City Council Meeting Agenda: 03-11-2025 cc Page 1
Posted: Friday, March 07, 2025
NOTICE AND CALL OF A REGULAR MEETING OF THE
TRINIDAD CITY COUNCIL
The Trinidad City Council will hold a regular meeting on TUESDAY, MARCH 11, 2025, at 6:00 PM
at the Trinidad Town Hall, 409 Trinity Street, Trinidad, CA.
NO CLOSED SESSION
For your convenience, this meeting will also be held via videoconference, hosted on the Zoom platform. Learn more about Zoom here: https://zoom.us
PUBLIC COMMENT: Public comment may be submitted via email in advance of the meeting, or in an orderly process during the meeting. If you do not have access to email and you would like to provide a written statement, please deliver your comments to 409 Trinity Street, Trinidad CA, by 2:00pm on the meeting day, or email to [email protected] HOW TO PARTICIPATE: You are invited to participate in person at the Trinidad Town Hall, or by Zoom. The City will publish a direct link to the Zoom teleconference, along with the participant code, on the City Calendar page online at http://trinidad.ca.gov/calendar
To phone in, dial 1-888-278-0296, Conference Code: 685171 Meeting ID: 837 7292 0005 Passcode: 410530 PLEASE NOTE that live meeting logistics will be prioritized. Connectivity issues on the part of the City may result in the meeting being delayed or rescheduled but technical challenges experienced by individuals will not interrupt or halt progress of the meeting.
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION
IV. RECONVENE TO OPEN SESSION
V. APPROVAL OF AGENDA
VI. APPROVAL OF MINUTES – 02-11-2025 cc
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
VIII. STAFF REPORTS – City Manager & Humboldt County Sheriff Dept.
IX. ITEMS FROM THE FLOOR
At this time, members of the public may comment on items NOT appearing on the agenda. Individual comments will be limited to 3 minutes or less. Please direct your comments to the Council as a whole, maintain decorum and avoid personal attacks on staff, members of the Council and/or other members of the public. Council and staff responses will be minimal for non-agenda items.
X. CONSENT AGENDA
All matters on the Consent Agenda are considered routine by the City Council and are enacted in one motion. There is no separate discussion of any of these items. If discussion is requested by any Council member, that item is removed from the Consent Calendar and considered separately. A single opportunity for public comment on the Consent Agenda is available to the public.
1. Staff Activity Report – January 2025
2. Financial Statements – January 2025
City Council Meeting Agenda: 03-11-2025 cc Page 2
3. Law Enforcement Report – February 2025.
4. Ocean Protection Council SB1 Grant Funding for Axel Lindgren Memorial Trail Coastal Access.
5. MOA between the City of Trinidad and Cher-Ae Heights Indian Community of the Trinidad Rancheria granting permission to include City roads on its National Tribal Transportation Facility Inventory (NTTFI).
DISCUSSION/ACTION AGENDA ITEMS
1. Discussion/Decision regarding Revised MOU Between the City of Trinidad and the Westhaven Community Services District regarding the Water System Intertie Project.
2. Discussion/Decision to Accept FY2022-2023 Audit.
3. Mid-Year FY 2024-25 Budget Update and Discussion/Decision to approve Budget Amendments; a. $60,000 for Town Hall Windows, Front Porch, and Rot repair. b. $25,000 For Classification and Compensation Study.
X. FUTURE AGENDA ITEMS
XI. ADJOURNMENT
APPROVAL OF MINUTES FOR:
FEBRUARY 11, 2025 CC2
Supporting Documentation follows with: 8 PAGES
02-11-2025 City Council Meeting Minutes Page 1
MINUTES OF THE REGULAR MEETING OF THE TRINIDAD CITY COUNCIL TUESDAY, FEBRUARY 11, 2025 (LIVE/HYBRID)
I. CALL TO ORDER
Mayor Kelly called the live-hybrid meeting to order at 6:00pm. Council members in attendance: Kelly, Tuttle, Breckenridge, Varela, Kenny. City Staff in attendance: City Manager Joe Tagliaboschi, City Clerk Gabriel Adams, Deputy Clerk Anton Souza, Grant Director Becky Price-Hall, Grant Administrator Angela Cather, City Engineer Josh Wolf, City Attorney Russ Gans. Approximately (6) participants were present by videoconference, and (14) were present live at the beginning of the meeting.
II. PLEDGE OF ALLEGIANCE
III. CLOSED SESSION
1. Conference with Legal Counsel – Existing Litigation (Calif. Gov. Code Section 54956.9(d)(1)) (1 Case: City of Trinidad vs. Tsurai Ancestral Society, et. al, Humb. Co. Sup. Court Case No. 180684 IV. RECONVENE TO OPEN SESSION
No reportable action taken in closed session.
V. APPROVAL OF THE AGENDA
Motion (Breckenridge/Kelly) to approve the agenda as submitted. Passed unanimously.
VI. APPROVAL OF MINUTES – 01-14-2024 cc
Motion (Varela/Breckenridge) to approve the minutes as submitted. Passed unanimously.
VII. COUNCIL REPORTS/COMMITTEE ASSIGNMENTS
Tuttle: Nothing to report.
Breckenridge: Announced upcoming Animal Advisory meeting.
Varela: Nothing to report.
Kenny: Attending HCAOG meeting. Elected Chair, Vice Chair.
Kelly: Attended RREDC and LAFCO meetings. Update on CERT shoe drive and upcoming County-wide CERT/Rotary Mardi Gras event.
VIII.STAFF REPORTS – City Manager & Law Enforcement
City Manager Tagliaboschi highlighted accomplishments summarized in the staff report included in the meeting packet, including; Staff attended Tsurai Management Team meeting discussion regarding short and long-term opening of the ALM Trail. Tank and Pipeline project preparing for city-wide shut-down planned for February 18 to bring the new tank online. MOU with WCSD for Intertie is being revised and will return to the Council for review in March. Public Works attended GIS training. Civic Club Valentine event at Town Hall.
Clam Beach Run was a success. Coleman Engineering invoice for Chief Water Plant Operator services was approximately $13,200.
Resident Andrew Davis asked how water customers would know when water service was restored after the outage on February 18. City Manager Tagliaboschi recommended turning a faucet on.
HCSO Lt. McCall was unable to attend tonight and report on January stats.
IX. ITEMS FROM THE FLOOR – NO ITEMS PRESENTED
(Three (3) minute limit per Speaker unless Council approves request for extended time.) Andrew Davis - Trinidad
Regarding the bus survey that was sent out. I responded. Concerned with increased frequency. Considering the impacts of the bus moving through town every 15 minutes if that’s what they’re planning to do. 02-11-2025 City Council Meeting Minutes Page 2
Councilmember Jack Tuttle noted bus service rotates through town approximately once every three hours or so (not every 15 minutes).
Also, how’s the security guard situation going? I was curious if they could give us an update and if we still feel confident that this is a good expense of city funds. I don’t have an opinion.
Mayor Kelly noted it would be good to have PCS give the Council an activity update, and there has been a lot of community support for their service.
Tyler James – Trinidad
The Trinidad Bay B&B is facing foreclosure. We have faced so many challenges over the years and it’s sad to face this.
Mary Klein – Trinidad
I walk the entire town every day. Crossing Trinity Street at West is the most dangerous.
Richard Johnson – Trinidad area (on Zoom)
I was unable to hear the public speakers due to sound issues. Streetlight at the Library in Saunders Park is not operating, which is a safety issue. It may be useful to have a public discussion on annexation soon. I’m not necessarily advocating for it, but it would be good to understand the process and advantages/disadvantages.
Mayor Kelly noted LAFCO will be presenting information to the Council within the next several months.
Ana Davis – Trinidad
A sinkhole was reported off a bluff trail west of Underwood. Concerned with slides on Van Wycke and relevant conversations to turn Edwards and Hector into one-way traffic due to erosion. The community should be involved in those discussions.
Janine Volkmar – Trinidad area resident
It’s helpful to introduce themselves when speaking at the podium.
X. CONSENT AGENDA
1. Staff Activity Report – December 2024
2. Financial Statements – December 2024
3. Law Enforcement Report – January 2025.
4. Approval of GHD Task Order for STIP Funded Main Street Road Rehabilitation Project.
5. Discussion/Update on Ocean Protection Council SB1 Sea Level Rise Grant Funding Proposal for Axel Lindgren Trail Coastal Access.
Public comments:
Andrew Davis – Trinidad
Regarding item 4, another street-related item. What is the process for determining GHD to be selected for the project? Was it bid competitively? In light of the next conversation tonight (HSIP), all contracts should be paused with them. There’s a strong difference of opinion in the town with the level of safety needed, and GHD is not the best representative to do that. In my opinion they are using professional judgment that is too cautious.
City Manager Tagliaboschi defended GHD, noting they are the City’s on-call contractor for street related matters. In terms of design engineering and principals, GHD is following the professional practices they are credentialed by the State of CA to perform. In my 20 years of experience in public works, their design is what would be expected with any engineering firm. We could be take a better approach making decisions with the community moving forward, but it’s not likely we’ll get a different engineering outcome.
Breckenridge: Pointed out a cultural or aesthetic sensibility difference with GHD but see no technical reasons another company could do better, and for that reason I support number 4 as proposed.
Motion (Kenny/Breckenridge) to approve the consent agenda as submitted. Passed unanimously. 02-11-2025 City Council Meeting Minutes Page 3
XI. DISCUSSION/ACTION AGENDA ITEMS
1. Proclamation 2025-01; Acknowledging Public Service of Former City Manager Eli Naffah.
Mayor Kelly read the proclamation aloud. Naffah thanked the Council for the honor, noting Trinidad was his favorite City to serve. Passed unanimously.
2. Continued Discussion/Decision regarding Cycle 10 HSIP Project – Review of Pedestrian Safety Improvements.
City Engineer Josh Wolf explained that Trinidad has been actively working for over a decade on various transportation and safety improvement projects to enhance pedestrian and bicycle connectivity, as well as overall road safety. A significant focus has been on the pedestrian safety and connectivity improvements on Edwards Street which include the installation of new marked crosswalks with enhanced signage and Rectangular Rapid Flashing Beacons (RRFBs) to improve visibility and driver awareness. These enhancements aim to provide a safer crossing for pedestrians, particularly vulnerable users such as school children.
However, the Hector Street crosswalk has faced recent public concern over the visual impact of the crosswalk sign system on the coastal viewshed. Some residents have expressed that the sign systems are unsightly and obstruct the coastal views, arguing that the public safety benefits do not outweigh the viewshed impacts. In response, the City staff have been working to identify potential options to minimize the visual impact while maintaining the original design intent.
A comprehensive report is included in the meeting packet providing a summary of previous City efforts over the past 10+ years to improve pedestrian safety and connectivity on Edwards Street which ultimately resulted in the crosswalks enhancements that were recently installed.
Wolf presented information starting with the Project History beginning with the 2010 failure of the Van Wycke Trail and funding opportunities secured for various safety improvements in town. HSIP Pedestrian Crossing Enhancements were described in detail for Edwards and Hector, with an overview of the RRFB’s and why and where they are installed. A map was presented showing the significance of Edwards and Hector as the City’s only non-motorized, uncontrolled pedestrian crossing between upper Trinidad and the Harbor area.
Wolf summarized public feedback has been received in support and against the crosswalk signs installed.
Support included:
• Appreciation of the sign systems and safety enhancements, especially for more vulnerable users such as children and those with disabilities.
• Observed a noticeable increase in driver yielding to pedestrians at crosswalks. • Signs show visitors where to safely cross Edwards and reminds motorists to slow down, keep their eyes on the road, and be vigilant for pedestrians.
Against included:
• Sign systems overdesigned and not necessary; no history of accidents on Edwards Street. • Signs unsightly, contrary to the fishing village “vibe” and obstruct/degrade coastal views. • Signs do not conform to City’s sign ordinance or General Plan. • Public was not made aware of the sign installation in advance.
Potential options to address concerns include:
Option 1: Replace sign panels with smaller size panels, and extend the red curb paint at the intersection with Hector Street to 20 ft, as per CA law. Estimated cost $5000.
Option 2: Lower sign on bluff side and relocate sign on Hector Street Corner. Estimated cost $3,000 to lower the signs; $15,000 to move sign with push button post.
Option 3: Replace solar panel and control cabinet. Estimated cost $10,000.
Combined options 1-3 cost would be approximately $33,000. Several figures were shared to illustrate how the changes would appear.
Wolf clearly stated it is not recommended, nor advised, to remove the RRFB enhancements and retain only the pedestrian and arrow signs, or removing the entire systems. 02-11-2025 City Council Meeting Minutes Page 4
Breckenridge: Did we research the cost of in-road LED lighting? Wolf apologized for not researching that option, but stated the signage would be required with in-road systems.
Tuttle: How much would cost to remove all the signs and relocate them later to more appropriate locations? Wolf estimated $5-10k.
Varela: Would it be an option to put in plastic bollards in the center of the roadway? Wolf noted the School has bulb-outs at the crosswalk. Hector does not have them, and the concern would be drivers using the shoulder to avoid them.
Kelly: I’ve read all the comments. Frustrated with the amount of time and energy spent on this in response to public safety. These signs on Edwards, in real life, don’t fit visually with the scenery. I hear from the School that they appreciate the crosswalks. One option is to re-size temporarily and re-visit in 6-9 months. The other is to remove the Hector crosswalk and leave the one at Galindo, re-sized.
Kenny: I did some extensive research and found information on the U.S. Dept of Transportation’s website warning that overuse may diminish their effectiveness. Wolf noted he referenced this in the staff report included in the packet.
Did putting a sidewalk on Edwards to Hector create a dangerous, unmarked pedestrian crossing there? Wolf stated it was not as safe as it is today.
Would GHD be interested in giving a different engineering opinion stating the flashing signs were unnecessary due to lack of accident history, distances, etc.? Wolf stated he conferred with several colleagues who supported the design. This was a long-time project where funding was awarded based on justification of the improvements needed. To walk that back now would be a field-day for another engineer challenging the City if it were involved in a lawsuit. It would be an entirely different situation had it never been approved. I cannot take liability for backing off on something we spent so long recommending. I am bound by the professional Engineer’s Act. I have a degree of ethics for the safety of the public.
Breckenridge: Would a sidewalk all the way down Edwards on the north side of the street solve the problem? At some point the sidewalks will go in, and this may be a good reason to prioritize it.
Kelly: At one point there was significant resistance for sidewalks on Edwards.
Kenny: I read the Local Road Safety Plan. At the end of the executive summary on the front, sign sensitivity in Trinidad was pointed out. It also shows that 2 comments were made about these crosswalks. The accident history from 2016-2021 was described, but nothing was identified for Edwards. The Mayor and I spoke with our insurance carrier, who is very committed to a paper trail leading to any changes made at this point. They would insure the City if another engineer recommends an alternative. They don’t want to push the boundaries, however, and would rather stick with conventional interpretations.
Kelly: The Council made a point to move ahead. Thanked Wolf for providing additional information to us.
Public comment included:
Ana Davis – Trinidad
Submitted information in writing. When the discussion about temporary speed humps took place, an overwhelming majority of people in town were opposed. The conversation shifted to conducting a traffic study, but no one considered data showing that speed humps rarely slow down motorists. No one acknowledged there no Federal pedestrian crash data below 25 mph. Instead, the former City Manager asked Councilmembers to survey Ocean Avenue and View Street residents, with the majority in favor of the installation. They were installed based on feelings rather than facts, setting a precedent with residents getting to decide on street improvements. I presented a petition signed by several residents opposing the crosswalk enhancements. You rolled out the red carpet for Ocean and View Streets, telling the rest of us that we aren’t welcome to drive down those streets. This is rift in our community that is widening, and the more people I speak with want to know more about why those streets are receiving preferential treatment. Remove the signs, or remove the speed humps.
Children are most often killed in garages, not intersections. There is zero chance of anyone being killed at a 02-11-2025 City Council Meeting Minutes Page 5
pedestrian intersection in Trinidad. Spoke on behalf of other residents, the impacts of the signs, and the issues they caused in the community by being installed.
Jeff Bairey – Trinidad
You are all here serving your community, and I appreciate that. Safety is important, but these signs are too big, tall, flash, and unnecessary. I sent comments by email last week, included in the packet archive. There have been no accidents or near misses on Edwards. There’s no traffic study showing it’s unsafe without the signs.
Design immunity exists for that street whether the sign are up or down. The City won’t get sued if they’re taken down. The signs violate current ordinances, and I want to hear alternatives. 10 letters want the signs removed, 4 supported them. At the last meeting, no one spoke out in favor of leaving them. I am a lawyer. I’ve hired engineers in lawsuits over issues like this with various opinions. We should get a second opinion. We need more information. Simulations shown at the January meeting were referenced to have been presented in March 2023. I could not find them there. You only saw them once in October 2023, and in December the contract was signed. The processes haven’t been followed. Just because we have the votes to take them down doesn’t mean we should. We should find a compromise, but what was presented today doesn’t give us enough negotiating ability.
Andrew Davis – Trinidad
I appreciate the presentation. No options change the issue. I’m a very important stakeholder. Nothing presented changes the issue. Property values are impacted by this project, and were not considered. The process was not followed. The Council made a mistake. It’s odd that people were against sidewalks but the City’s solution was to put up signs. This is more judgement than law. This town is exempted from prohibiting parking within 20ft of intersection. Jaywalking tickets are only issued if you’re causing harm to yourself or someone else. Crosswalks are in the worst possible locations. Most people walk down the north side of Edwards.
Tim Needham – Trinidad
If the crosswalk there before was approved by the Council, does design immunity disappear due to improvements made?
City Attorney Gans explained that exceptions for design immunity are as great as the protections are. The Council must act reasonably in whatever design is approved, even if that involves removal of traffic control devices, they’ll need a record of reasonableness.
Dick Bruce – Trinidad
I’ve lived here 48 years and not recall any serious accidents on Edwards – and certainly no fatalities. During crab season there is a lot of commercial activity. The impetus for safety improvements on Edwards goes back to the elephant in the room. The City not fixing the Van Wycke trail led to this issue. The Van Wycke Trail was and still could be a very safe passage to the harbor. The City has access to $170k for pickleball improvements, but why can’t we use some of that money to fix the trails. Take the flashing lights out of the crosswalk signs. I can only imagine what it’s like living next to those flashing lights. The trail improvements were abandoned due to Caltrans standards imposed on the grant funding.
Breckenridge: If the Van Wycke trail was repaired, you’d still have to cross Edwards Street.
Janine Volkmar – Trinidad area
I stop at every crosswalk, and all my friends laugh at me. People will learn about how to interact with crosswalks. There used to be a sign by the gas station saying “oncoming traffic has the right of way”. Our city attorney at the time said the City could be liable. People make mistakes. The sign of a big person is to acknowledge mistakes.
Eli Naffah – Crescent City
Explained how the speed humps were developed on Ocean and View. The City did not ask residents about signage.
Council comments included:
Kenny: Thanked everyone for contributing to the discussion. After listening to everything, I feel like it would have been better to have increased outreach to Edwards Street residents on this project. Signs are heavily 02-11-2025 City Council Meeting Minutes Page 6
regulated in our ordinances, along with views of the Harbor. We can have the crosswalk without the signs, but we can’t remove them without another engineering opinion supporting it. We should consult with another engineer, with a limited budget of $5k, to see if a different conclusion can be reached. The City insurer will require this to provide coverage if there’s an incident.
Tuttle: The City doesn’t need these signs to keep us safe. I walk down the street all the time. I propose removing all 4 signs and create an advisory committee to develop a solution to meet our unique City’s needs.
City Attorney Gans noted that government code states that if you act with reasonableness with a factual basis and evidentiary record, I would endorse what the insurance company agent says and support Kenny’s recommendation.
Breckenridge: Support Kenny’s recommendation but also would like to see the Edwards Street sidewalk concept prioritized.
Varela: Agree with fellow Council recommendations. Signs should come down. Edwards is not safe for children. There is no clear walking path to the beach. Removing signs does not solve the problem. It’s hard to go against the school, but the residents living nearby do not support them. Transportation will change rapidly in the near future, so we need to consider this in our long-term vision for Edwards. I hear about fatalities in Arcata and Eureka all the time, and we shouldn’t assume it will never happen here.
Kelly: I agree with fellow Council. I also would like to hear more alternatives. I’ve heard a lot of opposition, but I have also heard a lot of support for the crosswalk enhancements. I don’t love the signs, but I’d like to hear a second opinion.
Motion (Kenny/Varela) to seek a second opinion on the issue of whether the road can be deemed reasonably safe with the crosswalks, but without the flashing signs, with a budget limit of $7,500. Signs stay up until this is sorted out. Passed unanimously.
Motion (Tuttle/Varela) Authorize the City Manager to negotiate and execute necessary contract amendments with GHD for the HSIP project, up to a maximum amount of $5,000. Passed unanimously.
3. Discussion/Decision regarding Revised Draft MOU Between the City of Trinidad and the Westhaven Community Services District regarding the Water System Intertie Project.
Grant Administrator Angela Cather explained that the Intertie Project (Project), for construction of an emergency intertie connecting the City of Trinidad and Westhaven Community Services District, is funded through the Department of Water Resources (DWR) Multi-Benefit Drought Relief Program. The Project has undergone substantial changes due to design changes and a planning/design budget shortfall. Originally construction was scheduled for the summer of 2023, but CEQA, permitting, and project design are taking longer to complete than anticipated. Last year, the City and City’s engineers (GHD) worked closely with WCSD and WCSD’s engineers (PACE) to prepare a scope change that still met the grant requirements and budget. Due to the delays encountered in the planning/design phase, City staff submitted an amendment request to the funder requesting a scope change, budget adjustment, and time extension which was approved in late December 2024. As the amendment was approved, PACE resumed working on the design in January 2025, and completion of the design has a deadline of mid-April 2025 to remain on the amended (funder approved) schedule.
Since October 7, 2022, the City and WCSD have been working on this project under an Interim Memorandum of Agreement, which now needs to be revisited for finalization. Staff is presenting to the City Council an updated draft “agreement” now titled as a Memorandum of Understanding (MOU). Initially WCSD was to be the project lead for planning, design, and construction, while the City would be the Grant Administrator, and GHD, the Contract City Engineer, would be responsible for review and concurrence of project plans, specifications, and engineering documents or calculations provided for review. Roles and responsibilities have since changed due to budget constraints, so staff recommends the cost sharing portion of the MOU be reviewed and discussed.
Contract City Planner SHN’s responsibilities have not changed. Negotiations between the City and WCSD need to begin this month, so staff recommends Council direct staff to begin negotiations with WCSD. At Council’s discretion, a Council member can be appointed to the negotiation committee; this is not required. The negotiated MOU will come before the Council in March 2025. The MOU also requires that each district 02-11-2025 City Council Meeting Minutes Page 7
designate a subcommittee (minimum of three members) with the power to authorize a declaration of water emergency and to respond to operators in the event of activation of the emergency intertie. Staff recommends the City Manager, Chief Plant Operator, and City Clerk for Trinidad’s committee.
Notable Changes to the MOU:
Roles and Responsibilities: In order to make the project more cost and time efficient, roles and responsibilities have shifted. This has led to the City and City Engineer, GHD, to take on more roles and responsibilities. While roles and responsibilities for each jurisdiction are outlined in the MOU, these will be negotiated between the districts. Some items have been informally negotiated already. Roles and responsibilities are also listed in Exhibit C (items to be negotiated are flagged).
Cost Sharing: The MOU outlines what would happen if the grant budget is exceeded. Originally, Council approved on July 12, 2022, a cost share of a 50%-50% split between districts, however during negotiations WCSD proposed a cost sharing proportionally, as their system is smaller than the Trinidad water system.
WCSD based their apportionment on respective annual water sales, leading the City Council to agree to a
66.66% City: 33.33% District cost share. Staff is seeking to revisit this and is proposing a 50%-50% split.
Additionally, the City has already contributed $15,000 towards the cost overrun in the design phase, with funder approval from another grant project.
There were no public or Council comments.
Motion (Kenny/Kelly) to a) Direct staff to begin negotiations with Westhaven Community Services District, and b) designate a subcommittee with a minimum of three members with the power to authorize a declaration of emergency and to respond to operators in the event of activation of the emergency intertie. Staff recommends Council designate the City Manager, Chief Plant Operator, and City Clerk. Passed unanimously.
4. Discussion/Decision regarding Improvements to Racquet Court Through the Per Capita Grant.
Grant Administrator Angela Cather explained that the California State Department of Parks and Recreation’s Per Capita Program allocated a maximum of $177,952 in grant funding to the City of Trinidad for parks and recreation acquisition and development projects. The City Council adopted Resolution 2019-12 approving application(s) for the Per Capita Grant Fund and directed staff to develop Per Capita application packet(s) for priority eligible project(s). The City’s application for approximately $65,000 for the Racquet Court project was approved to upgrade the tennis court to include pickleball, resurfacing, and other minor improvements.
It should be noted that funding cannot be used for repairs or maintenance but can be used for projects that increase the use of the space by creating new recreational activities (capital outlay projects for recreational purposes). The addition of pickleball will fulfill this requirement. Resurfacing the court and replacement of the net, without including the additional striping for pickleball, would not qualify as those types of improvements are classified as repair and maintenance.
Current Status: Improving the racquet court, to include pickleball, has been a long-desired upgrade by many within the community. Pickleball is currently the fastest growing sport in the United States among people of all ages and abilities. Pickleball is an inclusive sport, so it’s addition to the court would increase its usage to different demographics. While the improvements to the court to include pickleball is desired, and eligible through grant funding, there have been concerns regarding potential noise. The average decibel (dBA) for a pickleball game, measured at 100 feet from the court is 70 dBA, in comparison to tennis which on average registers around 55 dBA.
While the usage of the court, with the addition of pickleball, will likely increase, the hours of operation of the court would not. Lighting to the court is not being added, so all games whether tennis or pickleball would conclude at dusk.
The project is ready to go out to bid this spring, so staff is seeking approval from the City Council to begin the bid process. The project’s completion is weather dependent, so is anticipated for late spring to early summer.
Council questions included:
02-11-2025 City Council Meeting Minutes Page 8
Tuttle: We could require quiet paddles to be used. Signage recommending quiet usage would be great. If we don’t use park funds for the court, can we use it for other projects in the City? Kelly: Instead of adding pickleball lines to both sides of the court, maybe we should only add it to the Trinity Street side of the court to minimize disruption.
Public comment included:
Janine Volkmar – Trinidad area
Read a letter from Trinidad resident Emily May objecting to pickleball.
Dorothy Cox – Trinidad
Live next to the tennis court for 48 years. I’ve been impacted by the noise and events at Town Hall events.
During events the tennis court is used to let kids run free. I put up with the tennis player that brings her barking dogs every day. I read letters about how pickleball will create lines of people to use the court. I’d rather not have to deal with that. Only a few houses on Ocean are impacted by the sounds of Town Hall and the tennis court. Big, fat, no for pickleball for me. I don’t mind tennis, but no pickleball.
Aaron Hakenen – Trinidad (video)
Would be interesting to put some tape down with pickleball lines and do a trial period notifying residents to come out, listen, and provide feedback. It will be hard to undo it after the lines are painted.
Several additional written public comments were received, included in the public meeting packet archive.
Council comments included:
Breckenridge: Since there are many courts around the County for pickleball, I’d rather see the money used elsewhere.
Kelly: I came into this discussion in support of the addition, but now agree with Breckenridge. I wouldn’t enjoy it if I knew I was disturbing someone’s peace.
Kenny: Playing devil’s advocate here, it’s a mixed-use neighborhood. We have dogs barking, fire sirens, and a wide variety of human activity. I’m sympathetic to pickleball players. The loudest sound in our area is the school children. We have to make accommodations for sound. I’m torn. I read all the comments. I’m aware of all the litigation happening in the big cities, where several courts are in play at once. We have one court on half the tennis court and can give it a try. If we don’t like it, we can take down the signs and net.
Grant Director Becky Price-Hall noted that expenses so far that have gone towards this project will not be reimbursable if the project isn’t constructed.
City Clerk Adams summarized how the court resurfacing project ended up in the Per Capita Grant Funding framework, and that the sport’s popularity has increased so much over the years that communities are now able to identify possible impacts that were not well known 5-6 years ago.
Grant Administrator Cather noted the grant funds do not expire for several years.
Motion (Tuttle/Kelly) to continue this discussion to a future meeting after taking steps to perform a trial period (test) after lines are taped down and the public is able to weigh in on their experience/impacts. Passed unanimoulsly.
5. Discussion/Decision regarding Water Advisory Committee Status.
City Manager Tagliaboschi explained that the Water Advisory Committee ( WAC) was stood up during the drought , but not specifically as a drought related purpose.
The May 11, 2021, Resolution Stated the purpose for the WAC as:
1) To evaluate water needs of the city
2) Analyze potential options of water sources and Infrastructure 3) Assist the Council in pursuing water related opportunities including funding. 02-11-2025 City Council Meeting Minutes Page 9
There were also four (4) specific objectives for this WAC to achieve while the committee was active:
1) Provide a public forum to address and discuss water concerns and solutions. 2) Assist the City Manager and Public Works department in addressing water related issues. 3) Make balanced and informed recommendations to the City Council on ways to improve the supply of water. 4) Report regularly to the Council.
On March 9,2021 the Council discussed forming a WAC, Council member Davies proposed “A Water Resiliency Committee be formed to address and plan for improvements to our existing water system that will make our community more resilient to drought.” Ultimately the term “Water Advisory Committee” was chosen as it “seems to have a wide scope that can encompass a broad range of water issues.” There was some discussion as well, in early January 2021 about a “Water Shortage Contingency Plan” so while WAC was not drought specific discussing, planning, and executing methods and programs for drought contingency, and water shortage was at the front of these discussions.
Much has been accomplished since 2021 with water studies and water infrastructure, and an argument can be made that while the stated purpose that formed the WAC are still important, most of the topics and tasks on that list have been addressed with some degree of success. There has been an evolution by Pacific Water Associates of the Luffenhotltz Creek Watershed and the conclusion of the ability of the watershed to deliver enough water for the city needs, even during times of drought, and seasonal dry periods.
The Grants Team secured a grant to construct a new 350K Gallon Stainless Steel Water tank and replaced approx. 7500 liner feet of waterline and a installed a new Pressure Relief Valve Pit on Edwards Street.
This includes new water line from the water treatment plant to the new tank. These water lines were chosen for replacement as they had been identified as the mostly likely to fail, and/or be prone to leaking due to age and pipeline material.
A project with Westhaven Water District is currently underway that will include an intertie between the two water systems. A pump station and waterline that connects both communities in the case of an emergency. This new system will allow for connectivity with Westhaven WSD to provide additional capacity should the need arise in case of water shortage or other emergency needs.
The same claims could be made for obtaining of the objectives of the WAC. The City Council has discussed water in multiple meetings with a variety of topics and the current Council has indicated those discussions will continue. The Council continues to encourage staff to pursue, and support Water and Water Related projects, and grant funding. Reports from WAC meetings were of sparse attendance and some difficulty scheduling meetings that allowed for a WAC quorum.
If Council decides that WAC should be allowed to sunset at this time, there could be future WAC Ad Hoc committee needs, and the committee could be stood up again should the Council agree on that need in the future.
Council comments included:
Kelly: We believe WAC served its purpose. Both Kenny and I served on the committee, and felt most of our topics were long-term strategic and were better handled by the Council. As Chair of the committee, I’m recommending sunsetting it.
Kenny: The drought wasn’t the only reason for the committee, but it was certainly an animating factor. I agree with Kelly that it’s time to sunset the committee. Disbanding the committee doesn’t mean the Council is off the hook from difficult future water discussions.
Public comment included:
Patti Fleschner – Trinidad Area
I think the committee should endure. There was a lot of emotion during the Trinidad Rancheria Hotel water needs discussion. The Trinidad Rancheria has been an important partner in our water district. They’ll go 02-11-2025 City Council Meeting Minutes Page 10
forward with their plans regardless of how the City feels. The committee did a lot of great research and helped relieve the Council of those tasks.
Aaron Hakenen – Trinidad (video)
If you are going to disband the committee, I heard Kelly state there are long-range issues that the Council needs to discuss and I’ll hold you accountable for that. The Council needs to make the time, have the bandwidth, and have the conversations.
Paula Levine – Trinidad area
The tasks were not accomplished. We need an active WAC. The Council needs more community outreach and involvement. My experience is that the City was traumatized by the meetings held discussing Humboldt Bay Water. HARP is still active, but 3-years have passed. I’m hopeful but I won’t be surprised if the Council kicks the can down the road, as it has for decades. The issue of Humboldt Bay Water connection comes up periodically during droughts. It could have been done much more affordably years ago.
Additional Council comments included:
Breckenridge: Makes sense to have the water issues come directly before the Council.
Motion (Kenny/Kelly) to sunset the Water Advisory Committee without prejudice, reinstate it in the future if needed, with the Council fully open to handling long-range planning of the City’s water needs. Passed unanimously.
6. Discussion/Decision to Develop Guidelines or a Formal Policy to Submit Future Agenda Items to the Council for Consideration.
Mayor Kelly explained that the Mayor and Mayor Pro-Tem meet weekly with the City Manager, discuss activity based on input, and prioritize the agenda. If another Councilmember suggests a discussion topic and it doesn’t get prioritized, that member can ask it be put to a formal vote on a future agenda.
Public comment included:
Aaron Hakenen – Trinidad (video)
Are we solving an issue that needs to be solved? The Council represents the City. I want to make sure that citizen comments override a Council’s majority vote. If the majority of residents want to raise a discussion topic but the Council doesn’t, we have an issue.
Council comments included:
Kenny: That goes without saying. Kelly agreed, it would be hard to ignore the public.
Motion (Kenny/Kelly) to adopt that the Mayor and Mayor Pro-Tem meet weekly with the City Manager, discuss activity based on input, and prioritize the agenda. If another Councilmember suggests a discussion topic and it doesn’t get prioritized, the Mayor will note this in the monthly Council report and it be put to a formal vote on the next agenda. Passed unanimously.
FUTURE AGENDA ITEMS
- A/V System improvements (Kelly)
- Annexation (Kelly)
- Emergency Intertie with Rancheria, when they connect with Humboldt Bay Municipal Water. (Tuttle) ADJOURNMENT: 9:55pm.
Submitted by: Approved by:
_____________________________ _____________________________ Gabriel Adams Cheryl Kelly
Trinidad City Clerk Mayor
CONSENT AGENDA ITEM 1
SUPPORTING DOCUMENTATION ATTACHED
1. Staff Activity Report – February 2025
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: City Manager Joe Tagliaboschi
STAFF RECOMMENDATION:
Receive Staff Activities Report from City Manager and Provide Comments. No Council Action Required
DISCUSSION/BACKGROUND
CSA4 meeting
A meeting for CSA4 Fire Services was held on February 25 at Westhaven Fire . the group included Supervisor Madrone and members of County Staff, CalFire, Westhaven fire, Trinidad Fire and Trinidad Rancheria . The initial discussion was about the value and need for a feasibly study fire services for CSA4 , the group agreed there was value in such a study. The group agreed that volunteers are badly needed for Trinidad Volunteer Fire to remain viable. Most of the discussion was on a feasibility fire services study for the CSA4 area. There was agreement on the need for additional and in-depth study.
The group agreed that the one proposal that seemed promising needed some additional work to provide value for the end product and deliverables. The group is meeting at the end of March to work on that document .
Water update
Coleman /Sanbell engineering February Costs XXX.
New interim CPO Eric Sanders on board March 19 .The new agreement for CPO services will be $4,000 a month for essentially the same services as that provided by the Coleman.
Two more staff members are taking Water Treatment ( T2) Operator Exam. They will then need 1000 contact hours to take the T3 exam. There is one staff member who is preparing for T3 in June and will be very close to the required hours to qualify to act as a CPO. Staff is very motivated to gain earn these credentials, and the experience needed to operate our plant as the CPO .We are lucky to have them here for sure! Water Tank and Pipeline
The project is essentially complete. The contractor has de mobilized from the yard here in town. Congrats and well done to city staff who did an amazing job notifying residents and businesses pre water main shut down and water staff who worked day and night to keep the plant providing fresh clean water to all the customers on city water .
Westhaven Intertie Project
Staff received the long-anticipated Plans and Projected Costs to complete from Westhaven Water District. Next Steps are to review the information , approve the M.O.U and try and get the Plans ,Specs and Engineering (PSE) out to bid by mid-April.
Regional Climate Action Plan (RCAP)
City Manager attended the most recent meeting where the discussion was on the data for Vehicle Miles Traveled ( VMT) the discussion will continue with a RCAP to be adopted by the city when work is complete later this year.
Measure Z
This a Grant program funded by a Humboldt County sales tax measure for essential services. City Staff applied for $57,000 for water plant equipment that is needed to repair or replace plant equipment that has failed or is failing . much of this equipment was noted on our annual DWR inspection last year as needing to be repaired prior to this year’s annual Inspection in late May or June. The good news is our funding request made it through the first round and staff should have the final decision on Thursday March 6 after the meeting at The County where the Measure Z committee meets.
STAFF REPORT SUPPLEMENTAL
Date: Tuesday, March 11, 2025
Background Info: The City of Trinidad is responding to the Governor’s Order calling on all Californians to do their part by reducing consumption.
Luffenholtz Creek flow readings are presented to the Council on an as-needed basis - during drought events or when requested. November, December, January, and once again February has delivered abundant amounts of rainfall, providing relief from stress-related drought on the watershed. With this in mind, the focus of these reports (during the wet season) will be to share and put into perspective how Trinidad’s water consumption metrics compare to those of recent years.
The amounts represent the total water sold, captured by 323 customer meters, measured in cubic feet (7.48 gallons = 1 cubic foot).
July 2020 275,612 cuft January 2021 161,379
July 2021 251,168 January 2022 189,201
July 2022 198,081 January 2023 154,543
July 2023 223,806 January 2024 148,407
July 2024 264,491 (21.01% Water Loss) January 2025 131,229 (16.59% Water Loss) August 2020 273,992 February 2021 178,545
August 2021 269,771 February 2022 154,634
August 2022 227,681 February 2023 136,626
August 2023 265,808 February 2024 132,690
August 2024 233,215 (17.85% Water Loss) February 2025 131,537 (20.66% Water Loss) September 2020 302,614 March 2020 164,854
September 2021 227,831 March 2021 187,607
September 2022 216,470 March 2022 184,103
September 2023 200,348 March 2023 152,813
September 2024 200,050 (22.16% Water Loss) March 2024 125,188 (19.75% Water Loss) October 2020 230,430 April 2020 199,450
October 2021 203,176 April 2021 192,287
October 2022 180,065 April 2022 173,115
October 2023 188,335 April 2023 145,504
October 2024 206,875 (21.34% Water Loss) April 2024 176,413 (40.81% Water Loss) November 2020 198,813 May 2020 183,368
November 2021 204,438 May 2021 242,529
November 2022 169,144 May 2022 154,634
November 2023 151,914 May 2023 211,380
November 2024 159,316 (26.54% Water Loss) May 2024 182,738 (14.68% Water Loss) December 2020 185,860 June 2020 240,055
December 2021 201,160 June 2021 269,087
December 2022 170,419 June 2022 233,692
December 2023 122,937 June 2023 209,336
December 2024 159,299 (23% Water Loss) June 2024 229,399 (17.12% Water Loss) Water sold in February hit another historic low consumption rate. Water loss was average-to-high due to several suspected leaks discovered on Scenic Drive shortly after the meters were read the last few days of the month. We will continue to monitor consumption each month and report this information (along with summary trends and analysis) to the Council for review, comparison, and questions at each meeting.
CONSENT AGENDA ITEM 2
SUPPORTING DOCUMENTATION ATTACHED
2. Financial Statements – January 2025
CONSENT AGENDA ITEM 3
SUPPORTING DOCUMENTATION ATTACHED
3. Law Enforcement Report – February 2025.
CONSENT AGENDA ITEM 4
SUPPORTING DOCUMENTATION ATTACHED
4. Ocean Protection Council SB1 Grant Funding for Axel Lindgren Memorial Trail Coastal Access.
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: Angela Cather & Becky Price-Hall, Grants Department AGENDA ITEM: Update on Ocean Protection Council SB 1 Sea Level Rise Grant Funding for Axel Lindgren Memorial Trail Coastal Access.
STAFF RECOMMENDATION: No recommendation or action being requested, as staff is continuing to develop proposals at the Council’s previous direction.
DISCUSSION/BACKGROUND: On November 12, 2024, the City Council directed staff to pursue developing project proposals and/or a Letter of Intent (LOI) for the SB 1 Sea-Level Rise Adaptation Planning Grant Program for funding to implement priority recommendations and projects identified in the recently completed Trinidad Coastal Resilience Action Plan.
Update: City staff has continued to develop a LOI to submit to the Ocean Protection Council (OPC), but it has taken longer than anticipated. Currently, staff requires more time to compose a draft budget. Development of a budget will require further discussion with City Planner, SHN, and City Engineer, GHD, to fully address planning costs, included framing out the site-specific studies that would be needed for the area, which include geotechnical, biological, cultural, coastal wave run up and energy/tidal surge study, etc. Additionally, as this is an implementation project, staff needs additional time to develop a budget for proposed construction cost, as this can vary depending on trail design that will increase resiliency and erosion control.
There is a rolling deadline for submitting a LOI for the SB 1 Grant Program, with the next deadline being in June 2025. Staff will continue to provide Council with updates and a draft LOI for Council’s review and request for approval to submit to OPC.
Updated Timeline (as of March 4, 2025):
Date Description Notes
Oct-Nov 2025 Research opportunity & draft potential
project concepts
Nov. 12,2024 City Council directs staff
Dec. 10, 2024 City Council Update
January - March 2025 Draft detailed scope & budget
Feb. 11, 2025 City Council Update
Feb-April 2025 Draft LOI/proposal details and background materials March 11, 2025 City Council Update
March/April 2025 Final draft LOI/proposal details
TBA Submit LOI to Clerk for Council
Review
TBA Council approves LOI submission to
OPC
May/June Final Staff Review of LOI
June 2025 Submit LOI to OPC
ENVIRONMENTAL REVIEW
Not applicable.
FISCAL IMPACT
• Is there a Fiscal Impact: No, if awarded, the project will be grant funded. The funding range for a SeaLevel Rise Implementation Project is between $1,500,000 - $10,000,000 • Is it Currently Budgeted: Staff effort for grant development is budgeted. The grant projects themselves are not generally included in the general fund budget except the estimated grant payroll allocation. • Where is it Budgeted: Grant Development staff time is budgeted in 201 General Fund Administration • Mandatory or Discretionary: N/A
• Staff Resource Impact: No
ATTACHMENTS
• None
CONSENT AGENDA ITEM 5
SUPPORTING DOCUMENTATION ATTACHED
5. MOA between the City of Trinidad and Cher-Ae Heights Indian Community of the Trinidad Rancheria granting permission to include City roads on its National Tribal Transportation Facility Inventory (NTTFI).
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: City Manager Joe Tagliaboschi
CONSENT AGENDA ITEM TITLE
MOA between the City of Trinidad and Cher-Ae Heights Indian Community of the Trinidad Rancheria granting permission to include City roads on its National Tribal Transportation Facility Inventory (NTTFI).
STAFF RECOMMENDATION:
Accept report and authorize the City Manager to sign the Trinidad Rancheria Streets MOA on behalf of the City.
DISCUSSION/BACKGROUND
The request to acknowledge the roads system that is shared by The Trinidad Rancerhia and the City of Trinidad was provided by the Trinidad Rancheria. Staff recommends a motion to allow the City manager to sign the document and provide the executed document to the Trinidad Rancheria.
ENVIRONMENTAL REVIEW
NA
FISCAL IMPACT
Is there a Fiscal Impact? N/A Is it Currently Budgeted? NA Where is it Budgeted? NA
Is it Mandatory or Discretionary? N/A
Is there a Staff Resource Impact? No
ATTACHMENTS
- Draft MOA between City and Rancheria.
BIA – Pacific Region, DOT
Supervisory Highway Engineer
2800 Cottage Way, Suite W-2820
Sacramento, California 95825
Wednesday, March 12, 2025
Re: MOA for the Cher-Ae Heights Indian Community, J52566 – NTTFI To Whom it May Concern:
The City of Trinidad owns and is responsible for maintenance now and in the future for the roads listed in Attachment A. The City of Trinidad grants permission to the Cher-Ae Heights Indian Community of the Trinidad Rancheria to include these roads on its National Tribal Transportation Facility Inventory (NTTFI). The listed roads provide important access to Cher-Ae Heights Indian Community of the Trinidad Rancheria Tribal Lands. Should funding and Tribal priorities allow, improvements to such roadways can be made through a cooperative process between the Cher-Ae Heights Indian Community of the Trinidad Rancheria and the City of Trinidad. This list does not grant jurisdiction, ownership or any other authority over said roadways to the Tribe. No Improvements would take place unless the City of Trinidad grants permission to do so.
Should you need any further information, please do not hesitate to contact the undersigned.
Sincerely,
Joe Tagliaboschi
City Manager
707-677-3876
P.O. Box 390
Trinidad, CA 95570
[email protected]
ATTACHMENT A
Route Section Route Name Length
(mi) Ownership
0322 10 Seaside Parking 0.1 City
0322 20 Seaside Parking 0.1 City
0323 10 Edwards Street 0.3 City
0509 410 Lighthouse Road 0.2 City
0509 420 Lighthouse Road 0.3 City
0509 430 Lighthouse Road 0.4 City
0509 440 Lighthouse Road 0.1 City
3001 800 Scenic Drive 0.1 City
3001 810 Scenic Drive 0.1 City
HC28 40 Westhaven Drive 0.1 City
ATTACHMENT A
ATTACHMENT A
ATTACHMENT A
ATTACHMENT A
ATTACHMENT A
DISCUSSION AGENDA ITEM 1
SUPPORTING DOCUMENTATION ATTACHED
1. Discussion/Decision regarding Revised MOU Between the City of Trinidad and the Westhaven Community Services District regarding the Water System Intertie Project.
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: Angela Cather & Becky Price-Hall, Grants Department AGENDA ITEM: Discussion/Decision regarding Revised MOU between the City of Trinidad and Westhaven Community Services District regarding the Water System Intertie Project STAFF RECOMMENDATION:
• Approve MOU between the City of Trinidad and Westhaven Community Services District regarding the Water System Intertie Project
DISCUSSION/BACKGROUND: On February 11, 2025, Council directed staff to begin negotiations with Westhaven Community Services District (WCSD) regarding the draft Memorandum of Understanding (MOU), as the City and WCSD have been operating under an Interim Memorandum of Agreement, since October 7, 2022. Staff made multiple attempts to schedule negotiations with WCSD but were unsuccessful. Staff moved forward and updated the MOU to reflect the City’s and WCSD’s responsibilities based on the amended grant budget, approved by the Department of Water Resources, and previous informal discussions with WCSD. The updated MOU (attached) was sent to WCSD’s Chief Plant Operator and Board for comment.
Notable Changes to the MOU:
Roles and Responsibilities: To make the project more cost and time efficient, roles and responsibilities shifted. This has led to the City and City Engineer, GHD, to take on more roles and responsibilities. Roles and responsibilities are also listed in Exhibit C.
City Responsibilities: In addition to the City’s responsibilities of grant administration, agreement management, and invoicing and reporting, the City will also take on the responsibility of construction management, and construction observation.
District Responsibilities: The District’s responsibilities have lessened, as they are no longer responsible for construction management and construction observation. All other responsibilities as previously listed have remained the same.
Cost Sharing: The MOU outlines a cost share of a 50%-50% split between districts. As a reminder, the City has already contributed $15,000 towards the cost overrun in the design phase, with funder approval from another grant project.
Ground Disturbing Activities: It is the City’s common practice that when there is any grading or earthwork activities within project areas that tribally appointed cultural monitor be present. The MOU addresses that this common practice will be followed during the construction phase of the intertie project in all areas of the project area.
Advanced Payment: The remaining Advanced Payment of $417,900.00 for the construction phase of the project, advanced to the District from the Department of Water Resources, will be transferred to the City from the District.
The transfer is to occur because the City will manage the construction contract.
ENVIRONMENTAL REVIEW
Not applicable.
FISCAL IMPACT
• Is there a Fiscal Impact: The MOU spells out responsibilities of City and WCSD, and spells out how cost overruns will be shared. The MOU should reduce the City’s risk and potential fiscal impact since the City is taking on more control of project management.
• Is it Currently Budgeted: Cost overruns are not budgeted. All cost associated with the project to date have been covered by the grant.
• Where is it Budgeted: 607 – Intertie & Tank Projects DWR Grant • Mandatory or Discretionary: N/A
• Staff Resource Impact: No
ATTACHMENTS
• Grant Agreement Between the State of California (Department of Water Resources) and City of Trinidad – Agreement Number 4600014620 Urban and Multibenefit Drought Relief Grant – Amendment 1 (Referenced as Exhibit A in the MOU)
• Exhibit B: City of Trinidad and Westhaven Community Services District Financial Responsibilities • Exhibit C: Intertie Facilities Operations and Maintenance Cost Apportionment • Exhibit D: Trinidad-Westhaven Emergency Intertie – Roles and Responsibilities • Exhibit E: City of Trinidad Water Treatment Plant Assessor’s Parcel Map • Memorandum of Understanding Between the City of Trinidad and Westhaven Community Services District for the Design, California Environmental Quality Act Compliance, Permitting, Construction and Operation of the Trinidad – Westhaven Emergency Intertie Project
• Correspondence from WCSD: “Re: City and WCSD Intertie Project – MOU Negotiations” • WCSD Subcommittee Recommendations for Revisions to Emergency Intertie Memorandum of Understanding
• WCSD’s Requested Revisions – Exhibit C
• WCSD’s Requested Revisions – Exhibit D
GRANT AGREEMENT BETWEEN THE STATE OF CALIFORNIA
(DEPARTMENT OF WATER RESOURCES) AND
CITY OF TRINIDAD
AGREEMENT NUMBER 4600014620
URBAN AND MULTIBENEFIT DROUGHT RELIEF GRANT
Amendment 1
THIS GRANT AGREEMENT is entered into by and between the Department of Water Resources of the State of California, herein referred to as the "State" or “DWR,” and the City of Trinidad, a public agency in the State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee," which parties do hereby agree as follows:
1) PURPOSE. The State shall provide funding from the Budget Act of 2021 (Stats. 2021, ch. 240, § 80) to the Grantee to assist in financing the Project. By executing this Agreement, the Grantee certifies that the purpose of the Project is in response to a drought scenario, as defined by Water Code section 13198(a) and is intended to: (1) address immediate impacts on human health and safety; (2) address immediate impacts on fish and wildlife resources; or, (3) provide water to persons or communities that lose or are threatened with the loss or contamination of water supplies. 2) TERM OF GRANT AGREEMENT. The term of this Grant Agreement begins on March 19, 2022 and ends three (3) years following the final payment unless otherwise terminated or amended as provided in this Grant Agreement. However, all work shall be completed by March 1, 2025 2026 in accordance with the Schedule as set forth in Exhibit C and no funds may be requested after June 1, 2025 March 31, 2026. 3) GRANT AMOUNT. The maximum amount payable by the State under this Grant Agreement shall not exceed $2,000,000. Any additional costs are the responsibility of the Grantee. 4) BASIC CONDITIONS.
A. The State shall have no obligation to disburse money for the Project(s) under this Grant Agreement until the Grantee has satisfied the following conditions (if applicable):
i. The Grantee shall demonstrate compliance with all eligibility criteria as set forth of the 2021 Urban and Multibenefit Drought Relief Grant Program Guidelines and Proposal Solicitation Package (2021 Guidelines).
ii. For the term of this Agreement, the Grantee shall submit Quarterly Progress Reports which must accompany an invoice and all invoice backup documentation. The Quarterly Progress Report shall be submitted within 60 days following the end of the calendar quarter (i.e., reports due May 30, August 29, November 29, and March 1) and all other deliverables as required by Paragraph 12, “Submission of Reports” and Exhibit A, “Work Plan”.
iii. Prior to the commencement of construction or implementation activities, if applicable, the Grantee shall submit the following to the State.
1. Final plans and specifications certified, signed and stamped by a California Registered Civil Engineer (or equivalent registered professional as appropriate) to certify compliance for each approved project as listed in Exhibit A of this Grant Agreement.
2. Work that is subject to the California Environmental Quality Act (CEQA) (including final land purchases) shall not proceed under this Grant Agreement until the following actions are performed:
a) The Grantee submits to the State all applicable environmental permits, as indicated on the Environmental Information Form to the State,
b) Documents that satisfy the CEQA process are received by the State, and Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
Amendment 1
c) The Grantee receives written notification from the State of concurrence with the Lead Agency’s CEQA documents (s) and State’s notice of verification of environmental permit submittal.
The State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, the State will consider the environmental documents and decide whether to continue to fund the project, or to require changes, alterations, or other mitigation. Proceeding with work subject to CEQA prior to the State’s concurrence shall constitute a material breach of this Agreement. The Grantee or Local Project Sponsor (LPS) shall also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act (NEPA) by submitting copies of any environmental documents, including Environmental Impact Statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/ implementation. iv. A monitoring plan as required by Paragraph 14, “Monitoring Plan Requirements,” if applicable. 5) DISBURSEMENT OF FUNDS. The State will disburse to the Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations. Any and all money disbursed to the Grantee under this Grant Agreement shall be deposited in a non-interest bearing account and shall be used solely to pay Eligible Project Costs.
6) ELIGIBLE PROJECT COST. The Grantee shall apply State funds received only to Eligible Project Costs in accordance with applicable provisions of the law and Exhibit B, “Budget”. Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition and associated legal fees, preparation of environmental documentation, environmental mitigations, monitoring, and project construction. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Costs incurred after March 18, 2022 may be eligible for reimbursement.
Costs that are not eligible for reimbursement include, but are not limited to, the following items:
A. Costs, other than those noted above, incurred prior to the award date of this Grant.
B. Costs for preparing and filing a grant application.
C. Operation and maintenance costs, including post construction performance and monitoring costs.
D. Purchase of equipment that is not an integral part of a project.
E. Establishing a reserve fund.
F. Purchase of water supply.
G. Replacement of existing funding sources for ongoing programs.
H. Meals, food items, or refreshments.
I. Payment of any punitive regulatory agency requirement, federal or state taxes.
J. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies, or acquisition of land by eminent domain.
K. Overhead and Indirect Costs. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the funded project (i.e., costs that are not directly related to the funded project). Examples of Indirect Costs Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
Amendment 1
include, but are not limited to: central service costs; general administration of the Grantee or LPSs; non-project-specific accounting and personnel services performed within the Grantee’s or LPS’ organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-project-specific facilities; tuition and conference fees; forums, trainings, and seminars; and, generic overhead or markup. This prohibition applies to the Grantee, LPSs, and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.
L. Mitigation for environmental impacts not resulting from implementation of the Project funded by this program.
7) METHOD OF PAYMENT. After the disbursement requirements in Paragraph 4, “Basic Conditions” are met, the State will disburse the whole or portions of State funding to the Grantee, following receipt from the Grantee of an electronic invoice certified and transmitted via electronic/digital signature system (e.g., DocuSign) or via US mail or Express mail delivery of a “wet signature” for costs incurred, including Local Cost Share, and timely Quarterly Progress Reports as required by Paragraph 12, “Submission of Reports.” Payment will be made no more frequently than monthly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. Quarterly Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e., invoices due May 30, August 29, November 29, and March 1). The State will notify the Grantee, in a timely manner, whenever, upon review of an invoice, the State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to the State. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to the State to cure such deficiency(ies). If the Grantee fails to submit adequate documentation curing the deficiency(ies), the State will adjust the pending invoice by the amount of ineligible or unapproved costs.
Invoices submitted by the Grantee shall include the following information:
A. Costs incurred for work performed in implementing the Project during the period identified in the particular invoice.
B. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for a project during the period identified in the particular invoice for the implementation of a project.
C. Invoices shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoices shall contain the date of the invoice, either the time period covered by the invoice or the invoice date received within the time period covered, and the total amount due. ii. Invoices shall be itemized based on the categories (i.e., tasks) specified in Exhibit B, “Budget.” The amount claimed for salaries/wages/consultant fees shall include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. One set of sufficient evidence (i.e., receipts, copies of checks, personnel hours’ summary table, time sheets) shall be provided for all costs included in the invoice. iv. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 3, “Grant Amount”. v. Original signature and date of the Grantee’s Project Representative. Submit an electronic invoice, certified and transmitted via electronic/digital signature system (e.g., DocuSign), from authorized representative to the Project Manager or the original “wet signature” copy of the invoice form to the Project Manager at the following address: Financial Assistance Branch, DWR, P.O. Box 942836, Sacramento, CA 94236.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
Amendment 1
All invoices submitted shall be accurate and signed under penalty of law. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., cost share). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Standard Condition Paragraph D.5 and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen.
Code, §§ 470, 487-489.)
8) ADVANCED PAYMENT. Water Code section 13198.4(c) authorizes advanced payment by the State for grantees that demonstrate a cash flow issues. A project may receive an advanced payment of twenty-five (25) percent of its grant award; the remaining seventy-five (75) percent of the grant award will be reimbursed in arrears after the advanced funds have been fully expended. Within ninety (90) calendar days of execution of the Grant Agreement, the Grantee may provide the State an Advanced Payment Request. Advanced Payment Requests received ninety-one (91) calendar days after the execution of this Agreement will not be eligible to receive an advanced payment. The Advanced Payment Request shall contain the following:
A. Documentation demonstrating that each LPS (if different from the Grantee, as listed in Exhibit I) was notified about their eligibility to receive an advanced payment and a response from the LPS stating whether it wishes to receive the advanced payment or not.
B. If the Grantee is requesting the advanced payment, the request(s) shall include:
i. Descriptive information of each project with an update on project status ii. Description and documentation of the cash flow issues the LPS has that requires funds to be advanced
iii. The names of the entities that will receive the funding for each project iv. A detailed Funding Plan which includes how the advanced payment will be expended (in terms of workplan, budget, and schedule) within the timeframe agreed upon by DWR and the Grantee. The Funding Plan must clearly identify the total budget (at Budget Category Level) for each project clearly showing the portion of advanced payment and reimbursement funds. v. Any other information that DWR may deem necessary
C. Upon review and approval of the Advanced Payment Request, DWR may authorize payment of the requested amount or a lesser amount for those entities that have requested advanced funds. Based on the project’s Funding Plan and other considerations, DWR may develop a “Disbursement Schedule,” to disburse funds in installments. This Disbursement Schedule may change based on the project’s ongoing compliance with the Advanced Payment requirements and the project’s cash flow needs.
D. Once DWR authorizes the Advanced Payment Request, the Grantee shall submit Advanced Payment Invoice(s) for the initial amount based on the “Disbursement Schedule” on behalf of the LPS(s), containing the request for each project requesting advanced funds, to the State with signature and date of the Grantee’s Project Representative, as indicated in Paragraph 18, “Project Representative.” The Grantee shall be responsible for the timely distribution of the advanced funds to the respective LPS(s). The Advanced Payment Invoice(s) shall be submitted on forms provided by the State and shall meet the following format requirements:
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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i. Invoice shall contain the date of the invoice, the time period covered by the invoice, and the total amount due.
ii. Invoice shall be itemized based on the budget categories specified in Exhibit B, “Budget.” iii. The State Project Manager will notify the Grantee, in a timely manner, when, upon review of an Advance Payment Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). If costs are not consistent with the tasks in Exhibit A, the State will reject the claim and remove them from the Accountability Report. iv. On a quarterly basis, the Grantee will submit an Accountability Report to the State that demonstrates how actual expenditures compare with the scheduled budget. The Accountability Report shall include the following information:
1. An itemization of how advanced funds have been spent to-date (Expenditure Report), including documentation that supports the disbursements (e.g., contractor invoices, receipts, personnel hours, etc.). Accountability Reports shall be itemized based on the budget categories (i.e., tasks) specified in Exhibit B.
2. An updated Accountability Report including an updated Funding Plan that depicts how the remaining advanced funds will be expended and the activities and deliverables associated with the advanced funds within the timeframe agreed upon by DWR and the Grantee when the advanced payment request was approved.
3. Documentation that the funds were placed in a non-interest bearing account, including the dates of deposits and withdrawals from that account.
4.Proof of distribution of advanced funds to LPS(s), if applicable.
E. Once the Grantee has spent all advanced funds in a budget category, then the method of payment will revert to the reimbursement process for that budget category specified in Paragraph 7, “Method of Payment.”
9) WITHHOLDING OF DISBURSEMENTS BY THE STATE. If the State determines that a project is not being implemented in accordance with the provisions of this Grant Agreement, or that the Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction, the State may withhold from the Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests.
Where a portion of the State funding has been disbursed to the Grantee and the State notifies the Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 10, “Default Provisions,” the portion that has been disbursed shall thereafter be repaid immediately at the time the State notifies the Grantee, as directed by the State. The State may consider the Grantee’s refusal to repay the requested disbursed amount a material breach subject to the default provisions in Paragraph 10, “Default Provisions.” If the State notifies the Grantee of its decision to withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either party. 10) DEFAULT PROVISIONS. The Grantee shall be in default under this Grant Agreement if any of the following occur:
A. Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other agreement between the Grantee and the State evidencing or securing the Grantee’s obligations.
B. Making any false warranty, representation, or statement with respect to this Grant Agreement or the application filed to obtain this Grant Agreement.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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C. Failure to operate or maintain the Project in accordance with this Grant Agreement.
D. Failure to make any remittance required by this Grant Agreement, including any remittance recommended as the result of an audit conducted pursuant to Standard Condition Paragraph D.5.
E. Failure to submit quarterly progress reports pursuant to Paragraph 4.
F. Failure to routinely invoice the State pursuant to Paragraph 7.
G. Failure to meet any of the requirements set forth in Paragraph 11, “Continuing Eligibility.” Should an event of default occur, the State shall provide a notice of default to the Grantee and shall give the Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via firstclass mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, the State may do any of the following:
H. Declare the funding be immediately repaid.
I. Terminate any obligation to make future payments to the Grantee.
J. Terminate the Grant Agreement.
K. Take any other action that it deems necessary to protect its interests.
In the event the State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, the Grantee agrees to pay all costs incurred by the State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.
11) CONTINUING ELIGIBILITY. The Grantee shall meet the following ongoing requirement(s) and all eligibility criteria outlined in the 2021 Guidelines to remain eligible to receive State funds:
A. An urban water supplier that receives grant funds pursuant to this Agreement shall maintain compliance with the Urban Water Management Planning Act (UWMP; Wat. Code, § 10610 et seq.) and Sustainable Water Use and Demand Reduction (Wat. Code, § 10608 et seq.) as set forth on page 12 of the 2021 Guidelines and Proposal Solicitation Package.
B. An agricultural water supplier receiving grant funds shall comply with Sustainable Water Use and Demand Reduction requirements outlined in Water Code section 10608, et seq. and have their Agricultural Water Management Plan (AWMP) deemed consistent by DWR. To maintain eligibility and continue funding disbursements, an agricultural water supply shall have their 2021 AWMP identified on the State’s website. For more information, visit the website listed in the 2021 Guidelines and Proposal Solicitation Package.
C. A surface water diverter receiving grant funds shall maintain compliance with diversion reporting requirements as outlined in Water Code section 5100 et. seq.
D. If applicable, the Grantee shall demonstrate compliance with the Sustainable Groundwater Management Act (SGMA) as set forth in the 2021 Guidelines and Proposal Solicitation Package.
E. If the Grantee has been designated as a monitoring entity under the California Statewide Groundwater Elevation Monitoring (CASGEM) Program, the Grantee shall maintain reporting compliance, as required by Water Code section 10932 and the CASGEM Program. Alternatively, if the Grantee has submitted a Groundwater Sustainability Plan (GSP) or Alternative Plan pursuant to the GSP Regulations (Cal. Code Regs., tit. 23, § 350 et seq.), groundwater level data must be submitted through the SGMA Portal at: https://sgma.water.ca.gov/portal/.
F. The Grantee shall adhere to the protocols developed pursuant to The Open and Transparent Water Data Act (Wat. Code, § 12406, et seq.) for data sharing, transparency, documentation, and quality control.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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12) SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to the State. All reports shall be submitted to the State’s Project Manager and shall be submitted via the DWR “Grant Review and Tracking System” (GRanTS). If requested, the Grantee shall promptly provide any additional information deemed necessary by the State for the approval of reports. Reports shall be presented in the formats described in the applicable portion of Exhibit F, “Report Formats and Requirements.” The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State of a Project Completion Report is a requirement for the release of any funds retained for such project.
A. Quarterly Progress Reports: The Grantee shall submit quarterly Progress Reports to meet the State’s requirement for disbursement of funds. Progress Reports shall be uploaded via GRanTS, and the State’s Project Manager notified of upload. Progress Reports shall, in part, provide a brief description of the work performed, the Grantee’s activities, milestones achieved, any accomplishments and any problems encountered in the performance of the work under this Grant Agreement during the reporting period. The first Progress Report must accompany an invoice ($0 Invoices are acceptable) and shall be submitted within 60 days following the end of the calendar quarter (i.e., invoices due May 30, August 29, November 29, and March 1).
B. Accountability Report: The Grantee shall prepare and submit to the State an Accountability Report on a quarterly basis if the Grantee received an advanced payment, consistent with the provisions in Paragraph 8, “Advanced Payment.”
C. Project Completion Report: The Grantee shall prepare and submit to the State a separate Project Completion Report for each project included in Exhibit A. The Grantee shall submit a Project Completion Report (or a Component Completion Report, if a Project has multiple Components) within ninety (90) calendar days of Project/Component completion as outlined in Exhibit F.
D. Grant Completion Report: Upon completion of all the Projects included in Exhibit A, the Grantee shall submit to the State a Grant Completion Report. The Grant Completion Report shall be submitted within ninety (90) calendar days of submitting the Completion Report for the final project to be completed under this Grant Agreement, as outlined in Exhibits A, and F. Retention for any grant administration line items in the Budget of this Grant Agreement will not be disbursed until the Grant Completion Report is approved by the State.
E. Post-Performance Reports: The Grantee shall prepare and submit to the State Post-Performance Reports for the applicable project(s). Post-Performance Reports shall be submitted to the State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the project begins operation.
13) OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects and in consideration of the funding made by the State, the Grantee agrees to ensure or cause to be performed the commencement and continued operation of the project, and shall ensure or cause the project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The State shall not be liable for any cost of such maintenance, management, or operation. The Grantee or their successors may, with the written approval of the State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Grant Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” include ordinary repairs and replacements of a recurring nature necessary for capital assets and Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal by the Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of the State, be considered a breach of this Grant Agreement and may be treated as default under Paragraph 10, “Default Provisions.” 14) MONITORING PLAN REQUIREMENTS. A Monitoring Plan shall be submitted to the State prior to disbursement of State funds for construction or monitoring activities. The Monitoring Plan should incorporate Post-Performance Monitoring Report requirements as defined and listed in Exhibit F, and follow the guidance provided in Exhibit L, “Project Monitoring Plan Guidance.” 15) NOTIFICATION OF STATE. The Grantee shall promptly notify the State, in writing, of the following items:
A. Events or proposed changes that could affect the scope, budget, or work performed under this Grant Agreement. The Grantee agrees that no substantial change in the scope of a project will be undertaken until written notice of the proposed change has been provided to the State and the State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.
B. Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by the State’s representatives. The Grantee shall make such notification at least fourteen (14) calendar days prior to the event.
C. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Grantee agrees that all work in the area of the find shall cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the State has determined what actions should be taken to protect and preserve the resource. The Grantee agrees to implement appropriate actions as directed by the State.
D. The initiation of any litigation or the threat of litigation against the Grantee or an LPS regarding the Project or which may affect the Project in any way.
E. Applicable to construction projects only: Final inspection of the completed work on a project by a Registered Professional (Civil Engineer, Engineering Geologist, or other State approved certified/licensed Professional), in accordance with Exhibit D. The Grantee shall notify the State’s Project Manager of the inspection date at least fourteen (14) calendar days prior to the inspection in order to provide the State the opportunity to participate in the inspection. 16) NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be transmitted by any of the following means:
A. By delivery in person.
B. By certified U.S. mail, return receipt requested, postage prepaid.
C. By “overnight” delivery service; provided that next-business-day delivery is requested by the sender.
D. By electronic means.
E. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U.S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices shall be sent to the addresses listed below. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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17) PERFORMANCE EVALUATION. Upon completion of this Grant Agreement, the Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.
18) PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows:
Department of Water Resources City of Trinidad
Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-6713
Email: [email protected]
Eli Naffah
City Manager
PO Box 390
Trinidad, CA 95570
Phone: (707) 677-3876
Email: [email protected]
Direct all inquiries to the Project Manager:
Department of Water Resources City of Trinidad
Shelby Hoerner
Environmental Scientist
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 326-9980
Email: [email protected]
Angela Cather
Grant Coordinator
PO Box 390
Trinidad, CA 95570
Phone: (707)-499-7659
Email: [email protected]
Either party may change its Project Representative or Project Manager upon written notice to the other party.
19) STANDARD PROVISIONS. This Grant Agreement is complete and is the final Agreement between the parties. The following Exhibits are attached and made a part of this Grant Agreement by this reference:
Exhibit A – Work Plan
Exhibit B – Budget
Exhibit C – Schedule
Exhibit D – Standard Conditions
Exhibit E – Authorizing Resolution
Exhibit F – Report Formats and Requirements
Exhibit G – Requirements for Data Submittal
Exhibit H – State Audit Document Requirements for the Grantee Exhibit I – Local Project Sponsors and Project Locations Exhibit J – Appraisal Specifications
Exhibit K – Information Needed for Escrow Processing and Closure Exhibit L – Project Monitoring Plan Guidance
Exhibit M – Invoice Guidance for Administrative and Overhead Charges Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement.
STATE OF CALIFORNIA
DEPARTMENT OF WATER RESOURCES
CITY OF TRINIDAD
Arthur Hinojosa
Manager, Division of Regional Assistance
S
Eli Naffah
City Manager
Date Date ____________________________
Approved as to Legal Form and Sufficiency
Robin Brewer
Assistant General Counsel,
Office of the General Counsel
Date___________________________
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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EXHIBIT A
WORK PLAN
Grant Administration
IMPLEMENTING AGENCY: City of Trinidad (Grantee)
PROJECT DESCRIPTION: The Grantee will administer these funds and respond to DWR’s reporting and compliance requirements associated with the grant administration. The Grantee will act in a coordination role:
disseminating grant compliance information to the project managers responsible for implementing the projects contained in this agreement, obtaining and retaining evidence of compliance (e.g., CEQA/NEPA documents, reports, monitoring compliance documents, labor requirements, etc.), obtaining data for progress reports from individual project managers, assembling and submitting progress reports to the State, and coordinating all invoicing and payment of invoices.
Budget Category (a): Project Administration
Task 1: Agreement Management
The Grantee will respond to DWR’s reporting and compliance requirements associated with the grant administration and will coordinate with the project managers responsible for implementing the projects contained in this agreement.
Task 2: Invoicing
The Grantee will be responsible for compiling invoices for submittal to DWR. This includes collecting invoice documentation from each of the Local Project Sponsor and compiling the information into a DWR Invoice Packet.
Deliverables:
• Quarterly Invoices and associated backup documentation Task 3: Reporting
The Grantee will be responsible for compiling progress reports for submittal to DWR. The Grantee will coordinate with Local Project Sponsor staff to retain consultants as needed to prepare and submit progress reports and final project completion reports for each project, as well as the grant completion report.
Reports will meet generally accepted professional standards for technical reporting and the requirements terms of the contract with DWR outlined in Exhibit F of this Agreement.
Deliverables:
• Quarterly Progress Reports
• Grant Completion Report
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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PROJECT 1: Trinidad-Westhaven Emergency Intertie
IMPLEMENTING AGENCY: Westhaven Community Services District PROJECT DESCRIPTION: The Project will plan and construct an emergency intertie between the Trinidad Water System and the Westhaven Community Services District Water System. The intertie facilities would include pipes, intertie connections/valves, pump station, and a back-up generator (currently owned and operated by the City of Trinidad). Water will be pumped from Trinidad to Westhaven because of the difference in elevation. The pump station and pipe design will be designed for a maximum flow of approximately 100 gallons 20-40 gallons per minute. This Project will increase water supply relabiility by providing a temporary alternate water supply.
Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
Not applicable
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Project Feasibility Studies: A brief technical memo was completed as part of the project development process to analyze the feasibility of the Trinidad/WCSD Emergency Intertie Project.
Deliverables:
• Relevant Feasibility Studies
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: encroachment permit from Humboldt County and Coastal Development Permit.
Deliverables:
• Permits as required
Task 7: Design
The basis of design will be described in a Basis of Design Report. Plans and specifications will be developed to the 100% level for DWR review prior to being finalized.
The design will include the following components:
a) Survey project alignment to locate existing constraints and then determine the best location for the proposed intertie pipe, fire hydrants, and pump station. b) Determine diameter, pressure rating and type of the pipe. c) Determine pump head, flow, efficiency, voltage, phase, and type d) Design pump station enclosure and appurtenances
e) Coordinate project location with land owners and rights-of-way f) Design pump station mechanical
g) Design pump station electrical including emergency power generator and SCADA h) Design efforts need to take into account funding requirements such as DBE, prevailing wage rates, etc… Deliverables:
• Basis of Design Report
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 14 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.10 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.
Deliverables:
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A full-time engineering construction observer will be on site for the duration of the project.
Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization and Demobilization Mobilization will include traffic control. Demobilization will include final site cleanup, punch list completion and removal of equipment from the site 11(b): Site preparation will include clearing along the road right of way as needed and site clearing as needed for the pump station at the Trinidad Water Treatment Plant. 11(c): Construction implementation will include the installation of 6-inch PVC water main along South Westhaven Drive from the Westhaven CSD to the Trinidad Water Treatment Plant and the construction of a pump station adjacent to the Trinidad Water Treatment Plant. Details of the construction include the following:
a. Trenching along travelled way
b. Pipe installation, backfill, and compaction
c. Excavation of pump station site
d. Building footing
e. Building structure
f. Install mechanical, electrical and instrumentation
g. System integration of new facilities
h. System functional acceptance testing
i. Final acceptance of new facilities
Deliverables:
• Photographic Documentation of Progress
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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PROJECT 2: Water Storage Resiliency Project
IMPLEMENTING AGENCY: City of Trinidad
PROJECT DESCRIPTION: One of the City’s two 150,000 gallon redwood storage tanks will be replaced by constructing a 300,000 250,000 gallon stainless steel water storage tank with valving, piping, and a chlorine booster system for the distribution system to meet chlorination requirements and state codes. There will be a net increase of 150,000 100,000 gallons in storage capacity to meet water demands during periods of low flow when it takes longer to pump water from the creek. The project will achieve the benefits of water supply reliability and improving operational efficiency by increasing water storage capacity and replacing a vulnerable redwood tank with a steel water storage tank.
Budget Category (a): Project Administration
Task 1: Agreement Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.
Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.
Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.
Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
Not applicable.
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Project Feasibility Studies were not completed as part of the project development process.
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA. Prepare all necessary environmental documentation.
Prepare letter stating no legal challenges (or addressing legal challenges).
Deliverables:
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this project: Encroachment permit from Humboldt County and Coastal Development Permit.
Deliverables:
• Permits as required
Task 7: Design
Planning and design will begin when funding is secured. Preliminary Design and Studies: Topographic survey information at the tank site will be collected. A site specific geotechnical report will be completed for the water tank site and select pipeline locations to develop appropriate parameters for design for the tank foundation.
The analysis will include a site geotechnical evaluation, in which soil borings will be taken, to determine, soil/geological stability, and soil pore pressure to assure appropriate parameters are used in the design of the new tank foundation. Construction requirements resulting from the geotechnical investigation will be included on the plans and specifications. A geotechnical memorandum will be prepared summarizing the fieldwork, analysis, and recommendations.
Project Plans, Engineering & Specifications: This task consists of all work necessary to develop construction implementation documents including the final design plans, technical specifications, and opinion of probable construction cost.
Deliverables:
• Survey and Geotechnical Memorandum
• 100% Design Plans and Specifications
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 14 for DWR’s review and approval.
Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.11 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.
Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A full-time engineering construction observer will be on site for the duration of the project.
Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.
Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.
11(a): Mobilization will also include set up of temporary signage and traffic control. Demobilization will include final site cleanup, punch list completion and removal of equipment from the site. 11(b): Site preparation will include minor site clearing and grading. 11(c): At the existing water tank site, replace a 150,000 gallon redwood water storage tank with an approximately 300,000 250,000 gallon stainless steel water storage tank. Prior to all construction, an erosion and control plan will be in place by the contractor. All clearing and grubbing to occur by the contractor with material disposed of according the project disposal specifications. The existing 150,000 gallon tank will be taken offline and demolished. A new foundation will be prepared for the new tank. The proposed tank shall be installed to the manufacturer's recommendations. The proposed tank shall be disinfected and tested with the installation of cathodic protection. A remote telemetry system will be installed on the tank to provide, but not limited to, such parameters as tank level, chlorine concentration, and temperature. The contractor shall install the necessary site piping to link the second existing tank and the proposed tank together for a single supply system. Additionally, a chlorine booster pump station will be added to the site to ensure disinfection compliance of state requirements through the distribution system.
Deliverables:
• Photographic Documentation of Progress
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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EXHIBIT B
BUDGET
AGREEMENT BUDGET SUMMARY
PROJECTS Grant Amount All Other
Cost
Total Cost
Grant Administration $70,000 $0 $70,000
1 Trinidad-Westhaven Emergency
Intertie
$1,871,600 $0 $1,871,600
2 Water Storage Resiliency Project $58,400 $1,654,100 $1,712,500 GRAND TOTAL $2,000,000 $1,654,100 $3,654,100
Grant Administration
Implementing Agency: City of Trinidad
BUDGET CATEGORY Grant Amount All Other Cost Total Cost
(a) Project Administration $70,000 $0 $70,000
TOTAL COSTS $70,000 $0 $70,000
PROJECT 1: Trinidad-Westhaven Emergency Intertie
Implementing Agency: Westhaven Community Services District BUDGET CATEGORY Grant Amount All Other Cost* Total Cost (a) Project Administration $51,400 $0 $51,400
(b) Land Purchase / Easement $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $312,500 $0 $312,500
(d) Construction / Implementation $1,507,700 $0 $1,507,500 TOTAL COSTS $1,871,600 $0
$1,871,600
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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PROJECT 2: Water Storage Resiliency Project
Implementing Agency: City of Trinidad
BUDGET CATEGORY Grant Amount All Other Cost* Total Cost (a) Project Administration $15,000 $0 $15,000
(b) Land Purchase / Easement $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $43,225 $210,000 $253,225
(d) Construction / Implementation $175 $1,444,100 $1,444,275 TOTAL COSTS $58,400 $1,654,100 $1,712,500
*All Other Costs are funded by a DWR Small Community Drought Relief Program Grant Agreement with the City of Trinidad.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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EXHIBIT C
SCHEDULE
Grant Administration
BUDGET CATEGORY Start Date End Date
a Project Administration 3/19/2022 3/1/2025 3/1/2026
PROJECT 1: Trinidad-Westhaven Emergency Intertie
BUDGET CATEGORY Start Date End Date
a Project Administration 3/19/2022 1/1/2025 1/15/2026
b Land Purchase / Easement 10/1/2022 2/1/2023
c Planning / Design / Engineering / Environmental Documentation 3/19/22 2/1/2023 4/14/2025 d Construction / Implementation 1/1/2023 10/1/2024 12/15/2025 PROJECT 2: Water Storage Resiliency Project
BUDGET CATEGORY Start Date End Date
a Project Administration 3/19/2022 1/1/2025 1/15/2026
b Land Purchase / Easement N/A N/A
c Planning / Design / Engineering / Environmental Documentation 5/1/2022 7/1/2023 d Construction / Implementation 7/1/2023 10/1/2024 11/15/2025 Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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EXHIBIT D
STANDARD CONDITIONS
D.1. ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT:
A. Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed pursuant to this Grant agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.
B. Disposition of Money Disbursed: All money disbursed pursuant to this Grant agreement shall be deposited in a non-interest bearing account, administered, and accounted for pursuant to the provisions of applicable law.
C. Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Grant agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Grant agreement, whichever comes first.
D.2. ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Grant agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Budget Act of 2021 and through an agreement with the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.
D.3. AMENDMENT: This Grant agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law.
Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. Requests solely for a time extension must be submitted at least 90 days prior to the work completion date set forth in Paragraph 2. Any other request for an amendment must be submitted at least 180 days prior to the work completion date set forth in Paragraph 2. State shall have no obligation to agree to an amendment.
D.4. AMERICANS WITH DISABILITIES ACT: By signing this Grant agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.
D.5. AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant agreement, and State may elect to pursue any remedies provided in Paragraph 10 or take any other action it deems necessary to protect its interests. The Grantee agrees it shall return any audit disallowances to the State.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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Pursuant to Government Code section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant agreement with respect of all matters connected with this Grant agreement, including but not limited to, the cost of administering this Grant agreement. All records of Grantee or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement.
D.6. BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant agreement does not appropriate sufficient funds for this program, this Grant agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant agreement and Grantee shall not be obligated to perform any provisions of this Grant agreement. Nothing in this Grant agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Grant agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Grant agreement with no liability occurring to State, or offer a Grant agreement amendment to Grantee to reflect the reduced amount.
D.7. CEQA: Activities funded under this Grant agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under this Agreement that is subject to a CEQA document shall not proceed until and unless approved by the Department of Water Resources. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 10, “Default Provisions.”
D.8. CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code section 7110, that:
A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code section 5200 et seq.; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
D.9. CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim.
State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.
D.10. COMPETITIVE BIDDING AND PROCUREMENTS: Grantee’s contracts with other entities for the acquisition of goods and services and construction of public works with funds provided by State under this Grant agreement must be in writing and shall comply with all applicable laws and regulations regarding the securing of competitive bids and undertaking competitive negotiations. If the Grantee does not have a written policy to award contracts through a competitive bidding or sole source Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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process, the Department of General Services’ State Contracting Manual rules must be followed and are available at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-ServicesResources-List-Folder/State-Contracting.
D.11. COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Grant agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.
D.12. CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws.
Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411, for State conflict of interest requirements.
A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.
B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.
C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.) D. Employees and Consultants to the Grantee: Individuals working on behalf of a Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.
D.13. DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Grant agreement, such reports, data, information, and certifications as may be reasonably required by State.
D.14. DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than thirty (30) calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within sixty (60) calendar days of receipt of such inventory State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.
D.15. DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Grant agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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A. Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code section 8355.
B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355 to inform employees, contractors, or subcontractors about all of the following:
i. The dangers of drug abuse in the workplace,
ii. Grantee’s policy of maintaining a drug-free workplace, iii. Any available counseling, rehabilitation, and employee assistance programs, and iv. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.
C. Provide, as required by Government Code section 8355, that every employee, contractor, and/or subcontractor who works under this Grant agreement:
i. Will receive a copy of Grantee’s drug-free policy statement, and ii. Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract.
D.16. EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property already owned in fee by the Grantee using State funds provided through this Grant agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State.
Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner.
Failure to provide an easement acceptable to the State may result in termination of this Agreement.
D.17. FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED PROFESSIONAL: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement.
D.18. GOVERNING LAW: This Grant agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
D.19. GRANTEE'S RESPONSIBILITIES: Grantee and its representatives shall:
A. Faithfully and expeditiously perform or cause to be performed all project work as described in Exhibit A and in accordance with Exhibits B and C.
B. Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Grant agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.
C. Comply with all applicable California, federal, and local laws and regulations.
D. Implement the Project in accordance with applicable provisions of the law.
E. Fulfill its obligations under the Grant agreement and be responsible for the performance of the Project.
F. Obtain any and all permits, licenses, and approvals required for performing any work under this Grant agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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G. Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.
H. Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.
D.20. INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of levee rehabilitation measures for this Project and any breach of this Agreement. Grantee shall require its contractors or subcontractors to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.
D.21. INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantees, in the performance of the Grant agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.
D.22. INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Grant agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.
D.23. INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant agreement with State.
D.24. LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/ lcp.asp.
For more information, please refer to DIR’s Public Works Manual at: https://www.dir.ca.gov/ dlse/PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.
D.25. MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibits A, B, and C which concern the budget and schedule without formally amending this Grant agreement. Non-material changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Grant agreement. Non-material changes with respect to the Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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Project schedule are changes that will not extend the term of this Grant agreement. Requests for nonmaterial changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.
D.26. NONDISCRIMINATION: During the performance of this Grant agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, and denial of medical and family care leave or pregnancy disability leave. Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant agreement.
D.27. OPINIONS AND DETERMINATIONS: Where the terms of this Grant agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.
D.28. PERFORMANCE BOND: Where contractors are used, the Grantee shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.)
D.29. PRIORITY HIRING CONSIDERATIONS: If this Grant agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Grant agreement to qualified recipients of aid under Welfare and Institutions Code section 11200 in accordance with Public Contract Code section 10353.
D.30. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State.
Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee meet its obligations under this Grant agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.
D.31. PROJECT ACCESS: The Grantee shall ensure that the State, the Governor of the State, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of this Agreement.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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D.32. REMAINING BALANCE: In the event the Grantee does not submit invoices requesting all of the funds encumbered under this Grant Agreement, any remaining funds revert to the State. The State will notify the Grantee stating that the Project file is closed and any remaining balance will be disencumbered and unavailable for further use under this Grant Agreement.
D.33. REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Grant agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.
D.34. RETENTION: The State shall withhold ten percent (10%) of the funds, for each project, until the project is complete, and a Final Project Report is approved and accepted by DWR. If a project has multiple Components (within a project), at the State's discretion and upon a written request by the Grantee, any retained amount attributable to a single component may be released when that component is complete and the Final Component Completion Report is approved. Upon approval of the Final Project Report and/or Final Component Completion Report, any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest.
D.35. RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes and other written or graphic work produced in the performance of this Grant agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov.
Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected and developed under this Grant agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this paragraph for any public purpose.
D.36. SEVERABILITY: Should any portion of this Grant agreement be determined to be void or unenforceable, such shall be severed from the whole and the Grant agreement shall continue as modified.
D.37. SUSPENSION OF PAYMENTS: This Grant agreement may be subject to suspension of payments or termination, or both if the State determines that:
A. Grantee, its contractors, or subcontractors have made a false certification, or B. Grantee, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Grant agreement.
D.38. SUCCESSORS AND ASSIGNS: This Grant agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Grant agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.
D.39. TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.
D.40. TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 10, “Default Provisions,” the State may terminate this Grant agreement and be relieved of any payments should Grantee fail to perform the requirements of this Grant agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 10, “Default Provisions.” Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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D.41. TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days’ advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.
D.42. THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.
D.43. TIMELINESS: Time is of the essence in this Grant Agreement.
D.44. TRAVEL : Only ground transportation and lodging are eligible for grant reimbursement. Per diem costs will not be eligible for grant reimbursement. Any reimbursement for necessary travel shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel amounts that are current as of the date costs are incurred. No travel outside of the project sponsor’s service area shall be reimbursed unless prior written authorization is obtained from the State.
D.45. UNION ORGANIZING: Grantee, by signing this Grant agreement, hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Grant Agreement.
Furthermore, Grantee, by signing this Grant Agreement, hereby certifies that:
A. No State funds disbursed by this Grant agreement will be used to assist, promote, or deter union organizing.
B. Grantee shall account for State funds disbursed for a specific expenditure by this Grant agreement to show those funds were allocated to that expenditure.
C. Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro rata basis, all disbursements that support the program.
D. If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.
D.46. VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.
D.47. WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Grant agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.
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EXHIBIT E
AUTHORIZING RESOLUTION
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EXHIBIT F
REPORT FORMATS AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format.
PROGRESS REPORTS
Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information. For each project, discuss the following at the task level, as organized in Exhibit A:
• Percent complete (by work)
• Discussion of work accomplished during the reporting period. • Milestones or deliverables completed/submitted during the reporting period. • Meetings held or attended.
• Scheduling concerns and issues encountered that may delay completion of the task.
For each project, discuss the following at the project level, as organized in Exhibit A:
• Work anticipated for the next reporting period.
• Photo documentation, as appropriate.
• Budget projections for grant share for the next two quarters • Any schedule or budget modifications approved by DWR during the reporting period.
PROJECT COMPLETION REPORT
The Project Completion Report (or a Component Completion Report, if a Project has multiple Components) shall generally use the following format provided below for each project after completion.
Executive Summary
The Executive Summary should include a brief summary of project information and include the following items:
• Brief description of work proposed to be done in the original Grant application. • List any official amendments to this Grant Agreement, with a short description of the amendment.
Reports and/or Products
The following items should be provided, unless already submitted as a deliverable:
• A copy of any final technical report or study, produced for or utilized in this Project as described in the Exhibit A
• Electronic copies of any data collected, not previously submitted • Discussion of problems that occurred during the work and how those problems were resolved • Final project schedule showing actual progress versus planned progress as shown in Exhibit C Additional information that may be applicable for implementation projects includes the following:
• Record drawings
• Final geodetic survey information
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• Project photos
Cost & Disposition of Funds
A list showing:
• Summary of Project costs including the following items:
o Accounting of the cost of project expenditure;
o Include all internal and external costs not previously disclosed (i.e., additional cost share); and o A discussion of factors that positively or negatively affected the project cost and any deviation from the original Project cost estimate.
Additional Information
• Benefits derived from the Project, with quantification of such benefits provided. • If applicable, Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), consistent with Exhibit D, that the project was conducted in accordance with the approved Work Plan in Exhibit A and any approved amendments thereto. • Submittal schedule for the Post-Performance Report.
GRANT COMPLETION REPORT
The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects funded by this Grant Agreement, and includes the following:
• Executive Summary: consisting of a maximum of ten (10) pages summarizing information for the grant as well as the individual projects.
• Brief discussion whether the level, type, or magnitude of benefits of each project are comparable to the original project proposal; any remaining work to be completed and mechanism for their implementation; and a summary of final funds disbursement for each project.
Additional Information: Summary of the submittal schedule for the Post-Performance Reports applicable for the projects in this Grant Agreement.
POST-PERFORMANCE REPORT
The Post-Performance Report (PPR) should be concise and focus on how each project is performing compared to its expected performance; whether the project is being operated and maintained and providing intended benefits as proposed. A PPR template may be provided by the assigned DWR Grant Manager upon request. The PPR should follow the general format of the template and provide requested information as applicable. The following information, at a minimum, shall be provided:
Reports and/or products
• Header including the following:
o Grantee Name
o Implementing Agency (if different from Grantee)
o Grant Agreement Number
o Project Name
o Funding grant source
o Report number
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• Post-Performance Report schedule
• Time period of the annual report (e.g., January 2018 through December 2018) • Project Description Summary
• Discussion of the project benefits
• An assessment of any differences between the expected versus actual project benefits as stated in the original application. Where applicable, the reporting should include quantitative metrics (e.g., new acrefeet of water produced that year, etc.). • Summary of any additional costs and/or benefits deriving from the project since its completion, if applicable.
• Any additional information relevant to or generated by the continued operation of the project.
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EXHIBIT G
REQUIREMENTS FOR DATA SUBMITTAL
Surface and Groundwater Quality Data:
Groundwater quality and ambient surface water quality monitoring data that include chemical, physical, or biological data shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports.
Surface water quality monitoring data shall be prepared for submission to the California Environmental Data Exchange Network (CEDEN). The CEDEN data templates are available on the CEDEN website.
Inclusion of additional data elements described on the data templates is desirable. Data ready for submission should be uploaded to your CEDEN Regional Data Center via the CEDEN website. CEDEN website: http://www.ceden.org.
If a project’s Work Plan contains a groundwater ambient monitoring element, groundwater quality monitoring data shall be submitted to the State for inclusion in the State Water Resources Control Board’s Groundwater Ambient Monitoring and Assessment (GAMA) Program Information on the GAMA Program can be obtained at: https://www.waterboards.ca.gov/water_issues/programs/gama/. If further information is required, the Grantee can contact the State Water Resources Control Board (SWRCB) GAMA Program.
A listing of SWRCB staff involved in the GAMA program can be found at:
https://www.waterboards.ca.gov/water_issues/programs/gama/contact.shtml.
Groundwater Level Data
For each project that collects groundwater level data, the Grantee will need to submit this data to DWR’s Water Data Library (WDL), with a narrative description of data submittal activities included in project reports, as described in Exhibit F, “Report Formats and Requirements.” Information regarding the WDL and in what format to submit data in can be found at: http://www.water.ca.gov/waterdatalibrary/.
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EXHIBIT H
STATE AUDIT DOCUMENT REQUIREMENTS FOR THE GRANTEE
The following provides a list of documents typically required by State Auditors and general guidelines for the Grantee. List of documents pertains to both State funding and the Grantee’s Local Cost Share and details the documents/records that State Auditors would need to review in the event of this Grant Agreement is audited.
The Grantee should ensure that such records are maintained for each funded project.
State Audit Document Requirements
Internal Controls
1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded Program/Project).
2. Written internal procedures and flowcharts for the following:
a) Receipts and deposits
b) Disbursements
c) State reimbursement requests
d) Expenditure tracking of State funds
e) Guidelines, policy, and procedures on State funded Program/Project
3. Audit reports of the Agency internal control structure and/or financial statements within the last two years.
4. Prior audit reports on the State funded Program/Project.
State Funding:
1. Original Grant Agreement, any amendment(s) and budget modification documents.
2. A listing of all bond-funded grants, loans, or subventions received from the State.
3. A listing of all other funding sources for each Program/Project.
Contracts:
1. All subcontractor and consultant contracts and related or partners’ documents, if applicable.
2. Contracts between the Agency and member agencies as related to the State funded Program/Project.
Invoices:
1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the Grant Agreement.
2. Documentation linking subcontractor invoices to State reimbursement, requests and related Grant Agreement budget line items.
3. Reimbursement requests submitted to the State for the Grant Agreement.
Cash Documents:
1. Receipts (copies of warrants) showing payments received from the State.
2. Deposit slips (or bank statements) showing deposit of the payments received from the State.
3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors, consultants, and/or agents under the grants or loans.
4. Bank statements showing the deposit of the receipts.
Accounting Records:
1. Ledgers showing entries for funding receipts and cash disbursements.
2. Ledgers showing receipts and cash disbursement entries of other funding sources.
3. Bridging documents that tie the general ledger to requests for Grant Agreement reimbursement.
Administration Costs:
1. Supporting documents showing the calculation of administration costs.
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Personnel:
1. List of all contractors and Agency staff that worked on the State funded Program/Project.
2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services charged to the program
Project Files:
1. All supporting documentation maintained in the project files.
2. All Grant Agreement related correspondence.
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EXHIBIT I
LOCAL PROJECT SPONSORS AND PROJECT LOCATIONS
The Grantee has assigned, for each project, a Local Project Sponsor (LPS). LPSs may act on behalf of the Grantee for the purposes of individual project management, oversight, compliance, and operations and maintenance. LPSs are identified for each sponsored Project below:
Local Project Sponsor Agency Designation
Sponsored Project: Trinidad-Westhaven Emergency Intertie Sponsor Agency: Westhaven Community Services District
Agency Address: 309 Trinity Street
Project Location: Town/City, California (41.040474000000003, -124.109153) Local Project Sponsor Agency Designation
Sponsored Project: Water Storage Resiliency Project
Sponsor Agency: City of Trinidad
Agency Address: 309 Trinity Street
Project Location: Town/City, California (41.057549999999999, -124.121949) Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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EXHIBIT J
APPRAISAL SPECIFICATIONS
For property acquisitions funded by this Grant Agreement, the Grantee shall submit an appraisal for review and approval by the Department of General Services or DWR’s Real Estate Branch prior to reimbursement or depositing State funds into an escrow account. This information should be submitted at least 90 days prior to a reimbursement request to account for review time. All appraisal reports, regardless of report format, shall include all applicable Appraisal Specifications below. Appraisals for a total compensation of $150,000 or more shall be reported as a Self-Contained Appraisal Report. Appraisals for a total compensation of less than $150,000 may be reported as a Summary Appraisal Report, which includes all information necessary to arrive at the appraiser’s conclusion. Appraisal Specifications 14, 16, 21, 23-25, and 28 shall be a narrative analysis regardless of the reporting format.
1. Title page with sufficient identification of appraisal assignment.
2. Letter of transmittal summarizing important assumptions and conclusions, value estimate, date of value and date of report.
3. Table of contents.
4. Assumptions and Limiting Conditions, Extraordinary Assumptions, and Hypothetical Conditions as needed.
5. Description of the scope of work, including the extent of data collection and limitations, if any, in obtaining relevant data.
6. Definition of Fair Market Value, as defined by California Code of Civil Procedure, § 1263.320.
7. Photographs of subject property and comparable data, including significant physical features and the interior of structural improvements, if applicable.
8. Copies of Tax Assessor’s plat map with the subject marked along with all contiguous assessor’s parcels that depict the ownership.
9. A legal description of the subject property, if available.
10. For large, remote or inaccessible parcels, provide aerial photographs or topographical maps depicting the subject boundaries.
11. Three (3) year subject property history, including sales, listings, leases, options, zoning, applications for permits, or other documents or facts that might indicate or affect use or value.
12. Discussion of any current Agreement of Sale, option, or listing of subject property. This issue required increased diligence since state agencies often utilize non-profit organizations to quickly acquire sensitive habitat parcels using Option Agreements. However, due to confidentiality clauses, the terms of the Option are often not disclosed to the State. If the appraiser discovers evidence of an Option or the possible existence of an Option, and the terms cannot be disclosed due to a confidentiality clause, then the appraiser is to cease work and contact the client.
13. Regional, area, and neighborhood analyses. This information may be presented in a summary format.
14. Market conditions and trends including identification of the relevant market area, a discussion of supply and demand within the relevant market area, and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. This information may be presented in a summary format.
15. Discussion of subject land/site characteristics (size, topography, current use, elevations, zoning and land use issues, development entitlements, General Plan designation, utilities, offsite improvements, Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Grant Agreement No. 4600014620
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access, land features such as levees and creeks, offsite improvements, easements and encumbrances, covenants, conditions and restrictions, flood and earthquake information, toxic hazards, water rights, mineral rights, toxic hazards, taxes and assessments, etc.).
16. Description of subject improvements including all structures, square footage, physical age, type of construction, quality of construction, condition of improvements and/or identification of any permanent plantings. Discussion of construction cost methodology, costs included and excluded, accrued depreciation from all causes, remaining economic life, items of deferred maintenance and cost to cure, and incurable items. Construction cost data shall include cost data source, date of estimate or date of publication of cost manual, section and page reference of cost manual, copies of cost estimate if provided from another source, replacement or reproduction cost method used, and supporting calculations including worksheets or spreadsheets.
17. Subject property leasing and operating cost history, including all items of income and expense.
18. Analysis and conclusion of the larger parcel for partial taking appraisals. For partial taking appraisals, Appraisal Specifications generally apply to the larger parcel rather than an ownership where the larger parcel is not the entire ownership.
19. Include a copy of a recent preliminary title report (within the past year) as an appraisal exhibit. Discuss the title exceptions and analyze the effect of title exceptions on fair market value.
20. For appraisals of partial takings or easements, a detailed description of the taking or easement area including surface features and topography, easements, encumbrances or improvements including levees within the subject partial take or easement, and whether the take area is characteristic of the larger parcel. Any characteristics of the taking area, including existing pre-project levees that render the take area different from the larger parcel shall be addressed in the valuation.
21. Opinion of highest and best use for the subject property, based on an in-depth analysis supporting the concluded use which includes the detail required by the complexity of the analysis. Such support typically requires a discussion of the four criteria of tests utilized to determine the highest and best use of a property. If alternative feasible uses exist, explain and support market, development, cash flow, and risk factors leading to an ultimate highest and best use decision.
22. All approaches to market value applicable to the property type and in the subject market. Explain and support the exclusion of any usual approaches to value.
23. Map(s) showing all comparable properties in relation to the subject property.
24. Photographs and plat maps of comparable properties.
25. In-depth discussion of comparable properties, similarities and differences compared to the subject property, adjustments to the comparable data, and discussion of the reliability and credibility of the data as it relates to the indicated subject property value. Improved comparable sales which are used to compare to vacant land subject properties shall include an allocation between land and improvements, using methodology similar to methodology used in item 16 above to estimate improvement value when possible, with an explanation of the methodology used.
26. Comparable data sheets.
a. For sales, include information on grantor/Grantee, sale/recordation dates, listed or asking price as of the date of sale, highest and best use, financing, conditions of sale, buyer motivation, sufficient location information (street address, post mile, and/or distance from local landmarks such as bridges, road intersections, structures, etc.), land/site characteristics, improvements, source of any allocation of sale price between land and improvements, and confirming source. b. For listings, also include marketing time from list date to effective date of the appraisal, original list price, changes in list price, broker feedback, if available.
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c. For leases, include significant information such as lessor/lessee, lease date and term, type of lease, rent and escalation, expenses, size of space leased, tenant improvement allowance, concessions, use restrictions, options, and confirming source. When comparing improved sales to a vacant land subject, the contributory value of the improvements shall be segregated from the land value.
27. For appraisals of easements, a before and after analysis of the burden of the easement on the fee, with attention to how the easement affects highest and best use in the after condition. An Easement Valuation Matrix or generalized easement valuation references may be used ONLY as a reference for a secondary basis of value.
28. For partial taking and easement appraisals, valuation of the remainder in the after condition and analysis and identification of any change in highest and best use or other characteristics in the after condition, to establish severance damages to the remainder in the after condition, and a discussion of special and general benefits, and cost to cure damages or construction contract work.
29. There are occasions where properties involve water rights, minerals, or salable timber that require separate valuations. If an appraisal assignment includes water rights, minerals, or merchantable timber that requires separate valuation, the valuation of the water rights, minerals, or merchantable timber shall be completed by a credentialed subject matter specialist.
30. For partial taking and easement appraisals, presentation of the valuation in California partial taking acquisition required format.
31. Implied dedication statement.
32. Reconciliation and final value estimate. Include analysis and comparison of the comparable sales to the subject, and explain and support conclusions reached.
33. Discussion of any departures taken in the development of the appraisal.
34. Signed Certification consistent with the language found in Uniform Standards of Professional Appraisal Practice.
35. If applicable, in addition to the above, appraisals of telecommunication sites shall also provide:
a. A discussion of market conditions and trends including identification of the relevant market, a discussion of supply and demand within the relevant market area and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. b. An analysis of other leases comparable to subject property. Factors to be discussed in the analysis include the latitude, longitude, type of tower, tower height, number of rack spaces, number of racks occupied, placement of racks, power source and adequacy, back-up power, vault and site improvements description and location on site, other utilities; access, and road maintenance costs.
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EXHIBIT K
INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE
The Grantee shall provide the following documents to the State Project Representative during the escrow process. Property acquisition escrow documents shall be submitted within the term of this Grant Agreement and after a qualified appraisal has been approved. • Name and Address of Title Company Handling the Escrow • Escrow Number
• Name of Escrow Officer
• Escrow Officer’s Phone Number
• Dollar Amount Needed to Close Escrow
• Legal Description of Property Being Acquired
• Assessor’s Parcel Number(s) of Property Being Acquired • Copy of Title Insurance Report
• Entity Taking Title as Named Insured on Title Insurance Policy • Copy of Escrow Instructions in Draft Form Prior to Recording for Review Purposes • Copy of Final Escrow Instructions
• Verification that all Encumbrances (i.e., Liens, Back Taxes, and Similar Obligations) have been Cleared Prior to Recording the Deed to Transfer Title
• Copy of Deed for Review Purposes Prior to Recording
• Copy of Deed as Recorded in County Recorder’s Office
• Copy of Escrow Closure Notice
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EXHIBIT L
PROJECT MONITORING PLAN GUIDANCE
Introduction
For each project contained in Exhibit A, please include a brief description of the project (maximum ~150 words) including project location, implementation elements, need for the project (what problem will the project address) and responds to the requirements listed below.
Project Monitoring Plan Requirements
The Project Monitoring Plan shall contain responses to the following questions:
• What are the anticipated project physical benefits?
• What are the corresponding numeric targets for each project benefit? • How will proposed numeric targets be measured?
• What are baseline conditions?
• When will the targets be met (e.g., upon project completion, five years after completion)? • How often will monitoring be undertaken (e.g., monthly, yearly). • Where are monitoring point locations (e.g., meter located at…, at stream mile…)? Include relevant maps.
• How will the project be maintained (e.g., irrigation, pest management, weed abatement)? • What will be the frequency and duration of maintenance proposed activities? • Are there any special environmental considerations (e.g., resource agency requirements, permit requirements, CEQA/NEPA mitigation measures)?
• Who is responsible for collecting the samples (i.e., who is conducting monitoring and/or maintenance)?
• How, and to whom, will monitoring results be reported (e.g., paper reports, online databases, public meetings)?
• What adaptive management strategies will be employed if problems are encountered during routine monitoring or maintenance?
• What is the anticipated life of the project?
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EXHIBIT M
INVOICE GUIDANCE FOR ADMINISTRATIVE AND OVERHEAD CHARGES The funds provided pursuant to this Agreement may only be used for costs that are directly related to the funded Project. The following provides a list of typical requirements for invoicing, specifically providing guidance on the appropriate methods for invoicing administrative and direct overhead charges.
Administration Charges
Indirect and General Overhead (i.e., indirect overhead) charges are not an allowable expense for reimbursement. However, administrative expenses that are apportioned directly to the project are eligible for reimbursement. Cost such as rent, office supplies, fringe benefits, etc. can be “Direct Costs” and are eligible expenses as long as:
• There is a consistent, articulated method for how the costs are allocated that is submitted and approved by the Grant Manager. The allocation method must be fully documented for auditors. • A “fully-burdened labor rate” can be used to capture allowable administrative costs. • The administrative/overhead costs can never include:
o Non-project specific personnel and accounting services performed within the Grantee or an LPS’ organization
o Generic markup
o Tuition
o Conference fees
o Building and equipment depreciation or use allowances • Using a general overhead percentage is never allowed
Labor Rates
The Grantee must provide DWR with supporting documentation for personnel hours (see personnel billing rates letter in example invoice packet). The personnel rate letter should be submitted to the DWR Grant Manager prior to submittal of the first invoice. The supporting documentation must include, at a minimum, employee classifications that will reimbursed by grant funds and the corresponding hourly rate range. These rates should be “burdened”; the burdened rate must be consistent with the Grantee’s/Local Project Sponsors standardized allocation methodology. The supporting documentation should also provide an explanation of what costs make up the burdened rate and how those costs were determined. This information will be used to compare against personnel hours summary table invoice back up documentation. Periodic updates may be needed during the life of the grant which would be handled through a revised billing rate letter.
Docusign Envelope ID: B09811EC-ACA8-4AFF-B71A-1C0527890778 Exhibit B City of Trinidad and Westhaven Community Services District Financial Responsibilities Project A and Project 1 - Emergency Intertie
Original
Grant Agmt
Budget
Original
WCSD Original City Amended Dec 2024 WCSD City
Intertie -
P1(a) Project Administration $ 65,000 $ 25,000 $ 40,000 $ 51,400 $ 25,000 $ 26,400 Task 1 WCSD Project Admin (invoices, reports, agency
coordination, contract mgmt, project completion report
(accountability report if advance payment requested);
Task 2 WCSD Reporting - Quarterly Progress Reports $ 25,000 $ 25,000 $ 25,000 $ 25,000 Task 1 & 2 CITY Project Admin from Grant Admin Budget
(agency coordination, contract mgmt, submittals) $ 40,000 $ 40,000 $ 26,400 $ 26,400 Intertie -
P1(c)
Planning / Design / Engineering / Environmental
Documentation $ 215,000 $ 185,000 $ 30,000 $ 312,500 $ 237,500 $ 75,000 *Please note that the City of Trinidad contributed $15,000 to the City of Trinidad's planning budge Planning, Encroachment Permit, California Coastal
Commission & CEQA $ 80,000 $ 80,000 $ 80,000 $ 80,000
Design $ 95,000 $ 95,000 $ 147,500 $ 147,500
Project Monitoring Plan $ 10,000 $ 10,000 $ 10,000 $ 10,000 City Engineer Review & Concurrence $ 27,000 $ 27,000 $ 72,000 $ 72,000 City Planner Review & Concurrence $ 3,000 $ 3,000 $ 3,000 $ 3,000 WCSD PACE (WCSD) City GHD (City) SHN (City) Subtotals
Intertie -
P1(d) Construction / Implementation $ 1,576,600 $ 1,546,600 $ 30,000 $ 1,507,700 $ 59,000 $1,448,700 $ 6,000 $ 53,000 $ 21,500 $ 184,500 $ 5,000 $ 270,000 Services During Bidding $ 30,000 $ 30,000 $ 25,000 $ 5,000 $ 20,000 $ 1,000 $ 4,000 $ 3,000 $ 17,000 $ 25,000 Construction $1,189,600 $1,189,600 $1,224,100 $1,224,100 Constr contract Increased by $34,500 Engineering Services During Construction $ 60,000 $ 60,000 $ 45,000 $ 10,000 $ 35,000 $ 10,000 $ 35,000 $ 45,000 Intermittent Construction Observation for One-Half Year $ 179,585 $ 179,585 $ 90,000 $ 1,000 $ 89,000 $ 1,000 $ 2,000 $ 87,000 $ 90,000 Construction Observer Per Diem $ 14,615 $ 14,615 $ - $ - $ - $ - Startup Services/Record Drawings & Final Project
Report/11-Month Warranty Inspection $ 20,000 $ 20,000 $ 30,000 $ 12,000 $ 18,000 $ 2,000 $ 10,000 $ 3,000 $ 13,000 $ 2,000 $ 30,000 Construction Surveying $ 12,800 $ 12,800 $ 20,000 $ 20,000 $ - $ 20,000 $ 20,000 Prevailing Wage Monitoring $ 20,000 $ 20,000 $ 5,000 $ - $ 5,000 $ 500 $ 4,500 $ 5,000 Project Performance Report/O&M $ - $ - $ 25,000 $ 9,000 $ 16,000 $ 1,000 $ 8,000 $ 3,000 $ 13,000 $ 25,000 Admin, Permitting & Environmental Compliance During
Construction $ 20,000 $ 20,000 $ 30,000 $ 2,000 $ 28,000 $ 1,000 $ 1,000 $ 10,000 $ 15,000 $ 3,000 $ 30,000 City Engineer Review & Concurrence during construction $ 28,000 $ - $ 28,000 $ 11,600 $ - $ 11,600 City Planner Review & Concurrence during construction $ 2,000 $ - $ 2,000 $ 2,000 $ - $ 2,000 TOTAL COSTS $ 1,856,600 $ 1,756,600 $ 100,000 $ 1,871,600 $ 321,500 $ 1,550,100 $ 6,000 $ 53,000 $ 21,500 $ 184,500 $ 5,000 $ 270,000 Overall increase in budget, due to City's contribution. $ 15,000
$ (52,500) Amendment reduction in CON budget to increase Planning/Design/Engr/Env budget $ 87,000 Overall savings in non contractor CON budget
$ 34,500 Net savings applied to construction contract
WCSD City
Advance Payment from Funder for Construction costs $ 417,900 $ 417,900 Amended Distribution
BUDGET CATEGORY
Trinidad-Westhaven Emergency Intertie Memorandum of Understanding Exhibit C
Frequency WCSD City
quarterly X
quarterly X
quarterly X
periodic X
periodic X
quarterly 50% 50%
yearly 50% 50%
as needed 50% 50%
as needed TBD* TBD*
end of useful life TBD* TBD*
TBD* - Cost sharing to be based on relative average monthly water sales of WCSD and the City.
Revised March 10, 2025
Trinidad-Westhaven Emergency Intertie Memorandum of Understanding Pump replacement
Pump operation and post project completion reporting
Pump repairs and other minor repairs
Test & calibrate meters
Intertie Facility Operations and Maintenance Cost Apportionment Distribution
BUDGET CATEGORY
Flush Hydrants
Exercise valves
Collect water samples for bacteriological analysis
Cost for bacteriological analysis, flow meter calibration Periodic Pump "exercising"
Major repairs to constructed waterlines, etc.
Exhibit D: Trinidad-Westhaven Emergency Intertie - Roles and Responsibilities City WCSD Task 1: Project Management (includes invoices and associated backup documentation) X required to submit information to Grantee Task 2: Reporting (includes quarterly progress reports, documentation of Acknowledgment of Credit & Signage, Advance Pay-Funding Plan and Accountability report, project completion report, grant completion report, and postperformance reports) City will submit to DWR quarterly progress reports,
documentation of Acknowledgement of Credit and
Signage, AP Reports. The City will submit the
Grant Completion Report to DWR, in collaboration
with WCSD. The City will submit the Project
Completion Report (no later than 90 days after the
project has concluded) and Post-Performance
Reports (shall be submitted to the State within
ninety (90) calendar days after the first
operational year of a project has elapsed. This
record keeping and reporting process shall be
repeated annually for a total of three (3) years
after the project begins operation) to DWR.
WCSD will assist City in completing the reports.
Task 3: Not applicable
Task 4: Feasibility Studies (includes all relevant feasibility studies) X Task 5: CEQA Documentation (includes all completed CEQA documents and Legal Challenges Letter) X
Task 6: Permitting (permits as required) X
Task 7: Design - (includes BODR, Design Plans and Specs, OPCC, etc.) With City review X Task 8: Project Monitoring Plan With City review X
Task 9: Contract Services (includes Bid documents, Proof of Advertisement, AOC, NTP, etc.)
City will develop the front end specifications. The
City will handle reviews of the contract documents
by the City Attorney, funders, insurance broker, and
others as needed.
WCSD will provide the bid schedule to be included
in the front end specifications. WCSD will provide
the measurement and payment section of the
technical specifications that reflect the bid
schedule.
Task 10: Construction Administration (includes DWR Certificate of Project Completion, record drawings, construction management, construction observation, environmental compliance, etc.)
City will be responsible for construction
management and observation, and closeout. City
will share responsibilities for environmental
compliance, and will provide WCSD with detailed
as-built markups for development of record
drawings.
WCSD will share responsibility for environmental
compliance, and will produce record drawings.
WCSD will provide support as appropriate.
Task 11: Construction - (includes photographic documentation of progress) X WCSD will provide support in documentation.
Post Construction
Operations and Maintenance
Revised March 10, 2025
See revised O&M, Exhibit C (revised 3/10/25)
Trinidad-Westhaven Emergency Intertie Memorandum of Understanding Budget Category (a): Project Administration
Budget Category (b): Land Purchase/Easement
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Construction
CITY OF TRINIDAD
WATER TREATMENT PLANT515-121-33
Exhibit
E
Rev. March 11, 2025
MEMORANDUM OF UNDERSTANDING
Between City of Trinidad
and
Westhaven Community Services District
For the Design, California Environmental Quality Act Compliance, Permitting, Construction and Operation of the Trinidad – Westhaven Emergency Intertie Project
This Memorandum of Understanding (“MOU” or “Agreement”) For the Design, California Environmental Quality Act Compliance, Permitting, Construction and Operation of the Trinidad-Westhaven Emergency Intertie Project, is made and entered on this ____ day of ______ , 2025 (this “Agreement”), is entered by and between the City of Trinidad (hereinafter “City”) and the Westhaven Community Services District (hereinafter “District”). Collectively, the City and District shall be referred to in this Agreement as the “Parties”.
RECITALS
A. WHEREAS, situations may arise due to pipeline failures or other emergencies where one of the potable water systems for the District or City may require a short-term supply of water from the other system; and
B. WHEREAS, City and District wish to work cooperatively for the benefit of the citizens of the City and District in case of emergencies; and C. WHEREAS, when the City and District have excess water production capacity, City is willing to sell water to District and District is willing to sell water to City during emergency situations under the terms and conditions described herein; and D. WHEREAS, both the City and the District recognize the need to construct and maintain an interconnection pipeline to effectuate the mutual provision and delivery of excess water production capacity when necessary for the protection of public health and safety and/or to respond to emergency events.
Rev. March 11, 2025
E. WHEREAS, the Department of Water Resources has awarded to the City funding to construct the emergency intertie through a Multi Benefit Drought Relief Program Grant (“MBDRP Grant”) in the amount of $1,871,600.00 (including funds already contributed by the City) to plan and construct the Project 1 Trinidad-Westhaven Emergency Intertie under Grant Agreement No. 4600014620 – Amendment 1 (the “Emergency Intertie Project”), which is attached hereto as Exhibit A and incorporated herein by reference (the “Grant Agreement”).
F. WHEREAS, this Agreement supersedes and replaces that certain written “Interim Memorandum of Agreement” dated October 7, 2022 entered and executed by the Parties related to the Emergency Intertie Project.
NOW THEREFORE, based on the foregoing recitals of fact the City and District mutually agree as follows:
MEMORADUM OF UNDERSTANDING
1. For the term stated in Section 18 of this MOU, below, City may accept potable water from District and District may accept potable water from City through a pipeline, more particularly described below, connecting the distribution systems of the Parties which are located on/near Westhaven Drive, Trinidad, California.
2. The costs for the Emergency Intertie Project include two categories: (a) costs to plan and construct the intertie facility; and (b) ongoing operation and maintenance costs of the intertie facility once constructed.
3. The financial responsibilities of each party to this MOU for the Emergency Intertie Project shall be as provided in Exhibit B, attached hereto and incorporated by reference herein, which exhibit details the cost apportionment and respective payment obligations of the City and District. Planning and construction costs for the Emergency Intertie Project include, without limitation, costs for easement acquisition, preparation of engineering and design documents, environmental documents, permitting costs, and costs of construction and closeout, all of which are more particularly described in the estimate recited in attached Exhibit B. In the event that costs exceed the budgeted funds for the construction contract provided through the MBDRP Grant, the Parties will proceed as follows: (a) they will seek to reduce the scope of Emergency Intertie Project where feasible while still accomplishing objectives; and/or (b) the Parties will seek additional funding. If there is still a funding shortfall after pursuing the foregoing options with reasonable diligence, the additional funds required to complete construction shall be apportioned between the City and District at the following percentages: 50.00% City and Rev. March 11, 2025
50.00% District up to $50,000.00. In the event that the additional funds required to complete construction exceed $50,000.00, the remainder of the cost overruns will be cost-shared based on relative average water sales of WCSD and the City. The District acknowledges that City has already contributed $15,000 for engineering fees on the Emergency Intertie Project, and in the event of a funding shortfall and request for additional proceeds from City and District, City shall be allocated a “contribution credit” for these previously advanced funds, which District shall match.
Once the Emergency Intertie Project is constructed, City or District will be fully responsible for various specific aspects of ongoing Operations and Maintenance (“O & M”), with 50:50 sharing of costs associated with required bacteriological testing, flow meter calibration, and minor repairs to the pump or other items. O & M tasks, responsibilities, and cost sharing are more particularly described in Exhibit C., entitled “Intertie Facility Operations and Maintenance Cost Apportionment,” which is attached hereto and incorporated by reference. Each party will maintain records of O & M activities and costs incurred and make payments as described in Section 17 below.
4. City may accept potable water from District and District may accept potable water from City which is of sufficient quality to meet the standards for potable water for municipal water prescribed by the California Department of Health Services.
5. During an emergency situation (as defined below) and subject to the conditions described herein, City agrees to provide to District, and District agrees to provide to City available quantities of potable water as determined by the supplying water operator. The intertie system capacity is designed for a maximum of approximately twenty to forty (20-40) gallons per minute.
6. The quantity of water delivered to either system shall be determined by the supplying operator and could include production and storage water but the supplier’s tanks shall always maintain at least half (i.e., 50.00%) of their storage capacity at all times.
7. The emergency intertie would be activated only under conditions of a water emergency, defined as follows: when a water system failure or an active fire emergency causes either the City or the District to have insufficient water available for human consumption, sanitation, and/or fire protection. It is recognized that all of the following events constitute good cause to trigger activation of the emergency intertie, without limitation: (a) a large unanticipated system leak results in less than adequate volume to supply customer demand in either City or District; (b) a short-term treatment plant or Rev. March 11, 2025
equipment failure causing disruption in the ability to deliver potable water that meets drinking water standards; or (c) a short-term failure or leakage of storage tanks that reduces source capacity below system demand.
The emergency intertie is not intended to be used to routinely augment anticipated chronic late summer/early fall low flow production deficiencies in either water system.
Emergency conditions shall not include supplementing water volume during periods of high demand if the system is in a normal operational mode unless mutually agreed to in writing through an amendment to this agreement.
8. Emergency notification:
a. The operators, or their designee, are empowered to activate the emergency intertie with coordination of both operators and will then notify their respective subcommittee within 24 hours to inform them of the activation and nature of the emergency. Within 48 hours operators will update their respective subcommittee and prepare for a longer-term emergency if warranted.
b. City and District will each designate a subcommittee with a minimum of three members with the power to authorize a declaration of emergency and to respond to operators in the event of activation of emergency intertie. c. If the emergency lasts more than 72 hours the City and District subcommittees will meet and, if deemed appropriate, declare a water emergency for ongoing use of the emergency intertie.
d. Once a water emergency is declared, the operators and their subcommittees shall meet every 48 hours to review the emergency status until the subcommittees find and declare the water emergency is over.
A declaration of a water emergency shall cause each party to notify customers of the emergency and to immediately implement water conservation measures. For the District, emergency conservation measures that must be imposed in the event of an emergency declaration are specified in Section 6 of WCSD Ordinance 2014-02 (“Adopting a water conservation program and water supply emergency ordinance”); for the City, emergency conservations measures that must be imposed in the event of an emergency declaration are specified in Stage 4, “Severe Water Storage Emergency” from the Trinidad Water Storage Contingency Plan adopted 10 August 2021.
9. Neither City nor District shall be required to accept potable water made available by the other party to this MOU.
Rev. March 11, 2025
10. Both City and District shall jointly review, comment on and approve, in their respective discretion, the draft design of the pump station and interconnection pipeline to be constructed pursuant to this MOU, and in accordance with the Grant Agreement. The specific roles and responsibilities of the City and the District with respect to the Emergency Intertie Project, pump station and interconnection pipeline/valve maintenance are described in Exhibit D, which is attached hereto and incorporated by reference.
11. Each party agrees to address known leaks in a timely fashion and maintain their respective water systems in good working order, so that emergency conditions are not prolonged unnecessarily.
RESPONSIBILITIES OF CITY
12. The City shall be responsible for administering the MBDRP Grant as Grantee, responsible for grant administration, agreement management, invoicing and reporting, construction management, and construction observation. The City shall serve as a cooperating agency and with the City’s engineers and planner shall review and concur with District project work products and design specification as specified in the Exhibit D, City Project Responsibilities, which is attached hereto and incorporated by reference. The City shall work collaboratively with District and District’s consultants, DWR Grant Manager and Division of Drinking Water staff in decision-making and securing approvals and shall timely provide review of work products submitted to City.
City shall abide by all terms and conditions of the Grant Agreement and acknowledges said obligation(s) as a material term of this MOU.
GROUND DISTURBING ACTIVITIES
13. Both the District and City will follow the City’s common practice regarding all ground disturbing activities. Specifically, all grading or earthwork activities within the project area shall be monitored by tribally appointed monitors. The cultural resource monitor(s) must be kept informed by the contractor and understand the ground disturbance schedule.
RESPONSIBILITIES OF DISTRICT
14. The District shall be the implementing agency (sub-grantee) for planning and design of the pipeline, pump station, valves, metering devices, and appurtenances, and be responsible for completion of the scope of work for construction of the pipeline and pump station project in accord with the terms and conditions of the Grant Agreement.
Rev. March 11, 2025
As the Implementing Agency the District will be responsible for the delivery of the Emergency Intertie Project and the day-to-day activities of the Emergency Intertie Project. District responsibilities include project management, contract management, invoicing, reporting, design, engineering, environmental, permitting, and closeout.
District shall abide by all terms and conditions of the Grant Agreement and acknowledges said obligation(s) as a material term of this MOU.
15. The District shall work collaboratively with City and City’s consultants, DWR Grant Manager and Division of Drinking Water staff in decision-making and securing approvals and shall timely provide work product to City and its consultants for review and concurrence prior to finalizing design specifications as specified in Exhibit D, WCSD Project Responsibilities, which is attached hereto and incorporated by reference.
SHARED RESPONSIBILITIES OF CITY AND DISTRICT
16. The City and District jointly share responsibility in testing the intertie and pump station, and putting them into operation.
PAYMENT
17. Cost of water delivered shall be the same for both Parties and shall be no more than 50% of the lower of either Party's current commodity rate for water at the time water is delivered.
18. Payment for potable water purchase under this MOU shall be made within 30 days as billed by the providing party following an emergency water delivery. Each party shall bill the other only for the volume of water delivered. There will be no charge for water used by either party to periodically flush the line and hydrants and periodic operation of the pump for maintenance purposes. An accounting of water delivered, billings issued, and payments made shall be maintained by each party hereto and each party's accounting shall be subject to audit by the other party. Annually, and not later than the end of each fiscal year, the Parties will review the shared O & M costs (see Exhibit C) incurred to determine if payment is due by the party incurring lesser costs to the party incurring greater costs.
TERM
19. The term of this MOU shall be for a period of forty (40) years beginning on the date first written above, which is the expected functional life of the improvements.
This MOU may be extended upon the mutual written consent of the City and District.
Rev. March 11, 2025
LICENSE FOR ENTRY ON CITY PROPERTY BY DISTRICT
20. For the term of this MOU, and subject to all terms and conditions herein, City agrees to afford access and permit the District to enter the following portions of City real property to the extent reasonably necessary for the purposes of the construction, maintenance, and operation of a pump station: City owned real property identified by Assessor's Parcel Number [515-121-33] and more particularly described in Exhibit E, attached hereto and incorporated herein by reference.
OWNERSHIP OF PUMP STATION AND INTERCONNECTION PIPELINE
21. The City and the District will mutually maintain ownership of the pump station and interconnection pipeline improvements through the term of this MOU. At the conclusion of the term of this MOU, the District shall have the option to remove the pump station from the property of City or offer to sell the pump station to the City at fair market value. In the event the City terminates this Agreement at any time prior to expiration of the full term (i.e., prior to expiration of the 40 year term), the District shall have the right to determine whether to remove the pump station from the City’s real property recited in Section 16 (above), or allow it to remain. In the event the District terminates this Agreement at any time prior to expiration of the full term (i.e., prior to expiration of the 40 year term), the City shall have the right to determine whether District is to remove the pump station from the City’s real property or whether the pump station shall remain in its location, in which case it shall thereafter constitute the City’s improvement and the City shall have no obligation to compensate the District for allowing the pump to remain.
MUTUAL INDEMNIFICATION
22. City shall indemnify, defend (with legal counsel acceptable to the indemnified party) and hold the District harmless against all actions, claims, demands, and liabilities and against all losses, damages, costs, expenses, and attorney's fees, to the extent arising directly or indirectly out of an actual or alleged injury to a person or property in the same proportion that the City’s own acts and/or omissions are attributed to said claim, demand, liability, loss, damage, cost, expenses, and/or attorney's fees.
Likewise, District shall indemnify, defend (with legal counsel acceptable to the indemnified party) and hold the City harmless against all actions, claims, demands, and liabilities and against all losses, damages, costs, expenses, and attorney's fees, to the extent arising directly or indirectly out of an actual or alleged injury to a person or property in the same proportion that the District’s own acts and/or omissions are Rev. March 11, 2025
attributed to said claim, demand, liability, loss, damage, cost, expenses, and/or attorney's fees.
ASSIGNMENT
23. Except for an assignment to a successor operator or agency as stated in this Section 22, neither party shall assign any interest in this MOU and shall not transfer any interest in the same without the prior written consent of the other party hereto, except that claims for money due or to become due either party may be assigned to a bank, a trust company, or other financial institution without such approval. Written notice of any such transfer shall be furnished promptly to the other party. Any attempt at assignment of rights under this MOU except for those specifically consented to by both parties or as stated above shall be void. Notwithstanding the foregoing, in the event all of the assets constituting the water purveyance system of either the City or the District are transferred to a successor agency or water supply operator, this MOU shall continue and transfer to the successor or assign.
MODIFICATION
24. This MOU may only be modified by a written amendment thereto, executed by both parties. The Parties will meet periodically to review and revise the protocols developed in the agreement.
MEDIATION, ATTORNEY'S FEES AND COSTS
25. If any dispute develops between the City and the District related to this MOU, the Parties agree to submit the dispute to mediation prior to proceeding with any litigation. If any action at law or in equity is necessary to enforce or interpret the terms of this MOU, the prevailing party shall be entitled to recover reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. The parties acknowledge that this MOU was mutually drafted by the City and the District, and neither shall be deemed the drafter for purposes of contract interpretation in the event of a dispute.
JURISDICTION AND VENUE
26. This MOU shall be construed in accordance with the laws of the State of California and the parties hereto agree that venue of any action or proceeding regarding this MOU or performance thereof shall be in the Humboldt County Superior Court for the State of California.
Rev. March 11, 2025
NOTICES
27. All notices that are required to be given by one party to the other under this MOU shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited with the United States Post Office for delivery by registered or certified mail addressed to the parties at the following addresses, unless such addresses are changed by notice, in writing, to the other party.
City of Trinidad
409 Trinity Street
P.O. Box 390
Trinidad, CA 95570
Westhaven Community Services District
446 6th Avenue
Trinidad, CA 95570
IN WITNESS HEREOF, this MOU is duly executed in Humboldt County, California on the day and year first written above.
City of Trinidad Westhaven Community Services District
________________________________ _________________________________ Mayor Board Chair
3/6/25, 4:54 PM
https://outlook.office365.com/mail/inbox/id/AAMkADk0NGJkMWY1L…1hRIvVPxwIY6IGAAAAAAEMAAAsoB4VKN1hRIvVPxwIY6IGAAD6q72LAAA%3D Page 1 of 3 Outlook
Re: City and WCSD Intertie Project - MOU Negotiations
From David G Hankin <[email protected]>
Date Thu 3/6/2025 1:31 PM
To Acather Trinidad <[email protected]>
Cc Paul Rosenblatt <[email protected]>; Antonio Llanos <[email protected]>; David G Hankin <[email protected]>; Citymanager Trinidad <[email protected]>; Cityclerk Trinidad <[email protected]>; Rpricehall Trinidad <[email protected]>; Bryce Kenny <[email protected]> 3 attachments (53 KB)
Exhibit C. WCSD Requested revisions.docx; Exhibit D - Roles and Responsibilities.WCSD Requested Revisions.docx; WCSD Requested Revisions to MOU.docx;
Greetings, All -
Paul Rosenblatt, Antonio Llanos and I have all reviewed the latest version of the MOU and the attached exhibits that were sent out in the email to which this one directly responds.
We wish to thank the City for the detailed and very reasonable revisions to Exhibit B which reflect primary responsibility for intertie construction and construction observation being shifted to the City (GHD) rather than the District and PACE, thereby saving considerable funds.
We have no substantive recommendations for changes to this Exhibit.
We do, however, have quite a number of recommendations for changes to the MOU itself and also to Exhibits C (O&M responsibilities and cost-sharing) and D (responsibilities of parties).
Overall, our impression is that the MOU has not been revised so as to be consistent with the revision in responsibilities for intertie construction which are reflected in Exhibit B.
Attached is a memorandum which provides some fairly detailed recommendations (with justifications) for what we regard to be desirable changes to the MOU. We have also attached copies of revised Exhibits C (O&M cost sharing) and D (Roles and Responsibilities) which we believe are more appropriate than the versions sent out by Angela on Tuesday evening and better reflect the revised responsibilities for intertie construction that we believe were recently agreed to by the new Trinity City Manager and Paul.
We think that it is very important to meet ASAP to discuss the recommendations that we suggest. We would like to see this emergency intertie constructed! Dave Hankin, WCSD Board Vice-President, on behalf of the WCSD Intertie Subcommittee 3/6/25, 4:54 PM
https://outlook.office365.com/mail/inbox/id/AAMkADk0NGJkMWY1L…1hRIvVPxwIY6IGAAAAAAEMAAAsoB4VKN1hRIvVPxwIY6IGAAD6q72LAAA%3D Page 2 of 3 (Hankin, Rosenblatt, Llanos)
On Tue, Mar 4, 2025 at 7:10PM Acather Trinidad <[email protected]> wrote:
Hello Paul,
Please find the MOU and Exhibits B - E attached that we are presenting to the City Council for approval at the March 11, 2025 meeting, pending final legal review. Due to our timeline, we are moving forward with the attached MOU without formal negotiations. Attempts were made by the City to schedule the negotiations, which staff will disclose to the City Council so they are aware.
If you and the Board have comments, please provide them by 2:00 pm on Thursday, March 6th.
If received, we will include them in the packet for the City Council to review and consider.
To note, one change that will be made prior to inclusion into the City Council packet is a statement that both the City and WCSD will abide by the guidelines/rules and regulations as stated in the Grant Agreement.
Thank you,
Angela
Angela Cather
Grant and Project Coordinator
City of Trinidad
PO Box 390
463 Trinity Street
Trinidad, CA 95570
707.499.7659
From: Acather Trinidad <[email protected]>
Sent: Wednesday, February 19, 2025 11:20 AM
To: 'Paul Rosenblatt' <[email protected]>; Antonio Llanos <[email protected]>; 'David G Hankin' <[email protected]> Cc: Citymanager Trinidad <[email protected]>; Cityclerk Trinidad <[email protected]>; Rpricehall Trinidad <[email protected]> Subject: Re: City and WCSD Intertie Project - MOU Negotiations Hello again,
I'm following up on my email below regarding MOU negotiations. This item is a high priority on our to-do list for this project.
-Angela
3/6/25, 4:54 PM
https://outlook.office365.com/mail/inbox/id/AAMkADk0NGJkMWY1L…1hRIvVPxwIY6IGAAAAAAEMAAAsoB4VKN1hRIvVPxwIY6IGAAD6q72LAAA%3D Page 3 of 3 From: Acather Trinidad <[email protected]>
Sent: Friday, February 14, 2025 2:57 PM
To: 'Paul Rosenblatt' <[email protected]>; Antonio Llanos <[email protected]>; 'David G Hankin' <[email protected]> Cc: Citymanager Trinidad <[email protected]>; Cityclerk Trinidad <[email protected]>; Rpricehall Trinidad <[email protected]> Subject: City and WCSD Intertie Project - MOU Negotiations Hello Paul, Antonio, and David,
I'm reaching out to confirm if the WCSD Board voted to move forward with MOU negotiations. As we need to complete designs by April 14, 2025, we should schedule a meeting to begin negotiations as soon as possible.
If the Board voted to move forward and begin negotiations, please advise who will be attending the meeting, so I can begin outreach to schedule a date and time.
Thank you,
Angela
Angela Cather
Grant and Project Coordinator
City of Trinidad
PO Box 390
463 Trinity Street
Trinidad, CA 95570
707.499.7659
WCSD Subcommi,ee Recommenda2ons for Revisions to Emergency Inter2e Memorandum of Understanding
Paul Rosenbla, (District Manager), Antonio Llanos (Board President) and I (Board VicePresident) have discussed the proposed revisions to the MOU as well as the addiDonal a,achments (Exhibits B-D) that Angela passed on to us. Overall, we think that we are geJng close to an agreement that will be saDsfactory to both the City and the District. We want to extend a special thanks and recogniDon to the City for the fine job that was done with revision of the amended budget so that responsibility for construcDon and construcDon observaDon could be passed to a local firm (GHD) rather than relying upon the District and PACE. That has resulted in considerable savings which can be “shared” across the full project.
We do, of course, have numerous recommendaDons for changes in the MOU as well as some of the Exhibits. We summarize these below:
MOU:
1. In part E of the recitals, we believe that “(including funds already contributed by the City)” should be deleted. According to Exhibit B, the original Grant amount was $1,856,600 (the amount listed in part E). We believe that there is no need for this phrase to be included in part E of the MOU.
2. In item 3 of the lisDng of terms of the MEMORANDUM OF UNDERSTANDING, concerning possible cost overruns, we request that the following language - “at the following percentages: 50.00% City and 50.00% District.” - be replaced by:
“at percentages that correspond to the relaAve average monthly water sales of the ParAes.
Thus, if City water sales are 2x those of District water sales, then addiAonal funds shall be contributed as 66.66% City and 33.33% District.”
This kind of language was in the “last version” of the original MOA that Paul, Antonio and I have and seems more equitable to all of us. The District relies on water sales as its sole source of revenue for covering a potenDal expense like this. The $15,000 City contribuDon would be counted toward the City’s share of cost overruns if such exist. Thus, the District would provide a proporDonal match to this $15,000 based on relaDve water sales (e.g., $7,500 is the amount the District would contribute to match the $15,000 if cost sharing were 2:1).
3. For item 8 of the lisDng of terms of the MEMORANDUM OF UNDERSTANDING, we request that 8.a becomes 8.b, and that 8.b becomes 8.a. This would clarify that the operators can take independent and immediate acDon when and if an emergency takes place and that only afer they have taken iniDal acDon would it be necessary to convene subcommi,ees of the City or District to determine if it were necessary to “declare” an emergency. The exisDng order of lisDng might be construed to imply that the subcommi,ees would need to convene and declare an emergency before the operators could respond to one. That seems counter to effecDve response to a water emergency.
We also request that the first sentence of the last paragraph on page 4 of the MOU be changed to the following language:
A declaration of a water emergency shall cause each party to notify customers of the emergency and to immediately implement water conservation measures.
4. Item 12 of the revised MOU, RESPONSIBILITIES OF CITY, does not seem to have been revised so as to be consistent with the revised Exhibit C which substanDally revises finances and implicit responsibiliDes of the District and City. We believe that the City can best develop revised language for this item.
5. Item 14 of the MEMORANDUM OF UNDERSTANDING, “RESPONSIBILITIES OF THE DISTRICT”, needs to be modified so that it is consistent with the revision of the budget. Our impression is that this item has also not been revised since the earlier draf MOA. More on this issue is considered below under Exhibit D of the revised agreement (erroneously labeled as Exhibit C).
See our suggested revisions to Exhibit D.
6. Item 15: We do not understand the intenDon of Item 15, but if there needs to be an understanding that the District needs to respond to the City in a Dmely fashion, then we request that there is a similar item concerning the need for the City to respond to the District in a Dmely fashion. We believe that this Item could be deleted.
7. Item 16 of the MEMORANDUM OF UNDERSTANDING needs to be revised so that responsibiliDes for tesDng the interDe and pump staDon and puJng them into operaDon are jointly shared rather than solely the responsibility of the District. Again, this item does not seem to have been revised relaDve to the original draf MOA.
8. For Item 17, PAYMENT, rather than billing for transferred water at the lower of either Party’s current commodity rate, we suggest that billing should be at no more than 50% of the lower of either Party’s commodity rate. The intenDon of the emergency interDe is to allow our two water systems to mutually support one another during Dmes of an emergency, not to realize an unexpected “windfall profit” or “extreme cost” due to an emergency. We also note that these would be “bulk deliveries” rather than typical deliveries to individual customers. If there are addiDonal electrical substanDal costs of pumping water from Trinidad to WCSD during emergency water transfers, then that cost should be borne by the District.
EXHIBIT B: (Financial ResponsibiliDes)
We have reviewed the modified assignment of costs proposed for the Amended agreement and have no substanDve disagreements with them. As noted in our introductory remarks, we very much appreciate the effort that the City has expended to develop these revised costs.
EXHIBIT C: (O&M cost apporDonment)
We have the following suggesDons for changing the entries in Exhibit C (see revised Exhibit C):
a. The District offers to be 100% responsible for flushing hydrants, exercising valves, and collecDng water samples on an ongoing quarterly basis.
b. Given the locaDon of the pump staDon, we believe that the City should be 100% responsible for periodic “exercising” of the pump to ensure that it will be ready to operate in the event of an emergency, and for periodic calibraDon of the flow meter. c. Costs of minor repairs to the waterline and pump, bateriological tests, and flow meter calibraDon, would be shared 50:50 between the District and the City. d. Costs of major repairs and of eventual pump replacement would be shared according to the respecDve average monthly water sales of the City and the District.
EXHIBIT D: (Roles and ResponsibiliDes)
Some of these roles and responsibiliDes do not seem to have been revised consistent with the revision in responsibiliDes indicated by Exhibit B. These include (see revised Exhibit D):
a. Task 2: ReporDng. Listed WCSD responsibiliDes should be moved to City. WCSD will “assist City in developing Project CompleDon Report and preparing Post-Performance Reports.” b. Task 8. Budget Category (c): Planning/Design/Engineering/Environmental DocumentaDon.
City should be responsible for “Project Monitoring Plan”, not District. c. Task 10. WCSD will have responsibility for record drawings. City (GHD) will need to provide detailed markups so that PACE can create the record drawings. WCSD and City will share responsibility for environmental compliance. City should be responsible for project closeout as it is taking the lead in project administraDon.
WCSD’s Requested Revisions
Trinidad-Westhaven Emergency Intertie Memorandum of Understanding Exhibit C
Intertie Facility Operations and Maintenance Cost Apportionment Distribution BUDGET CATEGORY Frequency WCSD City
Flush Hydrants quarterly X
Exercise valves quarterly X
Collect water samples for bacteriological analysis quarterly X Periodic Pump “exercising” periodic X
Test & calibrate flow meter periodic X
Costs for bacteriological analysis, flow meter calibration quarterly 50% 50% Pump repairs and other minor repairs as needed 50% 50%
Major repairs to constructed waterlines, etc. as needed TBD* TBD* Pump replacement end of useful life TBD* TBD*
TDB* - Cost sharing to be based on relative average monthly water sales of WCSD and the City.
WCSD’s Requested Revisions
Trinidad-Westhaven Emergency Intertie Memorandum of Understanding Exhibit C: Trinidad-Westhaven Emergency Intertie - Roles and Responsibilities City WCSD Budget Category (a): Project Administration
Task 1: Project Management (includes invoices and associated backup documentation) X required to submit information to Grantee Task 2: Reporting (includes quarterly progress reports, documentation of Acknowledgment of Credit & Signage, Advance Pay-Funding Plan and Accountability report, project completion report, grant completion report, and post-performance reports)
City will submit to DWR quarterly progress
reports, documentation of Acknowledgement
of Credit and Signage, AP Reports. The City
will submit the Grant Completion Report to
DWR, in collaboration with WCSD. WCSD will
submit the Project Completion Report (no
later than 90 days after the project has
concluded) and Post-Performance Reports
(shall be submitted to the State within ninety
(90) calendar days after the first operational
year of a project has elapsed. This record
keeping and reporting process shall be
repeated annually for a total of three (3)
years after the project begins operation) to
DWR.
WCSD will submit the Project Completion Report
(no later than 90 days after the project has
concluded) and Post-Performance Reports (shall
be submitted to the State within ninety (90)
calendar days after the first operational year of
a project has elapsed. This record keeping and
reporting process shall be repeated annually for
a total of three (3) years after the project begins
operation) to DWR. WCSD City will assist WCSD
City in completing the reports.
Budget Category (b): Land Purchase/Easement
Task 3: Not applicable
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies (includes all relevant feasibility studies) X Task 5: CEQA Documentation (includes all completed CEQA documents and Legal Challenges Letter) X
Task 6: Permitting (permits as required) X
Task 7: Design - (includes BODR, Design Plans and Specs, OPCC, etc.) With City review X Task 8: Project Monitoring Plan With City reviewX X
Construction
Task 9: Contract Services (includes Bid documents, Proof of Advertisement, AOC, NTP, etc.)
City will develop the front end specifications.
The City will handle reviews of the contract
documents by the City Attorney, funders,
insurance broker, and others as needed.
WCSD will provide the bid schedule to be
included in the front end specifications. WCSD
will provide the measurement and payment
section of the technical specifications that
reflect the bid schedule.
Task 10: Construction Administration (includes DWR Certificate of Project Completion, record drawings, construction management, construction observation, environmental compliance, etc.)
City will be responsible for construction
management and observation, and closeout.
City will share responsibilities for
environmental compliance, and will provide
WCSD with detailed as-built markups for
development of record drawings
WCSD will be responsibleshare responsibility for
environmental compliance, and closeout will
produceincluding record drawings. WCSD will
provide support as appropriate.
Task 11: Construction - (includes photographic documentation of progress) X WCSD will provide support in documentation Post Construction
Operations and Maintenance Each entity will perform O&M on equipment (valves, hydrants, etc.), with the exception of the pump (located on City property) which shall be maintained equally (50/50), within their district at the frequency and cost apportionment as outlined in Exhibit B - Intertie Facility Operations and Maintenance Cost Apportionment. See revised O&M, Exhibit C. *All items that require negotiation may require the budget (Exhibit B) to be adjusted between entities.
DISCUSSION AGENDA ITEM 2
NO SUPPORTING DOCUMENTATION SUBMITTED
2. Discussion/Decision to Accept FY2022-2023 Audit.
March 3, 2025
JJACPA, Inc.
7080 Donlon Way, Suite 204
Dublin, CA 94568
This representation letter is provided in connection with your audit of financial statements of the governmental activities, business-type activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Trinidad (City) as of June 30, 2021 and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City in conformity with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material.
Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of March 3, 2025:
Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated July 16, 2024, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• We have reviewed, approved, and taken responsibility for the financial statements and related notes.
• We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
• Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
• Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
• All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified.
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, and GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. • All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved.
• Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
• All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. • All interfund and intra-entity transactions and balances have been properly classified and reported.
• Special items and extraordinary items have been properly classified and reported. • Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
• All required supplementary information is measured and presented within the prescribed guidelines.
• With regard to investments and other instruments reported at fair value:
- The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. - The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. - The disclosures related to fair values are complete, adequate, and in conformity with U.S. GAAP.
- There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.
Information Provided
• We have provided you with:
- Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; - Additional information that you have requested from us for the purpose of the audit; and
- Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
• All transactions have been recorded in the accounting records and are reflected in the financial statements.
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
- Management;
- Employees who have significant roles in internal control; or - Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, vendors, regulators, or others.
• We are not aware of any pending or threatened litigation and claims whose effects should be considered when preparing the financial statements.
• We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware. • There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices.
• The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year.
Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
CITY OF TRINIDAD
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND
COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2023
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
March 3, 2025
City Council
City of Trinidad
Trinidad, California
We have audited the basic financial statements of the City of Trinidad (City) as of and for the year ended June 30, 2023 and have issued our report thereon dated March 3, 2025. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated July 16, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.
There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2022-23. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments
The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”).
Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g. infrastructure) as well as industry standards, when applicable (i.e. buildings).
We evaluated the key factors and assumptions used to develop the useful lives and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies.
Significant Difficulties Encountered during the Audit
Although we ultimately received full cooperation of management and believe that we were given direct and unrestricted access to the City’s officials and senior management, we experienced significant difficulties in the performance of the audit owing to unreasonable delays by management in the overall audit process. These unreasonable delays, such as the delay of management’s review of the financial statements, significantly added to the time and related cost of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.
None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in an attached letter dated March 3, 2025.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Communication of Internal Control Related Matters
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be significant deficiencies. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2023-001 that we consider to be a material weakness.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
]ÉáxÑ{ ] TÜv{?VcT
JOSEPH J ARCH, CPA
President/CEO
JJACPA, INC
City of Trinidad
Schedule of Findings and Responses
For the year ended June 30, 2023
Section I – Financial Statement Findings
Finding 2023-001
Material Weakness of Noncompliance with California Government Code – Filing Deadline Expiration
Criteria: California Government Code, Section 26909, (a) (2), requires Cities to file an annual audit of the accounts and records with the California State Controller within 12 months of the end of the fiscal year.
Condition: For the year ended June 30, 2023 the City of Trinidad (City) did not file an annual audit of the accounts and records with the California State Controller within 12 months of the end of the fiscal year.
Cause: Management of the City has not implemented procedures to meet the filing requirements outlined in the California Government Code.
Effect: By not filing the appropriate reports with the State Controller, the City is in violation of the California Government Code. The information reported to the public and other government agencies is not timely or relevant to current City operations.
Recommendation: Management should file the audited financial statements for the year ended June 30, 2023 immediately. Additionally, the City should implement procedures for meeting the filing requirements outlined in the California Government Code in order to provide timely reporting for the fiscal year ended June 30, 2023.
Responsible Official’s Response:
Section II – Status of Prior Year Audit Findings
None were reported by a predecessor auditor.
CITY OF TRINIDAD, CALIFORNIA
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
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City of Trinidad, California
Basic Financial Statements
For the year ended June 30, 2023
Table of Contents
i
Page
Table of Contents .................................................................................................................................. i List of Officials ................................................................................................................................... iii Independent Auditors’ Report ........................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ....................... 4 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .......................................................................................................... 7 Statement of Activities .............................................................................................................. 8 Fund Financial Statements:
Governmental Funds
Balance Sheet ................................................................................................................................ 12 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position ........................................................................................................ 13 Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position – Governmental Activities ............................................................. 14 Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ................................................................................ 15 Reconciliation of Fund Basis Statements to Government-wide Statement of Activities ............................................................................................................ 16 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................... 17 Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget to Actual – General Fund and
Major Special Revenue Funds ................................................................................................. 18
INTRODUCTORY SECTION
FINANCIAL SECTION
City of Trinidad, California
Basic Financial Statements
For the year ended June 30, 2023
Table of Contents, Continued
ii
Page
Basic Financial Statements, Continued:
Fund Financial Statements, Continued:
Proprietary Funds:
Statement of Net Position – Enterprise Funds .............................................................................. 20 Statement of Revenues, Expenses, and Changes in Fund Net Position – Enterprise Funds ................................................................................................................ 21 Statement of Cash Flows – Enterprise Funds ............................................................................... 22 Notes to Basic Financial Statements .......................................................................................... 27 Other Supplemental Information:
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................................. 52 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................... 56 Nonmajor Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Integrated Waste Management ........................................................... 60 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – COPS Program ................................................................................... 61 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Transportation Development Agency ................................................ 62 Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................... 63 City of Trinidad, California
Basic Financial Statements
For the year ended June 30, 2023
List of Officials
iii
Cheryl Kelly, Mayor
Bryce Kenny, Mayor Pro Tem
Carrie Varela, Member
Kati Breckenridge, Member
Jack Tuttle, Member
Joe Tagliaboschi, City Manager
Gabriel Adams, City Clerk
CITY COUNCIL
CITY OFFICIALS
iv
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7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
of the City of Trinidad
Trinidad, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Trinidad (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and City Council
of the City of Trinidad
Trinidad, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information..
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City of Trinidad’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the financial statements.
To the Honorable Mayor and City Council
of the City of Trinidad
Trinidad, California
The combining funds financial statements on pages 52-62 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 3, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
]]TVcT? \ÇvA
March 3, 2025 JJACPA, Inc.
Dublin, CA
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BASIC FINANCIAL STATEMENTS
5 This page intentionally left blank.
6 City of Trinidad, California
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and investments $ 1,735,223 $ 428,864 $ 2,164,087
Receivables 709,828 596,380 1,306,208
Prepaid expenses 8,116 4,543 12,659
Internal balances 447,132 (447,132) -
Total current assets 2,900,299 582,655 3,482,954
Noncurrent assets:
Capital assets:
Nondepreciable 43,778 25,090 68,868
Depreciable 2,514,142 1,173,330 3,687,472
Total noncurrent assets 2,557,920 1,198,420 3,756,340
Total assets 5,458,219 1,781,075 7,239,294
LIABILITIES
Accounts payable $ 157,996 $ 96,703 $ 254,699
Accrued expenses 28,879 11,122 40,001
Customer deposits - 2,980 2,980
17,246 17,246
Total liabilities 186,875 128,051 314,926
NET POSITION
Net investment in capital assets 2,557,920 1,198,420 3,756,340 Restricted 253,324 270,000 523,324
Unrestricted 2,460,100 184,604 2,644,704
Total net position 5,271,344 1,653,024 6,924,368
Total liabilities and net position $ 5,458,219 $ 1,781,075 $ 7,239,294 The accompanying notes are an integral part of these basic financial statements. 7 City of Trinidad, California
Statement of Activities
For the year ended June 30, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:
Governmental activities:
General government $ 62,529 525,336 $ 44,412 $ - $
Public safety 270 182,880 - 214,891
Public works/streets 1,316,496 5,350 468,965 703,135
Total governmental activities 2,056,723 68,149 696,257 703,135 Business-type activities:
Water utility 303,952 1,957,655 - 1,132,806
Cemetery 16,863 21,285 - -
Total business-type activities 1,978,940 320,815 - 1,132,806 Total primary government $ 388,964 4,035,663 $ 696,257 $ 1,835,941 $ General revenues:
Taxes:
Property taxes
Sales tax
Transient occupancy tax
Motor vehicle in-lieu fees
Use of property
Investment earnings
Other general revenues
Total general revenues
Change in net position
Net position:
Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 8 Governmental Business-Type
Activities Activities Totals
$ (418,395) $ - $ (418,395)
(31,741) - (31,741)
(139,046) - (139,046)
(589,182) - (589,182)
- (520,897) (520,897)
- (4,422) (4,422)
- (525,319) (525,319)
$ (589,182) $ (525,319) $ (1,114,501)
132,917 $ - $ 132,917
403,639 - 403,639
174,657 - 174,657
39,959 - 39,959
64,493 - 64,493
38,074 1,363 39,437
18,320 - 18,320
872,059 1,363 873,422
282,877 (523,956) (241,079)
4,988,467 2,176,980 7,165,447
$ 5,271,344 $ 1,653,024 $ 6,924,368
Net (Expense) Revenue and
Changes in Net Position
9 This page intentionally left blank.
10 Fund
Governmental Funds:
General Fund
Prop 84 Stormwater
Grant
This fund accounts for the operations of the City’s Proposition 84 Stormwater Grant.
FUND FINANCIAL STATEMENTS
Description
MAJOR FUNDS
The Fund Financial Statements present only individual major funds, while non-major funds are combined in a single column. Major funds are defined as having significant activities or balances in the current year.
This fund is the general operating fund of the City which accounts for all financial resources except those legally or administratively required to be accounted for in other funds. 11 City of Trinidad, California
Balance Sheet
Governmental Funds
June 30, 2023
Prop 84 Other
General Stormwater Governmental
Fund Grant Funds Totals
ASSETS
Cash and investments $ - 1,467,870 $ 267,353 $ 1,735,223 $ Receivables 169,099 262,092 278,637 709,828
Prepaid expenses 7,972 - 144 8,116
Due from other funds 882,548 - 882,548 -
Total assets $ 2,527,489 $ 262,092 $ 546,134 $ 3,335,715
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 28,243 31,650 98,103 $ $ 157,996
Accrued expenses 28,841 - 38 28,879
Due to other funds 230,542 204,874 - 435,416
Total liabilities 57,084 262,192 303,015 622,291
Fund balances:
Nonspendable $ 7,972 $ - $ 106 $ 8,078
Restricted - 253,324 - 253,324
Committed 1,154,475 - 1,154,475 -
Assigned - - 32,729 32,729
Unassigned 1,307,958 (100) (43,040) 1,264,818
Total fund balances 2,470,405 (100) 243,119 2,713,424
Total liabilities and fund balances $ 2,527,489 $ 262,092 $ 546,134 $ 3,335,715 The accompanying notes are an integral part of these basic financial statements. 12 City of Trinidad, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2023
Total fund balances - governmental funds $ 2,713,424
2,557,920
Net position of governmental activities $ 5,271,344
The accompanying notes are an integral part of these basic financial statements.
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.
13 City of Trinidad, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2023
Governmental
Funds Changes Statement of
Balance Sheet Reclassifications in GAAP Net Position
ASSETS
Current assets:
Cash and investments $ 1,735,223 $ - $ - $ 1,735,223
Receivables 709,828 - - 709,828
Prepaid expenses 8,116 - - 8,116
Due from other funds 882,548 (882,548) - -
Internal balances - 447,132 - 447,132
Total current assets 3,335,715 (435,416) - 2,900,299
Noncurrent assets:
Capital assets, net - - 2,557,920 2,557,920
Total noncurrent assets - - 2,557,920 2,557,920
Total assets 3,335,715 (435,416) 2,557,920 5,458,219
LIABILITIES
Accounts payable $ 157,996 $ - $ - $ 157,996
Accrued expense 28,879 - - 28,879
Customer deposits - - - -
Due to other funds 435,416 (435,416) - -
Total liabilities 622,291 (435,416) - 186,875
FUND BALANCES/NET POSITION
Fund balances:
Nonspendable $ 8,078 $ (8,078) $ - $ -
Restricted 253,324 (253,324) - -
Committed 1,154,475 (1,154,475) - -
Assigned (32,729) 32,729 - -
Unassigned 1,264,818 (1,264,818) - -
Net position:
Net investment in capital assets - - 2,557,920 2,557,920 Restricted - - 253,324 253,324
Unrestricted 2,713,424 - (253,324) 2,460,100
Total fund balances/ net position 2,713,424 - 2,557,920 5,271,344 Total liabilities and net position $ 3,335,715 $ (435,416) $ 2,557,920 $ 5,458,219 The accompanying notes are an integral part of these basic financial statements. 14 City of Trinidad, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Prop 84 Other
General Stormwater Governmental
Fund Grant Funds Totals
REVENUES:
Property taxes $ - 132,917 $ - $ 132,917 $
Sales tax 403,639 - - 403,639
Transient occupancy tax 174,657 - - 174,657
Vehicle license fees 39,959 - - 39,959
Building and planning fees 54,813 - 5,300 60,113
Intergovernmental/grants 2,538 636,499 760,355 1,399,392 Rent and franchise fees 51,660 - 12,833 64,493
Business licenses and fees 8,036 - - 8,036
Investment earnings 36,724 - 1,350 38,074
Other revenues 18,320 - - 18,320
Total revenues 636,499 923,263 779,838 2,339,600
EXPENDITURES:
Current:
General government $ - 446,127 $ 5,436 $ 451,563 $
Public safety 37,722 177,169 - 214,891
Public works/streets 195,865 636,592 484,039 1,316,496
Total expenditures 679,714 636,592 666,644 1,982,950
REVENUES OVER (UNDER)
EXPENDITURES 243,549 (93) 113,194 356,650
OTHER FINANCING SOURCES (USES):
Transfers in - 43,520 - 43,520
Transfers out (43,520) - (43,520) -
Total other financings sources (uses) (43,520) 43,520 - - Net change in fund balances 200,029 (93) 156,714 356,650 FUND BALANCES:
Beginning of year 2,270,376 (7) 86,405 2,356,774
End of year $ (100) 2,470,405 $ 243,119 $ 2,713,424 $
The accompanying notes are an integral part of these basic financial statements. 15 City of Trinidad, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2023
Capital
Asset
(Additions),
Fund Based Retirements & Government-wide
Functions/Programs Totals Depreciation Adjustments Totals Governmental activities:
General government $ 73,773 451,563 $ - $ 525,336 $
Public safety - 214,891 - 214,891
Public works/streets - 1,316,496 - 1,316,496
Total governmental activities $ 73,773 1,982,950 $ - $ 2,056,723 $ The accompanying notes are an integral part of these basic financial statements. 16 City of Trinidad, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2023
Net change in fund balances - governmental funds $ 356,650 Depreciation expense (73,773)
Change in net position of governmental activities $ 282,877 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:
The accompanying notes are an integral part of these basic financial statements. 17 City of Trinidad, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property taxes $ 111,625 $ 111,625 $ 132,917 $ 21,292
Sales tax 351,900 351,900 403,639 51,739
Transient occupancy tax 125,000 125,000 174,657 49,657
Vehicle license fees 28,800 28,800 39,959 11,159
Building and planning fees 32,400 32,400 54,813 22,413
Intergovernmental/grants 10,000 10,000 2,538 (7,462)
Rent and franchise fees 38,725 38,725 51,660 12,935
Business licenses and fees 8,850 8,850 8,036 (814)
Investment earnings 15,300 15,300 36,724 21,424
Other revenues 9,000 9,000 18,320 9,320
Total revenues 731,600 731,600 923,263 191,663
EXPENDITURES:
Current:
General government 493,562 493,562 446,127 47,435
Public safety 79,615 79,615 37,722 41,893
Public works/streets 185,225 185,225 195,865 (10,640)
Capital outlay - - - -
Total expenditures 758,402 758,402 679,714 78,688
REVENUES OVER (UNDER)
EXPENDITURES (26,802) (26,802) 243,549 270,351
OTHER FINANCING SOURCES (USES):
Transfer In - - - -
Transfer out - (43,520) - 43,520
Total other financing sources (uses) - (43,520) - 43,520 Net change in fund balances (26,802) (26,802) 200,029 313,871 FUND BALANCES:
Beginning of year 2,270,376 2,270,376 2,270,376 -
End of year $ 2,243,574 2,243,574 $ 2,470,405 $ 313,871 $ General Fund
Budgeted Amounts
The accompanying notes are an integral part of these basic financial statements. 18 Fund
MAJOR FUNDS:
Water Utility Fund
Cemetery Fund
PROPRIETARY FUNDS
Description
Proprietary funds account for City's operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
This fund accounts for the operations of the City’s water utility, a self-supporting activity which renders services on a user-charge basis to its customers.
This fund accounts for the operations and maintained of the City’s Cemetery through burial plot sales.
All of the City's Enterprise Funds have been identified as major proprietary funds. 19 City of Trinidad, California
Statement of Net Position
Proprietary Funds
June 30, 2023
Water Utilities Cemetery
Fund Fund Totals
ASSETS
Current assets:
Cash and investments 300,040 $ 128,824 $ 428,864 $
Receivables 596,380 - 596,380
Prepaid expenses 4,324 219 4,543
Total current assets 129,043 900,744 1,029,787
Noncurrent assets:
Capital assets, not being depreciated 25,089 $ 1 25,090 $ Capital assets, net of depreciation 1,170,965 2,365 1,173,330 Total non current assets 2,366 1,196,054 1,198,420 $
Total assets 131,409 2,096,798 2,228,207
LIABILITIES
Current liabilities:
Accounts payable 96,299 $ 404 $ 96,703 $
Accrued expenses 7,113 4,009 11,122
Customer deposits 2,980 - 2,980
Due to other funds 447,132 - 447,132
Compensated absences 17,246 - 17,246
Total liabilities 4,413 570,770 575,183 $
NET POSITION
Net investment in capital assets 1,196,054 $ 2,366 1,198,420 Restricted for capital projects 270,000 - 270,000
Unrestricted 59,974 124,630 184,604
Total net position 126,996 1,526,028 1,653,024
Total liabilities and net position $ 131,409 2,096,798 $ 2,228,207 $ The accompanying notes are an integral part of these basic financial statements. 20 City of Trinidad, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
Water Utilities Cemetery
Fund Fund Totals
OPERATING REVENUES:
Water sales 303,952 $ - $ 303,952 $
Burial plot sales - 16,863 16,863
Late charges - - -
Total operating revenues 16,863 303,952 320,815
OPERATING EXPENSES:
Personnel costs 278,424 17,864 296,288
Operations & maintenance 1,622,032 3,193 1,625,225
Depreciation 57,199 228 57,427
Total operating expenses 21,285 1,957,655 1,978,940
OPERATING INCOME(LOSS) (4,422) (1,653,703) (1,658,125)
NONOPERATING REVENUES
(EXPENSES)
Investment earnings - 1,363 1,363
Intergovernmental 1,132,806 - 1,132,806
Total non-operating revenues, net 1,363 1,132,806 1,134,169 CHANGE IN NET POSITION (3,059) (520,897) (523,956)
NET POSITION:
Beginning of year 2,046,925 130,055 2,176,980
End of year 1,526,028 $ 126,996 $ 1,653,024 $
The accompanying notes are an integral part of these basic financial statements. 21 City of Trinidad, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Water Utilities
Fund Cemetery Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 16,863 303,952 $ 320,815 $ Cash payments to employees for salaries and benefits (261,178) (17,864) (279,042) Cash payments for operations and maintenance (1,479) (1,618,465) (1,619,944) Net cash provided (used) by operating activities (2,480) (1,575,691) (1,578,171)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers received (paid) - 447,132 447,132
Net cash provided (used) by noncapital financing activities - 447,132 447,132
CASH FLOWS FROM CAPITAL AND FINANCING
ACTIVITIES:
Grants received - 634,456 634,456
Net cash provided (used) by capital and related financing activities 634,456 - 634,456 CASH FLOWS FROM INVESTING ACTIVITIES:
Investment earnings 1,363 - 1,363
Net cash provided (used) by investing activities 1,363 - 1,363 Net increase (decrease) in cash and cash equivalents (494,103) (1,117) (495,220) CASH AND CASH EQUIVALENTS:
Beginning of year 129,941 794,143 924,084
End of year $ 128,824 300,040 $ 428,864 $
Reconciliation of income (loss) from operations to net
cash provided (used) by operating activities:
Operating income (loss) $ (4,422) (1,653,703) $ (1,658,125) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Add depreciation, a noncash expense 228 57,199 57,427
(Increase) decrease in current assets:
Prepaid expenses (219) (4,324) (4,543)
Increase (decrease) in liabilities:
Increase (decrease) in payables/accruals 1,933 7,891 9,824 Compensated absences - 17,246 17,246
Net cash provided by operating activities $ (2,480) (1,575,691) $ (1,578,171) $ The accompanying notes are an integral part of these basic financial statements.
There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2023. 22 23
NOTES TO BASIC FINANCIAL STATEMENTS
24 This page intentionally left blank.
City of Trinidad, California
Basic Financial Statements
For the year ended June 30, 2023
Index to Notes to Basic Financial Statements
25 Page
Note 1 – Summary of Significant Accounting Policies ................................................................... 27 Note 2 – Stewardship, Compliance and Accountability ................................................................. 34 Note 3 – Cash and Investments ......................................................................................................... 36 Note 4 – Receivables .......................................................................................................................... 39 Note 5 – Payables ............................................................................................................................... 39 Note 6 – Capital Assets ...................................................................................................................... 40 Note 7 – Net Position/Fund Balances ............................................................................................... 41 Note 8 – Interfund Transactions ...................................................................................................... 44 Note 9 – Defined Contribution Retirement Plan ............................................................................ 45 Note 10 – Risk Management ............................................................................................................. 45 Note 11 – Commitments and Contingencies .................................................................................... 45 Note 12 – New Accounting Pronouncements ................................................................................... 46 Note 13 – Subsequent Events ............................................................................................................ 47 26 This page intentionally left blank.
City of Trinidad, California
Notes to Basic Financial Statements
For the year ended June 30, 2023
27 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Reporting Entity
The City of Trinidad was incorporated on November 7, 1870 under the laws of the State of California. The City operates under a Council-Manager form of government that provides the following services: public safety (police, fire and animal control), recreation and culture, public improvements, planning and zoning, general and administrative services, cemetery and water utilities.
The City participates in a joint powers agency through a formally organized and separate entity agreement.
The financial activities of the Public Agency Risk Sharing Authority of California (PARSAC), a public entity risk pool, are not included in the accompanying financial statements because they are administered by a governing board which is separate from and independent of the City.
The accounting policies of the City conform to accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA) as applicable to governments. The following is a summary of the more significant policies.
Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position, and the statement of activities) report information on all of the nonfiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenue, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenue. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenue includes (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenue are reported instead as general revenue. Expenses reported for functional activities include allocated indirect expenses.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the later are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
28 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self- balancing accounts that constitute its assets, liabilities, fund equity, revenue, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on Major funds within the governmental and proprietary categories. A fund is considered Major if it is the primary operation fund of the City, or the government has determined that a fund is important to the financial statement user, or it meets the following criteria:
Total assets, liabilities, revenue, or expenditures/expenses of that individual governmental fund or enterprise fund are at least 10% of the corresponding total for all funds of that category or type.
Total assets, liabilities, revenue, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.
The funds of the financial reporting entity are described below:
Governmental Fund Types
Governmental funds are those through which most general government functions typically are financed.
The City maintains the following fund types:
• General Fund - this fund accounts for all unrestricted resources except those required to be accounted for in another fund.
• Special Revenue Funds - these funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes.
• Capital Projects Funds - these funds are used to account for financial resources to be used for the acquisition, improvements or construction of streets, infrastructure and major capital projects. • Enterprise Funds - these funds are established to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the City is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Water Utilities Fund and the Cemetery Fund are reported as enterprise funds.
Major Funds
The following are the City’s major funds this year:
• General Fund - this fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
29 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued • Proposition 84 Stormwater Grant Project - this fund is used to account for proceeds received from a State grant. Revenue is restricted for the construction of improvements to the City’s stormwater sewer system and infrastructure.
• USDA Stormwater Grant Program - this fund is used to account for proceeds received from a Federal grant. Revenue is restricted for the matching fund requirements for construction of improvements to the City’s stormwater sewer system and infrastructure.
Measurement Focus
Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. The government-wide statement of net position and the statement of activities, and both governmental and business-type activities are presented using the economic resources measurement focus. The accounting objectives of the economic measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported.
In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used, as appropriate. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use “fund balance” as their measure of available spendable financial resources at the end of the period.
The proprietary fund utilizes an “economic resources” measurement focus. Proprietary fund equity is classified as net position.
Agency funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them.
Basis of Accounting
In the government-wide statement of net position, and in the statement of activities, both governmental and business-like activities are presented using the “accrual basis of accounting.” Under the accrual basis of accounting, revenue is recognized when earned, and expenses are recorded when the liability is incurred and the amount of obligation is ascertainable. Revenue, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
30 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued In the fund financial statements, governmental funds are presented on the “modified accrual basis of accounting.” Under this modified accrual basis of accounting, revenue is recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. Revenue which is susceptible to accrual includes property taxes and special assessments that are levied for and due for the fiscal year, and collected within 60 days after year-end. Licenses, permits, fines, penalties, charges for services, and miscellaneous revenue are recorded as governmental fund type revenue when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to finance expenditures of the fiscal period. Grant revenue, which is normally reimbursements of expenses under contractual agreements, is recorded as a receivable when earned rather than when susceptible to accrual. Generally, this occurs when authorized expenditures are made under the grant program or contractual agreement. Expenditures are recognized when the fund liability is incurred, if measurable, except for unmatured interest on long-term debt in the governmental funds, which is recognized when due.
Proprietary funds use the “accrual basis of accounting” which records the financial effect on an enterprise of transactions and other events and circumstances that have cash consequences for an enterprise in the periods in which those transactions, events and circumstances occur rather than only when cash is received or paid by the enterprise.
Budgetary Data
General Budget Policies: the City maintains budgetary controls of which the objective is to ensure compliance with legal provisions embodied in the annual budget approval by the City Council.
Budgetary control for operations is maintained at the department level by individual funds. Budgetary control for capital improvement projects (i.e., project-length financial plans) is maintained at the individual project level by fund. The City’s budgeted expenditure authority lapses at the end of each fiscal year. However, outstanding purchase order commitments or capital improvement projects may be re-appropriated for the subsequent fiscal year upon City Council approval.
Budget Basis of Accounting: budgets for governmental funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America as prescribed by the GASB and the AICPA. The Budgetary Comparison Schedule of the general fund presents comparisons of legally adopted budget amounts (both the original budget and final budget), and actual amounts, on the budgetary basis. The budgeting basis is substantially equivalent to the City's accounting basis; thus no reconciliation between the two is considered necessary.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
31 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Other Accounting Policies
Cash and Investments
The City follows the requirements of GASB in reporting cash and investments at fair value and disclosing risks related to credit risk, concentration of credit risk, interest rate risk and foreign currency risk, as applicable.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Capital Assets
Capital assets used in governmental fund type operations are accounted for on the statement of net position. Public domain general capital assets (infrastructure) consisting of certain improvements other than buildings, such as roads, sidewalks and bridges are capitalized prospectively starting July 1, 2003.
City policy has set the capitalization threshold for reporting capital assets at $5,000. Capital outlay is recorded as expenditures of the general and special revenue funds, and, as capital assets in the government-wide financial statements to the extent the City’s capitalization threshold is met. Donated assets are recorded at estimated fair value at the date of donation.
Property, plant and equipment acquired for proprietary funds are capitalized in the respective fund to which it applies and are stated at their cost. Where cost could not be determined from the available records, estimated historical cost was used to record the estimated value of the assets.
Depreciation is recorded on a straight-line basis over the estimated useful lives of the capital assets which range from 3 to 20 years for equipment and vehicles, and 20 to 50 years for infrastructure, buildings and improvements. Land, art and treasurers are not considered exhaustible, therefore are not being depreciated.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
32 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Compensated Absences
The City has established a liability for accrued vacation, except that additional accruals for salary-related expenses associated with the costs of compensated absences, for example, the employer’s share of social security and Medicare taxes, have not been accrued as that amount is not considered significant or material to the financial statements taken as a whole. All vacation pay is accrued when incurred in the government- wide and proprietary funds financial statements. This liability is established for current employees at their current rates of pay. If accrued vacation is not used by the employee during their term of employment, compensation is payable to the employee at the time of separation, and at the employee’s prevailing rate of pay. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the estimated current portion due within one year. Due to the immaterial amount of year end accrued compensated absences, the City has elected to report compensated absences as accrued expenses in all applicable funds.
Interfund Activity
Interfund activity is reported as loans, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation.
Reimbursements are when one fund incurs a cost and then charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers.
Transfers between governmental and proprietary funds are netted as part of the reconciliation to the government-wide financial statements.
Property Tax Revenue
Property taxes in the State of California are administered for all local agencies at the County level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
Property Valuations - are established by the Assessor of Humboldt County for the secured and unsecured property tax rolls; the utility property tax roll is valued by the California State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13, adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%.
However, increase to full value is allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.
Tax Levies - are limited to 1% of full assessed value which results in a tax rate of $1.00 per $100 assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
33 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Tax Levy Dates - are attached annually on January 1, preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership. Tax Collections - are the responsibility of the County's tax collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments: The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments. The City has elected to receive the City's portion of the property tax revenue from the County under the State enacted “Teeter Bill” program. Under this program, the City receives 100% of the City's share of the levied property taxes in periodic payments, with the County assuming responsibility for collecting the delinquencies as well as keeping the related late penalties and interest.
Tax Levy Apportionments - due to the nature of the City-wide maximum levy, it is not possible to identify general-purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by each County auditor-controller based primarily on the ratio that each agency represented of the total City-wide levy for the three fiscal years prior to fiscal year 1979. Property Tax Administration Fees - the State of California fiscal year 1990-91 Budget Act authorized Counties to collect an administrative fee for its collection and distribution of property tax revenue.
Revenue and Expenditures
Substantially all governmental fund revenue is accrued. Property taxes are billed and collected within the same period in which the taxes are levied. Subsidies and grants to proprietary funds, which finance either capital or current operations, are reported as non-operating revenue. In recording grant revenue, the provider recognizes liabilities and expenses and the recipient recognizes receivables and revenue when the applicable eligibility requirements, including time requirements, are met. Grant resources transmitted before eligibility requirements are met, are reported as advances by the provider and deferred revenue by the recipient.
Operating income in proprietary fund financial statements includes revenue and expenses related to the primary continuing operations of the fund. Principal operating revenue for proprietary funds are charges to customers for sales or services. Principal operating expenses are the costs of providing goods or services and include administrative expenses and depreciation of capital assets. Other revenue and expenses are classified as non-operating in the financial statements. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as needed. Expenditures are recognized when the related fund liability is incurred.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
34 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Net Position and Fund Balances
The City’s Net Position is classified as follows on the government-wide statement of net position:
Net Investment in Capital Assets - represents the City’s total investment in capital assets reduced by any outstanding debt used to acquire these assets.
Restricted Net Position - includes resources that the City is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties. Unrestricted Net Position - represents resources derived from sources without spending restrictions, are used for transactions relating the general operations of the City, and may be used at the discretion of those charged with governance to meet current expenses or obligations for any purpose.
Fund Balance designations are classified on the governmental funds balance sheet as follows:
• Nonspendable - amounts that cannot be spent because they are either (a) legally or contractually required to be maintained intact or (b) not in spendable form such as long-term notes receivable. • Restricted - amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. • Committed - amounts that can be used only for the specific purposes determined by a formal action of the City Council, to establish, modify or rescind a fund balance commitment. • Assigned - amounts that are constrained by the government’s intent to be used for specific purposes but do not meet the criteria to be classified as restricted or committed, as determined by a formal action or policy of the City Council or its appointed official. • Unassigned - the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.
2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Revenue Limitations Imposed by California Proposition 218 Proposition 218, which was approved by the voters in November 1996, regulates the City’s ability to impose, increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
35 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, Continued Dependence Upon Tourism Industry
The City is economically dependent on tourism generated tax dollars for providing revenue to its general fund, the primary operating fund of the City. The tourism industry accounts for all the transient occupancy taxes collected and a significant portion of all sales taxes collected. Property taxes, Rents and Franchise fees are also main contributors to the general fund. Consequently, a downturn in the tourism industry for the City could result in a substantial reduction in general fund revenue. In the event of such a downturn, the City may have insufficient resources in its general fund to pay all of its obligations or provide services to its citizens at the current level.
The following table shows what percentage these revenue sources provide to the City’s general fund:
2019 2020 2021 2022 2023
Property tax 14% 15% 16% 14% 14%
Sales & Use tax 37% 38% 46% 48% 44%
Transient Occupancy tax 18% 14% 13% 16% 19%
Rents & Franchise fees 8% 17% 12% 7% 6%
77% 84% 87% 85% 83%
Cash Deficit Balances by Fund
The following governmental activity funds reported year-end cash deficit balances:
Prop 84 Stormwater Grant $ 230,542
SB2 Planning Grant 31,489
HCD LEAP Grant 29,790
STIP Trinity St. Road Rehab 4,528
REAP Housing Grant HCAOG 309
OPC Coastal Resilience 70,303
HSIP Street Improvement 64,061
OGALS Per Capita 4,394
Drought Relief Tank & Pipelines 429,622
DWR Water Trank Project Grant 17,510
$ 882,548
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
36 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, Continued Deficit Fund Balances
Due to the City incurring costs in advance of receiving grant awards and other reimbursements, and revenue which it expects to recover in the future from grants and other sources, the following funds incurred deficits in their year-end fund balances:
Prop 84 Stormwater Grant $ 100
Integrated Waste Mgmt. 147
LCP Update Grant #3 8
SB 2 Planning Grant 47,724
COPS Program Grant 36,613
Onsite Wastewater Treatment System 1,815
STIP Trinity St. Road Rehab 210
OGALS Per Capita 4,394
$ 91,011
3. CASH AND INVESTMENTS
The City follows the practice of pooling cash and investments of all funds except for restricted funds required to be held by outside custodians, fiscal agents or trustees, under the provisions of bond covenants. Cash and investments at fiscal year-end are classified in the accompanying financial statements as follows:
Statement of Net Position June 30, 2023
Governmental Activities $ 1,735,223
Business-type Activities 428,864
2,164,087
Cash and Investments consist of the following:
Local Agency Investment Fund $ 2,013,870
Deposits with financial instiutions 150,117
Petty cash 100
$ 2,164,087
Collateral and Categorization Requirements
At fiscal year end, the City’s carrying amount of demand deposits was $150,117 and the local bank account balances were $242,639. The difference represented outstanding checks and deposits in transit.
Of the total bank deposit balance, $250,000 was insured by Federal Depository Insurance Corporation (FDIC) and $0 was collateralized in accordance with California Government Code Section 53600.
California law requires that the fair value of the pledged securities must equal at least 110% of the City’s deposits. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
37 3. CASH AND INVESTMENTS, Continued
Investments in money market funds and the Local Agency Investment Fund (LAIF) are not insured by the FDIC or any government agencies. Investments in government or government sponsored entity (GSE) bonds are not insured but are collateralized by loans on real estate.
Investment Policy
The table below identifies the investment types that are authorized under provisions of the City’s investment policy which is in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment Minimum
Authorized Investment Type Maturity of Portfolio in One Issuer Rating Certificates of Deposit 3 years 20% None None
U.S. Treasury Securities None None None None
Local Agency Investment Fund None None None N/A
State and Local Agency Obligations None 20% None AAA
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any single issuer as described above, and beyond that stipulated by the California government code. Investments at fiscal year-end were as follows:
Investment Type Fair Value Maturity Yield Concentration Local Agency Investment Fund 2,013,870 $ on demand 2.17% 93% Demand Deposits (checking) on demand 0.05% 7% 150,117
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy limits credit risk by requiring compliance with the California Government Code for investment of public funds.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
38 3. CASH AND INVESTMENTS, Continued
The credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: “The California government code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.”
The credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted in active markets; • Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and, • Level 3: Investments reflect prices based upon unobservable sources.
Investments in LAIF are uncategorized as deposits and withdrawals are made on the basis of $1 and not fair value. Amounts are recorded on an amortized cost basis which approximates fair value.
Participation in an External Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF). LAIF, established in 1977, is regulated by California Government Code Section 16429 and under the day to day administration of the California State Treasurer. There is a five member Local Investment Advisory Board that is chaired by the State Treasurer. LAIF determines fair value of its investment portfolio based on market quotations for those securities where market quotations are readily available, and on amortized cost or best estimate for those securities where market value is not readily available. LAIF is part of the Pooled Money Investment Account (PMIA) and under the control of the State Treasurer’s Office, which is audited by the Bureau of State Audits. As of June 30, 2023, LAIF had approximately $25.7 billion in investments. Audited financial statements of PMIA may be obtained from the California State Treasurer’s web site at www.treasurer.ca.gov.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
39 3. CASH AND INVESTMENTS, Continued
The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
4. RECEIVABLES
Receivables consisted of the following at June 30, 2023:
Governmental Activities
Sales tax 91,539 $
Property tax 30,407
Grants 538,441
Other receivables 49,441
Total 709,828 $
Business-type Activities
Water fund customers 82,691 $
Water fund grants 513,689
Total 596,380 $
Management has elected to record bad debts using the direct write-off method. Accounting principles generally accepted in the United States of America require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed.
5. PAYABLES
Accounts payable as reported in the Statement of Net Position are comprised of the following:
Governmental Business-type
Activities Activities
Legal and accounting 1,194 $ 643 $
Contractors/engineering/Consultants 144,710 90,930
Utilities 1,881 3,590
Vendors and supplies 10,211 1,540
$ 96,703 157,996 $
Accrued expenses as reported in the Statement of Net Position comprise accrued compensation, related payroll taxes and benefits.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
40 6. CAPITAL ASSETS
Governmental capital asset activity the year ended June 30, 2023, was as follows:
Balance Balance
June 30, 2022 June 30, 2023
Governmental activities:
Nondepreciable assets:
Land 43,778 $ - $ - $ 43,778 $
Total nondepreciable assets - 43,778 - 43,778
Depreciable assets:
Buildings, Improvements, and Streets 3,259,858 - - 3,259,858 Equipment 83,737 - - 83,737
Vehicles 75,275 - 75,275
Total depreciable assets - 3,418,870 - 3,418,870
Total - 3,462,648 - 3,462,648
Accumulated depreciation: (73,773) (830,955) (904,728)
Net depreciable assets (73,773) 2,587,915 - 2,514,142
Total net capital assets $ (73,773) 2,631,693 $ - $ 2,557,920 $ Additions Deletions
Business-type Capital asset activity for the year ended June 30, 2023, was as follows:
Balance Balance
June 30, 2022 Additions Deletions June 30, 2023
Business-type activities:
Nondepreciable assets:
Water utility - land 25,089 $ - $ - $ 25,089 $
Cemetery - land 1 1
Total nondepreciable assets - 25,089 - 25,090
Depreciable assets:
Water utility 2,436,669 - - 2,436,669
Cemetery building 7,964 - - 7,964
Total depreciable assets - 2,444,633 - 2,444,633
Total - 2,469,722 - 2,469,723
Accumulated depreciation:
Water utility (1,208,505) (57,199) - (1,265,704)
Cemetery building (5,372) (227) - (5,599)
Total accumulated depreciation (57,426) (1,213,877) - (1,271,303) Net depreciable assets (57,426) 1,230,756 - 1,173,330
Total net capital assets $ (57,426) 1,255,845 $ - $ 1,198,420 $ City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
41 7. NET POSITION/ FUND BALANCES
Net Position
Governmental Business-type
Activities Activities
Net investment in capital assets 2,557,920 $ 1,198,420 $ Restricted 253,324 270,000
Unrestricted 2,460,100 184,604
Total 5,271,344 $ 1,653,024 $
Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
42 7. NET POSITION/ FUND BALANCES, Continued
Fund Balance
Fund balance consisted of the following at June 30, 2023:
Nonspendable:
Major Funds:
General Fund 7,972 $
Nonmajor Funds:
Integrated Waste Mgmt 106
Total Nonspendable $ 8,078
Restricted:
Nonmajor Funds:
Budget Act COVID 119,572 $
State Gas Tax Fund 36,819
Transportation Development Agency 78,871
CalRecycle SB1383 Assistance Grant 18,062
Total Nonmajor Funds- Restricted 253,324
Total Restricted $ 253,324
Committed:
Major Funds
General Fund 1,154,475 $
Total Committed $ 1,154,475
Assigned:
Nonmajor Funds:
Road Maint & Rehab 14,136 $
OPC Coastal Resilience 18,593
Total Assigned $ 32,729
Unassigned (deficit):
Major Funds:
General Fund 1,307,958 $
Prop 84 Stormwater Grant (100)
Total Major Funds- Unassigned 1,307,858
Nonmajor Funds:
LCP Update Grant #3 (8)
COPS Program Grant (36,613)
Onsite Wastewater Treatment System (1,815)
STIP Trinity St. Road Rehab (210)
OGALS Per Capita (4,394)
Total Nonmajor Funds- Unassigned (43,040)
Total Unassigned $ 1,264,818
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
43 7. NET POSITION/ FUND BALANCES, Continued
The following describes the purpose of each restriction and commitment account used by the City:
Restricted
• Budget Act COVID – represents restricted amounts to provide economic relief and support to individuals, families, businesses, and communities affected by the COVID-19 pandemic. • State Gas Tax Fund – accounts for the City’s receipt and use of State gas tax funds for which use is restricted to street maintenance activities. • Transportation Development Agency – accounts for the City’s receipt and use of State Transportation Development Act funds for which the use is restricted to street maintenance activities. These funds are distributed by the Humboldt County Association of Governments (HCAOG).
• CalRecycle SB1383 Assistance Grant – represents amounts restricted by the CalRecycle for costs associated with collection, education and outreach, edible food recovery, capacity planning, procurement administration, and record keeping.
Committed
• Reserves – represents amounts designated by the City Council for future contingencies, which include the following:
Emergency reserve $ 459,000
Budget stabilization reserve 459,000
Capital/special project reserve 221,475
Self insurance reserve 15,000
Total committed fund balances $ 1,154,475
Excess of Expenditures and Transfers Over Appropriations: Expenditures and transfers exceeded appropriations for the year ended June 30, 2023, for the following funds:
Total Excess
Expenditures Expenditures
Final Budget and Transfers Over Appropriations
Governmental Activities
Nonmajor Funds:
Integrated Waste Management 2,000 $ 5,436 $ (3,436) $
COPS Program Grant 146,450 177,169 (30,719)
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
44 8. INTERFUND TRANSACTIONS
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.
Transfers consisted of the following at June 30, 2023:
Transfers In Transfers Out
Governmental Activities
Major Funds:
General Fund $ 43,520$ -
Total Major Funds 43,520 -
Non-major Funds:
Special Revenue Funds:
Integrated Waste Mgmt 2,364 -
COPS Program Grant 8,509 -
Onsite Wastewater Treatment System - 30,750
STIP Trinity St. Road Rehap 115 -
LCP Local Coast Program - 1,782
Total Non-major Special Revenue Funds 43,520 -
Total Transfers $ 43,520 43,520$
Due to and from balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Due to and due from other funds consisted of the following as of June 30, 2023:
Due from Due to
Other Funds Other Funds
Governmental Funds
Major Funds:
General Fund $ 882,548 $ -
Prop 84 Stormwater Grant 230,542 -
Total Major Funds 882,548 230,542
Nonmajor Funds:
SB 2 Planning Grant 31,489 -
HCD LEAP Grant 29,790 -
STIP Trinity St. Road Rehab 4,528 -
REAP Housing Grant HCAOG - 309
OPC Coastal Resilience 70,303 -
HSIP Street Improvement 64,061 -
OGALS Per Capita 4,394 -
Total Nonmajor Funds 204,874 -
Total Governmental Funds 882,548 435,416
Proprietary Funds
Water utility 447,132 -
Total Proprietary Funds 447,132 -
Total Transfers $ 882,548 $ 882,548
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
45 9. DEFINED CONTRIBUTION RETIREMENT PLAN
The City contributes to an employee owned defined contribution plan administered through Smith Barney/Hartford ITT under established plan provisions, and which may be amended by City council resolution. The City contributes 6% of an employee’s annual salary to the plan which provides retirement benefits. The City also provides matching contributions up to 6% of an employee’s contributions for all eligible employees. Plan participants age 50 and older can make catch-up annual contributions up to $5,000; and in the three years prior to retirement, can make catch-up contributions of up to twice the annual limit. All employee and employer contributions are tax deferred to the employee. The City contributed $35,414 to the plan for the year.
10. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, thefts, damage and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The City is a member of the California Intergovernmental Risk Authority (CIRA), a public entity risk pool currently operating as a common risk management and insurance program for member cities. The relationship between the City and CIRA is such that CIRA is not a component unit of the City for financial reporting purposes. CIRA is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. Financial statements may be obtained from CIRA, 5330 East Bidwell, Suite 150, Folsom, CA 95630. For workers compensation insurance, the City is insured by the Local Agency Workers Compensation Excess Company. For property coverage, the City is protected by a commercial general liability insurance policy.
11. COMMITMENTS AND CONTINGENCIES
In the normal course of City operations there are occasional and various legal claims and actions against the City for which no provision has been made in the financial statements because the amount of liability, if any, is unknown.
The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.
At June 30, 2023 the City was committed to several grant funded planning and construction contracts related to potable water quality, water treatment plant upgrades, onsite wastewater treatment services, street water runoff and environmental related improvements. The ability of the City to meet these contractual commitments is dependent upon continued intergovernmental grant funding.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
46 12. COMMITMENTS AND CONTINGENCIES, Continued
The City entered into an agreement with the County of Humboldt to provide law enforcement services within the City limits. The agreement period commences November 1, 2021 through June 30, 2024.
Appropriations are partially funded through annual COPS grant of approximately $150,000 with the City paying any difference out of its general fund. The City and the County are currently continuing the law enforcement services arrangement after June 30, 2024 while negotiations are in progress for the next contract agreement.
13. NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued statement No. 94, “Public-Private and Public-Public Partnerships and Availability Payment Arrangements”. The objective of this Statement is to better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into PPPs and APAs and by enhancing the understandability, reliability, relevance, and consistency of information about PPPs and APAs. The implementation of this statement did not have an effect on the financial statements.
The GASB has issued statement No. 96, “Subscription-Based Information Technology Arrangements”.
The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs.
The implementation of this statement did not have an effect on the financial statements.
The GASB has issued Statement No. 99, "Omnibus 2022." The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to leases, PPPs, and SBITAs will take effect for financial statements starting with the fiscal year that ends June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024.
The GASB has issued Statement No. 100, "Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62." The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2024.
City of Trinidad, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
47 13. NEW ACCOUNTING PRONOUNCEMENTS, Continued
The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024.
14. SUBSEQUENT EVENTS
Events occurring after June 30, 2023 but before the financial statements were available to be issued must be evaluated for possible adjustment to the financial statements or disclosure. The effects of subsequent events that provide evidence about conditions that existed at June 30, 2023 are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after June 30, 2023 require disclosure in the accompanying notes. Management has evaluated the activity of the City through March 3, 2025, and concluded that no subsequent event(s) have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.
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COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
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50 Fund Type
Special Revenue Funds
Integrated Waste Management
LCP Update Grant #3
Budget Act COVID
SB 2 Planning Grant
HCD LEAP Grant
COPS Grant Program
State Gas Tax Fund
Transportation Development Act
Onsite Wastewater Treatment System
STIP Trinity St. Road Rehab
Road Maintenance and Rehab
LCP Local Coast Program
Calycle SB 1383 Assistance Grant
REAP Housing Grant HCAOG
OPC Coastal Resilience
HSIP Street Improvements
OGALS Per Capita
Special revenue funds are used to account for specific revenue sources that are restricted, committed, or assigned to expenditures for particular purposes.
NON-MAJOR GOVERNMENTAL FUNDS
Description
To account for waste hauling franchise fees received and waste diversion programs implemented to help achieve compliance with CalReycle mandated diversion targets Grant program funded by the Coastal Commission to dedicate resources to the City's ongoing Local Coastal Program update, the City in updating the LCP, including several tasks (5).
The Budget Act COVID fund, primarily established through the CARES Act, provides financial assistance to the City to address the public health and economic impacts of the COVID-19 pandemic.
Grant funds through CA Department of Housing and Community Development used to bring the City's Housing Element into Compliance with State requirements, including development of the Accessory Dwelling Unit (ADU) Ordinance.
To account for funds received from the HCD LEAP Grant to update planning documents and implement process improvements that accelerate housing production.
To account for funds received from the State or law enforcement services under the Citizens Option for Public Safety (COPS) Program.
To account for the City’s share of State of California’s Highway User Tax collected by the State that are legally restricted to the maintenance and improvement of City roads and streets.
To account for funds received from the Transportation Development Act to improve public transportation services and encourage regional transportation coordination.
To account for permit revenue received intended to offset costs associated with implementing the City's wastewater treatment system.
State Department of Transportation funded removal and replacement of asphalt, striping and markings, and utility, monument, and manhole cover adjustments on To account for the ongoing maintenance and rehabilitation needs of city roads Grant funds awarded by the Coastal Commission to dedicate resources to update the City's Local Coastal Program.
To account for funds received from CalRecycle SB 1383 Local Assistance Grant Program which aims to reduce organic waste and edible food waste to lower methane emissions and promote recycling and composting.
To account for funds received from the Humboldt County Association of Governments to help the City reach its housing production goals
Grant funds through the Ocean Protection Council, Prop 68, used to develop the Trinidad Community Coastal Resilience Action Plan.
To account for funds received from the Highway Safety Improvement Program (HSIP) to be used on improving the City's streets.
Per Capita grant allocation of $177,952 awarded through the California State Parks and Recreation Department for enhancement and development of recreation opportunities in Trinidad.
51 City of Trinidad, California
Combining Balance Sheet
Nonmajor Governmental Funds - Special Revenue Funds
June 30, 2023
Integrated LCP Budget SB 2
Waste Update Act Planning
Mgmt Grant #3 COVID Grant
ASSETS
Cash and investments -$ 2,181$ 119,572$ -$
Receivables - 3,209 - 47,724
Prepaid expenses 144 - -
Total assets 144$ 5,390$ 119,572$ 47,724$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payables -$ 5,398 -$ 16,235$
Accrued expenses 38 - - -
Due to other funds - - - 31,489
Total liabilities 38 5,398 - 47,724
Fund balances:
Nonspendable 106 - - -
Restricted - 119,572 -
Assigned - - - -
Unrestricted (deficit) - (8) - -
Total fund balances 106 119,572 (8) -
Total liabilities and fund balances 144$ 5,390$ 119,572$ 47,724$ 52 Onsite
HCD COPS State Transportation Wastewater STIP
LEAP Program Gas Tax Development Treatment Trinity St
Grant Grant Fund Agency System Road Rehab
-$ -$ 35,732$ $ 78,871 -$ -$
41,043 - 1,087 - - 5,278
- - - - - -
41,043$ -$ 36,819$ $ 78,871 -$ 5,278$
11,253 36,613 -$ $ 1,815$ - 960$
- - - - - -
29,790 - - - - 4,528
41,043 36,613 - 1,815 - 5,488
- - - - - -
- - 36,819 78,871 - -
- - - - - -
- (36,613) - (1,815) - (210)
- (36,613) 36,819 78,871 (1,815) (210)
41,043$ -$ 36,819$ $ 78,871 -$ 5,278$
(continued)
53 City of Trinidad, California
Combining Balance Sheet
Nonmajor Governmental Funds - Special Revenue Funds, Continued June 30, 2023
CalRecycle
Road LCP Local SB 1383 REAP
Maint & Coast Assistance Housing Grant
Rehab Program Grant HCAOG
ASSETS
Cash and investments 12,935$ -$ 18,062$ -$
Receivables 1,201 - - 309
Prepaid expenses - - - -
Total assets 14,136$ -$ 18,062$ 309$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payables -$ -$ -$ -$
Accrued expenses - - - -
Due to other funds - - - 309
Total liabilities - - - 309
Fund balances:
Nonspendable - - -
Restricted - - 18,062 -
Assigned 14,136 - - -
Unrestricted (deficit) - - - - 0 Total fund balances 14,136 - 18,062 - Total liabilities and fund balances 14,136$ -$ 18,062$ 309$ 54 OPC HSIP OGALS Total
Coastal Street Per Nonmajor
Resilience Improvement Capita Funds
-$ -$ -$ 267,353$
112,736 66,050 - 278,637
- - 144
112,736$ 66,050$ -$ 546,134$
23,840 1,989 -$ 98,103$
- - - 38
70,303 64,061 4,394 204,874
94,143 66,050 4,394 303,015
- - - 106
- - - 253,324
18,593 - - 32,729
- - (4,394) (43,040)
18,593 - (4,394) 243,119
112,736$ 66,050$ -$ 546,134$
(concluded)
55 City of Trinidad, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds - Special Revenue Funds
For the year ended June 30, 2023
Integrated LCP Budget SB 2
Waste Update Act Planning
Mgmt Grant #3 COVID Grant
REVENUES:
Building and planning fees $ - - $ - $ - $
Intergovernmental 11,863 42,462 47,724 -
Rent and franchise fees 12,833 - - -
Investment earnings - - - -
Total revenues 11,863 12,833 42,462 47,724
EXPENDITURES:
Current:
General government 5,436 - - -
Public safety - - - -
Public works/streets 11,871 - - 47,724
Total expenditures 5,436 11,871 47,724 -
REVENUES OVER (UNDER)
EXPENDITURES 7,397 (8) 42,462 -
OTHER FINANCING SOURCES (USES):
Transfers in 2,364 - - -
Transfers out - - - -
Total other financing
sources (uses) 2,364 - - -
NET CHANGE IN FUND BALANCES 9,761 (8) 42,462 -
FUND BALANCES:
Beginning of year - (9,655) 77,110 -
End of year $ (8) 106 $ 119,572 $ - $
56 Onsite
HCD COPS State Transportation Wastewater STIP
LEAP Program Gas Tax Development Treatment Trinity St
Grant Grant Fund Agency System Road Rehab
$ - - $ - $ - $ 5,300 $ - $
41,042 162,880 13,610 40,000 - 5,278
- - - - - -
- - 378 834 - -
41,042 162,880 13,988 40,834 5,300 5,278
- - - - - -
177,169 - - - - -
41,042 - - 5,265 18,795 5,489
41,042 177,169 - 5,265 18,795 5,489
(14,289) - 13,988 35,569 (13,495) (211)
- 8,509 - 30,750 - 115
- - - - - -
- 8,509 - 30,750 - 115
(5,780) - 13,988 35,569 17,255 (96)
(30,833) - 22,831 43,302 (19,070) (114)
$ (36,613) - $ $ 36,819 $ 78,871 $ (1,815) $ (210)
(continued)
57 City of Trinidad, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds - Special Revenue Funds, Continued For the year ended June 30, 2023
CalRecycle
Road LCP Local SB 1383 REAP
Maint & Coast Assistance Housing Grant
Rehab Program Grant HCAOG
REVENUES:
Building and planning fees $ - - $ - $ - $
Intergovernmental 6,851 20,000 - 309
Rent and franchise fees - - - -
Investment earnings 138 - - -
Total revenues 6,989 20,000 - 309
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Public works/streets - - 1,938 309
Total expenditures - - 1,938 309
REVENUES OVER (UNDER)
EXPENDITURES 6,989 18,062 - -
OTHER FINANCING SOURCES (USES):
Transfers in - 1,782 - -
Transfers out - - - -
Total other financing
sources (uses) - 1,782 - -
NET CHANGE IN FUND BALANCES 6,989 1,782 18,062 -
FUND BALANCES:
Beginning of year 7,147 (1,782) - -
End of year $ - 14,136 $ 18,062 $ - $
58 OPC HSIP OGALS Total
Coastal Street Per Nonmajor
Resilience Improvement Capita Funds
$ - - $ - $ 5,300 $
250,398 117,938 760,355 -
- - 12,833 -
- - - 1,350
250,398 117,938 779,838 -
- - - 5,436
- - 177,169 -
231,805 117,938 1,863 484,039
231,805 117,938 1,863 666,644
18,593 (1,863) - 113,194
- - 43,520 -
- - - -
- - 43,520 -
18,593 (1,863) - 156,714
- (2,531) - 86,405
$ 18,593 $ (4,394) - $ $ 243,119
(concluded)
59 City of Trinidad, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Integrated Waste Management
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Rent and franchise fees $ 10,000 $ 10,000 $ 12,833 $ 2,833 Total revenues 10,000 10,000 12,833 2,833
EXPENDITURES:
Current:
General government 2,000 2,000 5,436 (3,436)
Total expenditures 2,000 2,000 5,436 (3,436)
REVENUES OVER (UNDER)
EXPENDITURES 8,000 8,000 7,397 (603)
OTHER FINANCING SOURCES (USES):
Transfers in - - 2,364 2,364
Transfers out - - - -
Total other financing sources (uses) - - 2,364 2,364
Net change in fund balances 8,000 8,000 9,761 1,761
FUND BALANCES:
Beginning of year (9,655) (9,655) (9,655) -
End of year $ (1,655) (1,655) $ 106 $ 1,761 $
Budgeted Amounts
60 City of Trinidad, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual COPS Program Grant
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental revenues $ 150,000 $ 150,000 $ 162,880 $ 12,880 Investment earnings - - - -
Total revenues 150,000 150,000 162,880 12,880
EXPENDITURES:
Current:
Public safety 146,450 146,450 177,169 (30,719)
Total expenditures 146,450 146,450 177,169 (30,719)
REVENUES OVER (UNDER)
EXPENDITURES 3,550 3,550 (14,289) (17,839)
OTHER FINANCING SOURCES (USES):
Transfers in - - 8,509 8,509
Transfers out - - - -
Total other financing sources (uses) - - 8,509 8,509
Net change in fund balances 3,550 3,550 (5,780) (9,330) FUND BALANCES:
Beginning of year (30,833) (30,833) (30,833) -
End of year $ (27,283) (27,283) $ (36,613) $ (9,330) $
Budgeted Amounts
61 City of Trinidad, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transportation Development Agency
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental revenues $ 14,200 $ 14,200 $ 40,000 $ 25,800 Investment earnings - - 834 834
Total revenues 14,200 14,200 40,834 26,634
EXPENDITURES:
Current:
Public ways and facilities 5,500 5,500 5,265 235
Total expenditures 5,500 5,500 5,265 235
REVENUES OVER (UNDER)
EXPENDITURES 8,700 8,700 35,569 26,869
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 8,700 8,700 35,569 26,869
FUND BALANCES:
Beginning of year 43,302 43,302 43,302 -
End of year $ 52,002 $ 52,002 $ 78,871 $ 26,869
Budgeted Amounts
62 7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and City Council
of the City of Trinidad
Trinidad, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Trinidad, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 3, 2025.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be significant deficiencies. We did identify certain deficiencies in internal control, described in the separate Schedule of Findings and Responses as item 2023-001 that we consider to be a material weakness.
To the Honorable Mayor and City Council
of the City of Trinidad
Trinidad, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
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March 3, 2025 JJACPA, Inc.
Dublin, CA
DISCUSSION AGENDA ITEM 3
SUPPORTING DOCUMENTATION ATTACHED
3. Mid-Year FY 2024-25 Budget Update and Discussion/Decision to approve Budget Amendments; a. $60,000 for Town Hall Windows, Front Porch, and Rot repair. b. $25,000 For Classification and Compensation Study.
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: City Manager Joe Tagliaboschi
AGENDA TITLE
Mid-Year FY 2024-25 Budget Update and Discussion/Decision to approve Budget Amendments; a. $60,000 for Town Hall Windows, Front Porch, and Rot repair. b. $25,000 For Classification and Compensation Study.
STAFF RECOMMENDATION:
Accept Mid-Year FY 2024-25 Budget Update and consider approval of the following budget amendments:
a. $60,000 for Town Hall Windows, Front Porch, and Rot repair. b. $25,000 For Classification and Compensation Study.
DISCUSSION/BACKGROUND
The purpose of this discussion is to provide a mid-year review of the FY2024 Budget approved on June 11, 2024, and to allow for questions or budget adjustments as needed.
The attached document titled “General Fund Operating Revenue vs. Expenses” was presented to the Council in June 2024 as a tool to summarize and incorporate all the individual funds that reflect the ‘big picture’ of the City’s financial expectations for FY 2024/25. It also included notes and adjustments that could be made should the Council desire to evaluate the cost of providing those services. These notes also were designed to be reminders so certain projects wouldn’t get overlooked, and as a road map for certain discretionary items and/or projects that were approved.
Please note that a few significant, large payments are expected to be received in the coming months that are not reflected in the December reports such as a COPS Grant payments, the Property Tax installment from the County, several Sales Tax payments, and the quarter-ending March 31 Transient Occupancy Tax payments.
Many of the line-item revenues and expenses are shown proportionate to this point in the fiscal year (6 months out of 12 or 50%). However, many revenues or expenses that don’t appear to be reported may only occur at certain times during the year. The statements are very useful but may require additional insight to fully understand. This is your opportunity to ask questions as needed.
Overall, the Council’s efforts in June 2024 to recognize what the “new normal” of post COVID is and the adjustments and approach to the FY24/25 approved budget are mostly following the expected trend with a few exceptions. The good news is the FY24/25 revenues budget is as forecast and will likely remain predictable and on track through the remainder of the year for both the General Funds and Special/Restricted accounts. Of course, there is always the caveat that unforeseen events could change this forecast.
The adopted budget included an accurate assessment of FY24/25, projecting conservative deficit spending in a healthy manner. The General Fund has been building over the last 5-years due to a combination of robust economic activity affecting the 95570 area thanks to the voter approved tax measure and an increase in tourism, increasing property values, and a resilient tax base. The actuals are slightly ahead of the forecast for Approved FY24/25. Budget
GENERAL FUND:
The City’s conservative approach to spending, coupled with steady revenues from the baseline economy and significant contributions from visitors has helped build the City’s reserves over time. Four primary expense funds (Administration, Police, Fire, and Public Works) are supported by discretionary revenue received through taxes and fees for service.
WATER ENTERPRISE FUND
One of the main areas of focus for the FY24/25 budget was to provide a continued effort to stabilize the Water Enterprise fund. To aid in these efforts there were a few measures taken to help attain that goal.
There was a Council approved rate adjustment for the Water Enterprise fund which included a $300,000 one-time transfer from the General fund. The rate changes took effect on October 01, 2024. The $300,000 transfer from General Fund to water fund occurred in mid-February 2025.
There is also a change in the Water Plant CPO coming as the city has found a new interim CPO that will include a substantially lower and more predictable monthly cost of $4,000 per month until our staff can assume the CPO duties. The new CPO will start officially on March 19, 2025.
REVENUES:
Sales and Occupancy taxes are trending slightly ahead of projections.
Sales Tax as of December 24: $192,468 (Approved budget of $350,000) 54% Transient Occupancy Tax: $149,157 (Approved budget of $215,000) 69% These current revenues are encouraging and reflect a healthy economy that can be easily disrupted by natural disasters such as wildfires, droughts, pandemics, or human-triggered disasters such as housing or market crashes.
Revenue sources are monitored and managed with the following objectives in mind:
• Monitor reserves and cash-flow needs in a manner that maximizes interest earning potential. • Emergency Water Fund Budget Stabilization – February 13, 2025, transfer of $300,000 to provide short-term Operation & Maintenance stability while the new water rates are being accrued and analyzed for impact on the Water Enterprise funds budgets • Maintain public buildings and important city assets such as trails and recreation infrastructure. Town hall Windows, Front Porch and Rot Repairs-$60,000 . Continue to seek funding via the OPC Grant for ALMT. Estimated grant of $2,500,000+
• Provide salary incentives to encourage employee retention with increased responsibility. Conduct Classification and Compensation study that better align task and compensation with job description and classification. Not to exceed quote of $25,000
• Cover increasing costs due to State of Federal mandates and regulations. Use of grant funds, enterprise funds and General Funds as needed or required. • Utilize for cash-flow needs during peak grant project outflow demand periods. • Develop a program committed to save for future underground utility projects. Future PGE Council discussion and $50,000 in FY24/25 budget.
Mid-year FY24/25 BUDGET GOALS & SUMMARY
Utilize reserves established from prior fiscal years, if needed, to support staff transitions. (City Manager transition for one month)
1. Maintain current law enforcement coverage and improve vital government services.- Current FY24/25 approved budget of $129,926 ( $67,500 Sheriff, $6,266 Animal Control Services, $ 56,160 Pacific Security). Pac Security was budgeted for 1040 hours per year. This does not include special events or other additional law enforcement services.
2. Reestablish Water Plant Operations to city staff and away from licensed, interim consultants. Staff is pursuing the T2 ‘s and T3 needed to work in and operate the plant. As of now there is one individual who has passed the T3 and has the contact hours to perform the T3 duties as required by State regulations. He is awaiting the credential from the state which could take more than a few months. It is not clear if this person is interested in performing in this capacity and the restrictive, and punitive regulatory environment that comes with the CPO title and responsibilities. The City has given Coleman a 30-day notice as required by the contract terms to end their water plant responsibilities. The city is working with a new interim CPO, and the terms of that agreement are substantially less than the Coleman agreement. The new agreement is a not to exceed $5,000 per month with a fee of $4,000 per month for services similar those provided under the current agreement. As City staff obtains the required credentials to operate the plant this agreement will also be re-negotiated to allow for reporting assistance and plant consultation. The new agreement is scheduled to start on March 18.
3. Maintain and invest in public buildings, parks, and property. Town Hall Window Replacement , Front Porch refresh, additional dry rot and weather damaged siding repair and replacement of 22 windows, “terrazzo” style epoxy coating for the front porch, and dry rot repair have been reviewed by our Building Inspector, and he has assisted with the estimate of an additional $60,000 to complete the work at Town Hall. In the upcoming FY25/26 budget Staff will provide a budget number for painting Town Hall exterior.
4. Support community groups that enrich the community for locals and visitors- Provide staff support and facilities as requested for public civic, and private functions. The city manager currently sits as a Chamber of Commerce Board member.
5. Continue grant programs that will help the city continue to work on the elements for the General Plan update. The Planning commission continues to work on updating the elements to the General Plan.
Current work continues on the Safety Element. Much of this work is grant funded. Staff will provide an update in an upcoming council meeting as those elements take shape and will require council approval to adopt the new General Plan.
The FY24/25 Approved Budget included a small operating deficit, however revenue forecast is trending positive and with continued conservative approach to budget management and If revenue sources continue to exceed expectations, the operating budget will balance by end of FY24/25.
FISCAL IMPACT
Is there a Fiscal Impact? Yes, for the two amendments proposed.
N/A Is it Currently Budgeted? Town Hall Improvements – yes.
Where is it Budgeted? Capital Improvement Reserve, and General Fund Reserve.
Is it Mandatory or Discretionary? N/A
Is there a Staff Resource Impact? No
ATTACHMENTS
FY24/25 Approved worksheet for Revenue and Expenditures December 2024 financial report
2024-2025 General Fund Summary - Operating Revenue vs. Expenses REVENUE Budget Actual
General Fund Revenue Projection: $ 866,700 $ - *CIRA grants available as needed Cemetery Plot Purchases $ 30,000 $ -
Humboldt Sanitation Franchise Fees $ 12,500 $ -
TDA Transfer-In for TPW Labor $ 14,532 $ - *Reserve funds available as needed Total Revenue $ 923,732 $ -
EXPENSES
General Fund Admin $ 577,843 $ -
Public Works $ 282,323 $ -
Fire $ 36,850 $ - *Transition fund place-holder included Police $ 27,291 $ - *Private security option included
Cemetery $ 22,748 $ -
Waste Management $ 12,500 $ -
Total Expenses $ 959,556 $ -
Balance $ (35,824) $ - *Reserve funds dedicated to cover this Highlights:
General Fund Funds a significant portion of the following positions:
City Manager, City Clerk, Project Manager, Asst. Clerk & Consultants.
Provides staffing to meet increased regulations and higher government mandates.
Legal support to address ongoing litigation and consulting challenges.
General service level increases with full-time staff.
Continued support of Library, Museum, Land Trust
Continued progress on the General Plan Update
Continued commitment to optimize fees for services to sustain.
Includes 4% pay increase determined by the City Manager.
Public Safety Contract renewal with HCSO for full-time 24/7 coverage Budget includes 1040 hours of funding for private security Emphasis on enforcement of current laws and increased public safety challenges.
Public Safety paid entirely with COPS Funding (HCSO Coverage/Animal Control/PCS) CERT $3,500 included for program expenses.
Public Works Includes (1) FT Public Works Supervisor, and (2) maintenance workers Provides support to HSIP and other grant funded construction projects underway Provides for City Engineer to oversee regional funding sources. $10,000 set aside for Trail Maintenance projects per Trails Comm.
Pays for ongoing, routine trail maintenance and supplies.
Pays for street lighting, routine building maintenance, and energy costs. $14,000 committed for Town Hall improvements
Reserve funds committed for larger-scale Town Hall improvements.
Includes reserve funding set-aside for future underground utility projects.
Water Fund Anticipates transition from Contractor to City control Revenue assumes new rate proposal accepted and implemented by Sept.
Includes (1) Chief Operator, (2) Part-time Shift Operators, and (1) OIT's Luffenholtz Creek Flow monitoring
Technical Support to the Water Advisory Committee
$25,000 allocated for priority valve replacements and/or distribution line breaks Freeze in spending for projects that are not vital, or grant funded projects in progress.
Streets/Roads Special Revenue Funds (Gas Tax, TDA, RMRA) used as needed.
No special projects budgeted at this time, but funds are available.
TDA Funds in reserve can be transferred to General Fund to offset TPW labor.
Reserve Funding Town Hall Exterior Wash and Trim Paint, and deck repair.
Requiring council approval at a later date Town Hall Window Replacement Project - up to $57,000 paid with reserve funds Grant Projects
Fund Grant Award Grant
215 $ 200,000 LCP Update Grant 3 Coastal Commission
216 $ 20,000 CalRecycle SB1383 Assistance Grant 1
218 $ 75,000 CalRecycle SB1383 Assistance Grant 2
532 $ 799,600 HSIP Street Improvements
533 $ 177,000 OGALS Per Capita
534 $ 272,000 STIP Trinity Road Rehab
535 $ 800,000 STIP Patricks Point & Scenic Drive
606 $ 5,079,090 SCDRP Tank & Pipeline
607 $ 2,000,000 MBDRP Intertie (with Westhaven CSD)
Rate Adjustments/Optimization 2% Transient Occupancy Tax Increase (from 10% to 12%) Water Rate Anaylsis
Building Permit Fee Schedule Update (in-progress, July 2025) Cemetery Plots; Rate Analysis/Adjustment (in-progress, July 2025) ...to help fund and secure future northern expansion.
Planning Admin Fee; 5-10% for in-house Staff time cost recovery Bench Policy Implementation; (30) benches at $1k each
Big Picture / Future Planning
Water Source Alternatives
Annexation Discussion
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: City Manager Joe Tagliaboschi
AGENDA ITEM TITLE
1. Mid-Year FY 2024-25 Budget Update and Discussion/Decision to approve Budget Amendments. a. $60,000 for Town Hall Windows, Front Porch, and Rot repair. b. $25,000 For Classification and Compensation Study
STAFF RECOMMENDATION:
Receive report from City Manager on Window and Trim Choices and Front Porch Floor Color and Finishes and Provide Direction to Staff to Continue with the Bidding and Construction Process. Provide feedback and direction to City Manager to proceed with the bid process.
DISCUSSION/BACKGROUND
This topic has been brought to Council on multiple occasions and in 2025 the budget includes $14,000 (and conditionally reserved $57,000) in the 2024/25 FY Budget for Town Hall Improvements. These funds are primarily for window replacement, front porch improvements which include replacing the worn carpeting, and providing a more aesthetically pleasing finish to the area and rot repair.
Staff has obtained samples and quotes for two types of windows. one is a more architectural with more ornate trim and aesthetically pleasing style that includes two types of wood cladding for the interior and a stain color to match the redwood interior trim in office and Civic Club room at Town Hall. Wood and stain samples would be ordered first to ensure a match. The other style is a more standard type of window and more cost effective for those areas not on Trinity Street frontage .
The existing windows vary in size. The two sizes offered (3' wide x 5' tall and 3' x 6') should allow for competitive pricing for each window and type. There are 22 windows total. The grid pattern in the upper and lower window panels are to match the existing window grid pattern. Quotes 2A and 2B are for all vinyl windows. This may be desired for cost savings, durability and to match the existing white painted windows and trim in the hall area. The quotes provided are only to get an idea of a cost estimate. A final estimate would be part of the bidding process.
1. Milgard, Series V400 Tuscany, white vinyl inside and out. w/ grid pattern similar to the existing windows.
2. Weathershield, Premium series, white aluminum clad exterior & vertical grain fir interior. Stain color and finish to be selected. Grid pattern to match existing.
There are 22 windows of varying sizes total.
Option 1: Replace all windows with Milgard vinyl (type 1 above). Approximately $800/window = $17,600 Labor to remove and replace, dispose of old windows, related materials. Approximately $950/window = $20,900. Total = $38,500
Option 2: Replace all windows with Weathershield Premium (type 2 above). Approximately $2000/window = $44,000.
Labor to remove and replace, dispose of old windows, related materials. Approximately $1300/window = $28,600.
Total = $72,600
Option 3: Replace 17 of the windows with Milgard, Series V400 Tuscany, white vinyl inside and out, with grid pattern similar to the existing windows = $31,750, and the 5 front windows with Weathershield Premium (type 2 above) for $13,200, for a total of $44,950
The four widows in the front office have natural redwood jams, sills, and window casing as well as redwood trim and wall finishes. All other window jams, sills, and casings are painted white.
There is a possibility of unforeseen rot and or water damage that will only be exposed when old windows are removed.
It is not possible to predict the extent, if any, and the cost of making the needed repairs.
Staff recommends replacing the four (4) front of Town Hall windows with the more aesthetically pleasing Weathershield Premium that can better match the existing redwood interior trim in the Civic Club and Town Hall office these would be approximately $13,200.
The other 18 windows could be the less expensive Milgard V400 windows at a total cost of approx. $31,750. This would be approx. $44,950 for remove and replace of all the Town Hall windows.
After windows are selected by Council a description of the work to be done can be developed including interior and exterior trim to be replaced, painting, other work to be done, and provisions for rot or water damage. This should be done to ensure the specifications are the same for all bidders. In this way standards should be set for a well-designed and finished project that meets expectations.
In addition to the windows, there is also rot in siding on the North side that needs to be addressed. What is visibly rotten currently is about 100 linear feet of 1x8 shiplap siding. To replace with redwood or cedar pre-primed to match existing pattern the estimate is $5,000. This does not include any paint. This is an estimate. If more rot and/or damage is discovered in the process, additional time and materials will be billed.
A fair estimate for the windows and rot repair would be $60,000.
The second item on this list is the front entrance to Town Hall which includes a refresh of the paint after electrical work is complete and remove and replace the green carpet which is badly worn. Our Chief Building Official Dan Dimmick as suggested an epoxy coating used on garage floors to provide a more finished appearance. The product selected will have nonslip resistance and should last for many years with little to no maintenance needed other than a power wash once a year or so to keep it looking fresh and clean. The brochure attached is meant only as an example. Staff is recommending the gray color with chips that mimic a Terrazzo finish.
Staff would return with bids and award recommendation before proceeding to construction as required to amend the FY24/25 budget for this project
FISCAL IMPACT
Is there a Fiscal Impact? YES
is it Currently Budgeted? Partially
Where is it Budgeted? Capital Improvement Fund, General Fund, Reserves Is it Mandatory or Discretionary? Discretionary
Is there a Staff Resource Impact? yes
ATTACHMENTS
1. Window Quotes and Specs
2. Window Brochure and link
3. Front Porch Flooring Brochure and Link
CITY OF TRINIDAD STAFF REPORT
DATE: Tuesday, March 11, 2025
TO: Mayor and City Council
FROM: City Manager Joe Tagliaboschi
AGENDA ITEM TITLE
2. Mid-Year FY 2024-25 Budget Update and Discussion/Decision to approve Budget Amendments. a. $60,000 for Town Hall Windows, Front Porch, and Rot repair. b. $25,000 For Classification and Compensation Study
STAFF RECOMMENDATION:
Receive Classification and Rate Study Staff report. Amend FY2024/25 budget to include a $25,000 budget adjustment. Authorize City Manager to sign agreements for Classification and Compensation Study up to the budgeted amount.
DISCUSSION/BACKGROUND
A classification and compensation schedule are an important part of a local agency’s organizational needs. It helps define tasks and provides a compensation package that matches these skills in a similar market.
The classification list provides staff with a method to increase and improve skillsets to qualify for other classifications within an organization or compare compensation to other similar sized agencies. In a competitive market it gives the manager a method to recruit and retain highly qualified and valued staff.
This study is long past due as this effort goes back to at least 2013 where Council budgeted funds to complete this task. This review is also essential to the organization as there are staff working in classifications that do not exist in our organizations classification’s tables, staff who are performing tasks that are not included in their current classification and classifications that should be included for tasks in Trinidad but not currently included in our list of classifications.
Compensation should be based on the classification, and a market rate study that has a floor and a ceiling within that classification. That is not currently the case here in Trinidad, where both classification and compensation are not necessarily tied together as they should be in a healthy organizational culture. There should be an objective method to this system. Currently it is more subjective.
A Classification and compensation study has been a feature in multiple budgets, and Council goals since at least 2013 when there was $ 8,000 budgeted for that task. The purpose of this study is to establish a list of classifications and tasks assigned to those classifications and a compensation schedule based on an agency of similar size, and budget to the City of Trinidad.
Staff has reached out to multiple consultants for this study and has received a quote that includes the following tasks:
• Collect work activity data from staff; evaluate and provide recommendations relative to assigned job classifications
• Draft or update individual job classification descriptions as needed to reflect current and appropriate workloads and identify potential reclassifications or reassignments of work. • Identify market comparators and survey key compensation elements for benchmark classes; make compensation recommendations for market and internal equities. • Identify career ladders and succession opportunities and recommend paths to remove classification or compensation barriers.
• Recommend compliant language and essential functions reviews as needed.
This list should provide the city with a classification and compensation schedule that matches the current tasks and compensation schedule for this organization.
The attached Request for Quote is a not to exceed amount of $25,000. After discussing with the consultant there is some confidence that the amount could be less based on work with other similar sized organizations and timing for executing the agreement.
Staff recommends a motion to approve the Classification and Rate Study with a budget adjustment of $25,000 from the General Fund Reserves and authorizing the city manager to spend up the budgeted amount.
ENVIRONMENTAL REVIEW N/A
FISCAL IMPACT
Is there a Fiscal Impact? Yes
Is it Currently Budgeted? No
Where is it Budgeted? NA
Is it Mandatory or Discretionary? Discretionary
Is there a Staff Resource Impact? Yes
ATTACHMENTS
Regional Government Services Agreement and scope of work Scope of Services
Subject to the terms and conditions of this Agreement, RGS shall provide a comprehensive review of the classification and compensation structure of City, which may require performing any or all of the functions described below. This work may be done onsite or remotely.
1. Collect work activity data from staff; evaluate and provide recommendations relative to assigned job classifications.
2. Draft or update individual job classification descriptions as needed to reflect current and appropriate workloads, and identify potential reclassifcaions or reassignments of work.
3. Identify market comparators and survey key compensation elements for benchmark classes; make compensation recommendations for market and internal equities.
4. Identify career ladders and succession opportunities and recommend paths to remove classification or compensation barriers.
5. Recommend compliant language and essential functions reviews as needed.
Projects and activities may be modified on request of the City. City will only be invoiced for the actual hours worked.
The RGS team assigned will be led by a Lead Advisor, who will both perform work and direct projects to other RGS staff as needed. RGS staff, with equal or lower bill rates, will be assigned to projects or tasks at Lead Advisor’s discretion. RGS team will:
• Be reasonably available to perform services during the normal work week. • Meet as often as necessary for the purpose of consulting about the project/scope of work performed.
P.O. BOX 1350 | CARMEL VALLEY, CA 93924 | 650.587.7300 | WWW.RGS.CA. GOV RGS Is Committed to Reducing Paper Waste by Use of Electronic Processes RGS requests your assistance with meeting these waste reduction goals by joining us in the use of digital signature and electronic payment methods during our collaboration to reduce mailing and paper expenses.
As a convenience, RGS offers DocuSign to digitally sign our Agreements, providing a secure and legally binding digital signature process that eliminates the need for printing and distribution of documents.
Preamble: The agreement for services described below is also an agreement to engage in a relationship between organizations – Agency partners. In order to establish a mutually respectful relationship as well as a productive one, RGS has adopted the following values and business methods.
Our Values
• Expert Services: RGS serves exclusively public sector agencies with its team of public-sector experts.
• Innovation: RGS encourages and develops innovative and sustainable services to help each Agency meet its challenges through new modes of service provision. • Customer Driven: RGS customizes solutions to achieve the right level and right kind of service at the right time for each Agency’s unique organizational needs. • Perseverance: Sometimes the best solutions are not immediately apparent. RGS listens, works with you, and sticks with it until a good fit with your needs is found. • Open Source Sharing: RGS tracks emerging best practices and shares them, learning openly from each other’s hard-won experience.
• Commitment: Government agencies are the public’s only choice for many services. Public trust is earned and must be used wisely. And RGS will do its part. Each Agency should and will know how RGS sets its rates. RGS’ pledge to you is that we will act with honesty, openness, and full transparency.
How RGS Does Business
When you work with RGS you can expect:
• RGS will strive to be explicit up front and put our understandings in writing. Before making assumptions, we hope to talk directly to prevent any misunderstandings. • Ongoing interaction throughout our relationship to ensure that your needs are being met, and that projects progress appropriately and agreed-upon timelines are met. • RGS is committed to honest interaction.
• When RGS employees are on your site, we expect them to treat people respectfully and be treated respectfully. If problems arise, we want to communicate early, accurately, and thoroughly to ensure that we find mutually acceptable solutions. • As a public Agency, partnering is valued. We look out for each Agency’s interests consistent with maintaining the public trust.
• To keep expectations realistic, it is important to understand that RGS is a governmental, joint powers authority evolving to meet changing local government needs. RGS has carefully constructed policies and procedures to allow maximum flexibility to meet your needs.
Agreement for Management and Administrative Services [4/24 Rev5] Page 2 of 13 Between the AGENCY and Regional Government Services Authority DATE Agreement for Management and Administrative Services
This Agreement for Management Services (“Agreement”) is made and entered into as of the XX day of MONTH 2025, by and between the AGENCY, a municipal agency (“Agency”), and Regional Government Services Authority (RGS), a joint powers authority, (each individually a “Party” and, collectively, the “Parties”).
RECITALS
THIS AGREEMENT is entered into with reference to the following facts and circumstances:
A. That Agency desires to engage RGS to render certain services to it; B. That RGS is a management and administrative services provider and is qualified to provide such services to the Agency; and
C. That Agency has elected to engage the services of RGS upon the terms and conditions as hereinafter set forth.
TERMS AND CONDITIONS
Section 1. Services. The services to be performed by RGS under this Agreement shall include those services set forth in the attached Exhibits, which are incorporated by this reference herein and made a part hereof as though it were fully set forth herein.
Where in conflict, the terms of this Agreement supersede and prevail over any terms set forth in the Exhibits.
1.1 Standard of Performance. RGS shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the types of services that RGS agrees to provide in the geographical area in which RGS operates.
1.2 Service Advisor. To ensure quality and consistency for the services provided, RGS also assigns a service advisor to Agency. The service advisor is available to assigned RGS staff and to Agency management and will check in regularly with both to address program/project directives. Typically service advisor time is not billed to Agency, with some exceptions where significant programmatic direction is provided.
1.3 Reassignment of Personnel. Assignment of personnel to provide the services described in the Exhibits is at the sole discretion of RGS. In the event that Agency or RGS, at any time during the term of this Agreement, desires the reassignment of personnel, Agency and RGS shall meet and discuss in good faith to address the issue of concern, including but not limited to reassigning such person or persons.
For the avoidance of doubt, however, RGS retains sole control as to assignment of its personnel.
1.4 Time. RGS shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance described above and to provide the services described in the Exhibits.
Agreement for Management and Administrative Services [4/24 Rev5] Page 3 of 13 Between the AGENCY and Regional Government Services Authority DATE Section 2. Term of Agreement and Termination.
2.1 2.2
Services shall commence on or about the Effective Date, and this Agreement is anticipated to remain in force to DATE XX, 2025, at which time services may continue on a month-to-month basis until one party terminates the Agreement or if Section 3 contains a “not to exceed” amount, until RGS charges for services reach the not-to-exceed amount at which point the Agreement will automatically terminate unless amended. Services provided under the month-to-month provision are subject to current RGS staff rates in effect at the time of service.
Once this Agreement has converted to a month-to month basis, it shall automatically terminate upon the ninety-first (91st) continuous day with no billable service hours. After the ninety-first (91st) day with no billable service hours, RGS shall provide Agency with written notice of the automatic termination of the Agreement.
This Agreement may be terminated by either Party, with or without cause, upon 30 days’ written notice. Agency has the sole discretion to determine if the services performed by RGS are satisfactory to the Agency which determination shall be made in good faith. If Agency determines that the services performed by RGS are not satisfactory and/or RGS has not resolved the performance issues to the satisfaction of the Agency, Agency may terminate this Agreement by giving written notice to RGS. Upon receipt of notice of termination by either Party, RGS shall cease performing duties on behalf of the Agency on the termination date specified and the compensation payable to RGS shall include only the period for which services have been performed by RGS.
Section 3. Compensation. Payment for services under this Agreement shall not exceed $XXX and shall be as provided in the Exhibits.
Section 4. Effective Date. This Agreement shall become effective on the date first herein above written.
Section 5. Relationship of Parties.
5.1 It is understood that the relationship of RGS to the Agency is that of an independent contractor and all persons working for or under the direction of RGS are its agents or employees and not agents or employees of Agency. The Agency and RGS shall, at all times, treat all persons working for or under the direction of RGS as agents and employees of RGS, and not as agents or employees of the Agency. Agency shall have the right to control RGS employees only insofar as the results of RGS’ services rendered pursuant to this Agreement. In furtherance of this Section 5.1, the Parties agree as follows:
5.1.1 Agency shall not request from RGS or from an RGS employee providing services pursuant to this Agreement an RGS employee’s Social Security Number or other similar personally identifying information.
5.1.2 Agency shall not report an RGS employee to a third party as an employee of Agency. For the purposes of this Section 5.1, “third party” means another government agency, private company, or individual.
Agreement for Management and Administrative Services [4/24 Rev5] Page 4 of 13 Between the AGENCY and Regional Government Services Authority DATE
5.1.3 In the event that a third-party requests information about an RGS employee—including but not limited to personally identifying information, hours or locations worked, tasks performed, or compensation—Agency shall inform RGS of the request prior to responding. If Agency possesses such information about an RGS employee, the Parties shall confer in good faith about an appropriate and legally compliant response to the request.
5.2 RGS shall provide services under this Agreement through one or more employees of RGS qualified to perform services contracted for by Agency. The positions of RGS staff that will coordinate services to the Agency are indicated in the Exhibits.
The Executive Director or assigned supervising RGS staff will consult with Agency on an as-needed basis to assure that the services to be performed are meeting Agency’s objectives. At any time the RGS employee may be providing services to one or more RGS clients concurrent with the services being provided under this Agreement.
5.3 Agency shall not have the ability to direct how services are to be performed, specify the location where services are to be performed, or establish set hours or days for performance of services, except as set forth in the Exhibits. Agency confirms that RGS employees are not assuming and are not expected to assume any Agency staff position(s).
5.4 RGS employees may require access to Agency’s computer systems and networks to complete the assigned services. RGS requires its employees to agree to appropriate system usage policies, which include a pledge not to use partner agency electronic equipment for anything other than partner agency work. (These policies can be provided to Agency upon request.)
5.5 Agency shall not have any right to discharge any employee of RGS from RGS employment.
5.6 The provisions of this Agreement are not intended to create, nor shall they in way be interpreted or construed to create a joint venture, partnership, or any other similar relationship between the parties.
5.7 RGS shall, at its sole expense, supply for its employees providing services to Agency pursuant to this Agreement any and all benefits, such as worker’s compensation, disability insurance, vacation pay, sick pay, or retirement benefits; obtain and maintain all licenses and permits usual or necessary for performing the services; pay any and all taxes incurred as a result of the employee(s) compensation, including employment or other taxes; and provide Agency with proof of payment of taxes on demand.
Section 6. General Liability Coverage. RGS, pursuant to California Government Code Section 990, may satisfy its contractual liabilities with self-insurance and/or participate in a pooled risk purchasing program. RGS has and will continue to maintain a program of liability coverage against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by RGS and its agents, representatives, employees, and subcontractors.
Agreement for Management and Administrative Services [4/24 Rev5] Page 5 of 13 Between the AGENCY and Regional Government Services Authority DATE
6.1 Workers’ Compensation Coverage.
6.1.1 General requirements. RGS shall, at its sole cost and expense, maintain Workers’ Compensation coverage and Employer’s Liability coverage with limits of not less than $1,000,000.00 per occurrence.
6.1.2 Waiver of subrogation. The Workers’ Compensation coverage shall be endorsed with or include a waiver of subrogation in favor of Agency for all work performed by RGS, its employees, agents, and subcontractors.
6.2 Commercial General, Automobile, and Professional Liability Coverages.
6.2.1 General requirements. RGS, at its own cost and expense, shall maintain commercial general and automobile liability coverage for the term of this Agreement in an amount not less than $2,000,000 per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. RGS shall additionally maintain commercial general liability coverage in an amount not less than $2,000,000 aggregated for bodily injury, personal injury, and property damage.
6.2.2 Minimum scope of coverage. RGS coverage may not be written on ISO forms but will always provide coverage at least as broad as the latest version of the following: (A) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); and (B) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 001, code 1 (any auto).
6.3 Professional Liability Insurance. RGS, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability coverage for licensed professionals performing work pursuant to this Agreement in an amount not less than $2,000,000 covering the licensed professionals’ errors and omissions.
6.4 All Policies Requirements.
6.4.1 Coverage requirements. Each of the following shall be included in the coverage or added as an endorsement:
a. Agency and its officers, employees, and agents, shall be covered as additional covered parties with respect to RGS’ general commercial, and automobile coverage for claims, demands, and causes of action arising out of or relating to RGS’ performance of this Agreement and to the extent caused by RGS’ negligent act, error, or omission. b. An endorsement to RGS’ general commercial and automobile coverages must state that coverage is primary with respect to Agency and its officers, officials, employees and agents.
c. All coverages shall be on an occurrence or an accident basis, and not on a claims-made basis.
Agreement for Management and Administrative Services [4/24 Rev5] Page 6 of 13 Between the AGENCY and Regional Government Services Authority DATE
6.4.2 Acceptability of coverage providers. All coverages required by this section shall be acquired through providers with a Bests' rating of no less than A: VII or through sources that provide an equivalent level of reliability.
6.4.3 Verification of coverage. Prior to beginning any work under this Agreement, RGS shall furnish Agency with notifications of coverage and with original endorsements effecting coverage required herein. The notifications and endorsements are to be signed by a person authorized to bind coverage on its behalf. Agency reserves the right to require complete, certified copies coverage at any time.
6.4.4 Subcontractors. RGS shall include all subcontractors as insureds under its coverage or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
6.4.5 Variation. During the term of this Agreement, RGS may change the insurance program in which it participates. RGS will provide reasonable notice of any such change to Agency and replacement copies of Certificates of Coverage and endorsements.
6.4.6 Deductibles and Self-Insured Retentions. RGS shall disclose any self-insured retention if Agency so requests prior to performing services under this Agreement or within a reasonable period of time of a request by Agency during the term of this Agreement.
6.4.7 Maintenance of Coverages. The coverages stated herein shall be maintained throughout the term of this Agreement and proof of coverage shall be available for inspection by Agency upon request.
6.4.8 Notice of Cancellation or Reduction in Coverage. In the event that any coverage required by this section is reduced, limited, or materially affected in any other manner, RGS shall provide written notice to Agency at RGS earliest possible opportunity and in no case later than five business days after RGS is notified of the change in coverage.
Section 7. Legal Requirements.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. RGS and any subcontractors shall comply with all laws applicable to the performance of the work hereunder.
7.3 Reporting Requirements. If there is a statutory or other legal requirement for RGS to report information to another government entity, RGS shall be responsible for complying with such requirements.
7.4 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, RGS and any Agreement for Management and Administrative Services [4/24 Rev5] Page 7 of 13 Between the AGENCY and Regional Government Services Authority DATE subcontractors shall comply with all applicable rules and regulations to which Agency is bound by the terms of such fiscal assistance program.
7.5 Licenses and Permits. RGS represents and warrants to Agency that RGS and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to provide the services contemplated by this Agreement. RGS represents and warrants to Agency that RGS and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions.
7.6 Nondiscrimination and Equal Opportunity. RGS shall not discriminate on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided under this Agreement. RGS shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement.
Section 8. Keeping and Status of Records.
8.1 Records Created as Part of RGS’ Performance. All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that RGS prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of Agency. RGS hereby agrees to deliver those documents to Agency upon termination of the Agreement, if requested. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for Agency and are not necessarily suitable for any future or other use.
8.2 Confidential Information. RGS shall hold any confidential information received from Agency in the course of performing this Agreement in trust and confidence and will not reveal such confidential information to any person or entity, either during the term of the Agreement or at any time thereafter. Upon expiration of this Agreement, or termination as provided herein, RGS shall return materials which contain any confidential information to Agency. For purposes of this paragraph, confidential information is defined as all information disclosed to RGS which relates to Agency past, present, and future activities, as well as activities under this Agreement, which information is not otherwise of public record under California law. Agency shall notify RGS what information and documents are confidential and thus subject to this section 8.2.
8.3 RGS Books and Records. RGS shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements Agreement for Management and Administrative Services [4/24 Rev5] Page 8 of 13 Between the AGENCY and Regional Government Services Authority DATE charged to Agency under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment under this Agreement.
8.4 Inspection and Audit of Records. Any records or documents that Section 8.3 of this Agreement requires RGS to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of Agency. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of Agency or as part of any audit of Agency, for a period of three years after final payment under the Agreement.
Section 9. Non-assignment. This Agreement is not assignable either in whole or in part without the written consent of the other party.
Section 10. Amendments. This Agreement may only be amended or modified by written Amendment signed by both Parties.
Section 11. Validity. The invalidity, in whole or in part, of any provisions of this Agreement shall not void or affect the validity of any other provisions of this Agreement.
Section 12. Disputes. Should any dispute arise out of this Agreement, Agency agrees that it shall only file a legal action against RGS, and shall not file any legal action against any of the public entities that are members of RGS.
Section 13. Venue/Attorneys’ Fees. Any suit or action initiated by either party shall be brought in Alameda County, California. In the event of litigation between the Parties hereto to enforce any provision of the Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs of litigation.
Section 14. Mediation. Should any dispute arise out of this Agreement, the Parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither Party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the Parties. If a mediated settlement is reached, neither Party shall be deemed the prevailing party for purposes of the settlement and each Party shall bear its own legal costs.
Section 15. Employment Offers to RGS Staff. Should Agency desire to offer permanent or temporary employment to an RGS employee who is either currently providing RGS services to Agency or has provided RGS services to Agency within the previous six months, said Agency will be charged a fee equal to the full-time cost of the RGS employee for one month, using the most recent RGS bill rate for the RGS employee’s services to Agency.
This fee is to recover RGS’ expenses in recruiting the former and replacement RGS staff.
Section 16. Entire Agreement. This Agreement, including the Exhibits, comprises the entire Agreement.
Agreement for Management and Administrative Services [4/24 Rev5] Page 9 of 13 Between the AGENCY and Regional Government Services Authority DATE Section 17. Indemnification.
17.1 RGS’ indemnity obligations.
RGS shall indemnify, defend, and hold harmless Agency and its legislative body, boards and commissions, officers, and employees (“Indemnitees”) from and against all claims, demands, and causes of action by third parties, including but not limited to reasonable attorneys’ fees, arising out of RGS’ performance of this Agreement, to the extent caused by RGS’ negligent act, error, or omission. Nothing herein shall be interpreted as obligating RGS to indemnify Agency against its own negligence or willful misconduct.
Training disclaimer
Agency understands and acknowledges that RGS advisors may, as part of the scope of services under this Agreement, provide training on various matters including human resources, accounting, or management practices. The advice and guidance included in such training does not, and is not intended to, constitute legal advice; instead, all information, content, and materials provided are based on industry best practices, but may not be applicable in all situations. Agency staff should not act or refrain from acting on the basis of the information provided as part of a training without first seeking legal advice from counsel in its relevant jurisdiction and/or appropriate Agency approval. RGS’ obligation to indemnify, defend, and hold harmless indemnities pursuant to this section 17.1 for professional errors and omissions shall not exceed $500,000.
17.2 Agency’s indemnity obligations. Agency shall indemnify, defend and hold harmless RGS and its officers, directors, employees and agents from any and all claims and lawsuits where such persons are named in the lawsuit solely because of a duty any of them performs in accordance with the services outlined in Exhibit B.
It is the intent of the parties here to define indemnity obligations that are related to or arise out of Agency’s actions as a governmental entity. Thus, Agency shall be required to indemnify and defend only under circumstances where a cause of action is stated against RGS, its employees or agents:
a. which is unrelated to the skill they have used in the performance of the duties delegated to them under this Agreement;
b. when the allegations in such cause of action do not suggest the active fraud or other misconduct of RGS, its employees, or agents; or
c. where an Agency employee, if he had been acting in a like capacity, otherwise would be acting within the scope of that employment.
Whenever Agency owes a duty hereunder to indemnify RGS, its employees or agents, Agency further agrees to pay RGS a reasonable fee for all time spent by any RGS employee, or spent by any person who has performed work pursuant to this Agreement, for the purpose of preparing for or testifying in any suit, action, or legal proceeding in connection with the services the assigned employee has provided under this Agreement.
Agreement for Management and Administrative Services [4/24 Rev5] Page 10 of 13 Between the AGENCY and Regional Government Services Authority DATE
17.3 Obligations and indemnity related to defined benefit retirement plan participation.
a. RGS and Agency acknowledge and agree that, if Agency participates in a defined benefit plan (such as CalPERS, a pension plan, or Social Security) (“Retirement Program”), it is possible that the Retirement Program may find that RGS employees providing services pursuant to this Agreement are employees of Agency and should be registered with the Retirement Program as employees of Agency, which possibility is the same as if Agency were contracting with a private consulting firm. Pursuant to Section 5.1 of this Agreement, Agency has an obligation to treat all persons working for or under the direction of RGS as agents and employees of RGS, and not as agents or employees of Agency. Agency agrees not to ask RGS employees for personally identifying information.
b. In the event that the Agency’s Retirement Program initiates an inquiry that includes examination of whether individuals providing services under this Agreement to Agency are Agency’s employees, Agency shall inform RGS within five business days and share all communications and documents from the Retirement Program that it may legally share. In the event that either RGS or Agency files an appeal or court challenge, RGS and Agency each agree to cooperate with each other in responding to the inquiry and any subsequent administrative appeal or court challenge of an adverse determination. Notwithstanding Section 17.1 of this Agreement, RGS and Agency shall each bear their own costs in responding to an inquiry by a Retirement Program, including but not limited to costs of an administrative appeal or court challenge.
c. In the event that any RGS employee or subconsultant providing services under this Agreement is determined by a court of competent jurisdiction or the Agency’s Retirement Program to be eligible for enrollment in the Retirement Program as an employee of the Agency, to the fullest extent of the law, Agency shall indemnify, defend, and hold harmless RGS for any Retirement Program contribution payment that Agency is required as a result to make to the Retirement Program as well as for the payment of any penalties and interest on such payments, if any.
Section 18. Notices. All notices required by this Agreement shall be given to Agency and RGS in writing, by first class mail, postage prepaid, or by email transmission addressed as follows:
Agency: INFO
Agreement for Management and Administrative Services [4/24 Rev5] Page 11 of 13 Between the AGENCY and Regional Government Services Authority DATE RGS: Regional Government Services Authority
P. O. Box 1350
Carmel Valley, CA 93924
Email: [email protected]
Notice by email transmission shall be deemed given upon verification of receipt if received before 5:00p.m. on a regular business day or else on the next business day.
This Agreement may be executed in counterparts, each of which shall constitute an original, and all of which taken together shall constitute one and the same instrument. In accordance with California Government Code Section 16.5 and California Civil Code Section 1633.7, the Parties agree that this Agreement may be transmitted and signed by electronic or digital means by either or both Parties and that such signatures shall have the same force and effect as original signatures.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on the date first written by their respective officers duly authorized on their behalf.
DATED: __________ Agency
By: __________________________________
AGENCY
DATED: __________ Regional Government Services Authority By:
Sophia Selivanoff, Executive Director
Agreement for Management and Administrative Services [4/24 Rev5] Page 12 of 13 Between the AGENCY and Regional Government Services Authority DATE Exhibit A
Compensation.
1. Fees. Agency agrees to pay to RGS the hourly rates set forth in the tables below for each RGS employee providing services to Agency, which are based in part on RGS’ full cost of compensation and support for the RGS employee(s) providing the services herein described.
RGS and Agency acknowledge and agree that compensation paid by Agency to RGS under this Agreement is based upon RGS’ costs of providing the services required hereunder. The Parties further agree adjustments to the hourly bill rate shown below for “RGS Staff” will be made on July 1 of each year, when RGS’ hourly bill rates will be adjusted by the percentage change in the Consumer Price Index (Bureau of Labor Statistics, CPI for urban wage earners and clerical workers in the San Francisco-Oakland-San Jose area) (“CPI”) for the twelve months through the end of December of the prior year. Irrespective of the movement of the CPI, RGS will not adjust its hourly rates downward; nor will RGS adjust its hourly rates upward in excess of a five percentage (5%) change, excepting instances where there was no increase in the prior year’s hourly rates. In that event, RGS will adjust its hourly rates by the full percentage change in the CPI for the twelve months through the end of December of the prior year.
2. Reimbursement of RGS’ Direct Costs. Agency shall reimburse RGS for direct external costs. Direct external costs, including such expenses as travel or other costs incurred for the exclusive benefit of the Agency are not included in the hourly bill rate and, will be invoiced to Agency when received and without mark-up. These external costs will be due upon receipt.
3. Terms of Payment. RGS shall submit invoices monthly for the prior month’s services.
Invoices shall be sent approximately 10 days after the end of the month for which services were performed and are due and shall be delinquent if not paid within 30 days of receipt. Delinquent payments will be subject to a late payment carrying charge computed at a periodic rate of onehalf of one percent per month, which is an annual percentage rate of six percent, which will be applied to any unpaid balance owed commencing 7 days after the payment due date.
Additionally, in the event the Agency fails to pay any undisputed amounts due to RGS within 15 days after payment due date, then Agency agrees that RGS shall have the right to consider said default a total breach of this Agreement and the duties of RGS under this Agreement may be terminated by RGS upon 5 working days’ advance written notice.
Payment Process/Address. RGS prefers invoices be paid electronically.
RGS will reach out to your invoicing contact to establish and provide electronic payment instructions.
However, should you have questions or need other payment options, please contact:
Lindsay Rice, RGSA Accounting Manager
(650) 587-7300X12 | [email protected]
[EXHIBIT A CONTINUES ON FOLLOWING PAGE]
Agreement for Management and Administrative Services [4/24 Rev5] Page 13 of 13 Between the AGENCY and Regional Government Services Authority DATE
AGENCY CONTACTS
Agency Billing Contact. Invoices are sent electronically only. Please provide the contact person to whom invoices should be sent:
NAME EMAIL
Agency Insurance Contact. Please provide the contact person to whom the certificate of coverage should be sent:
NAME EMAIL
RGS STAFF RATES
TITLE HOURLY
RATE*
Strategic Services Consultant $186
Senior Advisor $157
Advisor $135
Technical Specialist $119
Administrative Specialist $106
*The Hourly Rate does not include direct external costs which will be invoiced to Agency with no markup and will fall outside of the not-to-exceed (if established) for services provided.
Exhibit B
Scope of Services. Subject to the terms and conditions of this Agreement, Regional Government Services Authority (RGS) shall perform the functions as described below:
• Perform the functions as assigned by the RGS lead advisor. • Be reasonably available to perform the services during the normal work week. • Meet regularly and as often as necessary for the purpose of consulting about the scope of work performed with the appropriate Agency project manager and with the RGS lead. • Perform other duties as are consistent with the services described herein and approved by the RGS lead advisor.
• Perform related work as required as approved by the RGS lead advisor. • Such employee may perform services at Agency offices available or at other locations.