Abandoned Vehicle Abatement Service Authority Agenda March 19th, 2025, at 1:00 pm 225 Park St, Lakeport, CA 95453 City Council Chambers (In Person or ZOOM) Committee Members Chairperson - Vacant Vice Chair/Secretary- Vacant Jessica Hooten, Clearlake City Council Bruno Sabatier, Lake County Supervisor Dan Fansler, CHP Eddie Crandell, Lake County Supervisor Christina Price / Kenny Parlet, Lakeport City Council Join Zoom Meeting Topic: AVA Quarterly Meeting Time: Mar 19, 2025 01:00 PM Pacific Time (US and Canada) Join Zoom Meeting w/wabs.wNAMOPwsOANwcINAaapOongN1 Meeting ID: 5 1750 429 Passcode: 509620 One tap mobile +16694449171,83917500429H.m *509620# US +12532158782,83917500429H. *509620# US (Tacoma) Dial by your location 444 9171 US + 782 US (Tacoma) +1 346 48 7799 US (Houston) - 59 4580 US +1 699 US (Denver) 0468 US / 2000 US . +1 646 8656 US (New York) o 1 646 1 3860 US . - /8 0UU US +1 301 - - 5 592 US (Washington DC) a 1 4 1968 US - US +1 31 5799 US (Chicago) 09 623 US +. 1 4/ 5053 US +1 484 47 US Meeting ID: 839 1750 0429 Passcode: 509620 Find your local number: htps/us6webzoom.us//k.0OaOPVA Topic: AVA Project Meeting Time: 1:00 Agenda Items: 1. Call to Order 2. Roll Call a. AVA Member, Bruno Sabatier to perform roll call in place of vacant AVA Chair and AVA Vice-Chair 3. Introductions a. Brief Introductions b. Welcome new AVA Board Members C. Formal recognition and/or acknowledgment of New AVA Board Members and the jurisdiction or entity representing on behalf of. d. Appointment of AVA Chair Persona and AVA Vice-Chair Person 4. Review of Minutes = of September 18, 2024 meeting: a. Attachment A - Review andlor discussion of Minutes b. Approval of minutes - Motion to Vote by AVA Committee members? 5. Quarterly Reports - County, City of Lakeport, and City of Clearlake: (1st Quarter July, August, September and 2nd Quarter October, November, December) a. Attachment B - Reports of the Cities and County Annual Fiscal Reports 6. Fiscal Update: (1st Quarter July, August, September and 2nd Quarter October, November, December) a. Attachment C - Disbursements to County, City of Lakeport, and City of Clearlake (CDD Accountant) b. Attachment C - Balance of 7% Administration Fee for future audits (CDD Accountant) 7. Update = Consideration of CLA contractagreement for next AVA audit for fiscal year 23/242023, and 2024: a. Update - Ability to include AVA audit with the County wide audit. b. Presentation by Shannon Walker-Smith - Attachment D - quote received from the auditor firm CLA. C. Motion to vote by AVA committee members? 8. Discussion to raise 7% administration fee to set aside sufficient funds to cover audit costs for fiscal years 2023, 2024: a. Item was tabled from the September 18th, 2024, AVA meeting. b. Attachment E = Projection Costs C. Motion to vote by AVA Committee members? 9. Discussion to raise the 7% administration fee rate to cover future audit costs: a. Item was tabled from the September 18th, 2024, AVA meeting. b. Attachment E Projection Costs C. Motion to vote by AVA Committee members? 10. Public Input - (No more than three (3) minutes per speaker) 11. Consideration of Agenda Items for next meeting. 12. Calendar meetings schedule: a. Next meeting - Need to set schedule based on LAFCO schedule 13.Adiournment: Exhibit A Abandoned Vehicle Abatement Service Authority - September 18, 2024, Minutes ABANDONED VEHICLE ABATEMENT SERVICE AUTHORITY September 18, 2024 MINUTES COMMITTEE MEMBERS: P MOKE SIMON (CHAIR) - LC SUPERVISOR P RUSS PERDOCK (VCHAIRISEC)- CLK CITY COUNCIL P MICHAEL FROIO - LP CITY COUNCIL P BRUNO SABATIER = LC SUPERVISOR A DAN FANSLER = CALIFORNIA HIGHWAY PATROL AVA Project Meeting 1. Call to Order: 1:05pm 2. Roll Call: Committee Member Dan Fansler not in attendance. 3. Introductions: Ryan Peterson (CPD Lieutenant), Marcus Beltramo (LC Code Enforcement Manager), Steve Felder (CL Senior Code Enforcement officer), Lee Lambert (CL Code Enforcement Supervisor), Janet Garcia Mora (LC Code Enforcement Technician), Daniel Espinoza (CDD. Accounting Technician), Bethany Moss (LP Chief Building Official). 4. Action on Minutes from July 17, 2024: Comm. Mbr. Perdock moved, 2nd by Comm. Mbr. Froio to approve the minutes from July 17, 2024. All were in favor. 5. Quarterly Reports = County, City of Lakeport and City of Clearlake: a. Attachment B = Reports of the Cities and County Reports reviewed as submitted for agenda. pg. 1 Abandoned Vehicle Abatement Service Authority - September 18, 2024, Minutes b. Attachment C = Statistical information of geographical address information of Registered Owners. No further input. 6. Fiscal Update: a. Attachment D = disbursements to County, City of Lakeport and City of Clearlake (CDD Accountant). Daniel Espinoza read the AVA disbursements as attached. b. Attachment E = Balance of 7% Administration Fee for future audits (CDD Accountant). No further input. 7. Update = procuring auditors/request for proposal for next AVA audit for fiscal years ending June 30, 2023 and 2024: Committee member Sabatier received no response from the auditor. Committee member Sabatier suggested Clearlake or Lakeport to do the audit. No results, No resolution. 8. Discussion to raise 7% Administration Fee to set aside sufficient funds to cover audit costs for fiscal years 2023 & 2024 (Item tabled on January 17, 2024, AVA Meeting: 7% administration fee for future audits will not change. All in favor, motion passes. 9. Discussion to raise the 7% administration fee rate to cover future audit costs: 7% administration fee for future audit will not change. 10. Consideration of agenda items from September 17, 2024 meeting: The AVA Board discussed creating a letter to the State for AVA funding/different distribution model. Adding a disposal fee when buying mattress, car, fridge etc. 11. Update Abandoned Boat Program (Water Resources): pg. 2 Abandoned Vehicle Abatement Service Authority - September 18, 2024, Minutes Water Resources not present. Vehicle is still in Borax Lake. Per the City of Clearlake, Water Resources wants the city to remove the vehicle and will then reimbursed the City of Clearlake. The City of Clearlake is hesitant since no cap amount was provided by Water Resources. Committee member Sabatier will reach out to Water Resources to ensure they moved forward and work with the City of Clearlake to get the car out of Borax Lake. 12.! Presentation and consideration of AVA Board Members: Relook at contracts for local Law Enforcement on rotational tows. 13.Public Input: No public input. 14.Consideration of Agenda Items: a. Increase funding for AVA b. Letter to State for funding/different distribution model. 15. Calendar meetings Schedule: To be determined. ADJOURNED: 1:54 PM Respectfully submitted, Janet Garcia Mora Code Enforcement Technician pg.3 Abandoned Vehicle Abatement Service Authority - September 18, 2024, Minutes pg. 4 Exhibit B OF COUNTY OF LAKE 8 a COMMUNITY DEVELOPMENT DEPARTMENT Code Enforcement Courthouse 255 N. Forbes Street Lakeport, California 95453 OF CAVFO Telephone 707/263-2309 FAX 707/263-2225 A.V.A. QUARTERLY STATS Billing Date: 10/1/2024 Billing Period: 1st Quarter Fiscal Year 24/25 A.V.A. QUARTERLY STATISTICS July 2024 Vehicles Tagged: 20 Vehicles GOA: 7 Vehicles County Abated: 13 Dismantled: 13 August 2024 Vehicles Tagged: 11 Vehicles GOA: 5 Vehicles County Abated: 6 Dismantled: 6 September 2024 Vehicles Tagged: 10 Vehicles GOA: 4 Vehicles County Abated: 6 Dismantled: 6 A.V.A. INVOICE Description Qty Cost Per Total Total Vehicles GOA: 16 $ 182.90(admin costs) $2,926.40 Total Vehicles Abated: 25 $ 182.90 (admin costs) $4,572.50 $ 150.00(tow costs) $3,750.00 Total Vehicles Dismantled 25 Total Reimbursements 1 $0 Total Invoiced $11,248.90 CLEARLAKE POLICE DEPARTMENT POLICE 14050 Olympic Drive, Clearlake, CA 95422 Timothy Hobbs Chief of Police PIXTME CA A.V.A. QUARTERLY STATS Date: 10/14/24 BILLING PERIOD: 1St Quarter Fiscal Year 24/25 July Vehicles Tagged: 18 Vehicles GOA: 13 Vehicles City Abated: 9 Reimbursed: 0 Dismantled: 9 August Vehicles Tagged: 11 Vehicles GOA: 12 Vehicles City Abated: 4 Reimbursed: 0 Dismantled: 4 September Vehicles Tagged: 11 Vehicles GOA: 13 Vehicles City Abated: 7 Reimbursed: 0 Dismantled: 7 Description Oty Cost! Per Total Total Vehicles GOA 38 $198.97 $7,560.86 Total Vehicles City Abated 20 tow cost per +$198.97 $12,110.86 Total Vehicles Dismantled 20 Included in Abatement Fee $0 Total Reimbursements 0 -$0 TOTALINVOICED: $19,671.72 Lee Lambert Supervisor Code Enforcement Bureau CLEARLAKE POLICE 6 707) 994 8251 e 707) 994-8918 e clearlakepd.org f clearlakepolice D @clearlakepd CLEARLAKE POLICE DEPARTMENT POLICE 14050 Olympic Drive, Clearlake, CA 95422 Timothy Hobbs Chief of Police CA Lake County Community Development A.V.A. BILLING INVOICE Attn: Shannon Walker 255 N Forbes St. Billing Date: 10/14/24 Lakeport, CA 95453 Billing Period: 1st Quarter Fiscal Year 24/25 (1) Total expenditures by the City ofClearlake: $19.671.72 (2) Total number ofvehicles abated: 58 (3) Average cost per abatement: $339.17 (4) Any additional and / or unexpended fee revenues: $0 (5) Number of notices to abate issued vehicles: 36 (6) Number of vehicles disposed of pursuant to an ordinance adopted pursuant to VC section 22710: 20 (7) Total expenditures by the City ofClearlake for towing and storage of abandoned vehicles: $4.550.00 Lee Lambert Supervisor Code Enforcement Bureau lamher@cearlakeplorg CLEARLAKE POLICE & 707) 994-8251 e 707) 994-8918 e clearlakepd.org f clearlakepolice a @clearlakepd City of Lakeport 225 PARK STREET - LAKEPORT CA 95453 Community Development Department Fiscal Year 2024-2025: First Quarter Reporting Period: July 1, 2024 = September 30, 2024 Abandoned Vehicle Abatement (AVA) This report outlines the abandoned vehicle statistics for the first quarter, including costs related to vehicles tagged, towed, gone on arrival and total invoicing. Quarterly Summary and Related Costs Category Quantity Cost Per Unit Total Cost Vehicles Tagged 7 $155.00 $1,085.00 Vehicles Gone on Arrival (GOA) 5 $77.50 $387.50 Vehicles City Abated 0 N/A N/A Vehicles Dismantled N/A N/A TOTAL INVOICED: $1,472.50 Cost Calculation - Staff time of Building Official, Building inspector and Police Officers to gain voluntary compliance by vehicle owners. Burden rate for Building Official is $155.00/hour. The GOA' S are invoiced at .5 hours, at $77.50. 225 PARK STREET, LAKEPORT CA 95453 PLIC NI: 707.263.5615 X 215 BMAIL: BMOSS@CTTYOFLAKEPORTCOM CLEARLAKE POLICE DEPARTMENT POLI IC 14050 Olympic Drive, Clearlake, CA 95422 Timothy Hobbs Chief of Police 9 CA Lake County Community Development A.V.A. BILLING INVOICE Attn: Shannon Walker-Smith 255 N Forbes St. Billing Date: 01/29/25 Lakeport, CA 95453 Billing Period: 2nd Quarter Fiscal Year 24/25 (1) Total expenditures by the City ofClearlake: $38.001.12 (2) Total number ofvehicles abated: 96 (3) Average cost per abatement: $395.85 (4) Any additional and / or unexpended fee revenues: $0 (5) Number of notices to abate issued vehicles: 100 (6) Number of vehicles disposed of pursuant to an ordinance adopted pursuant to VC section 22710: 32 (7) Total expenditures by the City ofClearlake for towing and storage of abandoned vehicles: $18.900.00 Lee Lambert Supervisor Code Enforcement Bureau lamberctearakepdorg CLEARLAKE POLICE C (707) 994-8251 e (707) 994-8918 e clearlakepd.org Ef clearlakepolice 9 @clearlakepd CLEARLAKE POLICE DEPARTMENT POLICE 14050 Olympic Drive, Clearlake, CA 95422 Timothy Hobbs Chief of Police DEUTHEN CA A.V.A. QUARTERLY STATS Date: 01/29/25 BILLING PERIOD: 2nd Quarter Fiscal Year 24/25 October Vehicles Tagged: 33 Vehicles GOA: 15 Vehicles City Abated: 4 Reimbursed: 0 Dismantled: 4 November Vehicles Tagged: 34 Vehicles GOA: 19 Vehicles City Abated: 20 Reimbursed: 0 Dismantled: 20 December Vehicles Tagged: 55 Vehicles GOA: 30 Vehicles City Abated: 8 Reimbursed: 0 Dismantled: 8 Description Oty Cost Per Total Total Vehicles GOA 64 $198.97 $12,734.08 Total Vehicles City Abated 32 tow cost per+$198.97 $25,267.04 Total Vehicles Dismantled 32 Included in Abatement Fee $0 Total Reimbursements 0 -$0 TOTALINVOICED: $38,001.12 Lee Lambert Supervisor Code Enforcement Bureau CLEARLAKE POLICE & (707) 994-8251 e (707) 994-8918 e clearlakepd.org fi clearlakepolice a @clearlakepd City of Lakeport 225 PARK STREET - LAKEPORT CA 95453 Community Development Department Fiscal Year 2024-2025: Second Quarter Reporting Period: October 1, 2024 = December 31, 2024 Abandoned Vehicle Abatement (AVA) This report outlines the abandoned vehicle statistics for the second quarter, including costs related to vehicles tagged, towed, gone on arrival and total invoicing. Quarterly Summary and Related Costs Category Quantity Cost Per Unit Total Cost Vehicles Tagged 5 $155.00 $775.00 Vehicles Gone on Arrival (GOA) 5 $77.50 $387.50 Vehicles City Abated N/A N/A Vehicles Dismantled N/A N/A TOTAL INVOICED: $1,162.50 Cost Calculation - Staff time of Building Official, Building nspector and Police Officers to gain voluntary compliance by vehicle owners Burden rate for Building Official is $155.00/hour. The GOA's are invoiced at .5 hours, at $77.50. 225 PARK STREET, LAKEPORT CA 95453 PLIC )NI: 707.263.5615 X: 215 EMAIL. BMOSS@CITYOFLAKEPORTCOM OF COUNTY OF LAKE AA a COMMUNITY DEVELOPMENT DEPARTMENT Code Enforcement Courthouse 255 N. Forbes Street Lakeport, California 95453 OF CALF Telephone 707/263-2309 FAX 707/263-2225 A.V.A. QUARTERLY STATS Billing Date: 01/01/2025 Billing Period: 2nd Quarter Fiscal Year 24/25 A.V.A. QUARTERLY STATISTICS October 2024 Vehicles Tagged: 9 Vehicles GOA: 7 Vehicles County Abated: 2 Dismantled: 2 November 2024 Vehicles Tagged: 7 Vehicles GOA:5 Vehicles County Abated: 2 Dismantled: 2 December 2024 Vehicles Tagged: 17 Vehicles GOA: 14 Vehicles County Abated: 3 Dismantled: 3 A.V.A. INVOICE Description Qty Cost Per Total Total Vehicles GOA: 26 $ 182.90(admin costs) $4,755.40 Total Vehicles Abated: 7 $ 182.90 (admin costs) $1,280.30 $. 150.00(tow costs) $1,050.00 Total Vehicles Dismantled 7 Total Reimbursements 0 $0 Total Invoiced $7,085.7 Exhibit C AVA Disbursements FY 24/25 (1st Quarter) Funds Received from State $ 21,204.58 Interest Earned 23/24 QTR 4 & 24/25 QTR 1 $ 263.15 Total Distribution Amount $ 21,467.73 less 7% Admin Fee to County $ 1,484.32 Balance to Distribute $ 19,983.41 Lake County, California Population : 68,163 County Population: City ofL Lakeport City of Clearlake (*Based on. 2020 US Census Bureau data) 46,452 Population:5,026 Population: 16,685 1st Half Distribution Population $ 9,991.70 Population % County $ 6,809.18 46452 68% Lakeport $ 736.74 5026 7% Clearlake $ 2,445.78 16685 24% Total Population Distribution $ 9,991.70 68163 100% 2nd Half Distribution - Tows $ 9,991.71 # Abated % Countyl $ 3,939.04 41 39% Lakeport $ 480.37 5 5% Clearlake $ 5,572.30 58 56% Total Tow Distribution $ 9,991.71 104 100% 7% Admin Fee distributed to Countyl $ 1,484.32 Total Distributions $ 21,467.73 County Administration Fee $ 1,484.32 Lake County $ 10,748.22 City of Lakeport $ 1,217.11 City of Clearlake $ 8,018.08 Total Distributions $ 21,467.73 County Distribution Breakdown Population & Population & Tows Tows 7% fee County total $ 10,748.22 $ 1,484.32 $ 12,232.54 7% Adminstration Fee Breakdown 7% Distribution Balance Carry Balance Over Total Balance Audit FY22/23 & 23/24: $9,000.00 $ 884.46 $ 4,787.12 $ 5,671.58 Accountant $ 281.45 Code Tech & Code Program Supervisor $ 318.41 Total $ 1,484.32 AVA Disbursements FY 24/25 (2nd Quarter) Funds Received from State $19,064.73 Interest Earned - Not in Interest Account yet $ Total Distribution Amount $ 19,064.73 less 7% Admin Fee to County $ 1,334.53 Balance to Distribute $ 17,730.20 Lake County, California Population : 68,163 County Population: City oft Lakeport Cityof Clearlake (*Based on 2020 US Census Bureau data) 46,452 Population: 5,026 Population: 16,685 1st Half Distribution - Population $ 8,865.09 Population % County $ 6,041.42 46452 68% Lakeport $ 653.67 5026 7% Clearlake $ 2,170.00 16685 24% Total Population Distribution $ 8,865.09 68163 100% 2nd Half Distribution - Tows $ 8,865.11 # Abated % County $ 2,183.20 33 25% Lakeport $ 330.79 5 4% Clearlake $ 6,351.12 96 72% Total Tow Distribution $ 8,865.11 134 100% 7% Admin Fee distributed to Countyl $ 1,334.53 Total Distributions $ 19,064.73 County Administration Fee $ 1,334.53 Lake County $ 8,224.62 City of Lakeport $ 984.46 City of Clearlake $ 8,521.13 Total Distributions $ 19,064.73 County Distribution Breakdown Population & Population & Tows Tows 7%1 fee County total $ 8,224.62 $ 1,334.53 $ 9,559.15 7% Adminstration Fee Breakdown 7% Distribution Balance Carry Balance Over Total Balance Audit FY22/23 & 23/24: $9,000.00 $ 734.67 $ 5,671.58 $ 6,406.25 Accountant $ 281.45 Code Tech & Code Program Supervisor $ 318.41 Total $ 1,334.53 Exhibit D CliftonlarsonAllen LLP htps/Pwdaomestcom L/ December 19, 2024 Statement of Work - Audit Services This agreement constitutes a statement of work ("SOW") under the master service agreement ("MSA") dated May 2, 2023, or superseding MSA, made by and between CliftonlarsonAllen LLP ("CLA,"" "we," "us," and "our") and Lake. Abandoned Vehicle Abatement Service Authority ("'you," your," or the entity"). We are pleased to confirm our understanding of thet terms and objectives of our engagement and the nature and limitations of the services CLA will provide for the entity as of and for the two-year period ended June 30, 2024. Brianne Wiese is responsible for the performance of the audit engagement. Scope of audit services We will audit the cash basis financial statements ofi the governmental activities and general fund, which collectively comprise the basic Gnancial statements of Lake Abandoned Vehicle Abatement Service Authority, and the related notes to the financial statements as of and for the two year period ended June 30, 2024. Nonaudit services We will also provide the following nonaudit services: Preparation of your financial statements and the related notes. Audit objectives The objectives of our audit are to obtain reasonable assurance about whether thel basic 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 about whether your basic financial statements are fairly presented, in all material respects, in conformity with the cash basis of accounting (a special purpose framework), which is a basis of accounting other than accounting principles generally accepted in the United States of America (U.S. GAAP). 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 auditing standards generally accepted in the United States of America (U.S. GAAS) will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud OI error and 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. Our audit will be conducted in accordance with U.S. GAAS and the standards for financial audits contained Page 1 of9 in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require us to be independent of the entity and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. Our audit will include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinions. We will issue a written report upon completion of our audit of your financial statements. Circumstances: may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add an emphasis-of-matter: or other-matter paragraph to our auditors' report, or if necessary, withdraw from the engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If circumstances occur related to the condition of your records, the availability of sufficient, appropriate audit evidence, or the existence of a significant risk of material misstatement oft the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, which in our professional judgment prevent us from completing the audit or forming opinions on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express opinions or issue a report, or withdrawing from the engagement. We will also provide a report (which does not include an opinion) on internal control over financial reporting and on compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements, as required by Government Auditing Standards. The report on internal control over financial reporting and on compliance and other matters will include a paragraph that states (1) that thej purpose of the 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, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the entity is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit conducted in accordance with U.S. GAAS and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Auditor responsibilities, procedures, and limitations We will conduct our audit in accordance with U.S. GAAS and the standards for financial audits contained in Government Auditing Standards. Those standards require that we exercise professional judgment and maintain professional skepticism throughout the planning and pertormance of the audit. As part of our audit, we will: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and evaluate whether audit evidence obtained is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may: involve Page 2 of 9 collusion, forgery, intentional omissions, mistepresentations, or the override of internal control. . 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 thej purpose of expressing an opinion on the effectiveness ofthe entity's internal control. However, we will communicate to you in writing any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. 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, including the amounts and disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Conclude, based on our evaluation of audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. Although our audit planning has not been concluded and modifications may be made, we. have identified the following significant risk(s) of material misstatement as part of our audit planning: . Management override of controls is considered a fraud risk There is an unavoidable risk, because of the inherent limitations of an audit, together with the inherent limitations of internal control, that some material misstatements may: not be detected, even though the audit is properly planned and performed in accordance with U.S. GAAS and Government Auditing Standards. Because we will not perform a detailed examination of all transactions, material misstatements, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity, may not be detected. Because the determination of waste and abuse is subjective, Government. Auditing Standards do not require auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse. In addition, an audit is not designed to detect immaterial misstatements or violations ofl laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management and those charged with governance of any material errors, fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management and those charged with governance of any violations ofl laws or governmental regulations that come to our attention, unless clearly inconsequential. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting fraud or errors that are material to the financial statements and to preventing and detecting misstatements resulting from noncompliance with provisions of] laws, regulations, contracts, and grant agreements that have a material effect on the fimancial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will Page 3 of9 be expressed in our report on internal control issued pursuant to Government. Auditing Standards. An audit is not designed to provide assurance on internal control or to identify deficiencies, significant deficiencies, or material weaknesses in internal control. However, we will communicate to you in writing significant deficiencies or material weaknesses in internal control relevant to the audit ofthe financial statements that we identify during the audit that are required to be communicated under AICPA professional standards and Government. Auditing Standards. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the entity's compliance with the provisions of laws, regulations, contracts, and grant agreements that have a material effect on the financial statements. However, the objective of our audit will: not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. We will include in our report on internal control over financial reporting and on compliance relevant information about any identified or suspected instances of fraud and any identified or suspected noncompliance with provisions ofl laws, regulations, contracts, or grant agreements that may have occurred that are required to be communicated under Government Auditing Standards. Our responsibility as auditors is limited to thej period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Management responsibilities Our audit willl be conducted on the basis that you management and, when appropriate, those charged with governance) acknowledge and understand that you have certain responsibilities that are fundamental to the conduct of an audit. Management is responsible for the preparation and fair presentation of the financial statements in accordance with the cash basis of accounting. Managements responsibilities include the selection and application of accounting principles; recording and reflecting all transactions in the financial statements; determining the reasonableness of significant accounting estimates included in the financial statements; adjusting the financial statements to correct material misstatements; and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for including all informative disclosures that are appropriate for the cash basis of accounting. Those disclosures will include (a) a description of the cash basis of accounting, including a summary of significant accounting policies, and how the cash basis of accounting differs from U.S. GAAP; (b)informative disclosures similar to those required by U.S. GAAP; and (c) additional disclosures beyond those specifically required that may be necessary for the financial statements to achieve fair presentation. You are responsible for the design, implementation, and maintenance of effective internal control relevant to thej preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including evaluating and monitoring ongoing activities and safeguarding Page 4 of 9 assets to help ensure that appropriate goals and objectives are met. You are responsible for the design, implementation, and maintenance of internal controls to prevent and detect fraud; assessing the risk that the financial statements may be materially misstated as a result of fraud; and for informing us about all known or suspected fraud affecting the entity involving (1) management, (2) employees who have significant roles in internal control, and (3) others where thei fraud could have a material effect on the financial statements. Your responsibilities include informing us of your. knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for implementing systems designed to achieve compliance with applicable laws and regulations and the provisions of contracts and grant agreements; identifying and ensuring that the. entity complies with applicable laws, regulations, contracts, and grant agreements; and informing us of all instances of identified or suspected noncompliance whose effects on the financial statements should be considered. You are responsible for taking timely and appropriate steps to remedy any fraud and noncompliance with provisions oflaws, regulations, contracts, and grant agreements that we may report. You are responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, including amounts and disclosures, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters, and for the accuracy and completeness of that information (including information from within and outside of the general and subsidiary ledgers); (2) additional information that we may request for the purpose of the audit; and (3) unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence. You agree to inform us of events occurring or facts discovered subsequent to the date of the financial statements that may affect the financial statements. Management is responsible for providing us with a written confirmation concerning representations made by you and your staff to us in connection with the audit. During our engagement, we will request information and explanations from you regarding, among other matters, the entity's operations, internal control, future plans, specific transactions, and accounting systems and procedures. The procedures we will perform during our engagement and the conclusions we reach as a basis for our report will be heavily influenced by the representations that we receive in the representation letter and otherwise from you. Accordingly, inaccurate, incomplete, or false representations could cause us to expend unnecessary effort or could cause a material fraud or error to go undetected by our procedures. In view of the foregoing, you agree that we shall not be responsible for any misstatements in the entity's financial statements that we may fail to detect as a result of mistepresentations made to us by you. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies to us of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the "Audit objectives" section ofthis letter. This responsibilityi includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other engagements or studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, Page 5 of9 as well as your planned corrective actions for the report, and for thet timing and format for providing that information. Responsibilities and limitations related to nonaudit services For all nonaudit services we may provide to you, management agrees to assume all management responsibilities; oversee the services by designating an individual, preferably within senior management, who possesses suitable skill, knowledge, and/or experience to understand and oversee the services; evaluate the adequacy and results of the services; and accept responsibility for the results oft the services. Management is also responsible for ensuring that your data and records are complete and that you have received sufficient information to oversee the services. Use of financial statements Should you decide to include or incorporate by reference these fimancial statements and our auditors' report(s) thereon in a future private placement or other offering of equity or debt securities, you agree that we are under no obligation to re-issue our report or provide consent for the use of our report in such a registration or offering document. We will determine, at our sole discretion, whether we will re-issue our report or provide consent for the use of our report only after we have performed thej procedures we consider necessary: in the circumstances. Ifwe decide to re-issue our report or consent to the use of our report, we will be required to perform certain procedures including, but not limited to, (a) reading other information incorporated by reference in the registration statement or other offering document and (b) subsequent event procedures. These procedures will be considered an engagement separate and distinct from our audit engagement, and we will bill you separately. If we decide to re-issue our report or consent to the use of our report, you agree that we will be included on each distribution of draft offering materials and we will receive ac complete set of final documents. If we decide not to re-issue our report or decide to withhold our consent to the use of our report, you may be required to engage another firm to audit periods covered by our audit reports, and that firm will likely bill you for its services. While the successor auditor may request access to our workpapers for those periods, we are under no obligation to permit such access. If thej parties (i.e., you and CLA) agree that CLA will not be involved with your official statements related to municipal securities filings or other offering documents, we will require that any official statements or other offering documents issued by: you with which we are not involved clearly indicate that CLA is not involved with the contents of such documents. Such disclosure should read as follows: ChiftonlarsonAlen LLP, ouri independent auditor, has not been engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. CliftonlarsonAllen LLP also has not performed any procedures relating to this offering document. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website or submitted on a regulator website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in those sites or to consider the consistency of other information in the electronic site with the original document. We may issue preliminary draft financial statements to you for your review. Any preliminary draft financial Page 6 of9 statements should not be relied on or distributed. Engagement administration and other matters We understand that your employees will prepare all confirmations, account analyses, and audit schedules we request and will locate any documents or invoices selected by us for testing. A list of information we expect to need for our audit and the dates required will be provided in a separate communication. We will provide copies of our reports to the entity; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing confidential or sensitive information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the sole and exclusive property of CLA and constitutes confidential and proprietary information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to State Controller, or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of CLA personnel. Furthermore, upon request, we may provide copies or electronic versions of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of seven years after the report release date or for any additional period requested by the State Controller. Ifwe are aware that a federal or state awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Professional standards require us to be independent with respect to you in the performance of these services. Any discussion that you have with our personnel regarding potential employment with you could impair our independence with respect to this engagement. Therefore, we request that you inform us prior to any such discussions SO that we can implement appropriate safeguards to maintain our independence and objectivity. Further, any employment offers to any staff members working on this engagement without our prior knowledge may require substantial additional procedures to ensure our independence. You will be responsible for any additional costs incurred to perform these procedures. Our audit engagement ends on delivery of our signed report. Any additional services that might be requested will be a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific SOW for that service. Government Auditing Standards require that we make our most recent external peer review report publicly available. The report is posted on our website at www.CLAconnect.com/Aboutus/. Fees Our professional fee is $9,000.00. We will also bill for expenses (including travel, report production, word Page 7 of9 processing, postage, internal and administrative charges, etc.) plus a technology and client support fee of five percent (5%) of all professional fees billed, which are included in the above estimate. This estimate is based on anticipated cooperation from your. personnel and their assistance with locating requested documents and preparing requested schedules. If the requested items are not available on the dates required or are not accurate, the fees and expenses will likely be higher. Our invoices, including applicable state and local taxes, will be rendered as work progresses and are payable on presentation. Unexpected circumstances We will advise you if unexpected circumstances require significant additional procedures resulting in a substantial increase in the fee estimate. Changes in accounting and audit standards Standard setters and regulators continue to evaluate and modify standards. Such changes may result in new or revised financial reporting and disclosure requirements or expand the nature, timing, and scope of the activities we are required to perform. To the extent that the amount of time required to provide the services described in the SOW increases due to such changes, our fee may need to be adjusted. We will discuss such circumstances with you prior to performing the additional work. Agreement We appreciate the opportunity to provide the services described in this SOW: related to the MSA. All terms and provisions of the MSA shall apply to these services. Ifyou agree with thet terms of this SOW, please sign below to indicate your acknowledgement and understanding of, and agreement with, this SOW. Sincerely, CliftonlarsonAllen LLP Response: This letter correctly sets forth the understanding of Lake Abandoned Vehicle Abatement Service. Authority. Page 8 of 9 CLA Client CliftonlarsonAllen LLP Lake. Abandoned Vehicle Abatement Service Authority Brianne Wiese SIGN: Brianne Wiese, Principal SIGNED 12/20/2024, 11:02:02 AM PST Mireya Turner DATE: Page 9 of 9 Exhibit E Projection Cost FY24/25 Est.FY 25/26 POSITION Hourly: Rates Annual Gross POSITION Houry Rates Annual Gross Accountan: s 41.70 $ 86,730.00 Account Tech. s 41.70 86,730.00 CodeT Technician $ 39.35 $ 81,842,00 Code Technician $ 39.35 $ 81,842.00 Code Program Manager $ 62.67 5 130,350,00 CodeP Program Manager s 6257 $ 130,350.00 Stafft time warking on behalf oft thel Lake County AVA Authority Staff time working on behalf oft the Lake County AVAA Authortty FY2 24/25 FY: 25/26 Accountant Houn Cost Account Tech Hours Cast -fiscalv work 23s 959,03 fiscaly work 23s 959.03 -meeting attendance 4 S 166,79 meeting attendance 45 166.79 $ 1,125.82 $ 1,125.82 Code Technician Hours Cost Code Technician Hours Cost -meetings set up &r minutes 20s 786.94 meetings setu up &minutes 20 $ 786,94 -meetinga attendance 4 157.39 meetinga attendance 4s 157.39 gathering Authontysinvoices! &s stats 2s 78.69 gathering Authonty'si invoicest 2 $ 78.69 $ 1.023.03 $ 1,023.03 Code Program Manager Hours Coit Code Programt Manager Houts Cost aversight 4s 250,67 oversight 4 $ 250.57 S 250.67 $ 250.67 Estimate Summary Admin Cost for FY 24/25 Estimate Summary Admin Cost for FY 25/26 Accountant/Acct) Tech: HostA AdminCost2 26D2, 24/25 s 1,125.82 Accountant/Acct) Tech: HostA Admin Cost 2602,25/26 $ 1,125.82 CodeE Enforcement: HostA AdminCost2 2603,24/25 $ 1,273.70 Code Enforcement HGstA Admin Cost2 2603, 25/26 $ 1,273.70 Estimate Audito Cost Actual, FY 22/23-23/24 $ 9,000.00 Estimate Audito CostE Estimate, FY 24/25-25/26 $ 11,500.00 Totaic Cost s 11.399.52 TotalCost $ 13,899.52 Summary Retentioni for Cost 24/25 & 25/26 Administration Fees Received (73-1644) FY24/25 Administration FeesF Received/14.5 FY25/26 AmouitArtines FY22/23-23/24/ AuditF Fund 14.503 Anamthtane FY24/25-25/26 Audit Fund Cont Q1 $ 21,20458 1,484.32 $ 5,671.58 a1 S 20.000.00 2,900.00 $ 4,600.14 02 5 19,064.73 5 1,334,53 $ 6,406,25 02 $ 20,000.00 2,900.00 $ 6,900,28 16% 93 $ 20,134.00 S 3,193.61 $ 9,000.00 a3 S 20,000.00 2,900.00 $ 9,200,42 1495 FY24/25-25/26/ Audit Fund Q4 $ 20,134.00 $ 2,899.86 $ 2,300,00 q4 $ 20.000.00 5 2,900.00 $ 11,500.56 S 80,537.31 $ 8,912.32 80,000.00 > 11.600.00 Projected Admin Fee %Per) Year STARTING FY26/27 Prciectionf-Y Total 0.205A AdminFed *Assumes: an averaged disbursement of $20,000 per quarter B0,000.00 8,160.00 *Assumes n Audito Costo of$ $11,500 every twoy years Estimatedi TOTALA ADMIN COSTf for OneA Audit Cyde (2Y YEARS) Starting P26/27 Percentage Est, Amountt to be Distributed 10.20% AdminF Fee: 2-Yr Total Building & Safety, 109-2 2602 461-6650 13.81% $ 2,251.64. Code Enforcement, 001 2603-461-66.50 15.63% $ 2,547.40 AVAA Account (Audit), 656-0000-8 540-991 19 70.56% $ 11,500.00 100% $ 16,299.04 = $ 16,320.00 Audit Costi Information: 1. CurrentA Audit Cost: a, $9,000,00, per Clifton Larson Bid,1 12/19/2024 b,EstimatedA Admin Feel Increase Required: 16%f for QTR: 3,1 14%f for QTR4 40fFY24/25 2,ExpectedF FutureA Audit Cost Increases: a, AnticipatedA Audit Cost Increase for Fiscal Years 24/25 & 25/26: $11,500, based on originalbid 10% b,A AnticipatedA Admin Fee Increasef fork Fiscal Year: 25/261 in Order tol Initiate FY24/25 25/26. Audit: 14.5% RequestedD Details: 1. Budget Adjustment Proposal a. Increaset the Admin Feeb by 16%f for Quarter 3a and: 14%F for Quarter 4to covert thea audit costf fork Fiscal Years 2022/23 and: 2023/24. b. Increaset theA Adminf Feet toa atl least 14.50% far Q1 Q4 ofFY: 25/261 toc cover thez audit costf fork Fiscal Years 2024/25 andz 2025/26. GIV Wea anticipate the percentage increaset to drop tor nol lower than 10,20%1 for FV26/27 and onward. Purpose: The purpose oft thisn requesti is toe ensure adequatef fundingf for our audit, maintaining compliance, transparency: andt thec overall integrity ofc our Administration.