Proclamation of the City of Portola, County of Plumas, State of California, Proclaiming Existence of a Local Emergency by the Director of Emergency Services, Appointing an Assistant Director of Emergency Services, Delegating Certain Powers and Duties to the Assistant Director of Emergency Services and Authorizing the Assistant Director of Emergency Services to Exercise such Powers and Duties to Address Impacts of the 2023 Winter Storms WHEREAS, on or about January 27, 2023, the City of Portola began experiencing severe winter storms which have continued through the first week of March 2023 ("2023 Winter Storms"). through the week. WHEREAS, the 2023 Winter Storms have, among other things, caused pipes to freeze, water mains to break, disruption in traffic along roadways. WHEREAS, further conditions of extreme peril are threatened by torecasted storms due to strike the City of Portola in the next few weeks. WHEREAS, these conditions are or are likely to be beyond the control of the services, personnel, equipment, and facilities ofthe City. WHEREAS, the City Council ofthe City of Portola is not in session and cannot immediately be called into session. WHEREAS, the Mayor of the City of Portola is not available and pursuant to California Government Code Section 36802, ift the Mayor is absent or unable to act, the Mayor Pro Tem shall serve untii the Mayor returns or is able to act and the Mayor Pro Tem has all of the powers and duties ofthe Mayor. WHEREAS, the aforesaid conditions are of extreme peril and warrant and necessitate the proclamation ofthe existence ofal local emergency in accordance with and as authorized by Portola Municipal Code Section 2.32. WHEREAS, it would be prudent to appoint a person to the office of Assistant Director of Emergency Services and delegate certain powers and duties to that office. WHEREAS, the City may proclaim a local emergency pursuant to California Government Code Sections 8630 and the City may promulgate orders and regulations necessary to provide for the (01080984.DOCX2) protection oflife and property, including orders or regulations imposing a curfew within designated boundaries where necessary to preserve the public order and safety. Such orders and regulations and amendments and rescissions thereof shall be in writing and shall be given widespread publicity and notice. WHEREAS, the City ofPortola is not formally asking for CDAA funding at this time. NOW, THEREFORE, IT IS HEREBY PROCLAMED that in accordance with Portola Municipal Code Section 2.32 and California Government Code Sections 8630-8634 and in my capacity as the Director ofE Emergency Services in the absence ofthe Mayor pursuant to California Government Code Section 36802, - - hereby declare a local emergency due to conditions of extreme peril that the 2023 Winter Storms, their impacts and responses thereto pose to the safety of persons and property within the City of Portola. IT IS FURTHER PROCLAMED AND ORDERED that the City of Portola is not formally asking for CDAA funding at this time. IT IS FURTHER PROCLAMED AND ORDERED that in accordance with Portola Municipal Code Section 2.32, the City's Director of Emergency Services is authorized to use and employ any of the property, services, personnel, and resources of the City, to command the aid of as many citizens as may be necessary to help mitigate this emergency and that County and State agencies may provide mutual aid, including personnel, equipment, and other available resources as needed to assist the City of Portola during this emergency. IT IS FURTHER PROCLAMED AND ORDERED that in accordance with Portola Municipal Code Section 2.32 and in my capacity as the Director of Emergency Services, I hereby appoint the City Manager to the office of Assistant Director ofl Emergency Services. IT IS FURTHER PROCLAMED AND ORDERED that in accordance with Portola Municipal Code Section 2.32 and in my capacity as the Director ofEmergency Services, I hereby delegate to the Assistant Director of Emergency Services all the powers and duties of the Director of Emergency Services set forth in Portola Municipal Code Section 2.32 during the existence ofthe local emergency proclaimed herein and authorize the Assistant Director ofEmergency Services to exercise all such powers and duties during the existence ofthe local emergency proclaimed herein. ITIS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the emergency organization ofthe City of Portola shall be those prescribed by state law, by ordinances, and resolutions oft the City ofPortola; and that this emergency proclamation shall expire seven (7) days after issuance unless confirmed and ratified by the City Council of the City of Portola. (01080984.DOCX2) IT IS FURTHER PROCLAMED AND ORDERED that the local emergency proclaimed herein shall be reviewed by the City Council for the need to continue it at least once every sixty (60) days until the City Council terminates the local emergency and the City Council shall proclaim the termination of the local emergency at the earliest possible date that conditions warrant. PROCLAIMED this gth day of March 2023 Aa - Mayor Pro Tem, City of Portola, Bill Powers ATTEST: . Jason Shaw, Deputy City Clerk I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Proclamation was duly proclaimed by the Mayor Pro Tem of the City of Portola in his capacity as the Director of Emergency Services on March 8, 2023. Jason Shaw, Deputy City Clerk - - - / - Polfo aL6 C ay 16, 19A9 Californve (01080984.DOCX2) RESOLUTION NO. 2563 AI RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA AUTHORIZING PAYMENT OF CLAIMS FOR THE PERIOD NOVEMBER 9, 2023 THROUGH DECEMBER 13, 2023. ACCOUNTS PAYABLE CHECKNUMBERS: 45377 45474 PAYROLL CHECK NUMBERS: 17319 - 17324 WHEREAS, the City Council of the City of Portola has been fully advised that all such claims and demands are legal obligations ofthe City; and, WHEREAS, the City Council has fully considered the claims and money demands and payment thereof as set forth below and in "Exhibit A" attached hereto and incorporated herein. ACCOUNTS PAYABLE: $1 194,117.04 PAYROLL: $ 92,623.65 TOTAL: $2 286,740.69 NOW THEREFORE BE IT RESOLVED THAT all claims and demands represented are just and proper and legal demands or claims against the City of Portola, and the payment of any such demands is approved and authorized. PASSED, APPROVED AND ADOPTED this 13th day of] December, 2023 by the following vote: AYES: NOES: ABSTAIN: ABSENT: Bill Powers, Mayor ATTEST: Jason Shaw, Deputy City Clerk I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council at the City ofPortola Regular meeting thereof held on December 13, 2023. Jason Shaw, Deputy City Clerk Resolution No. 2563 December 13, 2023 11/16/2023 11:36 AM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00302 AP RUN 11.22.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 000025 AUTO & TRUCK ELECTRIC IN I-202311161810 SNOW VEH REPAIR R 11/22/2023 178.64 453077 178.64 000029 COUNTRY BREEZE CLEANING I-202311151792 CITY CLEANING SERVICES R 11/22/2023 400.00 453078 400.00 000033 MCGINLEY & ASSOCIATES I-202311161826 SOLID WASTE CONSULTING R 11/22/2023 5,550.87 453079 5,550.87 000047 ALL ELECTRIC MOTORS INC I-202311161805 SEWER EQUIP REPAIR R 11/22/2023 2,161.54 453080 2,161.54 000048 PACE ENGINEERING INC I-202311161808 SEWER PROE SERVICES R 11/22/2023 4,415.25 453081 4,415.25 000056 GRISWOLD INDUSTRIES I-202311161827 LDWTP EQUIP REPAIR R 11/22/2023 1,370.66 453082 1,370.66 0005 AIRGAS, INC. I-202311151793 ACETLENE/OXYGEN R 11/22/2023 419.02 453083 419.02 0010 AMAZON CAPITOL SERVICES I-202311151788 MATERIALS & SUPPLIES R 11/22/2023 2,666.34 453084 2,666.34 0015 AMERIGAS I-202311151795 PUBLIC WORKS PROPANE R 11/22/2023 547.13 453085 547.13 0015 AMERIGAS I-202311151797 CITY HALL PROPANE R 11/22/2023 514.99 453086 514.99 0021 AT&T I-202311151794 800 EMER LINE R 11/22/2023 4.41 453087 4.41 0023 AT&T CALNET 3 I-202311101820 SCADA/LDWTP R 11/22/2023 86.46 453088 86.46 0025 ATLAS COPCO COMPRESSORS, LLC I-202311161804 LDWTP EQUIP REPAIR R 11/22/2023 3,138.66 453089 3,138.66 0027 BASTIAN ENGINEERING I-202311161814 ENGINEERING PROF SERVICES R 11/22/2023 426.21 453090 426.21 0046 CASHMAN EQUIPMENT COMPANY I-202311161803 EQUIP REPAIR R 11/22/2023 183.92 453091 183.92 11/16/2023 11:36 AM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00302 AP RUN 11.22.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 0048 CBC COMPANIES-TACIUAD DATA I-202311161812 UB CREDIT CHECKS R 11/22/2023 70.00 453092 70.00 0052 CITY OF PORTOLA I-202311151786 WATER/SEWER BILLS R 11/22/2023 5,156.42 453093 5,156.42 *VOID* 453094 VOID CHECK V 11/22/2023 453094 **VOID** 0055 COATES TIRE CENTER I-202311161807 ARPA R 11/22/2023 49.00 453095 49.00 0086 FOLCHI LOGGING & CONSTR., INC. I-202311161800 WATER SYSTEM IMPROVEMENTS R 11/22/2023 9,794.54 453096 9,794.54 0096 HARBOR FREIGHT TOOLS I-202311161799 EQUIP REPAIR R 11/22/2023 434.11 453097 434.11 0101 HUNT & SONS, INC. I-202311151789 CITY FUEL CHARGES R 11/22/2023 3,146.32 453098 3,146.32 0105 INIERMOUNTAIN DISPOSAL I-202311151796 REFUSE COLLECTION R 11/22/2023 812.76 453099 812.76 0105 INTERMOUNTAIN DISPOSAL I-202311161821 ARPA R 11/22/2023 3,490.20 453100 3,490.20 0105 INTERMOUNTAIN DISPOSAL I-202311101828 ARPA E WASTE R 11/22/2023 264.43 453101 264.43 0111 JEFFERSON SUPPLY COMPANY I-202311151790 WATER LINE REPAIR R 11/22/2023 3,077.80 453102 3,077.80 0112 JOHNSON'S METAL RECYCLERS I-202311151783 ARPA R 11/22/2023 585.00 453103 585.00 0124 KOMATSU EUIPMENT I-202311161798 EQUIP REPAIR R 11/22/2023 279.53 453104 279.53 0133 LIBERTY UTILITIES I-202311151784 CITY ELECTRIC BILLS R 11/22/2023 2,816.90 453105 2,816.90 0136 MANHARD CONSULTING I-202311161822 PLANNING SERVICES R 11/22/2023 320.00 453106 320.00 11/16/2023 11:36 AM DIRECT PAYABLES CHECK REGISTER PAGE: 3 PACKET: 00302 AP RUN 11.22.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 0139 MCCOLLUM EQUIPMENT REPAIR I-202311161801 EQUIP REPAIR R 11/22/2023 6,265.09 453107 6,265.09 0159 OFFICE DEPOT I-202311151787 OFFICE SUPPLIES R 11/22/2023 105.60 453108 105.60 0180 PLUMAS COUNTY ENVIRONMENTAL I-202311161809 SEWER CUPA FEES R 11/22/2023 262.00 453109 262.00 0188 PORIER SIMON CORPORATION I-202311161816 LEGAL SERVICES R 11/22/2023 5,790.00 453110 5,790.00 0189 PR DIAMOND PRODUCTS, INC. I-202311161825 WATER LINE REPAIR R 11/22/2023 345.00 453111 345.00 0192 PURCHASE POWER I-202311161813 METER POSTAGE R 11/22/2023 520.99 453112 520.99 0218 SILVER STATE ANALYTICAL I-202311161802 AATER/WASTE WATER TESTING R 11/22/2023 1,765.00 453113 1,765.00 0235 SUSAN SCARLETT I-202311151791 ACCOUNTING SERVICES R 11/22/2023 5,000.00 453114 5,000.00 0246 TYLER TECHNOLOGIES, INC I-202311161817 EMPLOYEE TRAINING R 11/22/2023 250.00 453115 250.00 0256 USA BLUE BOOK I-202311151785 LDWTP EQUIP REPAIR R 11/22/2023 99.72 453116 99.72 0269 XEROX FINANCIAL SERVICES I-202311161811 COPIER LEASE R 11/22/2023 268.13 453117 268.13 0275 EIP HOLDINGS II LLC I-202311101823 BECKWOURTH REPEATER RENT R 11/22/2023 193.00 453118 193.00 1 KELLIE PATO I-202311161818 REIMBURSEMENT R 11/22/2023 64.92 453119 64.92 1 JASON SHAW I-202311161824 SCORE REIMBURSMENT R 11/22/2023 216.80 453120 216.80 BANI K TOTALS NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 43 0.00 73,507.36 73,507.36 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE-WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 1 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 BANK TOTALS: 44 0.00 73,507.36 73,507.36 11/16/2023 11:36 AM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00302 AP RUN 11.22.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: ALL REGISTER GRAND TOTALS TOTAL S NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 43 0.00 73,507.36 73,507.36 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE-WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 1 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 REGISTER TOTALS: 44 0.00 73,507.36 73,507.36 POSTING PERIOD RECAP FUND PERIOD AMOUNT 100 11/2023 19,231.86CR 207 11/2023 1,853.38CR 208 11/2023 4,688.86CR 215 11/2023 250.00CR 710 11/2023 27,148.75CR 720 11/2023 14,274.13CR 730 11/2023 6,060.38CR ALL 73,507.36CR TOTAL ERRORS: 0 TOTAL WARNINGS: 0 11/20/2023 3:32 PM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00307 11.20.2023 AP SPECIAL CHE VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 1 STATE BOARD OF EQUALIZATION I-202311201830 BE R 11/20/2023 3,800.00 045421 3,800.00 B AN K TOTALS NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 1 0.00 3,800.00 3,800.00 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE-WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 0 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 BANK TOTALS: 1 0.00 3,800.00 3,800.00 11/20/2023 3:32 PM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00307 11.20.2023 AP SPECIAL CHE VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: ALL REGISTER GRAND TOTALS TOTAL S NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 1 0.00 3,8 800.00 3,800.00 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE-WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 0 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 REGISTER TOTALS: 1 0.00 3,800.00 3,800.00 POSTING PERIOD RECAP FUND PERIOD AMOUNT 100 11/2023 3,800.00CR ALL 3,800.00CR TOTAL ERRORS: 0 TOTAL WARNINGS: 0 12/07/2023 12:41 PM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00312 AP RUN 12.13.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 000009 CRESCENT TOW & REPAIR I-202312071842 ARPA TOWING R 12/13/2023 5,605.00 045422 5,605.00 000057 J. J. KELLER & ASSOCIATES I-202312071885 MAIERIALS & SUPPLES R 12/13/2023 612.65 045423 612.65 000058 HOBBS COMPANY LIMITED I-202312071884 SNOW VEH REPAIR R 12/13/2023 1,106.53 045424 1,106.53 0008 ALWAYS ANSWER I-202312071875 800 NUMBER R 12/13/2023 69.42 045425 69.42 0015 AMERIGAS I-202312071850 PUBLIC WORKS PROPANE R 12/13/2023 643.80 045426 643.80 0015 AMERIGAS I-202312071851 CITY HALL PROPANE R 12/13/2023 722.45 045427 722.45 0015 AMERIGAS I-202312071852 LDWTP PROPANE R 12/13/2023 652.76 045428 652.76 0015 AMERIGAS I-202312071853 SS FIREHALL PROPANE R 12/13/2023 226.89 045429 226.89 0020 ASCAP I-202312071866 ANNUAL LICENSE FEE R 12/13/2023 448.75 045430 448.75 0022 AT&T I-202312071869 LDWTP LONG DISTANCE R 12/13/2023 40.69 045431 40.69 0027 BASTIAN ENGINEERING I-202312071841 ENGINEERING SERVICES R 12/13/2023 4,803.71 045432 4,803.71 0039 BULLET INFORMATION TECHNOLOGY I-202312071876 IT SERVICES R 12/13/2023 892.50 045433 892.50 0046 CASHMAN EQUIPMENT COMPANY I-202312071843 WATER EQUIP REPAIR R 12/13/2023 574.02 045434 574.02 0062 CSG CONSULTANTS, INC. I-202312071837 CODE ENFORCEMENT R 12/13/2023 2,740.00 045435 2,740.00 0065 D & D SEEDS AND FARM EQUIPMENT I-202312071840 VEH REPAIR R 12/13/2023 8,285.87 045436 8,285.87 12/07/2023 12:41 PM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00312 AP RUN 12.13.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 0078 ENCOMPASS I-202312071877 XEROX COPIES R 12/13/2023 458.58 045437 458.58 0086 FOLCHI LOGGING & CONSTR., INC. I-202312071886 SISTEM IMPROVEMENIS R 12/13/2023 3,583.59 045438 3,583.59 0090 GRAINGER I-202312071844 WATER LINE REPAIR R 12/13/2023 41.06 045439 41.06 0096 HARBOR FREIGHT TOOLS I-202312071858 SNOW MATERIALS & STREET REPAIR R 12/13/2023 834.49 045440 834.49 0101 HUNT & SONS, INC. I-202312071883 FUEL CHARGES/HEATING OIL R 12/13/2023 2,770.63 045441 2,770.63 0103 IEDA I-202312071873 LABOR RELATIONS CONSULTING R 12/13/2023 253.89 045442 253.89 0105 INTERMOUNTAIN DISPOSAL I-202312071874 REFUSE COLLECTION R 12/13/2023 600.07 045443 600.07 0111 JEFFERSON SUPPLY COMPANY I-202312071835 MATERIALS & SUPPLIES R 12/13/2023 54.70 045444 54.70 0118 KANSAS LIFE INSURANCE CO I-202312071871 EMPLOYEE LIFE INSURANCE R 12/13/2023 69.54 045445 69.54 0122 KIMBALL MIDWEST I-202312071848 WATER/SEWER MATERIALS R 12/13/2023 460.92 045446 460.92 0133 LIBERTY UTILITIES I-202312071836 CITY ELECTRIC R 12/13/2023 1,863.09 045447 1,863.09 0135 MANGHAM GLASS I-202312071819 VEH REPAIR R 12/13/2023 352.40 045448 352.40 0141 MCI MEGA PREFERRED I-202312071867 800 LONG DISTANCE R 12/13/2023 44.30 045449 44.30 0148 NAPA SIERRA I-202312071882 MATERIALS & SUPPLIES R 12/13/2023 261.58 045450 261.58 0162 OPERATING ENGINEERS I-202312071878 EMPLOYEE HEALTH INSURANCE R 12/13/2023 13,663.00 045451 13,663.00 12/07/2023 12:41 PM DIRECT PAYABLES CHECK REGISTER PAGE: 3 PACKET: 00312 AP RUN 12.13.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 0175 PLUMAS ACE HARDWARE I-202312071847 MATERIALS & SUPPLIES R 12/13/2023 630.17 045452 630.17 0180 PLUMAS COUNTY ENVIRONMENTAL I-202312071839 CUPA FEES R 12/13/2023 10.00 045453 10.00 0183 PLUMAS SANITATION, INC I-202312071849 SEWER PROF SERVICES R 12/13/2023 450.00 045454 450.00 0184 PLUMAS SIERRA RURAL ELECTRIC I-202312071832 LDWTP ELECTRIC R 12/13/2023 1,298.54 045455 1,298.54 0185 PLUMAS SIERRA SEECOMMUNICAT I-202312071833 CITY INTERNEI SERVICES R 12/13/2023 387.00 045456 387.00 0208 SAUERS ENGINEERING, INC. I-202312071856 AATER/SEWER PROF SERVICES R 12/13/2023 10,465.00 045457 10,465.00 0212 SIERRA CONTROLS, LLC I-202312071854 LDWTP PROF SERVICES R 12/13/2023 1,129.72 045458 1,129.72 0218 SILVER STATE ANALITICAL I-202312071859 WATER/WASTEWATER TESTING R 12/13/2023 1,240.00 045459 1,240.00 0227 STATE OF CALIFORNIA I-202312071872 STREET LIGHTS R 12/13/2023 430.82 045460 430.82 0229 STATE WATER RESOURCES I-202312071860 PERMIT FEES R 12/13/2023 1,651.00 045461 1,651.00 0229 STATE WATER RESOURCES I-202312071861 PERMIT FEES R 12/13/2023 3,746.00 045462 3,746.00 0229 STATE WATER RESOURCES I-202312071862 PERMIT FEES R 12/13/2023 6,738.00 045463 6,738.00 0229 STATE WATER RESOURCES I-202312071863 PERMIT FEES R 12/13/2023 26,552.00 045464 26,552.00 0231 SUCCEED.NET I-202312071834 WEB HOSTING R 12/13/2023 67.85 045465 67.85 0233 SUNRISE ENVIRONMENTAL I-202312071855 MATERIALS & SUPPLIES R 12/13/2023 584.78 045466 584.78 12/07/2023 12:41 PM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00312 AP RUN 12.13.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: PC POOLED CASH - PLUMAS CHECK CHECK CHECK CHECK VENDOR I.D. NAME TYPE DATE DISCOUNT AMOUNT NO# AMOUNT 0235 SUSAN SCARLETT I-202312071868 RETURSEMENT/STREET REPORT R 12/13/2023 1,342.60 045467 1,342.60 0253 US BANÇORP I-202312071880 CITY CREDIT CARD CHARGES R 12/13/2023 4,206.02 045468 4,206.02 0256 USA BLUE BOOK I-202312071846 SEWER LINE REPAIR R 12/13/2023 561.41 045469 561.41 0258 USDA FOREST SERVICE PIPELINE I-202312071838 PIPELINE SPECIAL USE PERMIT R 12/13/2023 708.52 045470 708.52 0260 VERIZON WIRELESS I-202312071864 CITY CELL PHONES R 12/13/2023 442.53 045471 442.53 0260 VERIZON WIRELESS I-202312071865 CITY LANDLINES R 12/13/2023 536.73 045472 536.73 0260 VERIZON WIRELESS I-202312071870 LDWTP DATA PLAN R 12/13/2023 108.05 045473 108.05 0264 WESTERN NEVADA SUPPLY I-202312071845 LINE REPAIR & STREET REPAIR R 12/13/2023 786.06 045474 786.06 B A N K TOTAI LS NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 53 0.00 116,8 809.68 116,809.68 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE-WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 0 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 BANK TOTALS: 53 0.00 116,809.68 116,809.68 12/07/2023 12:41 PM DIRECT PAYABLES CHECK REGISTER PAGE: PACKET: 00312 AP RUN 12.13.2023 VENDOR SET: 01 CITY OF PORTOLA CHECK LISTING BANK: ALL REGISTER GRAND TOTALS TOTAL S NO# DISCOUNTS CHECK AMT TOTAL APPLIED REGULAR CHECKS: 53 0.00 116, 809.68 116,809.68 HANDWRITTEN CHECKS: 0 0.00 0.00 0.00 PRE-WRITE CHECKS: 0 0.00 0.00 0.00 DRAFTS: 0 0.00 0.00 0.00 VOID CHECKS: 0 0.00 0.00 0.00 NON CHECKS: 0 0.00 0.00 0.00 CORRECTIONS: 0 0.00 0.00 0.00 REGISTER TOTALS: 53 0.00 116,809.68 116,809.68 POSTING PERIOD RECAP FUND PERIOD AMOUNT 100 12/2023 18,812.63CR 207 12/2023 2,441.77CR 208 12/2023 8,119.09CR 211 12/2023 1,588.75CR 501 12/2023 13,663.00CR 710 12/2023 20,745.38CR 720 12/2023 23,225.20CR 730 12/2023 28,213.86CR ALL 116,809.68CR TOTAL ERRORS: 0 TOTAL WARNINGS: 0 Porola 6 City of Portola Minutes Regular Meeting November 08, 2023 06:00 PM 35 Third Ave Portola, 96122 httpsi/www.cityofportola.com, 1. Call to Order The meeting was called to order at by Mayor Bill Powers. A. Pledge of Allegiance Lead by Mayor Bill Powers B. Roll Call Present: Mayor Bill Powers, Mayor Pro Tem Pat Morton, Councilmember Stan Peiler, Councimember Leah Turner, Councilmember Jim Murphy Staff Present: Deputy City Clerk, Jason Shaw, City Attorney, Steve Gross (remotely) 2. Public Comments There were no public comments. 3. CITY COMMUNICATIONS A. City Council Communications / Committee Reports Councilmember Leah Turner: Nothing to Report. Councimember Stan Peiler: Took a tour of Willow Creek with Director of Public Works Todd Roberts and was very impressed with the project. Heard that the Memorial Hall needs help. They are looking for volunteers, especially contractors, who can help repair and paint things. Councilmember Jim Murphy: Thought the Chamber of Commerce did an excellent job with the Railroad Days Revival. Mayor Pro Tem Pat Morton: Working on the tree angels program. Week before Thanksgiving the trees will go up. Friday, December 1st, will be the tree lighting and light parade in downtown Portola. Mayor Bill Powers: Had senior citizens ask about if there will be a warming center this year in Portola. Had cooling centers at the Veteran's Hall before. Have had both cooling and warming centers at City Hall in the chamber room before. Will ask Director of Public Works Todd Roberts if all the outlets in the Chamber room stay live on generator power. Mentioned that E and F both looked like they passed. Certification is on November 14th. Though Cal Cities, may have found additional funding sources for past due utility bills. Exploring the possibility of a having a fall festival sometime after Music in the Park. B. Staff Communications / Fire Report / Sheriff's Report / Air Quality Report Fire Report: There was no fire report. Sheriff's Report: There was no Sheriff's report Air Quality Report by Targeted Airshed Grant Specialist Mikki Brown: Curtailment started September 1st. We had 1 day in October and SO far 6 days in November. Trying to work with the community on setting up a firewood bank for people in need. 1 Staff Report by Deputy City Clerk Jason Shaw: Still signing up people for Project Go for past due utility bills. Just about $40,000 has been paid out to residents of Portola. Working with FEMA and Cal OES on wrapping up our public assistance application caused by 2023 winter storms. Preliminary results show Measure E and F passing. Unofficial results have been posted at City Hall. 4. Consent Agenda A. Claims- Adopt Resolution No. 2562 authorizing payment of claims for the period of October 12th, 2023 though November 8th, 2023. .Accounts Payable: $152,041.60Payrol: $56,441.09Total: $208,482.69AP Check Run #45298 - 45376Payroll Check Run #17313-17318 B. Approval of the Minutes from 10-11-23, Correction to the Minutes from 9-27-23 (Item 6) Deputy City Clerk Jason Shaw noted the minutes from September 27th, 2023 have a correction on item 6. Councilmembers were marked that they abstained when in reality they said aye (yes). The minutes are on the agenda SO that they can be reapproved as corrected. Councilmember Leah Turner asked about the details on the costs associated with code enforcement, a Rain For Rent payment, and a payment on a USDA loan. Deputy City Clerk Jason Shaw explained the Rain for Rent payment was for pump rental costs associated with the winter storm disaster. He wasn't sure on the details on the other questions but would note them SO that at the next meeting, staff could property respond. There were no public comments. Councilmember Leah Turner motioned to approve. A second was made by Councilmember Jim Murphy. The roll call vote: Aye Mayor Bill Powers Aye Mayor Pro Tem Pat Morton Aye Councilmember Stan Peiler Aye Councilmember Leah Turner Aye_ Councilmember Jim Murphy 5. Renew State of Emergency Proclamation Deputy City Clerk Jason Shaw explained that we have to do this every 60 days to keep our State of Emergency going for our public assistance application from the 2023 winter storms. Same State of Emergency document that has been approved before. There were no public comments. Councilmember Leah Turner motioned to approve. A second was made by Councilmember Jim Murphy. The roll call vote: Ave Mayor Bill Powers Aye Mayor Pro Tem Pat Morton Aye Councilmember Stan Peiler Aye Councilmember Leah Turner Aye Councilmember Jim Murphy 6. Modified Council Meeting Schedule for November and December Deputy, City Clerk Jason Shaw explained that the City traditionally removes the second meeting in November and December due to the holiday season. Mayor Pro Tem Pat Morton pointed out that if we needed another meeting in November or December, that the City Council could call a special meeting. There were no public comments. Mayor Pro Tem Pat Morton motioned to approve. A second was made by Councilmember Stan Peiler. The motion passed with the following vote: 5 In Favor 0 Opposed 0 - Abstained 0 Absent 7. Adjournment Mayor Bill Powers adjourned the meeting at 6:30 PM 2 CITY COUNCIL AGENDA STAFF REPORT TO: Honorable Mayor and Members ofthe City Council FROM: Jon Kennedy, Interim City Manager MEETING: December 13, 2023 SUBJECT: 2024 Refuse Collection Rate Increase - Public Hearing for Resolution No. 2564 BACKGROUND Under the revised and amended franchise agreement between the City of Portola and Intermountain Disposal Company, the company is entitled to an annual rate adjustment for changes in the cost of doing business, consistent with Section 5.3 of the agreement. The adjustment for increases of the cost of doing business is based on U.S. Bureau of Labor Statistics and the U.S. Energy Information Administration data for consumer indices and fuel price changes over a one-year period (August 2022 to August 2023). Specifically, the two Federal agency statistics used to calculate the annual increase are: > Bureau ofLabor Statistics Consumer Price Index for All West Urban Consumers, Non- Seasonally Adjusted; and > Energy Information Administration California No. 2 Diesel Retail Prices. A year ago, the City Council approved a refuse collection services rate increase of 14.31%. That increase was the sum of 11.59% (calculated using August 2021 to August 2022 federal data) and 2.72% (which was a roll-over from the prior year). Rate Increase for 2024 Staff calculated the refuse collection rate increase for 2024 at 2.51%, using August 2022 to August 2023 federal data. Intermountain Disposal, through its accounting firm VT Accounting Associates of Carson City, NV, agreed with the 2.51% calculation. The 2024 rates for residential and commercial refuse collection and related services in the city of Portola are attached. These rates are the only fees IMD can assess residential and commercial customers in the city. In compliance with state Proposition No. 218, a notice ofthe proposed rate increase was mailed to all property owners and IMD customers within the City (see attached notice). In accordance with noticing procedures, a public hearing was established and scheduled for December 13, 2023. Although notices were sent to property owners and customer's only one protest can be accepted from each parcel within the City. At the time of staff report publication, the city has received 1 written protests. Without the sufficient number of protests the rate increase may move forward by City Council approval of a resolution. Accordingly, Resolution No. 2564 has been prepared for Council review and possible action (attached). RECOMMENDATION Staff recommends that the City Council open the public hearing, receive public comment on the rate increase, close the public hearing and approve Resolution No. 2564 to adopt the 2024 refuse collection rates. RESOLUTION 2564 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTOLA ADOPTING WASTE COLLECTION AND RESIDENTIAL RECYCLING RATES WHEREAS, in accordance with the Franchise Agreement between the City of] Portola and Intermountain Disposal the Portola City Council is considering an increase to waste collection and residential recycling rates billed by Intermountain Disposal to customers within the City; and, WHEREAS, the City Council has determined that the rate increase requested by Intermountain Disposal complies with the approved Franchise Agreement; and, WHEREAS, in accordance with Government Code section 54515, Government Code Section 54300, Part IofI Division 2 ofTitle 5ofthe Government Code and Proposition 218, a Public Hearing was held on December 13, 2023 to consider changes to waste collection and residential recycling rates billed by Intermountain Disposal toj property owners within the City of Portola and at the hearing the City Council received comments from the public regarding the proposed changes; and, WHEREAS, the City received fewer protests to the proposed increase in rates for waste collection and residential recycling than is required to prevent the City Council from increasing the fees. NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Portola that the waste collection and recycling rates charged to customers within the City ofPortola by Intermountain Disposal in accordance with its franchise agreement as shown on Exhibit "A", which is attached hereto and incorporated herein, are hereby adopted and shall take effect on January 1, 2024. PASSED, APPROVED AND ADOPTED this 13th day of December 2023 by the following vote: AYES:: NOES: ABSTAIN: ABSENT: Bill Powers, Mayor ATTEST: Jason Shaw, Deputy City Clerk I, Jason Shaw, Deputy City Clerk of the City of Portola, do hereby certify that the above and foregoing Resolution was duly passed and adopted by the City Council of the City of Portola at a regular meeting thereof held on December 13, 2023. Jason Shaw, Deputy City Clerk Resolution No. 2564 December 13, 2023 AMENDED AND EXTENDED EXCLUSIVE FRANCHISE AGREEMENT BETWEEN THE CITY OF PORTOLA AND INTERMOUNTAIN DISPOSAL, INC. FOR SOLID WASTE AND RECYCLABLE MATERIAL COLLECTION SERVICES AND OPERATION OF THE ENVIRONMENTAL RECLAMATION CENTER AT PORTOLA LANDFILL of the & % Rci AMENDMENT NO. 1, MODIFY SECTION 5.3, EXECUTED AUGUST 25, 2021 AMENDMENT NO. 2, ADD SECTION 5.6, EXECUTED APRIL 13, 2022 AMENDED AND EXTENDED EACLUSIVE FRANCHISE AGREEMENT FOR SOLID WASTE AND RECYCLABLE MATERIALS COLLECTION SERVICES AND OPERATION OF THE ENVIRONMENTAL RECLAMATION CENTER AT PORTOLA LANDFILL This Amended and Extended Exclusive Franchise Agreement for Solid Waste Collection and Recycling Services, ("Agreement"): is entered into this day of 2017 by and between the City of Portola ("City") and Intermountain Disposal, Inc., a California corporation ("Company"). RECITALS WHEREAS, the Legislature of the State ofCalifornia, by enactment ofthe California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et. seq.) ("AB 939"), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions to meet the goals and requirements of AB 939 and its successor legislation; WHEREAS, pursuant to California Public Resources Code Section 40059(a)(2), the City has determined that in order to protect the public health and safety of the residents and business within the City of Portola, it is appropriate to provide for solid waste collection and disposal by a private waste hauler as an alternative to providing such services through public resources; and to that end has determined that an exclusive Franchise be awarded to a qualified company for the Collection, transportation, Recycling, processing, and Disposal of Solid Waste and Recyclable Materials and other services to meet the goals and requirements of AB 939; which Franchise can be appropriately integrated into and function as part oft the solid waste system provided by the City; WHEREAS, Public Resources Code Section 40059 permits the City to impose terms and conditions on the award of a solid waste franchise if, in the opinion of the governing body, the public health, safety and well-being require the imposition of those terms and conditions; WHEREAS, Company has represented and warranted to the City that it has the experience, responsibility, and qualifications to conduct the services detailed herein for the collection, safe transportation and disposal of Franchise Materials as described herein; WHEREAS, the City Council oft the City of Portola determines and finds that: (i) based on Company's qualifications, technical proposal, and financial strength, as well as cost to the City, the proposal of the Company's to provide Collection, transportation, Recycling, and Disposal of Solid Waste services for single family residences, multifamily dwellings and commercial service Customers, as described in this Franchise, is in the best interest ofthe City and the public health and safety; and, (ii) the public health, safety and well-being require the grant of a franchise on the terms and conditions contained in this Franchise; 1 1 WHEREAS, Chapter 8.04.031 ofthe City ofPortola Municipal Code (City Code) requires, among other things, that a commercial collector or transporter of solid waste be properly franchised by the City; WHEREAS, the Company agrees to and acknowledges that it shall lawfully dispose of all Solid Waste collected pursuant to this Agreement at a permitted disposal facility; and WHEREAS, the City and the Company ("Parties") initially entered into a franchise agreement effective November 1, 2002 and hereto desire to enter into this amended and extended Agreement. NOW, THEREFORE, in consideration ofthe Recitals stated above, for good and valuable consideration, and ofthe terms, conditions, covenants and agreements contained herein, the Parties hereby agree as follows: ARTICLE 1. DEFINITIONS Whenever any term used in this Agreement has been defined by the provisions of the City of Portola Municipal Code or by Division 30, Part 1, Chapter 2 oft the California Public Resources Code, the definitions in the City Code shall apply first and then the Public Resources Code shall apply, unless the term is otherwise defined in this Agreement, in which case this Agreement shall control. Except as provided in Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1.1 AB 939 "AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et. seq.), as it may be amended from time to time. 1.2 Agreement 'Agreement" means this Franchise Agreement between the City and the Company for the Collection, transportation, Recycling, and Disposal of Solid Waste, Recyclable Materials, and other services related to meeting the goals and requirements of AB 939, including all exhibits and attachments, and any amendments thereto. 1.3 Appliances "Appliances" means refrigerator, freezers, ovens, ranges, clothes washers and dryers, water heaters and dishwashers. 1.4 Billings "Billings" means invoices generated by the Company for the purpose of collection of payments for the residential and commercial solid waste collection services. 2 1.5 Bin "Bin" means a solid waste container possessing a lid, the top ofwhich shall not exceed 72 inches in height from the surface ofthe ground and having a capacity of at least one cubic yard, but not more than eight cubic yards. 1.6 Bulky Waste "Bulky Waste" means large, oversize items such as an appliance, furniture, mattress and box spring. 1.7 Can "Can" means a solid waste container provided by the Customer, serviced by manual collection and not exceeding thirty-two (32) gallons in volume and not exceeding 40 pounds in weight. 1.8 Cart "Cart" means a plastic container with a hinged lid and wheels with a capacity of thirty-two (32), sixty-four (64) and/or ninety-six (96) gallons. 1.9 City "City"r means the City of Portola, a California Public agency. 1.10 City Manager "City Manager" means the city council appointed manager oft the affairs of the city of Portola. 1.11 City Code "City Code" means the City of Portola Municipal Code Solid Waste Ordinance, as it may be amended from time to time. 1.12 Collect/Collection "Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste and Recyclable Materials within and from the City of Portola. 1.13 Collection Vehicle "Collection Vehicle" means any vehicle or equipment specifically designed and manufactured for the purpose ofSolid Waste and Recyclable Materials Collection. 3 1.14 Company "Company" means Intermountain Disposal, and its officers, directors, employees, agents, companies owned by Company and, ifthe City approves a subcontractor pursuant to Section 10.4, its Subcontractors and/or, in the event of an assignment pursuant to Section 10.3, its assignees. 1.15 Company Compensation "Company Compensation" means the revenue received by the Company from Billings in return for providing services in accordance with this Agreement and any amendments to this Agreement. 1.16 Commercial Customer "Commercial Customer" means any person who produces commercial solid waste and uses a container, bin or debris box for accumulation thereof. 1.17 Construction and Demolition Debris "Construction and Demolition Debris" means waste building materials and rubble resulting from construction, remodeling, repair and demolition operations on pavements, houses, commercial buildings and other structures. 1.18 Containers "Containers" means any and all types of Solid Waste and Recycling receptacles, including Carts, Bins, and Debris Boxes. 1.19 County "County" means the County of Plumas, California 1.20 Customer "Customer" means the Person having the care and control of any Premises in the City of Portola who receives Solid Waste and Recyclable Material Collection services from the Company. 1.21 Debris Box "Debris Box" means an open-top solid waste container with a capacity of at least 10 cubic yards, but not greater than 50 cubic yards. 1.22 Disposal Site "Disposal Site" means the facility at which the City directs the Company to Dispose of Solid Waste. The Disposal Site may not be the site of ultimate disposition of Collected Solid Wastes. 4 1.23 Dispose or Disposal "Dispose" or "Disposal" means the disposition of Solid Waste Collected by the Company at the Disposal Site. 1.24 Disposal Cost "Disposal Cost" means the portion of the fee charged to the Customer that represents the cost of Disposal ofthe Solid Waste Collected, commonly referred to as the "gate fee.' 29 1.25 Effective Date "Effective Date" means the date this Agreement takes effect, as defined in Section 2.3. 1.26 "Electronic Waste" or "E-Waste" "Electronic Waste" and "E-Waste" means discarded consumer products such as computers, televisions, monitors, cell phones, radios and stereo equipment. 1.27 End Market "End Market" means the established destination for recyclable material that qualifies as a waste diversion credit for the purpose of compliance with AB 939. 1.28 Environmental Laws Environmental Laws" means all federal and state statutes, County and City ordinances concerning public health, safety and the environment including, without limitation, the Collection, transport and Disposal of Solid Waste, Hazardous Wastes and/or Recyclables, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC $9601 et. seq; the Resource Conservation and Recovery Act, 42 USC $6902 et. seq.; the Federal Clean Water Act, 33 USC $1251 et. seq.; the Toxic Substances Control Act, 15 USC $1601 et. seq.; the Occupational Safety and Health Act, 29 USC $651 et. seq.; the California Hazardous Waste Control Act, California Health and Safety Code $25100 et. seq.; the California Toxic Substances Control Act, California Health and Safety Code $25300 et. seq.; the Porter-Cologne Water Quality Control Act, California Water Code $13000 et. seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code $25249.5 et. seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder. 1.29 Facility "Facility" means any plant or site, owned or leased and maintained, operated or used by the Company for purposes of performing under this Agreement. 5 1.30 Franchise "Franchise" means the exclusive right granted by the City to provide Solid Waste and Recyclable Materials Collection services within the incorporated boundaries ofthe City of Portola. 1.31 Franchise Fee "Franchise Fee" means the fee paid by the Company to the City for the right to hold the Franchise granted by this Agreement. 1.32 Gross Receipts "Gross Receipts" means any and all revenues, receipts, or compensation in any form received by the Company for Solid Waste and Recyclable Materials Collection pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles (GAAP), including, but not limited to, Customer fees for Collection of Solid Waste and Recyclable Materials. Sales revenue from the sale of] Recyclable Materials is excluded from Gross Receipts; revenue generated by Company as the operator of a transfer station is also excluded to the extent the fees charged under this Agreement for such services are no more than the fair market value for such expenses. 1.33 Hazardous Substance "Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances". hazardous materials", Hazardous wastes", "toxic waste", 'pollutant" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC $9601. et. seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC $1802 et. seq.; (in) the Resource Conservation and Recovery Act, 42 USC $6901 et. seq; (iv) the Clean Water Act, 33 USC $1251 et. seq.; (v) California Health and Safety Code $$25115-25117, 25249.8,25281, and 25316; (vi) the Clean Air Act, 42 USC $7901; (vii) California Water Code $13050; (vill) any amendments, rules or regulations promulgated to such enumerated statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable federal, state or local environmental laws currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl's ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-products. 1.34 Hazardous Waste Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State ofCalifornia in Health and Safety Code $25110.02, $25115, and $25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC $6901), all future amendments thereto, and all rules and regulations promulgated thereunder. 6 1.35 Holiday "Holiday" means the days defined as holidays in City of Portola Municipal Code section 8.04.052C, which, as of the date this Agreement is executed, are New Year's Day, Independence Day, Thanksgiving Day, and Christmas Day. 1.36 Inert Wastes "Inert Wastes" means broken pieces of concrete and/or asphalt, free of reinforcing wire or steel bars and free of other decomposable materials. 1.37 Minimum Service "Minimum Service" means the required minimum level of Solid Waste Collection service and includes one 32-gallon Cart collected at least once per week. Minimum Service includes Recycling service for Commercial Customers but not for Residential Customers. 1.38 Multi-Family Residential Complex "Multi-Family Residential Complex" means complexes with three or more residential dwelling units including apartments, condominiums, triplexes, four-plexes and mobile home parks which are located on a single parcel. 1.39 Occupied "Occupied" means to dwell in a premise on a continuous, permanent basis, be it a residence or commercial structure. A primary residence is considered "occupied, 27 whereas a secondary or weekend residence is not. Proof of primary residency outside of Portola City limits may be established through documentation, including tax documents, credit card statements and voter registration documents. 1.40 Owner "Owner" means the Person or Persons holding the legal title to the real property constituting the Premises to which Solid Waste or Recyclable Materials Collection service is to be provided under this Agreement. 1.41 Party/Parties "Party" means either the Company or the City, and "Parties" means both the Company and the City. 1.42 Pass-Through Cost Pass-Through Cost" means any cost controlled and/or imposed by the City, county, state or federal government, over which the Company has no control, including, for example, tipping fees, increased franchise fees by the City, or other governmental mandates which has an effect upon the costs of fulfilling this Agreement which are not fully accounted for in the change in the 7 Consumer Price Index. A complete list ofthe Pass-Through Costs is attached hereto as Exhibit A. 1.43 Person "Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, the County ofl Plumas, the City ofl Portola, or special purpose district. 1.44 Premises "Premises" means any land or building in the City of Portola where Solid Waste and/or Recyclable Materials are generated or accumulated. 1.45 Putrescible Waste "Putrescible Waste" means wastes that are capable ofl being decomposed by micro-organisms with sufficient rapidity as to cause nuisances of odors, gases or other offensive conditions, and includes materials such as food wastes, offal, and dead animals. 1.46 Rates "Rates" mean the compensation Customers must pay Company for the Solid Waste and/or Recyclable Materials Collection Services, as detailed in Exhibit B. 1.47 Rate Year "Rate Year" means the twelve-month period from January 1st to December 31st, for each year of the Franchise agreement, except for year one of this Agreement which shall be from November 1, 2017 to December 31, 2018. 1.48 Recycle or Recycling "Recycle" or "Recycling" means any process by which materials which would otherwise become Solid Waste are Collected (source-separated, co-mingled, or as mixed waste), separated and/or processed and returned to the economic mainstream in the form of raw materials or products or materials which are otherwise salvaged or recovered for reuse. 1.49 Recyclable Materials "Recyclable Materials" means those materials that are normally part of the solid waste stream which have market value and can be segregated from non-recyclable wastes. 1.50 Residential Customer "Residential Customer" means that Customer receiving services for a residential Property. 8 1.51 Scrap Metal "Scrap Metal" means discarded metallic materials, generally free wood, plastic, paper and glass, including steel, tin, iron, aluminum and copper. Scrap metal does not include wire. 1.52 Solid Waste "Solid Waste" means putrescible and non-putrescible solid and semi-solid non-hazardous wastes generated by residential and commercial enterprises including, without limitation, garbage, refuse, trash, yard waste, construction and demolition debris, industrial wastes, and inert wastes. 1.53 Universal Waste "Universal Waste" means waste antifreeze, vehicle batteries and waste motor oil and used oil filters. 1.54 Waste Tire "Waste Tire" means a tire that is not on the wheel of a vehicle and is not suitable for its original intended use due to wear or damage 1.55 Yard Waste or Green Waste "Yard Waste" or "Green Waste" means lawn cuttings, weeds, leaves, and shrub and tree pruning materials which are less than six inches in diameter and less than four feet long. 9 ARTICLE 2. GRANT AND ACCEPTANCE OF FRANCHISE 2.1 Grant and Acceptance of Franchise Subject to the terms and conditions of this Agreement, and all applicable federal, state and local laws, regulations and/or ordinances, the City hereby grants to the Company an exclusive Franchise to Collect, transport, recycle, process, and Dispose of Solid Waste and Recyclable Materials accumulating in the City of Portola. The Company hereby accepts the exclusive Franchise on the terms and conditions set forth in this Agreement. Company acknowledges and agrees that the grant of the Franchise hereunder is intended to benefit the public interest in securing appropriate Solid Waste and Recyclable Materials services. The grant ofthis Franchise shall not preclude the City from adopting such ordinances or regulations as the City may determine are necessary for the public interest (including, but not limited to, the protection oft the public health, safety and welfare). Company shall be entitled to an increase in Rates, pursuant to Section 5.4, in the event that any such ordinance or regulation the City promulgates subsequent to the grant ofthis Franchise financially impacts the Company's cost(s) of performing this Agreement. 2.2 Exclusive Nature of Franchise During the term of this Agreement, except as otherwise provided in Section 2.6 below, or as may otherwise be provided by federal or state law, the rights granted to the Company under this Agreement shall be exclusive to the Company. Except as otherwise provided for herein, the City will not enter into any agreement with any other Person for the performance ofthe services exclusively granted to Company pursuant to Section 2.1. Company shall have the right to take such legal action against third parties as it deems appropriate to protect the exclusive nature ofi its Franchise. City shall, SO long as it is at no cost to the City, cooperate with Company to protect the Company's exclusive rights. 2.3 Effective Date The Effective Date ofthis Agreement shall be November 1, 2017. 2.4 Term of Agreement The term ofthis Agreement shall be ten (10) years and two (2) months, commencing November 1, 2017 and ending December 31, 2027, with an option for a five (5) year extension following the ten year and two month term, upon the mutual consent and agreement of the City and Company. 2.5 Delegation of Authority The administration ofthis Agreement by the City shall be under the supervision and direction of the City Manager, and the actions oft the City specified in this Agreement, unless otherwise stated, shall be taken by the City Manager. The City Manager shall not have any authority to 10 issue any instructions to or to authorize any actions by Company that are inconsistent with this Franchise, the City Code or any federal/state law or regulation. 2.6 Limitations on Scope of Franchise The Franchise granted to the Company shall be exclusive except as to the categories of Solid Waste and Recyclables listed in this Section. The granting oft this Franchise shall not preclude the categories ofSolid Waste and Recyclables listed below from being delivered to and Collected and transported by others provided that nothing in this Agreement is intended to or shall be construed to excuse any Person from obtaining any authorization from the City, which is otherwise required by law: (a) Solid Waste and Recyclable Materials which are removed from any Premises by the occupant and which are transported personally by the occupant of such Premises, by his relatives or friends without compensation of any type or form, or by his or her full-time employees, to a processing or Disposal Site; (b) Recyclable Materials which are donated to youth, civic, nonprofit, or charitable organizations and containers delivered for recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et. seq., California Public Resources Code; (c) Construction and demolition waste that is removed by a duly licensed construction or demolition company as part of a total service offered by said licensed company (provided that such construction and demolition waste is separated from Solid Waste), or by the City or by an other governmental entity; (d) Animal waste and remains from slaughterhouse or butcher shops for use as tallow; (e) By-products of sewage treatment, including sludge, sludge ash, grit and screenings; (f) Hazardous Waste, Hazardous Substances and radioactive waste, regardless ofits source; (g) The Disposal, diversion, or casual Collection or removal ofSolid Waste by the City, the County and/or any government entity by their officers or employees in the normal course oft their employment; and, (h) Any public or semi-public entity removing Solid Waste from its facilities or property with any public or semi-public entity equipment. (i) Industrial wastes, motor vehicles and parts thereof, discarded home and industrial appliances, and dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste. This grant to the Company of an exclusive Franchise, right and privilege to Collect, transport, or process and Dispose of Solid Waste and Recyclable Materials shall be interpreted to be consistent with state, federal and local laws and regulations, now existing or hereafter enacted during the term oft the Franchise, and the scope of this exclusive Franchise shall be limited by 11 current and any future state, federal and local laws and regulations with regard to Solid Waste handling, exclusive Franchise, control of Recyclable Materials, Solid Waste flow control, and related doctrines. In the event that future interpretations of current law, enactment or developing legal trends limit the ability of the City to lawfully provide for the scope of Franchise services as specifically set forth herein, the Company agrees that the scope ofthe Franchise will be limited to those services and materials which may be lawfully provided for under this Agreement. 2.7 City's Right to Direct Changes The City may direct the Company to perform additional services (including new diversion programs, etc.) or to modify the manner in which it performs existing services. Pilot programs and innovative services which may entail new Collection methods, different kinds of services and new requirements for Customers are included among the kinds of changes which the City may direct. Pursuant to Section 5.4, the Company shall be entitled to an adjustment in its Rates for providing any additional or modified services the City may request or require pursuant to this Section 2.7. Within ninety (90) days from the date when the City first requests the Company to perform such services, the Company and the City shall, in good faith, negotiate the terms and conditions of such additional or expanded services and the additional compensation due Company for the additional or expanded services. The Company shall be allowed such retroactive adjustments to its compensation, to be reflected in the Rates, to compensate the Company for any such additional services. The City shall also have the right, upon ninety (90) day written notice, to order the reduction or elimination of such additional services and to require a corresponding reduction in the Rates. 2.8 Ownership of Solid Waste Once Solid Waste and Recyclable Materials are placed in Containers and properly placed at the designated Collection location, ownership and the right to possession shall transfer directly from the Customer to the Company by operation of this Agreement. The Company is hereby granted the right to retain, Recycle, process, Dispose of, and otherwise use such Solid Waste, or any part thereof, in any lawful fashion or for any lawful purpose desired by the Company. Subject to the provisions of this Agreement, the Company shall have the right to retain any benefit resulting from its right to retain, Recycle, process, Dispose of, or reuse the Solid Waste and Recyclable Materials which it Collects. Solid Waste, and Recyclable Materials, or any part thereof, which is disposed of at a Disposal Site shall become the property ofthe Owner or operator ofthe Disposal Site(s) once deposited there by the Company. In no event shall Company Dispose of Recyclable Materials without first advising City, and obtaining City's consent that no viable market options then exist for the Recyclable Materials; Company shall provide City with such information as City may request with regard to any such proposed Disposal of Recyclable Materials by Company. 2.9 Company Status The Company represents and warrants that it is duly organized, validly existing and in good standing under applicable laws. Iti is qualified to transact business in the State ofCalifornia and has the power to provide services as required by this Agreement. 12 2.10 Company Authorization The Company has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of the Company (or the shareholders, if necessary) have taken all actions required by law, its articles ofincorporation, its bylaws or otherwise to authorize the execution ofthis Agreement. The Person(s) signing this Agreement on behalf of the Company have authority to do SO. Company shall designate one employee as a single point of contact for the City for issues arising under this Agreement, and this employee's actions shall be conclusively presumed to be taken on behalf of and with the full approval ofthe Company. 2.11 Validity of Company's Information and Representations Company warrants that the information supplied by Company and all representations made by Company and its officers, employees, agents and representatives in anticipation of the grant of this Franchise and as part of the negotiations leading to said grant are true and correct in all material respects. 2.12 Mandatory Service All Premises within City limits which are Occupied shall subscribe to Solid Waste Collection service provided by the Company. Any Person electing not to accept such service shall be required to pay the Minimum Service charge for solid waste service. Solid Waste Collection services shall be in the name and responsibility oft the property owner. Property owners or representatives of Occupied property shall make arrangements for Solid Waste Collection services directly with the Company. A current owner of an Occupied property is not responsible for a prior owner's payment ofCollection fees to the Company. Failure to pay such Minimum Service charge shall constitute a violation of section 8.04.100 ofthe City Code. 13 ARTICLE 3. SERVICES 3.1 General Scope of Services The work to be done by the Company pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The work to be done by the Company pursuant to this Agreement shall be accomplished in a thorough and professional manner SO that the residents within the City are provided reliable, courteous and high-quality Solid Waste and Recyclable Materials Collection at all times. 3.2 Disposal Site The City shall have the right to direct Solid Waste Collected under this Agreement to a Disposal Site. Unless and until City notifies the Company of a change, Solid Waste shall be transported for Disposal to the Delleker Transfer Station in Plumas County. Ifthe City elects to designate an alternate disposal site, any and all additional costs, including, without limitation, additional gate fees and transportation costs, shall be deemed a Pass-Through Cost and the Rates shall be adjusted accordingly in accord with Section 5.4. 3.3 Collection Services Customers shall receive: Solid Waste Collection services not less than one (1) time per week; curbside Recyclable Materials Collection shall be not less than once every other week; and elective curbside Yard Waste Collection services shall be once per week during the months of April through October. Collection services shall occur Monday through Friday between the hours of 7:00 A.M. and 6:00 P.M., unless Saturday collection shall be necessary due to Holiday scheduling. Ifthe regularly scheduled collection day falls on a Holiday, alternate collection shall be performed on the day prior to or following the Holiday, unless the alternate day falls on a Sunday; if the alternate day falls on a Sunday, then Collection shall be performed on the following Monday. Collection services are not allowed on Sundays unless explicitly directed by the City Manager. The Company shall notify Customers in advance of changes in Collection services schedules. 3.3.1 Carts Upon request ofa Customer, Company shall supply the Customer with one 32-gallon or one 64-gallon or one 96-gallon Cart (unless a Commercial Customer requests Bin service) with an option to obtain additional Carts at the Rates shown in Exhibit B. Carts shall be the property of Company during the term of this Agreement. 3.3.2. Bins A Commercial Customer may request the Company provide Bin service. In this event, Company shall provide the Commercial Customer with the requested Bin at the Rates shown on Exhibit B. Bins shall be the property ofthe Company during the term ofthis Agreement. 14 3.3.3 Recyclable Materials Collection 3.3.3.1 Curbside Recyclables Collection Company shall provide curbside Recyclable Materials Collection services. Company shall issue each Residential Customer requesting Curbside Recycling Collection services with a 64 gallon Cart and shall assess charges for the Cart at the Rates shown in Exhibit B. Recycling Carts shall be Collected by Company biweekly. Additional 64 gallon Carts for Recycling service shall be assessed monthly charges at the Rates shown in Exhibit B. Fees shall not be assessed to Customers for delivery and/or pick-up of Recycling Carts. Company shall Collect and remove all Recyclable Materials placed in Carts at the curbside. Recyclable Materials Collection from Carts within the City shall include, at a minimum, the following types of recyclable materials from Residential Customers: newsprint; cardboard; plastic containers (Nos. 1 to 6); glass containers; and aluminum containers Recycling Carts shall remain the property ofCompany at all times during the term ofthis Agreement and at termination. 3.3.3.2 Curbside Green Waste Collection Company shall provide curbside Green Waste Collection services. Company shall issue each Customer requesting Green Waste Collection services with at 96 gallon Cart and shall assess charges for the Cart at the Rates shown in Exhibit B. Green Waste Carts shall be Collected by Company weekly during the months of April through October. Additional 96 gallon Carts for Green Waste service shall be assessed monthly charges at the Rates shown in Exhibit B. Fees shall not be assessed to Customers for delivery and/or pick-up of Green Waste Carts. Green Waste Carts shall remain the property ofCompany at all times during the term of this Agreement and at termination. 3.3.4 Double-Up Customers who forget or who are unable to put their Containers out for Collection on any given week shall be allowed to put out their previous week's Solid Waste and/or Recyclable Materials, along with the current week's Solid Waste and/or Recyclable Materials, on their next scheduled Collection day. 15 3.3.5 Other Services on Exhibit B The Company shall provide additional Collection services, including, without limitation, Disposal of car and truck tires, Freon-free appliances, and mattresses. The Company shall charge the Rates stated in Exhibit B 3.3.6 Collection Location In the event physical conditions or safety concerns prevent curbside placement of Solid Waste and/or Recyclable Materials Containers, Company shall immediately notify Customer, in writing, of the reasons for the need to change the Container(s) location. Customer and Company shall mutually agree on an alternate Container(s) location. Ifthe parties cannot agree on the alternate Container(s) location, the City and the Company shall mutually agree on the appropriate Container(s) location. Debris Boxes shall not be dropped or placed on a public sidewalk, street or way, except: 1) in that portion of a sidewalk, street or way that may have been temporarily closed during the course of construction of an improvement on an adjoining property by order of the city; or 2) if an encroachment permit is obtained in advance from the City of Portola. 3.3.6.1 Enclosures Where the Collection location is within an enclosure, Company shall be responsible for the removal and replacement of all Bins or Containers placed therein that are at street level. Company shall use sufficient care in the handling ofsuch Bins or Containers to prevent damage to the enclosure, the enclosure doors, and adjacent facilities or improvements, SO long as such items do not obstruct access to the enclosure. Company shall repair, at its own expense, any damage to such enclosure or adjacent facility or improvement within thirty (30) days ofr receipt of notice from City. Company shall not be responsible for repair of damage to buildings, grounds and appurtenances on Customer Premises, except for damage that was caused by Company negligence or willful misconduct. 3.4 Other Services 3.4.1 Debris Box Services The Company shall offer Debris Box Services for the Collection of Non-Putrescible Solid Wastes and/or Construction and Demolition Debris. Putrescible Wastes shall be prohibited from disposal in Debris Boxes. The Company shall deliver and Collect Debris Boxes and shall access Customer charges at the Rates shown in Exhibit B. 16 3.4.2 Free Clean-up Day The Company operates the Delleker Transfer Station under an agreement with Plumas County. On the second Saturday ofMay each calendar year, Company shall allow City ofPortola Residential Customers free access to the Delleker Transfer Station for Disposal of Solid Wastes the entire day the transfer station is open for trash Disposal. The quantity of free Disposal shall not exceed five (5) cubic yards (roughly equivalent to one standard size pick-up truck bed capacity) per Residential Customer. Free disposal shall not include car and truck tires and bulky items (such as appliances). Residential Customers shall be required to provide proof of City residence in a manner acceptable to Company for free clean-up day services. 3.4.3 Free Yard Waste Disposal The Company operates the Environmental Reclamation Center at Portola Landfill under agreement with the City. Company shall, in conjunction with this Agreement, allow City ofPortola Residential Customers free access for Yard Waste Disposal at the Recycling Facility at Portola Landfill during the month ofMay annually. Residential Customers shall be required to provide proof ofCity residence in ai manner acceptable to Company for free Yard Waste disposal services. 3.5 Litter Abatement The Company shall use due care to prevent Solid Waste, Recyclable Materials or fluids from leaking, being spilled and/or scattered during the Collection or transportation process. Ifany Solid Waste or fluids leak or are spilled during Collection, the Company shall promptly clean up all such materials. Each Collection vehicle shall carry a broom and shovel at all times for this purpose. The Company shall not transfer loads from one vehicle to another on any public street unless it is necessary to do sO because of mechanical failure, accidental damage to a vehicle, or a method pre-approved by the City for Solid Waste transfer between vehicles. 3.6 Service Exceptions; Hazardous Waste Notifications 3.6.1 Contaminated Recycling and Green Waste Carts The Company shall warn Customers who have non-recyclables and non-green wastes in their Recycling and Green Waste Carts, respectively. If, after two (2) sequential written warnings, the Recycling or Green Waste Cart continues to be contaminated, the Company may remove the Cart from the Customer's Premises. The Company shall report monthly to the City any such warning notices issued and Recycling and Green Waste Carts that have been removed from a Customer's Premises. 3.6.2 Hazardous Materials The Company reserves the right to inspect Solid Waste and Recyclable Materials put out for Collection, the right to reject Solid Waste and Recyclable Materials observed to be contaminated with Hazardous Waste and/or Hazardous Substances, and the right to not Collect Hazardous Waste and/or Hazardous Substances put out with Solid Waste. 17 Further, the Company shall reasonably inspect Solid Waste and Recyclable Materials for Hazardous Waste and/or Hazardous Substances that are exposed and obvious during the normal and customary provision ofthe services, and shall not Collect such Hazardous Waste and/or Hazardous Substances. The Company shall notify all agencies with jurisdiction, if appropriate, including the California Department ofToxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste or Recyclable Materials anywhere within the City. In addition to other required notifications, ifthe Company observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes or Hazardous Substances unlawfully disposed of or released on any City or other public property, including storm drains, streets or other public rights ofway, the Company will immediately notify the City or the appropriate public entity. 3.6.3 Failure to Collect Notices When Solid Waste or Recyclable Materials are not Collected from any Customer, the Company shall notify the Customer in writing, at the time Collection is not made, through the use ofa' "tag" or similar written notice, explaining the reasons why the Collection was not made. 3.7 Missed Collections; Requested Pick-ups Under City Code, Customers shall set-out Containers by 7:00 AM on regularly scheduled Collection days. Ifthe Customer has set-out Container by 7:00 AM and the Company misses the pick-up, the Company shall Collect the Solid Waste and/or Recyclable Materials within one (1) business day at no additional charge to Customer. Ifthe Customer does not set-out the container by 7:00 AM, Customer is allowed to double-up on the next scheduled Collection day, in accordance with Section 3.3.4. Ifthe Customer does not set-out the container by 7:00 AM and desires for pick-up within one (1) day, Company may assess Customer a return trip charge, in accordance with Exhibit B. 3.8 Customer Service 3.8.1 Company Office Company shall provide an office proximately located to Portola, California, and office hours shall be, at a minimum, from 8:00 A.M. to 5:00 P.M., Monday through Friday, excluding holidays. A responsible and qualified representative ofthe Company shall be available during office hours for communication with the public at the office. Automated telephone answering systems with menu-driven options must provide callers with an option to connect to a live operator. Phone answering staff shall be competent to handle questions on Company's specific programs. The Company shall also maintain a telephone number for use during other than normal business hours. The Company shall have a representative, answering service, or message providing/receiving live or voice- mail service available at said after-hours telephone number. After-hours calls shall be responded to on the next business day. Company shall provide the City with the phone number ofa representative who may be reached twenty-four (24) hours a day. 18 3.8.2 Customer Service Complaints All service complaints shall be directed to the Company. Daily logs of complaints concerning Collection of Solid Waste shall be retained for a minimum of twenty-four (24) months and shall be available to the City at all reasonable times upon request. The Company shall log all complaints received by telephone and said log shall include the date and time the complaint was received, name, address and telephone number of caller, description of complaint, employee recording complaint and the action taken by the Company to respond to and remedy complaint. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day of receipt. The Company shall log action taken by the Company to respond to and remedy all complaints. All Customer service complaint records and logs kept by the Company shall be provided to the City on a quarterly basis. Company shall supply the City, within fifteen (15) days of end of the calendar quarter, copies of all complaints, and the Company shall indicate the disposition of each complaint. The City shall, at any time during regular Company business hours, have access to the Company's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. 3.9 Education and Public Awareness 3.9.1 General Company acknowledges and agrees that education and public awareness are critical and essential elements of any efforts to achieve AB 939 goals and subsequent legislation regarding waste reduction and diversion from landfill disposal. Accordingly, the Company agrees to implement a public education program to expand public and Customer awareness concerning the need to and methods ofi reducing, reusing and Recycling appropriate Recyclable materials. City shall cooperate fully with Company in this regard. All public education materials shall be approved in advance by the City. All printed materials shall be printed on recycled paper. City may require the Company to perform mailing services, related to Solid Waste matters, on the City's behalf. City will provide not less than thirty (30) days notice to the Company prior to the mailing date of any proposed mailing to permit the Company to make appropriate arrangements for inclusion oft the City's materials. The City will provide the Company the mailers at least fifteen (15) days prior to the mailing date. The City shall bear the expense of reproduction and distribution of such additional information, including, without limitation, postage and insertion costs, only to the extent it is in excess ofthe Company's normal billing costs and represents services beyond the approved public education plan. 19 Company will provide a minimum ofthe following public education items to be developed and distributed at Company's expense: Annual Brochures - The Company shall prepare and distribute a brochure informing customers of the available services, how to use such services, rates for services, Holiday schedules, and of the Recycling programs the Company offers. Corrective Action Notice For use in instances where the Customer sets out inappropriate materials. Public Service Announcements Company shall produce and distribute two (2) public service announcements per year to advertise such events as, for example, Free Disposal Day. Such announcements shall be at least 1/8 ofai newspaper page in size. Recycling information, tips, state requirements and how to instructions related to AB 341 and AB 1826 regarding commercial recycling and organic wastes diversion. All brochures, mailings, and other educational materials shall bear the City ofl Portola seal, unless otherwise approved by the City. The Company shall obtain the City's approval, which shall not be unreasonably withheld, before distributing any public education materials. 3.10 Personnel 3.10.1 General The Company shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department ofMotor Vehicles. The Company also agrees to establish and vigorously enforce an educational program which will train the Company's employees in the identification of Hazardous Waste. The Company's employees shall not knowingly place such Hazardous Waste in the Collection vehicles. The Company shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, the Company shall take necessary corrective measures. Ifthe City has notified the Company of a complaint related to discourteous or improper behavior, the Company will consider reassigning the employee to duties not entailing contact with the public while the Company is pursuing its investigation and corrective action process. 20 The Company shall provide suitable health and safety training for all ofits employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. 3.10.2 Identification Required The Company shall provide its employees with identification for all individuals who may make personal contact with residents or businesses in the City of Portola. The City may require the Company to notify Customers yearly ofthe form of said identification. Company shall require its drivers and helpers to wear clean, standardized shirts and/or safety vests bearing the name Intermountain Disposal." 3.10.3 Fees and Gratuities Company shall not permit its employees or agents to demand or solicit, directly or indirectly, any additional compensation or gratuity from members ofthe public for the services under this Agreement. Notwithstanding the foregoing, Company's employees shall be entitled to receive unsolicited de minimus gratuities including, but not limited to, Christmas tips or presents. 3.10.4 Non-Discrimination The Company shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, sexual orientation, age, physical handicap or medical condition in violation of any applicable federal or state law. 3.11 Equipment 3.11.1 Collection Vehicles The Company shall not use any truck or other vehicle for the removal or transportation of any Solid Wastes and Recyclable Materials from any property within the City unless the same conforms to the specifications set forth in this section. Vehicles used for the collection of any and all Solid Wastes shall be ofthe mechanical- compaction type, provided that in the case of an emergency such as mechanical breakdown or other cause beyond the control oft the Company, the City Manager may, upon the request of the Company, approve the use ofnon-mechanical compaction-type equipment for a limited period oftime during such emergency, as determined by the City Manager. Only enclosed covered-body-type vehicles shall be used for the collection of solid wastes. Each collection vehicle shall be maintained in a clean and mechanically safe condition. Each collection vehicle shall be constructed and maintained in such manner that it is watertight and free from odor leakage. 21 All vehicles shall be painted and legibly bear the name of the Company. Said company name, colors, and size oflettering must first be approved by the City Manager. Advertising on the Company's refuse collection vehicles for companies or entities other than the Company is prohibited. Doors and openings to collection vehicle bodies shall be kept closed at all times when said vehicles are not being loaded or unloaded of Solid Wastes and Recyclable Materials. All vehicles shall be of such type and design and shall be operated in such manner SO as not to incur any damage to public or private property in their use and operation. 3.11.2 Solid Waste Containers Except as otherwise provided in this chapter, Carts for the storage of Solid Wastes shall: > Have tight-fitting covers for holding garbage without leakage or escape of odors; > Have suitable handles and wheels; > Be constructed ofwatertight metal or plastic materials; Be provided to residences in sizes of32, 64 and 96 gallons, as specified by each Residential or Commercial Customer. 3.11.3 Bins Bins for the collection of commercial solid wastes shall possess a tight-fitting lid, the top of which shall not exceed 72 inches in height from the surface oft the ground and shall have a capacity of at least one cubic yard, but not more than eight cubic yards. Bins shall be water tight and shall not be in such a state of disrepair as to constitute an unsightly nuisance. Bins shall contain the Company name in a conspicuous place on the exterior of the bin. 3.11.4 Debris Boxes Debris boxes for collection of dry solid wastes (non-putrescible) shall be an open-top container with a capacity ofat least 10 cubic yards and not greater than 50 cubic yards. Such boxes shall be SO maintained and handled as to not permit the contents placed therein to fall or be blown from to create litter. To this end, all filled or partially-filled debris boxes shall be covered during transport to prevent litter generation. Debris Boxes shall not be in such a state of disrepair as to constitute an unsightly nuisance. Debris Boxes shall contain the Company name and phone number in a conspicuous place on the exterior of the box 3.12 Operation of the Environmental Reclamation Center at Portola Landfil 3.12.1 Scope The Company shall operate Environmental Reclamation Center (ERC) sited at Portola Landfill. The following materials shall be accepted by the Company at the ERC: 22 > Yard Wastes A Tree Stumps Yard wastes, defined as grass, leaves, and branches, shall be accepted for disposal. Any ash generated by burning ofyard wastes shall be disposed ofby the Company at an approved facility, but not at Portola Landfill. Company shall be responsible for lawful Disposal of all Yard Wastes. The Company may accept additional materials for recycling at the ERC, provided, however, that the City grants approval to do SO and appropriate permit modifications are obtained from state and local environmental agencies. 3.12.2 Hours of Operation The ERC shall be open to the public (includes both City of Portola and County of Plumas residents) on Saturday's, during the hours of 10 a.m. to 2 p.m. from the first Saturday in April through the last Saturday in October. The ERC may be closed if a national holiday, such as Independence Day, falls on a Saturday. The ERC shall be fully staffed by the Company, including personnel to inspect loads and assess and collect fees and to monitor the public for safe and proper unloading of the recyclable materials. The Company may, at the Company's discretion, allow commercial generators access to the ERC during times and hours mutually agreed to between the Company and the commercial entity. 3.12.3 Term Company operation of the ERC shall coincide with Section 2.4 of this Agreement. 3.12.4 Compensation for Operation of the ERC The Company shall be compensated for operation oft the ERC solely from gate fees collected during the Hours ofOperation. The gate fee schedule for the ERC is included in Exhibit B. The Company may petition the City Council for modifications to the ERC fee schedule, as necessary. The City shall have access for disposal of tree trimmings and Yard Wastes at the ERC free of charge. 3.14.5 Permit Compliance The Company shall abide by all conditions established for operation ofthe ERC, as enforced by the State of California, and all state and federal laws and regulations applicable to operation oft the ERC. This includes, but is not limited to, those portions of the Solid Waste Facility Permit No. 32-AA-0007 and Waste Discharge Requirements Order No. R5-2015-0083 which directly affect operation of the ERC (such as storm water runoff controls), and applicable regulations enforced by the Northern Sierra Air Quality Management District. 23 3.14.6 Health and Safety The Company shall ensure that all employees working at the ERC are provided appropriate health and safety equipment (such as safety vests, glasses and shoes) and have appropriate training to handle both exposure and response to hazardous materials and/or other emergency conditions. To this end, the Company shall file with the City and keep current the Company's Injury and Illness Prevention Plan prior to commencing operation of the ERC. The Company shall be responsible for the clean-up of any spills of hazardous materials associated with operation of the ERC. 3.14.7 Equipment The Company shall provide all equipment necessary for operation ofthe ERC and shall maintain equipment in good working order, including compliance with all state and federal OSHA regulations 3.14.8 Records The Company shall maintain all records of receipt of materials at the ERC and dates and disposition of all materials. The Company shall report recorded data to the City by the 15th day following the calendar quarter in which the materials were collected and/or disposed of. 3.14.9 Additional Services The City shall be entitled to request additional services ofthe Company for mutually agreed to compensation regarding other needed activities at Portola Landfill. 3.14.10 Insurance for Operation of the ERC The Company shall procure and keep in force the following insurance policies and minimum coverage amounts during the term of this agreement for operation of the ERC. The City, and its elected and appointed officers, employees, agents and assigns shall be named as additional insured on said policies. The Company shall deliver the insurance policies with endorsements to the City at least 7 days prior to commencement of operation oft the ERC. $1,000,000 for the death of ori injury to any one person in any one accident; $2,000,000 for the death of or injury to more than one person in any one accident; and $1,000,000 for property damage in any one accident. 3.14.11 Violations Company shall be responsible for regulatory agency issued violations (and noted areas of concern) oft the permits required for operation of the ERC. City shall be responsible for regulatory agency issued violations (and noted areas of concern) oft the permits required for Portola Landfill. 24 ARTICLE 4. BILLINGS AND OTHER FEES 4.1 Billing for Services Company shall bill Customers directly for Solid Waste, Recyclable Materials and Green Waste Collection services provided pursuant to this Agreement. Company shall design billing formats that show a composite fee reflecting the total cost oft the service provided. New Customers shall be billed on a pro-rata basis based upon the date services for that Customer commence. The Franchise Fee the City may set in accord with this Agreement shall not be separately itemized on the bill unless otherwise directed by the City. Company shall bill Commercial Customers monthly in advance and Residential Customers quarterly in advance. Customers who request Debris Box services shall pay for such services in advance. Customers may also be billed for replacement of containers if damaged beyond normal wear. Company shall retain all billing records for not less than five (5) years. In the event of a billing dispute with a Customer, Company and City will mutually agree on a resolution. 4.2 Delinquencies; Termination of Service All Company billings shall be paid in full within 30 days ofthe billing date. For any bills that become delinquent due to no fault of the Company, Company shall send Customer a notice of delinquency. Arrangements for collection of delinquent payments shall be made between the Company and an individual customer. Late fees for past due invoices may be assessed by the Company at an interest rate of not more than eighteen percent (18%) per annum (or 1.5% per month). 4.3 Franchise Fee Company shall pay the City for the privilege, and as the sole and exclusive consideration ofthe licenses granted hereby, a ten percent (10%) Franchise Fee on all Gross Receipts generated as a result of Company providing service in the City ofPortola. In no event shall Company pay the City a Franchise Fee on the receipts from the sale of Recyclable Materials the Company may Collect in the City ofl Portola. Company shall remit the Franchise Fee semi-annually on or before May 15th and November 15th for the prior six (6) month period. In the event that Company fails to timely pay the Franchise Fee, the City shall be entitled to make a demand on the Performance Bond required pursuant to Section 7.3 to secure payment of the fees; provided, however, that the City must first provide Company reasonable written notice ofi its intent to make a demand against the Performance Bond to offerthe Company the opportunity to seek dispute resolution procedures pursuant to Section 9.6. Documentation to support the Franchise Fee amount shall be included with the semi-annual payment. Documentation shall include the basis of calculation for the Franchise Fee amount and shall be certified as true and correct by an officer ofthe Company. Said documentation shall include revenues received under this Agreement, outstanding accounts receivable, bad debt write-offs and recoveries. City may raise or lower the Franchise Fee above or below ten percent (10%) during the term of this Agreement. IfCity elects to increase the Franchise Fee percentage, such fees shall be deemed a Pass-Through Cost and Company shall be entitled to an immediate adjustment in 25 accordance with section 5.4 ofthis Agreement. IfCity lowers the Franchise Fee, Company and City shall negotiate an adjusted fee schedule commensurate with the lower fee. 4.4 Other Fees The City shall reserve the right to set other fees, as it deems reasonably necessary. The amount, time and method of payment will be set as provided in Section 4.3 above. Such fees shall be deemed a Pass-Through Cost and Company shall be entitled to an immediate adjustment retroactive to the date ofi implementation in accordance with section 5.4 oft this Agreement. 26 ARTICLE 5. COMPANY COMPENSATION AND RATES 5.1 Receipts from the Sale of Recyclable Materials The City and Company agree that the Company will retain all proceeds from the sale of Recyclable Materials. 5.2 Initial Rates Except as provided in Paragraph 5.4 below, the Rates for the first year ofthis amended and extended Agreement (November 1, 2017 through December 31, 2018) shall not exceed those set forth in Exhibit B. Thereafter, Rates will be adjusted annually based on the formula set forth in section 5.3. 5.3 Annual Adjustments to Rates (Amendment No. 1) Effective January 1st of each Rate Year, commencing on the 1st day of Rate Year 2 (January 1, 2019) the Company shall automatically be entitled to increase the Rates for all services by an amount equal to the following formula: > Annual Rate Adjustment = Current Rate X [1 + (0.9 X Percent Change CPI Index) + (0.1 X Percent Change Fuel Index);], where: Percent Change CPI Index = Annual Percent Change in the September August Consumer Price Index for AIl West Urban Consumers, Non- seasonally. Adjusted,for the Preceding Year (Bureau ofLabor Statistics Series ID CUUR400SAO), and Percent Change Fuel Index = Annual Percent Change in the September August California No. 2 Diesel Retail Sales by. AIl Sellers, as published by the U.S. Energy Information Administration. For Rate Year 5 (commencing January 1, 2022), the annual adjustment to Rates shall base the CPI and fuel calculations using indices from September 2020 through August 2021. For Rates which were adjusted on April 1, 2021, the CPI and fuel calculation shall use indices from April 2021 through August 2021. Thereafter, all subsequent annual Rate increases (commencing Rate Year 6) shall use August to August CPI and fuel indices. In the event the change in the rate increase, under the above formula, is greater than five percent (5%) in any given Rate Year, then the percentage increase in excess of the five percent (5%) shall be carried over to the next Rate Year, subject to the five percent maximum annual increase. Company may petition City for a waiver ofthe Rate adjustment 5% cap ifthe calculated increase exceeds 5% annually for two consecutive years. No Rate increase pursuant to this Section 5.3 shall be effective until, and unless, Company provides the City sixty (60) day written notice ofits intent to exercise its right to an annual Rate increase and after compliance with Proposition 218, provided there has been an insufficient protest to prohibit an increase in Rates. 27 The City and the Company may mutually agree for the City to adopt a schedule ofrates authorizing automatic adjustments for inflation for up to five (5) years in accordance with California Government Code section 53756. 5.4 Proposition 218 Compliance Company shall prepare and issue State of California Proposition 218 compliance notices to all Customers in conjunction with any increase to Rates. City shall provide to Company written Proposition 218 notice language. For annual adjustment to Rates, all Proposition 218 notices shall be prepared and mailed to Customers no later than October 31st. Company shall be entitled to charge Customers no more than $0.10 per month per Customer monthly invoice for expenses related to printing and mailing ofCity-supplied Proposition 218 notices. 5.5 Pass-Through Costs The Company shall be entitled to petition the Portola City Council for Rate increases based on increases in the cost of doing business for costs other than those normally associated with the Consumer Price Index and California Diesel Retail Sales costs. Those Pass-Through Costs are described in Exhibit B. For adjustments to the Rates above and beyond the annual increases, the Company shall document the changed conditions that have caused increases in the cost of doing business and provide justification for the requested Rate increases. The Portola City Council shall consider the Company's documentation and any other relevant information prior to approving any Pass- Through Cost Rate increase. The City Council may, at its sole discretion, after compliance with Proposition 218 and provided that there has been an insufficient protest to prohibit an increase in Rates, approve all, a portion, or none of the Company's request for a Rates adjustment. Ifthe City Council does not approve, or the Parties cannot otherwise agree on, the Rate increase, then, within ten (10) days oft the City Council denying the Rate increase, the Company may seek mediation, in which case, the Parties shall mediate the dispute pursuant to Section 9.6. If mediation is unsuccessful, then the Company may request arbitrations, in which case the Parties shall arbitrate the dispute pursuant to Section 9.6. The decision of the arbitrator shall be final and non-appealable by either Party. 5.6 Elimination of Customer-Supplied Cans (Amendment No. 2) To facilitate Company's transition to new Residential Solid Waste Collection equipment during calendar year 2022, Company shall replace Customer-supplied Cans with a Waste Cart coincident with Company's deployment of an automated side-loader Collection vehicle. Company shall contact each Customer who uses and are charged fees for Customer-supplied Cans at least two (2) weeks prior to the date of the anticipated change to an automated side- loader Collection vehicle. Company shall confirm with each affected Customer the size of Waste Cart to replace the Customer-supplied Can(s). 28 Company shall waive Waste Cart delivery charge for all affected Customers who subscribe to and pay fees for Customer-supplied Cans at the time of Company's transition to an automated side-loader Collection vehicle. The Rates for Customer-supplied Cans in the Rates schedule shall be eliminated upon Company's commencement of Residential Solid Waste Collection using an automated side- loader Collection vehicle. 29 ARTICLE 6. RECORDS AND REPORTS 6.1 General The Company shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, the Company agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with applicable laws and regulation and to meet the reporting and Solid Waste program management needs of the City. 6.2 Records 6.2.1 General The Company shall maintain records required to conduct its operations, to support requests it may make to the City, and to respond to requests from the City. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data records shall be protected and backed up. All records shall be maintained for three (3) years after the expiration ofthis Agreement. The Company agrees that the records of operations addressed in the Agreement shall be provided or made available to the City during normal business hours. The City may review or utilize any of the records described in this section for any purpose whatsoever. 6.2.2 Solid Waste and Recycling Records Records shall be maintained by the Company for the City relating to: (a) Customer services and billing; (b) Routes; (c) Facilities, equipment and personnel used; (d) Complaints; (e) Missed pick ups; (f) Number of Solid Waste and Recycling Containers; and (g) Tons of Solid Waste Company Collects, processes, diverts, Recycles, and Disposes; and (h) Any other records that City may request in order to comply with any reporting obligations under any federal, state or local law or regulation 30 and/or as a condition of any grant, loan or other funding agreement to which City may presently or hereinafter be a party. 6.2.3 CERCLA Defense Records The City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. The Company shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy ofthe reports required in Section 8.3 for five (5) years after the term ofthis Agreement, or provide copies of such records to the City. 6.2.4 Complied Financial Statements Company shall provide City with full disclosure compiled financial statements no less than every six months. Company shall provide City with access to financial records that pertain to services performed under this Agreement. The Company shall cooperate in making financial records available to City at reasonable times. The City Manager (or designee) may inspect financial records in the Company's business office. City shall have the right to examine revenue and other related records as deemed necessary by the City. At the City's request, the Company financial statements shall be examined by an independent Certified Public Accountant, at the City's expense. If significant and/or material discrepancies are found during the examination by the Certified Public Accountant, a more comprehensive review or audit shall be conducted at the Company's expense. 6.3 Reports 6.3.1 Report Formats and Schedule The Company shall submit quarterly and annual reports to the City in a form prescribed by the City Manager and which provides information on the Company's solid waste Solid Waste and Recyclable Materials Collection operations, within the boundaries ofthe City. Said reports shall be submitted to the city no later than thirty (30) days after the end of each calendar quarter. Documentation supporting the amount of Recyclable Materials Collected, delivered to appropriate End Markets, or otherwise disposed of, and any other documentation and necessary to verify the Company's Recycling operations, shall be maintained by the Company for at least three years All reports shall be submitted to: City Manager City of Portola P.O. Box 1225 Portola, CA 96122 31 6.3.2 Quarterly Reports The information listed shall be the minimum reported: (a) Solid Waste Collected, Recycled, and Disposed ofby the Company for the quarter (in tons). (b) Materials Recovered. Statement showing kinds of material and quantity sold (in tons). (c) Complaint summary for the quarter summarized by nature of complaints on a compatible computer disc. (d) Narrative summary of problems encountered (including scavenging) and actions taken with recommendations for the City, as appropriate. (e) Number of accounts by category shown for each month for Customers billed by the Company. (f) Copies of promotional and public education materials sent during the quarter. 6.3.4 Annual Report The Annual Report is to be essentially in the form and content ofthe quarterly reports combined, but shall also include: (a) An account list ofall commercial Customers billed by the Company, including service address, billing address, service levels (i.e. number of Containers, Container size, and frequency of service) and monthly rates. (b) Number of Carts in service by type of Customer (Residential, Commercial), service (Solid Waste, Recycling). (c) CERCLA Defense records required under Section 6.2.3. (d) Name, address, and phone numbers of all residential Customers. 32 ARTICLE 7. INDEMNIFICATION. INSURANCE AND BOND 7.1 Indemnification The Company hereby agrees to and shall defend, indemnify and hold harmless the City, its elected and appointed officers, employees, and agents (collectively the "Indemnitees") from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death ofa any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the actions, omissions, negligence or willful misconduct of the Company, its officers, employees, agents, and Subcontractors in performing services under this Agreement; (2) the failure ofthe Company, its officers, employees, agents, and Subcontractors to comply in any and/or all respects with the provisions ofthis Agreement, applicable laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts ofthe Company, its officers, employees, and agents in performing services under this Agreement for which strict liability is imposed by law (including, without limitation, the Environmental Laws). The Company further agrees to and shall, upon demand oft the City, at the Company's sole cost and expense, defend (with attorneys reasonably acceptable to the City) the Indemnitees against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any oft the aforementioned events. 7.2 Insurance The City does not, and shall not, waive any rights against the Company which it may have by reason ofthe aforesaid defense, indemnity and hold harmless obligations, because of acceptance by the City or the deposit with the City by the Company of the insurance policies described in this provision. Company shall procure and maintain for the duration ofthis Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance oft the work hereunder and the results of that work by the Company, his agents, representatives, employees, or subcontractors. With respect to General Liability, Errors & Omissions, Contractors Pollution Liability, and/or Asbestos Pollution Liability, coverage should be maintained for a minimum of five (5) years after contract completion. A. Minimum Scope and Limit of Insurance. The Company shall maintain in force for the term of this Agreement insurance coverage as broad as: 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. Ifa general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. 33 2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering any auto (Code 1), or if Company has no owned autos, hired (Code 8) and non-owned (Code 9) autos, with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit ofi no less than $1,000,000 per accident for bodily injury or disease. 4. Contractors Pollution Liability and/or Asbestos Pollution Liability and/or Errors & Omissions applicable to the work being performed, with a limit no less than $2,000,000 per claim or occurrence and $2,000,000 aggregate per policy period of one year. Ifthe Company maintains broader coverage and/or higher limits than the minimums set forth above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Company. Any available insurance proceeds in excess of the specified minimum limits ofinsurance and coverage shall be available to the City. B. SelfInsured Retentions Self-insured retentions must be declared to and approved by the City. At the option of the City, the Company shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Company shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. C. Other Insurance Provisions 1. The General Liability, Automobile Liability, Contractors Pollution Liability, and/or Asbestos Pollution policies are to contain, or be endorsed to contain, the following provisions: a. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds with respect to liability arising out of work or operations performed by or on behalf of the Company including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Company's insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms iflater revisions used). b. For any claims related to this project, the Company's insurance coverage shall be primaryi insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, 34 employees, agents, or volunteers shall be excess ofthe Company's insurance and shall not contribute with it. C. Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. 2. The Automobile Liability policy shall be endorsed to include Transportation Pollution Liability insurance, covering materials to be transported by Company pursuant to this Agreement. This coverage may also be provided on the Contractors Pollution Liability policy. 3. If General Liability, Contractors Pollution Liability and/or Asbestos Pollution Liability and/or Errors & Omissions coverages are written on a claims-made form: a. The retroactive date must be shown, and must be before the date ofthis Agreement or the beginning of contract work. b. Insurance must be maintained and evidence ofinsurance must be provided for at least five (5) years after completion of the contract ofwork. C. Ifcoverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective date, the Company must purchase an extended period coverage for a minimum of five (5) years after completion of contract work. d. A copy of the claims reporting requirements must be submitted to the City for review. e. If the services involve lead-based paint or asbestos identification / remediation, the Contractors Pollution Liability shall not contain lead-based paint or asbestos exclusions. Ifthe services involve mold identification / remediation, the Contractors Pollution Liability shall not contain a mold exclusion and the definition of"Pollution" shall include microbial matter including mold. D. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A:VII if admitted in the State ofCalifornia. E. Verification of Coverage Contractor shall furnish the City with original Certificates of] Insurance including all required amendatory endorsements (or copies oft the applicable policy language effecting coverage required by this Agreement) and a copy of the Declarations and Endorsement Page oft the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Company's obligation to provide them. The City reserves the right 35 to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. F. Waiver of Subrogation Company hereby grants to City a waiver of subrogation which any insurer may acquire against City, its officers, officials, employees, and volunteers, from Company by virtue of the payment of any loss. Company agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor oft the City for all work performed by the Company, its employees, agents, and subcontractors. G. Subcontractors Company shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Company shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a format least as broad as CG 38 04 13. H. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. I. No Limitation of] Liability The minimum amounts set forth in this Agreement for such insurance shall not be construed to limit the liability of the Company to the City under this Agreement to the amounts of such insurance 7.3 Faithful Performance Bond The Company shall, at least fourteen (14) days prior to the commencement of operation, file with the City a performance bond in the amount of fifty thousand dollars ($50,000) payable to the City for all losses and damages the City may sustain as a result of any act or omission oft the Company, its employees and agents arising from the operation or termination ofthe services under this Agreement, and including any payments required to be made to the City hereunder. Such bond shall be obtained from an insurance company licensed to do business in the State of California with a Best's Guide rating of"B" or better, or, in the alternative, an unlicensed, U.S. domiciled company with a Best's Guide rating of"A", and shall be in a form approved by the City Manager. In no event shall the amount ofs such bond be construed to limit the liability ofthe Company for damages. 36 ARTICLE 8. FAILURE TO PERFORM 8.1 City's Right to Perform Services In the event that Company fails, refuses, or is unable to Collect and Dispose of Solid Waste or operate the ERC at Portola Landfill, as this Agreement requires, at the time and manner provided in this Agreement, for a period of ten (10) days, then the City shall have the right, but not the obligation, upon written notice to Company, to perform, or cause to be performed, such services itself with its own personnel and/or with the services of any other person, firm, entity or corporation. In such an event, Company shall not be liable for the actions or omissions ofthe City or any other party with whom City engages to perform the services; provided, however, Company shall be liable to the City for the cost of providing the Solid Waste services until such time as either Company fully resumes proper and appropriate services or this Agreement is terminated pursuant to Article 9; provided, however, that Company's liability to City for the cost of providing the services pursuant to this Section 8.1 shall be limited to the cost City incurs, either directly or indirectly under a contract with a third party. Notice of Company's failure, refusal or neglect to Collect and Dispose of Solid Waste may be faxed to Company at its principal office and shall be effective immediately. Written confirmation of such faxed notification shall be sent to Company within twenty-four (24) hours of the faxed notification. 37 ARTICLE 9. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 9.1 Events of Default The Company shall be deemed to be in default with respect to the performance ofits obligations under its this Agreement upon the occurrence of any oft the following events: A. The Company is in violation of the provisions of this Agreement, the Solid Waste Ordinance portion of the City Code, or any federal or state law or regulation applicable to the operation ofthe Company's service in the City and such violation is not corrected within thirty (30) days following receipt of written notice thereof from the City Manager specifying such violation or, if more than thirty (30) days are reasonably required to correct such violation, within such additional time as the City Manager shall consider reasonably necessary to effect such correction. B. The Company has failed to perform according to the specifications and standards in this Agreement, including, but not limited to, any required standards for the maintenance of collection schedules, hours of collection, vehicle and equipment maintenance and condition, collection of missed collections within a specified time, and maintenance ofa business office location with specified hours of operation and procedures for responding to customer complaints. C. The Company has engaged in repeated violations of any ofits material obligations under this Agreement, the Solid Waste Ordinance portion of the City Code or any material federal or state law or regulation applicable to the operation of the Company's service in the City, which shall be deemed to exist ifthe same or similar violation occurs three (3) or more times within any twelve (12) month period. In any such case, the Company shall not be entitled to notice or a period to correct the third such violation. 9.2 Remedies upon Default Upon the occurrence of any event of default by the Company, the City Council may invoke any or all of the following remedies upon default: A. Assess against the Company monetary penalties not to exceed One Thousand Dollars ($ 1,000.00) for each such event of default or series of related events of default and/or require the Company to cure each such event of default within such time, in such manner, and upon such terms and conditions as the City Council shall designate; or A. Implement the procedures required to exercise the City's rights under the conditions ofthe Performance Bond; or B. Revoke and terminate the Company's franchise and this Agreement. 38 9.3 Public Hearing Prior to imposing any such remedy or remedies upon the Company upon the occurrence of any such event of default, the City shall do the following: A. The City shall provide the Company with at least fifteen (15) days prior written notice of the time and place ofa a public hearing to be held before the City Council for purposes of determining whether such event of default has occurred and, ifit has occurred, whether such event of default was for just cause. Notice as to the time and place of such hearing shall be published at least once ten (10) days before such hearing in a newspaper of general circulation within the City; B. The Company shall be afforded full due process in connection with such hearing, including, but not limited to, an opportunity to introduce evidence, to require the production of evidence, and to introduce and/or question persons connected with or having knowledge ofthe alleged default. A transcript may be made of the hearing at the Company's expense; C. The City Council shall hear any persons interested therein and, based upon the evidence presented at such hearing, shall determine whether or not an event of default by the Company has occurred; D. If the City Council shall determine that an event of default occurred by the Company and such default was with just cause, the City Council shall direct the Company to correct or remedy the same within such additional time, in such manner, and upon such terms and conditions as the Council determines to be necessary; or E. Ift the City Council shall determine that an event of default occurred by the Company and such default was without just cause, then the City Council may, by resolution, impose any one or more ofthe remedies set forth in section 9.2 and 9.4 of this Agreement. 9.4 Liquidated Damages The City finds, and the Company agrees, that as ofthe time ofthe execution ofthis Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by the City as a result ofa breach by the Company ofits obligations under this Agreement. The parties further acknowledge that consistent, reliable Solid Waste Collection service is of utmost importance to the City and that the City has considered and relied on the Company's representations as to its quality of service commitment in awarding the Franchise to it. The parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The parties further recognize that ifthe Company fails to achieve the performance standards, or fails to submit required documents in a timely manner, the City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages that the City will suffer. Therefore, the parties agree that the following liquidated 39 damage amounts represent a reasonable estimate of the amount of such damages considering all ofthe circumstances existing on the date of this Agreement A. Collection Reliability 1. For each failure to Collect Solid Waste, which has been properly set out for Collection on the scheduled Collection day and not Collected within the period described in this Agreement which exceeds ten (10) such failures annually: $100.00 2. For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $100.00 B. Collection Ouality 1. For each occurrence of uncompensated damage to private property which exceeds five (5) such occurrences annually: $200.00 2. For each occurrence of excessive noise or discourteous behavior: 200.00 3. For each failure to clean up Solid Waste spilled from Solid Waste Containers which exceeds ten (10) such failures annually: $100.00 4. For each occurrence ofCollecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences annually: $200.00 5. For each failure to clean or replace Containers in accordance with this Agreement which exceeds ten (10) such failures annually: $50.00 C. Customer Responsiveness 1. For each failure to initially respond to a Customer complaint within one (1) business day: $75.00 2. For each failure to process Customer complaints to the City as required by this Agreement: $250.00 D. Timeliness ofSubmissions to the City Any report shall be considered late until such time as a correct and complete report is received by the City. For each calendar day a report is late, the daily liquidated damage amount shall be: 40 1. Quarterly Reports: $75 per day 2. Annual Reports: $150 per day Liquidated damages will only be assessed after the Company has been given the opportunity but failed to rectify the damages as described in this Agreement. The City may determine the occurrence ofevents giving rise to liquidated damages through the observation ofits own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, the City shall follow the procedure set forth in section 9.4.1. 9.4.1 Procedure for Review of Liquidated Damages City may assess liquidated damages pursuant to this Section 9.4 on a quarterly basis. At the end ofe each month during the term oft this Agreement, City shall issue a written notice to Company ofthe liquidated damages assessed and the basis for each assessment. The assessment shall become final unless, within ten (10) days of the day Company receives such notice, Company provides a written request for a meeting with the City to present evidence that the assessment should not be made. The Parties shall meet with ten (10) days ofCity's receipt of Company's notice. City shall consider Company's evidence in good-faith and render a written decision sustaining or reversing any disputed liquidated damages within five (5) days oft the meeting. Ifthe total assessed charges for any one (1) quarterly assessment are equal to or less than One Thousand Five Hundred Dollars and No/100 Cents ($1,500.00), then the decision ofthe City shall be final and non-appealable. Ifthe total assessed damages are greater than One Thousand Five Hundred Dollars and No/100 Cents ($1,500.00), then, within five (5) days of receiving the City's written decision, the Company may seek alternate dispute resolution pursuant to Section 9.6. 9.4.2 Non-Exclusive Damages City's assessment or collection of liquidated damages shall not preclude or prevent City from exercising or seeking any other right or remedy, including, without limitation, the assessment of any administrative penalties, termination, or seeking legal recourse in a court of equity or in law. 9.5 Excuse from Performance The parties shall be excused from performing their respective obligations hereunder in the event they are prevented from sO performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), picketing at Customer Collection locations that blocks access to container pick up points, and other similar catastrophic events which are beyond the control of and not the fault ofthe party claiming excuse from performance hereunder. Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Company's 41 employees or directed at the Company is not an excuse from performance and the Company shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. The party claiming excuse from performance shall, within two (2) days after such party has notice of such cause, give the other party notice ofthe facts constituting such cause and asserting its claim to excuse under this Section. The interruption or discontinuance ofthe Company's services caused by one or more of the events excused shall not constitute a default by the Company under this Agreement. 9.6 Mediation and Arbitration Any dispute arising out of or relating to this Agreement shall first be mediated between the Parties. Within five (5) days of receiving notice from the other Party of a request to mediate a dispute, the Parties shall mutually agree on a mediator. Meditation shall occur within fifteen (15) days of receiving notice from the other Party ofthe request to mediate a dispute. Unless otherwise agreed at mediation, the costs of mediation shall be borne equally between the Parties. Unless agreed otherwise by the parties, mediation shall take place in Portola, California. Upon the written request of a Party, any dispute arising out of or relating to this Agreement which was not resolved by mediation as required herein shall be submitted within five (5) days for binding arbitration in accordance with its Commercial Comprehensive Rules of the American Arbitration Association, unless the Parties agree otherwise and consent, in writing, to a different method of dispute resolution. The Parties agree to use their best efforts to arbitrate the dispute within thirty (30) days of a Party making a written request for arbitration. The arbitrator shall be vested with the power to allocate the costs of arbitration as it deems appropriate. The decision of the arbitrator shall be in writing. Unless agreed otherwise by the parties, arbitration shall take place in Portola, California. Until the arbitrator makes its final decision, the parties shall maintain the status quo and all terms and conditions of this Agreement shall remain in full force and effect, including, without limitation, the Company's obligation to perform Solid Waste Collection services and the Company's: right to bill Customers and receive Company Compensation for such services. 9.7 Assurance of Performance The City may, at its option and in addition to all other remedies it may have, demand from the Company reasonable assurances oft timely and proper performance oft this Agreement, in such form and substance as the City may require. Ift the Company fails or refuses to provide satisfactory assurances oft timely and proper performance in the form and by the date required by the City, such failure or refusal shall be an event of default. 42 ARTICLE 10. MISCELLANEOUS 10.1 Relationship of Parties The parties intend that the Company shall perform the services required by this Agreement as an independent contractor engaged by the City and not as an officer or employee of the City nor as a partner of or joint venture with the City. No employee or agent of Company shall be or shall be deemed to be an employee or agent ofthe City. Except as expressly provided herein, the Company shall have the exclusive control over the manner and means of conducting the Solid Waste Collection services performed under this Agreement, and all Persons performing such services. The Company shall be solely responsible for the acts and omissions ofits officers, employees, and agents. Neither the Company nor its officers, employees, and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to the City employees by virtue of their employment with the City. 10.2 Compliance with Law In providing the services required under this Agreement, the Company shall comply with all applicable laws and regulations of the United States, the State of California, the County and the City, now in force and as they may be enacted, issued or amended during the term ofthis Agreement. The City shall comply with all applicable regulations promulgated by federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended during the term of this Agreement. Company acknowledges and warrants that it is fully acquainted with the provisions oft the City Code; Company agrees that, in performing this Agreement, it will comply with those provisions ofthe City Code that are applicable to the work or business in which it is herein licensed or engaged, and with any and all amendments to those provisions of said City Code during the term ofthis Agreement. Ifthe City or the County should enact any law, regulation, ordinance that materially impacts the terms oft this Agreement, the Company shall be entitled to increase the Rates in accord with Section 5.4. 10.3 Assignment This Franchise is awarded based in the selection of Company, its demonstrated ability to perform, and the relationship previously established between Company's personnel and the City. Accordingly, this Franchise shall not be transferred, sold, pledged, hypothecated, leased, or assigned, nor shall any oft the rights or privileges herein be transferred, sold, pledged, hypothecated, leased or assigned, either in whole or in part, without the prior written approval of the Portola City Council. Any attempt by Company to effectuate any oft the foregoing without the City Council's approval shall be null and void. City may impose conditions and restrictions on any assignment or request for assignment, including, without limitation, conditions relating to payment of all of City's costs relating to such transfer and the acceptance of amendments to this Franchise. 43 10.4 Subcontracting The Company shall not engage any companies or Subcontractors for Collection, transfer, Recycling or Disposal of Solid Waste without the prior written approval oft the City Council. 10.5 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative ofthe parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: Ifto City: City Manager City of Portola P.O. Box 1225 Portola, CA 96122 Ifto the Company: General Manager Intermountain Disposal, Inc. P.O. Box 1596 Portola, CA 96122 Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date oft the postmark. 10.6 City Free to Negotiate with Third Parties Notwithstanding the exclusive nature of the Franchise, the City may investigate all options for the Collection, transporting, Recycling, processing and Disposal of Solid Waste and Recyclable Materials at any time prior to the expiration of the term of this Agreement. Without limiting the generality of the foregoing, the City may solicit proposals from the Company and from third parties for the provision of Collection services, Disposal services, Recycling services, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination ofthis Agreement. 10.7 Privacy The Company shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents ofa Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court oflaw, by statute, or upon valid authorization oft the Customer. This provision shall not be construed to preclude the Company from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement. 44 10.8 Cooperation Following Termination At the end oft the term of this Agreement or in the event this Agreement is terminated for cause prior to the end of the term ofthis Agreement, the Company agrees to immediately pay all amounts due to the City, cooperate fully with the City and any subsequent company to assure a smooth transition of Solid Waste management services. The Company's cooperation shall include, but not be limited to, providing operating records needed to service all properties covered by this Agreement. 10.9 Proprietary Information, Public Records The City acknowledges that a number ofthe records and reports oft the Company are proprietary and confidential. Regular monthly, quarterly, and annual reports are not proprietary. The City will endeavor to maintain the confidentiality of all proprietary information provided by the Company. Notwithstanding the foregoing, any documents provided by the Company to the City that are public records may be disclosed pursuant to a proper public records request. 10.10 Waiver The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach ofviolation ofthe same or any other provision. The subsequent acceptance by either party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other party of any provision of this Agreement. 10.11 Binding on Assigns The provisions ofthis Agreement shall inure to the benefit of and be binding on the permitted assigns of the parties. 10.12 Governing Law; Jurisdiction; Attorney's Fees This Agreement shall be governed by, and construed and enforced in accordance with, the laws ofthe State of California. Any lawsuits, mediation, or arbitration between the parties arising out ofthis Agreement shall be brought and concluded in the Superior Court in and for the County of Plumas, State of California, ifin state court, or in the Federal District Court for the Eastern District ofCalifornia, ifin federal court, which shall have exclusive jurisdiction over such lawsuits. The prevailing party in any arbitration or court action to enforce or interpret this Agreement shall be entitled to an award of reasonable attorneys' fees and costs, except if that Party did not request or participate in mediation when required to SO pursuant to this Agreement. 10.13 Entire Agreement This Agreement, including the Exhibits, represents the full and entire Agreement between the parties with respect to the matters covered herein. No verbal agreement or conversation with any office, agent, or employee of the City, either before, during, or after the execution ofthis Agreement, shall affect or modify any oft the terms or obligations herein contained nor shall such 45 verbal agreement or conversation entitle the Company to any additional payment whatsoever under the terms oft this Agreement. 10.14 Section Headings The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any ofits provisions. 10.15 Amendment This Agreement may be amended or modified only by written agreement duly authorized by the Portola City Council and executed by the parties hereto. 10.16 Interpretation This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either party, regardless ofthe degree to which either party participated in its drafting. 10.17 Severability Except as may otherwise be expressly provided for herein, if any non-material provision ofthis Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability ofsuch provision shall not affect any oft the remaining provisions oft this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. Ifany material provision ofthis Agreement is for any reason deemed to be invalid and unenforceable, the parties agree to negotiate, in good faith, valid and enforceable provisions to replace the invalid or unenforceable provision. If, after good faith negotiations, the Parties are not able to agree on such alternate terms, then either Party may terminate this Agreement in accord with Section 9.3; provided; however, that the parties have exhausted all dispute resolution procedures pursuant to this Agreement. 10.18 Exhibits Each of the Exhibits identified in this Agreement is attached hereto and incorporated herein and made a part hereof by this reference. 46 IN WITNESS WHEREOF, the City and the Company have executed this Agreement as ofthe day and year first above written at the top of this Agreement. CITY OF PORTOLA By: ROBERT MEACHER Its: CITY MANAGER INTERMOUNTAIN DISPOSAL, INC. a California corporation By: RICKY ROSS Its: VICE PRESIDENTIGENERAL MANAGER ATTEST: APPROVED AS TO FORM: MELISSA KLUNDBY STEVEN GROSS City Clerk City of Portola Counsel Exhibit A - Pass Through Costs Exhibit B - Rate Schedules 47 NOTICE OF PUBLIC HEARING ON PROPOSED 2024 INCREASES IN REFUSE COLLECTION RATES NOTICE IS HEREBY GIVEN that the Council of the City of Portola will hold a public hearing on proposed increases to the residential and commercial refuse collection rates of the City of Portola, which are billed by Intermountain Disposal in accordance with its franchise agreement with the City. The public hearing will be held on December 13, 2023 at the hour of 6:00 p.m., or as soon thereafter as possible, in the City Council Chamber, Portola City Hall, 35 Third Avenue, Portola, California. The purpose of the public hearing is to consider all oral and written testimony and written protests of the proposed rates. At the public hearing, any interested person may appear and be heard and/or submit written materials and protests of the proposed rates. Written comments and protests submitted to the City Clerk at the address listed below prior to December 13, 2023 and received prior to the close of the public hearing on December 13, 2023 will be presented to the City Council at the public hearing. A copy of the proposed rates for refuse collection fees and commercial recycling rates charged by Intermountain Disposal are attached to this Notice. Additional cost data is available for: inspection at the City Clerk's Office, 35 Third Avenue, Portola, California. For further information on waste collection fees, contact 832-6803. PROPOSITION 218 - WRITTEN PROTEST Owners of parcels, tenants and the public may comment on and protest the proposed rates in writing prior to, or orally during the public hearing. Consistent with the provisions of Proposition 218 (as implemented by Assembly Bill 1260) this Notice has been mailed to all property owners (and/or tenants) within the City. If you are a property owner (and/or tenant) and wish to protest the proposed rates as described in this Notice, then you must file a written protest with the City before the public hearing is closed. If the party signing the protest is not shown on the last equalized assessment roll of Plumas County as the owner(s) oft the parcel(s), the protest must contain, or be accompanied by, written evidence that such party is the owner, or tenant, of the parcel(s). If protests from a majority of the affected parcels are timely submitted, the proposed rate increases will not go into effect. Only one protest per parcel will be counted. Owners of multiple properties may submit one protest for each property owned. LEGAL CHALLENGE Any judicial action or proceeding to attack, review, set aside, void, validate, or annul an ordinance, resolution, or motion adopting a fee or charge for residential and commercial refuse collection service, shall be commenced within 120 days of the effective date or of the date of the final passage, adoption, or approval of the ordinance, resolution, or motion, whichever is later. Protests can be mailed or personally delivered to the City Clerk as follows: Jason Shaw, Deputy City Clerk City of Portola P.O. Box 1225 35 Third Avenue Portola, California 96122 Dated & Published: October 26, 2023 For accessible meeting information, please call (530) 832-6801 U.S. BUREAU OFI LABORSTATISTICS Bureau ofl Labor Statistics > Data Tools > Data Retrieval Tools > Top Picks Databases, Tables & Calculators by Subject Change Output Options: From: 2013 V To: 2023 V includeg graphs Oinclude annual averages More Formatting Options 1 Data extracted on: September 14, 2023 (4:09:23 PM) CPIf for AlL Urban Consumers (CPI-U) Series Id: CUUR0400SA0 Not Seasonally Adjusted Series Title: Alli items in West urban, all urban consumers,! not seasonally adjusted Area: West Item: All items Base Period: 1982-84=100 Download: XD xisx Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2013 232.759 234.595 235.511 235.488 235.979 236.227 236.341 236.591 237.146 237.000 236.153 236.096 235.824 235.093 236.555 2014 236.707 237.614 239.092 239.808 241.350 241.616 241.850 241.660 241.920 241.650 240.220 239.095 240.215 239.365 241.066 2015 238.318 239.748 241.690 242.302 244.227 244.332 245.040 244.737 244.257 244.341 243.749 243.434 243.015 241.770 244.260 2016 244.600 244.821 245.404 246.589 247.855 248.228 248.375 248.498 249.234 249.897 249.448 249.516 247.705 246.250 249.161 2017 250.814 252.252 252.949 253.806 254.380 254.469 254.708 255.282 256.504 257.223 257.126 257.347 254.738 253.112 256.365 2018 258.638 259.986 260.994 262.037 263.240 263.732 263.971 264.395 265.105 266.195 265.658 265.209 263.263 261.438 265.089 2019 265.624 266.215 267.370 269.522 270.880 270.957 271.029 271.264 272.102 273.524 273.128 272.584 270.350 268.428 272.272 2020 273.340 274.412 273.995 272.913 273.062 274.155 275.597 276.443 276.422 276.876 276.875 276.593 275.057 273.646 276.468 2021 277.238 278.702 280.625 283.507 285.793 288.263 289.863 290.393 291.053 293.397 294.986 296.102 287.494 282.355 292.632 2022 298.705 301.158 305.082 307.145 309.645 313.496 313.951 314.013 315.094 317.299 315.919 314.599 310.509 305.872 315.146 2023_317.477 319.130 320.715 322.187 323.525 324.448 324.865 326.234 321.247 U.S. BUREAU OF LABOR STATISTICS Postal Square Building 2 Massachusetts Avenue NE Washington, DC 20212-0001 Tetphonei120.6915200. Telecommunications Relay Service:7-1-1 www.bls.gov ContactUs U.S. Energy Information Administration eia PETROLBUM & OTHER LIQUIDS OVERVIEW DATA ANALYSIS & PROJECTIONS GLOSSARY) FAQS Referring Pages: California Gasoline and Diesel RetailF Prices Retail Prices for Ultral Low Sulfur Diesel View History: 01 Weekly ON Monthly OAnnual Download Data (XLSF File) California No 2 Diesel Ultra Low Sulfur (0-15 ppm) Retail Prices * DOWNLOAD Dollars per Gallon 2008 2010 2012 2014 2016 2018 2020 2022 California No 2 Diesel Ultral Low Sulfur (0-15 ppm) Retail Prices eia Data source: U.S. Energy Information. Administration Chart Tools no analysis applied V Thiss series is available throught the EIA open dataAPla and cank be downloadedi to Excel ore embedded: as an interactive chart or mapc on your website. California No 21 Diesel Ultra Low Sulfur (0-15 ppm) Retail Prices (Dollars per Gallon) Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2.886 2.885 2.985 2.964 3.019 3.123 3.049 3.024 3.267 3.608 3.475 2008 3.423 3.488 4.014 4.265 4.673 4.968 4.965 4.542 4.087 3.568 2.832 2.345 2009 2.297 2.260 2.139 2.336 2.354 2.697 2.734 2.850 2.837 2.856 2.962 2.913 2010 2.997 2.938 3.058 3.206 3.205 3.102 3.124 3.164 3.144 3.214 3.305 3.408 2011 3.560 3.804 4.187 4.400 4.362 4.213 4.106 4.009 4.057 4.059 4.245 4.095 2012 4.103 4.251 4.474 4.419 4.316 4.027 3.917 4.240 4.456 4.376 4.170 4.076 2013 4.083 4.325 4.245 4.134 4.040 4.023 4.068 4.138 4.209 4.134 4.048 4.073 2014 4.082 4.084 4.092 4.089 4.119 4.101 4.110 4.085 4.054 3.938 3.813 3.542 2015 3.212 3.110 3.182 3.098 3.254 3.192 3.115 2.935 2.850 2.814 2.768 2.644 2016 2.526 2.335 2.387 2.459 2.636 2.782 2.785 2.722 2.749 2.817 2.820 2.851 2017 2.932 2.957 2.935 2.938 2.922 2.895 2.876 2.959 3.168 3.172 3.587 3.559 2018 3.639 3.680 3.654 3.773 3.941 3.982 3.957 3.940 3.973 4.086 4.018 3.858 2019 3.753 3.734 3.789 3.953 4.128 4.035 3.949 3.906 3.923 3.985 4.003 3.902 2020 3.873 3.787 3.601 3.283 3.182 3.216 3.254 3.263 3.259 3.246 3.250 3.356 2021 3.439 3.607 3.931 3.980 4.024 4.095 4.195 4.291 4.324 4.481 4.745 4.776 2022 4.803 5.018 6.133 6.260 6.479 6.874 6.587 6.123 6.149 6.330 6.121 5.558 2023 5.467 5.423 5.263 4.990 4.842 4.760 4.907 5.518 No[ Datal Reported; NotA Applicable; NA= - NotAvailable; W= Withheld toa avoid disclosure ofi individual company data. Release Date: 9/11/2023 Next Release Date: 9/18/2023 Referring Pages: California Gasoline and Diesel Retail Prices Retail Prices for Ultral Low Sulfur Diesel INTERMOUNTAIN DISPOSAL COMPANY ANNUAL ADJUSTMENT OF RATES FOR THE 2024 CALENDAR YEAR (RATE YEAR 7) Annual Rate Adjustment Calculated per Section 5.3 of the Franchise Agreement, as Amended August 25, 2021 Rate Adjustment Calculations Adjust for Changes in CPI and Fuel Costs August 2022 through August 2023 % Increase = 90% Annual Change West Region CPI (Aug/Aug) + 10% Annual Change California Fuel (Aug/Aug) August 2022 West Urban CPI: 314.013 Data Reference: tps/Cat.05sgovg-on/surveymostre. August 2023 West Urban CPI: 326.234 August 2022 EIA Cal Diesel Fuel: $6.123 Date Reference: MPaBpWAMoPeUPLmLpm.s.sa.matn August 2023 EIA Cal Diesel Fuel: $5.518 CPI/Fuel Percent Increase = 2.51% INTERMOUNTAIN DISPOSAL PROPOSED 2024 RATE INCREASE RATES EFFECTIVE JANUARY 1, 2024 UPON APPROVAL FROM PORTOLA CITY COUNCIL COMMERCIAL AND RESIDENTIAL CAN RATES 2024 RATE INCREASE (RATE YEAR 7) Current 2023 Monthly CPI/Diesel Fuel Increase Proposed 2024 Monthly Item Rates (2.51%) Rates Wastecarts 32 Gallon Cart $15.01 $0.38 $15.39 64 Gallon Cart $20.40 $0.51 $20.92 96 Gallon Cart $25.84 $0.65 $26.48 Replace Carts 32 Gallon Cart $75.94 $1.91 $77.84 64 Gallon Cart $86.07 $2.16 $88.23 96 Gallon Cart $106.32 $2.67 $108.99 Recycling Service 64 Gallon Cart $5.30 $0.13 $5.43 Green Waste Service 96 Gallon Cart $16.34 $0.41 $16.75 Extra Services New Service & $8.45 $0.21 $8.66 Reinstatement Fee Backyard Collection $8.45 $0.21 $8.67 Car Tire $5.36 $0.13 $5.50 Truck Tire $10.92 $0.27 $11.19 Appliances $25.71 $0.65 $26.36 Mattress/Box Spring $51.31 $1.29 $52.59 Waste Cart Delivery $15.22 $0.38 $15.60 One-Time Collection, $25.45 $0.64 $26.09 Up to Four Cans Returned Check Fee $52.97 $1.33 $54.30 INTERMOUNTAIN DISPOSAL PROPOSED 2024 RATE INCREASE RATES EFFECTIVE. JANUARY 1, 2024 UPON APPROVAL FROM PORTOLA CITY COUNCIL COMMERCIAL BIN SERVICE RATES 2024 RATE INCREASE (RATE YEAR 7) Pick-ups Per Current 2023 Monthly CPI/Diesel Fuel Increase Proposed 2024 Monthly Item Week Rates (2.51%) Rates Bin Size 1CY 1x $66.21 $1.66 $67.87 2x $132.31 $3.32 $135.63 3x $198.31 $4.98 $203.29 1.5Cy 1x $99.66 $2.50 $102.16 2x $199.18 $5.00 $204.18 3x $298.72 $7.50 $306.21 2CY 1x $147.10 $3.69 $150.80 2x $294.09 $7.38 $301.47 3x $441.04 $11.07 $452.11 3CY 1x $248.43 $6.24 $254.66 2x $496.70 $12.47 $509.17 4CY 1x $264.42 $6.64 $271.06 2x $528.73 $13.27 $542.01 5CY 1x $330.49 $8.30 $338.78 2x $660.81 $16.59 $677.40 6CY 1x $411.38 $10.33 $421.70 2x $822.62 $20.65 $843.27 8CY 1x $578.75 $14.53 $593.28 2x $1,157.34 $29.05 $1,186.39 Extra. Services New Service & $8.45 $0.21 $8.66 Reinstatement Fee Extra Yardage $17.12 $0.43 $17.55 Extra Cans $6.53 $0.16 $6.69 Container Delivery $57.38 $1.44 $58.82 Container Relocation $28.67 $0.72 $29.39 Weekly Rental Charge 1CY $10.56 $0.27 $10.83 1.5CY $15.88 $0.40 $16.28 2CY $23.38 $0.59 $23.97 3Cy $39.57 $0.99 $40.57 4CY $41.96 $1.05 $43.02 5Cy $52.67 $1.32 $53.99 Car Tire $5.36 $0.13 $5.50 Truck Tire $10.92 $0.27 $11.19 Return Charge $12.67 $0.32 $12.99 Off-Day Collection $25.32 $0.64 $25.96 Bear-Resistant Bin $21.67 $0.54 $22.21 Bin Unlock/Lock $41.20 $1.03 $42.23 Bin Repair Per Hour $76.51 $1.92 $78.43 INTERMOUNTAIN DISPOSAL PROPOSED 2024 RATE INCREASE RATES EFFECTIVE JANUARY 1, 2024 UPON APPROVAL FROM PORTOLA CITY COUNCIL ROLL-OFF BOX RATES 2024 RATE INCREASE (RATE YEAR 7) ROLL-OFF BOXES Delivery Charge CPI/Diesel Fuel Increase CPI/Diesel Fuel Increase Current 2023 Rates (2.51%) Proposed 2024 Rates Current 2023 Rates (2.51%) Proposed 2024 Rates Box Size 10CY $320.24 $8.04 $328.28 $55.99 $1.41 $57.39 12CY $399.55 $10.03 $409.58 $55.99 $1.41 $57.39 20CY $555.11 $13.93 $569.04 $55.99 $1.41 $57.39 25CY $668.88 $16.79 $685.67 $55.99 $1.41 $57.39 30CY $815.19 $20.46 $835.65 $55.99 $1.41 $57.39 40CY $1,107.42 $27.80 $1,135.21 $55.99 $1.41 $57.39 Demurrage Charge Daily $16.95 $0.43 $17.37 Weekly $49.45 $1.24 $50.69 Extra Services Off-Day Relocation, $110.77 $2.78 $113.55 Per Hour Overweight Per ton $98.35 $2.47 $100.82 (>8Tons) Standby Monday- $107.24 $2.69 $109.93 Friday, Per Hour Standby Off Hours, $166.16 $4.17 $170.33 Per Hour October 30, 2023 To whom it may concern. I, Vincent R. Juan, with residence at 227 W. Loyalton Ave., Portola, CA 96122, would like to protest the rate increase in refuse collection rates. am a seasonal resident and - rarely use my trash bin. Thanks. Vincentluan of the & M 9 City ofPortola 35 Third Avenue - PO. Box 1225 Portola, California 96122 . Fax: 3 832-5418 Ri CR Incorporated May 16. 1946 (530) 832-4216 www.ci.portola.ca.us December 4, 2023 Jim Graham, Executive Director Plumas County Transportation Commission 1953 E Main St, Quincy, CA 95971 imgraham@countyofplumas.com (530) 283-6268 Subject: Plumas County Electric Vehicle Charging Infrastructure Master Plan Dear Mr. Graham, On behalf of the City of Portola, am writing to express our strong support for the Plumas County Transportation Commission's application for the Caltrans Sustainable Transportation Planning Grant to develop the Plumas County Electric Vehicle Charging Infrastructure Master Plan. The proposed Master Plan is a critical step forward in advancing our county's commitment to sustainable transportation and environmental stewardship. By focusing on the development of a robust electric vehicle (EV) charging infrastructure, this initiative will significantly contribute to reducing greenhouse gas emissions, promoting energy efficiency, and enhancing the quality of life for residents and visitors of Plumas County. Our support for this project stems from its potential to address the current gap in publicly accessible EV charging stations in the county. The Master Plan aligns with the state's goals for greenhouse gas reduction and supports the growing demand for EVs by ensuring accessible and equitable charging options. The comprehensive approach of assessing current infrastructure, community engagement, and strategic site analysis will provide a blueprint for a phased implementation of EV charging stations, enhancing the county's economic vitality and environmental sustainability. We believe that the Plumas County Electric Vehicle Charging Infrastructure Master Plan will serve as a model for rural communities in embracing clean transportation solutions. This project not only aligns with the state's environmental goals but aiso demonstrates a proactive approach to meeting the future transportation needs of our community. In closing, the City of Portola enthusiastically supports the Plumas County Transportation Commission's application for the Caltrans Sustainable Transportation Planning Grant. The funding received will play a pivotal role in realizing a greener, economically resilient, and more sustainable future for Plumas County. Sincerely, Bill Powers Mayor, City of Portola CITY COUNCIL AGENDA STAFF REPORT DATE: December 6, 2023 TO: Honorable Mayor and Members of the City Council FROM: Susan Scarlett, Finance Officer MEETING: December 13, 2023 SUBJECT: Audit 22-23 Fiscal Year Attached is an electronic copy of the 2022-2023 Audit that was issued on October 18, 2023. A hard copy of the audit is available. The Audit has been posted to the website with the agenda. I am unable to attend the December 13th meeting but wanted to get the audit out. We will put it on the January 10th meeting for review and acceptance by the Council. Recommendation: There is no action at this time CITY OF PORTOLA FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023 CPAS CONSULTANTS WEALTH ADMISORS CLAconnect.com THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PORTOLA TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30, 2023 INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) 4 BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION 13 STATEMENT OF ACTIVITIES 14 FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS BALANCE SHEET 15 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION 16 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 17 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES 18 PROPRIETARY FUNDS STATEMENT OF FUND NET POSITION 19 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 20 STATEMENT OF CASH FLOWS 21 NOTES TO FINANCIAL STATEMENTS 23 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY/ASSET) AND RELATED RATIOS 45 SCHEDULE OF PENSION PLAN CONTRIBUTIONS 46 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 47 CITY OF PORTOLA TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30, 2023 GENERAL FUND STATE TRANSPORTATION IMPROVEMENT FUND 48 GAS TAX 2107 FUND 49 SNOW REMOVAL FUND 50 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION BUDGETS AND BUDGETARY ACCOUNTING 51 SUPPLEMENTARY INFORMATION COMBINING NONMAJOR FUND STATEMENTS NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET 52 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 53 OTHER REPORTS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERMMENT AUDITING STANDARDS 54 LA CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS REPORT Honorable Mayor and Council Members City of Portola, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Portola (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 as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. CLA ChftonlarsonAllen LLP) is an independent network member OfCLA Global. See GAslohal.con/lisdaimer (1) Honorable Mayor and Council Members City of Portola Auditors' 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 auditors' 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 and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of 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 City's ability to continue as a going concer 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 Accounting principles generally accepted in the United States of America require that the managements discussion and analysis, schedule of proportionate share of the net pension liability/(asset) and related ratios, schedule of pension plan contributions, and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. (2) Honorable Mayor and Council Members City of Portola We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining nonmajor financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 18, 2023, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance. Dlftlais sorflon * ClftonlarsonAllen LLP Roseville, California October 18, 2023 (3) THIS PAGE INTENTIONALLY LEFT BLANK MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 This section of the City of Portola (City) annual financial report, presents a discussion and analysis of the City's financial performance during the fiscal year ended June 30, 2023. It should be read in conjunction with the City's basic financial statements following this section. I. FINANCIAL HIGHLIGHTS A. Government-Wide Financial Analysis The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $17,866,066: $10,282,191 represents the City's investment in capital assets, less any related outstanding debt used to acquire those assets (net investment in capital assets). $1,160,702 is available for the City's ongoing obligations related to programs with external restrictions (restricted net position). $6,423,173 is available to fund City programs for citizens and debt obligations to creditors (unrestricted net position). The City's total net position decreased by $615,081 from the prior year: The $823,453 decrease in net investment in capital assets represents infrastructure and other additions of $383,744 less depreciation of $1,027,889, and the retirement of related long-term debt of $33,000. The $51,191 increase in restricted net position represents the change in resources that are subject to external restrictions on their use, and is detailed in the government-wide financial analysis section on page 6. B. Financial Analysis of the City's Funds The City's governmental funds combined ending fund balance of 92,717,828 was a decrease of $96,616 from the prior year ending fund balance. Amounts available for spending include restricted, assigned, and unassigned fund balances; these totaled $2,714,579, or 99.88% of ending fund balance. Of this amount, $259,297 is restricted by law or externally imposed requirements. II. OVERVIEW OF THE FINANCIAL STATEMENTS A. Government-Wide Financial Statements The government-wide financial statements provide an overview of the City's finances in a manner similar to a private sector business that is using the accrual basis of accounting. They demonstrate accountability of the City of Portola by showing the extent to which it has met operating objectives efficiently and effectively, using all resources available, and whether it can continue to do so. (4) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 The statement of net position presents information on all of the City's assets, deferred outflows, and deferred inflows, liabilities, with the difference reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information on expenses and revenues to show how the government's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues are reported as soon as earned and expenses are reported as soon as incurred even though the related cash flows may not have taken place until future fiscal periods (e.g., earned but unused vacation leave). Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, planning and community development, public safety, streets and roads, public works and parks and recreation. The business type activities of the City include water, sewer, and solid waste services. B. Fund Financial Statements The fund financial statements provide evidence of accountability by demonstrating compliance with budgetary decisions made in a public forum. A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes stipulated by laws, regulations or policies. The funds of the City are divided into two categories: governmental and proprietary. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spending resources, as well as on balances of spending available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. The City maintains 6 individual governmental funds. On the financial statements for governmental funds, information is presented separately for the General Fund and for the Gas Tax, Snow Removal and State Transportation Improvement Plan funds. Data from nonmajor governmental funds are aggregated into a single column. Proprietary funds consist of three enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, and solid waste services. The Notes to Financial Statements provide additional information that is essential to a full understanding of the information provided in the financial statements. C. Required Supplementary Information In addition to the basic financial statements, this report presents actuarial information related to the City's pension plans as well as budgetary comparisons for the General Fund and major special revenue funds as required supplementary information. (5) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 II. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City presents its financial statements under the reporting model required by the Governmental and Accounting Standards Board Statement No. 34. Condensed Statement of Net Position June 30, 2023 and 2022 Governmental Business-Type Total Activities Activities Total Dollar Percent 2023 2022 2023 2022 2023 2022 Change Change Current and Other Assets $ 3,300,156 $ 3,244,411 $ 6,404,790 $ 5,826,241 $ 9,704,946 $ 9,070,652 $ 634,294 7% Capital Assets 6,707,888 7,120,634 4,459,702 4,695,839 11,167,590 11,816,473 (648,883) -5% Total Assets 10,008,044 10,365,045 10,864,492 10,522,080 20,872,536 20,887,125 (14,589) 0% Deferred Outflow s of Resources 189,928 97,988 362,678 175,720 552,606 273,708 278,898 102% Currenta and Other Liabilties 557,769 302,840 132,616 66,818 690,385 369,658 320,727 87% Long-TermLiabities 252,603 26,115 2,519,970 2,137,446 2,772,573 2,163,561 609,012 28% Totall Liabilities 810,372 328,955 2,652,586 2,204,264 3,462,958 2,533,219 929,739 37% Deferred Inflows S of Resources 33,035 52,436 63,083 94,031 96,118 268,695 (172,577) -64% Net Invested in Capital Assets 6,500,318 7,120,634 3,781,873 3,985,010 10,282,191 11,105,644 (823,453) -7% Restricted: General Government 107,052 222,188 107,052 222,188 (115,136) -52% Community Development 43,525 43,525 43,525 43,525 0% Capitall Improvements 133,279 85,625 218,667 211,716 351,946 297,341 54,605 18% Debt Service 68,362 68,362 68,362 68,362 0% Facility Fees 589,817 580,477 589,817 580,477 9,340 2% Unrestricted 2,570,391 2,609,670 3,852,782 3,553,940 6,423,173 6,163,610 259,563 4% Total Net Position 5 9,354,565 $ 10,081,642 $8,511,501 $8,399,505 17,866,066 18,481,147 (615,081) -3% Net investment in capital assets reflects the City's investment in capital assets (i.e. its land, structures and improvements, infrastructure and equipment). The City uses the capital assets to provide services to citizens; consequenty, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net position represents 6.50% of the total net position and are resources subject to external restrictions on how they may be used. Unrestricted net position represents 35.95% of the total net position and may be used to meet the City's ongoing obligations to citizens and creditors. (6) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 The following highlights significant factors that affected the governmental and business-type activities and contributed to the change in net position: Statement of Activities For the Years Ended. June 30, 2023 and 2022 Govemmental Business-1 Type Total Activities Activities Total Dollar Percent 2023 2022 2023 2022 2023 2022 Change Change Program Revenues: Chargest for Services 103,914 $ 104,152 $ 2.037.705 $ 1.976.068 $ 2,141.619 $ 2.080.220 $ 61.399 3% Operating Grants and Contributions 810,575 707,150 20.000 830.575 707.150 123.425 17% Capital Grants and Contrbutions 332,310 157,744 332.310 157.744 174.566 111% General Revenues: Property" Taxes 294,992 255,100 294,992 255.100 39,892 16% Other Taxes 404,569 411,965 404.569 411,965 (7,396) 2% Other Revenue 61,272 79,624 123.566 17,006 184.838 96,630 88.208 91% TotalRevenues 2,007,632 1715,735 2.181.271 1993,074 4,188.903 3.708.809 480.094 13% Expenses: GeneralGovemment 287,155 136,625 287,155 136,625 150,530 110% Planning and Community! Development 133,190 192,129 133,190 192,129 (58,939) 31% Public Safety 481,570 468,585 481,570 468.585 12.985 3% Streets and Roads 1,168,552 984,828 1,168,552 984,828 183,724 19% Public Works 381,014 111,633 381,014 111,633 269,381 241% Parks and Recreation 283,228 277,252 283,228 277,252 5,976 2% Water Service 1,075,877 741,423 1.075,877 741,423 334,454 45% Sewer Service 862.500 535,179 862,500 535,179 327,321 61% Solid Waste 130,898 167,335 130.898 167,335 (36.437) -22% TotalExpenses 2.734,709 2.171052 2,069.275 1,443,937 4,803.984 3,614,989 1,188.995 33% Change int NetF Position (727,077) (455,317) 111,996 549,137 (615,081) 93,820 (708, .901) -756% Net Position- July 1 10,081,642 10,536,959 8,399,505 7.850,368 18.481,147 18,387,327 93,820 1% Net Position- June 30 9,354,565 $ 10,081,642 $ 8,511,501 $ 8,399,505 17,8 866,066 $ 18, 481,147 $ (615,081) -3% Governmental activities reported a $727,077 decrease in net position, and business-type activities reported an increase of $111,996, for a net decrease of $615,081. IV. FINANCIAL ANALYSIS OF THE CITY'S FUNDS The City uses fund accounting to ensure and demonstrate compliance with budgetary and legal requirements. Governmental funds. The general government functions are included in the General and Special Revenue Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and spendable resources. Such information is useful in assessing the City's financing requirements. In particular, total fund balance less the nonspendable portion is a useful measure of the City's resources available for spending at the end of the fiscal year. At June 30, 2023, the City's governmental funds reported combined ending fund balances of $2,717,828, 99.88% of which is available to meet the City's ongoing general obligation to citizens and creditors. (7) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 The General Fund is the main operating fund of the City. At June 30, 2023, total fund balance was $2,515,613, 100% of which was available for spending. As measures of the general fund's liquidity, it is useful to note that available fund balance represents 196% of total fund expenditures. It is the City's goal to maintain a minimum level of fund balance sufficient to preserve the City's credit rating in the event that the City needs financing and to maintain sufficient working capital. It is also the City's goal to maintain a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City therefore adopted a policy that directs management to maintain a minimum level of unassigned fund balance in the City's General Fund as follows: The City will strive to maintain an unassigned fund balance in the General Fund of 100% of budgeted general fund operating expenditures each fiscal year. In the event that the balance drops below the established minimum level, the City's governing body will develop a plan to replenish the fund balance. The following table presents the revenues from various sources as well as increases or decreases from the prior year in the governmental funds. Revenues Classified by Source Governmental Funds 2023 2022 Change % of % of % of Revenue Sources Amount Total Amount Total Amount Change Taxes $ 699,561 33% $ 667,065 40% $ 32,496 5% Licenses and Permits 69,134 3% 62,473 4% 6,661 11% Fines and Forfeitures 190 0% 200 0% (10) -5% Use of Money and Property 54,414 3% 10,830 1% 43,584 402% Intergovernmental 1,245,453 59% 813,796 49% 431,657 53% Charges for Services 34,590 2% 41,479 2% (6,889) -17% Other 6,858 0% 68,794 4% (61,936) -90% Total $ 2,110,200 100% $ 1,664,637 100% $ 445,563 27% Significant changes for major revenue sources are explained below. Secured Property tax increased $39,892, Sales Tax increased $7,979, and Other Taxes decreased $15,375. Building permits increased $5,264 from the prior year amount and business licenses increased by $899 due to an increase in new business licenses and timing of payments. There was an increase in the Use of Money and Property due to increased interest rates. ntergovernmental includes an increase in Snow Removal Funds based on the expenses from the prior year, an increase in Coronavirus Relief Funds used and an increase in reimbursements from the State for STIP projects based on work completed by the Contractor. Charges for Services decreased due to the City Pool being open fewer days a week and the local swim club doing concessions for the summer. (8) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 The following table presents expenditures by function compared to prior year's amounts in the governmental funds. Expenditures by Function Governmental Funds 2023 2022 Change % of % of % of Amount Total Amount Total Amount Change General Government $ 215,290 10% $ 210,199 12% $ 5,091 2% Planning and Community Development 112,812 5% 205,386 11% (92,574) -45% Public Safety 448,508 20% 447,123 25% 1,385 0% Streets and Roads 867,162 39% 574,212 32% 292,950 51% Public Works 324,841 15% 144,862 8% 179,979 124% Parks and Recreation 238,203 11% 205,205 11% 32,998 16% Total Expenditures $ 2,206,816 100% $ 1,786,987 100% $ 419,829 23% Significant changes for major functions are explained below: General government had a slight increase overall. There was a decrease in the City Manager payroll due to having more time in other funds, a decrease in City attorney billing, and increases due to the addition of an account to track staff time on Public Records Requests and the cost of election supplies. Planning and Community Development had a decrease in Grant expenditures. The Grant is the continuation of the SB2 Planning grant and expenses for the LEAP Grant. The Grant work reduced during the 22-23 Fiscal year as the Grants were winding down. Public safety increase has a number of changes that make up this $1,385 change. The Fire department had an increase due to expenditures from the use of the PG&E settlement funds, Law enforcement had a decrease due to the code enforcement contractor doing work under the ARPA Funds and Building had an increase in code enforcement and a decrease in personnel. Streets and Roads increased in the Snow Removal Fund due to a number of heavy snow storms and in the STIP Fund the construction phase for the North Loop project began. Public Works increased due to the work on the Community Cleanup State and Local Fiscal Recovery project. Parks and Recreation increased as there were additional costs for damages to the City parks due to the heavy winter, more water use at the parks and a paving project at the Riverwalk. There was also repair work done to the Williams House. Proprietary funds. The City's proprietary funds provide the same type of information found in the government wide financial statements, but in more detail. These funds include the following enterprise funds: Water Service Fund, Sewer Service Fund, and Solid Waste Fund. As of June 30, 2023, the proprietary (enterprise) funds net position was a combined $8,511,501 with a net investment in capital assets of $3,781,873 and an unrestricted net position of $3,852,782. (9) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 V. BUDGETARY HIGHLIGHTS The budget documents normally represent a financial plan for the City with four central goals in mind: (1) sustaining the level and quality of basic municipal services currently being provided our residents (2) maintaining the City's infrastructure while implementing scheduled and unscheduled improvements determined at the time of the budget process; (3) providing for some opportunity for investment in additional tools, equipment and programs that foster improvement in the overall aesthetics of the City as well as investment in social activities; and (4) developing plans for improved municipal services with a vision that will lead our community toward growth and tourism. This year's budget, while keeping all four goals in mind, addressed mainly goals number (1) sustaining the level and quality of services currently being provided to our residents and (2) maintaining the City's infrastructure. In addition to the past goals, there is a renewed emphasis on economic development, blight reduction, and code compliance. Differences between the original budget and the final amended budget are mainly due to the revenue and expenditures from Grant funds and from Capital projects that are "reimbursed" and in many cases are not reflected in the original budget figures. The 2022-2023 budget had projected the use of $157,796 of the General Fund's fund balance to eliminate a shortfall of revenues over expenditures. After amending the budget for the fiscal year 2022/2023 General Fund revenues were more than budget by $60,937 and General Fund expenditures were $15,288 less than budgeted. While the City had originally budgeted a decrease of $157,796 in fund balance the final fund balance was a decrease of $128,578. The City received additional revenue but also had additional expenses in Snow removal from the winter storms which made for an increase in the amount that was transferred to the Snow removal fund to cover those expenses. The major special revenue funds include Streets, Snow removal, and the North Loop STIP project. It is difficult to budget the North Loop project ahead of time as these projects can be programmed and go on for years. Snow removal budgeting is also difficult with the main reason being the use of contract snow removal in heavy storm years. VI. CAPITAL ASSETS AND DEBT ADMINISTRATION A. Capital Assets The change in capital assets for the Governmental Activities totaled $(412,746), net of depreciation for an ending balance of $6,707,888. Business-type capital assets for the fiscal year ending June 30, 2023, were $4,459,702, net of depreciation. This is a decrease in capital assets of $236,137. More detailed information about the City's capital assets is presented in Note 5 of the basic financial statements. (10) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 B. Long-Term Debt At June 30, 2023, the City had long-term debt outstanding of $677,829. This is a decrease over June 30, 2022 of $33,000. The entire long-term debt was attributable to Business-type activities. There is no long-term debt in the Governmental Activities. More detailed information about the City's long-term liabilities is presented in Note 6 of the basic financial statements. VII. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES Management presented a budget document that attempted to address the current national, state, and local economic conditions and to serve as the City's policy document, as an operations guide, as a financial plan and as a communication document to guide the City staff and Portola residents on how the City of Portola conducts its financial business. The challenges of economiç conditions, the need to comply with state regulations and the desire to be conservative with the fiscal position of the City are reflected. For the 2023-2024 budget the process began as usual with City staff preparing draft level of services budgets for each area of the City. The budget process began in February and continued through March, April and May with revisions to the level of services budgets, additions of 'add-ons" and discussion of what would be needed to provide a balanced budget. A new salary range had been implemented in the prior year that included all full-time employees starting over on step increases. Due to that there were no step increases, however, the budget included a 7.125% cost of living increase. The Water Fund has funding for a soft excavation trailer and work on Willow Springs and the Sewer budget includes funding for sewer pond cleanout. The critical need to maintain healthy cash balances is always in the forefront of finance discussions. The City has been able to fund major projects in advance of reimbursements because of the balances that it currently maintains. This has been evident with the construction phase of the North Loop project. While the City always pays close attention to budget amendments and to the use of additional fund balance, some purchases are critical and the Council has an understanding of when those are one-time expenditures. The Council is always aware of the expenses that are reimbursable by another entity including grant funding and the Caltrans reimbursement of the North Loop project. Even with no increase in staffing the General Fund supports the services necessary for the residents of Portola, including fire, parks, planning, building, streets, snow removal, animal control and law enforcement through a Sheriffs contract for services. The City currently contracts with neighboring Beckwourth Fire Protection District to perform fire and emergency medical related services. Through a Council approved Memorandum of Understanding with adjacent fire districts, the City has explored the reorganization of fire and emergency services to strengthen and improve upon these services to the area. As a result of the efforts of the Local Emergency Services Study Group a feasibility study was conducted and a new Fire District is on the ballot for November 2023. In the 2023-2024 budget the City continues to utilize contract services for code enforcement and abandoned vehicle abatement. The use of City staff has increased in this area due to the use of State and Local Fiscal Recovery Funds to do a blight reduction community clean-up project. The project started in 2021-2022 and continues. Council is considering other uses of the remaining State and Local Fiscal Recovery Funds. (11) CITY OF PORTOLA MANAGEMENT'S DISCUSSION AND ANALYSIS FISCAL YEAR ENDED JUNE 30, 2023 Over the last few years an SB2 Planning Grant, and a related Local Early Action Planning Grant were used to improve and streamline the permit process in an attempt to attract growth. A housing development package was part of the grant as was the implementation of Mango Maps which can be found on the City Website. This grant work may also make other services the City provides more efficient as well, including easier acquisition of public records and parcel information. The City completed the implementation of new software that provides utility customers the ability to pay online as well as see their bills and usage and will allow payment of building permits and licenses online. These kinds of improvements are important to the overall functioning of the City and communication with the citizens. With regard to the City Enterprise Funds the effects and impacts of changing state and federal government regulation is a constant challenge, but the major challenge the Enterprise Funds face is the aging infrastructure in the City. This was never more evident than after the major storms. In the 2023- 2024 budget Water and Sewer rates were not increased. While the Council has been able to reduce the Solid Waste Administration fees over the past few years it was not able to do sO in the upcoming budget due to challenges with administering the Solid Waste Franchise agreement. The Landfill closure fee is reserved for future needs at the landfill. City staff recommended the reduction of the landfill closure fee by $1.00 a month and the hope is that can continue. The Enterprise Funds are "business- type" activities whose expenses need to be covered by the rate payers. The City Council will continue to review the need for any future rate increases each year during the budget process. Staff and the City Council are always looking for funding opportunities for infrastructure and have been working for quite some time toward that goal. It is important to remember that in November 2018 the Council voted to pay down $400,000 of the unfunded liability which has the potential to save over $500,000 in interest over time. While CalPERS unfunded liability is a moving target, this was a major and proactive step for the City to try and manage the annual payments going forward. Staff keeps a watchful eye on state and federal issues as well as on the financial health of the City and continually reviews these issues and the possibility of budget adjustments with the City Council. VIII. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial activity and condition of the City of Portola to all having such an interest in the City of Portola. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Portola Finance Department, 35 Third Avenue, P.O. Box 1225, Portola, California, 96122. (12) THIS PAGE INTENTIONALLY LEFT BLANK BASIC FINANCIAL STATEMENTS = GOVERNMEIMENT-WIDE FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PORTOLA STATEMENT OF NET POSITION JUNE 30, 2023 Primary Government Governmental Business-Type Activities Activities Totals ASSETS Cash and Investments $ 2,436,759 $ 5,012,452 $ 7,449,211 Restricted Assets: Restricted Cash 876,846 876,846 Imprest Cash 375 375 Prepaid Expense 3,249 3,249 Accounts Receivable 23,109 472,987 496,096 Interest Receivable 17,375 42,505 59,880 Due From Other Govemments 671,121 671,121 Loans and Notes Receivable, Net 148,168 148,168 Capital Assets: Nondepreciable 1,551,776 251,925 1,803,701 Depreciable, Net 5,156,112 4,207,777 9,363,889 Total Assets 10,008,044 10,864,492 20,872,536 DEFERRED OUTFLOWS OF RESOURCES Deferred Pensions 189,928 362,678 552,606 LIABILITIES Accounts Payable 293,886 79,398 373,284 Accrued Salaries and Benefits Payable 16,264 22,059 38,323 Deposits 10,080 31,159 41,239 Uneamed Revenue 237,539 237,539 Long-Term Liabilities: Portion Due or Payable Within One Year: Compensated Absences 8,113 11,990 20,103 Notes Payable 35,000 35,000 Portion Due or Payable After One Year: Compensated Absences 20,067 29,658 49,725 Notes Payable 642,829 642,829 Liability for Landfill Postclosure 1,371,944 1,371,944 Net Pension Liability 224,423 428,549 652,972 Total Liabilities 810,372 2,652,586 3,462,958 DEFERRED INFLOWS OF RESOURCES Deferred Pensions 33,035 63,083 96,118 NET POSITION Net Investment in Capital Assets 6,500,318 3,781,873 10,282,191 Restricted: General Government 107,052 107,052 Community Development 43,525 43,525 Capital Improvements 133,279 218,667 351,946 Facility Fees 589,817 589,817 Debt Service 68,362 68,362 Unrestricted 2,570,391 3,852,782 6,423,173 Total Net Position $ 9,354,565 $ 8,511,501 $ 17,866,066 See accompanying Notes to Financial Statements. (13) THIS PAGE INTENTIONALLY LEFT BLANK BASIC FINANCIAL STATEMENTS -= FUND FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PORTOLA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2023 State Transportation Other Improvement Gas Tax Snow Governmental General Plan 2107 Removal Funds Total ASSETS Cash and Investments $ 2,285,760 $ $ $ 1,348 $ 149,651 $ 2,436,759 ImprestCash 375 375 Notes Receivable 104,643 43,525 148,168 Accounts Receivable 23,109 23,109 InterestReceivable 16,298 1,077 17,375 Prepaid Expenses 3,249 3,249 Due From Other Funds 97,376 97,376 Due From Other Govemmental, Agencies 342,801 315,332 4,776 8,212 671,121 TotalA Assets $ 2,870,362 $ 318,581 $ 4,776 $ 1.348 $ 202,465 $ 3,397,532 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE Liabilities: Accounts Payable $ 69,754 $ 221,835 $ 1,586 $ 517 $ 194 $ 293,886 Accrued Salaries and Benefits Payable 12,817 2,271 831 345 16,264 Unearned Revenue 237,539 237,539 Deposits From Others 10,080 10,080 Due to Other Funds 96,457 919 97,376 Total Liabilities 330,190 318,292 4,776 1,348 539 655,145 Deferred Inflows ofResources: Unavailable Revenue 24,559 24,559 Total Deferred Inflows of Resources 24,559 24,559 Fund Balance: Nonspendable 3,249 3,249 Restricted 82,493 176,804 259,297 Assigned 25,122 25,122 Unassigned 2,433,120 (2,960) 2,430,160 Total Fund Balance 2,515,613 289 201,926 2,717,828 Total Liabilities, Deferred Inflows ofResources, and Fund Balance $ 2,870,362 $ 318,581 $ 4,776 $ 1,348 $ 202,465 $ 3,397,532 See accompanying Notes to Financial Statements. (15) CITY OF PORTOLA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS JUNE 30, 2023 Fund Balance Total Governmental Funds (From Previous Page) $ 2,717,828 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Capital Assets Used in Governmental Activities are not Financial Resources and, therefore, are not Reported in the Governmental Funds. 6,707,888 Deferred Outfiows of Resources as Reported in the Statement of Net Position 189,928 Deferred Inflows of Resources as Reported in the Statement of Net Position (33,035) Unavailable Revenues and Long-Term Assets Represent Amounts That are not Available to Fund Current Expenditures and, Therefore, are not Reported in the Govemmental Funds: Unavailable Revenues 24,559 Some Liabilities are not Due and Payable in the Current Period, and Therefore, are not Reported in the Governmental Funds: Compensated Absences (28,180) Net Pension Liability (224,423) Net Position of Governmental Activities $ 9,354,565 See accompanying Notes to Financial Statements. (16) CITY OF PORTOLA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FISCAL YEAR ENDED JUNE 30, 2023 State Transportation Other Improvement Gas Tax Snow Govemmental General Plan 2107 Removal Funds Total REVENUES Taxes $ 699,561 $ $ $ $ $ 699,561 Licenses and Permits 69,1 134 69,134 Fines, Forfeitures and Penalties 190 190 Use of Money and Property 51,418 2,996 54,414 Intergovernmental 674,487 332,310 55,458 136,331 46,867 1,245,453 Charges for Services 34,590 34,590 Other Revenues 6,858 6,858 Total Revenues 1,536,238 332,310 55,458 136,331 49,863 2,110,200 EXPENDITURES Current: General Government 215,290 215,290 Planning and Community Development 96,491 16,321 112,812 Public Safety 409,801 38,707 448,508 Streets and Roads 333,786 119,115 412,681 1,580 867,162 Public Works 324,841 324,841 Parks and Recreation 238,203 238,203 Total Expenditures 1,284,626 333,786 157,822 412,681 17,901 2,206,816 Excess (Deficiency) of Revenues Over (Under) Expenditures 251,612 (1,476) (102,364) (276,350) 31,962 (96,616) OTHER FINANCING SOURCES (USES) Transfers In 1,476 102,364 276,350 380,190 Transfers Out (380,1 190) (380,190) Total Other Financing Sources (Uses) (380, 190) 1,476 102,364 276,350 Net Change in Fund Balances (128,578) 31,962 (96,616) Fund Balances Beginning of Year 2,644,1 191 289 169,964 2,814,444 Fund Balances End of Year $ 2,515,613 $ 289 $ $ $ 201,926 $ 2,717,828 See accompanying Notes to Financial Statements. (17) CITY OF PORTOLA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FISCAL YEAR ENDED JUNE 30, 2023 NetChange to Fund Balance - Total Governmental Funds $ (96,616) Amounts Reported for Govemmental Activities in the Statement of Activities are Different Because: Governmental Funds Report Capital Outlay as Expenditures. However, in the Statement of Activities, the Cost of Those Assets is Allocated Over Their Estimated Useful Lives and Reported as Depreciation Expense. Expenditures for General Capital Assets, Infrastructure, and Other Related Capital Assets Adjustments $ 360,067 Less: Current Year Depreciation (772,813) (412,746) Revenues in the Statement of Activities That do not Provide Current Financial Resources are not Reported as Revenues in the Governmental Funds. (102,568) Some Expenses Reported in the Statement of Activties do not Require the Use of Current Financial Resources and, Therefore, are not Reported as Expenditures in Govemmental Funds: Change in Compensated Absences (10,037) Change in Accrued Net Pension Liability (105,110) Change in Net Position of Governmental Activities $ (727,077) See accompanying Notes to Financial Statements. (18) CITY OF PORTOLA STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS JUNE 30, 2023 Business-Type Activities Enterprise Funds Water Sewer Solid Service Service Waste Total ASSETS Current Assets: Cash and Investments $ 2,490,492 $ 1,782,831 $ 739,129 $ 5,012,452 InterestRecenable 20,672 16,499 5,334 42,505 Accounts Receivable 240,632 185,030 47,325 472,987 Restricted Assets: Restricted Cash 379,098 497,748 876,846 Total Current Assets 3,130,894 2,482,108 791,788 6,404,790 Noncurrent Assets: Capital Assets: Nondepreciable 170,057 50,446 31,422 251,925 Depreciable, Net 2,220,309 1,985,263 2,205 4,207,777 Total Noncurrent Assets 2,390,366 2,035,709 33,627 4,459,702 Total Assets 5,521,260 4,517,817 825,415 10,864,492 DEFERRED OUTFLOWS OF RESOURCES 191,812 153,073 17,793 362,678 LIABILITIES Current Liabilities: Accounts Payable 36,051 39,436 3,911 79,398 Accrued Salaries and Benefits Payable 14,256 6,826 977 22,059 Deposits 31,159 31,159 Liability for Compensated Absences 6,383 5,009 598 11,990 Notes Payable Current Portion 35,000 35,000 Total Current Liabilities 122,849 51,271 5,486 179,606 Noncurrent Liabilities Liability for Compensated Absences 15,788 12,390 1,480 29,658 Landfill Closure and Postclosure 1,371,944 1,371,944 Notes Payable 642,829 642,829 Net Pension Liability 226,650 180,874 21,025 428,549 Total Noncurrent Liabilities 885,267 193,264 1,394,449 2,472,980 Total Liabilities 1,008,116 244,535 1,399,935 2,652,586 DEFERRED INFLOWS OF RESOURCES 33,363 26,625 3,095 63,083 NET POSITION Net Investmentin Capital Assets 1,712,537 2,035,709 33,627 3,781,873 Restricted: Debt Service 68,362 68,362 Facility Fees 310,736 279,081 589,817 Capital Improvements 218,667 218,667 Unrestricted 2,579,958 1,866,273 (593,449) 3,852,782 Total Net Position $ 4,671,593 $ 4,399,730 $ (559,822) $ 8,511,501 See accompanying Notes to Financial Statements. (19) CITY OF PORTOLA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FISCAL YEAR ENDED JUNE 30, 2023 Business-Type Activities - Enterprise Funds Water Sewer Solid Service Service Waste Total OPERATING REVENUES Charges for Services $ 1,029,020 $ 733,793 $ 274,892 $ 2,037,705 Total Operating Revenues 1,029,020 733,793 274,892 2,037,705 OPERATING EXPENSES Salaries and Wages 443,813 344,835 44,879 833,527 Services and Supplies 456,811 405,408 34,687 896,906 Landfill Closure Costs 48,225 48,225 Depreciation 139,712 112,257 3,107 255,076 Total Operating Expenses 1,040,336 862,500 130,898 2,033,734 Operating Income (Loss) (11,316) (128,707) 143,994 3,971 NONOPERATING REVENUE (EXPENSE) Interest Income (Loss) 60,751 48,315 14,500 123,566 Intergovernmental Revenues 20,000 20,000 Debt Service Interest and Fiscal Charges (35,541) (35,541) Total Nonoperating Revenue (Expense) 25,210 48,315 34,500 108,025 Changes in Net Position 13,894 (80,392) 178,494 111,996 Net Position - Beginning of Year 4,657,699 4,480,122 (738,316) 8,399,505 Net Position End of Year $ 4,671,593 $4,399,730 $ (559,822) $ 8,511,501 See accompanying Notes to Financial Statements. (20) CITY OF PORTOLA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FISCAL YEAR ENDED JUNE 30, 2023 Business-Type Activities Enterprise Funds Water Sewer Solid Service Service Waste Total CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts From Customers $ 1,013,596 $ 712,470 $ 276,623 $ 2,002,689 Cash Paid to Suppliers for Goods and Services (428,488) (375,155) (91,485) (895,128) Cash Paid to Employees for Services (328,923) (256,455) (33,530) (618,908) Net Cash Provided by Operating Activities 256,185 80,860 151,608 488,653 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal Repayments on Long-Term Debt (33,000) (33,000) Interest Repayments Related to Capital Purposes (35,541) (35,541) Payments Related to the Acquisition of Capital Assets (8,581) (10,358) (18,939) Net Cash Provided (Used) by Capital and Related Financing Activities (77,122) (10,358) (87,480) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received or Paid 44,293 34,921 10,047 89,261 Net Cash Provided by Investing Activities 44,293 34,921 10,047 89,261 NET INCREASE IN CASH/ AND CASH EQUIVALENTS 223,356 105,423 181,655 510,434 Cash and Cash Equivalents - Beginning of Year 2,646,234 2,175,156 557,474 5,378,864 CASH AND CASH EQUIVALENTS END OF YEAR $ 2,869,590 $ 2,280,579 $ 739,129 $ 5,889,298 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and Cash Equivalents in Current Assets $ 2,490,492 $ 1,782,831 $ 739,129 $ 5,012,452 Cash and Cash Equivalents in Restricted Assets 379,098 497,748 876,846 Total Cash and Cash Equivalents $ 2,869,590 $ 2,280,579 $ 739,129 $ 5,889,298 See accompanying Notes to Financial Statements. (21) CITY OF PORTOLA STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS FISCAL YEAR ENDED JUNE 30, 2023 Business-Type Activities - Enterprise Funds Water Sewer Solid Service Service Waste Total RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASHPROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (11,316) $ (128,707) $ 143,994 $ 3,971 Adjustments to Reconcile Operating Income (Loss)t to Cash Flows From Operating Activities: Depreciation 139,712 112,257 3,107 255,076 Changes in Assets and Liabilities: (Increase)! Decrease in: Utilities Receivable (19,312) (21,323) 1,731 (38,904) Customer Deposits 3,888 3,888 Prepaid Expenses 5,094 5,094 Deferred Outflows (103,404) (77,530) (6,024) (186,958) Increase (Decrease)in: Accounts Payable 26,875 30,757 1,286 58,918 Accrued Expenses 2,122 620 250 2,992 Liability for Compensated Absences 7,015 3,857 259 11,131 Closure/Postclosure Liability (9,859) (9,859) Net Pension Liability 219,457 174,728 20,067 414,252 Deferred Inflows (13,946) (13,799) (3,203) (30,948) Net Cash Provided (Used) by Operating Activities $ 256,185 $ 80,860 $ 151,608 $ 488,653 See accompanying Notes to Financial Statements. (22) NOTES TO FINANCIAL STATEMENTS The notes provided in the Financial Section of this report are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a Summary of Significant Accounting Policies for the City, and other necessary disclosures of pertinent matter relating to the financial position of the City. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document. (23) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Portola is governed by an appointed City Manager and elected five-member Council, from which a mayor is elected annually. A. Description of Reporting Entity The accounting methods and procedures adopted by the City conform to generally accepted accounting principles as applied to governmental entities. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Reporting for component units on the City's financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government's operations. Blended component units are an extension of the City and SO data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize they are legally separate from the City. The City had no blended or discretely presented component units as of June 30, 2023. B. Basis of Financial Presentation 1. Government-Wide Financial Statements The statement of net position and statement of activities display information about the City and its components. These statements include the financial activities of the overall government. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are primarily supported by fees charged to external parties. The statement of activities presents a comparison between direct and indirect expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or a function and; therefore, are clearly identifiable to a particular function. Indirect expenses are those that are allocated to a program or a function from the City's centralized general service function based on the cost allocation principles established by the Federal Office of Management and Budget (OMB). Program revenues include 1) charges paid by the recipients of goods or services offered by the programs, 2) fines and penalties ordered by the courts, 3) licenses and permits charged by the programs, and 4) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. When both restricted and unrestricted net positions are available, restricted resources are used first then the unrestricted resources are depleted. (24) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 2. Fund Financial Statements The fund financial statements provide information about the City's funds. Separate statements for each fund category = governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. The City reports all enterprise funds as major funds. All remaining governmental funds are separately aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. The City reports the following major governmental funds: The General Fund is the primary operating fund of the City. It is used to account for all financial resources and transactions except those required to be accounted for in another fund. The State Transportation Improvement Plan (STIP) Fund is used to account for projects that are funded using State Transportation Improvement Program monies. The Gas Tax 2107 Fund is used to account for State Gas Tax Funds and transactions associated with street maintenance and repair. The Snow Removal Fund is used to account for State Funds for Snow Removal and all associated costs to the City. The City reports all of its enterprise funds as major funds: The Water Service Fund is used to account for water services provided to the residents of the City and for a small number of residents directly outside the City. The Sewer Service Fund is used to account for sewer services. The Solid Waste Fund is used to account for the franchised curbside refuse and recycling collection provided to residences and businesses within the City and for the landfill postclosure maintenance costs. C. Basis of Accounting The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) values without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donation. On the accrual basis, property tax revenues are recognized in the fiscal year for which the taxes are levied. Sales taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. (25) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, expenditures are recorded when the related liability is incurred except the unmatured interest on long-term debt, and expenses related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financial sources. Revenues are recorded when they are both measurable and available to finance expenditures during the fiscal period. Property and sales taxes, interest, state and federal grants, and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period sO as to be both measurable and available. Revenues earned but not received within sixty days after the end of the accounting period, on the other hand, are recorded as receivables and deferred inflows. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. D. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the general purpose financial statements and the reported amount of revenue and expenditures or expenses during the reporting period. Actual results could differ from those estimates. E. Interfund Transactions and Balances Interfund transactions are either reflected as loans, services provided, reimbursements, or transfers. Loans are reported as receivable and payables as appropriate, are subject to elimination upon consolidation and are referred to as either "due to/due from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, are reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation. (26) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 F. Capital Assets Capital assets (including infrastructure) are recorded at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their acquisition value. Capital assets include public domain (infrastructure) consisting of certain improvements including roads, bridges and water/sewer systems. The City is not required to retroactively report infrastructure and therefore has elected not to do SO. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets used in operations are depreciated or amortized ( right to use assets under leases) using the straight-line method over the lesser of the lease period or their estimated useful lives in the government-wide statements. The estimated useful lives are as follows: Buildings 50 years Infrastructure 15 to 30 years Building improvements 10 to 30 years Equipment 3 to 20 years G. Property Tax Plumas County assesses properties, bills, collects, and distributes property taxes to the City. For this service, the County charges the City an administration fee. Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July 1, and are payable in two instalments on December 10 and April 10. The County bills and collects property taxes and remits them to the City in installments during the year. H. Cash and Investments For purposes of the Statement of Cash Flows - Proprietary Funds, the City considers all short-term highly liquid investments, including restricted cash and investments, to be cash and cash equivalents. Amounts held in the City's investment pool are available on demand; thus, they are considered highly liquid and cash equivalents for purposes of the Statement of Cash Flows - Proprietary Funds. I. Fair Value Measurements Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. (27) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable input reflect the City's own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City's own data. J. Receivables Receivables consist of property taxes, sales taxes and grants from other governmental agencies. As of June 30, 2023, no balance has been provided as an allowance for doubtful accounts because in the opinion of management all receivables are considered collectible. K. Compensated Absences The following is the City's policy on compensated absences upon discontinuation of services: Percent of Percent of Sick Hours Vacation Hours Employee Status Received Received Part-time 25 100 Full-time 25 100 The annual leave includes vacation and sick leave. City employees have vested interests in the amount of annual leave accrued and are paid on termination. The city accrues accumulated unpaid compensated absences when earned (or estimated to be earned) by the employee. The noncurrent (the amount estimated to be used in subsequent fiscal years) for governmental funds is maintained separately and represents a reconciling item between the fund and government-wide presentation. In accordance with the provisions of the GASB No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulated rights to receive sick pay benefits. (28) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 L. Pensions For purposes of measuring the net pension liability and deferred Outtlows/Inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. M. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period and sO will not be recognized as an outflow of resources expenselexpenditure, until then. The City has two items which qualify for reporting in this category. See pension disclosure Footnote 9. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period and sO will not be recognized as an inflow of resources (revenue) until that time. The City has two items which qualify for reporting in this category. See pension disclosure Footnote 9. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. NOTE 2 NET POSITION/FUND BALANCE Net Position The government-wide activities financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted. Net Investment in Capital Assets This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category. Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position This category represents net position of the City, not restricted for any project or other purpose. (29) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Fund Equity In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent. Nonspendable fund balance - amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact. Restricted fund balance = amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed fund balance - amounts that can only be used for specific purposes determined by formal action of the highest level of decision-making authority and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. Assigned fund balance amounts that are constrained by the intent to be used for specific purposes. The intent can be established at either the highest level of decision- making, or by a body or an official designated for that purpose. This is also the classification for residual funds in the special revenue funds. Unassigned fund balance - the residual classification for the General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes. The City Council establishes, modifies, or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, followed by the unrestricted, committed, assigned and unassigned resources as they are needed. NOTE 3 CASH AND INVESTMENTS At June 30, 2023, total City cash and investments at fair value were as follows: Petty Cash $ 375 Cash in Bank 699,416 LAIF 7,626,641 Total $ 8,326,432 (30) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Total cash and investments at June 30, 2023 were presented on the City's financial statements as follows: Cash and Investments $ 7,449,211 Imprest Cash 375 Restricted Assets: Cash 876,846 Total $ 8,326,432 Restricted cash and investments in the enterprise fund are comprised of funds held for debt service, facility fees, and wastewater treatment capital improvements. Investments At June 30, 2023, the City had the following investments: Amortized Par Cost Cost Investments: Local Agency Investment Fund (LAIF) $ 7,626,641 $ 7,626,641 $ 7,626,641 Total Investments $ 7,626,641 $ 7,626,641 $ 7,626,641 Interest Rate Risk The City manages its exposure to declines in fair values by investing excess cash in the State's Local Agency Investment Fund. Funds held in this account are available on demand. Credit Risk The City authorizes participation in the following types of investments: FDIC Insured Accounts, Local Agency Investment Fund, and United States Government Securities. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the City's Investment Pool at June 30, 2023. Percent of Moody's Portfolio Local Agency Investment Fund (LAIF) Unrated 100. 00% Total Pooled investments 100. 00% Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of a 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. As of June 30, 2023, the recorded amount of the City's deposits was $699,416 and the bank balance was $795,702. Of the bank statement balance, $250,000 was covered by federal depository insurance and $545,702 was subject to collateralization. (31) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Local Agency Investment Fund The City maintains an investment in the state of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the state in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer's Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2023, the City's investment position in LAIF was $7,626,641 which approximates fair value and is the same as value of the pool shares. The total amount invested by all public agencies in PMIA on that day was $178,382,808,290. Of that amount, 2.78% was invested in structured notes and asset-backed securtities with the remaining 97.22% invested in other nonderivatives financial reports. Fair Value Measurement The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. LAIF is the City's only investment and it is measured on amortized cost basis as of June 30, 2023. NOTE 4 LOANS AND NOTES RECEIVABLE During the fiscal year ended June 30, 2012, the City extended a loan to Eastern Plumas Health Care District in the amount of $348,000. The loan bears initial interest of 1.48% per year to be adjusted annually to reflect LAIF interest rate plus 1%. The term of the loan is 168 months. As of June 30, 2023, the outstanding balance was $104,643. The City also issued Community Development Block Grant (CDBG) loans in the amount of $43,525. The total loans and notes receivable at June 30, 2023 is $148,168. (32) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 NOTE 5 CAPITAL ASSETS Capital asset activity for the year ended June 30, 2023 was as follows: Balance Transfers and Balance Governmental Activities July01,2022 Additions Retirements June 30, 2023 Capital Assets, Not Being Depreciated: Land $ 746,277 $ $ $ 746,277 Construction in Progress 477,927 332,310 (4,738) 805,499 Total Capital Assets, Not Being Depreciated 1,224,204 332,310 (4,738) 1,551,776 Capital Assets, Being Depreciated: Infrastructure 13,681,298 32,495 13,713,793 Buildings and Improvements 1,711,614 1,711,614 Machinery: and Equipment 1,608,138 1,608,138 Intangible Assets 58,297 58,297 Total Capital Assets, Being Depreciated 17,059,347 32,495 17,091,842 Less: Accumulated Depreciation for: Infrastructure (8,480,541) (616,124) 9,096,665) Buildings and Improvements (1,364,242) (58,053) (1,422,295) Machinery and Equipment (1,316,515) (79,204) (1,395,719) Intangible Assets (1,619) (19,432) (21,051) Total Accumulated Depreciation (11,162,917) (772,813) (11,935,730) Total Capital Assets, Being Depreciated, Net 5,896,430 (740,318) 5,156,112 Governmental Activities Capital Assets, Net $ 7,120,634 $ (408,008) $ (4,738) $ 6,707,888 (33) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Balance Trans fers and Balance Business-Type Activities July01,2022 Additions Retirements June 30, 2023 Capital Assets, Not Being Depreciated: Land $ 62,844 $ $ $ 62,844 Construction in Progress 189,081 189,081 Total Capital Assets, Not Being Depreciated 251,925 251,925 Capital Assets, Being Depreciated: Buildings and Improvements 8,593,575 8,593,575 Machineryand Equipment 1,311,896 18,939 (24,003) 1,306,832 Total Capital Assets, Being Depreciated 9,905,471 18,939 (24,003) 9,900,407 Less: Accumulated Depreciation for: Buildings and Improvements (4,308,715) (204,589) (4,513,304) Machineryand Equipment (1,152,842) (50,487) 24,003 (1,179,326) Total Accumulated Depreciation (5,461,557) (255,076) 24,003 (5,692,630) Total Capital Assets, Being Depreciated, Net 4,443,914 (236,137) 4,207,777 Business-Type Activities, Net $ 4,695,839 $ (236,137) $ $ 4,459,702 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Govemment $ 41,448 Public Protection 30,005 Public Ways and Facilities 1,124 Streets and Roads 622,716 Recreation and Culture 77,520 Total Depreciation Expense - Govemmental Activities $ 772,813 Business-Type Activities: Water Fund $ 139,712 Sewer Fund 112,257 Solid Waste Fund 3,107 Total Depreciation Expense - Business-Type Activities $ 255,076 (34) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 NOTE 6 LONG-TERM LIABILITIES Long-term liabilities at June 30, 2023 consisted of the following: Annual Original Date of Date of Interest Principal Issue Outstanding at Business-Type Activities Issue Maturity Rates Installments Amount June 30, 2023 1997 Special Assessment Water Improvement Note Payable from! Direct Borrow ing 1997 5/1/2037 5.00% $5,000-$25,000 $ 1,173,000 $ 677,829 (to Finance Improvements to the City's Water: System) Total Business-Type Activities $1,173,000 $ 677,829 The following is a summary of long-term liabilities transactions for the year ended June 30, 2023: Amounts Balance Balance Due Within July 1, 2022 Additions Deletions Adjustment June 30, 2023 One Year Governmental Activities: Compensated Absences $ 18,143 $ 10,037 $ $ $ 28,180 $ 8,113 Total $ 23,243 $ 10,037 $ $ 5 28,180 $ 8,113 Business-Type Activities: Notes Payable from Direct Borrowing $ 710,829 $ $( (33,000) $ $ 677,829 $ 35,000 Postclosure Costs 1,381,803 48,225 (58,084) 1,371,944 Compensated Absences 30,517 11,131 41,648 11,990 Total $2,093,918 $ 59,356 $(91,084) $ $2,091,421 $ 46,990 (35) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 The City's outstanding note payable for business-type activities is secured by water service revenue. As of June 30, 2023, annual debt service requirements of business-type activities to maturity are as follows: Business-Type Activities Notes Payable from Direct Borrowing Year Ending June 30, Principal Interest 2023 $ 35,000 $ 33,900 2024 37,000 32,150 2025 38,000 30,300 2026 40,000 28,400 2027 42,000 26,400 2028-2032 245,000 98,200 2033-2037 240,829 30,800 Total $ 677,829 $ 280,150 NOTE 7 INTERFUND TRANSACTIONS AND BALANCES The composition of interfund balances as of June 30, 2023 is as follows: Due To/From Other Funds: Receivable Fund Payable Fund Amount Purpose To cover cash deficit expected to be General Fund STIP $ 96,457 recovered through future revenues. To cover cash deficit expected to be General Fund Gas Tax 2107 919 recovered through future revenues. $ 97,376 Tra nsfers: Transfers are used to subsidize various City operations. The following schedule briefly summarizes the City's transfer activity for the fiscal year ended June 30, 2023: Transfer From Transfer to Amount General Fund Gax Tax 2107 $ 102,364 Snow Removal 276,350 STIP 1,476 $ 380,190 (36) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 NOTE 8 FUND DISCLOSURES The following funds had a net position/fund balance deficit at the end of the fiscal year: Enterprise Funds: Solid Waste Fund $ (559,822) The Solid Waste Fund has incurred a deficit net position balance as a result of recognition of the estimated liability for the landfill postclosure care costs. The City has established a solid waste surcharge included in its utility billings to reduce the deficit in this fund. NOTE 9 DEFINED BENEFIT PENSION PLANS A. General Information about the Pension Plans 1. Plan Description The City of Portola provides pension benefits to eligible employees through cost sharing multiple-employer defined benefit pension plans (pension plans) administered by the California Public Employees Retirement System (PERS), a public employee retirement system which acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees are eligible to participate in the City's pension plans. The City's Miscellaneous Plans (Tier I and Tier II) and PEPRA Miscellaneous Plan are cost-sharing mutiple-employer defined benefit plans. Benefit provisions and other requirements are established by state statute and City resolution. The City's defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and their beneficiaries. The City selects optional benefit provisions by contract with PERS and adopts those benefits through City ordinance. Copies of PERS annual financial reports which include required supplementary information (RSI) for each plan may be obtained from PERS Executive Offices, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. 2. Benefits Provided All pension plans provide benefits, upon retirement, disability, or death of members. Retirement benefits are based on years of service, final average compensation, and retirement age. Employees terminating before accruing five years of retirement service credit forfeit the right to receive retirement benefits unless they establish reciprocity with another public agency within a prescribed time period. Nonvested employees who terminate service are entitled to withdraw their accumulated contributions plus accrued interest. Employees who terminate service after earning five years of retirement service credit may leave their contributions on deposit and elect to take a deferred retirement. Differences between expected and actual experience for vested and nonvested benefits may result in an increase or decrease to pension expense and net pension liability. (37) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 Nonservice related disability benefits are provided to miscellaneous members. The benefit is based on final compensation, multiplied by service, which is determined as follows: Service is CalPERS credited service, for members with less than 10 years or service or greater than 18.518 years of service; or Service is CalPERS credited service plus the additional number of years that the member would have worked until age 60, for members with at least 10 years but not more than 18.518 years of service. Death benefits are based upon a variety of factors including whether the participant was retired or not. Annual cost-of-living adjustments (COLAs) after retirement are provided in all plans. COLAS are granted to retired members each May based upon the Bureau of Labor Statistics Average Consumer Price Index for All Urban Consumers for the previous calendar year and is subject to a maximum of 2% per annum. The Plans' provisions and benefits in effect at June 30, 2023, are summarized as follows: Miscellaneous Miscellaneous Tierl Tier II PEPRA Hire Date Prior to On or after On or after July 1, 2012 July1 1, 2012 January 2, 2013 Benefit Formula 2.7% at 55 2.0% at 60 2.0% at 62 Benefit Vesting Schedule 5 Years of 5 Years of 5 Years of Credited Service Credited Service Credited Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement. Age 50 50 52 Monthly Benefits, as % of Eligible Compensation 2.0%-2.7% 1.1%-2.4% 1.0%-2.5% Required Employee Contribution Rates 8.0% 6.93% 6.75% Required Employer Contribution Rates 13.350% 8.630% 7.470% Status Open Open Open (38) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 3. Employees Covered Information regarding the number of employees covered by the benefit terms for the Miscellaneous Plans is not available for cost-sharing multiple-employer defined benefit pension plans. 4. Contributions Section 20814 of the California Public Employees' Retirement Law requires the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. During the year ended June 30, 2023, the City made contributions totaling $118,141 to the Plan. B. Net Pension Liability The City's net pension liability for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 1. Actuarial Assumptions The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions: Miscellaneous PEPRA Valuation Date June 30, 2021 June 30, 2021 Measurement Date June 30, 2022 June 30, 2022 Actuarial Cost Method Entry-Age Normal Actuarial Assumptions: Discount Rate 6.90% 6.90% Inflation 2.50% 2.50% Payroll Growth 2.75% 2.75% Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.00% 7.00% Mortality Derived Using CalPERS' Membership Data for All Funds (1) Net of Pension Plan Investment Expenses, Including Inflation. The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a 2021 actuarial experience study for the period 2000 to 2019. Further details of the Experience Study can be found on the CalPERS website. (39) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 2. Change of Assumption Demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. 3. Discount Rate Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. Any changes to the discount rate will require Board action and proper stakeholder outreach. CalPERS will continue to check the materiality of the difference in calculation until there is a change in methodology. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension investment expense and inflation) are developed for each major asset class. The long-term expected rate of return includes both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric)returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of 1%. The long-term expected real rates by asset class can be found in CalPERS' Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022. (40) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 4. Proportionate Share of the Net Pension Liability The Miscellaneous plans are part of a Risk Pool, which is part of the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan. The City's net pension liability for the Miscellaneous Plan was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all plan participants, actuarially determined. The City's net pension liability and related Plan proportion for the Miscellaneous Plan is as follows: Miscellaneous Proportion June 30, 2022 0.00117% Proportion June 30, 2023 0.01395% Change - Increase/(Decrease) 0.01278% C. Changes in the Net Pension Liability 1. Sensitivity of the Net Pension Liability to Change in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage points lower or 1-percentage point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase 5.90% 6.90% 7.90% Net Pension Liability $ 1,223,446 $ 652,972 $ 183,613 2. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. D. Pension Revenue and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $419,595. Pension expense represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred. recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits. (41) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences Between Expected and Actual Experience $ 13,113 $ 8,782 Changes in Assumptions 66,911 Change in Employer's Proportion and Differences Between the Employer's Contributions and the Employer's Proportionate Share of Contributions 87,336 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 119,607 Change in Employer's Proportion 234,834 City Contribution Subsequent to the Measurement Date 118,141 Total $ 552,606 $ 96,118 $118,141 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outfows/Inflows) Year Ending June 30, of Resources 2024 $ 108,428 2025 98,090 2026 58,674 2027 73,155 Total $ 338,347 NOTE 10 OTHER POSTEMPLOYMENT BENEFITS The City does not offer health insurance benefits to its retirees. By resolution number 2071 the City has confirmed that retirees are only eligible to receive those benefits offered to them by participation in the state of California Public Employees Retirement System (PERS), as well as those that they may be eligible for under the federal Medicare program. (42) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 NOTE 11 LANDFILL CLOSURE AND POSTCLOSURE CARE COST The City is responsible for one closed landfill site. State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and perform certain maintenance and monitoring functions at the site for thirty years after closure. GASB Statement No. 18 requires a portion of these closure and postclosure care costs be reported as an operating expense in each period based on landfill capacity used as of each statement of net position date. Since the landfill is no longer accepting waste, the entire estimated expense and related liability have been reported. As of June 30, 2023, the City's estimated liability for postclosure maintenance costs for the landfill was $1,371,944. This estimate is based on the amount that would be paid if all equipment, facilities, and services required to close and/or monitor the landfills were acquired as of the balance sheet date. The costs for landfill postclosure maintenance costs are based on yearly estimates, reviewed by the California Integrated Waste Management Board, as prepared by TGV Solid Waste, Inc. Actual costs may be higher due to inflation, change in technology, or changes in regulations. The City has applied the annual inflation factor to the liability each year and has reduced the liability by actual expenses incurred. The City is required by the California Code of Regulations to demonstrate financial responsibility for postclosure maintenance costs. The City has met this requirement for the Portola landfill through a pledge of revenue. NOTE 12 RISK MANAGEMENT The City of Portola is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; error and omissions; injuries to employees; and natural disasters. The City participates in joint powers agreements through the Small Cities Organized Risk Effort (SCORE) and California Joint Powers Risk Management Authority (CJPRMA). The relationship between the City and the JPAS is such that the JPAS are not considered a component unit of the City for financial reporting purposes. The JPAS arrange for and provide liability coverage for members. Each JPA is governed by a board consisting of a representative from each member. The Board controls the operations of the JPA including selection of management and approval of operating budgets, ndependent of any influence by the members beyond their representation on the board. Each member pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionate to their participation in the JPA. The City participates in a Banking Plan for the first $25,000 of loss. The portion of loss greater than $25,000 but less than $500,000 is shared among the Member Cities in the Shared Risk Pool. The City participates in the CJPRMA for the portion of losses greater than $500,000 to a maximum of $10,000,000. The liability related to the Banking Plan was deemed immaterial. (43) CITY OF PORTOLA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 The Authority establishes claims liabilities based on estimates of the ultimate cost of claims (including future claim adjustment expenses that have been reported but not settled, and of claims that have been incurred but not reported (IBNR)). The length of time for which such costs must be estimated varies in the coverage involved. Estimated amounts of salvage and subrogation and excess-insurance recoverable on unpaid claims are deducted from the liability for unpaid claims. NOTE 13 COMMITMENTS AND CONTINGENCIES A. Construction Commitments At June 30, 2023, the City has commitments of approximately $2.8 million for construction contracts, awarded but not completed. The major contract outstanding is for the completion of the STIP North Loop Project. All costs on this project are 100% reimbursable by the State. B. Litigation The City is subject to various lawsuits, inverse condemnation cases, personnel actions, and other actions incidental to the ordinary course of City operations. In the opinion of the City attorney, the total potential claims against the City covered by insurance resulting from litigation would not materially affect the financial statements of the City at June 30, 2023. NOTE 14 EXCESS EXPENDITURES OVER BUDGET The City had expenditures that exceeded its budget in the Snow Removal Fund by $65,292. (44) REQUIRED SUPPLEMENTARY INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK 2 @ CITY OF PORTOLA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED JUNE 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 615,800 $ 615,800 $ 699,561 $ 83,761 Licenses and Permits 67,700 67,700 69,134 1,434 Fines, Forfeitures and Penalties 200 200 190 (10) Use of Money and Property 7,500 52,500 51,418 (1,082) Intergovernmental 337,700 702,369 674,487 (27,882) Charges for Services 16,500 28,500 34,590 6,090 Other Revenues 8,232 6,858 (1,374) Total Revenues 1,045,400 1,475,301 1,536,238 60,937 EXPENDITURES Current: General Govemment 244,329 244,329 215,290 29,039 Planning and Community Development 79,804 104,804 96,491 8,313 Public Safety 346,962 414,530 409,801 4,729 Public Works 93,894 312,894 324,841 (11,947) Parks and Recreation 196,357 223,357 238,203 (14,846) Total Expenditures 961,346 1,299,914 1,284,626 15,288 Excess (Deficiency) of Revenues Over Expenditures 84,054 175,387 251,612 76,225 OTHER FINANCING SOURCES (USES) Transfers Out (241,850) (358,656) (380,190) (21,534) Total Other Financing Sources (Uses) (241,850) (358,656) (380,190) (21,534) Net Change in Fund Balances (157,796) (183,269) (128,578) 54,691 Fund Balances - Beginning of Year 2,644,191 2,644,191 2,644,191 Fund Balances - End of Year $ 2,486,395 $2,460,922 $2,515,613 $ 54,691 (47) CITY OF PORTOLA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES = BUDGET AND ACTUAL STATE TRANSPORTATION IMPROVEMENT FUND FISCAL YEAR ENDED JUNE 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ $ 332,300 $ 332,310 $ 10 Total Revenues 332,300 332,310 10 EXPENDITURES Current: Streets and Roads 10,000 342,300 333,786 8,514 Total Expenditures 10,000 342,300 333,786 8,514 Excess Deficiency) of Revenues Over Expenditures (10,000) (10,000) (1,476) (8,504) OTHER FINANCING SOURCES (USES) Transfers In 10,000 10,000 1,476 (8,524) Total Other Financing Sources (Uses) 10,000 10,000 1,476 (8,524) Net Change in Fund Balances Fund Balances - Beginning of Year 289 289 289 Fund Balances - End of Year $ 289 $ 289 $ 289 $ (48) CITY OF PORTOLA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES = BUDGET AND ACTUAL GAS TAX 2107 FUND FISCAL YEAR ENDED JUNE 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovemmental $ 55,053 $ 55,053 $ 55,458 $ 405 Total Revenues 55,053 55,053 55,458 405 EXPENDITURES Current: Public Safety 39,000 39,000 38,707 293 Streets and Roads 137,320 137,320 119,115 18,205 Total Expenditures 176,320 176,320 157,822 18,498 Excess (Deficiency) of Revenues Over Expenditures (121,267) (121,267) (102,364) 18,903 OTHER FINANCING SOURCES (USES) Transfers In 121,267 121,267 102,364 (18,903) Total Other Financing Sources (Uses) 121,267 121,267 102,364 (18,903) Net Change in Fund Balances Fund Balances - Beginning of Year Fund Balances End of Year $ $ $ $ (49) CITY OF PORTOLA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES = BUDGET AND ACTUAL SNOW REMOVAL FUND FISCAL YEAR ENDED JUNE 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 120,000 $ 120,000 $ 136,331 $ 16,331 Total Revenues 120,000 120,000 136,331 16,331 EXPENDITURES Current: Streets and Roads 230,584 347,389 412,681 (65,292) Total Expenditures 230,584 347,389 412,681 (65,292) Excess (Deficiency) of Revenues Over Expenditures (110,584) (227,389) (276,350) (48,961) OTHER FINANCING SOURCES (USES) Transfers In 110,584 227,389 276,350 48,961 Total Other Financing Sources (Uses) 110,584 227,389 276,350 48,961 Net Change in Fund Balances Fund Balances - Beginning of Year Fund Balances - End of Year $ $ $ $ (50) CITY OF PORTOLA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2023 BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution. 4. Budget adjustments from reserves and between funds are approved by the City Council and budget transfers within fund or department are approved by the City Manager. Expenditures may not legally exceed budgeted appropriations at the fund level for all funds without the City Council's approval. 5. Budgets are adopted for the General Fund and Special Revenue Funds. 6. Formal budgetary integration is employed as a management control device during the year in all funds. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all funds. (51) THIS PAGE INTENTIONALLY LEFT BLANK SUPPLEMENTARY INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR SPECIAL REVENUE FUNDS CITY OF PORTOLA COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 Community Road Maintenance Development and Block Rehabilitation Account Grant Total ASSETS Cash and Investments $ 124,366 $ 25,285 $ 149,651 Due from Other Governments 8,212 8,212 Interest Receivable 895 182 1,077 Notes Receivable, Net 43,525 43,525 Total Assets $ 133,473 $ 68,992 $ 202,465 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 194 $ $ 194 Accrued Salaries and Benefits Payable 345 345 Total Liabilities 194 345 539 Fund Balance: Restricted 133,279 43,525 176,804 Assigned 25,122 25,122 Total Fund Balance 133,279 68,647 201,926 Total Liabilities and Fund Balance $ 133,473 $ 68,992 $ 202,465 (52) CITY OF PORTOLA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FISCAL YEAR ENDED JUNE 30, 2023 Community Road Maintenance Development and Block Rehabilitation Account Grant Total REVENUES Use of Money and Property $ 2,367 $ 629 $ 2,996 Intergovemmental 46,867 46,867 Total Revenues 49,234 629 49,863 EXPENDITURES Current: Streets and Roads 1,580 1,580 Planning and Community Development 16,321 16,321 Total Expenditures 1,580 16,321 17,901 Net Change in Fund Balances 47,654 (15,692) 31,962 Fund Balances - Beginning of Year 85,625 84,339 169,964 Fund Balances End of Year $ 133,279 $ 68,647 $ 201,926 (53) THIS PAGE INTENTIONALLY LEFT BLANK OTHER REPORTS THIS PAGE INTENTIONALLY LEFT BLANK - / CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS 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 Honorable Mayor and Council Members Portola, 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 Govemment Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Portola (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 October 18, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, we do not express an opinion on the effectiveness of City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA ClftonlarsonAllen LLP)is an independent network member OfCLA Global. See CAsboba.com/aisdaimer (54) Honorable Mayor and Council Members City of Portola Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment 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. efarlaissib LL2 CliftonlarsonAllen LLP Roseville, California October 18, 2023 (55) Global CLA (CuftonlarsonAllen LLP) is a network member of CLA Global. See ClAgobalcom/diclame, Investment advisory services are offered through CliftonlarsonAllen! Wealth Advisors, LLC, an INDEPENDENT NETWORK MEMBER SEC-registered investment advisor. CITY COUNCIL AGENDA STAFF REPORT TO: Honorable Mayor and Members ofthe City Council FROM: Jon Kennedy, Interim City Manager MEETING: December 13, 2023 SUBJECT: City Website BACKGROUND The City was informed that the CivicPlus website annual subscription was due to increase next year, which caused a need to consider the city's future website needs. Recently staff attended a quarterly SCORE meeting where the concern of website accessibility was discussed and strongly encouraged to get assessed and addressed. The standard CivicPlus subscription does not include ADA monitoring and compliance, but for an additional fee, we can be guaranteed ADA compliance and limit our liability. The bundled package to do this, ranged between $6.520 and $7,000 per year, with an undetermined set-up fee for the ADA compliance element. This caused a need to seek other options. Staff reached out to Streamline for a demo and quote. Streamline is a California based company that serves Special Districts and small cities. Streamline's standard subscription includes hosting the city's website, unlimited technical assistance, which should be limited due to Streamline's much more "streamline" content management system, full ADA compliance monitoring and repair, and public alert systems. Streamline's quote was $4,260 or $445 per month, with a one- time $2,500 set-up fee. There will be no down time for our website if we transition to Streamline. RECOMMENDATION Approve signing an agreement with Streamline and begin the process of transitioning over. monsido - Llal CMMICPLUS Prioritized Content * Policies Quality Assurance Accessibility a SEO Heartbeat PageCorrect Data Privacy Performance Statistics ccessibility your website's compliance levels (WCAG 2.1) and fix issues that are making it difficult for people with disabilities to use your website Level A compliance Accessibility Diagnostics 91 of 141 checks passed Percentage shows number of pages that are compliant with all Accessibility checks History (last 1 scans) e 144 done 50 to fix Indus 72 2 43 72.51 % 0 Nov 13 Accessibility Compliance Level AA compliance 11 of 39 checks passed Failing accessibility checks e Pages with failing checks History (last 1 scans) e 78 /180 385 T 100% 40 done 28 to fix 20 24 1 0 Nov 13 sibility checks compliance by level AA ecks done 78 Checks to fix - Checks passed Failing checks n Pages with issu G2 CivicPlus 302 South 4th St. Suite 500 Quote #: Q-51850-1 Manhattan, KS 66502 Date: 10/4/2023 12:01 PM US Customer: PORTOLA, CALIFORNIA QTY Product Name DESCRIPTION TOTAL 1.00 Web Open Platform Migration Web Open Platform Migration USD 385.00 1.00 Standard Annual - CivicEngage Open CivicCMS Standard Annual USD 2,415.00 Renewal Annual Recurring Services - Initial Term USD 2,800.00 1. This renewal Statement of Work ("SOW") is between city of Portola "Customer") and CivicPlus, LLC and shall be subject to the terms and conditions of the original services agreement signed by Customer and CivicPlus and each applicable statement of work signed by the parties for the services listed herein (collectively, referred to as the Agreement). The terms of this SOW shall control and supersede any conflicting terms of the Agreement with respect to the services listed herein (the Services"). 2. This SOW shall remain in effect for an initial term starting at the Customer's next renewal date of 2/26/2024 and running for twelve months ("Initial Term"). In the event that neither party gives 60 days' notice to terminate prior to the end of the Initial Term, or any subsequent Renewal Term, this SOW will automatically renew for additional 1-year renewal terms ("Renewal Term"). The Initial Term and all Renewal Terms are collectively referred to as the Term". 3. Unless terminated, Customer shall be invoiced for the Annual Recurring Services on each Renewal Date of each calendar year subject to an annual increase of 5% each Renewal Term. 4. Except as set forth in in this SOW, all terms in the Agreement shall remain in full force and effect and no modification thereto shall be valid unless in writing and agreed upon by CivicPlus and Customer. This SOW embodies the entire agreement between the Parties with respect to this Amendment. V.F PD 06.01.2015-0048 Page 1 of 2 Acceptance By signing below, the parties are agreeing to be bound by the covenants and obligations specified in this SOW. For CivicPlus Billing Information, please visit https/www.civicplus.comAverly. IN WITNESS WHEREOF, the parties have caused this SOW to be executed by their duly authorized representatives as of the dates below. Client CivicPlus By: By: aylbana Name: Name: Amy Vikander Title: Title: Senior Vice President of Customer Success Date: Date: V.F PD 06.01.2015-0048 Page 2 of 2 (916) 900-6619 nfo@getstreominecom STREAMLINE wwwgetstreominecom Streamline Platform - Subscription Agreement CUSTOMER: City of Portola ORDER DATE: 11/16/2023 This Software as a Service Agreement ("Agreement") is entered into on the start date listed below, between Streamline (DBA of Digital Deployment, Inc.) with a place of business at 3301 C St, Sacramento, CA 95816 ("Company"), and the Customer listed above ("Customer"). This Agreement incorporates the Streamline Terms of Service. W9 is available online. Most customers prefer annual billing for convenience, but all subscriptions are cancellable anytime with a written 30-day notice. DESCRIPTION OF SERVICES: See Page 2 for an overview of what Streamline Web includes, and for more information please review our. subscription-based website toolkit for local government. SUBSCRIPTION ORDER: Name Price Streamline Web $4,260.00 One-Time Migration Costs: $2500 Order #: 16092277518 Invoice Frequency: Annual Original Order? Original N/A 01/01/2024 Additional Billing Details: Billing Start Date: Billing Person: Phone: Billing Address: Email: City, State, Zip: Streamline: Customer: Name: Name: Title: Title: Date: Date: Signature: Signature: Page 1 of 3 (916) 900-6619 nfo@getstreominecom STREAMLINE wwwgetstreominecom What Your Subscription Includes Easy-to-use website tool allows you to control your content - no more waiting on a vendor or IT. Built-in ADA compliance (the platform is fully accessible out of the "box"). State-specific transparency dashboard with checkpoints for all posting requirements. Technology Meeting dashboard with agenda reminders, one-click agenda and minute upload that takes seconds. Ongoing improvements to existing features included at no cost - your software will never be out of date. Multiple options for initial site build and migrating existing content. Introduction to your state requirements SO you know what needs to be posted. Training for anyone on your staff via remote meeting to help you learn the system. Free domain included acmemud.specialdistrict.org) or connect your own custom Setup and domain. / web address. Training Free SSL security certificate SO that your site is served over https and visitors are protected. Unlimited support is included for anyone on your staff responsible for updating the 9 website. Support system is built into your website - get help with the click of a button. Unlimited hosting of content and files SO you never have to "upgrade" your account. Ongoing Extensive knowledge base of how-to articles and getting started guides are available Support 24/7. Can't figure out how to send your question? That's ok, you'll have our technical support number, too. And if (when) your state passes additional website mandates, Streamline Web will be updated to help you comply as effortlessly as possible. Page 2 of 3 (916) 900-6619 nfo@getstreominecom STREAMLINE wwwgetstreominecom Your Onboarding Process 4 simple steps to get your team up and running KICK OFF LEARN BUILD GO LIVE! Schedule your Kick Complete your Build / migrate site Schedule your a Off call & meet Getting Started content (we can Go Live call and your Customer training assist you!) launch your new Success team web site! Streamline Migration Options Core Classic Complete+ Description Baseline option, perfect for This onboarding includes site For customers looking to customers with no existing migration of up to 199 migrate anything over 200 pages website or a site with less pages/documents and more than 50 pages/documents to collaboration on design migrate changes Pages/Docs <50 <200 200+ Web Design STR Best Practices STR Best Practices Custom Page 3 of 3 CITY COUNCIL AGENDA STAFF REPORT TO: Honorable Mayor and Members ofthe City Council FROM: Jon Kennedy, Interim City Manager MEETING: December 13, 2023 SUBJECT: Community Engagement Position BACKGROUND The City has historically maintained a Community Service / Code Enforcement Officer position, but recently eliminated this position for budget reasons. In 2021 the City decided to contract out for these services with CSG. Councilmembers Murphy and Turner met with Interim City Manager, Jon Kennedy and Finance Officer, Susan Scarlett to discuss needs going forward. It was recommended that a 32-hour internal position should be established, with more of an emphasis on community engagement, rather than law enforcement, but will still have "code enforcement" duties and authority. RECOMMENDATION To approve a new position for Community Engagement, develop a job description and advertise for the position.