change identified in line 1.
To determine new residential rates on page 1
of 3, column one should be added to column two
and the result should be entered in column three.
This column provides the new rate schedule.
Complete current and revised commercial rate
schedules should be provided by the hauler as an
attachment to the application.
1. Prepare and Submit Rate Application
The franchise hauler submits the completed Base
Year Rate Application to the JPA. The application
should include the following items:
• Management Representation Letter.
The management representation letter
transmits the application to the JPA, and
should provide a listing of included
documents. The letter should identify the
requested adjustment in rates and include
a discussion of specific issues which impact
new rates (e.g., significant increases in
labor costs). The letter should state that:
D Management reviewed and accepts
responsibility for the rate application
D The application is based upon
management's judgment of the most likely
set of conditions and course of action
D All significant relevant information
are made available
D Assumptions are reasonable and
are accurate.
An authorized representative from the franchise
hauler should sign and date the application.
This signature provides a certification of the
franchise hauler that the application is
complete, accurate, and consistent with the
instructions provided in this manual.
• Base Year Rate Application. The franchise
hauler should provide a Base Year Rate
Application, including completed application
forms and supporting documentation.
Supporting documentation includes the
current and proposed rate schedules for
residential and commercial customers.
• Supplemental Audited Financial
Information. For applications received after
2010, audited financial statements for the
most recently completed fiscal year should
be included, as well as other documentation
which support operating and financial data
provided in the application. Because audited
financial statements serve as base documents
for the application, statements of revenues,
expenses, and other reports contained in the
application shall be reconciled to the audited
financial statements to provide assurance
that all activities are accounted for.
Once the application materials have been
prepared, the franchise hauler submits
three (3) reproducible hard copies and
one disk copy formatted to the JPA's
specifications. They are submitted to
the JPA. The thirty (30) day review for
completeness will begin upon receipt of
the application.
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276
B. Step 2 - Verify Completeness
of Rate Application
Responsibility: JPA
Timing: Completed within thirty (30) days
after the rate application is submitted
Tasks: a. Verify Financial Data and Format
b. Verify Supporting Documents
and Schedules
c. Notify Franchise Hauler.
Overview
During this step, the JPA ensures that the
application has been fully completed by the
franchise hauler and that the data provided are
consistent. During the 30-day period, the JPA will
obtain from the franchise hauler any information
necessary to complete the application.
a. Verify Financial Data and Format
The JPA staff reviews the application package
to determine if it is complete and ready for
analysis. Detailed analysis of the contents of the
application occurs during Step 3.
The JPA reviewer should determine the following:
• Has the applicant included all required forms?
• Are all forms complete?
• Are audited financial statements included?
• Are all financial calculations
mathematically correct?
b. Verify Supporting Documents
and Schedules
Various documents may be included in the
application package to support the rate change.
The purpose of these supporting documents
should be clearly identified by the franchise hauler.
c ~otify Fnnchise Hauler
If the application is complete, the JPA will notify
the franchise hauler that it will begin the process of
evaluating the application. If incomplete, the JPA
will attempt to obtain from the hauler additional
required information within the 30-day verification
period. A revision of rates shall not be authorized
until the l " day of the first calendar month
following a six (6) month period from the date
that an application is verified to be complete.
C. Step 3 - Review Rate Application
and Prepare Response
Responsibility: JP A
Timing: Completed within one and one half
(1 Yz) months after determining that
the application package is complete
Tasks: a. Review Actual and Projected
Revenue Requirements
b. Review Actual and Projected Revenues
c. Review and Verify Operating Ratio
d. Determine Components of
Requested Change in Rates
e. Review Performance Data
f. Request Additional Data and
Clarification, if Necessary
g. Document Staff Review.
Overview
During this step, JPA staff evaluates the entire
rate application. This review includes examining
significant changes in costs or operating
performance and evaluating explanations of
these changes provided by the franchise hauler.
a. Review Actual and Projected
Revenue Requirements
In this task, costs and operating profits are
reviewed and analyzed for reasonableness.
Reconciliations of costs to audited financial
statements are checked for consistency. Explanations
2-8 Solid Waste Rate Setting Policies and Procedures Manual 277
are sought from the franchise hauler for items
significantly different than would otherwise 1
normally be expected.
Percentage changes in costs for the three years
identified on the application should be calculated
and reviewed. Projections prepared from previous
years in prior Base Year Rate Applications are
compared with actual results. Costs are correlated
with operating collection efficiency statistics
provided by the franchise hauler.
Any unusual trends or variances in aggregate
areas should be explained by the franchise hauler.
An unusual increase would be a change in cost
which is greater than the change in the Trash and
Garbage Collection CPI, published by the Bureau
of Labor Statistics, and which cannot be attribured
to changes in the number of customers serviced or
tons of waste or recyclable materials collected. If
these unusual changes are not adequately explained
in the application, the JPA should request
additional clarification from the franchise hauler.
The JPA should review the allocation
methodology used by the franchise hauler to
allocate costs between ( 1) franchise areas that are
the subject of this manual, and (2) non-JPA areas
serviced by STR. At a minimum, the JPA should
check that allocations used to assign costs to
franchise area customers are reasonably consistent
with other operating metrics such as average
number of accounts and tons collected.
b. Review Actual and Projected Revenues
The JPA should review actual and projected
revenues in this task. Current rates provided in
the application are verified. Any changes in the
number of customers serviced should be identified
and explained by the franchise hauler.
The application requires the franchise hauler
to report three years of revenues: (1) actual prior
year, (2) estimated current year, and (3) projected
"base" year. For applications received after 2010,
the JPA should reconcile the most recent year
revenues with audited financial statements.
Revenues for the current year are compared with
year-to-date un-audited financial statements and
documentation supplied by the franchise hauler.
Projected revenues for the third, or "base" year,
are evaluated by the JPA for reasonableness.
Assumptions made by the hauler in preparing these
projections are reviewed. Revenues reported by the
franchise hauler should not include any rate changes
in the base year (year 3). Account information
included in the application is reviewed to determine
changes in the number of accounts served.
Allowances for uncollectible accounts also are
reviewed. These figures should be deducted from
total revenue projections. These allowances may
be based on a fixed percentage of total revenues
or on actual experience. Assumptions related to
allowances for uncollectible accounts should be
reviewed with the franchise hauler.
Revenues from recyclable material sales are
provided in the application. Amounts identified
in the prior (first) year provided should reconcile
with the financial audit. Amounts identified in
the current (second) year, the base (third) year
should be documented by the franchise hauler.
The JPA will review these projections to ensure
they are consistent with trends in recycling
collection costs, scrap values, processing costs,
as well as estimated diversion rates and tonnage.
c. Review and Verify Operating Ratio
The operating profit must be determined for the
base year. The JPA should calculate the projected
operating profit for the base year using the first
formula provided in Exhibit 1-1. For El Dorado
County, if the operating ratio is outside the 87 to 91
percent range, then the operating ratio should be
reset to 89 percent. If there are any errors by the
hauler in calculating the operating ratio, or allowable operating profits, these deficiencies are noted.
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278
d. Determine Components of
Requested Change in Rates
The ]PA evaluates all costs, revenues, and
operating profits provided in the application to
determine components of the requested adjustment
in rates. This would include determining the
proportion of the requested adjustment in rates
which is due to changes in each of the following:
• Costs
• Residential revenues
• Commercial revenues
• Transfer station and RRF revenues
• Recyclable material sales revenues
• Operating profit (or loss).
e. Review Performance Data
The ]PA reviews and analyzes performance data,
which are included in the application (the number
of accounts and tons collected). Operating statistics
are reviewed to explain past historical trends and
justify future expenses. Both actual and percentage
increases are examined and any unusual changes
in performance are investigated to determine
their cause and effect on future cost performance.
Changes in accounts served, the number of routes,
tons collected, or direct labor hours generally
should correspond to changes in costs and revenues.
f. Request Additional Data and
Clarification, if Necessary
Throughout the analysis of the application, The
]PA may request clarification and/or additional
data from the franchise hauler to explain any
unusual changes in costs or operating performance.
The ]PA may have identified missing information,
or changes in the financial or operating data
between the three years which require clarification
or further explanation. The franchise hauler
should respond to the JPA's request for additional
information within two weeks. Responses will vary
depending on the specific requirements of the JP A.
g Document Staff Review
During this task, the ]PA prepares workpaper
documentation of the review of the Base Year
Rate Application.
D. Step 4 - Prepare Draft Report
and Final Report
Responsibility: JPA
Timing: Completed approximately three (3)
months after determining the
application package is complete
Tasks: a. Prepare Draft Report
b. Provide Franchise Hauler
with Copy of Draft Report
and Receive Comments
c. Prepare Final Report.
Overview
A draft report with recommendations from ]PA
staff is prepared and submitted to the franchise
hauler for review. The franchise hauler will review
the draft report. The franchise hauler will have
an opportunity to provide written comments
regarding the draft report. The ]PA will address
these comments and prepare a Final Report.
a. Prepare Draft Report
In this step, the ]PA prepares a Draft Report
including recommendations for a rate change.
The draft report includes the following sections:
• Executive Summary. This is a one or twopage summary of the review process and may include a chart showing current and proposed
rates, and the recommended rate change.
• Introduction and Background. The
section identifies any proposed changes in
services provided by the franchise hauler.
The section also identifies the review goals,
objectives, scope, and other relevant
background information. This section
of the report may provide a brief overview
2- 10 Solid Waste Rate Setting Policies and Procedures Manual 279
of the rate change process and a discussion
of significant historical rate issues. If
applicable, this report will document the
rate change proposed by the JPA.
• Analysis and Discussion of Rate
Application. This section of the report
will include a review of the analysis work
completed by JPA staff. This section
might include the following subsections:
D Review of Rate Changes, including a
discussion of interim year rate changes
since the last base year, the relationship
of these changes to changes in the
Garbage and Trash Collection CPI, and
an analysis of the significant components
of the change in rates (e.g., changes in
labor costs.)
D Analysis of Projected Costs, including a
discussion of any unusual changes in
costs which were discovered and
unresolved during the review process.
D Discussion of Service Issues, including
changes in frequency or type of curbside
service. If significant service issues are
not involved with a rate change, this
subsection would be omitted.
• Recommendations. JPA staff would
present its recommendations regarding
specific changes in rates in this section of
the document.
• Appendices. Appendices to the report
would include:
D Rate application
D Revised rate schedule
D Audited financial statements of the
franchise hauler
D Other relevant supporting materials
provided by the franchise hauler.
b. Provide Franchise Hauler with Copy of
Draft Report and Receive Comments
During this task, the franchise hauler will
review the drafr report. Each section of the report
should be reviewed to ensure that correct data are
included, the JPA's analysis is consistent with the
methodology, and if applicable the proposed rate
change is determined accurately.
If any issues are identified during this step,
the franchise hauler works with JPA staff to fully
explore and resolve these outstanding issues.
The franchise hauler then will prepare a written
response to the draft report. The response may
cover one or more of the following topics:
• If data discrepancies exist in any of the
areas noted in the prior task, the JPA
should be notified of these discrepancies.
• If the analysis conducted by the JPA can
be clarified or considered differently, this
information should be provided to the JPA.
• If the report is acceptable and no
clarification or comments can be offered,
this should be relayed to the JPA.
If no written response is received by the JPA
within two weeks of delivering the JPA's Draft
Report, then the JP A will assume that the
franchise hauler has no issues with the report.
c. Prepare Final Report
Any additional or outstanding comments or
issues raised during the franchise hauler's review
of the draft report are addressed. If necessary,
meetings are conducted with representatives from
the JPA and the franchise hauler. Final solutions
to outstanding issues are included in the report.
After final comments from the franchise hauler
have been considered, the Final Report package is
prepared. A copy of the Final Report is submitted
to the franchise hauler.
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280
E. Step 5 - Present Final Report
toJPABoard
Responsibility: JPA
Timing: Completed two (2) months prior to the
expected implementation of new rates
Tasks: a. Distribute Final Report and
Summary to JPA Board
b. Obtain JPA Board Recommendation.
Overview
During this step, the Final Report is presented
to the JPA Board for review, comment, and for a
recommendation to the three jurisdictions.
a. Distribute Final Report and
Summary to JPA Board
In this task, the Final Report is provided to
members of the JPA Board. The report is included
as an agenda item for JPA Board consideration
at a regular JPA Board meeting. The rate change
may be placed on either the regular or consent
calendar. The JPA Board Clerk should be notified
four ( 4) weeks prior to the meeting at which the
rate change will be considered and reports should
be provided two (2) weeks prior to the meeting.
The JPA Board Clerk should follow applicable
public noticing requirements, so affected customers
can participate at the Board meeting.
b. Obtain JPA Board Recommendation
The JPA Board members review the report
and proposed rate changes. If the JP A Board
agrees with the recommendations of JPA staff,
the JPA Board recommends the rate change and
rares to the three jurisdictions. If the JPA Board
does not agree with staff recommendations, the
report is returned to JPA staff for additional
analysis. If the JPA Board does nor recommend
the report and rates, the JPA Board should
specifically identify deficiencies.
F. Step 6 - Notify Customers of
Rate Hearing
Responsibility: City and Counties
Timing: Completed 10 days prior to City
Council and County Board meetings
Tasks: a. Prepare Notification of Public
Hearing for Rate Change.
Overview
During this step, the City and Counties notify
customers of the rare setting hearing.
a. Prepare Notification of Public Hearing
for Rate Change
Once the JPA Board has recommended the
report and rares, the jurisdictions will notify
customers chat a rate hearing will occur. This
notification will occur prior to the City and
County rate hearing(s) where each jurisdiction
will consider whether to approve the JPA
recommended rates.
G. Step 7 - Receive Approval from
City Council and County Boards
Responsibility: City and Counties
Timing: Completed one (1) month prior to
expected implementation of new rates
Tasks: a. Distribute Final Report to City
and Counties
b. Obtain City and County Approvals.
Overview
During chis step, the respective cities and
counties within the JPA present the Final Report
for review and approval by their respective city
council and county boards.
2-12 Solid Waste Rate Setting Policies and Procedures Manual 281
a. Distribute Final Report to
City and Counties
In this task, the Final Report is provided to
the City of South Lake Tahoe, El Dorado County,
and Douglas County for review and approval.
The report is included as an agenda item for
consideration at a regular public meeting. The
clerk of each respective jurisdiction should follow
applicable public noticing requirements.
b. Obtain City and County Approvals
The City of South Lake Tahoe City Council,
the El Dorado County Board of Supervisors, and
the Douglas County Board of Commissioners
review the report and recommended rate
changes. If the rate changes are approved, they
are implemented. 2
2 Douglas County's rates are subject to a voter-passed initiative that requires the approval of the voters if the rate will increase by ten percent or more. The rate adjustments provided for in this manual are therefore subject to the Douglas County Code and Douglas County will not be in violation of its agreement with STR if a rate adjustment is not approved because it fails to obtain the required voter approval.
H. Step 8 - Implement New Rates
Responsibility: Franchise hauler
Timing: Conducted following City Council
and County Board approval of the
new rates
Tasks: a. Implement Rate Change.
Overview
During this final step, the franchise hauler
implements new rates, if applicable.
a. Implement Rate Change
During this final task, the new rates are
entered into the franchise hauler's billing system
and included in the billing cycle. If a rate change
occurs during the middle of a billing cycle,
unbilled or overbilled amounts are calculated
and included in the next billing cycle.
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2-14 Solid Waste Rate Setting Policies and Procedures Manual 283
Section 3
Interim Year Rate Setting Process
284
3. Interim Year Rate
Setting Process
This section describes each of the four (4) steps of the interim year rate setting process. Each step includes an overview of the step and a detailed description of the tasks required to complete the step. The section includes four (4) subsections:
A. Step 1 - Prepare and Submit Rate Application
B. Step 2 - Prepare Draft Report and Final Report
C. Step 3 - Receive Approval from City Council and County Boards D. Step 4 - Implement New Rates.
A. Step 1 - Prepare and Submit Rate Application
Responsibility: Franchise hauler
Timing: Completed four (4) months prior to the implementation of the new rates Tasks: a. Prepare an Interim Year Rate Application
b. Submit Application to JPA.
Overview
During this first step, the franchise hauler prepares the Interim Year Rate Application.
Blank application forms are provided in Appendix A (Exhibit A-2). Similar to the base year forms, these forms identify all areas to be completed with double outlined boxes. If data are to be entered in the form, the box has no shading. If a calculation is required, the box has light shading.
a. Prepare an Interim Year Rate Application
1. Report Changes in Landfill Disposal Costs. The first task is to provide prior year landfill disposal costs. Prior year landfill tipping fees per ton should be entered on line 1. Prior year landfill tonnage should be entered on line 2. The values entered on lines 1 and 2 should then be multiplied together and entered on line 3.
The franchise hauler estimates what landfill tipping fees and landfill tonnage will be for the next interim year. Projected interim year landfill tipping fees, per ton, are entered on line 4, and projected interim year landfill tonnage is entered on line 5.
The values entered on lines 4 and 5 then are multiplied together and entered on line 6.
The percent change in landfill disposal costs is determined as follows:
line 6 - line 3
line 3.
The result of this equation, rounded to the nearest one decimal place, is entered on line 7.
285
2. Explain Changes in Landfill Disposal
Costs. Any changes in either landfill tipping
fees or tonnage should be fully explained
in this task. For example, if a landfill closes
and the franchise hauler begins using a new
landfill with higher tipping fees, this
information should be disclosed.
Documents which suppon or further explain
any change in costs are provided, as
appropriate. This might include formal
announcements of tipping fee increases
provided by the landfill operator, which will
be paid directly by the franchise hauler.
3. Certify Application. An authorized
representative from the franchise hauler
should sign and date the application.
This signature provides certification by
the franchise hauler that the application
is complete, accurate, and consistent with
the instructions provided in this manual.
At this point, the application should be
complete. The application is submitted
to the JPA for review and calculation of
the rate change, as described in the
following subsection.
b. Submit Application to JPA
The completed application is sent to the JPA
for review and calculation of new rates. The
franchise hauler's application does not include
any new rates; these are determined by the JPA
during Step 2.
B. Step 2 - Prepare Draft Report
and Final Report
Responsibility: JPA
Timing: Completed within two (2) months
of receiving a completed Interim Year
Rate Application
Tasks: a. Identify Consumer Price Index
b. Complete Interim Year Rate Change
Worksheet and Determine New Rates
c. Request Additional Data and
Clarification, if Necessary
cl. Prepare Draft Report
e. Receive Comments from
Franchise Hauler
f. Prepare Final Report.
Overview
The Interim Year Rate Change Worksheet is
used to calculate new interim year rates. This
document is prepared by the JPA after the
franchise hauler has submitted an Interim Year
Rate Application. Interim year rate changes .are
based on a weighted increase in operating and
landfill disposal costs. Inflators for this process
include changes in the Consumer Price Index
(Garbage and Trash Collection CPI) and changes
in landfill disposal costs (documented by the
franchise hauler in the Interim Year Rate
Application). Exhibit A-3 in Appendix A
includes a sample of the two-page worksheet to
be completed by JPA staff.
a. Identify Consumer Price Index
The annual change in the U.S. City Average,
Garbage and Trash Collection, Consumer Price
Index (CPI) provides the single largest factor for
determining new rates during interim years.
Eighty-five (85) percent of the actual change in this
index during the twelve months prior to the date
the Interim Year Rate Application is submitted
to the JPA is used for the actual change in the
methodology. Because a projected change in the
3-2 Solid Waste Rate Setting Policies and Procedures Manual 286
CPI is not produced, eighty five (85) percent of the
actual change in CPI for the prior twelve months is
used as the CPI for the interim year. The period
used by the J PA and franchise hauler will be June
to June. This information is available from the
United Scates Department of Labor, Bureau of
Labor Statistics.
b. Complete Interim Year Rate Change
Worksheet and Determine New Rates
JPA staff prepares the Interim Year Rate
Change Worksheet and calculates new rates during
this task. This worksheet requires information
from the most recent Base Year Rate Application
and the current Interim Year Rate Application.
This worksheet also requires the U.S. City Average
Garbage and Trash Collection CPI information
collected in task a. The worksheet is used to
calculate the new rate change.
1. Identify Prior Base Year Operating Costs
(Other Than Landfill Disposal). Operating
costs, excluding landfill disposal costs, are
those items which can be reasonably
managed by the franchise hauler in order to
minimize future rate increases. Changes in
these costs should approximate the change
in the U.S. City Average Garbage and Trash
Collection CPI.
In order to streamline the interim year
process, operating costs are adjusted based
on an annual change in the CPI instead of
projected changes in each cost item. This
eliminates the need to conduct a derailed
review of the franchise hauler's audited
financial statements.
Landfill disposal costs are included in total
allowable costs (line 1). Because of chis, landfill
disposal costs must be deducted to determine
total operating costs (ocher than landfill
disposal) in the base year (line 1 plus line 2
plus line 3 minus line 4). This total then is
entered on line 5 of the worksheet and is used
to calculate the weighted change in operating
costs (ocher than landfill disposal).
2. Identify Prior Base Year Landfill Disposal
Costs. Landfill disposal coses are chose items
over which the franchise hauler has liccle or
no control. Adjustments to landfill disposal
costs during an interim year are based on the
franchise hauler's projections, not projected
changes in the CPI. Total landfill disposal
costs in the prior base year must be
calculated to determine the weighting of
operating costs to landfill disposal coses.
Landfill disposal coses from the base year are
entered in line 6.
3. Calculate Weightings. Total operating costs
(other than landfill disposal) (line 5) plus
total landfill disposal costs (line 6) equals the
total base year revenue requirement. This
total is entered on line 7 of the worksheet.
A weighting for both operating costs (other
than landfill disposal) and landfill disposal
costs is calculated as follows:
Operating Costs
(Other Than Landfill Disposal):
Divided by
Total operating costs (Line 5)
Base year revenue
requirement (Line 7)
Equals Operating costs (other than
landfill disposal), as a percentage of
base year revenue requirement.
This percentage figure is entered on line 5,
column 2, and line 17.
Landfill Disposal Costs:
T oral landfill disposal costs (Line 6)
Divided by Base year revenue
requirement (Line 7)
Equals Landfill disposal costs, as a percentage
of base year revenue requirement.
This percentage figure is entered on line 6,
column 2, and line 20.
4. Calculate Projected Change in Consumer
Price Index. The percent change in the
prior year June to June U.S. City Average
Garbage and Trash Collection, CPI is entered
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287
on line 8. This change in CPI then is adjusted
by multiplying the figure on line 8 by 85
percent and the result entered on line 9.
This adjusted projection of the change in CPI
also is entered on line 18 of the worksheet.
5. Enter Landfill Disposal Cost Information
from Application. The figures on lines 1
through 7 of the application (actual and
projected landfill disposal costs) are entered
in lines 10 though 16, respectively, of the
worksheet. Any significant changes in these
costs are documented by the franchise
hauler. A significant change would be any
increase greater than the change in the CPI,
or a decrease of any amount. If a significant
change has not been adequately explained,
additional information is requested from the
franchise hauler.
6. Review Mathematical Accuracy. The
mathematical accuracy of the franchise
hauler's totals for T oral Prior Year Landfill
Disposal Costs (line 12), and Total Projected
Interim Year Landfill Disposal Costs (line
15) are checked during this task. The percent
change in landfill disposal costs should be
calculated as follows:
line 15 - line 12
line 12.
After the percentage change in landfill
disposal costs has been verified, this figure is
entered in lines 16 and 21 of the worksheet.
7. Calculate Weighted Change in Operating
Costs (Other Than Landfill Disposal).
Figures should have been entered on line 17,
operating costs (other than landfill disposal) as
a percent of base year revenue requirements,
and line 18, the adjusted projected change in
CPI, based on calculations completed in
previous tasks. To obtain the weighted change
in operating costs (other than landfill disposal),
line 17 is multiplied by line 18 and the result
entered on line 19.
8. Calculate Weighted Change in Landfill
Disposal Costs. Line 20, landfill disposal
costs, as a percent of base year revenue
requirements, and line 21, projected change
in landfill disposal costs, should now have
an entry based on calculations completed
in previous tasks. To obtain the weighted
change in landfill disposal costs, line 20 is
multiplied by line 21 and the result entered
on line 22.
9. Calculate Total Change in Cost. To
calculate the total percentage change in costs,
line 19, the weighted change in operating
costs (other than landfill disposal), is added
to line 22, the weighted change in landfill
disposal costs, and the result entered on lines
23 and 26, total percent change in costs.
10. Calculate Franchise Fee Adjustment. In
order to account for changes in the franchise
fee resulting from a change in rates, an
adjustment is made to the percentage change
in total costs which was entered on lines 23
and 26. The adjustment factor is equal to
one minus the franchise fee (1.00 - __ =
__ ).These values should be entered on
lines 24 and 27.
11. Calculate Percent Change in Existing Rates.
The final task in this step is to calculate the
percent changes in existing rates. To determine
these changes, line 23 (total percent change
in costs) is divided by line 24 (franchise fee
adjustment), line 26 (total percent change
in costs) is divided by line 27 (franchise fee
adjustment), and the results are entered on
lines 25 and 28. The values on lines 25 and 28
should be greater than the value on lines 23
and 26. The difference accounts for the
change in franchise fees.
12. Enter Rate Change. The rate change
identified in lines 25 and 28 should be
entered on Page l , line 1 of the worksheet.
13. Calculate New Residential Rates. Current
jurisdiction-specific rates for residential solid
waste collection are entered in column one
on page 1. The new rates (in column three)
then are calculated by multiplying the current
rate by one plus the percentage rate change
identified on line 1. The rate adjustment (or
the difference between the rate in column one
and the rate in column three) is entered in
column two.
3-4 Solid Waste Rate Setting Policies and Procedures Manual 288
To verify new rates, column one, lines 2
through 4, should be added to column two
and the result should equal the rate in
column three. This third column provides
the new schedule of residential rates.
The JPA should separately calculate new
commercial rates using the percentage
change in rates.
c. Request Additional Data, and
Clarification, if Necessary
If necessary, JPA staff requests clarification
and/or additional data from the franchise hauler.
The request is to clarify the franchise hauler's
assumptions for projected changes in landfill disposal
costs and to indicate the expected change in rates.
d. Prepare Draft Report
The JPA staff prepares a high level draft report
with recommendations of new rates for JPA
Board consideration. This report should be brief
and include the following sections:
• Executive Summary. This is a summary
of the review process and includes a chart
showing current and proposed rates, and
the recommended rate change.
• Background. This section of the report
provides a brief overview of the rate
change process and discussion of any
significant historical issues.
• Analysis and Discussion oflssues. This
section includes a review of the analysis
work completed by JPA staff. This section
also includes a discussion of any significant
changes in landfill disposal costs and an
identification of the change in CPI
assumed by the JPA.
• Recommendation. The JPA staff presents
its recommendation regarding any change
in rates in this section.
• Attachments. Attachments to the report
would include:
D Rate application
D Revised rate schedule(s)
D Interim Year Rate Change Worksheet.
After the draft report and recommendations
have been prepared, the document should be
submitted to the franchise hauler for comment
and review.
e. Receive Comments from
Franchise Hauler
The franchise hauler reviews the draft report
to ensure that any calculations and analyses
completed by JPA staff are fair, reasonable, and
justified. The franchise hauler reviews the draft
report to ensure the following:
• Correct data are included
• JPA staff analysis is accurate and fair
• Rate changes are reasonable and acceptable.
If any issues are identified during this step,
the franchise hauler works with JPA staff to fully
explore and resolve these outstanding issues.
A written response to the draft report is then
prepared. The response may cover one or more
of the following topics:
• Data discrepancies in any of the areas
noted in the prior task
• Clarification for the JPA or alternative
analysis of the application
• Responses to the JPA's request for
additional information.
f. Prepare Final Report
The JPA prepares the Final Report incorporating
comments from the franchise hauler, as
appropriate. Any comments or issues raised during
the franchise hauler's review of the draft report are
addressed. If necessary, representatives from the
JPA and the franchise hauler should meet to resolve
issues. The report should reflect final solutions to
outstanding issues.
3-5
289
After final comments from the franchise hauler
have been considered, the JPA prepares the Final
Report. The JPA should submit a copy of the
Final Report to the franchise hauler.
C. Step 3 - Receive Approval from
City Council and County Boards
Responsibility: City and Counties
Timing: Completed one month prior to
expected implementation of new rates
Tasks: a. Distribute Final Report to City
and Counties
b. Obtain City and County Approvals.
Overview
During this step, the respective cities and
counties within the JPA present the Final Report
for review and approval by their respective city
council and boards.
a. Distribute Final Report
to City and Counties
In this task, the Final Report is provided to the
City of South Lake Tahoe, El Dorado County,
and Douglas County for review and approval.
The report is included as an agenda item for
consideration at a regular public meeting. The
clerk for each applicable jurisdiction should follow
applicable public noticing requirements so affected
customers can participate at the public meetings.
b Obt· in City and ( ounty Approv·tls
The City of South Lake Tahoe City Council,
the El Dorado County Board of Supervisors, and
the Douglas County Board of Commissioners
review the report and recommended rate
changes. If the rate changes are approved, they
are implemented. If the rate changes are not,
deficiencies are noted, and the report is returned
to the JPA. Step 3 is then repeated. '
D. Step 4- Implement New Rates
Responsibility: Franchise hauler
Timing: Conducted following the approval
of the new rates by the City Council
or County Boards
Tasks: a. Implement Rate Change.
Overview
After new rates have been approved by City
Council and County Boards, the final step in the
process is to implement the new rates.
a. Implement Rate Change
During this final task, the franchise hauler
enters the new rates into their billing system and
includes the new rates on the next appropriate
customer invoice. If a rate change occurs during
the middle of a billing cycle, unbilled or
overbilled amounts are calculated and included in
the next billing cycle.
' Douglas County's rates are subject to a voter-passed initiative that requires the approval of the voters if the rate will increase by ten percent or more. The rate adjustments provided for in this manual are therefore subject to the Douglas County Code and Douglas County will not be in violation of its agreement with STR if a rate adjustment is not approved because it fails to obtain the required voter approval.
3-6 Solid Waste Rate Setting Policies and Procedures Manual 290
Appendix A
Blank Forms and Worksheets
291
Appendix A
Blank Forms and Worksheets
Exhibits A-1 through A-4, on the following pages, include blank base year rate application forms, interim year rate application forms, interim year rate change worksheets, and Consumer Price Index (CPI) percent change calculation example.
This appendix is organized as follows:
• Exhibit A-1 - Base Year Rate Application
• Exhibit A-2 - Interim Year Rate Application
• Exhibit A-3 - Interim Year Rate Change Worksheet.
• Exhibit A-4 - Consumer Price Index (CPI) Percent Change Calculation Example. 292
Exhibit A-1
Sample Bose Year Rote Application
Base Year Rate Application
Summary
1. Rate Ch:snq<'
Percent Rate Change Requested (City of South Lake Tahoe and Douglas County) Percent Rate Change Requested (El Dorado County)
Ram Schedule
(per a.mlomer, per morth) Current Ram Ram AdJU!!!!!Ont New Rate 2 Crty of Sou1h Lake Tahoe
2 1 Unlimil8d M<Vic:e
2.2 Mandabld pockup pet' 321111llon can/bag
2.3 Mandabld ptekup per cubic yard
2 4 Ouaified •nor ram
2 5 HouM •rvice • I can
26. HouseMrvice · 2cana
2 7 House service ~ 3 cans
2.8 Residential · Al other aerv!Cff
3 Oouglas Courrty
3. 1 I , 3211111on can
3 2 2. 321111lon cans
3.3 3, 321111lon cans
3.4 4, 321111lon cans
3 5 One exn 321111lon ctn (aloo the ... oonal Mrvlc<t rate)
3.11 On-cal 3211111on can biled monthly/01Teara
3. 7 Per aJbtc yard
3, 8 1, "5-galon can
3. 9 2, "5-galon cans
3.10 3, "5-galon cans
3 11 One exn 45-galon can (aloo the Maoorml Mnnce ram)
3 12 On-cal 45-galon can biled monthly/arrears
3. 13 Residenoal · Al otlltr Mrvoces
El Dorado County
s •
•
p 'QE
41 4.2 u--Mandated pockup pet' 32.galon can/bag
4 3 Manctabld ptekup P« cubic yard
4.4 Qualifiedaenornne
4 5 HouM •rvice Pef'Cln
4.6 R-noal · Al otlltr aervoces r I' I' I To tilt best of my knowledge, the data and 1nforma1JOn in 1h1t appficallOn 10 compltm. accurate, and consktent Wllh tilt 1nslruciions provided by the Soulh Lake Tahoe BaS1n Wasm Management Authonty Name nt1o
Date
Fiscal Year:
A-2 Solid Waste Rate Setting Policies and Procedures Manual