city of fort bragg

City Council

City of Fort Bragg

Meeting Agenda

416 N Franklin Street

Fort Bragg, CA 95437

Phone: (707) 961-2823

Fax: (707) 961-2802

THE FORT BRAGG CITY COUNCIL MEETS CONCURRENTLY AS

THE FORT BRAGG MUNICIPAL IMPROVEMENT DISTRICT NO. 1

AND THE FORT BRAGG REDEVELOPMENT SUCCESSOR

AGENCY

Town Hall, 363 N. Main Street6:00 PMMonday, December 9, 2019

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

AGENDA REVIEW

1. MAYOR’S RECOGNITIONS AND ANNOUNCEMENTS

1A. 19-533 Presentation of Proclamation to Ricardo Garcia for Providing Life-Saving

Actions

18-2019 Ricardo Garcia Commendation

18-2019 Ricardo Garcia Commendation Spanish

Attachments:

1B. 19-532 Receive Presentation from Mendocino Coast Humane Society Executive

Director Chuck Tourtillott

MCHS Presentation Summary 120919

MCHS_City Council Presentation 12-09-19

Attachments:

1C. 19-528 Presentation by Mendocino County Fifth District Supervisor Ted Williams

on the County's Proposed Transient Occupancy Tax (TOT) on

Campground and Recreational Vehicle Parks

2. PUBLIC COMMENTS ON: (1) NON-AGENDA, (2) CONSENT CALENDAR & (3)

CLOSED SESSION ITEMS

MANNER OF ADDRESSING THE CITY COUNCIL: Any member of the public desiring to address the City

Council may submit a Speaker Card to the City Clerk and proceed to the podium after being recognized by the

Presiding Officer. Speakers will be called up in the order the Speaker Cards are received. Those who have not

filled out a Speaker Card will be given an opportunity to speak after all those who have filled out Speaker Cards

have spoken. All remarks and questions shall be addressed to the City Council; no discussion or action will be

taken pursuant to the Brown Act. No person shall speak without being recognized by the Mayor or acting

Mayor. Written comments may be submitted to the City Clerk, 416 N. Franklin Street, Fort Bragg, CA 95437,

or emailed to [email protected].

City of Fort Bragg Printed on 12/4/2019

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December 9, 2019City Council Meeting Agenda

TIME ALLOTMENT FOR PUBLIC COMMENT ON NON-AGENDA ITEMS: Thirty (30) minutes shall be allotted

to receiving public comments. If necessary, the Mayor or acting Mayor may allot an additional 30 minutes to

public comments after Conduct of Business to allow those who have not yet spoken to do so. Any citizen, after

being recognized by the Mayor or acting Mayor, may speak on any topic that may be a proper subject for

discussion before the City Council for such period of time as the Mayor or acting Mayor may determine is

appropriate under the circumstances of the particular meeting, including number of persons wishing to speak or

the complexity of a particular topic. Time limitations shall be set without regard to a speaker’s point of view or

the content of the speech, as long as the speaker’s comments are not disruptive of the meeting.

BROWN ACT REQUIREMENTS: The Brown Act does not allow action or discussion on items not on the

agenda (subject to narrow exceptions). This will limit the Council's response to questions and requests made

during this comment period.

3. STAFF COMMENTS

4. MATTERS FROM COUNCILMEMBERS

5. CONSENT CALENDAR

All items under the Consent Calendar will be acted upon in one motion unless a Councilmember requests that

an individual item be taken up under Conduct of Business.

5A. 19-525 Adopt Resolution of the Fort Bragg City Council Amending the FY 2019-20

Budget (Amendment No. 2020-06) Approving the Use of $91,000.00 of

General Fund Fund Balance to Make a Prepayment to CalPERS Against

the City’s Unfunded Pension Liability ( Account 110-0000-0220)

RESO Unfunded Pension Liability PrepaymentAttachments:

5B. 19-529 Adopt by Title Only and Waive the Second Reading of Ordinance

955-2019 Repealing and Replacing Chapter 6.10 (Weed Abatement

Procedures) and Adding Chapter 6.11 (Integrated Pest Management) to

Title 6 (Health and Sanitation) of the Fort Bragg Municipal Code

ORD 955-2019Attachments:

5C. 19-487 Approve Maddy Act Notice Providing List of Appointed Terms Expiring in

2020

12092019 MADDY ACT NOTICEAttachments:

5D. 19-512 Receive and File Minutes of October 2, 2019 Finance and Administration

Committee Meeting

FACM20191002Attachments:

5E. 19-514 Receive and File Minutes of August 21, 2019 Public Safety Committee

Meeting

PSCM2019-08-21Attachments:

5F. 19-531 Receive and File Minutes of October 9, 2019 Public Works and Facilities

Committee Meeting



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PWM 10092019Attachments:

5G. 19-536 Approve Minutes of November 25, 2019

CCM2019-11-25Attachments:

6. DISCLOSURE OF EX PARTE COMMUNICATIONS ON AGENDA ITEMS

7. PUBLIC HEARING

When a Public Hearing has been underway for a period of 60 minutes, the Council must vote on whether to

continue with the hearing or to continue the hearing to another meeting.

8. CONDUCT OF BUSINESS

8A. 19-530 Receive Report and Consider Adoption of City Council Resolution

Approving Professional Services Agreement with R.E.Y. Engineers, Inc. to

Provide Design and Engineering Services for the 2020 Maple Street

Storm Drain and Alleys Rehab Project, City Project No. PWP-00116, and

Authorizing City Manager to Execute Contract (Amount Not to Exceed

$144,342.00; Account No.405-4870-0731)

12092019 2020 Maple Street Project Design

Att 1 - RESO 2020 Maple St Project Design

Attachments:

8B. 19-520 Receive Report and Recommendation from the Election Systems Review

Ad Hoc Committee

12092019 ERC Report

Public report - elections review - FINAL

Attachments:

8C. 19-523 Receive Presentation From JJACPA, Inc. and Finance Director Victor

Damiani on the Comprehensive Annual Financial Report (CAFR) for the

Year Ended June 30, 2019 for the City of Fort Bragg and Consider

Accepting the CAFR as Presented

2019-12-09 CAFR Staff Report

Att 1 - CAFR, Including Auditor's Report

Att 2 - FY18-19 CAFR PowerPoint Presentation

Att 3 - Communications Letter 2019

Att 4 - Representation Letter

Att 5 - Fort Bragg Single Audit Report 2019

Attachments:

8D. 19-527 Receive Report on Limited Term Permit and Consider Adoption of City

Council Resolution Approving a Short-term Bridge Loan to Mendocino

Coast Hospitality Center for Initial Opening and Operations of Winter

Shelter and Authorizing City Manager to Execute Loan Agreement and

Promissory Note


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12092019 Winter Shelter

Att. 1 - Resolution

Att. 2 - Shelter Loan Agreement

Att. 3 - Promissory Note

Att. 4 - Draft Limited Term Permit for Winter Shelter

Att. 5 - Services for Mendocino County & MCHC Funding Agreement

Attachments:

8E. 19-537 Receive Report and Consider Introducing by Title Only and Waiving the

First Reading of Ordinance No. 956-2019 Repealing and Replacing

Chapter 15.04 (Construction Codes - Adopted by Reference) and Chapter

15.05 (California Fire Code) of Title 15 (Buildings and Construction) of the

Fort Bragg Municipal Code

12092019 Construction Ordinance

Att. 1 - ORD #956 Update to 2019 CA Building Codes

Attachments:

8F. 19-539 Receive Report and Consider Adoption of City Council Resolution

Adopting Legislative Findings Supporting Amendments and Changes to

the California State Building Standards Code as Contained in the Fort

Bragg International Fire Code and California Fire Code, Chapter 15.05 of

the Fort Bragg Municipal Code; and Consider Introducing by Title Only and

Waiving the First Reading of Ordinance No. 957-2019 Repealing and

Replacing Chapter 15.06 (Automatic Fire Sprinkler and Alarm Systems) of

Title 15 (Buildings and Construction) of the Fort Bragg Municipal Code

12092019 Fire Sprinkler Ordinance and Resolution

Att. 1 - RESO Findings 2019 Sprinkler

Att. 2 - Ex. A to RESO

Att. 3 - ORD #957 Sprinkler Update to 2019 CA Code

Attachments:

9. CLOSED SESSION

ADJOURNMENT

The adjournment time for all Council meetings is no later than 10:00 p.m. If the Council is still in session at

10:00 p.m., the Council may continue the meeting upon majority vote.

NEXT REGULAR CITY COUNCIL MEETING:

6:00 P.M., MONDAY, JANUARY 13, 2020


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STATE OF CALIFORNIA )

)ss.

COUNTY OF MENDOCINO )

I declare, under penalty of perjury, that I am employed by the City of Fort Bragg and that I caused

this agenda to be posted in the City Hall notice case on December 4, 2019.

_______________________________________________

June Lemos, CMC

City Clerk

NOTICE TO THE PUBLIC:

DISTRIBUTION OF ADDITIONAL INFORMATION FOLLOWING AGENDA PACKET

DISTRIBUTION:

• Materials related to an item on this Agenda submitted to the Council/District/Agency after distribution of

the agenda packet are available for public inspection in the lobby of City Hall at 416 N. Franklin Street during

normal business hours.

• Such documents are also available on the City of Fort Bragg’s website at http://city.fortbragg.com subject

to staff’s ability to post the documents before the meeting.

ADA NOTICE AND HEARING IMPAIRED PROVISIONS:

It is the policy of the City of Fort Bragg to offer its public programs, services and meetings in a manner that is

readily accessible to everyone, including those with disabilities. Upon request, this agenda will be made

available in appropriate alternative formats to persons with disabilities.

If you need assistance to ensure your full participation, please contact the City Clerk at (707) 961-2823.

Notification 48 hours in advance of any need for assistance will enable the City to make reasonable

arrangements to ensure accessibility.

The Council Chamber is equipped with a Wireless Stereo Headphone unit for use by the hearing impaired. The

unit operates in conjunction with the Chamber’s sound system. You may request the Wireless Stereo

Headphone unit from the City Clerk for personal use during the Council meetings.

This notice is in compliance with the Americans with Disabilities Act (28 CFR, 35.102-35.104 ADA Title II).


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Text File

City of Fort Bragg 416 N Franklin Street


Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-533

Agenda Date: 12/9/2019 Status: Mayor's OfficeVersion: 1

File Type: ProclamationIn Control: City Council

Agenda Number: 1A.

Presentation of Proclamation to Ricardo Garcia for Providing Life-Saving Actions

Page 1 City of Fort Bragg Printed on 12/4/2019

P R O C L A M A T I O N

COMMENDING RICARDO GARCIA FOR

PROVIDING LIFE-SAVING ACTIONS

WHEREAS, late in the evening of November 23, 2019, local citizen Ricardo Garcia made a startling discovery that a home on Redwood Avenue was on fire; and

WHEREAS, thinking quickly, Mr. Garcia immediately called 911 to report the fire; and

WHEREAS, seeing no movement coming from inside, Mr. Garcia proceeded to run into the smoky house to help those inside; and

WHEREAS, Mr. Garcia saw a little girl just 10 feet away from the flames and rescued her while assisting her siblings out of the burning building; and

WHEREAS, this family was able to escape due to the quick thinking of Mr. Garcia, a fellow parent and Fort Bragg resident; and

WHEREAS, thanks to the efforts of Ricardo Garcia, the police department, and fire department personnel, the family was safe and no one was badly hurt or injured; and

WHEREAS, if it were not for Ricardo Garcia’s quick action and bravery this family could have been lost to this tragedy.

NOW, THEREFORE, I, William V. Lee, Mayor of the City of Fort Bragg, on behalf of the entire City Council, do hereby commend Ricardo Garcia for providing immediate assistance and rescuing this family from the flames.

SIGNED this 9th day of December, 2019

WILLIAM V. LEE, Mayor

ATTEST:

June Lemos, CMC, City Clerk

No. 18-2019

P R O C L A M A C I Ó N

ENCOMENDANDO RICARDO GARCIA POR

SUMINISTRAR ACCIONES QUE SALVARON VIDAS

CONSIDERANDO que, por la tarde, el día 23 de noviembre de 2019 el ciudadano local Ricardo García hizo un descubrimiento sorprendente de que una casa en Redwood Avenue estaba en llamas; y

CONSIDERANDO, pensando rápidamente, el Sr. García llamó de inmediato al 911 para reportar el incendio; y

CONSIDERANDO, al no ver movimiento desde adentro, el Sr. García procedió a correr hacia la casa llena de humo para ayudar a los que estaban adentro; y

CONSIDERANDO, el Sr. García vio a una niña a solo 10 pies de distancia de las llamas y la rescató mientras ayudaba a sus hermanos a salir del edificio en llamas; y

CONSIDERANDO, esta familia pudo escapar debido al rápido pensamiento del Sr. García, un padreel mismo y residente de Fort Bragg; y

CONSIDERANDO, gracias a los esfuerzos de Ricardo García, el departamento de policía y el personal del departamento de bomberos, la familia estuvo a salvo y nadie resultó gravemente herido; y

CONSIDERANDO, si no fuera por la acción rápida y la valentía de Ricardo García, esta familia podría haberse perdido en esta tragedia.

AHORA, POR LO TANTO, yo, William V. Lee, alcalde de la ciudad de Fort Bragg, en nombre de todo el Concejo Municipal, felicito a Ricardo García por brindar asistencia inmediata y rescatar a esta familia de las llamas.

FIRMADO el 9 de diciembre de 2019

WILLIAM V. LEE, Mayor

DAR FE:


No. 18-2019

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-532


File Type:

Recognition/Announcements

In Control: City Council

Agenda Number: 1B.

Receive Presentation from Mendocino Coast Humane Society Executive Director Chuck

Tourtillott


Presentation Synopsis – December 9, 2019

The MCHS currently maintains a contract to provide animal care and sheltering services to the citizens of Fort Bragg. These services include

• Accepting and providing shelter and care for all cats and dogs impounded by FBPD.

• Accepting and providing shelter and care for stray cats and dogs found within city limits.

• Accepting and providing shelter and care for cats and dogs that are surrendered by Fort Bragg residents.

• Accepting and providing shelter and care for cats and dogs that are surrendered or found stray by Coastal County residents.

• We administer city dog licenses.

Presentation of shelter statistics for Fiscal 2018/2019

• Dog and Cat Intake• Animal Adoptions• Return to Owner Rates• Dog License Revenue• Spay/Neuter Surgeries

o New veterinarian hired November 2019

Questions and Discussion

Presentation to the Fort Bragg City Council

December 9, 2018

Chuck Tourtillott, Executive Director

We are a nonprofit 501c3 organization

OUR MISSIONis to contribute to a better life for

animals and to inspire public awareness of animal’s needs.

• For all dogs and cats impounded by FBPD.

•For dogs and cats that are surrendered or found stray by Fort Bragg residents.

• For dogs and cats that are surrendered or found stray by Coastal County residents.

•Issue dog licenses for Fort Bragg dog owners

•Operate an on-site veterinary clinic offering low cost spay/neuter services

Dog Intake

0

50

100

150

200

250

300

Fiscal14/15

Fiscal15/16

Fiscal16/17

Fiscal17/18

Fiscal18/19

FBPD

City Stray

City Owner

County Stray

County Owner

Out of County

Total

Cat Intake

0

50

100

150

200

250

300

350

Fiscal14/15

Fiscal15/16

Fiscal16/17

Fiscal17/18

Fiscal18/19

FBPD

City Stray

City Owner

County Stray

County Owner

Out of County

Total

ADOPTIONS

0

50

100

150

200

250

300

350

400

Fiscal 14/15 Fiscal 15/16 Fiscal 16/17 Fiscal 17/18 Fiscal 18/19

Dogs

Cats

total

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Fiscal 14/15,358

Fiscal 15/16,367

Fiscal 16/17,283

Fiscal 17/18,244

Fiscal 18/19,232

DOG LICENSING

0102030405060708090

100

Fiscal 14/15 Fiscal 15/16 Fiscal 16/17 Fiscal 17/18

Return To Owner

Dogs

Cats

0

100

200

300

400

500

600

700

800

900

Fiscal 14/15 Fiscal 15/16 Fiscal 16/17 Fiscal 17/18 Fiscal 18/19

Dogs

Cats

Total

SPAY/NEUTER

QUESTIONSand

DISCUSSION

The picture can't be displayed.

THANK YOU!Mendocino Coast Humane Society

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-528


File Type:

Recognition/Announcements

In Control: City Council

Agenda Number: 1C.

Presentation by Mendocino County Fifth District Supervisor Ted Williams on the County's

Proposed Transient Occupancy Tax (TOT) on Campground and Recreational Vehicle Parks


Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-525

Agenda Date: 12/9/2019 Status: Consent AgendaVersion: 1

File Type: ResolutionIn Control: City Council

Agenda Number: 5A.

Adopt Resolution of the Fort Bragg City Council Amending the FY 2019-20 Budget (Amendment

No. 2020-06) Approving the Use of $91,000.00 of General Fund Fund Balance to Make a

Prepayment to CalPERS Against the City’s Unfunded Pension Liability ( Account

110-0000-0220)

Per Fiscal Policy 9G, the City proposes making a prepayment against our pension unfunded

liability in the amount of $91,000. A budget amendment is required to do so.


- 1 -

RESOLUTION OF THE FORT BRAGG CITY COUNCIL AMENDING THE FY 2019-20 BUDGET (AMENDMENT NO. 2020-06) APPROVING THE USE OF

$91,000.00 OF GENERAL FUND FUND BALANCE TO MAKE A PREPAYMENT TO CalPERS AGAINST THE CITY’S UNFUNDED PENSION

LIABILITY (Account 110-0000-0220)

WHEREAS, on June 10, 2019, the Fort Bragg City Council and the Fort Bragg Municipal Improvement District No. 1 District Board adopted the Fiscal Year (FY) 2019/20 Budget; and

WHEREAS, the Fiscal Year (FY) 2019/20 Budget includes fiscal policy 9(g) requiring 50% of any realized year end surplus to be applied to the City’s unfunded liabilities; and

WHEREAS, as of June 30, 2019, the City’s general fund shows a realized year end surplus of $182,000.00; and

WHEREAS, based on all the evidence presented, the City Council finds as follows:

1. Prepayments made against unfunded liabilities will lower the unfunded liability and result in savings in the long term.

2. The proposed prepayment will be considered a one-time payment and will not be included in the calculation of the City’s operating deficit/surplus.

3. The proposed budget amendment is made in accordance with the City’s Fiscal Policy 9(g).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fort Bragg does hereby approve a Budget Amendment in the amount of $91,000.00 to make a prepayment to CalPERS against the City’s unfunded pension liability.

The above and foregoing Resolution was introduced by Councilmember __________, seconded by Councilmember ________, and passed and adopted at a regular meeting of the City Council of the City of Fort Bragg held on the 9th day ofDecember, 2019, by the following vote:

AYES:NOES:ABSENT:ABSTAIN:RECUSED:

WILLIAM V. LEEMayor

ATTEST:

June Lemos, CMCCity Clerk

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-529


File Type: OrdinanceIn Control: City Council

Agenda Number: 5B.

Adopt by Title Only and Waive the Second Reading of Ordinance 955-2019 Repealing and

Replacing Chapter 6.10 (Weed Abatement Procedures) and Adding Chapter 6.11 (Integrated

Pest Management) to Title 6 (Health and Sanitation) of the Fort Bragg Municipal Code

On December 9, 2019, the City Council of the City of Fort Bragg is to consider adoption of

Ordinance No. 955-2019, said ordinance having been introduced for first reading (by title only

and waiving further reading of the text) on November 25, 2019.

The proposed ordinance repeals and replaces Chapter 6.10 (Weed Abatement

Procedures) and adds Chapter 6.11 (Integrated Pest Management) to Title 6 (Health and

Sanitation) of the Fort Bragg Municipal Code. The proposed ordinance states that the City

and its contractors shall not use any pesticide containing chemicals prohibited by the City’s

adopted Integrated Pest Management Plan on or in any City owned, operated or

maintained property, building or facility.

If adopted, Ordinance No. 955-2019 will become effective January 8, 2020.


1

BEFORE THE CITY COUNCIL OF THE CITY OF FORT BRAGG

AN ORDINANCE REPEALING AND REPLACING CHAPTER 6.10 (WEED ABATEMENT PROCEDURES) AND ADDING CHAPTER 6.11 (INTEGRATED PEST MANAGEMENT) TO TITLE 6 (HEALTH AND SANITATION) OF THE FORT BRAGG MUNICIPAL CODE

ORDINANCE NO. 955-2019

The City Council of the City of Fort Bragg ordains as follows:

Section 1. Legislative Findings. The City Council hereby finds as follows:

1. It is in the public interest that the City regulate the application of pesticides on public property.

2. The adoption of this ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”), pursuant to Cal. Code of Regulations Article 19, Sections 15307 and 15308 for actions by regulatory agencies for the protection of natural resources and protection of the environment.

Section 2. Chapter 6.10 of Title 6 (Health and Sanitation) entitled WEED ABATEMENT PROCEDURES is hereby repealed in its entirety and replaced with the following:

CHAPTER 6.10WEED ABATEMENT PROCEDURES

6.10.010 WEED ABATEMENT PROCEDURES

A. For weeds and vegetation growing on private property, the City will utilize the Weed Abatement Procedures as set forth in Cal. Government Code §§ 39501 et seq. and Chapter 6.12, Nuisances.

B. For weeds and vegetation growing on City property, no pesticide containing a chemical identified as prohibited by the City’s Integrated Pest Management Plan list shall be used to abate or control weeds in the public right-of-way or on City property. All weed abatement on City property and in the public right-of-way shall be done in compliance with Chapter 6.11, Integrated Pest Management.

Section 3. Chapter 6.11 entitled INTEGRATED PEST MANAGEMENT is hereby added to Title 6 (Health and Sanitation) as follows:

2

CHAPTER 6.11INTEGRATED PEST MANAGEMENT

6.11.010 DEFINITIONS.

BEST MANAGEMENT PRACTICES or BMP means actions based on current science and technology that have been proven to be effective in the control and management of the site or pests to prevent or reduce the incidence of pest problems, with careful consideration given to protect public health and safety, wildlife and the environment.

CITY PROPERTY means property, rights of way, and easements that are owned by the City of Fort Bragg.

INTEGRATED PEST MANAGEMENT or IPM means a decision‐making and record‐keeping process for managing pests that uses monitoring to determine pest injury levels and combines biological, cultural, mechanical, physical, and chemical tools and other management practices to control pests in a safe, cost effective, and environmentally sound manner that contributes to the protection of public health and sustainability. This method uses extensive knowledge about pests, such as infestations, thresholds, life histories, environmental requirements, and natural enemies to complement and facilitate biological and other natural control of pests. The method involves the use of non‐chemical pest control methods and the careful use of least‐toxic chemical methods when non‐chemical methods have been exhausted or are not feasible.

PEST means any pest as defined in Section 12754.5 of Chapter 2 of Division 7 of the California Food and Agricultural Code. Pest includes any of the following that is or is liable to become, dangerous or detrimental to the public health or the agricultural or nonagricultural environment of the state:

(1) Any insect, predatory animal, rodent, nematode or weed;(2) Any form of terrestrial, aquatic, or aerial plant or animal, virus, fungus, bacteria or other microorganism (except viruses, fungi, bacteria or other microorganisms on or in living man or other living animals);(3) Anything that the Secretary of the California Department of Food and Agriculture or the Director of Pesticide Regulation for the California Department of Food and Agriculture by regulation declares to be a pest.

PEST CONTROL means the use of any substance, pesticide, method, or device to do any of the following:

(a) Control pests.(b) Prevent, destroy, repel, mitigate, or correct any pest infestation or disorder of plants.(c) Inhibit, regulate, stimulate, or otherwise alter plant growth by direct application to plants. (Enacted by Stats. 1967, Ch. 15.)

PESTICIDE means any substance, or mixture of substances, that is intended to be used for controlling, destroying, repelling, or mitigating any pest or organism, excluding antimicrobial pesticide(s) as defined by the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136(mm)).

6.11.020 PESTICIDE USE PROHIBITED.

3

A. The City Council shall adopt by Resolution an Integrated Pest Management Plan for use of pesticides on City property.

B. The City shall not use any pesticide containing a chemical prohibited by the City’s adopted Integrated Pest Management Plan on or in any City owned, operated or maintained property, building or facility except in accordance with the City's Pest Management Plan.

C. Exemption. A City department may apply for an exemption to the pesticide prohibition in the event that a pest outbreak poses an immediate threat to public health, will result in detriment to the environment or an environmentally sensitive habitat area or significant economic damage will result from failure to use a pesticide prohibited pursuant to Section 6.11.020, provided that all other options contained in the Integrated Pest Management Plan have been investigated and a compelling need to use the pesticide exists. The application for an exemption shall be filed with the Public Works Director.

This exemption shall not apply to the use of any pesticide for the purpose of improving or maintaining water quality for drinking water treatment, waste water treatment, and related water collection, distribution and treatment facilities.

6.11.030 BEST MANAGEMENT PRACTICES FOR PESTICIDES APPLICATION.

In approaching a pest management issue, the following steps shall be taken to ensure that any pesticide use as authorized by this Chapter is reduced to the maximum extent practicable.

A. Any employee or contractor hired to apply pesticides on City Property must have pesticide safety training prior to the use of any pesticide, regardless of toxicity. A record must be made of each employee applying pesticides, and evidence of training certified by the trainer/supervisor.

B. No pesticides or fertilizers shall be applied during irrigation or within 48 hours of predicted rainfall with greater than 50% probability as predicted by the National Oceanic and Atmospheric Administration (NOAA).

C. Pesticide Storage, Transportation and Disposal.1. Storage – Pesticides used by the City shall be stored in a manner consistent with

the label requirements of the products being used.2. Transportation – Pesticides shall be transported in a manner consistent with the

label requirements of the products being used. Containers shall be secured during transport in a manner that will prevent spillage into or out of the vehicle.

3. Empty Containers – Empty pesticide containers, other than bags, must be rinsed and drained into the spraying equipment on site by the applicator, at the time of use, using the triple rinse method. Rinse solution should be applied to the treated areas or otherwise safely disposed of.

4. Required Labels – All pesticide containers must be labeled with the following information:a) Name of pesticideb) Category of pesticide

4

c) EPA registration numberd) Active ingredient

5. Spills - Small spills of pesticides shall be cleaned up immediately with absorbent material. For major toxic pesticide spills, the Police Department must be contacted to request Emergency Response Personnel for spill clean-up. The location of the spill, what pesticide was spilt, the pesticide’s category, and its proximity to storm drains.

Section 4. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council of the City of Fort Bragg hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.

Section 5. Effective Date and Publication. This ordinance shall be and the same is hereby declared to be in full force and effect from and after thirty (30) days after the date of its passage. Within fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause a summary of said Ordinance to be published as provided in Government Code §36933, in a newspaper of general circulation published and circulated in the City of Fort Bragg, along with the names of the City Council voting for and against its passage.

The foregoing Ordinance was introduced by Councilmember Peters at a regular meeting of the City Council of the City of Fort Bragg held on November 25, 2019 and adopted at a regular meeting of the City of Fort Bragg held on December 9, 2019 by the following vote:


____________________________________William V. LeeMayor

ATTEST:

______________________________________June Lemos, CMCCity Clerk

PUBLISH: November 27, 2019 and December 19, 2019 (by summary).EFFECTIVE DATE: January 8, 2020.

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-487


File Type: Consent CalendarIn Control: City Council

Agenda Number: 5C.

Approve Maddy Act Notice Providing List of Appointed Terms Expiring in 2020

The City is required by Government Code Section 54972 to post a list of Commission,

Committee and Board openings for the upcoming year. The legislative body (City Council) needs

to approve the list and direct the City Clerk to post and publish it. Attached is the list showing the

vacancies for 2020.


CITY OF FORT BRAGG Incorporated August 5, 1889

416 N. Franklin Street Fort Bragg, CA 95437 Phone: (707) 961-2823

Fax: (707) 961-2802

PUBLIC NOTICE

NOTICE IS HEREBY GIVEN that the City of Fort Bragg encourages residents to apply for a position on City Boards, Commissions, and Committees that will have vacancies in 2020.

At the end of each year, the City publishes a list of expiring appointed terms for the coming year, names of incumbents, and the dates of appointments. Following is a list for 2020:

PLANNING COMMISSION Each member of the City Council may submit the name of a resident of the City as a nominee for a seat on the Planning Commission. The appointment is made by a vote of the full City Council. Each member of the Planning Commission must be a registered voter of the City at the time of his/her appointment and during his/her incumbency. Planning Commission members shall be seated for a term coinciding with that of the nominating Councilmember, provided, however, that the Commissioners serve at the will of the City Council. The Planning Commission’s functions are established in Fort Bragg Municipal Code Chapter 2.20.

NAME APPOINTED TERM ENDS

Jay Andreis 1/14/2019 12/9/2020

Nancy Rogers 1/9/2017 12/9/2020

NOYO HARBOR COMMISSION

The Fort Bragg City Council appoints two of the five members of the Noyo Harbor Commission, the County of Mendocino appoints two of the five members, and the Mendocino County Board of Supervisors and the City Council jointly appoint the Chairman. This Commission oversees operations of Noyo Harbor. Appointees to the Noyo Harbor Commission must reside within the Noyo Harbor District boundaries. Appointment to this Commission would be for a four-year term.

NAME APPOINTED TERM ENDS

William Forkner 10/24/2016 10/31/2020

Joe Caito, Chair 10/24/2016 10/31/2020

Persons interested in appointment to the above boards or commissions are urged to contact City Clerk June Lemos at (707) 961-1694 to obtain an application form.

Residents of the City of Fort Bragg and persons owning a business or commercial property in the City shall be given preference for appointment to advisory committees. The City Council will review applications and interview applicants for appointment to the Noyo Harbor Commission in October of 2020. The two incoming Councilmembers will put forth their nominees for Planning Commissioner at the first meeting in January 2021.

ADDITIONAL BOARDS AND COMMISSIONS In addition to those listed above, the following is a list of all boards, commissions, and committees whose members serve at the pleasure of the legislative body, and the necessary qualifications for each position:

Library Advisory Board – The City Council will consider appointees to the Library Advisory Board in October 2021. Applicants must show an interest in development of quality improvements in the local library branches by exposing the membership to changes and innovations in the library world. Residents of Fort Bragg are given preference.

Fort Bragg Fire Protection Authority – The Joint Powers Authority Agreement that created the Fort Bragg Fire Protection Authority in 1990 provides, in part, that one member of the five member board shall be appointed jointly by the Board of Directors for the Fort Bragg Rural Fire District and the City Council of the City of Fort Bragg. In March of 2021, the District Board and City Council shall consult with the Fort Bragg Volunteer Fire Department prior to selecting the jointly-appointed member. At its option, the Fort Bragg Volunteer Fire Department may submit one or more candidates for this position. The appointee must be a resident of the Fire Protection area. Appointment to this Board would be for a two-year term.

Dated: December 13, 2019 __________________________________________ June Lemos, CMC, City Clerk

Published: December 19, 2019 and December 26, 2019 STATE OF CALIFORNIA ) ) ss. COUNTY OF MENDOCINO ) I declare, under penalty of perjury, that I am employed by the City of Fort Bragg and that I caused this notice to be posted in the City Hall notice case on December 13, 2019 and delivered to the Mendocino County Public Library, 499 East Laurel Street, Fort Bragg, California. __________________________________________ June Lemos, CMC, City Clerk

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-512


File Type: Committee MinutesIn Control: City Council

Agenda Number: 5D.

Receive and File Minutes of October 2, 2019 Finance and Administration Committee Meeting




Phone: (707) 961-2823

Fax: (707) 961-2802

City of Fort Bragg

Meeting Minutes

Finance and Administration Committee

11:00 AM Town Hall, 363 N. Main StreetWednesday, October 2, 2019

MEETING CALLED TO ORDER

Chair Peters called the meeting to order at 11:04 AM

ROLL CALL

Staff Present: Finance Director Victor Damiani, Senior Government Accountant II Isaac

Whippy, Administrative Assistant Brenda Jourdain and Administrative Assistant Cristal

Muñoz.

Lindy Peters and Tess Albin-SmithPresent: 2 -

1. APPROVAL OF MINUTES

1A. 19-449 Approve Minutes of August 7, 2019

The minutes where approved by the Committee as presented and will be

forwarded for Council review.

2. PUBLIC COMMENTS ON NON-AGENDA ITEMS


3A. 19-446 Review Draft Water Shut-Off Policy in Preparation for SB 998

Implementation

The Committee reviewed the report prepared for this item. The committee report presented

by Finance Director Damiani who further explained the draft Water Shut-Off Policy in

preparation of SB 998 implementation. New implementations are discussed and a new

timeline is described. SB998 is well intended but may have the opposite effect might create a

hardship for residents in the long run.

Public Comment:

*None.

Discussion:

Finance Director Damiani expressed concern with regarding the implementation of SB 998

and offered assisting measures for customers.

Recommendation:

* There was consensus from committee to move forward to City Council on draft water shut-off

policy with water conservation efforts added.

* Spelling error on second graph on page 4, “April 4th monthly”

Page 1City of Fort Bragg Printed on 10/23/2019



October 2, 2019Finance and Administration

Committee

Meeting Minutes

3B. 19-378 Receive Oral Update from Staff on Departmental Activities

Department Update:

Government Accountant II Whippy reported on the following:

*Community Development Block Grant (CDBG) monitoring team on site auditing the grant

award of 2014. No discrepancies found.

*Auditors for City wide FY 2018, Comprehensive Annual Finance Report (CAFR) will be

brought to Council by December.

*US Bank awarded new City contract as of February 2020.

*JJACPA Audit for auditing of Citywide books for FY 2018/19 concluded on Friday.

*Transient Occupancy Tax (TOT) audit was concluded last Friday. Findings will be done by the

end of October.

*Wells Fargo to eliminate printing of their bills. New utility billing to begin in-house.

*Interactive Voice Response (IVR): The Pay-Over-the-Phone process has been implemented.

4. MATTERS FROM COMMITTEE / STAFF

* Committee Member inquired if the MuniServices TOT Audit findings payed for the consultant

services.

ADJOURNMENT

Chair Peters adjourned the meeting at 11:46 AM.



Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-514



Agenda Number: 5E.

Receive and File Minutes of August 21, 2019 Public Safety Committee Meeting




Phone: (707) 961-2823

Fax: (707) 961-2802

City of Fort Bragg

Meeting Minutes

Public Safety Committee

10:00 AM Town Hall, 363 N. Main StreetWednesday, August 21, 2019


Committee Chair Peters opened the Meeting at 10:13a.m.

ROLL CALL

Bernie Norvell, Lindy Peters, Tabatha Miller, Fabian Lizarraga and Lesley BryantPresent: 5 -

Tom Varga and Steve OrsiAbsent: 2 -


19-394 Approve Minutes of July 17, 2019 Public Safety Committee Meeting

A motion was made by Committee Member Norvell, seconded by Chair Peters

that the Minutes of July 17, 2019 Meeting be approved. The motion was carried

by unanimous vote.


None


3A. 19-392 Receive Oral Update from Staff on Safeway and Alcohol Shoplifting Issues

Chief Lizarraga explained Executives from Safeway are visiting Fort Bragg during the week

commencing 16th September. Any future discussion would have imput from ABC, Probation,

DA's Office, and School District. Hopefully by pointing out the monetary loss to the store may

help with security.

3B. 19-393 Receive Oral Update from Staff on Gang Prevention Efforts

Chief Lizarraga pointed out there have been no major incidents lately. The Department is

continuing it's suppression efforts as well as efforts to reach out to the Hispanic community.

FBUSD is applying for a grant for a School Resource Officer.

Committee Chair Peters talked about the increase in vehicle vs pedestrian accidents.

Committee Member Norvell mentioned the crowd of transients at the mid way point of the trail,

and City Manager Miller mentioned transients sleeping there overnight.

Committee Chair Peters talked about the lights in the parking lot at the CV Starr Center are




August 21, 2019Public Safety Committee Meeting Minutes

not on in the early morning hours, which could prove a security issue. City Manager Miller

stated she will contact the CV Starr Center.


Chief Lizarraga announced there would two officers graduating the Police Academy on 22nd,

which would make the sworn officers fully staffed with the two on injury. The Community

Service Officer candidate is continuing through background which will fill all slots. An offer has

been made to a replacement Police Services Technician. With new staff comes new ideas

and new energy.

ADJOURNMENT

Chair Peters closed the Meeting at 10:37a.m.


Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-531



Agenda Number: 5F.

Receive and File Minutes of October 9, 2019 Public Works and Facilities Committee Meeting




Phone: (707) 961-2823

Fax: (707) 961-2802

City of Fort Bragg

Meeting Minutes

Public Works and Facilities Committee

3:00 PM Town Hall, 363 N. Main StreetWednesday, October 9, 2019


Chair Lee called the meeting to order at 3:00 PM.

ROLL CALL

Will Lee and Jessica Morsell-HayePresent: 2 -


1A. 19-441 Approve Minutes of September 11, 2019

A motion was made by Chair Lee, seconded by Committee Member

Morsell-Haye, that these Committee Minutes be approved for Council review. The

motion carried by a unanimous vote.


Public comment was received from Paul Clark.


3A. 19-454 Review the Potential Expansion of the Municipal Improvement District

Wastewater Facilities and City of Fort Bragg Water Facilities on the East

Side of the Fort Bragg City Limits and Improvement District Boundary

Public Works Director Varga presented the staff report on this agenda item.

Public Comment was received from:

· Casey Phillips spoke in opposition to annexation.

· Paul Clark was in support of annexation with affordable housing.

· Jacob Patterson supported looking into annexation.

Discussion: The Committee Members agreed that further exploration and research needed to

be developed regarding annexation and recommended that this matter return to Committee in

the next month or two prior to being discussed by the full Council.

This Staff Report was referred to staff.

3B. 19-099 Receive Oral Update from Staff on Departmental Activities

Public Works Director Varga gave updates on the 2019 Street Rehabilitation Project, storm

drain pumps, Guest House Clock, CalTrans permit for Welcome to Fort Bragg sign at





October 9, 2019Public Works and Facilities

Committee

Meeting Minutes

Simpson Lane roundabout, and PG&E power shutoff impacts.


ADJOURNMENT

Chair Lee adjourned the meeting at 4:28 PM.


Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-536


File Type: MinutesIn Control: City Council

Agenda Number: 5G.

Approve Minutes of November 25, 2019




Phone: (707) 961-2823

Fax: (707) 961-2802

City of Fort Bragg

Meeting Minutes

City Council

THE FORT BRAGG CITY COUNCIL MEETS CONCURRENTLY AS

THE FORT BRAGG MUNICIPAL IMPROVEMENT DISTRICT NO. 1

AND THE FORT BRAGG REDEVELOPMENT SUCCESSOR

AGENCY

6:00 PM Town Hall, 363 N. Main StreetMonday, November 25, 2019

CALL TO ORDER

Mayor Lee called the meeting to order at 6:00 PM.

PLEDGE OF ALLEGIANCE

ROLL CALL

Mayor Will Lee, Vice Mayor Bernie Norvell, Councilmember Tess Albin-Smith and

Councilmember Lindy Peters

Present: 4 -

Councilmember Jessica Morsell-HayeAbsent: 1 -

AGENDA REVIEW

Mayor Lee noted that Item 1B, the Mendocino Coast Humane Society presentation, would be

moved to the next meeting of City Council on December 9, 2019. The Mayor announced that

Paula Cohen would give a short presentation to the Council on the 2020 Census under Item 1.

1. MAYOR’S RECOGNITIONS AND ANNOUNCEMENTS

1A. 19-452 Introduction of New Employees: Sandy Arellano, Public Works

Administrative Analyst; Rory Beak, Community Services Officer; Laura

Godinez, Police Services Technician; Jacqueline Jimenez, Community

Services Officer; Colin McHugh, Community Services Officer; Cristal

Munoz, Administrative Assistant; and Tanner Smith, Police Officer

Chief Lizarraga, Public Works Director Varga, and City Manager Miller introduced their new

employees to the City Council. Mayor Lee extended a warm welcome to all the new City of

Fort Bragg employees.

1B. 19-510 Receive Presentation from Mendocino Coast Humane Society Executive

Director Chuck Tourtillott

Mayor Lee continued this presentation to December 9, 2019.

1C. 19-521 Presentation from Paula Cohen Regarding Census 2020

Paula Cohen gave a status update on the 2020 Census and the various ways in which people

can be counted - by mail, by phone and online.





November 25, 2019City Council Meeting Minutes

2. PUBLIC COMMENTS ON: (1) NON-AGENDA, (2) CONSENT CALENDAR & (3)

CLOSED SESSION ITEMS

(1) Non-Agenda Items:

· Annemarie Weibel commented on wireless telecommunications issues.

(2) Consent Calendar Items:

· None.

(3) Closed Session Items:

· Leslie Kashiwada urged the Council to talk to other cities who had purchased property with

toxic cleanup issues.

· Annemarie Weibel recommended that the Council work closely with Department of Toxic

Substances Control regarding the Mill Site property.

3. STAFF COMMENTS

City Manager Miller provided updates on PG&E activities related to storm weather.

Councilmember Peters received a pledge from Comcast for the purchase of a generator for

use by the City during power outages that would keep the internet running for first responders.

Miller noted that City Hall will be closed Thursday and Friday for the Thanksgiving holiday. She

reported on Public Safety Power Shutdown preparedness and a meeting with the County

regarding sales tax matters. Public Works Director Varga reported on a meeting regarding

wireless/telecom mapping and pending lawsuits.

4. MATTERS FROM COUNCILMEMBERS

Councilmember Peters spoke about the Visit Fort Bragg Committee and the Fire Protection

Authority meetings. Councilmember Albin-Smith reported on Climate Action Advisory

Committee and Economic Development Finance Corporation meetings. Mayor Lee thanked

school staff and the Police Department personnel for quick work ensuring that the scene was

safe after a threat at the high school campus. He mentioned a home fire that occurred

Saturday night on Redwood Avenue and that Mendocino Coast Children's Fund is setting up a

fund to donate monies to help the family get back on their feet. A local citizen who alerted first

responders and saved the residents from the burning house will be honored by the City

Council at the next meeting.

5. CONSENT CALENDAR

Approval of the Consent Calendar

A motion was made by Vice Mayor Norvell, seconded by Councilmember Peters,

to approve the Consent Calendar. The motion carried by the following vote:

Aye: Mayor Lee, Vice Mayor Norvell, Councilmember Albin-Smith and Councilmember

Peters

4 -

Absent: Councilmember Morsell-Haye1 -

5A. 19-509 Adopt by Title Only and Waive the Second Reading of Ordinance

954-2019 Establishing a Capacity Fee Deferral Program




This Ordinance was adopted on the Consent Calendar.

Enactment No: ORD 954-2019

5B. 19-451 Adopt City Council Resolution Accepting the Public Drainage Easement

from Dennis Miller and Barbara DeOca, as Required by Lot Line

Adjustment LLA 1-19, and Authorize City Manager to Execute Certificate of

Acceptance

This Resolution was adopted on the Consent Calendar.

Enactment No: RES 4211-2019

5C. 19-486 Authorize Cancellation of the December 23, 2019 Meeting

Cancellation of the December 23, 2019 Meeting was approved on the Consent

Calendar.

5D. 19-499 Receive and File Minutes of October 9, 2019 Public Works and Facilities

Committee Meeting

These Committee Minutes were received and filed on the Consent Calendar.

5E. 19-505 Approve Minutes of November 12, 2019

These Minutes were approved on the Consent Calendar.

6. DISCLOSURE OF EX PARTE COMMUNICATIONS ON AGENDA ITEMS

None.

7. PUBLIC HEARING

7A. 19-463 Open Public Hearing and Immediately Continue Public Hearing to Date,

Time and Place Certain - January 13, 2020 at 6:00 PM in Town Hall, 363

N. Main Street - to Consider Appeal of Planning Commission Decision by

Mitch Bramlitt Regarding Denial of Coastal Development Permit (CDP

9-18), Design Review Permit (DR 3-18) and Minor Subdivision (DIV 1-18)

for the Proposed AutoZone Retail Store at 1151 South Main Street (APN

008-440-58)

Mayor Lee opened the public hearing at 6:44 PM and immediately continued the

hearing to January 13, 2020 at 6:00 PM or as soon thereafter as the matter may be

heard.

This Public Hearing was continued to January 13, 2020 at 6PM or as soon

thereafter as the matter may be heard.

7B. 19-507 Receive Report, Conduct Public Hearing, and Consider Adopting a City

Council Resolution Authorizing the Execution of a Joint Exercise Powers

Agreement Relating to the California Municipal Finance Authority and









Approving the Issuance of Revenue Bonds by the Authority for the Purpose

of Financing or Refinancing the Acquisition, Construction and Improvement

of Certain Facilities for the Benefit of Fort Bragg South Street LP

Mayor Lee opened the public hearing at 6:44 PM.

City Manager Miller presented the staff report on this agenda item. Chris Dart of Danco spoke

about the progress of the applications for this project, noting that he hoped the project will start

in July of 2020.

Public Comment: None.

Mayor Lee closed the public hearing at 6:54 PM.

A motion was made by Councilmember Albin-Smith, seconded by

Councilmember Peters, that this Resolution be adopted. The motion carried by

the following vote:


Peters

4 -




8A. 19-518 Receive Report and Consider Adoption of City Council Resolution

Approving Professional Services Agreement with Creative Thinking, Inc.,

DBA The Idea Cooperative for Marketing Strategy Development and

Execution and Authorizing the City Manager to Execute Contract (Amount

Not to Exceed $99,000: Account No. 110.4321.0319)

City Manager Miller gave the staff report on this agenda item. Tom Kavanaugh, President of

The Idea Cooperative, presented a slide show on the company and the proposed scope of

work for the project.


· Mary Rose Koczorowski commented on the need for brochures about Fort Bragg being

available at San Francisco hotels. She stated that marketing firms need to understand

algorithms and tags.

· Robert Maki Ellis said that Idea Cooperative clients are all on the Highway 101 corridor and

he doesn't see how they can bring business up to Fort Bragg.

· Gabriel Quinn Maroney spoke about the Big Idea and city identity.

Discussion: After a brief discussion, the Council agreed to accept the recommendation of

Visit Fort Bragg Committee to contract with this company.

A motion was made by Councilmember Peters, seconded by Vice Mayor Norvell,

that this Resolution be adopted. The motion carried by the following vote:


Peters

4 -






8B. 19-479 Receive Report and Recommendation from Public Works and Facilities

Committee and Consider: (1) Adoption of City Council Resolution

Approving an Integrated Pest Management Plan; and (2) Introducing by

Title Only and Waiving the First Reading of Ordinance 955-2019 Repealing

and Replacing Chapter 6.10 (Weed Abatement Procedures) and Adding

Chapter 6.11 (Integrated Pest Management) to Title 6 (Health and

Sanitation) of the Fort Bragg Municipal Code

Engineering Technician O'Neal presented the staff report on this agenda item.


· Jenny Shattuck urged the Council to ban pesticides of any kind on the Guest House lawn and

gardens.

·Mary Rose Koczorowski asked Council to look at various ecosystems and prepare an

analysis for all properties affected by pesticides. She recommended engaging youth to work

on integrated pest management.

·Gabriel Quinn Maroney recommended hiring homeless people to mechanically remove

weeds and that the City be more creative in pest management methods.

Discussion: After deliberation, the Council agreed that the resolution should be amended to

contain language designating the Guest House property as a pesticide-free zone. Staff was

directed to research the herbicide Garlon and if not already included in the restricted

pesticides in Exhibit A, to add it to the list.


that this Resolution be adopted as amended. The motion carried by the following

vote:

Aye: Mayor Lee, Vice Mayor Norvell and Councilmember Peters3 -

No: Councilmember Albin-Smith1 -




that this Ordinance be introduced. The motion carried by the following vote:

Aye: Mayor Lee, Vice Mayor Norvell and Councilmember Peters3 -

No: Councilmember Albin-Smith1 -


8C. 19-450 Receive Report and Consider Adoption of City Council Resolution

Amending the FY 2019-20 Budget (Amendment No. 2020-03), Approving

the Use of $17,213.15 of Forfeited Construction and Demolition Incentive

Deposits (from Account No. 190-0000-0309) to Fund the Purchase of Nine

(9) New Dual-Purpose Trash Receptacles to Replace Existing Garbage Bins in the Central Business District, in Accordance with Municipal Code Chapter 15.34.130 (Use of Construction and Demolition Recycling Incentive)





Mayor Lee recessed the meeting at 8:23 PM; the meeting reconvened at 8:28 PM. Public Works Director Varga gave the staff report on this agenda item.


A motion was made by Vice Mayor Norvell, seconded by Councilmember

Albin-Smith, that this Resolution be adopted. The motion carried by the following

vote:


Peters

4 -



8D. 19-508 Receive Report and Consider Adoption of City Council Resolution

Updating the City's Compensation Plan and Confirming the Pay

Rates/Ranges for all City of Fort Bragg Established Classifications

City Manager Miller presented the staff report on this agenda item. She noted that the

resolution and compensation schedule have been changed to remove items 1, 3 and 4; items

2, 5 and 6 will remain.


Discussion: It was agreed that the resolution be amended to remove the 5th, 7th, 8th, 11th and

12th recital paragraphs.


that this Resolution be adopted as amended. The motion carried by the following

vote:


Peters

4 -



9. CLOSED SESSION

Mayor Lee recessed the meeting at 8:45 PM; the meeting reconvened to Closed

Session at 8:51 PM.

9A. 19-519 CONFERENCE WITH REAL PROPERTY NEGOTIATORS FOR

POSSIBLE ACQUISITION OF REAL PROPERTY, Pursuant to Government

Code Section §54956.8: Real Property: APN 018-430-22-00, 90 W

Redwood Ave., Fort Bragg, CA 95437; City Negotiator: Tabatha Miller,

City Manager; Negotiating Party: Dave Massengill, Environmental Affairs,

Georgia Pacific Corporation; Under Negotiation: Terms of Acquisition,

Price

Mayor Lee reconvened the meeting to Open Session at 9:04 PM and reported that

no reportable action was taken on the Closed Session item.





ADJOURNMENT

Mayor Lee adjourned the meeting at 9:04 PM.

________________________________

WILLIAM V. LEE, MAYOR

_______________________________


IMAGED (___________)


Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-530

Agenda Date: 12/9/2019 Status: BusinessVersion: 1

File Type: Staff ReportIn Control: City Council

Agenda Number: 8A.

Receive Report and Consider Adoption of City Council Resolution Approving Professional

Services Agreement with R.E.Y. Engineers, Inc. to Provide Design and Engineering Services for

the 2020 Maple Street Storm Drain and Alleys Rehab Project, City Project No. PWP-00116, and

Authorizing City Manager to Execute Contract (Amount Not to Exceed $144,342.00; Account

No.405-4870-0731)


AGENDA ITEM SUMMARY

AGENDA ITEM NO. 8A

AGENCY: City Council

MEETING DATE: December 09, 2019

DEPARTMENT: Public Works

PRESENTED BY: C. O’Neal

EMAIL ADDRESS: [email protected]

TITLE: Receive Report and Consider Adoption of City Council Resolution Approving Professional Services Agreement to Contract With R.E.Y. Engineers, Inc. to Provide Design and Engineering Services for the 2020 Maple Street Storm Drain and Alleys Rehab Project, City Project No. PWP-00116, and Authorizing City Manager to Execute Contract (Amount Not To Exceed $144,342.00; Account No.405-4870-0731) ISSUE: On November 26, 2019, three civil engineering consulting firms submitted proposals for engineering and design services for the 2020 Maple Street Storm Drain and Alley Rehab Project. The Public Works Department reviewed the proposals and recommends that R.E.Y. Engineers, Inc. be selected as the design engineering firm for the project. All proposals were responsive and timely. This firm is well qualified to perform the work, and the base proposal cost submitted was below the estimated $125,000 allotted for the design of the street project. R.E.Y.’s proposal indicated additional value added tasks for geotechnical work that staff feels is necessary to include, which brings their total cost above the budgeted estimate to the total Not To Exceed amount of $144,342.00. ANALYSIS: The Public Works Department and City Council identified the Maple Street Storm Drain Replacement Project in the 2019/2020 FY CIP budget. In October of 2019, the scope of work for this project was expanded to include rehab of four City alleys as well. This scope of work was reviewed and approved by City Council prior to release of the Request for Proposals (RFP) on October 31, 2019. The project includes replacement of a failing stormdrain line, three new drain inlets to be installed in the Maple Street project area, and the Maple Street pavement segment and the four (4) alleys selected for this project will receive full rehabilitation. The table below (Table 1: RFP Evaluation) summarizes the most important components of each proposal and details the overall ranking based on the review of the submittals by staff. Both the proposals of R.E.Y. and LACO provide what staff perceives to be an adequate level of service. The last two designs produced by KASL (Chestnut Street Corridor Multi-Use Path and 2017 Street Rehabilitation Project) were difficult to construct with bid documents they provided. At this time, staff does not recommend using their services. While LACO’s proposal presented the lowest cost for services (at about 70% of the proposed design budget), the quality of the submittal left staff feeling concerned about the value of their proposed services. The proposal was full of spelling and typographical errors, had incorrect pagination, and showed little understanding of the work to be done. It is difficult to understand how they arrived at the estimate of costs not displaying an understanding of the work to be completed.

mailto:[email protected]

Staff feels strongly that R.E.Y.’s organized proposal, concise timeline for design completion, proposed value added extras, QA/QC, and their extra diligence in pre-proposal research

Responding Firms Key Components of the Proposal Schedule Cost Score (100

possible)Overall Ranking

KASL Consulting Engineers

•Clear understanding of project• Completed the reference documents (Alley Master Plan and Storm Drain Master Plan)• Previous design work performed for the City with issues• Very small staff committed to project with short delivery window•Recommended alternative surface treatments which included permeable pavers• Proposal includes a pavement specialist and geotechnical engineers as sub consultants included in base price

11 Weeks $ 92,050.00 71 3

R.E.Y. Engineers, Inc.

• Did extensive pre-submittal research• Showed clear understanding of the scope of work• Noted ADA issues and concerns of shallow utilities, and drainage flow patterns• Suggested LID and cost saving design alternatives • Uses LiDar for survey data collection• Included optional tasks for additional fees; Utility locating ($12,810) and Geotechnical investigation ($25,940)• Extensive relevant project experience

20 Weeks $144,342.00 95 1

LACO Associates, Inc.

• Lacked clear general understanding of project• Many errors (both in spelling and job description locations), missing cover page and did not include contact information for firm• They are currently contracted to perform City Engineering services for a local municipality-which indicates familiarity with processes, standards, and administrative procedures• Mixed success with previous recent designs• This proposal includes a geotechnical investigation

14 Weeks $ 88,400.00 78 2

RFP Evaluation Table 1

about this project shows their commitment to delivering the City a successful project. One of the most important components of a good design is attention to detail and quality control of the submittal, something that was best represented by the submittal from R.E.Y. An example of this from their proposal is their assertion that up to $50,000 in construction costs can be saved by utilizing the in-depth geotechnical information from their geotechnical investigation option to optimize the street thickness design and minimize materials used. If selected, City staff would continue to work with R.E.Y. to find other substantial construction cost savings reflecting their higher level care and detail during design. Engineering staff also believes that optimized or inventive designs can be used in other future projects. The City is always looking at bringing new and innovative designers to perform work on the coast and staff feels that R.E.Y. will make us a regular client. Nevertheless, the R.E.Y. proposal (with the geotechnical and utility location options) is $144,342 which is $55,942 (or about 63%) greater than LACO’s. While high quality design and construction bid documents are always desirable, staff is looking for direction from Council as to whether they agree that the extra cost is merited. RECOMMENDED ACTION: Adopt Resolution approving Professional Services Agreement with R.E.Y. Engineers Inc. to Provide Design and Engineering Services for the 2020 Maple Street Storm Drain and Alley Rehab Project, City Project No. PWP-00116, and Authorizing City Manager to Execute Contract (Amount Not To Exceed $144,342.00). ALTERNATIVE ACTION(S): 1. Adopt Resolution approving Professional Services Agreement with LACO Associates,

Inc. to Provide Design and Engineering Services for the 2020 Maple Street Storm Drain and Alley Rehab Project, City Project No. PWP-00116, and Authorizing City Manager to Execute Contract (Amount Not To Exceed $88,400.00); or

2. Reject all proposals and solicit a new Request for Proposals (RFPs). FISCAL IMPACT: The Design and Engineering portion of this project was estimated at $125,000, and a total project budget of $1,800,000. The 2020 Maple Street Storm Drain and Alley Rehab Project is funded in part through SB-1 Local Partnership Program (LPP) funds in the amount of $100,000 and the remaining amount of $1,700,000 is verified as being available for funding with City’s Special Sales Tax money. City Special Street Sales tax monies are received from a half-cent sales tax which is restricted to City Street and alley repairs/rehabilitation. Staff will bring forward a budget amendment in the spring of 2020 once the engineers estimate is substantially complete and prior to the project going out to bid. GREENHOUSE GAS EMISSIONS IMPACT: There is little to no increase in Greenhouse gas emissions associated with the Design Engineering portion of this project. There is a slightly higher emissions impact associated with the selection of either R.E.Y. Engineers, Inc. or KASL Consulting Engineers versus LACO Associates, Inc. due to the increased driving distance required to travel to Fort Bragg.

CONSISTENCY: The Maple Street portion of this project is consistent with the City’s Capital Improvement Plan (CIP) budget for street repair. The primary funding source for this project is Special Street Sales Tax, Measure H. This special purpose transaction and use tax was passed by the voters in 2004 and extended again in 2014. The special sales tax is currently scheduled to sunset in 2024. This City’s Special Street Sales Tax, makes us a “Self-Help” City under RMRA, which entitles us to the additional $100,000 in state funds described above as available for this project. The proposed use of both the Special Street Sales tax and RMRA funds is consistent with their intended use for repairing, maintaining and reconstructing City streets and underlying infrastructure. IMPLEMENTATION/TIMEFRAMES: Project design engineering is scheduled for this winter and spring. Once designed, the project will be released for bid in late spring/early summer of 2020 with the intent of catching the most competitive bidding environment. The construction contract will likely be sixty (60) to ninety (90) working days and construction should be complete for final billing by November 2020. ATTACHMENTS: 1. Resolution to Approve Professional Services Agreement with R.E.Y. Engineers Inc. NOTIFICATION: 1. KASL Consulting Engineers; John C. Scroggs, PE Principal-in-Charge 2. LACO Associates, Inc.; Holly Cinkutis, PE Senior Engineer 3. R.E.Y. Engineers, Inc.; Aaron Brusatori, PE Project Manager

- 1 -

RESOLUTION NO. ___-2019

RESOLUTION OF THE FORT BRAGG CITY COUNCILAPPROVING PROFESSIONAL SERVICES AGREEMENT WITH R.E.Y.

ENGINEERS, INC. TO PROVIDE DESIGN AND ENGINEERING SERVICES FOR THE 2020 MAPLE STREET STORM DRAIN AND ALLEYS REHAB PROJECT, CITY PROJECT NO. PWP-00116, AND AUTHORIZING CITY

MANAGER TO EXECUTE CONTRACT (AMOUNT NOT TO EXCEED $144,342.00; ACCOUNT NO.405-4870-0731)

WHEREAS, on October 24, 2019 City Council directed the Public Works Department to move forward with releasing a request for proposals to design improvements for the 2020 Maple Street Storm Drain and Alleys Rehabilitation Project; and

WHEREAS, on November 26, 2019, the City received three proposals for engineering design services for the street rehabilitation project. Proposing firms included KASL Consulting Engineers, LACO Associates, and R.E.Y. Engineers; and

WHEREAS, those proposals were reviewed and evaluated on the basis of capabilities, qualifications, and responsiveness; and

WHEREAS, the Project is exempt pursuant to the California Environmental Quality Act (“CEQA”) and Title 14, the California Code of Regulations (“CEQA Guidelines”), Section 15301 (c) &21080 b. (1); and

WHEREAS, funds in the amount of $650,000 were appropriated in the FY 2019/2020 budget for this activity and sufficient funds are available for this contract; and


1. R.E.Y. Engineers, Inc. is qualified to provide necessary professional services to complete plans and specifications for the 2020 Maple Street Storm Drain and Alleys Rehabilitation Project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fort Bragg does hereby approve a Professional Services Agreement with R.E.Y. Engineers, Inc. for the 2020 Maple Street Storm Drain and Alleys Rehabilitation Project design and authorizes the City Manager to execute the same upon execution by Contractor (Amount Not to Exceed $144,342.00 Account 405-4870-0731).

The above and foregoing Resolution was introduced by Councilmember ________, seconded by Councilmember ________, and passed and adopted at a regular meeting of the City Council of the City of Fort Bragg held on the 9th day of December, 2019, by the following vote:


- 2 -

WILLIAM V. LEEMayor

ATTEST:


Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-520


File Type: ReportIn Control: City Council

Agenda Number: 8B.

Receive Report and Recommendation from the Election Systems Review Ad Hoc Committee


AGENDA ITEM SUMMARY

AGENDA ITEM NO. 8B



DEPARTMENT: City Council

PRESENTED BY: Tess Albin-Smith


TITLE:Receive Report and Recommendation from the Election Systems Review Ad Hoc Committee

THIS WILL BE AN ORAL PRESENTATION BYCOUNCILMEMBER TESS ALBIN-SMITH

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FINAL REPORT

ELECTIONS REVIEW AD HOC COMMITTEE (ERC)

DECEMBER 9, 2019

BACKGROUND

In April 2018, the “Coast Committee for Responsive Representation” (CCRR), sent a

letter alleging that the City of Fort Bragg violated the California Voting Rights Act of 2001

(CVRA, California Elections Code §§ 14025-14032). The CVRA protects the voting rights

of minorities from dilution and can require communities to form districts when there is

“racially-polarized1” voting.

That allegation was based on a theory that a lack of Latinos running or winning a seat on

the Fort Bragg City Council happens because voting at large causes racially polarized

voting in favor of the non-Hispanic majority.

The ERC would like to point out that the statement is incorrect. Historically Latinos have

indeed run for Fort Bragg City Council seats during elections in 2002, 2004, 2006, and

2018. Brian Baltierra served from 2002 to 2006.

To enforce the CVRA, the plaintiff must demonstrate that Fort Bragg DOES indeed have

racially-polarized voting with respect to City Council elections. In essence there is one

test in California:

Do the voters who are not in the protected class vote in a bloc to defeat the

preferred candidates of the protected class?

This test is significantly broader than the test at the federal level under the Voting Rights

Act of 1965.

1 Racially polarized voting exists when voters of different racial or ethnic groups exhibit very different candidate preferences in an election. It means simply that voters of different groups are voting in opposite directions, rather than in a coalition.

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The City of Fort Bragg hired a professional demographer consultant through the National

Demographics Corporation (Douglas Johnson, president) to provide demographic and

election history profiles, and to examine the claim of “racially-polarized voting” in Fort

Bragg City Council elections.

The demographer’s findings provided the following conclusions:

• There is no evidence of racially polarized voting in past elections.

• Dividing the city into five separate districts could not produce a majority bloc of

Latinos or any one ethnic group.

• Using surnames is not a reliable way to identify minorities within district lines.

• For example, Mayor Lee may be grouped with Asians, Portuguese may be

grouped with Latinos, and one of the spouses in a mixed Latino/Caucasian

marriage will be misidentified.

A Settlement Agreement was drawn up whereby the CCRR agreed to rescind their

letter if the City, which had already contracted for a demographic analysis, further

agreed to:

1. Cover candidate statement fees, making it less expensive for candidates to

run for election.

2. Promote civic engagement by doing more public outreach to include

providing Spanish/English translations for public notices and signs.

3. Establish a committee to review electoral systems, with the possibility of

forming a charter city, in time to recommend to the City Council ballot initiatives

for the 2020 election. (The ERC and this final report fulfills this obligation.)

Specifically, the ERC was asked to take on the following tasks:

• Research and evaluate different electoral systems

• Evaluate options available to both general law and charter cities;

opportunities and limitations of each

• Recommend a preferred electoral system

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• Recommend the benefits and limitations of a charter city, and (if

appropriate)

• Suggest a draft charter city ordinance in time for the November 2020

City Council election ballot

The Elections Review Committee (ERC) was formed soon after the

settlement agreement and met several times between January and July 2019.

Members conducted extensive research and interviewed various city

representatives and others for more information.

In August 2019, the ERC presented a status report to the City Council, then

hosted three public forums at different venues around the city, varying the

dates, hours, and days of the week, hoping to accommodate the public

interested in the topic.

The forums were publicized on posters and in the Fort Bragg Advocate News in

both English and Spanish. A total of eight people attended the three forums, but

there was lively discussion and the committee received good feedback on how

to proceed with recommendations.

The number of those attending may reflect the concern, or lack thereof, in the

public mind of those in Fort Bragg regarding this election issue and the

concerns raised by the CCRR.

Below is a summary of the ERC findings and recommendations for City

Council action comparing:

(A) Election Options (districting vs. at large), and

(B) Electoral Systems (vote counting methods)

------------------

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A. ELECTION OPTIONS IN FORT BRAGG

I. At Large Voting: The entire city is one voting bloc. All voters can vote on all

candidates and get one vote for each available City Council seat. Candidate(s)

with the most votes win. This is the current voting system in Ft. Bragg.

II. District Voting: Each “voting district” is represented by one seat on the City

Council. The city would be divided into five districts based on population only

(not based on number of registered voters). Both candidates and voters must

reside in that district. Voters can only vote for candidates running in their

district.

Facts to Consider before making a decision:

1. Currently no one Councilmember represents the interests of a voting bloc or

neighborhood—all Councilmembers decide on city issues as a whole. Is this

preferable, or should there be a change?

2. If districting were implemented, each of five districts would have to put up a

candidate to run for City Council when the incumbent’s term expires. If no

candidate runs for a district, the Mayor appoints a representative to serve. Such

appointment requires no further election.

3. Without implementing districts, the City will still be subject and vulnerable to

claims of CVRA violation. Plaintiff(s) may collect reasonable attorney’s fees and

litigation expenses. So far, no city has prevailed in court fighting CVRA claims.

The City’s best defense against claims of CVRA violation is to ensure fair

elections, avoid dilution, and to be vigilant regarding such issues,

particularly racially polarized voting. To this end, the ERC notes the

following:

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a. A professional demographer concluded that there is no evidence of

racially-polarized voting, and that it is not possible to develop/establish a

district in this city with a majority of Hispanic voters.

b. The demographer concluded that the highest concentration/percentage

of Hispanic voters that could be grouped into any one district in Fort

Bragg would be 25%. Obviously, creating a 75% or greater non-Hispanic

majority in each district will not remove racial polarization if it exists. See

below under “Further Considerations about Districting” for more

information.

c. The City has made recent changes to encourage more diversity for City

Council candidates and minority involvement in City government.

o Candidate statement fees are covered by the City

o City Council and Planning Commission agendas and public hearing

notices are now published in both Spanish and English

Further Considerations about Districting

There is an assumption that districting can create a voting bloc with a majority of

Hispanic voters who might want to nominate a Hispanic candidate and win the seat

in their district. In many communities that might work. But the opposite seems true

in Fort Bragg.

For example, the CVRA complaint letter claimed that the Latino or Hispanic Citizen

Voting Age Population in Fort Bragg is concentrated in the southern half of the

city, which they also claimed to be nearly four times greater than it is in the

northern half of the City.

Even if those claims are true, district voting requires the city to be divided into five

districts, not two; each district would contain about 1450 residents including

children and other non-voting persons.

The demographer said the area with the highest potential Hispanic voting bloc is

actually in the Northwest fifth of the city near Glass Beach. A voting bloc in the

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southern half of the city would actually be divided into 15-18% minority voters,

each voting for one candidate against an 82% or greater non-Hispanic majority.

B. ELECTORAL SYSTEMS – SHOULD THE CITY CHANGE, AND WHAT IS REQUIRED IN

ORDER TO CHANGE?

The Elections Review Committee studied the three most popular types of electoral

systems and how they work.

A. Plurality Voting: The City of Fort Bragg currently uses “Plurality” voting in its

at-large approach, where the candidate(s) with the most votes wins.

B. Cumulative Voting: Like plurality voting, voters get as many votes as there are

open seats. However, under cumulative voting, voters may cast ALL of their

votes for a single nominee when there are multiple openings. The candidate(s)

with the most votes wins.

C. Ranked Choice Voting (RCV): Voters rank candidates 1-2-3, etc. according to

preference. Winners must have a majority of votes, so basically (if there are

more candidates than seats) the last place candidate is eliminated and the 2nd

rank choice for those voters (voting for the last place candidate as rank 1) is

used. If still no majority, the same procedure is repeated until a clear majority is

achieved (>50% for 1 opening, >25% for 3 openings, etc.).

FALSE ASSUMPTIONS!

The CCRR Settlement Agreement implies that switching election systems would

satisfy the CVRA. This is false, and has been tested in court.2

2 The ERC learned of communities such as Santa Clara and Mission Viejo that tried to avoid districting by becoming Charter Cities and switching election systems to Ranked Choice Voting and Cumulative Voting, respectively. However, the court did not agree and forced these communities to form voting districts anyway.

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RECOMMENDATIONS REGARDING SWITCHING VOTE COUNTING SYSTEMS

If switching election systems will not satisfy the CVRA test, the ERC advises the City

Council not to pursue the subject any further for this purpose.

If, however, the City Council or the community wishes to explore running a different

election system, not to satisfy the CVRA, but because of desire to establish a more

democratic and fair voting method, then the ERC has learned the following:

1. Before the City can run elections using a system other than plurality voting, the

City voters will first have to pass a ballot initiative with the proposal to become a

Charter City, then pass a ballot initiative to switch election systems. (No

election is needed to switch to districts.)

a. A new City Charter can be brief, only dealing with adopting new election

systems. Or it can be more detailed, allowing for other variations of state

law as allowed.

2. If the voters pass initiatives for both becoming a Charter City and employing a

new system of vote counting (other than plurality), Mendocino County has new

voting machines that can handle the changes.

a. However, they said the software for employing Ranked Choice Voting,

for example, will cost an estimated $300,000 (the cost can be shared

with other communities wishing to use RCV within the County). Note the

County cautioned there also will be a ‘special handling charge’ for a

specialist to run the software at each election.

Note: Regardless of City Council’s decision, voters registered in the City of Fort

Bragg can propose the charter city ballot initiative, as well as a ballot initiative to

change election systems.

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FINAL RECOMMENDATIONS FROM THE ERC

The ERC commends the City of Fort Bragg for adopting several great policies in their

settlement agreement. These and other measures will better ensure fair voting

happens in our community. The ERC recommends as follows:

1. Maintain the Current “At Large” Voting System: The ERC recommends the

City Council not change the current “at large” voting system at this time. It has

been shown that the City of Fort Bragg population cannot be divided evenly to

create even one majority Hispanic voting bloc out of five potential districts. And

in fact, forming districts may exacerbate voting fairness by limiting voter

choices to one council seat. The ERC recognizes there are many more factors

influencing voter choices than race, color, or language, and the City should

continue to give voters five choices instead of one.

2. Maintain the “Plurality” Vote Counting Method Unless Voters Elect to

Change: A new vote counting system would not satisfy the CVRA and two

ballot initiatives would have to pass; first to change Fort Bragg to a Charter

City, and second to adopt a new voting system (e.g., Cumulative or Ranked

Choice Voting). So unless the City Council wants to change for a reason other

than to satisfy the CVRA, the Council should decline the option to change

voting systems and employ more immediate measures to enfranchise Hispanic

voters (such as described below).

3. Periodically Contract with a Demographer: A professional demographer

looked for signs of racially polarized voting in past elections. A new census is

planned in 2020. The ERC recommends the City contract with a demographer

next year and again at least every 10 years with the U.S. Census. The City

should remain vigilant and watch for warning signs of racially polarized voting.

4. Advertise the New Policy of No Candidate Statement Fees for City

Council Candidates: The ERC acknowledges this will be a huge step in

leveling the playing field for future City Council candidates in all socio-

economic categories. By reducing the fundraising burden for candidates, the

P a g e | 9

City may draw out more of the population who are without the means to run for

office. The ERC recommends this policy be advertised in election years.

5. Commit to More Public Outreach for Inclusion of All Voters: The City has

agreed to provide more types of forms, publications, and notices in two

languages, to increase awareness of City government. This is a great idea

toward inclusion and ensures that everyone has the fundamental right to enjoy

a fair election process.

a. The ERC recommends the best way to empower Latinos to be interested in

voting and running for office, is to register more eligible Latino VOTERS.

• The ERC recommends the City Council pursue an agenda to

increase local Latino involvement in City elections. Possible

activities include setting up a voter registration booth at all Latino

public events, reaching out to the Latino Coalition and adding a link

to their webpage on the City website during election years, and other

outreach measures.

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-523



Agenda Number: 8C.

Receive Presentation From JJACPA, Inc. and Finance Director Victor Damiani on the

Comprehensive Annual Financial Report (CAFR) for the Year Ended June 30, 2019 for the City of

Fort Bragg and Consider Accepting the CAFR as Presented


AGENDA ITEM SUMMARY

AGENDA ITEM NO. 8C



DEPARTMENT: Finance

PRESENTED BY: V. Damiani


TITLE:Receive Presentation from JJACPA, Inc. and Finance Director Victor Damiani on the Comprehensive Annual Financial Report (CAFR) for the Year Ended June 30, 2019 For the City of Fort Bragg and Consider Accepting the CAFR as Presented

ISSUE:As required by State and federal law, an independent audit of the City’s financial records must be performed on an annual basis. The financial records include those of the City of Fort Bragg (“City”) and its component unit, the Fort Bragg Municipal Improvement District No. 1 (“District”).

An audit review for the City and District has been performed and completed by JJACPA, Inc., an independent audit firm. Copies of the reports will be forwarded to all federal, State and banking entities as necessary.

Finance Director Victor Damiani and Joseph Arch, CPA, of JJACPA, Inc. will present the report and respond to any questions that are raised.

RECOMMENDED ACTION:Accept, by motion, the Comprehensive Annual Financial Report as presented.

ALTERNATIVE ACTION(S):None.

ANALYSIS:The Independent Auditor’s Report (pages 1-2) as well as highlights of Management’s Discussion and Analysis (pages 3-19) of the CAFR will be presented.

FISCAL IMPACT:There is no fiscal impact with the presentation of this item.

GREENHOUSE GAS EMISSIONS IMPACT:There is no direct greenhouse gas emissions impact with the presentation of this item.

IMPLEMENTATION/TIMEFRAMES:Not applicable.

ATTACHMENTS:1. City of Fort Bragg Comprehensive Annual Financial Report, Together with Independent

Auditors’ Report for the Year Ended June 30, 20192. Power Point Presentation3. Auditor’s Communication Letter4. Representation Letter5. Federal Single Audit

NOTIFICATION:1. Joseph Arch, Brett Jones – JJACPA, Inc.

City of Fort Bragg, California

Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2019

Prepared by City of Fort Bragg Finance Director

Victor Damiani

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City of Fort Bragg, California Comprehensive Annual Financial Report For the year ended June 30, 2019

Table of Contents

i

Page

Table of Contents ................................................................................................................................................. i Letter of Transmittal ........................................................................................................................................... vi Organization Chart ............................................................................................................................................ xiii GFOA Certificate of Achievement for Excellence in Financial Reporting .......................................................... xiv

Independent Auditors’ Report ............................................................................................................................ 1 Management’s Discussion and Analysis (Required Supplementary Information) .............................................. 3 Basic Financial Statements:

Government-Wide Financial Statements: Statement of Net position .................................................................................................................... 21 Statement of Activities ......................................................................................................................... 22

Fund Financial Statements:

Governmental Funds: Balance Sheet ............................................................................................................................................. 26 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position .................................................................................................................... 28 Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position – Governmental Activities ......................................................................... 29 Statement of Revenues, Expenditures, and Changes

in Fund Balances – Governmental Funds ............................................................................................. 30 Reconciliation of Fund Basis Statements to Government-wide Statement of Activities ......................................................................................................................... 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................... 33

Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual – General Fund and Major Special Revenue Funds .............................................................................................................. 34

Proprietary Funds: Statement of Net position – Proprietary Funds ......................................................................................... 38 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ................................................................................................................................ 39 Statement of Cash Flows – Proprietary Funds ........................................................................................... 40

INTRODUCTORY SECTION

FINANCIAL SECTION


Table of Contents

ii

Page Fiduciary Activities:

Statement of Fiduciary Net position – Fiduciary Activities ......................................................................... 42 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ....................................... 43

Notes to Basic Financial Statements.......................................................................................................... 45 Required Supplementary Information: Schedule of Changes in Net OPEB Liability/(Assets) and Related Ratios .................................................... 93 Schedule of Employer Contributions - OPEB .............................................................................................. 94 Schedule of Contributions – Miscellaneous Plan ........................................................................................ 95 Schedule of Contributions – Safety Plan ..................................................................................................... 96 Schedule of City’s Proportionate Share of Net Pension Liability –

Miscellaneous Plan ............................................................................................................................... 97 Schedule of City’s Proportionate Share of Net Pension Liability –

Safety Plan ............................................................................................................................................ 98 Other Supplemental Information: Combining and Individual Fund Financial Statements and Schedules: Non-major Governmental Funds:

Combining Balance Sheet ........................................................................................................................ 102 Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances ................................................................................................................................ 103 Combining Balance Sheet ......................................................................................................................... 110

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................................................. 114

Combining Balance Sheet – Federal and State Grant Special Revenue Funds ........................................ 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Federal and State Grant Special Revenue Funds ................................................. 120

Combining Balance Sheet – Non-major Capital Projects Funds ............................................................... 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Capital Projects Funds ....................................................................... 123

Internal Service Funds: Combining Statement of Net position – Internal Service Funds .............................................................. 125 Combining Statement of Revenues, Expenses, and Changes

in Net Position – Internal Service Funds ............................................................................................ 126 Combining Statement of Cash Flows – Internal Service Funds ................................................................ 127


Table of Contents

iii

Page

Financial Trends

Net Position by Component ...................................................................................................................... 130 Change in Net Position .............................................................................................................................. 132 Fund Balances of Governmental Funds .................................................................................................... 136 Changes in Fund Balances of Governmental Funds .................................................................................. 138 Governmental Fund Tax Revenues by Source .......................................................................................... 140

Revenue Capacity Principal Sales Tax Producers .................................................................................................................... 141 Historical Sales Tax Amounts by Benchmark Year .................................................................................... 142 Assessed Value and Estimated Actual Value of Taxable Property, City Wide .......................................... 143 Assessed Value of Property by Use Code, City Wide ................................................................................ 144 Direct and Overlapping Property Tax Rates .............................................................................................. 146 Principal Property Taxpayers .................................................................................................................... 148 Property Tax Levies and Collections ......................................................................................................... 149

Debt Capacity

Ratios of Outstanding Debt by Type ......................................................................................................... 150 Legal Debt Margin Information ................................................................................................................. 152 Direct and Overlapping Debt .................................................................................................................... 154 Pledged Revenue Coverage ...................................................................................................................... 156

Demographic and Economic Information

Demographic and Economic Statistics ...................................................................................................... 158 Principal Employers ................................................................................................................................... 159

Operating Information

Full-Time and Part-Time City Employees by Function (Full-Time Equivalent) .......................................... 160 Operating Indicators by Function ............................................................................................................. 161 Capital Asset Statistics by Function .......................................................................................................... 162

Statistical Section

iv


v

INTRODUCTORY SECTION Letter of Transmittal

Organizational Chart, Elected and Appointed Officials

vi

LETTER OF TRANSMITTAL

DATE: December 9, 2019 TO: Citizens of the City of Fort Bragg,

Honorable Mayor and Members of the City Council and City Manager

FROM: Finance Director Victor Damiani RE: Presentation of the Comprehensive Annual Financial Report

As required by State and federal law, the Comprehensive Annual Financial Report (CAFR) of the City of Fort Bragg (City) for the fiscal year ended June 30, 2019, is hereby published. Management assumes full responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal controls that are established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The City’s basic financial statements have been audited by JJACPA, Inc., an accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The financial statements included in this report were audited in accordance with generally accepted auditing standards and government auditing standards. The independent auditors concluded that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s basic financial statements for the fiscal year ended June 30, 2019 are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report. The independent audit of the City’s basic financial statements is part of a broader, federally-mandated Single Audit designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the City’s fair presentation of the financial statements, but also on the City’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. Management’s Discussion and Analysis (MD&A) immediately follows the report of the independent auditors and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A was designed to complement this letter of transmittal and should be read in conjunction with it.

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This report combines the financial statements of the City, the Successor Agency to the Fort Bragg Redevelopment Agency (Successor Agency), and the Fort Bragg Municipal Improvement District No. 1 (MID) in accordance with principles defining the governmental reporting entity adopted by the Governmental Accounting Standards Board (GASB). The financial operations of the Successor Agency and MID, though legally separate from the City, are closely related to the City. The City Council members serve as the governing board for the MID, which is presented as a blended component unit in the financial statements. Component units are legally separate entities for which the primary government is financially accountable. For a more detailed overview of the City’s component units, see the Management Discussion and Analysis (MD&A) and the Notes to the Basic Financial Statements on pages 3-19 and 46-91, respectively. Profile of the Government The City of Fort Bragg, incorporated in 1889, is located approximately 165 miles north of San Francisco and 188 miles west of Sacramento on the scenic coast of Mendocino County. The City occupies 2.7 square miles. Census 2010 places the City’s population at 7,273. Although it is quite small, Fort Bragg is the largest city on the coast between San Francisco and Eureka. The largest employment categories in the City include health care, public education, local government, wholesale and retail trade, and tourism. The mild climate and picturesque coastline make Fort Bragg a popular tourist and recreational area. Fort Bragg is a general law city under California state law and its rights, powers, privileges, authority, and functions are established through the State constitution. The City operates under the Council-Manager form of government. The five members of the Fort Bragg City Council are elected by the voters to serve overlapping four-year terms. The Mayor is elected by, and from, the City Council for a two-year term. The City Council appoints the City Manager who serves at their discretion. The City Council is a policy-setting body that is responsible for, among other things, enacting ordinances, adopting the budget, and appointing committees. Several boards, commissions, and committees assist the City Council and Administration in carrying out various aspects and functions of city government. The members of the City Council also serve as the governing board for the Successor Agency to the Fort Bragg Redevelopment Agency and the Fort Bragg Municipal Improvement District No. 1. The City Manager is responsible for directing and supervising the administration of all departments of the City to ensure that laws, ordinances, orders, resolutions, contracts, leases, and franchises are enforced and executed, and for appointing all City employees. The City provides a wide range of services to its residents including public safety services, construction and maintenance of streets and infrastructure, water service, wastewater service, community development, financial management and administrative services. Special districts, agencies and Joint Power Authorities (JPAs) under the jurisdiction of the City provide services such as wastewater treatment and fire protection throughout the City. Other entities not under the City’s jurisdiction that provide services to the City’s population include the school district, hospital district, recreation district, harbor district, and other special districts. The annual budget provides a comprehensive statement of the City’s organization, operations and resources and it expresses City Council and Municipal Improvement District Board policies and priorities in all areas of the City’s operations. The budget process is the vehicle through which the City establishes goals and objectives and prioritizes desired programs or services which can be financed by the City’s projected revenue for the budget year. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police). It is the means through which policy decisions are made, effected, controlled and monitored. The City Manager is responsible for submitting and recommending an operating budget and a capital improvements budget for City Council

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consideration and adoption. Throughout the year, the budget serves as a financial management tool and an operational plan for the delivery of City services and capital projects. In addition to the budget planning process, the City maintains budgetary controls. The City’s objective in maintaining budgetary control is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager is authorized to transfer budgeted amounts within funds as deemed necessary in order to meet the City’s needs subject to policy defined in the Fiscal Policies of the budget. The City Council may amend the budget by resolution during the fiscal year. The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Purchase orders, contracts, and other commitments for expenditure of money are secured in order to reserve that portion of the applicable appropriation. Total expenditures of each fund may not exceed fund appropriations and total expenditures for each department may not exceed departmental appropriations. Encumbrances outstanding at year-end are reported as committed fund balance. Unencumbered amounts lapse at year-end and may be appropriated as part of the following year’s budget. Spending Limitation Article XIIIB of the California Constitution, also known as the Gann spending limit, restricts the amount of “proceeds of taxes” California governments may spend. As of June 30, 2018, the City was $3.8 million or 36% under the total Article XIHB (Gann) spending limitation. The City was not impacted by the spending limitation in FY 2018/19.

Citywide Achievements in FY 2018-19

Adopted a balanced General Fund Budget, for the second year consecutively.

Received the Distinguished Budget Presentation Award from the Government Finance Officers

Association, this was the fourth year the City has received this award.

Closed the fiscal year with a $182k surplus, of which 50% will be applied to pay down the City’s

unfunded pension liability.

Developed City Council priority areas and goals to guide projects and funding for future years.

Created and distributed a walking map of the historic downtown to highlight local businesses and

provide directions to local attractions and visitor highlights.

Made significant progress on the Wastewater Treatment Facility upgrade project. The project was

ahead of schedule at approximately 65% completion.

Undertook a $1 million project to upgrade several sanitary sewer pump stations that are long overdue

to be overhauled.

Purchased a new vacuum tanker truck for use primarily by the Wastewater Enterprise.

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Local Economy During FY 2018/19, the City saw the positive employment trends of the last few years continue. As reported by the State Employment Development Department, the local unemployment rate remained at 2.7% as of August 2019, with no change compared to June 30, 2018. This continues to represents the lowest unemployment rate in the past ten years. City tax revenues that are dependent on the state of the economy showed mixed results. Local general fund sales taxes decreased year over year by 3.4% totaling $1.73 million. Still, on a multi-year basis, sales tax is trending up. It remains to be seen if the FY2019 results indicate a new trend. Transient Occupancy Tax was flat totaling $2.6 million in FY 2018/19 which is the same result seen in FY 2017/18. This is the first flattening after seven years of continuous growth. The City’s largest source of discretionary revenue is comprised of these two taxes. Property tax on the other hand showed an increase of 3.9%.

Median home prices (according to CMAR) have decreased about 2% from $410k to $400k. Number of home sales are down 21% year over year. General fund property taxes however have increased year over year from $1.03 million to $1.08 million, a 3.9% increase. The City’s property tax revenue continues to trend 19% lower since 2012 when the State mandated redistribution of tax increment from the dissolution of Redevelopment Agencies.

Overall general fund revenues for FY 2018/19 increased 2% over the prior year. This indicates that the growth rate for the City’s primary revenue sources has slowed. A lack of revenue enhancement coupled with significant increases in pension costs is likely to cause financial strain for the City in the next few years. The Fort Bragg City Council recognized this potential and in response placed a general sales tax measure on the November 2018 ballot entitled Measure H. The defeat of Measure H has already played a substantial role in the City’s financial decisions, most notably leading to staffing reorganizations and the associated service cuts. Passage of Measure H would have allowed the City to move to a fifteen year amortization of its unfunded pension liability which in the long term would have saved the City approximately $4 million. Alternatively, the City Council did adopt a fiscal policy that calls for 50% of any realized year end gain to be used to pay down the City’s unfunded pension liability. FY 2018/19 financial results will provide an additional pension payment of approximately $100k. The

Source: California Employment Development

Department

Source: City of Fort Bragg, Department of Finance

Source: Based on information from the CMAR MLS as of

October 14, 2019. Information is deemed reliable but is

not guaranteed.

Source: Muni Services

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Unemployment Rate

City CA

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$2.40

$2.60

IN M

ILL

ION

S

Property, Sales & Transient Occupancy Taxes

Sales Tax TOT Property Tax

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

Home Sales in Zip Code 95437

Median sales Price

IN T

EN

S O

F T

HO

US

AN

DS

$16,500

$18,500

$20,500

$22,500

$24,500

Per Capita Personal Income

x

following factors contribute to an overall outlook of financial uncertainty in the next few years for the local economy: The slowing of the City’s revenue growth, rising pension costs, rising police department salaries, the increasing likelihood of a recession in the next few years and the tentative viability of the City’s largest employer (Mendocino Coast District Hospital). Due to multiple areas of uncertainty, it is recommended that the City Council once again pursue a general sales tax measure at the next opportunity.

Long-term Financial Planning An analysis and update of the City’s Fiscal Policies, including Fund Balance & Reserve Policies was conducted as part of the FY 2018/19 budget process. The results of the analysis prompted the City Council to commit to new reserve levels. The following General Fund reserves comprise committed fund balance and at Fiscal Year-end 2018-2019 these reserves total $2,159,716:

General Fund Operating Reserve: The City will maintain an unrestricted fund balance of at least 15% to 20% of the annual operating expenditures in the General Fund, as an “Operating Reserve” to ensure liquidity of the General Fund and to ensure adequate cash flow throughout the year. This reserve is necessary to accommodate fluctuations in the timing of expenditures and the receipt of revenues. The reserve is committed fund balance and may be used, with Council authorization, for unforeseen operating or capital needs. At Fiscal Year-end 2018/19, the reserve is funded at 15% which is $1,469,787.

Litigation Reserve: The City will maintain a $200,000 Litigation Reserve to cover unforeseen legal expenses, including unbudgeted settlement costs that are not covered by the City’s insurance pool. At Fiscal Year-end 2018/19, the reserve balance is $200,000.

Recession Reserve: The General Fund will maintain a Recession Reserve for the purpose of

stabilizing the delivery of City services during periods of severe operational budget deficits and to mitigate the effects of major unforeseen changes in revenues and/or expenditures as typically experienced during times of recession. The fund is established at an amount equivalent to 5% of the City’s annual operating budget. City Council approval is required before expending any portion of this committed fund balance. At Fiscal Year-end 2018/19, the reserve balance is $0. The reserves will be established on July 1, 2019 at $489k.

For the City, as with governmental jurisdictions throughout the nation, continuing fiscal challenges have required a redoubling of efforts to address current and future budget shortfalls while working to prioritize and maintain the level of services that the residents of Fort Bragg have come to expect. Traditional funding sources for parks, public safety, and community development are shrinking or have disappeared. The immediate challenges continue to be the dissolution of the Redevelopment Agency by the State and major cuts in revenues distributed through federal and State grant programs. Pension costs will challenge the City in the coming years as well.

The City has worked hard to address its fiscal challenges and, overall, its efforts have been successful. In FY 2014/15 the City was in position to offer modest salary increases to all of its employee groups for the first time since the financial downturn of 2008. Labor agreements for FY 2019/20 thru FY 2021/22 continued the moderate cost of living adjustments begun earlier. The Fort Bragg City Council has implemented two policies aimed at the organization’s financial challenges. Both policies have been described previously and include the newly established “Recession Reserve” and the “Unfunded Liabilities Policy”.

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With hard work, some difficult decisions and fiscal discipline the City Manager and City Council succeeded in passing a balanced FY 2018/19 budget as well as the FY 2019/20 budget. These were the first balanced budgets in many years. The FY 2019/20 budget was balanced by eliminating the position of Administrative Services Director and by downgrading the Police Lieutenant Position to a fourth Police Sergeant position. The City continued to use a less conservative revenue forecast compared to prior years. Further, the City opted to budget only a minimum payment into its Other Post-Employment Benefits (OPEB) trust fund. The tradeoffs in balancing the budget include, a decrease in services (eliminated and downgraded positions) and a higher risk of a budgeted revenue miss in FY 2019/20. A budgeted revenue miss would increase the likelihood of a realized year-end deficit. The OPEB trust fund on the other hand has been diligently pre-funded for several years and even with minimum payments the City appears poised to start drawing from the fund in order to offset increasing costs in the years to come. Beginning with the FY 2017/18 budget the City’s Finance department has prepared a five year budget forecast for the General fund. The five year forecast is updated each year prior to the mid-year budget review meeting. Till now the document has been a stand-alone document that is presented at the mid-year budget review meeting. Beginning with the FY 2019/20 budget the five year forecast has been incorporated into the main budget document. The five year forecast indicates that In the short term, the City will likely be able to fill budgeted or realized deficits with appropriated fund balance. In the long-term, it is likely that revenue enhancements and/or additional cost-cutting measures will be necessary.

Impact of Fiscal Policies on Financial Statements The City of Fort Bragg’s fiscal policies are established to ensure that the finances of the City and the Municipal Improvement District No. 1 (collectively referred to as “the City”) are managed in a manner that will:

Maintain a financially viable local government that provides adequate levels of municipal services to its citizens.

Provide for financial flexibility in order to adapt to local and regional economic changes. Preserve and enhance the sound fiscal condition of the City.

The City’s policies are maintained in the annual budget document and are reviewed and approved each year by the City Council. The policies cover; Budgeting, budgetary controls, revenues, expenditures, utility rates, capital budgeting, debt management, interfund loans, fund balance and reserves, investments, accounting auditing and financial reporting, asset forfeiture expenditures, employment compensation, cost allocations, and debt service. The City’s fiscal policies are extensive and followed diligently so that it can be safely said that all of the policies have had a significant impact on the current period’s financial statements. In some years certain fiscal policies may stand out as having a more significant impact on the financial statements while in other years (such as the current reporting period) they may have a relatively equal impact. Certificate of Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended June 30, 2018. This was the eighth year in a row that the City of Fort Bragg has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

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A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and it will be submitted to the GFOA to determine its eligibility for another certificate.

Acknowledgements

Preparation of this comprehensive annual financial report could not have been accomplished on a timely basis without the support and cooperation of many members of the City of Fort Bragg staff. Special recognition is given to the Finance Department staff, especially Government Accountant II, Isaac Whippy. Their efforts made it possible to improve the quality of the information being reported to the citizens, the City Council, and other users on a timely basis. Appreciation is also expressed to the Mayor, the City Council, and the City Manager for their attentiveness and support in planning and conducting the financial activities of the City in a responsible and responsive manner.


Organization Chart

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Current City Council members and the dates upon which their respective terms expire are as follows:

Mayor Will Lee December 2020 Vice Mayor Bernie Norvell December 2020 Councilmember Tess Albin-Smith December 2022 Councilmember Jessica Morsell-Haye December 2022 Councilmember Lindy Peters December 2022

RESIDENTS OF CITY OF FORT BRAGG

CITY COUNCIL

City Council Committees

Planning Commission

ADMIN SERVICES

PUBLIC WORKS

FINANCE

Will Lee Mayor

COMMUNITY DEV’PMT POLICE

CITY ATTORNEY

Bernie Norvell

Vice -Mayor

CITY MANAGER

Jessica Morsell-Haye

Councilmember

Lindy Peters Councilmember

Tess Albin-Smith Councilmember

FINANCIAL SECTION

Independent Auditor’s Report Management’s Discussion and Analysis Basic Financial Statements Notes to the Basic Financial Statements Required Supplementary Information Combining and Individual Fund Statements and Schedules

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and City

Council City of Fort Bragg

Fort Bragg, California

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each

major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Fort

Bragg, California (City), as of and for the year ended June 30, 2019, and the related notes to the financial statements,

which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with

accounting principles generally accepted in the United States of America; this includes 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.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in

accordance with auditing standards generally accepted in the United States of America and the standards applicable to

financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating

the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by

management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

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, the aggregate remaining fund

information, and the budgetary comparison information of the City, as of June 30, 2019, 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.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and

analysis on pages 3–19, the Schedule of Changes in Net OPEB Liability and Related Ratios on page 93, the Other Post-

Employment Benefits Schedule of Employer Contributions on page 94, the Pension Plan Schedule of Contributions on

pages 95-96, and the Schedules of the City’s proportionate Share of the Net Pension Liability on pages 97–98, be presented

to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is

required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting

for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied

certain limited procedures to the required supplementary information in accordance with auditing standards generally

accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the

information and comparing the information for consistency with management’s 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.

Other 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 and individual nonmajor fund financial statements and the introductory

section and statistical sections are presented for purposes of additional analysis and are not a required part of the basic

financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived

from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

Such 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 auditing standards generally accepted in the United States of America. In our

opinion, the combining and individual nonmajor fund financial statements is fairly stated, in all material respects, in

relation to the basic financial statements as a whole.

The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit

of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 25, 2019 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 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 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.


Management’s Discussion and Analysis

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This section provides a narrative overview and analysis of the financial activities of the City of Fort Bragg (City) for the fiscal year ended June 30, 2019. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS

The City’s Net Position increased $4.1M from $82.1M to $86.2M.

At the close of the most recent fiscal year, the City’s governmental funds reported combined fund balances of $7.4M, a decrease of $143k in comparison with the prior fiscal year. Approximately 19% of combined fund balance at June 30, 2019 ($1.4M) is available for spending at the government’s discretion (unassigned fund balance)

General Fund revenues fell short of budget by $179k or 1.9%

General Fund expenditures were under the final amended budget by $466k or 4.8%

The balance of the General Fund increased $182k to $3.1M.

The Water enterprise Net Position increased $2.3M and the Wastewater enterprise Net Position increased $3.4M while the C.V. Starr Center Net Position decreased $865k. The most significant draw on C.V. Starr Center Net Position is the non-cash item depreciation ($729k). The Center increased cash by $67k for the year.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT This Comprehensive Annual Financial Report is in three major parts: 1) Introductory section, which includes the Transmittal Letter and general information; and, 2) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial

Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements, and Combining and Individual Fund Financial Statements and Schedules.

3) Statistical section, which includes detailed information as a context for understanding what the information in the financial statements, and footnotes says about the City's overall financial health

The Basic Financial Statements The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.



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OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued Government-wide Financial Statements The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all of its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year. All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole.

♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, public works and administration. These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.

♦ Business-type activities – All the City’s enterprise activities are reported here, including Water, Wastewater (Sewer), and the C.V. Starr Community Center. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City may be divided into two categories: governmental funds and proprietary funds.

Fund Financial Statements, Continued Governmental funds. 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 spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.



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OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the detail of these non-major funds. Major funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City’s activities. For the fiscal year ended June 30, 2019, the City’s major funds are as follows: GOVERNMENTAL FUNDS:

General Fund

CDBG Program Income Special Revenue

Housing Successor Agency Special Revenue

Street Sales Tax Special Revenue

Street Resurfacing Capital Projects For the fiscal year ended June 30, 2019, the City adopted annual appropriated budgets for all funds. Budgetary comparison schedules have been provided for the general fund and major governmental funds to demonstrate compliance with this budget and may be found on beginning on page 34. Proprietary funds. The City maintains enterprise-type and Internal Service proprietary 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 Water, Wastewater, and C.V. Starr Center activities. Internal service funds are an accounting methodology used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its building maintenance, information technology assets, and its fleet of vehicles. Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.



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OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued Fund Financial Statements, Continued ENTERPRISE-TYPE FUNDS:

Water enterprise Fund

Wastewater enterprise Fund

CV Starr Center enterprise Fund

Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements may be found on pages 46-91of this report. Required Supplementary Information follows the notes on page 93. Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with non-major governmental funds are presented on pages 101-123 of this report. Combining statements for internal services funds are presented on pages 125-127.



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GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $86.2 as of June 30, 2019. The following table represents a comparative analysis of the net assets of governmental and business-type activities as of June 30, 2019 and June 30, 2018. Year over year assets increased $8.2M and liabilities increase $3.5M. $5M of new debt was issued in connection with the upgrade of the wastewater treatment plant.

Overall, net position increased by approximately $4.1M. Governmental activities decreased $712k while business-type activities increased $4.8M. The revenue and expense factors contributing to the year over year performance increase are discussed in further detail in the ensuing sections of this report.

Govern- Business- Govern- Business-

mental type mental type

Activities Activities Total Activities Activities Total

Current and other assets 11,393,803$ 10,561,422$ 21,955,225$ 11,301,256$ 10,309,901$ 21,611,157$

Capita l assets 41,537,368 44,683,323 86,220,691 42,573,705 35,947,727 78,521,432

Total assets 52,931,171 55,244,745 108,175,916 53,874,961 46,257,628 100,132,589

Deferred outflows of resources 2,544,712 398,112 2,942,824 3,114,703 473,526 3,588,229

Total assets and

deferred outflows of resources 55,475,883 55,642,857 111,118,740 56,989,664 46,731,154 103,720,818

Current and other l iabi l i ties 1,037,759 1,695,849 2,733,608 1,174,015 2,026,572 3,200,587

Noncurrent l iabi l i ties 13,448,975 7,869,703 21,318,678 14,057,706 3,431,521 17,489,227

Total l iabi l i ties 14,486,734 9,565,552 24,052,286 15,231,721 5,458,093 20,689,814

Deferred inflows of resources 765,308 69,466 834,774 822,501 77,781 900,282

Total l iabi l i ties and

deferred inflows of resources 15,252,042 9,635,018 24,887,060 16,054,222 5,535,874 21,590,096

Net pos i tion:

Net investment in

capita l assets 41,400,454 37,805,831 79,206,285 42,293,357 33,571,793 75,865,150

Restricted 1,278,950 108,064 1,387,014 3,757,504 108,064 3,865,568

Unrestricted (defici t) (2,455,563) 8,093,944 5,638,381 (5,115,419) 7,515,423 2,400,004

Total net position 40,223,841$ 46,007,839$ 86,231,680$ 40,935,442$ 41,195,280$ 82,130,722$

2019 2018

Summary of Net Position



8

GOVERNMENT-WIDE FINANCIAL ANALYSIS, continued A large portion (92%) of the City of Fort Bragg’s net position reflects its investment in capital assets (e.g., land, easements, buildings, machinery, and infrastructure); less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens; consequently, these assets are not available for future spending. The balance in net investment in capital assets increased in FY 2018/19 by $3.3M to a total of $79.2M. The increase reflects capital outlay in multiple projects including the Wastewater Treatment Plant Upgrade project ($9.5M) and completion of the Summer’s Lane Reservoir Cover ($420k). Citywide total assets placed in service equaled $10.6M which was offset by $2.9M in depreciation and a net increase in related debt of $4.4M. Restricted net position is comprised of revenues held for expenditure for specified purposes (special revenue) as well as amounts held for debt service. Examples of special revenues are street sales tax and CDBG program income. Overall restricted net position decreased year over year by approximately $2.5M and ended with a balance of $1.4M. An outlay of special sales tax for street repair ($1M), receipt of an outstanding amount due from the State Parks Prop 84 Grants for the Summer’s Lane Reservoir Project ($700k) as well as the spend down of various other grant funds contributed to the increase. Unrestricted Net Position increased $3.2M over the previous year and now stands at $5.6M. Governmental Activities saw an increase of $2.7M in unrestricted net position whereas Business-type Activities saw an increase of $579k. The increase in unrestricted net position on a year over year basis is largely due to the one-time adjustment made in conjunction with GASB statement 75 implementation (related to reporting of OPEB liabilities). The GASB 75 adjustment was made in FY 2017-18 with no such adjustment necessary in FY 2018-19. Deferred outflows are defined as a consumption of net position by a government that is applicable to a future reporting period. Although not entirely the same, deferred outflows are similar in nature to assets. The City currently has three deferred outflows: deferred losses on debt refunding, a deferred outflow related to reporting or the City’s OPEB liability and a deferred outflow related to reporting of the City’s pension plan liability. On a year over year basis the City’s deferred outflows decreased by $645k or 18%. Deferred inflows are defined as an acquisition of net position by a government that is applicable to a future reporting period. Although not entirely the same, deferred inflows are similar in nature to liabilities. The City currently has two deferred inflows:, a deferred inflow related to reporting or the City’s OPEB liability and a deferred inflow related to reporting of the City’s pension plan liability. On a year over year basis the City’s deferred inflows decreased by $66k or 7%.



9

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

The change in net position for the fiscal years ended June 30, 2019, and 2018, follows:

Governmental Business-type Governmental Business-type

Activities Activities Total Activities Activities Total

Revenues:

Program revenues:

Charges for services 2,926,795$ 7,386,526$ 10,313,321$ 3,257,145$ 7,146,794$ 10,403,939$

Grants and contributions:

Operating 764,880 - 764,880 2,258,542 - 2,258,542

Capital 957,245 2,339,229 3,296,474 3,324,209 - 3,324,209

General revenues:

Property taxes and assessments 1,074,931 249,499 1,324,430 1,034,552 236,035 1,270,587

Sales and use tax 1,728,222 878,737 2,606,959 1,785,264 915,239 2,700,503

Transient occupancy taxes 2,640,275 - 2,640,275 2,619,227 - 2,619,227

Other taxes 762,165 - 762,165 718,762 - 718,762

Use of money and property 66,216 168,000 234,216 (110,374) 98,062 (12,312)

Unrealized gains and losses 194,814 - 194,814 - - -

Other general 7,757 77,243 85,000 60,670 272,338 333,008

Total revenues 11,123,300 11,099,234 22,222,534 14,947,997 8,668,466 23,616,463

Expenses:

Governmental activities:

General government 2,384,428 - 2,384,428 2,803,570 - 2,803,570

Public safety 4,338,230 - 4,338,230 4,460,569 - 4,460,569

Public works 2,979,152 - 2,979,152 2,872,843 - 2,872,843

Community development 1,056,350 - 1,056,350 1,207,939 - 1,207,939

Interest and fiscal charges 47,277 - 47,277 52,749 - 52,749

Business-type activities:

Water - 1,920,010 1,920,010 - 2,033,988 2,033,988

Wastewater - 2,673,768 2,673,768 - 2,568,894 2,568,894

C.V. Starr Center - 2,722,366 2,722,366 - 2,385,927 2,385,927

Total expenses 10,805,437 7,316,144 18,121,581 11,397,670 6,988,808 18,386,477

Excess (Deficiency) of revenues over

expenses before transfers 317,863 3,783,090 4,100,953 3,550,327 1,679,658 5,229,985

Transfers (1,029,464) 1,029,464 - (898,498) 898,498 -

Change in net position (711,601) 4,812,554 4,100,953 2,651,829 2,578,157 5,229,986

Net position:

Beginning of year 40,935,442 41,195,280 82,130,722 40,517,614 38,617,123 79,134,737

Beginning, as adjusted 40,935,442 41,195,285 82,130,727 38,283,613 38,617,123 76,900,736

End of year 40,223,841$ 46,007,839$ 86,231,680$ 40,935,442$ 41,195,280$ 82,130,722$

2019 2018

Changes in Net Position



10

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued Revenues The City’s total revenues for Governmental and Business-type Activities were $22.2 M for the fiscal year ended June 30, 2019 which represents a 6% decrease over the previous fiscal year. Governmental Activities decreased $3.8M while Business-type Activities increased $2.4M. Significant revenues for the City for fiscal year 2018/19 were derived from charges for services (46%) grants and contributions (18%), sales and use tax (12%), transient occupancy tax (12%) and property tax (6%).

Following is a discussion of variances in key revenues for the fiscal year 2018-2019:

1. Charges for Services. Charges for Services were essentially flat decreasing $91k or less than 1%. Charges for services for Governmental Activities is made up mostly of salary, benefit and overhead charges to the Business-type Activities as well as charges to various grants for staff time and administrative costs. Cost allocation plan revenues decreased year over year by $215k mostly due to decreased pre-funding of the City’s Other Post Employment (OPEB) liability. Grant staff time reimbursements increased $24k with staff working on a variety of grant funded projects. Parking Fine revenue increased $22k with the Council adopting new fines and a basic parking ticket increasing from $35 to $45. The City negotiated a new agreement with Cal Trans for reimbursement of street cleaning costs on Highway 1 which resulted in a $21k year over year increase. The City had a major code enforcement case which resulted in a $19k year over year increase. Police Department fingerprinting revenue increased $20k due to an increase in fees adopted to coincide with the purchase of a new fingerprinting system. Charges for services for Business-type activities is made up almost entirely of user charges. This category increased $240k or 3.3% in accordance with regularly scheduled rate increases for the both the Water and Wastewater enterprises. Water rates increased 5% while Wastewater rates increased 3%.

Charges for servicesGrants &

ContributionsSales & Use Tax

Transient Occupancy

TaxProperty Tax

2019 $10,313 $4,061 $2,607 $2,640 $1,324

2018 $10,404 $5,583 $2,701 $2,619 $1,271

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

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Significant Revenue Sources



11

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

2. Grants and Contributions. Annual receipts decreased by $1.5M, or 27%. Almost all of the decrease ($1.5M) is attributable to a decrease in the Federal operating grants (CDBG) and is a normal part of the operating grant cycle. Often times operating grants fluctuate from year to year depending on when programs are implemented. Overall capital grants remained steady on a year over year basis. The most significant capital grants in FY 2018-19 were the California State Water Resources Control Board grant ($6M) and the US Department of Agriculture grant ($3.4M). Both of these grants provided funding for the City’s wastewater treatment facility upgrade.

3. Sales and Use Tax (for general purposes). Sales and use taxes leveled off and in fact decreased $94k or 3%. This revenue source has been fairly stagnant for the last ten years and fluctuations both up and down have been mostly tied to the fluctuating cost of fuel. Still, the City is hopeful that with changes on the horizon in regard to the requirements for online retailers this revenue source may see growth in the years to come. Sales and use taxes for Business-type Activities are received for the C.V. Starr Center special sales tax ($879k). The tax is used to subsidize the operations and capital needs of the Center.

4. Transient Occupancy Tax (TOT). Annual receipts for FY 2018/19 increased a very modest $21k, or less than 1%. In FY 2016/17, with the passage of Measures AA and AB, the City’s TOT rate increased from 10% to 12%. The rate increase became effective April 1, 2017. Since inception a majority of Measure AA taxes raised have been invested in activities which promote Fort Bragg as a vacation destination and for a few years running the City has expected TOT to continue increasing each year. Unfortunately the investment has not paid the dividends originally envisioned and although the marketing effort will continue the budget forecasts in the years to come will have to become more conservative to match with actual results.

5. Property Tax. Property taxes increased by $53k or 4%. Statistics received from the Coastal Mendocino Association of Realtors indicates that both median price and total number of sales decreased in FY 2018/19. It should be noted however that the statistics apply to the entire zip code 95437. While property taxes did increase within City limits in FY 2018/19 it is possible that the City will begin to see a slow-down in the real estate market and associated property tax decreases in the near term future.



12

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued Revenues by source for the fiscal years ended June 30, 2019, and 2018, are as follows:

Charges for

ServicesCapital Grants Sales & Use Taxes Property Taxes Interest & other

2019 $7,387 $2,339 $879 $249 $245

2018 $7,147 $0 $915 $236 $370

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

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Revenue - Business-type Activities

Charges for

Services

Capital

Grants

Sales & Use

Taxes

Transient

Occupancy

Taxes

Operating

Grants

Property

TaxesOther Taxes

Interest &

other

2019 $2,927 $957 $1,728 $2,640 $765 $1,074 $762 $74

2018 $3,257 $3,324 $1,785 $2,619 $2,259 $1,034 $719 ($50)

($500)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

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Revenue - Governmental Activities



13

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued Expenses Governmental and Business-type Activity expenses of the City for FY 2018/19 totaled $18M which represents a 2% decrease compared to the previous fiscal year. Governmental Activity expenses were $108 M or 60% of total expenses while Business-type Activities were $7.2M or 40% of total expenses. Public safety costs represented 24% of city-wide expenses, followed by Public Works (17%) and the C.V. Starr Center enterprise (15%).

Following is a discussion of significant variances in key expense categories for the fiscal year 2018/2019:

1. Public Safety. Expenses decreased $123k or 3%. The decrease is mostly attributable to difficulty maintaining the Police Department at full force. Throughout the course of the year the department was as low as 30% understaffed in the way of sworn officers. When taking into account sworn officers out on various leaves the understaffing increases to as much as 43%. Additionally, the department was down one Community Services Officer. Considering the understaffing, it is not hard to see why costs decreased despite significant increased pension costs, a 2% cost of living adjustment and substantial amounts of overtime worked. As of this writing, through hard work and the adoption of several incentive programs, the department is now at full force. Public Safety costs are expected to increase noticeably however in January of 2020 when the City (according to City Ordinance 672) will perform a Police Department salary survey. The survey will analyze comparable positions in the City of Willits, the City of Ukiah and the Mendocino County Sheriff’s Office. With the County Sheriff’s expected to see raises averaging 11%, the City will be forced to raise local officer pay rates as well. The raises are likely to push the General Fund back into a deficit budget.

Public Safety Public Works General GovernmentCommunity

Development

Interest and Fiscal

Charges

2019 $4,337 $2,979 $2,384 $1,056 $47

2018 $4,460 $2,873 $2,804 $1,208 $53

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

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Expenses - Governmental Activities



14

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued Expenses, Continued

2. Public Works. Year-over-year public works expenses increased $106k or 4%. The increase is mostly attributable to Public Works Department personnel costs which increased $99k. Personnel cost increases were driven by a re-organization of the department with the City’s Special Projects Manager and Special Projects Assistant moving from Community Development to Public Works. As with all departments and programs Public Works implemented cost of living adjustments and experienced significant pension cost increases.

3. General Government. Expenses decreased $420k or 15%. The decrease is partially the result of

decreases on a year over year basis of personnel costs ($216k). Personnel costs decreased in two major areas: First, in FY 2017/18 the City paid out significant amounts associated with the severance package for the former City Manager causing a positive year over year variance in FY 2018/19. Secondly, in FY 2018/19 the Administrative Services Director position was eliminated causing a positive year over year variance. Another factor in the expense decrease is the City’s annual OPEB pre-payment. Beginning in FY 2018/19 the City began making the minimum pre-payment required. This caused a $210k positive year over year variance. The OPEB trust fund has been diligently pre-funded for several years and even with minimum payments the City appears poised to start drawing from the fund in order to offset increasing costs in the years to come

4. Community Development. Expenses decreased $152k or 14%. The increase is partially the result of

decreases in department personnel costs ($67k). Personnel cost decreases were driven by a re-organization of the department with the City’s Special Projects Manager and Special Projects Assistant moving from Community Development to Public Works. As with all departments and programs Public Works implemented cost of living adjustments and experienced significant pension cost increases. Additionally expenditures for the new Marketing and Promotion division increased in FY 2018/19 over the prior year by $202k. Lastly, operating grants for the period saw a year over year decrease of approximately $289k.



15

GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued Expenses, Continued

Following is a discussion of significant variances in key business-type expense categories for the fiscal year 2018/2019:

1. Wastewater enterprise. Expenses increased $105k or 4%. The enterprise saw year over year increases

in multiple expense accounts including depreciation ($46k), chemicals ($20k), equipment repairs ($15k) and the allocation to the Facilities internal service fund ($20k).

2. C.V. Starr Center. Expenses increased $336k or 14%. The increase is somewhat misleading however

since the majority of the increase is due to a cash transfer from the City’s enterprise Fund to the Center which is operated by the Mendocino Coast Recreation and Parks District. While the cash transfer is intended to subsidize the first quarter of FY 2019/20 it is classified as a tax allocation expense in the enterprise accounts. $305k was transferred to the Center as of June 2019.

3. Water enterprise. Expenses decreased $114k or 6%. With the Lake and Streambed Alteration Agreement associated with the Summer’s Lane Reservoir complete, the enterprise enjoyed an $81k decrease in legal costs for FY 2018/19. Also, the Water enterprise received a $31k lower administrative allocation in FY 2018/19 as compared to FY 2017/18.

Wastewater Enterprise C.V. Starr Center Water Enterprise

2019 $2,673 $2,722 $1,920

2018 $2,568 $2,386 $2,034

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

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Expenses - Business-Type Activities



16

Net Program Costs The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2019, and 2018, are as follows:

FUND FINANCIAL ANALYSIS The City of Fort Bragg uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental funds The City’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2019, the City’s governmental funds reported combined fund balances of $7.4M. This is a decrease of $140k over the previous year. General Fund The general fund is the chief operating fund of the City. Overall, the general fund balance increased $182k to $3.1M in FY 2018/19. General fund unassigned fund balance totaled $1.4M. This is an increase of $267k from the prior year. Committed fund balance totals $1.7M and includes $50k of funds encumbered by contract or purchase order from prior fiscal years plus $1.4M in the operating reserve and $200k in the litigation reserve. Beginning July 1, 2019 a Recession Reserve will be established at $489k. Special Sales Tax – Streets The Special Sales Tax for street repairs fund decreased $1Mk as FY 2017/18 Streets Resurfacing Project kicked off late in the fiscal year. $1.8M was provided for the project offset by $900k of additional tax revenue.

Total Cost Net Cost Total Cost Net Cost

of Services of Services of Services of Services

General government 2,384,428$ 1,276,569$ 2,803,570$ 1,480,048$

Public safety 4,338,230 3,677,981 4,460,569 3,819,842

Public works 2,979,152 528,776 2,872,843 (1,406,507)

Community development 1,056,350 625,914 1,207,939 (1,388,359)

Interest and fiscal charges 47,277 47,277 52,749 52,749

Tota l 10,805,437$ 6,156,517$ 11,397,670$ 2,557,774$

Net Program Costs

2019 2018



17

FUND FINANCIAL ANALYSIS, Continued

Street Resurfacing Capital Projects The Street Resurfacing Capital Projects fund increased $1.8M. Funding is transferred from the Special Sales Tax for street repairs fund to the Street Resurfacing Capital Projects as projects are undertaken. Although funding was transferred and the FY 2018/19 Street Resurfacing project kicked off late in FY 2018/19, the majority of the work will be completed in the subsequent fiscal year. Enterprise Funds Enterprise funds increased the City’s net position by $4.8M. The City has three business-type activities: Water, Wastewater and the C.V. Starr Center. The Water enterprise net position increased $2.3M or 30% to $10M; the Wastewater enterprise net position increased $3.4M or 29% to $15M; and the C.V. Starr Center enterprise net position decreased $865k or 4% to $21M.

The Water enterprise capitalized costs of 111k ($468k capital costs offset by $357k in depreciation). Additionally, accounts payable decreased $394k while long term liabilities decreased $395k due to regularly scheduled debt payments. Lastly, $1.2M of net income contributed to the increase in the fund’s net position. The Wastewater enterprise made strong progress on the project to replace the aging wastewater treatment plant. The project has an estimated cost of over $17M and kicked off in the final month of FY 2017/18. In FY 2018/19 $9.6M of costs were capitalized contributing to the growth in net position. The capitalized costs were offset by increases in liabilities ($5M bond issued in connection with the Wastewater Treatment Plant upgrade) as well as a decrease in current assets. Current assets, particularly cash , declined by $1.2M due to the Wastewater Treatment Plant project being partially funded by reimbursement grants. The Wastewater enterprise also realized $1M in net income which contributed to the growth in net position. Water operating revenues exceeded operating expenses by $1.2M. The utility is generating sufficient revenue to cover operating expenses as well as maintaining an operating reserve and funding a capital reserve. The rate plan currently in effect is designed to accumulate $1M per year in a capital projects reserve and the plan is working as designed. Wastewater operating revenues exceeded operating expenses by $3.4M. $2.4M of the surplus is grant funding for the treatment plant upgrade project. The utility’s user fees are generating sufficient revenue to cover operating expenses as well as maintaining an operating reserve and funding a capital reserve. The rate plan currently in effect is designed to accumulate $1M per year in a capital projects reserve and the plan is working as designed. The operation of the C. V. Starr Center is contracted to the Mendocino Coast Recreation and Park District and is supported by property tax, sales tax and user fees. The C.V. Starr Center’s operating expenses exceeded operating revenue (user fees) by $2M. The operating loss is subsidized with non-operating revenue including the tax revenue mentioned above, with the resulting change in Net Position a decrease of $865k. The decrease includes a significant non-cash expense; depreciation. Depreciation expense for the C.V. Starr Center totaled $729k. With the FY 2018/19 year-end close the C.V. Starr Center staff discovered an accounting error which had been ongoing for approximately 5 years. Customer accounts which had been credited were erroneously debited as receivable in the Center’s general ledger. The error



18

Enterprise Funds, continued was corrected and resulted in a decrease in accounts receivable as well as a corresponding decrease in revenue which had been overstated ($50k). The C.V. Starr Center increased cash in FY 2018/19 by $67k. The Center continued developing a capital improvement plan in FY 2018/19 and hopes to roll the plan out with the FY 2020/21 budget. FY 2019/20 will continue to see additional capital projects undertaken – most notably the resurfacing of the pool basin.

OTHER ANALYSIS

General Fund Budgetary Highlights

The difference between the final budgeted expenditures and actual results differs favorably by $466k or 5%. The City generated revenues short of budgeted revenue by $179k. Notable revenue misses include Transient Occupancy Tax ($120k), Sales & Use Tax ($66k) and Allocated Costs ($115k) Unrealized gains on investment holdings shows a positive variance however of $195k. This is due to a requirement that the City value it’s investment holdings at market value. As interest rates go down the market value of certificates of deposit goes up. This is a book gain only and assuming the investments are held till maturity, only the principal amounts invested will be recovered in addition to interest earned. It should be noted that between January of 2019 and October of 2019, the US Treasuries 5 year yield has dropped 93 basis points or nearly 1 percentage point of yield. This indicates that the City will earn less on its certificate of deposit investments for at least the next few years. Expenditures were held below the final amended budget by $466k or 5% with savings across many categories. In particular, personnel cost savings were realized in the Police Department ($181k) and Administration Department ($30k). Non-departmental expenditures which are shared costs to be allocated, were below budget by $40k. Also notable is $50k of costs that were encumbered as of year-end but not yet expended. The encumbrances will be rolled forward to FY 2019/20.

Capital Assets

The City’s investment in capital assets for its Governmental and Business-type Activities as of June 30, 2019, amount to $86M. This investment in capital assets includes land, construction in progress costs, buildings, machinery and equipment, infrastructure and land improvements as shown in the chart below:

There was an increase in capital assets of approximately $7.7M (net of annual depreciation costs). Most notably the Wastewater Treatment Facility Project ($9.6M). Citywide total assets placed in service equaled $10.5M which was offset by $12.9M in depreciation. More detail of the capital assets and current activity may be found in the notes to the financial statements in the Summary of Significant Accounting Policies on page 52 and in Note 5 on Page 65 in the Capital Assets section.

2019 2018 2019 2018 2019 2018

Land 12,952,261$ 12,952,262$ 785,079$ 785,079$ 13,737,340$ 13,737,341$

Construction in progress 347,509 65,531 11,316,484 3,338,079 11,663,993 3,403,610

Bui ldings 1,500,986 1,637,314 21,601,755 22,279,861 23,102,741 23,917,175

Machinery, equipment and vehicles 856,734 93,803 1,666,811 1,729,859 2,523,545 1,823,662

Infrastructure 25,879,878 27,824,795 9,155,022 7,602,447 35,034,900 35,427,242

Land improvements - - 158,172 212,402 158,172 212,402

41,537,368$ 42,573,705$ 44,683,323$ 35,947,727$ 86,220,691$ 78,521,432$

Governmental Activi ties Bus iness-type Activi ties Totals



19

Debt Administration At June 30, 2019, total City debt outstanding, was $7.5M. This represents an increase of $4.4M over the previous year. Overall Governmental debt decreased by $137k as a result of normal required payments. Business-type debt increased $4.5M resulting from normal required payments and the issuance of a bond in connection with the Wastewater Treatment Facility project. Additional information about the City’s outstanding debt and other long term liabilities is presented in Note 7 on pages 67 through 71.

Economic Outlook As of this writing, the economic outlook for the City continued to be somewhat tentative. The following factors contribute to an overall outlook of financial uncertainty in the next few years for the local economy: The slowing of the City’s revenue growth, rising pension costs, rising police department salaries, the increasing likelihood of a recession in the next few years and the tentative viability of the City’s largest employer (Mendocino Coast District Hospital). Due to multiple areas of uncertainty, it is recommended that the City Council once again pursue a general sales tax measure at the next opportunity. The General Fund Budget for FY 2019/20 of approximately $9.8M was adopted in June of 2019 and for the second time running did not include a fund balance appropriation (operating deficit). The budget was adopted with a $65k surplus. Balancing the budget did not come without some cost however. In FY 2018/19 the Police Department was reorganized and eliminated the Lieutenant position in favor of an additional Sergeant position plus one additional Community Services Officer position. The reorganization reinstated the number of approved officers available in the force but has likely resulted in a tradeoff between quantity and experience Secondly, the Administrative Services Director position was eliminated. Lastly, the methodology for estimating revenue was changed from “conservative” to “most likely” in FY 2018/19 and the same estimating methodology was continued in FY 2019/20 as well. The change in forecasting methodology comes with the added risk of revenue misses. FY 2018/19 in fact had several substantial revenue misses. Still, the City did realize a year-end surplus mostly due to understaffing at the Police Department. With the Police Department now fully staffed those cost savings are not likely to be realized in FY 2019/20. In January of 2020 the City will be required by Municipal Code to conduct a salary compensation study. The results of the study are expected to yield at least a 5% increase in Police Department salaries and benefits. This will place further strain on the general fund budget and will most likely drive the budget from a surplus to a deficit. Requests for Information This financial report is designed to provide our citizens, taxpayers, creditors and government regulators with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Additional information may be found on our website at www.fortbragg.com. Below is the contact address for questions about the report or requests for additional financial information.

City of Fort Bragg Finance Department 416 No. Franklin St.

Fort Bragg, CA 95437 707-961-2825

http://www.fortbragg.com/

20

BASIC FINANCIAL STATEMENTS

City of Fort Bragg, California Statement of Net Position June 30, 2019

21

Governmental Business-typeActivities Activities Total

ASSETS

Current Assets: Cash & investments 7,152,224$ 5,974,065$ 13,126,289$ Restricted cash & investments - 108,064 108,064 Accounts receivable - 917,902 917,902 Taxes receivable 5,096 - 5,096 Intergovernmental receivable 250,531 2,339,229 2,589,760 Loans/Notes receivable 2,694,387 1,466 2,695,853 Other receivable 733,581 1,721,515 2,455,096 Internal balances 554,437 (554,437) - Inventory & prepaid items 3,547 53,618 57,165 Total current assets 11,393,803 10,561,422 21,955,225 Capital assets: Capital assets Nondepreciable 13,299,770 12,101,565 25,401,335 Depreciable 28,237,598 32,581,758 60,819,356 Total capital assets 41,537,368 44,683,323 86,220,691 Total assets 52,931,171 55,244,745 108,175,916

DEFERRED OUTFLOWS OF RESOURCES

Deferred loss on debt refunding 6,093 150,178 156,271 OPEB, deferred outflow 292,648 - 292,648 Pension plan, deferred outflow 2,245,971 247,934 2,493,905

Total deferred outflows of resources: 2,544,712 398,112 2,942,824

Total assets and deferred outflows of resources : 55,475,883$ 55,642,857$ 111,118,740$

LIABILITIESCurrent liabilities: Accounts Payable 242,138$ 1,056,620$ 1,298,758 Accrued payroll 99,204 15,574 114,778 Accrued liabilities 2,392 - 2,392 Interest payable 395 16,384 16,779 Unearned revenue - 19,672 19,672 Deposits payable 149,492 150,166 299,658 Compensated absences current 65,889 6,479 72,368 Lease payable 143,007 - 143,007 Due within one year 335,242 430,954 766,196 Total current liabilities 1,037,759 1,695,849 2,733,608

Noncurrent liabilities Compensated absences long term 593,004 71,510 664,514 Landfill post-closure 821,556 - 821,556 CalPers side fund 551,429 - 551,429 Due after one year - 6,877,492 6,877,492 Net pension liability 8,267,496 920,701 9,188,197

Net OPEB obligation 3,215,490 - 3,215,490 Total noncurrent liabilities 13,448,975 7,869,703 21,318,678

Total liabilities 14,486,734 9,565,552 24,052,286

DEFERRED INFLOWS OF RESOURCES

OPEB, deferred inflow 52,318 - 52,318 Pension, deferred inflow 712,990 69,466 782,456

Total deferred inflows of resources: 765,308 69,466 834,774 Total liabilities and deferred inflows : 15,252,042 9,635,018 24,887,060

NET POSITION

Net investment in capital assets 41,400,454 37,805,831 79,206,285 Restricted Gas tax 19,843 - 19,843 State and federal grants 73,398 - 73,398 Special sales tax 878,623 - 878,623 Asset forfeiture 307,086 - 307,086 Debt service - 108,064 108,064

Unrestricted (deficit) (2,455,563) 8,093,944 5,638,381

Total net position 40,223,841 46,007,839 86,231,680

Total liabilities, deferred inflows and net position 55,475,883$ 55,642,857$ 111,118,740$

The accompanying notes are an integral part of these basic financial statements.

City of Fort Bragg, California Statement of Activities For the year ended June 30, 2019

22

Operating Capital

Charges for Grants and Grants and

Functions/Programs Expenses Services Contributions Contributions

Primary government:


General government 2,384,428$ 1,107,859$ -$ -$

Public safety 4,338,230 370,988 289,261 -

Public works 2,979,152 1,154,824 338,307 957,245

Community development 1,056,350 293,124 137,312 -

Interest and fiscal charges 47,277 - - -

Total governmental activities 10,805,437 2,926,795 764,880 957,245


Water 1,920,010 3,076,775 - -

Wastewater 2,673,768 3,598,546 - 2,339,229

CV Starr Center 2,722,366 711,205 - -

Total business-type activities 7,316,144 7,386,526 - 2,339,229

Total primary government 18,121,581$ 10,313,321$ 764,880$ 3,296,474$

General revenues:

Taxes:

Property taxes, levied for general purposes

Sales and use taxes, levied for general purposes

Transient occupancy tax, levied for general purposes

Other taxes, levied for general purposes

Use of money and property 410 405

Unrealized gains and losses

Other general revenues 410 409

Total general revenues

Transfers

Total general revenues, and transfers

Change in net position

Net position:

Beginning of year

Prior Year Adjustments (OPEB Liability)

Beginning, as adjusted

End of year


Program Revenues

City of Fort Bragg, California Statement of Activities For the year ended June 30, 2019

23

Governmental Business-Type

Activities Activities Totals

(1,276,569)$ -$ (1,276,569)$

(3,677,981) - (3,677,981)

(528,776) - (528,776)

(625,914) - (625,914)

(47,277) - (47,277)

(6,156,517) - (6,156,517)

- 1,156,765 1,156,765

- 3,264,007 3,264,007

- (2,011,161) (2,011,161)

- 2,409,611 2,409,611

(6,156,517) 2,409,611 (3,746,906)

1,074,931 249,499 1,324,430

1,728,222 878,737 2,606,959

2,640,275 - 2,640,275

762,165 - 762,165

66,216 168,000 234,216

194,814 - 194,814

7,757 77,243 85,000

6,474,380 1,373,479 7,847,859

(1,029,464) 1,029,464 -

5,444,916 2,402,943 7,847,859

(711,601) 4,812,554 4,100,953

40,935,442 41,195,285 82,130,727

- -

40,935,442 41,195,285 82,130,727

40,223,841$ 46,007,839$ 86,231,680$

Net (Expense) Revenue and


24

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25

Fund Description

Governmental Funds: Governmental funds are used for taxes and grants.

General

CDBG Program Income Special Revenue

Housing Successor Agency Special Revenue

Special Sales Tax - Street Repair Special Revenue Accounts for the City’s Special Sales Tax for Street and Alley

Repairs.

Street Resurfacing Capital Projects Accounts for Street Resurfacing Capital Projects Performed on a

Regular Basis with Special Sales Tax for Street and Alley Repairs.

Accounts for activities related to housing activities of the former

Fort Bragg Redevelopment Agency.

FUND FINANCIAL STATEMENTS

Primary operating fund of the City; accounts for all activities

except those legally or administratively required to be accounted

for in other funds.

MAJOR FUNDS

Accounts for activities related to housing rehabilitation and

business assistance loans provided with CDBG funding.

City of Fort Bragg, California Balance Sheet Governmental Funds June 30, 2019

26

General Fund

CDBG Program

Income Special

Revenue Fund

Housing Successor

Agency Special

Revenue Fund

ASSETS:Current Assets:

Cash & Investments 2,063,444$ 10,045$ 422,912$

Taxes Receivable 1,354 - -

Intergovernmental receivable - - -

Loans/Notes receivable 5,323 2,175,624 293,374

Other receivable 733,570 - -

Due from other funds 707,023 - -

Prepaid items 1,171 - -

Inventory 2,376 - -

Total assets 3,514,261 2,185,669 716,286

Total assets and deferred outflows 3,514,261$ 2,185,669$ 716,286$

LIABILITIES , DEFERRED INFLOWS AND FUND BALANCES

Current liabilities:

Accounts Payable 211,057$ -$ -$

Accrued Payroll 94,412 - -

Accrued Liabilities - - -

Deposits payable 67,166 - -

Due to other Funds - - -

Total liabilities 372,635 - -

Total noncurrent liabilities - - -

Total liabilities 372,635 - -

Deferred inflows of resources:

Unavailable revenue - 2,187,448 293,375

Total deferred inflows of resources: - 2,187,448 293,375

Total liabilities and deferred inflows : 372,635 2,187,448 293,375

Fund Balances:

Non-spendable

Prepaids and Inventory 3,547 - -

Loans/Notes receivable 5,323 - -

Restricted - - -

Committed 1,681,783 - -

Assigned - - 422,911

Unassigned (deficit) 1,450,973 (1,779) -

Total fund balances 3,141,626 (1,779) 422,911

Total liabilities deferred inflows and fund balances 3,514,261$ 2,185,669$ 716,286$


Major Funds

City of Fort Bragg, California Balance Sheet Governmental Funds June 30, 2019

27

Special Sales Tax

Special Revenue

Street

Resurfacing

Capital Projects

Non-major

Governmental

Funds Totals

768,949$ 1,754,000$ 1,290,828$ 6,310,178$

- - 3,742 5,096

109,674 - 140,857 250,531

- - 220,066 2,694,387

- - 11 733,581

- - - 707,023

- - - 1,171

- - - 2,376

878,623 1,754,000 1,655,504 10,704,343

878,623$ 1,754,000$ 1,655,504$ 10,704,343$

-$ -$ 510$ 211,567$

- - - 94,412

- - 2,392 2,392

- - 82,326 149,492

- 26,132 126,454 152,586

- 26,132 211,682 610,449

- - - -

- 26,132 211,682 610,449

- - 216,407 2,697,230

- - 216,407 2,697,230

- 26,132 428,089 3,307,679

- - - 3,547

- - - 5,323

878,623 - 388,327 1,266,950

- - 1,681,783

- 1,727,868 853,806 3,004,585

- - (14,718) 1,434,476

878,623 1,727,868 1,227,415 7,396,664

878,623$ 1,754,000$ 1,655,504$ 10,704,343$

Major Funds

City of Fort Bragg, California Reconciliation of the Governmental Funds Balance Sheet To the Statement of Net Position June 30, 2019

28

Total fund balances - total governmental funds 7,396,664$

-

40,676,447

Loss on refunding of debt 95,837

Less: accumulated amortization (89,744) 6,093

Compensated absences (658,893)

Lease payable (143,007)

Landfill post-closure (1,026,945)

CalPERS side fund (681,282)

Net OPEB obligation (3,215,490)

Net pension liability (8,267,496) (13,993,113)

2,697,230

(395)

Deferred outflows - OPEB 292,648 Deferred inflows - OPEB (52,318)

Deferred outflows - Pension 2,245,971 Deferred inflows - Pension (712,990) 1,773,311

Current assets 842,046

Noncurrent assets 860,921

Current liabilities (35,363)

Noncurrent liabilities - 1,667,604

Net Position of governmental activities 40,223,841$

Amounts reported for governmental activities in the Statement of Net Position are different

because:

Long-term receivables are not available to pay current period expenditures and,

therefore, are deferred in the governmental funds.

Internal services funds are used by management to charge the costs of certain

activities, such as fleet services, to individual funds. The assets and liabilities of the

internal service funds are:

The accompanying notes are an integra l part of these bas ic financia l s tatements .

Capital assets used in governmental activities are not current financial resources and,

therefore, are not reported in the governmental funds balance sheet.

Deferred outflows of resources represent losses associated with the refunding of long-

term debt which are deferred and amortized over the period during which the debt is

outstanding. The losses are reported as expenditures of current financial resources in

governmental funds.

Long-term liabilities are not due and payable in the current period and, therefore, are

not reported in the governmental funds balance sheet.

Governmental funds notes receivable from various loan programs are deferred under

the current financial resources measurement focus. The notes receivable are

recognized in the government-wide Statement of Net Position under the accrual basis

of accounting.

Interest payable on long-term debt does not require the use of current financial

resources and, therefore, is not reported in the governmental funds.

Pension obligations result in deferred outflows and inflows of resouces associated

with the actuarial value of contributions, assets, and liaiblities

City of Fort Bragg, California Reconciliation of Fund Basis Balance Sheet To Government-wide Statement of Net Position June 30, 2019

29

Governmental Internal

Funds Changes Services Statement of

Balance Sheet Reclassifications in GAAP Balances Net Position

ASSETS

Current Assets:

Cash & Investments 6,310,178$ -$ -$ 842,046$ 7,152,224$

Taxes Receivable 5,096 - - - 5,096

Intergovernmental receivable 250,531 - - - 250,531

Loans/Notes receivable 2,694,387 - - - 2,694,387

Other receivable 733,581 - - - 733,581

Due from other funds 707,023 (152,586) - - 554,437

Prepaid items 1,171 - - - 1,171

Total current assets 10,701,967 (152,586) - 842,046 11,391,427

Capital assets:

Inventory 2,376 - - - 2,376

Capital assets, net - - 40,676,447 860,921 41,537,368

Total capital assets 2,376 - 40,676,447 860,921 41,539,744

DEFERRED OUTFLOWS OF RESOURCES

Deferred Loss - - 6,093 - 6,093

OPEB, deferred outflow - - 292,648 - 292,648

Pension, deferred outflow - - 2,245,971 - 2,245,971

Total assets and deferred outflows of resources 10,704,343$ (152,586)$ 43,221,159$ 1,702,967$ 55,475,883$

LIABILITIES


Accounts Payable 211,567$ -$ -$ 30,571$ 242,138$

Accrued Payroll 94,412 - - 4,792 99,204

Accrued Liabilities 2,392 - - - 2,392

Interest payable - - 395 - 395

Deposits payable 149,492 - - 149,492

Compensated Absences current - - 65,889 - 65,889

Lease Payable - - 143,007 - 143,007

Due within one year - - 335,242 - 335,242

Due to other funds 152,586 (152,586) - - -

Total current liabilities 610,449 (152,586) 544,533 35,363 1,037,759

Noncurrent liabilities

Compensated Absences long term - - 593,004 - 593,004

Landfill post-closure - - 821,556 821,556

CalPers side fund - - 551,429 551,429

Net Pension Liability - - 8,267,496 - 8,267,496

Net OPEB Obligation - - 3,215,490 - 3,215,490

Total noncurrent liabilities - - 13,448,975 - 13,448,975

Total liabilities 610,449 (152,586) 13,993,508 35,363 14,486,734


Unavailabe revenue 2,697,230 - (2,697,230) - -

OPEB, deferred inflow - - 52,318 - 52,318

Pension, deferred inflow - - 712,990 - 712,990

Total deferred inflows of resources: 2,697,230 - (1,931,922) - 765,308

Total liabilities and deferred inflows : 3,307,679 (152,586) 12,061,586 35,363 15,252,042

Fund Balances: Nonspendable

Prepaids and Inventory 3,547 (3,547) - - -

Loans/Notes receivable 5,323 (5,323) - - -

Restricted 1,266,950 (1,266,950) - - -

Committed 1,681,783 (1,681,783) -

Assigned 3,004,585 (3,004,585) - -

Unassigned (deficit) 1,434,476 (1,434,476) - - - Net position:

Net investment in capital assets - - 41,400,454 860,921 42,261,375

Restricted - - - -

Unrestricted (deficit) - 7,396,664 (10,240,881) 806,683 (2,037,534)

Total fund balances/ net position: 7,396,664 - 31,159,573 1,667,604 40,223,841

Total liabilities, deferred inflows and net position: 10,704,343$ (152,586)$ 43,221,159$ 1,702,967$ 55,475,883$


City of Fort Bragg, California Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year-ended June 30, 2019

30

General Fund

CDBG Program

Income Special

Revenue Fund

Housing

Successor

Agency Special

Revenue Fund

REVENUES:

Taxes and assessments 6,205,593$ -$ -$

Fines and Forfeitures 70,097 - -

Use of Money and Property 261,030 86,066 9,702

Intergovernmental 14,231 - -

Charges for Services 70,403 - -

Licenses and Permits 124,929 - -

Other Revenue 37,230 - -

Operating Grant Revenue 144,628 - -

Capital Grant Revenue - - -

Reimbursements 2,452,787 - -

Other Operating - - -

Total revenues 9,380,928 86,066 9,702

EXPENDITURES:

General Government 2,511,230 - -

Public Safety 3,949,089 - -

Public Works 1,765,323 - -

Community Development 773,312 - 4,239

Capital Outlay - - -

Principal 174,556 - -

Interest and fiscal charges 10,977 - -

Total expenditures 9,184,487 - 4,239

REVENUES OVER (UNDER) EXPENDITURES 196,441 86,066 5,463

OTHER FINANCING SOURCES (USES):

Transfers In 84,107 - -

Transfers out (98,396) (93,567) -

Total other financing sources and uses (14,289) (93,567) -

REVENUES AND OTHER FINANCING SOURCES

OVER (UNDER) EXPENDITURES AND OTHER

FINANCING (USES): 182,152 (7,501) 5,463

FUND BALANCES (DEFICITS):

Beginning of year 2,959,474 5,722 417,448

End of year 3,141,626$ (1,779)$ 422,911$


Major Funds

City of Fort Bragg, California Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds June 30, 2018

31

Special Sales Tax

Special Revenue

Street

Resurfacing

Capital Projects

Other

Governmental

Funds Totals

878,944$ -$ 53,889$ 7,138,426$

- - 47,610 117,707

25,542 - 25,452 407,792

- - 613,205 627,436

- - 57,322 127,725

- - 2,728 127,657

- - - 37,230

- - - 144,628

- - - -

- - - 2,452,787

- - 100 100

904,486 - 800,306 11,181,488

- - 11,210 2,522,440

- - 240,007 4,189,096

3,951 198,633 1,967,907

- - 272,157 1,049,708

- 281,980 - 281,980

- - - 174,556

- - - 10,977

3,951 281,980 722,007 10,196,664

900,535 (281,980) 78,299 984,824

- 2,035,980 709,494 2,829,581

(1,911,952) - (1,853,272) (3,957,187)

(1,911,952) 2,035,980 (1,143,778) (1,127,606)

(1,011,417) 1,754,000 (1,065,479) (142,782)

1,890,040 (26,132) 2,292,894 7,539,446

878,623$ 1,727,868$ 1,227,415$ 7,396,664$

Major Funds

City of Fort Bragg, California Reconciliation of Fund Basis Statement to Government-wide Statement of Activities For the Year-ended June 30, 2019

32


Functions/Programs

Fund Based

Totals

Compensated

Absences/

Debt Service

Internal

Service Depreciation

Capital Asset

(Additions)/

Retirements

OPEB

Obligation

Amort-

ization

Pension

plan

Government-

wide Totals


General government 2,522,440$ 39,516$ (450,534)$ 81,482$ -$ 34,112$ -$ 157,412$ 2,384,428$

Public safety 4,189,096 - - 149,134 - -$ - - 4,338,230

Public works 1,967,907 (178,863) - 1,190,108 - -$ - - 2,979,152

Community development 1,049,708 - - - - -$ 6,642 - 1,056,350

Capital outlay 281,980 - - - (281,980) - - - -

Debt service/Interest 185,533 (138,256) - - - - - - 47,277

Total governmental activities 10,196,664$ (277,603)$ (450,534)$ 1,420,724$ (281,980)$ 34,112$ 6,642$ 157,412$ 10,805,437$

City of Fort Bragg, California Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year-ended June 30, 2019

33


Revenues and other financing sources over (under) expenditures

and other financing (uses): (142,782)$

Capital asset purchases capitalized 281,980

Depreciation expense (1,420,724) (1,138,744)

(58,188)

Capital lease obligations 137,341

CalPERS side fund 74,553 211,894

Amortization of deferred loss on refunding (6,642) (6,642)

Change in interest payable 915

Landfill closure liability 178,863

Change in compensated absences (39,516) 140,262

Net OPEB obligation (34,112)

Net Pension obligation (231,965) (266,077)

450,534

98,142 548,676

Certain special items

Change in Net Position of governmental activities (711,601)$

Amounts reported for governmental activities in the Statement of Activities are different

because:

Governmental funds report capital outlays as expenditures while governmental activities

report depreciation expense to allocate those expenditures over the life of the assets:

Certain notes receivable are reported in the governmental funds as expenditures and

then offset by a deferred revenue as they are not available to pay current expenditures.

Likewise, when the note is collected it is reflected in revenue. This is the net change

between notes receivable collected and issued.

Repayment of debt principal is an expenditure in the governmental funds, but the

repayment reduces long-term liabilities in the Statement of Net Position:

Debt issuance costs are expenditures in the governmental funds, but these costs are

capitalized and amortized on the Statement of Net Position. This is the amount of

amortization in the current period.

Some expenses reported in the Statement of Activities do not require the use of current

financial resources and, therefore, are not reported as expenditures in governmental

funds:

Certain employee benefit obligations are recorded on a pay-as-you-go basis in the

governmental funds, but are accrued as liabilities in the Statement of Net Position:

Internal services funds are used by management to charge the costs of certain activities,

such as fleet services, to individual funds. The change in Net Position of the Internal

Service Funds net of transfers in of $98,142 are included in the governmental activities in

the government-wide Statement of Net Position.

City of Fort Bragg, California Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual – General and Major Special Revenue Funds For the Year-ended June 30, 2019

34

Original Final Actual

REVENUES:

Taxes and assessments 6,403,661$ 6,403,661$ 6,205,593$ (198,068)$

Fines and forfeitures 42,500 42,500 70,097 27,597

Use of money and property 59,500 59,500 261,030 201,530

Intergovernmental 31,000 31,000 14,231 (16,769)

Charges for services 68,200 68,200 70,403 2,203

Licenses and permits 114,063 114,063 124,929 10,866

Other revenue 51,570 51,570 37,230 (14,340)

Operating grant revenue 201,300 201,300 144,628 (56,672)

Reimbursements 2,588,571 2,588,571 2,452,787 (135,784)

Total revenues 9,560,365 9,560,365 9,380,928 (179,437)

EXPENDITURES:

General government:

City Council 136,534 136,534 140,692 (4,158)

Administrative Services 819,906 819,906 751,545 68,361

Litigation reserve - - 69,313 (69,313)

Finance 471,032 501,432 454,349 47,083

Other - unclassified 1,078,637 1,117,924 1,095,331 22,593

Public Safety:

Police Department 3,765,255 3,765,255 3,538,688 226,567

Fire Department 413,843 413,843 410,401 3,442 Public Works: Administration & engineering 601,698 656,557 641,991 14,566 Parks and facilities 233,931 233,931 232,989 942 Street maintenance 162,419 162,419 126,787 35,632 Storm drains 76,188 76,188 17,892 58,296 Corporation yard 729,602 729,602 699,992 29,610 Traffic and safety 64,460 64,460 45,672 18,788

Community Development 522,231 436,129 438,219 (2,090)

Marketing and Promotions 279,737 351,046 335,093 15,953

Debt service:

Principal 174,556 174,556 174,556 -

Interest and fiscal charges 10,977 10,977 10,977 -

Total expenditures 9,541,005 9,650,758 9,184,487 466,271

REVENUES OVER (UNDER) EXPENDITURES 19,360 (90,394) 196,441 286,835


Transfers In 3,172 3,172 84,107 80,935

Transfers out - - (98,396) (98,396)

Total other financing sources and uses 3,172 3,172 (14,289) (17,461)



FINANCING (USES): 22,532 (87,222) 182,152 269,374


Beginning of year 2,959,474 2,959,474 2,959,474 -

End of year 2,982,006$ 2,872,252$ 3,141,626$ 269,374$


Budgeted Amounts

General Fund

Variance w/Final

Positive

(Negative)

``City of Fort Bragg, California Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual – General and Major Special Revenue Funds For the Year-ended June 30, 2018

35

Original Final Actual Original Final Actual

-$ -$ -$ -$ -$ -$ -$ -$

- - - - - - - -

88,000 88,000 86,066 (1,934) 7,209 7,209 9,702 2,493

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

88,000 88,000 86,066 (1,934) 7,209 7,209 9,702 2,493

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - 4,239 -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 4,239 -

88,000 88,000 86,066 (1,934) 7,209 7,209 5,463 2,493

- - - - - - - -

(150,000) (150,000) (93,567) 56,433 - - - -

(150,000) (150,000) (93,567) 56,433 - - - -

(62,000) (62,000) (7,501) 54,499 7,209 7,209 5,463 2,493

5,722 5,722 5,722 - 417,448 417,448 417,448 -

(56,278)$ (56,278)$ (1,779)$ 54,499$ 424,657$ 424,657$ 422,911$ 2,493$

(continued)

Housing Successor Agency Special Revenue Fund

Budgeted AmountsVariance

w/Final Positive

(Negative)

CDBG Program Income Special Revenue Fund

Budgeted AmountsVariance w/Final

Positive

(Negative)

City of Fort Bragg, California Statement of Revenues, Expenditures and Changes in Fund Balances, continued Budget to Actual – General and Major Special Revenue Funds For the Year-ended June 30, 2019

36

Original Final Actual

REVENUES:

Taxes and assessments 928,120$ 928,120$ 878,944$ (49,176)$

Fines and forfeitures - - - -

Use of money and property 36,195 36,195 25,542 (10,653)

Intergovernmental - - - -

Charges for services - - - -

Licenses and permits - - - -

Other revenue - - - -

Operating grant revenue - - - -

Reimbursements - - - -

Total revenues 964,315 964,315 904,486 (59,829)

EXPENDITURES:

General government:

City Council - - - -

Administrative Services - - - -

Litigation reserve

Finance - - - -

Other - unclassified - - - -

Public Safety: -

Police Department - - - -

Fire Department - - - - Public Works: - Administration & engineering - - - - Parks and facilities - - - - Street maintenance - - 3,951 (3,951) Storm drains - - - - Corporation yard - - - - Traffic and safety - - - -

Community Development - - - -

Marketing and Promotions - - - -

Debt service: -

Principal - - - -

Interest and fiscal charges - - - -

Total expenditures - - 3,951 (3,951)

REVENUES OVER (UNDER) EXPENDITURES 964,315 964,315 900,535 (63,780)


Transfers In - - - -

Transfers out (2,000,000) (2,000,000) (1,911,952) 88,048

Total other financing sources and uses (2,000,000) (2,000,000) (1,911,952) 88,048



FINANCING (USES): (1,035,685) (1,035,685) (1,011,417) 24,268


Beginning of year 1,890,040 1,890,040 1,890,040 -

End of year 854,355$ 854,355$ 878,623$ 24,268$

The accompanying notes are an integral part of these basic financial statements. (concluded)

Special Sales Tax Special Revenue

Budgeted Amounts Variance w/Final

Positive (Negative)

37

Fund

Water Fund

Wastewater Fund

CV Starr Center

ENTERPRISE FUNDS

Description

Accounts for the operation and maintenance of the City’s water

treatment and distribution system.

Accounts for the operation and maintenance of the City’s

wastewater treatment plant and collection facilities.

Accounts for activities related to the CV Starr Community Center.

City of Fort Bragg, California Statement of Net Position Proprietary Funds June 30, 2019

38


Governmental

Activities

Water Wastewater

CV Starr

Center Totals

Internal

Service Funds

ASSETS:

Current Assets:

Cash & Investments 5,034,048$ -$ 940,017$ 5,974,065$ 842,046$

Restricted cash & investments 108,064 - - 108,064 -

Accounts Receivable 318,073 393,538 206,291 917,902 -

Taxes Receivable - - - - -

Intergovernmental receivable - 2,339,229 - 2,339,229 -

Loans/Notes receivable - 1,466 - 1,466 -

Other receivable - 1,721,515 - 1,721,515 -

Total current assets 5,460,185 4,455,748 1,146,308 11,062,241 842,046

Capital assets:

Inventory 41,353 11,287 978 53,618 - Capital assets, net 6,937,902 17,469,095 20,276,326 44,683,323 860,921

Total capital assets 6,979,255 17,480,382 20,277,304 44,736,941 860,921

DEFERRED OUTFLOWS OF RESOURCES:

Deferred Loss 150,178 - - 150,178 - Pension, deferred outflow - 247,934 - 247,934 -

Total assets and deferred outflows of resources 12,589,618$ 22,184,064$ 21,423,612$ 56,197,294$ 1,702,967$

LIABILITIES:


Accounts Payable 67,627$ 587,430$ 401,563$ 1,056,620$ 30,571$

Accrued Payroll - 15,574 - 15,574 4,792

Interest payable 16,386 (2) - 16,384 -

Unearned revenue - 6,466 13,206 19,672 - Deposits payable 150,166 - - 150,166 -

Compensated Absences current 881 2,962 2,636 6,479 -

Due within one year 344,954 86,000 - 430,954 - Due to Other Funds - 554,437 - 554,437 -

Total current liabilities 580,014 1,252,867 417,405 2,250,286 35,363

Noncurrent liabilities:

Compensated Absences long term 10,103 33,916 27,491 71,510 -

Due after one year 1,963,493 4,913,999 - 6,877,492 -

Net Pension Liability - 920,701 - 920,701 - Total noncurrent liabilities 1,973,596 5,868,616 27,491 7,869,703 -

Total liabilities 2,553,610 7,121,483 444,896 10,119,989 35,363

DEFERRED INFLOWS OF RESOURCES:

Pension, deferred inflow - 69,466 - 69,466 -

Total deferred inflows of resources - 69,466 - 69,466 -

Deferred :

Net Position:

Net investment in capital assets 4,974,409 12,555,096 20,276,326 37,805,831 860,921

Restricted for debt service 108,064 - - 108,064 -

Unrestricted 4,953,535 2,438,019 702,390 8,093,944 806,683

Total net position 10,036,008 14,993,115 20,978,716 46,007,839 1,667,604 Total liabilities, deferred inflows

and net position 12,589,618$ 22,184,064$ 21,423,612$ 56,197,294$ 1,702,967$

City of Fort Bragg, California Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year-ended June 30, 2019

39


Governmental

Activities

Water Wastewater CV Starr Center Totals

Internal Service

Funds

OPERATING REVENUES:

Charges for Services 3,046,379$ 3,598,546$ 703,291$ 7,348,216$ -$

Capital Grant Revenue - 2,339,229 - 2,339,229 -

Other Operating 30,396 - 7,914 38,310 5,440

Interdepartmental Charges - - - - 1,262,121

Total operating revenues 3,076,775 5,937,775 711,205 9,725,755 1,277,125

OPERATING EXPENSES:

Personnel Services 771,623 1,252,009 995,222 3,018,854 452,606

Administration 273,767 269,509 24,032 567,308 -

Repairs & Maintenance 55,768 160,834 82,714 299,316 88,842

Materials & Supplies- Enterprise 176,337 334,381 983 511,701 230,547

Utilities 116,867 148,648 274,451 539,966 -

Contractual Services 63,377 143,899 16,831 224,107 2,442

Insurance 12,314 11,770 40,040 64,124 -

Other Operating 9,611 - 559,369 568,980 -

Allocated Overhead - - - - 52,154

Depreciation 357,218 339,621 728,724 1,425,563 147,297

Total operating expenses 1,836,882 2,660,671 2,722,366 7,219,919 973,888

OPERATING INCOME (LOSS) 1,239,893 3,277,104 (2,011,161) 2,505,836 303,237

NONOPERATING REVENUES (EXPENSES):

Property taxes - - 249,499 249,499 -

Sales Taxes - - 878,737 878,737 -

Other nonoperating revenues 19,096 58,147 - 77,243 -

Interest revenues 91,398 58,578 18,024 168,000 -

Interest expense (83,128) (13,097) - (96,225) -

Total nonoperating revenues, net 27,366 103,628 1,146,260 1,277,254 -

NET INCOME (LOSS) BEFORE TRANSFERS 1,267,259 3,380,732 (864,901) 3,783,090 303,237

Transfers In 2,747,584 17,049,886 - 19,797,470 98,142

Transfers out (1,715,822) (17,052,184) - (18,768,006) -

Total transfers 1,031,762 (2,298) - 1,029,464 98,142

Change in net position 2,299,021 3,378,434 (864,901) 4,812,554 401,379

NET POSITION (DEFICIT):

Beginning of year 7,736,987 11,614,681 21,843,617 41,195,285 1,266,225

End of year 10,036,008$ 14,993,115$ 20,978,716$ 46,007,839$ 1,667,604$

City of Fort Bragg, California Statement of Cash Flows Proprietary Funds For the Year-ended June 30, 2019

40


Governmental

Activities

Water Wastewater CV Starr Center Totals

Internal

Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers/users for services provided 3,075,426$ 3,757,675$ 731,265$ 7,564,366$ -$

Cash received from interfund services provided - 554,437 - 554,437 1,277,125

Cash payments to suppliers for goods and services (1,097,068) (1,294,690) (771,998) (3,163,756) (365,667)

Cash payments to employees for services (784,428) (1,263,325) (1,002,729) (3,050,482) (463,158)

Net cash provided by operating activities 1,193,930 1,754,097 (1,043,462) 1,904,565 448,300

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers received 2,747,584 17,049,886 - 19,797,470 98,142

Transfers paid (1,715,822) (17,052,184) - (18,768,006) -

Taxes received - - 1,128,236 1,128,236 -

Net cash used by noncapital financing activities 1,031,762 (2,298) 1,128,236 2,157,700 98,142

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (468,298) (9,656,736) (36,121) (10,161,155) (102,406)

Principal paid on long term debt (395,778) (55,000) - (450,778) -

Interest paid on long term debt (83,128) (13,097) - (96,225) -

Deferred loss on defeasance 30,035 - - 30,035 -

Contributions received for capital purposes 19,096 3,336,631 - 3,355,727 -

Net cash (used) by capital and related financing activities (898,073) (6,388,202) (36,121) (7,322,396) (102,406)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 91,398 58,578 18,024 168,000 -

Net cash provided by investing activities 91,398 58,578 18,024 168,000 -

Net increase (decrease) in cash and cash equivalents 1,419,017 (4,577,825) 66,677 (3,092,131) 444,036

CASH AND CASH EQUIVALENTS:

Beginning of year 3,723,095 4,577,825 873,340 9,174,260 398,010

End of year 5,142,112$ -$ 940,017$ 6,082,129$ 842,046$

Presentation in Statement of Financial Position:

Cash and investments 5,034,048$ -$ 940,017$ 5,974,065$ 842,046$

Restricted cash and investments 108,064 - - 108,064 -

Total Cash and investments 5,142,112$ -$ 940,017$ 6,082,129$ 842,046$

Reconciliation of income from operations to net

cash provided by operating activities:

Operating income 1,239,893$ 3,277,104$ (2,011,161)$ 2,505,836$ 303,237$

Adjustments to reconcile operating income

to net cash provided by operating activities:

Depreciation 357,218 339,621 728,724 1,425,563 147,297

Pension 28,998

(Increase) decrease in current assets:

Accounts receivable (18,960) 159,039 5,533 145,612 -

Intergovernmental receivables - (2,339,229) 14,441 (2,324,788) -

Inventory and prepaids 4,973 (2,572) 201 2,602 -

Prepaid items 20,447

Increase (decrease) in l iabilities:

Accounts payable (394,000) (223,077) 226,221 (390,856) (12,129)

Accrued payroll - 1,065 - 1,065 (10,552)

Accrued liabilities -

Deferred revenues 9,039 90 86 9,215 -

Deposits payable 8,572 - - 8,572 -

Compensated absences (12,805) (41,379) (7,507) (61,691) -

Due to other funds - 554,437 - 554,437 -

Net cash provided by operating activities 1,193,930$ 1,754,097$ (1,043,462)$ 1,875,567$ 448,300$

41

Fund

Private Purpose Trust Fund

Successor Agency - Fort Bragg Redevelopment Agency

FIDUCIARY ACTIVITIES

Accounts for funds collected and disbursed for the

dissolution of the former Fort Bragg Redevelopment Agency

related to Administration and Retirement of enforceable

obligations

Private Purpose Trust Funds are used for resources held for other individuals and entities in a manner similar to

private enterprise.

Description

City of Fort Bragg, California Statement of Fiduciary Net Position Fiduciary Activities June 30, 2019

42


Successor Agency

Former Fort Bragg

Redevelopment

Agency

ASSETS AND DEFERRED OUTFLOWS

Cash & Investments 142,861$

Total current assets 142,861 Deferred outflows of resources:

Deferred Loss on debt refunding 84,802 Total deferred outflows of resources 84,802

Total assets and deferred outflows of resources 227,663$

LIABILITIES , DEFERRED INFLOWS

AND NET POSITION


Interest payable 36,759$ Due within one year 160,000 Total current liabilities 196,758

Noncurrent liabilities Due after one year 3,305,839

Total noncurrent liabilities 3,305,839


Unavailable revenue 267,938 Total liabilities and deferred inflows of resources 3,770,535

Net Position (Deficit): (3,542,872)

Total liabilities and net position 227,663$

City of Fort Bragg, California Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds For the Year-ended June 30, 2019

43


Successor Agency

Former Fort Bragg

Redevelopment

Agency

ADDITIONS:

Property taxes 375,278$

Total revenues 375,278

DEDUCTIONS:

Community Development 122,558

Interest and trustee fees 107,356

Total expenses 229,914

CHANGE IN FIDUCICARY NET ASSETS 145,364

NET ASSETS (DEFICITS):

Beginning of year (3,688,236)

End of year (3,542,872)$

44

NOTES TO BASIC FINANCIAL STATEMENTS

City of Fort Bragg, California Index to the Notes to the Basic Financial Statements For the year ended June 30, 2019

45

Page Note 1 - Summary of Significant Accounting Policies ..................................................................................... 46

A. Description of Government-Wide Financial Statements ....................................................................... 46 B. Reporting Entity ...................................................................................................................................... 46 C. Basis of Presentation .............................................................................................................................. 47 D. Measurement Focus ............................................................................................................................... 49 E. Budgetary Information ........................................................................................................................... 50 F. Unearned Revenue ................................................................................................................................. 51 G. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/ Fund Balance .......................................................................................................................................... 52 H. Revenues, Expenditures/Expenses ........................................................................................................ 57 I. Use of Estimates ...................................................................................................................................... 59 J. New and Closed Funds ............................................................................................................................ 59 K. Reclassifications ...................................................................................................................................... 59 L. Other Post-Employment Benefits (OPEB) ............................................................................................... 59

Note 2 – Cash and Investments ....................................................................................................................... 60 Note 3 – Accounts Receivable .......................................................................................................................... 63 Note 4 – Loans and Notes Receivable .............................................................................................................. 64 Note 5 – Capital Assets ..................................................................................................................................... 65 Note 6 – Accounts Payable and Accrued Liabilities ......................................................................................... 67 Note 7 – Long-term Liabilities .......................................................................................................................... 67 Note 8 – Net Position/Fund Balances .............................................................................................................. 72 Note 9 – Interfund Transactions ...................................................................................................................... 74 Note 10 – Risk Management ............................................................................................................................ 76 Note 11 – Public Employee Retirement System .............................................................................................. 77 Note 12 – Other Post-Employment Benefits ................................................................................................... 83 Note 13 – Successor Agency for Trust for Assets of Former Redevelopment Agency ................................... 87 Note 14 – Commitments and Contingencies ................................................................................................... 89 Note 15 – New Accounting Pronouncements.................................................................................................. 90

City of Fort Bragg, California Notes to the Basic Financial Statements For the year ended June 30, 2019

46

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the City of Fort Bragg (City) have been prepared in conformity with accounting principles (USGAAP) generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant principles are described below. A. Description of Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fiduciary fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other non-exchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. B. Reporting Entity The City of Fort Bragg was incorporated August 5, 1889, under the applicable laws and regulations of the State of California. The City operates under a Council-City Manager form of government and provides a variety of services including public safety (police and fire); streets and highways; wastewater collection, treatment, and disposal; water treatment; planning and zoning; public improvement and redevelopment; and general administrative services. The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended Component Units Because of their relationship with the City and the nature of their operations, component units are, in substance, part of the City’s operations and, accordingly, the activities of these component units are combined, or blended with the activities of the City for purposes of reporting in the accompanying basic financial statements. The basis for blending the component units is that their governing bodies are substantially the same as the City’s Council.

Fort Bragg Municipal Improvement District No. 1 (District) includes all of the funds and operations for the City’s wastewater collection and treatment processes. The District is governed by a Board of Directors comprised of the members of the Fort Bragg City Council. The City of Fort Bragg exercises significant financial and management control over the District. The activities of the District are reported as a major enterprise fund within the City’s financial statements. Complete financial statements of the District can be obtained directly from the City of Fort Bragg, 416 N. Franklin St., Fort Bragg, CA 95437.


47

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

C. Basis of Presentation The accounts of the City are organized and operated on the basis of funds, each of which is defined as a separate fiscal and accounting entity with a self-balancing set of accounts. These funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. In accordance with Governmental Accounting Standards Board Statement No. 34 (GASB 34), “Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments,” the financial statements consist of the following: ● Government-wide financial statements, ● Fund financial statements, and ● Notes to the financial statements Government-wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government’s enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The Statement of Net Position and the Statement of Activities report information on all of the non-fiduciary activities of the primary government (the City) and its component units. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City’s water and wastewater functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the City’s governmental activities. Direct expenses are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational need of a particular program, and (c) fees, grants, and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.


48


C. Basis of Presentation, Continued

Fund Financial Statements

The fund financial statements provide information about the City’s funds, including its fiduciary fund and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in specialized funds.

The Community Development Block Grant (CDBG) Program Income Fund special revenue fund was established to account for program income generated by CDBG funded projects. The funds are used for activities that benefit low- and moderate-income persons to ensure decent affordable housing and to create jobs through the expansion and retention of businesses.

The Housing Successor Agency special revenue fund was established to account for the housing assets, rights, power, duties, obligations and functions previously performed by the Redevelopment Agency in administering its Low and Moderate Income Housing Fund.

The Special Sales Tax Street Repair Fund special revenue fund is used to account for revenue received from local sales taxes restricted to street repairs.

The Street Resurfacing Project Fund is a capital project fund used to account for costs associated with the Street Resurfacing project and Street Structural Repair project. This project is funded with local sales taxes collected specifically for street maintenance and repair.

The City reports the following major proprietary funds:

The Water enterprise fund accounts for the activities of the City’s water treatment and distribution operations.

The Wastewater enterprise fund accounts for the activities of the Fort Bragg Municipal Improvement District No. 1 which provides the City’s wastewater collection, treatment, and disposal operations. The C.V. Starr Center enterprise fund accounts for all operations of the C.V. Starr Center, including the local sales tax restricted to funding the operations of the C.V. Starr Center and the property taxes collected by the City as part of a Property Tax Exchange agreement.


49

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Presentation, Continued Additionally, the City reports the following fund types:

Internal Service Funds account for maintenance and repair of City facilities, information technology, and vehicle operations that provide services to other departments of the City on a cost reimbursement basis.

The Private-Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the Fort Bragg Redevelopment Successor Agency (Successor Agency). The Successor Agency operates under the auspices of a legislatively formed Oversight Board comprised of representatives of the local agencies that serve the redevelopment project area. The Oversight Board, in its fiduciary capacity, has authority over the operations and the timely dissolution of the former RDA. It is tasked with fulfilling the obligations of the former RDA, and is also responsible for revenue collection, maintaining necessary bond reserves, and disposing of excess property.

During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding at fiscal year-end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Further, certain activity occurs during the fiscal year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. D. Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.


50


D. Measurement Focus and Basis of Accounting, continued

The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of a fiscal year-end). Expenditure-driven grants are recognized as revenue when eligible expenditures have been incurred against a fully executed grant agreement. Such accrued revenue is considered available even if it is not received within 60 days of year-end. This method provides improved reporting and control at the program level because it appropriately matches funding sources and uses. All other revenue items are considered to be measurable and available only when cash is received by the City.

Proprietary and private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water and Wastewater enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation/amortization on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

E. Budgetary Information

1) Budgetary basis of accounting Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the general fund and enterprise funds. The capital projects funds are appropriated on a project-length basis. Other special revenue funds do not have appropriated budgets since other means control the use of these resources (e.g., grant awards and endowment requirements) and sometimes span a period of more than one fiscal year.


51

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Budgetary Information, Continued

The City Council follows the following procedures in establishing the budgetary data reflected in the required supplementary information:

Before the end of each fiscal year, the City Manager and Finance Director prepare and submit to the City Council a proposed budget for the subsequent fiscal year. The budget includes proposed expenditures and the means for financing them.

The City Council reviews the proposed budget in public hearings which provides interested citizens opportunity to comment. The Council may add to, subtract from, or change appropriations, but may not change the form of the budget.

Prior to July 1, or soon after, the budget is legally adopted by the City Council through resolution. The appropriated budget is prepared by fund, function, and department. The City’s department heads may make transfers of appropriations within a department with City Manager approval. Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. Appropriations in all budgeted funds lapse at the end of the fiscal year unless they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. Valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are brought forward and become part of the subsequent year’s budget pursuant to City policy.

F. Unearned Revenue

Under both the accrual and modified accrual basis of accounting, revenue may be recognized only when earned. Therefore, the government-wide statement of net position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of fiscal year-end, but not yet earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for unearned revenue. Under the modified accrual basis of accounting, it is not enough that revenue had been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report unearned revenues, in connection with receivables for revenue not considered available to liquidate, as deferred inflows of resources.


52

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

1) Cash and cash equivalents The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. 2) Investments Investments for the City and its component units are reported at fair value (generally based on quoted market prices).

3) Inventories and prepaid items Inventories for both governmental and proprietary funds consist principally of materials and supplies held for consumption and are valued at cost, approximating fair value, using the first-in, first-out (FIFO) method. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Inventories recorded in the governmental funds do not reflect current appropriable resources and thus, an equivalent portion of fund balance is shown as non-spendable. Certain payments to vendors represent costs applicable to future accounting periods and would be recorded as prepaid items in both the government-wide and fund financial statements. The City had $1,171 in prepaid expenses in governmental activities as of June 30, 2019. 4) Capital Assets Capital assets, which include land, buildings, infrastructure (roads, sidewalks and similar items), and machinery and equipment, are reported in the applicable governmental or business-type activities column in the governmental-wide financial statements. Capital assets, except for infrastructure assets, are defined by the City as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of two years. For infrastructure assets the same estimated minimum useful life is used (in excess of two years), but only those infrastructure projects that cost more than $50,000 are reported as capital assets.

In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the City chose to include all such items regardless of their acquisition date or amount. The City was able to estimate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost.


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G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance,

Continued The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets, donated works of art and similar items as well as capital assets received in a service concession arrangement are reported at acquisition value. During the current fiscal period, infrastructure projects that were incomplete are reported as “construction in progress.”

Interest is capitalized on the construction of major assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. For the fiscal year ended June 30, 2019, there were no projects meeting the criteria for interest capitalization.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Capitalization thresholds are $5,000 for any single item.

Land and construction in progress are not depreciated. Property, plant, equipment, and infrastructure of the City are depreciated using the straight-line method using the following estimated useful lives:

Capital Asset Class

Estimated

Useful Life

Buildings 40 -75 years

Infrastructure 10 - 50 years

Utility Plant 10 - 50 years

Machinery & Equipment 3 - 40 years

Vehicles 5 - 10 years

Improvements 5 - 30 years 5) Net position flow assumption

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net assets and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied, due to the nature of the restrictions.


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G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued

6) Deferred outflows/inflows of resources

In addition to assets, the statement of net 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 position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items reported as a deferred outflow of resources. The first item, deferred loss on refunding, is reported in the government-wide statement of net position. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second item is a deferred charge on OPEB Trust plan contributions in the government-wide statement of net position. The third item is a deferred charge on pension plan contributions in the government-wide statement of net position.

In addition to liabilities, the statement of 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 position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items reported as a deferred inflow of resources. The first item arises only under the modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: sales taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second deferred inflow of resources is the net difference between projected and actual earnings on OPEB Trust plan investments and is reported in the government-wide statement of net position. The third deferred inflow of resources is the net difference between projected and actual earnings on pension plan investments and is reported in the government-wide statement of net position.

7) Fund Balance flow assumptions

Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.


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G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance,

Continued

8) Net Position/Fund Balance

GASB Statement No. 63 adds the concept of Net Position, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis. Net Position represents the difference between assets and liabilities and are divided into three captions under GASB Statement No. 34. These captions apply only to Net Position as determined at the government-wide level, and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements and funds restricted for various purposes, such as low and moderate income housing, community development, streets and roads, and public safety.

Unrestricted describes the portion of Net Position which is not restricted as to use.

GASB Statement No. 54 establishes fund balance classifications for the Fund Financial Statements that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.

Non-spendable Fund Balance – This amount is comprised of net position that cannot be spent because of their form or must remain intact pursuant to legal or contractual requirements. Restricted Fund Balance – This balance is comprised of net position that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Committed Fund Balance – This balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council (Council) is the highest level of decision-making authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.

Assigned Fund Balance – This balance is intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The Council has


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by resolution authorized the Finance Director to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

Unassigned Fund Balance – This balance represents residual net resources or total fund balance in the General Fund in excess of non-spendable, restricted, committed and assigned fund balance (surplus). In other governmental funds the balance represents the excess of non-spendable, restricted, and committed fund balance over total fund balance (deficit).

The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

9) Restricted Assets Certain cash and investments in the Water Fund are held by the City’s fiscal agents and classified as restricted assets on the statement of net position because their use is limited by applicable bond or other covenants.

10) Lease Obligations The City leases various assets under both operating and capital lease agreements. In the government-wide and proprietary funds’ financial statements, capital leases and the related lease obligations are reported as liabilities in the applicable governmental activities or proprietary funds’ statement of net position.


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11) Encumbrances

Encumbrances resulting from issuing purchase orders as a result of normal purchasing activities approved by appropriate authorities as of June 30, 2019, are summarized below.

Fund Amount

General Fund 50,414$

2016 CDBG Grants 152,224

Street Resurfacing Capital Projects 16,740

Fleet & Equipment Services 62,199

Water Enterprise 611,248

Wastewater Enterprise 10,273,555

11,166,380$

12) Long-Term Obligations

In the government-wide financial statements, the proprietary fund financial statements, and the private-purpose trust fund, long-term debt and other long-term obligations are reported as liabilities. Initial-issue bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Amortization of bond premiums or discounts is included as a component of interest expense.

H. Revenues and expenditures/expenses

1) Program revenues

Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes (excluding those dedicated for specific purposes) and other internally dedicated resources are reported as general revenues rather than as program revenues.

The City only accrues revenues at fiscal year-end and accrues only those revenues it deems collectible; as such the City has no allowance for uncollectible accounts. Management has determined that uncollectible receivables, if any, would be immaterial based on an analysis of historical trends.

2) Property taxes

Property taxes attach as an enforceable lien on real property and are levied as of July 1st. The City relies on the competency of the County of Mendocino Assessor’s and Auditor-Controller’s (County) offices to properly assess, collect, and distribute property taxes.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Revenues and expenditures/expenses, Continued

The method of allocation used by the County is subject to review by the State of California. The City and the County have adopted the Alternative Method of Tax Apportionment – Teeter Plan. First enacted in 1949, the Teeter Plan provides California counties with an optional alternative method for allocating delinquent property tax revenues. Using the accrual method of accounting under the Teeter Plan, counties allocate property tax revenues based on the total amount of property taxes billed, but not yet collected. In exchange, the counties receive the penalties and interest on delinquent taxes when collected. Mendocino County assesses properties, bills for, and collects secured and unsecured property taxes as follows:

Secured Unsecured

Lien dates January 1 January 1

Levy dates July 1 July 1

Due dates 50% on November 1 July 1

50% on February 1

Delinquent as of December 10 (for November due date) August 31

April 10 (for February due date

3) Compensated absences

Vacation

Earned vacation and a portion of accumulated sick-leave payable upon termination or retirement are accrued as compensated absences. The accrual includes the City’s share of payroll taxes. Regular employees earn vacation hours based on the number of years of continuous service. No more than 240 hours (340 hours after 10 years of continuous service) may be accumulated.

Sick Leave

Regular employees are given credit for eight (8) hours sick-leave for each month of employment with unlimited accumulation. Each employee who has two or more years of service with the City and who separates from City service for any reason, except discharge for cause, is entitled to payment of the monetary equivalent of 30% of unused sick-leave accrued to a maximum of 1,000 hours. This 30% is included in the compensated absences accrual.

4) Proprietary funds operating and non-operating revenues and expenses

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water and wastewater funds are charges to customers for sales and services. The C.V. Starr Center fund has three sources of revenue: property taxes, district sales tax, and user fees. The water and wastewater funds also recognize as


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Revenues and expenditures/expenses, Continued

operating revenue the portion intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues not meeting this definition are reported as non-operating revenues and expenses. Although Internal Service Funds are proprietary in nature, they are funded entirely by internal customers and reported as governmental activities. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

I. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. J. New and Closed Funds During the course of each fiscal year funds may be closed and new funds opened. In FY 2018/19 no funds were closed. The SWRCB (State Water Resources Control Board) grant fund was opened. K. Reclassifications Certain amounts have been reclassified to provide for comparable results on a year to year basis. L. Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Authority’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2017 Measurement Date June 30, 2018 Measurement Period July 1, 2017 to June 30, 2018


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2. CASH AND INVESTMENTS

At June 30, 2019, the City’s pooled cash and investments, classified by maturity, consisted of the following stated at fair value:

Fair

<1 1 to 3 3 to 5 Deposits Market ValueCash equivalents and investments pooledPooled cash, at fair value

Cash in bank -$ -$ -$ 721,893$ 721,893 Petty cash - - - 202 202

Total pooled items - - - 722,095 722,095

Pooled investments, at fair valueInterest obligations

Par Rate7,682,000$ 1.3% - 3.35% Certificates of Deposits 746,731 4,464,578 2,515,384 - 7,726,693

Money Market Funds 108,064 108,064 State of California Local Agency Investment Fund - - - 4,820,362 4,820,362

Total pooled investments - interest obligations 746,731 4,464,578 2,515,384 4,928,426 12,655,119 Total cash equivalents and investments pooled 746,731$ 4,464,578$ 2,515,384$ 5,650,521$ 13,377,214$

Amounts reported in:Governmental activities (unrestricted) 7,152,224$ Business-type activities (unrestricted) 5,974,065 Business-type activities (restricted) 108,064 Fiduciary activities 142,861 Total 13,377,214$

Maturities (in years)

Weighted Average

Investment Type Fair Value Maturity (Years)Certificates of Deposit 7,726,693$ 3.45 Money market funds 108,282 - LAIF 4,820,362 -

Total fair value 12,655,337$

Portfolio weighted average maturity 2.11

2. CASH AND INVESTMENTS, Continued

California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code of the City’s investment policy. During the year ended June 30, 2019, the City’s permissible investments included the following instruments:


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Maximum Maximum

Maximum Percentage Investment

Authorized Investment Type Maturity of Portfolio in One Issuer

Local Agency Investment Fund (State Pool) N/A Unlimited $50 Million

U.S. Treasury Obligations 5 years Unlimited None

U.S. Government Agency Issues 5 years Unlimited None

Repurchase Agreements 90 days 10% None

Bankers' Acceptances (must be dollar denominated) 270 days 40% None

Commercial Paper - A rated minimum 180 days 15% None

Certificates of Deposits - FDIC insured 5 years 50% None

General obligations of any State or Political subdivision - AA rated minimum 5 years 30% None

Money market mutual funds holding - Cash and U.S. Government Obligations N/A None None

Per the City’s investment policy, if special circumstances arise that necessitate the purchase of securities beyond the five year limitation, the requests must be approved by the Council prior to purchase. Investments Authorized by Debt Agreements Investment of debt proceeds held by bond trustees is governed by provisions of the debt agreements. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum

Maximum Percentage Investment

Investments Authorized by Debt Agreements Maturity of Portfolio in One Issuer

U.S. Treasury Obligations 5 years None None

U.S. Government Agency Securities 5 years None None

Bankers Acceptance 270 days 40% 15%

Commercial paper 180 days 15% 15%

Money market mutual funds None None None


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2. CASH AND INVESTMENTS, Continued

Interest rate risk –Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Credit risk – As of June 30, 2019, the City’s investments in money market funds were rated AAA by Standard & Poor’s and Fitch Ratings, and Aaa by Moody’s Investors Service. The State of California Local Agency Investment Fund is not rated. Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s total investments. The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF). LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments Custodial credit risk – deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. At June 30, 2019, the carrying amount of the City’s cash deposits (including fiduciary funds) was $721,893 of which $250,000 was covered by federal depository insurance and $471,893 was collateralized as required by State law (Government Code Section 53630), by the pledging financial institution with assets held in a common pool for the City and other governmental agencies, but not in the name of the City. The California Government Code (Government Code Section 53630) requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2019, the City’s investments were held by the City’s custodial agent, but not in the City’s name, and were insured up to specified limits by the Securities Investor Protection


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2. CASH AND INVESTMENTS, Continued Corporation (SIPC) and supplemental private insurance up to a limit of $150 million. Investment balances equaled $12,655,119. Custodial credit risk – investments. Custodial credit risk – investment generally applied only to direct investments in marketable securities. Custodial credit risk – investment does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as Local Agency Investment Fund). Investment in LAIF The City is a voluntary participant in California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statute, and is chaired by the State Treasurer who is responsible for day to day administration of LAIF. The total amount invested by all public agencies as of June 30, 2019 was $24,584,685,280 of which the City had a balance of $4,820,362. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2019 has a portfolio with market valuation of $105,739,565,000. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 3. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following at June 30, 2019:

Receivables

Governmental Activities

Taxes 5,096$

Intergovernmental 250,531

Other 733,581

989,208$

Business-type activities

Accounts receivable 917,902$

Intergovernmental 2,339,229

Other 1,721,515

4,978,646$


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3. ACCOUNTS RECEIVABLE, continued

These amounts resulted in the following concentrations in receivables: Other Governments 43.4% Individuals/Business 56.6% Significant receivables concentrations (greater than 25%) are as follows: 39% or $2,339,229 of the receivables balance was due from the California State Water Resources Control Board in connection with a reimbursement grant related to the Wastewater Treatment Facility Upgrade project. 29% or $1,721,515 of the receivables balance represents proceeds of the bond issued in connection with the Wastewater Treatment Facility Upgrade project. 4. LOANS AND NOTES RECEIVABLE The City periodically receives Community Development Block Grant (CDBG) funding through the State Housing and Community Development Department to provide housing and economic development loans to individuals and businesses. Repayment terms and interest rates vary depending on the borrower’s funding needs and ability to repay the loan. Interest is accrued on the loans that bear interest. Loans and notes receivable for the year ended June 30, 2019, consisted of the following:

The following are descriptions of the loans and notes receivable outstanding as of June 30, 2019: CDBG Revolving Loans – These are loans issued from CDBG grant funds received by the City or issued from unrestricted CDBG Program Income on hand. Loans are provided from CDBG Economic Development funding to assist local business that will provide or retain jobs. Business loans require repayment of interest and principal. Loans are also provided from CDBG Community Development funds to income-qualified home owners in order to rehabilitate their homes. Terms of housing loans vary depending upon the homeowners’ income and may require payments of interest and principal; or interest only; or loans may be fully deferred for up to 30 years. Mendocino Coast Hospitality Center Loan – On January 12, 2016, the Fort Bragg City Council adopted a Resolution approving the use of 2015 Community Development Block Grant (CDBG) funds for acquisition and rehabilitation of the vacant Old Coast Hotel for the benefit of Mendocino Coast Hospitality Center, Inc. (MCHC). The facility accommodates a variety of homeless and mental health services including transitional housing. The facility is owned and operated by

Beginning Ending

30-Jun-18 Additions Deletions 30-Jun-19

Mendocino Coast Hospitality Center Loan 904,292 - - 904,292

Rural Community Housing Development Corporation Loans 286,625 6,749 - 293,374

Employee Loans 6,867 1,972 (3,516) 5,323

Wastewater Enterprise Capacity fee loan 4,110 (2,644) 1,466

Total loans/notes receivable 2,771,886$ 8,721$ (84,754)$ 2,695,853$


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4. LOANS AND NOTES RECEIVABLE, continued MCHC. This loan is deferred for a term of 20 years. If various conditions are met during the term of the loan, the loan will be forgiven at the end of the 20 year term. Rural Community Housing Development Corporation Loans – These loans are to the Rural Community Housing Development Corporation (RCHDC), a non-profit organization for housing rehabilitation projects within the City. Employee Loans – Employees have the option of entering into equipment purchasing loan plans with the City, which may be utilized to assist the employee to purchase equipment that may be used both on and off duty to improve the employee’s job performance. Capacity Fees Loans –The Fort Bragg City Council approved a deferred payment of capacity fees for a new local business, Overtime Brewing. The loan has a repayment term of 24 months and includes principal repayment plus interest at a rate of 1.14%. 5. CAPITAL ASSETS

Governmental capital asset activity for the year ended June 30, 2019, was as follows:

Balance Balance

June 30, 2018 Additions Deletions June 30, 2019


Nondepreciable assets:

Land 12,952,262$ -$ -$ 12,952,262$

Construction in progress 65,529 281,979 - 347,508

Total nondepreciable assets 13,017,791 281,979 - 13,299,770

Depreciable assets:

Buildings 4,675,797 - - 4,675,797

Machinery, equipment and vehicles 2,021,827 102,408 - 2,124,235

Infrastructure 34,413,370 - - 34,413,370

Total depreciable assets 41,110,994 102,408 - 41,213,402

Total 54,128,785 384,387 - 54,513,172

Accumulated depreciation:

Buildings (3,038,483) (136,328) - (3,174,811)

Machinery, equipment and vehicles (1,118,901) (148,599) (1,267,500)

Infrastructure (7,397,696) (1,135,797) - (8,533,493)

Total accumulated depreciation (11,555,080) (1,420,724) - (12,975,804)

Net depreciable assets 29,555,914 (1,318,316) - 28,237,598

Total net capital assets 42,573,705$ (1,036,337)$ -$ 41,537,368$


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5. CAPITAL ASSETS, Continued Depreciation expense for capital assets was charged to functions as follows:

Business-type capital asset activity for the year ended June 30, 2019, was as follows:

Depreciation expense for capital assets was charged to functions as follows:

General government 81,482$

Public safety 149,134

Public works 1,190,108

1,420,724$

Balance Balance

June 30, 2018 Additions Deletions June 30, 2019


Nondepreciable assets:

Land 785,079$ -$ -$ 785,079$

Construction in progress 3,338,081 9,694,513 (1,716,108) 11,316,486

Total nondepreciable assets 4,123,160 9,694,513 (1,716,108) 12,101,565

Depreciable assets:

Buildings 29,045,137 29,045,137

Machinery, equipment and vehicles 6,512,594 123,618 6,636,212

Infrastructure 16,465,091 2,059,136 - 18,524,227

Land improvements 542,303 - - 542,303

Total depreciable assets 52,565,125 2,182,754 - 54,747,879

Total 56,688,285 11,877,267 (1,716,108) 66,849,444

Accumulated depreciation:

Buildings (6,765,276) (678,108) (7,443,384)

Machinery, equipment and vehicles (4,782,736) (186,665) (4,969,401)

Infrastructure (8,862,644) (506,561) - (9,369,205)

Land improvements (329,902) (54,229) - (384,131)

Total accumulated depreciation (20,740,558) (1,425,563) - (22,166,121)

Net depreciable assets 31,824,567 757,191 - 32,581,758

Total net capital assets 35,947,727$ 10,451,704$ (1,716,108)$ 44,683,323$

Water 357,218$

Sewer 339,621

CV Starr Center 728,724

1,425,563$


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6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued payroll and related liabilities consisted of the following at June 30, 2019:

These amounts resulted in the following concentrations in payables:

Vendors 92% Employees 8% 34% of accounts payable, accrued payroll and related liabilities were due to Wahlund Construction in relation to the Wastewater Treatment Facility upgrade project. There were no further significant concentrations (greater than 25%) with any single vendor or employee. 7. LONG-TERM LIABILITIES The following is a summary of changes in long-term liabilities for the year ended June 30, 2019:

Governmental Business-type

Activities Activities Total

Accounts payable 242,138$ 1,056,620$ 1,298,758$

Accrued payroll and related liabilities 99,204 15,574 114,778

Total 341,342$ 1,072,194$ 1,413,536$

Balance Balance Due Within

June 30, 2018 Additions Retirements June 30, 2019 One Year

Governmental Activities:

Compensated absences 619,376$ 357,735$ (318,218)$ 658,893$ 65,889$

Capital Lease Obligations 280,348 - (137,341) 143,007 143,007

Landfil l post-closure 1,205,807 - (178,862) 1,026,945 205,389

CalPERS side fund 755,835 - (74,553) 681,282 129,853

Total governmental activities 2,861,366$ 357,735$ (708,974)$ 2,510,127$ 544,138$


Bonds payable:

1998 Revenue Bond 55,000$ -$ (55,000)$ - -$

2014 Water Revenue Refunding Bond 1,858,000 - (290,000) 1,568,000 300,000

2018 WW Plant Certifactes of Participation 5,000,000 5,000,000 86,000

Loans payable:

SDWRL 702,080 - (74,514) 627,565 76,218

SDWRL discount 144,145 - (31,264) 112,881 (31,264)

Total business-type activity debt 2,759,225 5,000,000 (450,778) 7,308,446 430,954

Compensated absences 126,819 39,052 (87,882) 77,989 6,479

Total business-type activities 2,886,044$ 5,039,052$ (538,660)$ 7,386,435$ 437,433$


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7. LONG-TERM LIABILITIES, Continued Governmental Activities Caspar Landfill Closure and Post-Closure Cost The Caspar Landfill site was closed in 1995. State and federal laws and regulations require that the City place a final cover on its landfill when closed, and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. These costs are shared equally by the City and County of Mendocino. At June 30, 2019, the City’s estimated liability for its share of landfill closure and post-closure care costs was $1,026,945. This estimated total cost of the landfill closure and post-closure care is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2019, as determined by the last engineering study performed. However, the actual cost of closure and post-closure care may change due to inflation, changes in technology, or changes in landfill laws and regulations. The City has made a pledge of future user surcharge revenues for anticipated remaining expected costs, future inflation costs, and any additional costs (including debt service) that might arise from changes in post-closure requirements (due to changes in technology or more rigorous environmental regulations, for example). Business-type Activities 1998 Wastewater Revenue Bond In 1998, the City on behalf of the Fort Bragg Municipal Improvement District entered into an agreement with the Association of Bay Area Governments (ABAG) whereby ABAG issued $770,000 in revenue bonds to provide resources for the District to acquire and construct capital improvements to the District’s wastewater system. The bonds are an obligation of ABAG and are payable solely from and secured by revenues that consist primarily of payments on an installment obligation of the City. For the purposes of this report, the City has reported its liability under the terms of the installment agreement as 1998 Wastewater Revenue Bonds. Annual interest accrues at varying rates between 3.75% and 5.30%. Interest became payable commencing October 1, 1998, and semi-annually thereafter each October 1st and April 1st. Principal is paid in annual installments commencing October 1, 1998, through the year 2018 in amounts ranging from $25,000 through $55,000. The bonds were repaid in full in FY 2018/19. 2014 Water Revenue Refunding Bonds On June 5, 2014, the City issued $2,962,000 of Water Revenue Refunding Bonds bearing interest of 3.06% and payable semi-annually on October 1 and April 1, maturing on October 1, 2023. These bonds were used to advance refund the 2004 California Statewide Communities Development Authority Bonds, which were issued originally to advance refund the 1993 COP’s, which had been used for various capital improvements to the City’s water system. The outstanding principal balance as of June 30, 2019 was $1,568,000. $2,891,751 from the 2014 Water Revenue Refunding Bonds was placed in an irrevocable trust that was used to pay off the 2004 California Statewide Communities Development Authority Bonds on July 7, 2014. The funding resulted in an economic gain (difference between the present value of the debt service payments on the old and new debts) of $201,814. The aggregate difference in debt service between the 2004 California


69

LONG-TERM LIABILITIES, Continued 2014 Water Revenue Refunding Bonds, Continued Statewide Communities Development Authority Bonds and the 2014 Water Revenue Refunding Bonds was $234,793. The outstanding amount of the defeased debt was $2,855,000 as of June 30, 2014. The City defeased the 2004 California Statewide Communities Development Authority Bonds by placing the proceeds of the 2014 Water Revenue Refunding Bonds in an irrevocable trust to provide for all future debt service payments on the 2004 California Statewide Communities Development Authority Bonds. Accordingly, the trust account assets and the liability of the defeased 2004 California Statewide Communities Development Authority Bonds are not included in the City’s financial statements. 2018 Wastewater Revenue Refunding Bonds In 2018, the City issued $5,000,000 in Certificates of Participation as partial funding to acquire and construct the District’s Wastewater Treatment Facility. The Certificates of Participation are secured by an Installment Sale agreement between the City and City of Fort Bragg Joint Powers Financing Authority (JPFA) with the JPFA acting as seller and the City as purchaser. The obligation is secured and payable from net revenues of the Wastewater Enterprise. The outstanding principal balance as of June 30, 2019 was $5,000,000. Safe Drinking Water Revolving Loan (SDWRL) In FY 2004/05, the City entered into a non-interest bearing loan agreement with the State of California Department of Water Resources to finance the construction of a project to meet safe drinking water standards. The maximum amount of the loan cannot exceed $2,325,500, of which the City had borrowed $2,141,532. At June 30, 2018, the balance of the loan payable was $627,565. Loan principal payments of $52,889 are required semi-annually on January 1st and July 1st for twenty (20) years commencing January 1, 2007. Compensated Absences The City records employee absences, such as vacation, illness, and holidays, for which it is expected that employees will be paid as compensated absences. The governmental activities compensated absences balance at June 30, 2019 was $658,893 with $65,889 expected to be paid within a year; The business-type activities compensated absences balance at June 30, 2019 was $77,989 with $6,479 expected to be paid within a year. CalPERS Side Fund Debt Under the City’s contract with CalPERS the City is obligated to make certain payments to CalPERS in respect to retired public safety and miscellaneous employees under the Side Fund program of CalPERS which amortizes such obligations over a fixed period of time. The current annual interest rate imputed by PERS to side funds is 7.5%. Debt service will be funded from the revenue of the general fund. The initial side fund obligation amount was $883,312, with a retirement in the amount of $74,553 for the year end June 30, 2019. The amount is paid in July of each year as provided by CalPERS, therefore no maturity schedule is available for this debt.


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7. LONG-TERM LIABILITIES, Continued Debt Service Future debt service for Governmental Activities at June 30, 2019, is as follows:

Year Ending

June 30,

Principal Interest

2020 143,007 4,469

2021 - -

2022 - -

2023-2027 - -

Total 143,007$ 4,469$

Due within one year 143,007$ 4,469$

Due after one year - -

Total 143,007$ 4,469$

Governmental Activities

Capital Lease


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7. LONG-TERM LIABILITIES, Continued Debt Service, Continued Future debt service for Business-Type Activities at June 30, 2019, is as follows:

Principal Interest Principal Interest Principal Interest

2020 86,000 99,140 300,000 43,391 105,778 -

2021 87,000 97,410 304,000 34,150 105,778 -

2022 89,000 95,650 312,000 24,725 105,778

2023 91,000 93,850 320,000 15,055 105,778

2024 93,000 92,010 332,000 29,805 105,778 -

2025-2058 4,554,000 1,719,940 - - 211,556 -

Total 5,000,000$ 2,198,000$ 1,568,000$ 147,126$ 740,446$ -$

Due within one year 86,000$ 99,140$ 300,000$ 43,391$ 105,778$ -$

Due after one year 4,914,000 2,098,860 1,268,000 103,735 634,668 -

Total 5,000,000$ 2,198,000$ 1,568,000$ 147,126$ 740,446$ -$

Year Ending

June 30,

Principal Interest

2017 123,161$ 4,627$

2018 395,778 61,200

2019 395,778 52,418

2020 491,778 142,531

2021 496,778 131,560

2022 506,778 120,375

2023 516,778 108,905

2024 530,778 121,815

2025-2029 4,765,556 1,719,940

Total 7,308,446$ 2,345,126$

Due within one year 491,778$ 142,531$

Due after one year 6,816,668 2,202,595

Total 7,308,446$ 2,345,126$

Total


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8. NET POSITION/ FUND BALANCES

Net position (deficit)

Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.

Fund Balance Non-spendable, Restricted and Committed fund balance consisted of the following at June 30, 2019:

The following describe the purpose of each non-spendable, restricted, and committed category used by the City: Non-spendable

Inventory & Prepaids – represents non-spendable amounts classified as inventory or a prepaid expense.

Loans/Notes Receivable – represents loans to employees.

Governmental Business-type

Activities Activities Total

Net investment in capital assets 41,400,454$ 37,805,831$ 79,206,285$

Restricted 1,278,950 108,064 1,387,014

Unrestricted (deficit) (2,455,563) 8,093,944 5,638,381

Total 40,223,841$ 46,007,839$ 86,231,680$

Nonspendable:

Prepaids & Inventory 3,547$ Loans/Notes Recievable 5,323

Total Nonspendable 8,870$

Restricted:

Governmental Funds:

Special Sales Tax 878,623$

Asset Forfeiture 307,086

Gas Tax 19,843

Federal & State Grant Funds 73,398

Debt Service 108,064

Total Restricted 1,387,014$

Committed:

Encumbrances 50,414$

Reserves 1,631,369

Total Committed 1,681,783$


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8. NET POSITION/ FUND BALANCES, Continued

Restricted

Special Sales Tax – represents amounts restricted by voter approved ordinance for street repairs.

Asset Forfeiture – represents amounts restricted by State and Federal guidelines to support law enforcement.

Gas Tax – represents amounts restricted for street maintenance purposes as defined in Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highway Code as well as amounts from the Road Maintenance and Rehabilitation Account (RMRA).

Federal and State Grants – represents restricted amounts received from State and Federal Grants for various city programs.

Debt Service – represents amounts restricted by loan covenant.

Committed

Encumbrances – represents amounts designated by the City Council for outstanding purchase orders and contracts.

Reserves – represents amounts designated by the City Council for future contingencies, which include a $1,431,369 operating reserve and a $200,000 litigation reserve.

Fund Balance Deficits Deficit fund balances consisted of the following:

The above deficit fund balances have occurred due to the spending of funds prior to the receipt of revenues (cost reimbursements). The Fund balances will be restored in the near future as revenues are received.

As of

Funds June 30, 2019

Major Funds:

Street Resurfacing Capital Projects Fund (26,132)

CDBG Program Income Special Revenue (1,779)

Non-Major Funds:

Special Revenue Funds

Developer Deposit Accounts (1,031)

Mendocino Council of Governments (MCOG)

Overall Work Program (OWP) Grants (7,897)

Federal & State Grant Funds:

OJP Bulletproof Vest Partnership (523)

Capital Project Funds:

Coastal Trail (5,268)

Total (42,630)


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9. INTERFUND TRANSACTIONS Due to and from balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Due to and due from other funds consisted of the following as of June 30, 2019:

Due from Due to

Other Funds Other Funds

Governmental Funds

Major Funds:

General Fund 707,023$ -$

Street Resurfacing Capital Projects (26,132)$

Total Major Funds 707,023 (26,132)

Nonmajor Funds:


Gas Tax - (55,814)

RMRA - (11,671)

MCOG Overall Work Plan - (15,073)

State and Federal Grant Funds:

OJP Bullet Proof Vest Partnership - (523)

CDBG Super NOFA - (24,697)

Capital Project Funds:

Coastal Trail - (18,676)

Total Nonmajor Funds - (126,454)

Total Governmental Funds 707,023 (152,586)

Proprietary Funds

Enterprise Funds:

Wastewater (554,437)

Enterprise Funds - (554,437)

Total 707,023$ (707,023)$


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9. INTERFUND TRANSACTIONS, Continued

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Transfers consisted of the following at June 30, 2019:

Transfers In Transfers Out

Governmental Funds

Major Funds:

General Fund 84,107$ (98,396)$

CDBG Program Income Special Revenue (93,567)

Special Sales Tax Special Revenue (1,911,952)

Street Resurfacing Capital Projects 2,035,980 -

Total Major Funds 2,120,087 (2,103,915)

Non-major Funds:


Parking - (8,300)

Parking In-lieu Fees 8,300 -

Gas Tax 66,054 (214,866)

MCOG Overall Work Plan 29,584 (39,490)

State and Federal Grant Funds:

Safe Routes to School 24,783 (153,140)

CDBG Super NOFA 93,567 (315,174)

STP D1 Streets and Highway Allocation - (27,192)

State Parks Prop 84 Grants - (994,576)

Other State Grants 39,490 (2,392)

Capital Projects Fund

Coastal Trail 447,716 -

Municipal Facilities Projects - (98,142)

Total Non-major Funds 709,494 (1,853,272)

Total Governmental Funds 2,829,581 (3,957,187)

Proprietary Funds

Major Enterprise Funds

Water 2,747,584 (1,715,822)

Wastewater 17,049,886 (17,052,184)

Total Enterprise Funds 19,797,470 (18,768,006)

Internal Service Funds

Building Maintenance 98,142 -

Total Internal Service Funds 98,142 -

Total Transfers 22,725,193$ (22,725,193)$


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10. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City provides property, liability, and worker’s compensation insurance through the Redwood Empire Municipal Insurance Fund (REMIF), a public entity risk pool currently operating as a common risk management and self-insurance program for fifteen Northern California municipalities. The City pays quarterly and annual contributions and premiums to REMIF for its general insurance and self-insurance coverage. The joint powers formation agreement of the REMIF provides that the REMIF will self-insure through member contributions and collect premiums for insurance and reinsurance for liability insurance and other coverage. REMIF is a risk sharing, self-funded pool which is a direct purchase program. The REMIF cost sharing pool provides coverage between the City’s deductible and $500,000 (liability program) and $1,000,000 (workers’ compensation program). Losses in excess of the REMIF cost sharing pool limits are covered by REMIF through the California Joint Powers Risk Management Authority for liability and commercial insurance policies for workers' compensation. Loss limits and deductibles are per occurrence as detailed on the table below. Losses exceeding these limits are the responsibility of the City. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three fiscal years.

Insurance Program Loss Limits Deductibles

Property 400,000,000$ $5,000 - $10,000

Boiler and Machinery 100,000,000 100,000

Liability 40,000,000 5,000 - 25,000

Earthquake and Flood 20,000,000 100,000 or 5%

of value of building

Auto Physical Damage Stated Value 5,000 - 10,000

Workers' Compensation Statutory 5,000 - 10,000

Participating members of REMIF do not have a refundable deposit, and no dividends are paid. No refunds were received by the City in the Liability program. The annual premiums paid to REMIF in FY 2018/19 were as follows:

Insurance Program PremiumWorkers' Compensation 222,930$ Liability 144,644 Flood & Earthquake 23,073 Property 23,355 Auto Physical Damage 10,755

424,757$

Claims Paid by the City for the 2018/19 fiscal year:

Insurance Program Claims

Workers' Compensation 27,893$

Liability and Property 10,245

38,138$


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11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM General Information about the Pension Plans

Plan Descriptions - All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The Plans' provisions and benefits in effect at June 30, 2019, are summarized as follows:

Hire date

Prior to

January 1, 2013

Benefit formula 2% @ 55

Benefit vesting schedule 5 years service

Benefit payments monthly for life

Retirement age 55

Monthly benefits, as a % of eligible compensation 1.4% - 2.0%

Required employee contribution rates 6.90%

Required employer contribution rates 9.64%

Safety - Police

Hire date

Prior to

January 1, 2013

Benefit formula 2% @ 50

Benefit vesting schedule 5 years service

Benefit payments monthly for life

Retirement age 50

Monthly benefits, as a % of eligible compensation 2%




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11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued

Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that 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 CaIPERS. 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.

PEPRA Miscellaneous

Hire date

On or after

January 1, 2013

Benefi t formula 2% @ 62

Benefi t vesting schedule 5 years service

Benefi t payments monthly for l i fe

Retirement age 52 - 67

Monthly benefi ts , as a % of el igible compensation 1.0% to 2.5%


Required employer contribution rates 7.27

PEPRA Safety - Police

Hire date

On or after

January 1, 2013

Benefi t formula 2.7% @ 57



Retirement age 50 - 57

Monthly benefi ts , as a % of el igible compensation 2.0% to 2.7%



Fire Safety

Hire date

Prior to

January 1, 2013

Benefi t formula 2% @ 50



Retirement age 50

Monthly benefi ts , as a % of el igible compensation 2.00%

Required employee contribution rates 0%

Required employer contribution rates 0%


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For the year ended June 30, 2019, the contributions recognized as part of pension expense for each Plan were

as follows:

Miscellaneous Plans Safety Plans

Contributions - employer 394,321$ 446,899$

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

As of June 30, 2019, the City reported net pension liabilities for its proportionate shares of the net pension

liability of each Plan as follows

Proportionate Share

of Net Pension Liability

Miscellaneous Plans 4,536,264$

Safety Plans 4,651,933

Total Net Pension Liability 9,188,197$

The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2018, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability. Likewise the Safety-Police Plan, PEPRA Safety-Police Plan and Safety-Fire Plans were combined for purposes of calculating net pension liability. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2018 and 2019 was as follows:

Miscellaneous Safety - Police Total

Proportion - June 30, 2018 0.11653% 0.07811% 0.09338%

Proportion - June 30, 2019 0.12037% 0.07928% 0.09535%

Change - Increase/(Decrease) 0.00384% 0.00117% 0.00197%

Note: Due to the nature of calculating proportionate share of the net pension liability, total proportion for all employer

plans will not equal the sum of the miscellaneous proportion % and the safety proportion %


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For the year ended June 30, 2019, the City recognized pension expense of $1,187,249. At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous

Plan Safety Plan

Miscellaneous

Plan Safety Plan Total

Changes in assumptions 517,148$ 456,436$ 126,743$ 61,581 1,161,908$

Differences between expected and actual experiences 174,048 99,954 59,228 379 333,609

Net differences between projected and actual investment 22,426 31,496 - - 53,922

Differences between the employer's contributions and the

employer's proportionate share of the contributions 128,358 -

109,438 376,539 614,335

Change in Employer's Proportion 131,981 5,771 - 48,549 186,301

Pension contributions subsequent to measurement date 455,093 471,193 - - 926,286

Sub Total 1,429,055 1,064,850 295,409 487,048

Total Deferred Outflows of Resources 2,493,905$

Total Deferred Inflows of Resources 782,456$

Total Deferred Outflows and Inflows of Resources 3,276,361$

of Resources

Deferred Outflows Deferred Inflows

of Resources

$926,286 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Contributions made after the measurement date of the net pension/OPEB liability or collective net pension/OPEB liability but before the end of the City’s fiscal year will be recognized as a reduction of the net pension/OPEB liability/ or collective net pension/OPEB liability in the subsequent fiscal year rather than in the current fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal Year Ending June 30: Miscellaneous Safety Total

2020 553,922 197,100 751,022

2021 302,228 106,974 409,202

2022 (136,796) (165,243) (302,039)

2023 (40,801) (32,222) (73,023)

2024 - - -

Thereafter - - -

678,553 106,609 785,162


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Actuarial Assumptions -The total pension liabilities in the June 30, 2018 actuarial valuations were determined

using the following actuarial assumptions:

Miscellaneous Safety - Police

PEPRA -

Miscellaneous

PEPRA Safety -

Police Fire Safety

Valuation Date 30-Jun-17 30-Jun-17 30-Jun-17 30-Jun-17 30-Jun-17

Measurement 30-Jun-18 30-Jun-18 30-Jun-18 30-Jun-18 30-Jun-18

Actuarial Cost Method

Actuarial Assumptions:

Discount Rate 7.15% 7.15% 7.15% 7.15% 7.15%

Inflation 2.625% 2.625% 2.625% 2.625% 2.625%

Projected Salary Increase Varies by entry age and service

Mortality

Entry-Age Normal Cost Method

Derived using CalPERS' Membership Data for all Funds

The underlying mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details, please refer to the 2014 experience study report. All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the fiscal years 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website under Forms and Publications. Discount Rate - The discount rate used to measure the total pension liability was 7.25 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.25 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.25 percent is applied to all plans in the Public Employees' Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS website under the GASB 68 section. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds' asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), 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 PERF fund.


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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 equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2014.

Asset Class

Current Target

Allocation

Real Return

Years 1 - 101

Real Return

Year 11+2

Global Equity 47.0% 4.90% 5.38%

Global Fixed Income 19.0% 0.80% 2.27%

Inflation Sensitive 6.0% 0.60% 1.39%

Private Equity 12.0% 6.60% 6.63%

Real Estate 11.0% 2.80% 5.21%

Infrastructure and Forestland 3.0% 3.90% 5.36%

Liquidity 2.0% -0.55% -90.00%

(1) An expected inflation of 2.5% used for this period.

(2) An expected inflation of 3.0% used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate

-1%

Current

Discount Rate

Discount Rate

+1%

6.15% 7.15% 8.15%

Employer's Net Pension Liability/(Asset) - Miscellaneous 7,204,554 4,536,264 2,333,635

Employer's Net Pension Liability/(Asset) - Safety 6,868,575 4,651,933 2,835,791

Employer's Net Pension Liability/(Asset) - Total 14,073,129$ 9,188,197$ 5,169,426$

Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is

available in the separately issued CalPERS financial reports.

Note: At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes

of calculating net pension liability. Likewise the Safety-Police Plan, PEPRA Safety-Police Plan and Safety-Fire

Plans were combined for purposes of calculating net pension liability.


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12. OTHER POST EMPLOYMENT BENEFITS (OPEB)

Plan Description

The City offers its employees a post-retirement health program, a Single Employer plan, which includes medical and dental coverage. Upon retirement for service or disability, employees hired prior to July 1, 2011 (January 1, 2012 for Fort Bragg Police Officer Association members) retiring directly from service at age 50 or over with 10 years of service may continue coverage for themselves and their spouse’s (to whom they are married at retirement) as detailed below. Currently 19 employees meet those eligibility requirements. Expenditures for these post-retirement benefits are recognized as monthly premiums are paid. During the fiscal year ended June 30, 2019, expenditures of $269,166 were recognized for the cost of these post-retirement benefits. The City pays portions of the premiums dependent on bargaining group and employee hire date as follows: Tier 1: For retirees hired before January 1, 1992, the City pays the full cost of medical and dental premium for the former employee. In addition, the City pays a percentage of the spouse’s medical plan premium starting at the retiree’s age 60. The percentage is 10% for each year of service after 10 years, reaching 100% for those retiring with 19 or more years of service. In addition, the spouse may participate in the dental program-but at their own cost. Tier 2: For retirees hired after January 1, 1992 and before July 1, 2003 (July 1, 2004 for Fort Bragg Police Officer Association members), the City pays the full cost of medical and dental premiums for the former employee only. Tier 3: For retirees hired after July 1, 2003 (July 1, 2004 for Fort Bragg Police Officer Association members) and before July 1, 2007, the City pays the full cost of medical and dental premiums for the former employee until age 65 when Medicare becomes payable. Thereafter, coverage is limited to a supplemental prescription drug plan, which is paid for by the City. Tier 4: For retirees hired after July 1, 2007 and before July 1, 2011 (January 1, 2012 for Fort Bragg Police Officer Association members), the retiree only may remain in the City’s health and dental plan until age 65, but at their own cost. Tier 5: For retirees hired on or after July 1, 2011 (January 1, 2012 for Fort Bragg Police Officer Association members), the retiree and spouse may not participate in the City’s health plans.


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12. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued Employees Covered by benefit terms At June 30, 2019, the following employees were covered by the benefit terms:

Active employees 19

Inactive employees or beneficiaries currently receiving benefits 33

Inactive employees entitled to, but not yet receiving benefits 3

Total Number of participants 55

City Contribution to the Plan The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2019, the City’s cash contributions were $5,000 in payments to the trust, $269,166 cash benefit payments, and the estimated implied subsidy was $18,483 resulting in total payments of $293,476. Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2018 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2017 that was rolled forward to determine the June 30, 2019 total OPEB liability, based on the following actuarial methods and assumptions:

Discount Rate 6.75% at June 30, 2018

6.75% at June 30, 2017

Expected Long-Term Rate of

Return on Investments

Same as discount rate. Plan assets projected to be sufficient to pay all

benefits from trust

General Inflation 2.75% per annum

Mortality, Retirement,

Disability, Termination

CalPERS 1997-2015 experience study

Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-

17

Medical Trend Non-Medicare - 7.5% for 2019, decreasing to an ultimate rate of 4.0%

in 2076 and later years

Medicare - 6.5% for 2019, decreasing to an ultimate rate of 4.0% in

2076 and later years

Municipal Bond Rate N/A

Participation at Retirement

Tier 1-3 Actives: 100% elect medical and dental

Tier 4 Actives: 75% elect medical and dental


85

12. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued

The long-term expected rate of return on OPEB plan investments was determined using a building- block

method in which expected future real rates of return (expected returns, net of OPEB plan investment

expense and inflation) are developed for each major asset class. These ranges are combined to produce the

long-term expected rate of return by weighting the expected future real rates of return by the target asset

allocation percentage and by adding expected inflation. The target allocation and best estimates of

arithmetic real rates of return for each major asset class are summarized in the following table:

Target Allocation

CERBT Strategy 1

Asset Class Component

Global Equity 57% 4.82%

Fixed Income 27% 1.47%

TIPS 5% 1.29%

Commodities 3% 0.84%

REITs 8% 3.76%

100%

Expected Real

Rate of Return

Discount Rate

The discount rate used to measure the total OPEB liability was 6.75 percent. The projection of cash flows

used to determine the discount rate assumed that Authority contributions will be made at rates equal to

the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net

position was projected to be available to make all projected OPEB payments for current active and inactive

employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments

was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the OPEB Liability

The changes in the net OPEB liability for the Plan are as follows:

Total OPEB

Liability

Fiduciary Net

Position

Net OPEB

Liability

Balance at 6/30/2018* 5,451,715$ 2,060,673$ 3,391,042$

Changes for the year

Service Cost 111,530 - 111,530

Interest 366,137 - 366,137

Difference between actual

and expected experience - - -

Assumption changes - - -

Contributions - employer - 492,993 (492,993)

Contributions - employee - - -

Net investment income - 164,052 (164,052)

Benefit payments (277,993) (277,993) -

Administrative expenses - (3,826) 3,826

Net Changes 199,674 375,226 (175,552)

Balance at 6/30/2019** 5,651,389$ 2,435,899$ 3,215,490$

*Measurement date 6/30/2017

** Measurement date 6/30/2018


86

12. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2018 is 6.75%. The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018:

1% Decrease Current Rate 1% Increase

Change in Discount Rate 5.75% 6.75% 7.75%

Net OPEB Liability 3,877,850$ 3,215,490$ 2,658,941$

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018 (Healthcare Cost Trend Rate was assumed to start at 7.5% and grade down to 4% for years 2076 and thereafter):

Change in Healthcare Cost Trend Rate 1% Decrease Current Trend 1% Increase

Net OPEB Liability 2,580,234$ 3,215,490$ 3,978,504$

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected and actual earnings on OPEB plan investments All other amounts

5 years Expected average remaining service lifetime (EARSL) (6.0 Years at June 30, 2018)


87

12. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2019, the City recognized OPEB expense of $326,760. As of fiscal year ended June 30, 2019, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Differences between expected and actual

experience -$ -$

Changes in assumptions - -

Net difference between projected and actual

earnings on plan invesments - 52,318

Employer contributions made subsequent to the

measurement date 292,648 -

Total 292,648$ 52,318$

The $292,648 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2018 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year

Ended June 30,

Deferred

Outflow/(Inflows)

of Resources

2020 (15,767)

2021 (15,767)

2022 (15,766)

2023 (5,018)

2024 -

Thereafter -

13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Fort Bragg that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.


88

13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012 the City Council elected to become the Successor Agency for the former Redevelopment Agency (RDA) in accordance with the Bill as part of City resolution number 3504-2012. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. As allowed under Section 34176(a) of the Bill, the City elected to retain the housing functions previously performed by the former RDA. The assets and activities for the Successor Agency Housing fund continue to be reported in the City’s governmental fund financial statements. The remaining assets, liabilities, and activities of the dissolved RDA, are reported in the Successor Agency fiduciary fund (private purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former RDA as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported as an extraordinary item in the governmental fund financial statements in FY 2011/12. Long-term Liabilities The following is a summary of changes in long-term liabilities for the year ended June 30, 2019:

June 30, 2018 Additions Retirements June 30, 2019 One Year

Trust Activities:

2015 Refunding Tax Allocation Bonds 3,650,000$ -$ (155,000)$ 3,495,000$ 160,000$

2015 Refunding Tax Allocation Bonds Discount (30,781) - 1,620 (29,161) (1,620)

Total trust fund debt 3,619,219 - (153,380) 3,465,839 158,380

Deferred outflows:

2015 Refunding Tax Allocation Bonds Deferred 89,513 (4,711) 84,802 4,711


89

13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued 2015 Refunding Tax Allocation Bonds In 2015 the former Fort Bragg Redevelopment Agency issued $4,040,000 of Tax Allocation Bonds for the purpose of refunding $4,005,000 of outstanding 2004 Tax Allocation Bonds and making funds available for future capital projects. The refunding took advantage of lower interest rates which were available. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt, which has been deferred in accordance with GASB Statement No. 23. Deferred amounts for the loss on refunding and the original discount associated with the issuance of the 2015 Bonds are being amortized over the life of the 2015 issue using the straight line method. The Bonds bear annual interest at rates varying between 2.00% and 3.25%. The Bonds were issued as a fully registered note in denominations of $5,000. Interest on the bonds are payable semi-annually each September 1 and March 1. Principal is paid in annual installments each September 1, 2016, through the fiscal year 2037 in amounts ranging from $90,000 through $250,000. The outstanding principal balance as of June 30, 2019 was $3,495,000.

Year Ending

June 30,

Principal Interest Principal Interest Principal Interest

2020 160,000 96,300 (1,620) - 158,380 96,300

2021 160,000 93,150 (1,620) - 158,380 93,150

2022 165,000 89,900 (1,620) - 163,380 89,900

2023 170,000 86,550 (1,620) - 168,380 86,550

2024 165,000 83,200 (1,620) - 163,380 83,200

2025-2029 910,000 348,725 (8,100) - 901,900 348,725

2030-2034 1,050,000 202,262 (8,100) - 1,041,900 202,262

2035-2037 715,000 35,751 (4,861) - 710,139 35,751

Total 3,495,000$ 1,035,838$ (29,161)$ -$ 3,465,839$ 1,035,838$

Due within one year 160,000$ 96,300$ (1,621)$ -$ 158,380$ 96,300$

Due after one year 3,335,000 939,538 (27,540) - 3,307,459 939,538

Total 3,495,000$ 1,035,838$ (29,161)$ -$ 3,465,839$ 1,035,838$

Fiduciary Activities

2015 Refunding

Bonds

2015 Refunding Bonds

Discount Total

14. COMMITMENTS AND CONTINGENCIES Litigation The City is not involved in any active litigation at present. Grants and Allocations Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. During the course of FY 2018/19 no claims were disallowed. Commitments The City’s unexpended contractual commitments as of June 30, 2019 are listed in note 1 on page 57.


90

15. NEW ACCOUNTING PRONOUNCEMENTS The GASB has issued Statement No. 83 “Certain Asset Retirement Obligations” This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The requirements of this Statement will take effect for financial statement starting with the fiscal year that ends June 30, 2019. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2019. The GASB has issued Statement No. 84 “Fiduciary Activities” The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The requirements of this Statement will take effect for financial statement starting with the fiscal year that ends December 31, 2019. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2019. The GASB has issued Statement No. 87 “Leases” The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The requirements of this Statement will take effect for financial statement starting with the fiscal year that ends December 31, 2020. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2020. The GASB has issued Statement No. 88 “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements”. The primary objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This Statement defines debt for purposes of disclosure in notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is established. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. For notes to financial statements related to debt, this Statement also requires that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2019. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2019.

The GASB has issued Statement No. 89 “Accounting for Interest Cost Incurred before the End of a Construction Period” The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for


91

15. NEW ACCOUNTING PRONOUNCEMENTS, continued interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5−22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2020. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2021.

The GASB has issued Statement No. 90 “Majority Equity Interests – an amendment of GASB Statements No. 14 and No. 61”. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. For all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This Statement establishes that ownership of a majority equity interest in a legally separate organization results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit. This Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occurred subsequent to the acquisition. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2019. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2020.

92

REQUIRED SUPPLEMENTARY INFORMATION

City of Fort Bragg, California Other Post-Employment Benefits Schedule of Changes in Net OPEB Liability/(Assets) and Related Ratios For the year ended June 30, 2019

93

2018/19

Measurement Period 2017/18

Changes in Total OPEB Liability Service Cost $111,530 Interest 366,137 Changes of benefit terms - Actual vs. expected experience - Assumption changes - Benefit payments (277,993)

Net Changes 199,674 Total OPEB Liability (beginning of year) 5,451,715 Total OPEB Liability (end of year) 5,651,389

2018/19

Measurement Period 2017/18

Changes in Plan Fiduciary Net Position Contributions - employer $492,993 Contributions - employee - Net investment income 164,052 Benefit payments (277,993) Administrative expenses (3,826) Other changes - Net Changes 375,226

Plan Fiduciary Net Position (beginning of year)

2,060,673

Plan Fiduciary Net Position (end of year) 2,435,899

2018/19

Net OPEB Liability/(Asset) $3,215,490 Fiduciary Net Position as a percentage of the Total OPEB Liability

43.1%

Covered employee payroll1 2,370,484 Net OPEB Liability as a percentage of covered employee payroll

135.6%

1 For the 12-month period ending on June 30, 2018 (Measurement Date). As reported by the City.

City of Fort Bragg, California Other Post-Employment Benefits Schedule of Employer Contributions For the year ended June 30, 2019

94

Fiscal Year 2018/19

Actuarially Determined Contribution (ADC) $375,390 Contributions in relation to the actuarially determined contribution

292,648

Contribution deficiency/(excess) 82,742 Covered employee payroll2 1,834,372 Contributions as a percentage of covered employee payroll 16.0%

Notes to Schedule of Employer Contribution Methods and Assumptions for

2018/19 Actuarially Determined Contribution

Valuation Date June 30, 2017

Actuarial Cost Method Entry Age Normal, Level % of pay

Amortization Method Level dollar amount

Amortization Period 24-year fixed period for 2018/19

Asset Valuation Method

Market value of assets

Discount Rate 6.75%

General Inflation 2.75%

Medical Trend Non-Medicare - 7.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076

Medicare - 6.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076

Mortality CalPERS 1997-2015 experience study

Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-17

2 For the 12-month period ending on June 30, 2019 (fiscal year end). As reported by the City.

City of Fort Bragg, California Pension Plan Schedule of Contributions Miscellaneous Plan Last Ten Fiscal Years*

95

2019 2018 2017

Contractually required contribution (actuarially determined) 455,093$ 430,051$ 392,300$

Contributions in relation to the actuarially determined contributions (394,321) (430,051) (392,300)

Contribution deficiency (excess) 60,772$ -$ -$

Covered payroll 2,833,921$ 2,641,425$ 2,598,675$

Contribution as a percentage of covered payroll 16.06% 16.28% 15.10%

Notes to Schedule

* Additional years' information will be displayed as it becomes available

* At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net

pension liability. Due to the change in methodology, comparisons to prior years 2014 and 2015 have been removed.

1) Covered payroll represents compensation earnable and pensionable compensation. Only compensation earnable and

pensionable compensation that would possibly go into the determination of retirement benefits are included.

* Fiscal year 2014 was the first year of implementation, therefore only the first five years are available.

City of Fort Bragg, California Pension Plan Schedule of Contributions Safety Plan Last Ten Fiscal Years*

96

2019 2018 2017

Contractually required contribution (actuarially determined) 471,193$ 298,630$ 387,206$

Contributions in relation to the actuarially determined contributions (471,193) (298,630) (387,206)

Contribution deficiency (excess) -$ -$ -$

Covered payroll 1,048,497$ 1,268,709$ 1,245,549$

Contribution as a percentage of covered payroll 44.94% 23.54% 31.09%

Notes to Schedule

*At June 30, 2016 CalPERS combined the Safety Police Plan, the PEPRA Safety Police Plan and the Safety Fire Plan for purposes

of calculating net pension liability. Due to the change in methodology, comparisons to prior years 2014 and 2015 have been

removed.

1) Covered payroll represents compensation earnable and pensionable compensation. Only compensation earnable and

pensionable compensation that would possibly go into the determination of retirement benefits are included.

* Fiscal year 2014 was the first year of implementation, therefore only the first five years are available.

City of Fort Bragg, California Schedule of the City’s Proportionate Share of the Net Pension Liability Miscellaneous Plan Last Ten Fiscal Years*

97

2018 2017

Plan's Proportion of the Net Pension Liability/(Asset) 0.11653% 0.11210%

Plan's Proportionate Share of the Net Pension Liability/(Asset) 4,593,661$ 3,894,091$

Plan's Covered Employee Payroll 2,788,318$ 2,551,931$

Plan's Proportionate Share of the Net Pension Liability/(Asset) as a

Percentage of its Covered Payroll 164.75% 152.59%

Plan's Proportionate Share of the Fiduciary Net Position as a Percentage

of the Plan’s Total Pension Liability 76.38% 77.82%

Plan's Proportionate Share of Aggregate Employer Contribution 430,051$ 392,300$

Notes to Schedule

1) Covered employee payroll represents compensation earnable and pensionable compensation.

Only compensation earnable and pensionable compensation that would possibly go into the

determination of retirement benefits are included.

* Fiscal year 2014 was the first year of implementation, therefore only the first five years are

available.

* At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for

purposes of calculating net pension liability. Due to the change in methodology, comparisons to

prior years 2014 and 2015 have been removed.

City of Fort Bragg, California Schedule of the City’s Proportionate Share of the Net Pension Liability Safety Plan Last Ten Fiscal Years*

98

2018 2017

Plan's Proportion of the Net Pension Liability/(Asset) 0.07811% 0.08042%

Plan's Proportionate Share of the Net Pension Liability/(Asset) 4,667,131$ 4,165,367$

Plan's Covered Employee Payroll 1,208,454$ 1,226,514$

Plan's Proportionate Share of the Net Pension Liability/(Asset) as a

Percentage of its Covered Payroll 386.21% 339.61%

Plan's Proportionate Share of the Fiduciary Net Position as a Percentage

of the Plan’s Total Pension Liability 69.76% 70.60%

Plan's Proportionate Share of Aggregate Employer Contribution 298,630$ 387,206$

Notes to Schedule

1) Covered employee payroll represents compensation earnable and pensionable compensation. Only

compensation earnable and pensionable compensation that would possibly go into the determination

of retirement benefits are included.

* Fiscal year 2014 was the first year of implementation, therefore only the first five years are

available.

* At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for

purposes of calculating net pension liability. Due to the change in methodology, comparisons to

prior years 2014 and 2015 have been removed.

99

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

100


101

Fund Type

Special Revenue

Capital Projects

Funds

NON-MAJOR GOVERNMENTAL FUNDS

Description

These funds account for restricted revenues (for specified purposes).

These funds account for construction or acquisition of governmental capital

assets (capital outlay).

City of Fort Bragg, California Combining Balance Sheet Non-major Governmental Funds June 30, 2019

102

Special

Revenue

Funds

Capital

Projects

Funds

Nonmajor

Funds Totals

ASSETS:

Current Assets:

Cash & Investments 1,277,420$ 13,408$ 1,290,828$

Taxes Receivable 3,742 - 3,742

Intergovernmental receivable 140,857 - 140,857

Loans/Notes receivable 220,066 - 220,066

Other receivable 11 - 11

Total Assets 1,642,096$ 13,408$ 1,655,504$


AND FUND BALANCES:


Accounts Payable 510$ -$ 510$ Accrued Liabilities 2,392 - 2,392 Due to Other Funds 107,779 18,675 126,454 Total current liabilities 193,007 18,675 211,682

Total liabilities 193,007 18,675 211,682


Unavailabe revenue 216,407 - 216,407

Total deferred inflows of resources 216,407 - 216,407

Total liabilities and deferred inflows 409,414 18,675 428,089

Fund Balances:

Restricted 388,327 - 388,327

Assigned 853,806 - 853,806

Unassigned (deficit) (9,451) (5,267) (14,718)

Total fund balances 1,232,682 (5,267) 1,227,415

Total liabilities deferred inflows and fund balances 1,642,096$ 13,408$ 1,655,504$

Governmental Funds

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds For the year ended June 30, 2019

103

Special

Revenue Funds

Capital Projects

Funds

Nonmajor

Funds Totals

REVENUES:

Taxes and assessments 53,889$ -$ 53,889$

Fines and Forfeitures 47,610 - 47,610

Use of Money and Property 25,452 - 25,452

Intergovernmental 613,205 - 613,205

Charges for Services 57,322 - 57,322

Licenses and Permits 2,728 - 2,728

Other Operating - 100 100

Total revenues 800,206 100 800,306

EXPENDITURES:

General Government 4,626 6,584 11,210

Community Development 272,157 - 272,157

Public Safety 240,007 - 240,007

Public Works 198,633 - 198,633

Total expenditures 715,423 6,584 722,007

REVENUES OVER (UNDER) EXPENDITURES 84,783 (6,484) 78,299


Transfers In 261,778 447,716 709,494

Transfers out (1,755,130) (98,142) (1,853,272)

Total other financing sources and uses (1,493,352) 349,574 (1,143,778)



FINANCING (USES): (1,408,569) 343,090 (1,065,479)


Beginning of year 2,641,251 (348,357) 2,292,894

End of year 1,232,682$ (5,267)$ 1,227,415$

Governmental Funds

104


105

Fund

General Plan Maintenance Fee

Housing Trust

Parking

Parking In-Lieu Fees

Parkland Monitoring and

Reporting

State Tobacco License Fee

State Disability Access Fee

Asset Forfeiture

(continued)

To account for monies obtained from seized assets of

criminal activities. The funds are used solely to support law

enforcement purposes.

To account for funds received under California SB-1186

which mandates a state fee of $4 on any applicant for or

renewal of a local business license. The purpose is to

increase disability access and compliance with construction-

NON-MAJOR SPECIAL REVENUE FUNDS

Description

Special Revenue Funds account for the proceeds of specific revenue sources that are restricted or committed

to expenditure for specified purposes other than debt service or capital project and exclusive of resources

held in trust for individual, private orgaizations, or other governments. The City has a number of different

special revenue funds which are part of the non-operating budget. The City's non-major special revenue

funds includ the following:

To account for funds received for the annual Tobacco Retail

License to cover costs associated with administration of the

licensing program and compliance checks.

To account for General Plan Maintenance fee revenue

which is required to be used for costs related to the update

of the City’s General Plan and zoning code.

To account for Inclusionary Housing In-Lieu fee revenue

which is required to be used for affordable housing

activities.

To account for parking permit revenues and the cost of

maintaining City owned public parking lots.

To account for payments made by downtown property

owners in lieu of providing on-site parking. Accumulated

funds must be used for activities related to providing off-

street parking facilities in the central business district.

To account for payments made by Georgia Pacific for

monitoring and maintenance of the Coastal Trail

remediation area.

106

Fund

Construction/Demolition

Ordinance Revenue

Waste Management Community

Benefit Payment

Gas Tax

RMRA

Traffic & Safety

Mendocino Council of

Governments (MCOG) Main Street

Planning

Fire Equipment

Mendocino Council of

Governments (MCOG) Overall

Work Program (OWP) Grants

(continued)

To account for deposits that are made in accordance with

the City's Construction & Demolition Ordinance. Deposit

are refunded if recycling goals are met. Otherwise, the

deposits are forfeited and retained in the special revenue

fund. The funds will be used to improve construction and

demolition waste recycling facilities, education, and

programs within the City.

To account for contract extension fee received from Waste

Management. The City Council has designated these funds

for the community benefit purposes.

To account for the City’s share of the State of California’s

Road Maintenance and Rehabilitation Account which is

legally restricted to the maintenance and improvement of

City roads and streets.

To account for local transportation funds awarded for

transportation planning and technical assistance.

To account for the City’s share of State of California’s

Highway User Tax collected by the State that are legally

restricted to the maintenance and improvement of City

roads and streets.

To account for the revenue received from traffic fines which

is restricted to City street repairs and traffic safety.

To account for monies received from the Mendocino Council

of Governments (MCOG), a joint powers agency that serves

as the Regional Transportation Planning Agency in

Mendocino County for various projects including the Main

Street Realignment and Cedar Street Pedestrian

Enhancement projects.

To account for property tax revenues designated for the

purchase of equipment for the Fort Bragg Fire Department.

NON-MAJOR SPECIAL REVENUE FUNDS, Continued

Description

107

Fund

OJ Park Maintenance Fund

Developer Deposit Accounts

Safe Routes to School

Community Development Block

Grant Funds Unclassified

Program Income

COPS AB1913

Bulletproof Vest Partnership

Grant

CDBG Super NOFA Awards

STP D1 Streets & Highways

Allocation

(continued)

To account for the City’s share of highways users’ tax

revenues that are legally restricted to the planning,

construction, improvement, maintenance and operation of

City roads and streets.

Federal and State Grant Special Revenue Funds:

To account for monies received from the State or law

enforcement services under the Citizens Option for Public

Safety (COPS) Program. [the CSO funding was expended

long ago; future funding may be acquired]

To account for monies received under the Bulletproof Vest

Partnership Grant Act. This program is designed to pay up

to 50% of the cost of National Institute of Justice (NIJ)

compliant armored vests purchases for local law

enforcement.

To account for CDBG grants awarded under the 2009

Recovery Act allocation for a housing project rehabilitation

and under the 2010 General Allocation for two housing

programs, public facility improvements, and a public service

program.

To account for monies received from the Johnson Family

Trust for the maintenance of OJ Park.

To account for a federal grant providing funding to improve

the conditions and quality of bicycling and walking to

school, as well as to educate the community about safety,

health and environmental benefits of non-vehicular

transport.

The Community Development Block Grant program provides

competitive grants to enables local government to

undertake a wide range of activities intended to create

suitable living environments, provide decent affordable

house, and create economic opportunities, primarily for

persons of low and moderate income.


Description

To account for monies received from developers to cover

City costs associated with development projects.

108

Fund

State Parks Prop 84 Grant

HCD HOME Grant

State Water Resources Control

Board (SWRCB) Grant

Other State Grants

(concluded)

To account for monies received from the State of California

for construction of the Fort Bragg Coastal Restoration and

Trail project.

To account for Federal Funding to be used to re-establish a

Housing Rehabilitation Loan program for qualified low- and

moderate-income homeowners.


Description

To account for all other State Grants. Includes grant

monies recevied from the State of California for purchase

of off highway vehicles for use by the City Police

Department.

To account for State Funding to be used to upgrade the

City's wastewater treatement plant.

109


City of Fort Bragg, California Combining Balance Sheet Non-major Special Revenue Funds June 30, 2019

110

General Plan

Maintenance

Fees Housing Parking

Parking In-lieu

Fees

ASSETS:

Cash & Investments 254,812$ 76,679$ 24,689$ 8,882$

Intergovernmental receivable - - - -

Loans/Notes receivable - 3,659 - -

Other receivable - - - -

Total current assets 254,812 80,338 24,689 8,882

Total Assets 254,812$ 80,338$ 24,689$ 8,882$


AND FUND BALANCES


Accounts Payable -$ -$ -$ -$ Accrued Liabilities - - - - Due to Other Funds - - - -

Total liabilities - - - -


Unavailabe revenue - - - -

Total deferred inflows of resources - - - -

Total liabilities and deferred inflows - - - -

Fund Balances:

Restricted - - - -

Assigned 254,812 80,338 24,689 8,882

Unassigned (deficit) - - - -

Total fund balances 254,812 80,338 24,689 8,882

Total liabilities deferred inflows

and fund balances 254,812$ 80,338$ 24,689$ 8,882$

(continued)

City of Fort Bragg, California Combining Balance Sheet Non-major Special Revenue Funds For the year ended June 30, 2017

111

Parkland

Monitoring/

Reporting

State

Tobacco

License Fee

State

Disability

Access Fee

Asset

Forfeiture

Construction

/ Demolition

Ordinance

Waste

Management

Community

Benefit

Payment Gas Tax

124,001$ 12,337$ 9,409$ 300,492$ 42,703$ 269$ -$

- - - 6,841 - - 63,658

- - - - - - -

- - 11 - - - -

124,001 12,337 9,420 307,333 42,703 269 63,658

124,001$ 12,337$ 9,420$ 307,333$ 42,703$ 269$ 63,658$

-$ -$ -$ 247$ 5$ -$ -$ - - 2,391 - - - - - - - - - - 55,815

- - 2,391 247 5 - 55,815

- - - - - - -

- - - - - - -

- - 2,391 247 5 - 55,815

- - - 307,086 - - 7,843

124,001 12,337 7,029 - 42,698 269 -

- - - - - - -

124,001 12,337 7,029 307,086 42,698 269 7,843

124,001$ 12,337$ 9,420$ 307,333$ 42,703$ 269$ 63,658$

(continued)

City of Fort Bragg, California Combining Balance Sheet, continued Non-major Special Revenue Funds June 30, 2019

112

RMRA

Traffic &

Safety

Fire

Equipment

MCOG

Overall Work

Plan

ASSETS:

Cash & Investments -$ -$ 280,327$ -$

Intergovernmental receivable 23,671 - - 7,176

Loans/Notes receivable - - - -

Other receivable - - - -

Total current assets 23,671 - 284,069 7,176

Total Assets 23,671$ -$ 284,069$ 7,176$


AND FUND BALANCES


Accounts Payable -$ -$ -$ -$ Accrued Liabilities - - - - Due to Other Funds 11,671 - - 15,073

Total liabilities 11,671 - - 15,073


Unavailabe revenue - - - -

Total deferred inflows of resources - - - -

Total liabilities and deferred inflows 11,671 - - 15,073

Fund Balances:

Restricted - - - -

Assigned 12,000 - 284,069 -

Unassigned (deficit) - - - (7,897)

Total fund balances 12,000 - 284,069 (7,897)


and fund balances 23,671$ -$ 284,069$ 7,176$

(continued)

City of Fort Bragg, California Combining Balance Sheet Non-major Special Revenue Funds, continued For the year ended June 30, 2018

113

OJ Park

Maintenance

Fund

Developer

Deposit

Accounts

Federal &

State Grant

Funds Total

2,682$ 81,295$ 58,843$ 1,277,420$

- - 39,511 140,857

- - 216,407 220,066

- - - 11

2,682 81,295 314,761 1,642,096

2,682$ 81,295$ 314,761$ 1,642,096$

-$ -$ 258$ 510$ - - 1 2,392 - - 25,220 107,779

- 82,326 25,479 193,007

- - 216,407 216,407

- - 216,407 216,407

- 82,326 241,886 409,414

- - 73,398 388,327

2,682 - - 853,806

- (1,031) (523) (9,451)

2,682 (1,031) 72,875 1,232,682

2,682$ 81,295$ 314,761$ 1,642,096$

(concluded)

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Special Revenue Funds, For the year ended June 30, 2019

114

General Plan

Maintenance

Fees Housing Parking

Parking In-lieu

Fees

REVENUES:

Property Tax -$ -$ -$ -$

Fines and Forfeitures - - - -

Use of Money and Property 6,121 1,744 651 151

Intergovernmental - - - -

Charges for Services 57,322 - - -

Licenses and Permits - - - -

Capital Grant Revenue - - - -

Total revenues 63,443 1,744 651 151

EXPENDITURES:

General Government - - - -

Community Development 37,803 - - -

Public Safety - - - -

Public Works - - - -

Total expenditures 37,803 - - -

REVENUES OVER (UNDER) EXPENDITURES 25,640 1,744 651 151


Transfers In - - - 8,300

Transfers out - - (8,300) -

Total other financing sources and uses - - (8,300) 8,300



FINANCING (USES): 25,640 1,744 (7,649) 8,451


Beginning of year 229,172 78,594 32,338 431

End of year 254,812$ 80,338$ 24,689$ 8,882$

(continued)

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Special Revenue Funds, continued For the year ended June 30, 2018ended June 30, 2017

115

Parkland

Monitoring/

Reporting

State

Tobacco

License Fee

State

Disability

Access Fee

Asset

Forfeiture

Construction

/ Demolition

Ordinance

Waste

Managemen

t Community

Benefit

Payment Gas Tax

-$ -$ -$ -$ -$ -$ -$

- - - 43,510 - - -

2,873 249 173 6,811 979 - -

- - 3,088 - - - 188,550

- - - - - - -

- 2,728 - - - - -

- - - - - - -

2,873 2,977 3,261 50,321 979 - 188,550

4,463 - 163 - - - -

- - - - 201 - -

- - - 31,688 - - -

- - - - - - 107,921

4,463 - 163 31,688 201 - 107,921

(1,590) 2,977 3,098 18,633 778 - 80,629

- - - - - - 66,054

- - - - - - (148,812)

- - - - - - (82,758)

(1,590) 2,977 3,098 18,633 778 - (2,129)

125,591 9,360 3,931 288,453 41,920 269 9,972

124,001$ 12,337$ 7,029$ 307,086$ 42,698$ 269$ 7,843$

(continued)

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances, continued Non-major Special Revenue Funds For the year ended June 30, 2019

116

RMRA

Traffic &

Safety Fire Equipment

MCOG

Overall Work

Plan

REVENUES:

Property Tax -$ -$ 53,889$ -$

Fines and Forfeitures - 4,100 - -

Use of Money and Property - - 5,700 -

Intergovernmental 149,757 - - 24,806

Charges for Services - - - -

Licenses and Permits - - - -


Total revenues 149,757 4,100 59,589 24,806

EXPENDITURES:

General Government - - - -

Community Development - - - 30,556

Public Safety - 5,009 - -

Public Works 71,703 - - 18,761

Total expenditures 71,703 5,009 - 49,317

REVENUES OVER (UNDER) EXPENDITURES 78,054 (909) 59,589 (24,511)


Transfers In - - - 29,584

Transfers out (66,054) - - (39,490)

Total other financing sources and uses (66,054) - - (9,906)



FINANCING (USES): 12,000 (909) 59,589 (34,417)


Beginning of year - 909 224,480 26,520

End of year 12,000$ -$ 284,069$ (7,897)$

(continued)


117

OJ Park

Maintenance

Fund

Developer

Deposit

Accounts

Federal & State

Grant Funds Total

-$ -$ -$ 53,889$

- - - 47,610

- - - 25,452

- - 247,004 613,205

- - - 57,322

- - - 2,728

- - - -

- - 247,004 800,206

- - - 4,626

- - 203,597 272,157

- - 203,310 240,007

248 - - 198,633

248 - 406,907 715,423

(248) - (159,903) 84,783

- - 157,840 261,778

- - (1,492,474) (1,755,130)

- - (1,334,634) (1,493,352)

(248) - (1,494,537) (1,408,569)

2,930 (1,031) 1,567,412 2,641,251

2,682$ (1,031)$ 72,875$ 1,232,682$

(concluded)

City of Fort Bragg, California Combining Balance Sheet Federal and State Grant Special Revenue Funds June 30, 2019

118

Safe

Routes to

School

CDBG

Unclassified

Program

Income COPS

Bulletproof

Vest

Partnership

Grant

CDBG Super

NOFA Grants

ASSETS:

Cash & Investments -$ 10,467$ -$ -$ 36,241$

Intergovernmental receivable - - - - 22,176

Loans/Notes receivable - - - - -

Total current assets - 10,467 - - 58,417

Total Assets -$ 10,467$ -$ -$ 58,417$


AND FUND BALANCES


Accounts Payable -$ -$ -$ -$ 258$ Accrued Liabilities - - - - - Due to Other Funds - - - 523 24,697 Total current liabilities - - - 523 24,955

Noncurrent liabilities

Total liabilities - - - 523 24,955


Unavailabe revenue - - - - -

Total deferred inflows of resources - - - - -

Total liabilities and deferred inflows - - - 523 24,955

Fund Balances:

Restricted - 10,467 - - 33,462

Assigned - - - - -

Unassigned (deficit) - - - (523) -

Total fund balances - 10,467 - (523) 33,462

Total liabilities deferred inflows and fund balances -$ 10,467$ -$ -$ 58,417$

(continued)


119

STP D1

Streets &

Highway

Allocation

State Parks

Prop 84 Grants

HCD HOME

Grant

Other State

Grants Total

1,266$ -$ 10,288$ 581$ 58,843$

- 591 - 16,744 39,511

- - 216,407 - 216,407

1,266 591 226,695 17,325 314,761

1,266$ 591$ 226,695$ 17,325$ 314,761$

-$ -$ -$ -$ 258$ - - 1 - 1 - - - - 25,220 - - 1 - 25,479

- - 1 - 25,479

- - 216,407 - 216,407

- - 216,407 - 216,407

- - 216,408 - 241,886

1,266 591 10,287 17,325 73,398

- - - - -

- - - - (523)

1,266 591 10,287 17,325 72,875

1,266$ 591$ 226,695$ 17,325$ 314,761$

(concluded)

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Federal and State Grant Special Revenue Funds For the Year-ended June 30, 2019

120

Safe Routes to

School

CDBG

Unclassified

Program Income COPS

Bulletproof Vest

Partnership

Grant

REVENUES:

Intergovernmental -$ -$ 148,746$ 1,105$


Total revenues - - 148,746 1,105

EXPENDITURES:

Community Development - 4,988 - -

Public Safety - - 203,310 -

Total expenditures - 4,988 203,310 -

REVENUES OVER (UNDER) EXPENDITURES - (4,988) (54,564) 1,105


Transfers In 24,783 - - -

Transfers out (153,140) - - -

Total other financing sources and uses (128,357) - - -



FINANCING (USES): (128,357) (4,988) (54,564) 1,105


Beginning of year 128,357 15,455 54,564 (1,628)

End of year -$ 10,467$ -$ (523)$

(continued)

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Federal and State Grant Special Revenue Funds For the Year-ended June 30, 2018

121

CDBG Super

NOFA Grants

STP D1 Streets &

Highway

Allocation

State Parks

Prop 84 Grants

HCD HOME

Grant

Other State

Grants Total

39,800$ 27,192$ 661$ -$ 29,500$ 247,004$

- - - - - -

39,800 27,192 661 - 29,500 247,004

129,797 - - 2,795 66,017 203,597

- - - - - 203,310

129,797 - - 2,795 66,017 406,907

(89,997) 27,192 661 (2,795) (36,517) (159,903)

93,567 - - - 39,490 157,840

(315,174) (27,192) (994,576) - (2,392) (1,492,474)

(221,607) (27,192) (994,576) - 37,098 (1,334,634)

(311,604) - (993,915) (2,795) 581 (1,494,537)

345,066 1,266 994,506 13,082 16,744 1,567,412

33,462$ 1,266$ 591$ 10,287$ 17,325$ 72,875$

(concluded)

City of Fort Bragg, California Combining Balance Sheet Non-major Capital Projects Funds June 30, 2019

122

Coastal

Trail

Municipal

Facilities

Projects Totals

ASSETS:

Cash & Investments 13,408$ -$ 13,408$

Due from other funds - - -

Total Current Assets 13,408 - 13,408

Total Assets 13,408$ -$ 13,408$


AND FUND BALANCES

Current liabilities: Due to Other Funds 18,675 - 18,675 Total current liabilities 18,675 - 18,675

Total liabilities 18,675 - 18,675

Fund Balances:

Restricted - - -

Assigned - - -

Unassigned (deficit) (5,267) - (5,267)

Total fund balances (5,267) - (5,267)


and fund balances 13,408$ -$ 13,408$

City of Fort Bragg, California Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Capital Projects Funds For the year ended June 30, 20190, 2017

123

Coastal

Trail

Municipal

Facilities

Projects Totals

REVENUES:

Other Operating 100$ -$ 100$

Total revenues 100 - 100

EXPENDITURES:

Repairs & Maintenance 6,584 - 6,584

Capital Outlay - - -

Total expenditures 6,584 - 6,584

REVENUES OVER (UNDER) EXPENDITURES (6,484) - (6,484)


Transfers In 447,716 - 447,716

Transfers out - (98,142) (98,142)

Total other financing sources and uses 447,716 (98,142) 349,574



FINANCING (USES): 441,232 (98,142) 343,090


Beginning of year (446,499) 98,142 (348,357)

End of year (5,267)$ -$ (5,267)$

124

Fund Type Description

Facilities Repair & Maintenance

Information Technology

Fleet & Equipment Services

INTERNAL SERVICE FUNDS

Accounts for all activities of the City's central garage operations, the costs

of which are distributed among designated user departments using

equitable formulas.

Accounts for all activities of the City's computer networks, the costs

of which are distributed among user departments using equitable

formulas.

Accounts for the maintenance of all City owned buildings.

City of Fort Bragg, California Combining Statement of Net Position Internal Service Funds June 30, 2019

125

Facilities

Repair &

Maintenance

Information

Technology

Fleet &

Equipment

Services Totals

ASSETS:

Current assets:

Cash & Investments 523,558$ 163,410$ 155,078$ 842,046$ Total current assets 523,558 163,410 155,078 842,046 Noncurrent assets:

Capital assets, net 39,827 68,094 753,000 860,921 Total noncurrent assets 39,827 68,094 753,000 860,921

Total Assets 563,385$ 231,504$ 908,078$ 1,702,967$

LIABILITIES AND NET POSITION


Accounts Payable 2,143$ 22,046$ 6,382$ 30,571$

Accrued Payroll - 3,767 1,025 4,792 Due to Other Funds - - - - Total current liabilities 2,143 25,813 7,407 35,363

Total liabilities 2,143 25,813 7,407 35,363

Net position:

Net Investment in Capital Assets 39,827 68,094 753,000 860,921

Unrestricted 521,415 137,597 147,671 806,683

Total net position 561,242 205,691 900,671 1,667,604

Total liabilities and net position 563,385$ 231,504$ 908,078$ 1,702,967$

City of Fort Bragg, California Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year-ended June 30, 2019

126

Facilities

Repair &

Maintenance

Information

Technology

Fleet &

Equipment

Services Totals

OPERATING REVENUES:

Use of Money and Property 9,564$ -$ -$ 9,564$

Other Operating - - 5,440 5,440

Interdepartmental Charges 299,036 460,112 502,973 1,262,121

Total operating revenues 308,600 460,112 508,413 1,277,125

OPERATING EXPENSES:

Personnel Services 117,585 207,707 127,314 452,606

Repairs & Maintenance 31,547 2,124 55,171 88,842

Materials & Supplies- Enterprise - 163,865 66,682 230,547

Contractual Services - 1,005 1,437 2,442

Allocated Overhead 13,522 24,156 14,476 52,154

Depreciation 2,084 19,354 125,859 147,297

Total operating expenses 164,738 418,211 390,939 973,888

OPERATING INCOME (LOSS) 143,862 41,901 117,474 303,237

NET INCOME (LOSS) BEFORE TRANSFERS 143,862 41,901 117,474 303,237

Transfers In 98,142 - - 98,142

Transfers out - - - -

Total transfers 98,142 - - 98,142

Change in net position 242,004 41,901 117,474 401,379

NET POSITION (DEFICIT):

Beginning of year 319,238 163,790 783,197 1,266,225

End of year 561,242$ 205,691$ 900,671$ 1,667,604$

City of Fort Bragg, California Combining Statement of Cash Flows Internal Service Funds For the Year-ended June 30, 2019

127

Facilities

Repair &

Maintenance

Information

Technology

Fleet &

Equipment

Services Totals CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided 308,600$ 460,112$ 508,413$ 1,277,125$

Cash paid to suppl iers for goods and services (50,403) (170,368) (144,895) (365,667)

Cash paid to employees for services (117,585) (206,872) (138,701) (463,158)

Net cash provided (used) by operating activities 140,612 82,871 224,817 448,300

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers received 98,142 - - 98,142

Transfers pa id - - - -

Net cash provided (used) by noncapital financing activities 98,142 - - 98,142

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES:Acquis i tion and construction of capita l assets (19,259) (13,408) (69,739) (102,406)

Net cash (used) by capital and related financing activities (19,259) (13,408) (69,739) (102,406)

Net increase (decrease) in cash and cash equivalents 219,495 69,463 155,078 444,036

CASH AND CASH EQUIVALENTS:

Beginning of year 304,063 93,947 0 398,010

End of year 523,558$ 163,410$ 155,078$ 842,046$

Reconciliation of income from operations to net

cash provided (used) by operating activities:

Operating income (loss ) 143,862$ 41,901$ 117,474$ 303,237$

Adjustments to reconci le operating income

to net cash provided by operating activi ties :

Depreciation 2,084 19,354 125,859 147,297

(Increase) decrease in current assets :

Prepaid i tems - 20,447 - 20,447

Increase (decrease) in l iabi l i ties :

Accounts payable (5,334) 335 (7,129) (12,129)

Accrued l iabi l i ties - 835 (11,387) (10,552)

Net cash provided by operating activities 140,612$ 82,871$ 224,817$ 448,300$

128


129

Page(s)

Financial Trends

130-140

Revenue Capacity

141-149

Debt Capacity

150-156

Demographic and Economic Information

158-159

Operating Information

160-162

These schedules offer demographic and economic indicators to help

the reader understand the environment within which the City's

financial activities take place.

These schedules contain service and infrastructure data to help the

reader understand how the information in the City's financial report

relates to the services the City provides and the activities it

performs.

STATISTICAL SECTION

This part of the City of Fort Bragg's comprehensive annual financial report presents detailed

information as a context for understanding what the information in the financial statements,

footnotes, and required supplementary information says about the City's overall financial

health.

Contents

These schedules contain trend information to help the reader

understand how the City's financial performance and well-being

have changed over time.

These schedules contain information to help the reader assess the

City's ability to generate revenues. Property taxes, sales and use

taxes, charges for services, licenses, permits and fees and

intergovernmental revenue are the City's most significant revenue

sources.

These schedules contain information to help the reader assess the

affordability of the City's current levels of outstanding debt and the

City's ability to issue additional debt in the future.

City of Fort Bragg, California Net Position by Component Last Ten Fiscal Years (Fiscal year ended June 30) (Accrual basis of accounting) (In Thousands)

130

2010 2011 2012 2013

Governmental activities

Net investment in capital assets 24,795$ 25,801$ 30,664$ 30,444$

Restricted 4,450 4,825 4,776 5,671

Unrestricted 1,843 1,953 1,356 428

Total governmental activities net position 31,088$ 32,579$ 36,796$ 36,543$


Net investment in capital assets 7,255 7,121$ 31,319$ 30,764$

Restricted 64 108 108 72

Unrestricted 2,997 2,775 3,709 4,294

Total business-type activities net position 10,316$ 10,004$ 35,136$ 35,130$

Primary government

Net investment in capital assets 32,050$ 32,922$ 61,983$ 61,208$

Restricted 4,514 4,933 4,884 5,743

Unrestricted 4,840 4,728 5,065 4,722

Total primary government net position 41,404$ 42,583$ 71,932$ 71,673$

Source: City Finance Department

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2010 2011 2012 2013 2014

Governmental activities Business-type activities

City of Fort Bragg, California Net Position by Component Last Ten Fiscal Years (Fiscal year ended June 30) (Accrual basis of accounting) (In Thousands)

131

2014 2015 2016 2017 2018 2019

31,944$ 35,914$ 38,647$ 39,523$ 42,293$ 41,400$

5,987 2,289 3,536 2,513 3,758 1,279

232 (203) (399) (1,518) (5,115) (2,456)

38,163$ 38,625$ 41,784$ 40,518$ 40,935$ 40,224$

30,531$ 30,047$ 30,503$ 31,597$ 33,572$ 37,806$

101 108 108 108 108 108

3,603 3,649 4,232 6,912 7,515 8,094

34,235$ 33,804$ 34,843$ 38,617$ 41,195$ 46,008$

62,475$ 65,961$ 69,150$ 71,119$ 75,865$ 79,206$

6,088 3,022 3,644 2,621 3,866 1,387

3,835 3,466 3,833 5,395 2,400 5,638

72,398$ 72,429$ 76,627$ 79,135$ 82,131$ 86,232$

2015 2016 2017 2018 2019

City of Fort Bragg, California Changes in Net Position Last Ten Fiscal Years (Fiscal year ended June 30) (Accrual basis of accounting) (In Thousands)

132

2010 2011 2012 2013 2014

Expenses


General government 2,518$ 2,591$ 2,540$ 2,708$ 1,500$

Public safety 4,011 3,596 3,493 3,399 3,851

Public works 2,286 1,532 1,532 1,874 2,176

Community development 2,489 3,361 1,877 1,529 3,485

Parks and recreation

Interest and fiscal charges 311 296 177 49 42

Total governmental activities expenses 11,615 11,376 9,619 9,559 11,054


Water 2,401 2,179 2,107 2,138 2,539

Sewer 2,465 2,425 2,983 3,063 3,095

C.V. Starr Center - - 183 2,236 2,262

Total business-type activities expenses 4,866 4,604 5,273 7,437 7,896

Total primary government expenses 16,481 15,980 14,892 16,996 18,950

Program revenues


Charges for services:

General government 3,193 3,087 2,718 2,701 2,851

Public safety 30 30 29 40 72

Public works 13 5 4 5 34

Community development 5 9 349 100 58

Operating grants and contributions 10,622 2,138 684 1,572 1,567

Capital grants and contributions 2,108 602 1,096 303 1,818

Total governmental activities program revenues 15,971 5,871 4,880 4,721 6,400


Charges for services:

Water 2,018 2,108 2,194 2,404 2,229

Wastewater 2,216 2,773 2,945 3,197 3,004

C.V. Starr Center - - - 591 635

Operating grants and contributions - - - - -

Capital grants and contributions 85 - 25,132 - -

Total business-type activities program revenues 4,318 4,881 30,271 6,192 5,868

Total primary government program revenues 20,289 10,752 35,151 10,913 12,268

Net (Expense)/Revenue

Governmental activities 4,356 (5,505) (4,739) (4,838) (4,654)

Business-type activities (548) 277 24,998 (1,245) (2,028)

Total primary government net expense 3,808 (5,228) 20,259 (6,083) (6,682)

City of Fort Bragg, California Changes in Net Position Last Ten Fiscal Years (Fiscal year ended June 30) (Accrual basis of accounting) (In Thousands)

133

2015 2016 2017 2018 2019

2,593$ 2,877$ 2,221$ 2,804$ 2,384$

3,663 4,187 4,388 4,461 4,338

2,435 2,108 2,750 2,873 2,979

840 1,700 1,018 1,208 1,056

38 - -

30 26 21 53 47

9,561 10,898 10,434 11,398 10,805

2,286 2,264 2,158 2,034 1,920

2,801 2,897 2,847 2,569 2,674

2,382 2,292 2,320 2,386 2,722

7,469 7,453 7,325 6,989 7,316

17,030 18,351 17,760 18,386 18,122

2,809 2,818 1,967 1,324 1,108

50 289 299 365 371

102 344 558 1,049 1,155

- 30 232 520 293

4,702 725 1,251 2,259 765

2,383 3,762 922 3,324 3,296

10,046 7,968 5,227 8,840 6,988

2,496 2,624 2,683 2,909 3,077

3,194 3,332 3,305 3,495 3,599

706 722 696 743 711

- - - - -

- - - - -

6,396 6,678 6,683 7,147 7,387

16,442 14,646 11,911 15,987 14,375

485 (2,930) (5,207) (2,558) (3,817)

(1,073) (775) (642) 158 70

(588) (3,705) (5,849) (2,400) (3,747)

(continued)

City of Fort Bragg, California Changes in Net Position, continued Last Ten Fiscal Years (Fiscal year ended June 30) (Accrual basis of accounting) (In Thousands)

134

2010 2011 2012 2013 2014


Taxes:

Property taxes 1,988 2,075 1,413 924 943

Sales and use tax 2,154 2,147 2,271 2,390 2,490

Transient lodging tax 1,379 1,341 1,411 1,536 1,667

Franchise taxes 457 469 470 482 496

Other taxes 26 - 225 203 411

Use of money and property 58 51 91 103 45


Other general revenues 424 71 399 81 222

Special Items

Transfer in (out) (2) (55) (2) (17) (1)

Extraordinary item: Redevelopment dissolution - - 3,070 - -

Total governmental activities 6,484 6,099 9,348 5,702 6,273


Property taxes 19 231 216

Sales and use tax 772 811


Other revenues 322 407 97 98 72

Transfer in (out) 2 55 2 17 1

Total business-type activities 345 483 134 1,126 1,133

Total primary government 6,829 6,582 9,482 6,828 7,406


Governmental activities 10,840 594 4,609 864 1,619

Business-type activities (203) 760 25,132 (119) (895)

Total primary government 10,637$ 1,354$ 29,741$ 745$ 724$


Note: The City implemented Governmental Accounting Standards Board

Statement No. 75 for fiscal year ended June 30, 2019. The

implementation resulted in a prior period adjustment of $2,234,001 for

Governmental activities.

City of Fort Bragg, California Changes in Net Position, continued Last Ten Fiscal Years (Fiscal year ended June 30) (Accrual basis of accounting) (In Thousands)

135

2015 2016 2018 2018 2019

909 1,007 1,084 1,035 1,074.93

2,523 2,458 2,414 1,785 1,728

1,858 1,948 2,149 2,619 2,640

493 491 - - -

435 403 674 719 762

87 113 (23) (110) 66

195

67 120 151 61 8

(507) - -

(89) (451) (2,003) (898) (1,029)

- - - - -

6,283 6,089 3,940 5,210 5,445

234 220 234 236 249

807 846 881 915 879

42 27 56 98 168

161 271 1,242 272 77

89 451 2,003 898 1,029

1,333 1,815 4,416 2,420 2,403

7,616 7,904 8,356 7,630 7,848

6,768 3,159 (1,267) 2,652 1,628

260 1,040 3,774 2,578 2,473

7,028$ 4,199$ 2,507$ 5,230$ 4,101$

(concluded)

City of Fort Bragg, California Fund Balances of Governmental Funds Last Ten Fiscal Years (Fiscal year ended June 30) (Modified accrual basis of accounting) (In Thousands)

136

2010 2011 2012 2013 2014

General Fund

Reserved 707$

Unreserved 2,364

Total general fund 3,071$

All Other Governmental Funds:

Reserved 3,789$

Unreserved (deficit) reported in:

Special revenue funds 1,088

Capital projects funds (654)

Total all other governmental funds 4,223

Total all governmental funds 7,294$

General Fund:

Nonspendable 1$ 211$ 248$ 185$

Restricted - - - -

Committed - - - -

Assigned - - - -

Unassigned 3,560 3,775 4,007 4,434

Total general fund 3,561 3,986 4,255 4,619

All Other Governmental Funds:

Restricted 4,865 4,530 4,590 4,598

Assigned - - - -

Unassigned (deficit) - (187) (299) (1,441)

Total all other governmental funds 4,865 4,343 4,291 3,157

Total all governmental funds 8,426$ 8,329$ 8,546$ 7,776$


Note : The City implemented Governmental Accounting

Standards Board Statement No. 54 (GASB 54) for fiscal year

ended June 30, 2011, therefore balance distribution

information prior to the implementation of GASB 54 is

unavailable.

$-

$2,000

$4,000

$6,000

$8,000

$10,000

2010 2011 2012 2013 2014 2015

General Fund All Other Governmental Funds:

City of Fort Bragg, California Fund Balances of Governmental Funds Last Ten Fiscal Years (Fiscal year ended June 30) (Modified accrual basis of accounting) (In Thousands

137

2015 2016 2017 2018 2019

205$ 66$ 4$ 94$ 9$

- - - -

- 2,135 1,694 1,682

- - - -

4,553 790 968 1,172 1,451

4,758 856 3,107 2,959 3,142

2,914 3,536 2,530 3,758 1,267

1,322 1,116 1,472 1,292 3,005

(1,157) (331) 731 (470) (16)

3,079 4,321 4,733 4,580 4,255

7,837$ 5,177$ 7,839$ 7,539$ 7,397$

2015 2016 2017 2018 2019

City of Fort Bragg, California Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Fiscal year ended June 30) (Modified accrual basis of accounting) (In Thousands)

138

Revenues: 2010 2011 2012 2013 2014

Taxes and assessments 6,052$ 6,032$ 5,790$ 5,579$ 5,810$

Intergovernmental 7,760 2,692 1,773 1,897 2,946

Charges for services 2,726 2,463 2,854 2,564 2,907

Fines, forfeitures and penalties 14 17 13 23 28

Licenses and permits 307 252 241 260 234



Reimbursements -

Other 377 118 410 80 240

Total revenues 17,288 11,625 11,165 10,506 12,249

Expenditures:

Current:-

General government 1,742 1,178 1,252 2,179 1,549

Public safety 3,535 3,237 3,351 3,410 3,829

Public works 1,519 1,332 1,386 1,472 1,594

Community development 2,434 3,009 1,975 2,191 3,460

Capital outlay 6,513 1,286 1,983 874 2,431

Debt Service:-

Principal Retirement 308 107 113 107 112

Interest and fiscal charges 297 282 161 40 36

Total expenditures 16,348 10,431 10,221 10,273 13,011

Reconciliation of Governmental Revenues

Less Expenditures to Fund Equity:

Revenues over (under) expenditures 940$ 1,194$ 944$ 233$ (762)$

Other financing sources (uses):

Proceeds from capital lease

Proceeds from issuance of debt

Extraordinary loss on dissolution of redevelopment - - (1,039) - -

Transfers in 2,287 1,122 1,910 1,950 1,091

Transfers out (2,266) (1,183) (1,912) (1,966) (1,099)

Total other financing sources (uses) 21 (61) (1,041) (16) (8)

Net change in fund balances 961$ 1,133$ (97)$ 217$ (770)$

Debt service as a percentage of noncapital expenditures 6.15% 4.25% 3.33% 1.56% 1.40%


$(2,000)

$(1,500)

$(1,000)

$(500)

$-

$500

$1,000

$1,500

$2,000

2010 2011 2012 2013 2014

Net change in fund balances $961 $1,133 $(97) $217 $(770)

CHANGE IN FUND BALANCE - GOVERNMENTAL FUNDS

City of Fort Bragg, California Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Fiscal year ended June 30) (Modified accrual basis of accounting) (In Thousands)

139

2015 2016 2017 2018 2019

4,949$ 5,067$ 6,486$ 7,131$ 7,138$

7,463 5,219 1,847 4,592 772

457 242 203 139 128

178 162 211 84 118

254 273 97 132 128

120 174 55 126 213

194.81

2,930 3,413 2,345 2,691 2,453

59 127 210 82 37

16,410 14,677 11,454 14,976 11,181

2,875 2,685 2,548 2,881 2,522

3,581 4,100 4,233 4,383 4,189

3,469 1,874 1,902 1,947 1,968

834 1,693 1,011 1,201 1,050

5,058 1,725 1,992 3,780 282

116 120 127 169 175

31 26 21 17 11

15,964 12,223 11,834 14,378 10,197

446$ 2,454$ (380)$ 598$ 985$

- - - - -

5,683 2,714 3,775 2,944 2,830

(6,069) (3,292) (5,266) (3,843) (3,957)

(386) (578) (1,491) (898) (1,128)

60$ 1,876$ (1,871)$ (300)$ (143)$

1.35% 1.39% 1.50% 1.75% 1.87%

2015 2016 2017 2018 2019

$60 $1,876 $(1,871) $(300) $(143)

City of Fort Bragg, California Governmental Fund Tax Revenue by Source Last Ten Fiscal Years (Fiscal year ended June 30) (Modified accrual basis of accounting) (In Thousands)

140

Fiscal

Year

Ended Sales & Transient Other

June 30, Property (1) Use Tax Occupancy Tax Taxes Total

2010 2,050 2,155 1,379 637 6,221

2011 2,075 2,147 1,341 639 6,202

2012 1,413 2,271 1,411 859 5,954

2013 924 2,409 1,561 685 5,579

2014 943 2,445 1,668 754 5,810

2015 909 2,523 1,858 928 6,218

2016 1,007 2,458 1,948 894 6,307

2017 1,084 2,414 2,149 674 6,321

2018 1,035 2,705 2,619 719 7,078

2019 1,075 2,607 2,640 762 7,085


(1) Decrease in property taxes beginning in fiscal year 2012 relates to the dissolution of the Redevelopment Agency. Upon the

dissolution of the Redevelopment Agency on February 1, 2012, property taxes received by the Redevelopment Successor Agency

are reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government.

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

TAX REVENUES BY SOURCE -GOVERNMENTAL FUNDS

Property (1) Sales & Use Tax Transient Occupancy Tax Other Taxes

City of Fort Bragg, California Principal Sales Tax Producers Last Fiscal Year and Nine Years Ago a a a

141

Taxpayer Business Type Taxpayer Business Type

Arco AM/PM Mini Marts Service Stations Amerigas Propane Fuel Oil/Ice Sales

Boatyard Tobacco Cigar Stores Baxman Gravel Company Bldg Matls-Whsle

Chevron Service Stations Service Stations Branesky Sheet Metal Bldg Matls-Whsle

CVS/Pharmacy Drug Stores Canclini Television & Appliance Office Eqpmt Store

David's Deli Fast Food Restaurant Chevron Service Stations Service Stations

Denny's Restaurants Restaurants W/Beer Circle K Service Stations Service Stations

Dollar Tree Stores Variety Stores CVS/Pharmacy Drug Stores

Geo Aggregates Bldg Matls-Whsle Denny's Restaurants Restaurants W/Beer

Harvest Market Supermarkets Harvest Market Supermarkets

McDonald's Restaurants Fast Food Restaurant Kemppe Liquid Gas Fuel Oil/Ice Sales

Mendo Mill & Lumber Company Building Matls Store McDonald's Restaurants Fast Food Restaurant

Mendocino County Horticulture Supply Nursery Mendo Mill & Lumber Company Building Matls Store

O'reilly Auto Parts Auto Supply Stores Mendocino Coast Petroleum Fuel Oil/Ice Sales

Redwood Coast Fuels Oil & Gas Products Mendocino County Horticulture Supply Nursery

Red Rhino Express Service Stations Red Rhino Express Service Stations

Rite Aid Drug Stores Drug Stores Rite Aid Drug Stores Drug Stores

Rossi Building Materials Building Matls Store Rossi Building Materials Building Matls Store

Safeway Stores Supermarkets Safeway Stores Supermarkets

Sinclair Service Stations Service Stations Sears Roebuck & Company Department Stores

Sport Chrysler Jeep Dodge New Car Dealers Speedex Gasoline Service Stations

Taco Bell Fast Food Restaurant Sport Chrysler Jeep Dodge New Car Dealers

The Brewery Shop Restaurants W/Onsale The Brewery Shop Specialty Food Store

True Value Hardware Hardware Stores True Value Hardware Hardware Stores

Two Short Sales Plumbing & Electric Two Short Sales Plumbing & Electric

US Cellular Specialty Stores Walsh Oil Company Oil & Gas Products

Source: MuniServices, LLC

2018-19 2009-10

City of Fort Bragg, California Historical Sales Tax Amounts by Benchmark Year Last Fiscal Year and Nine Years Ago a a a

142

CATEGORY NAME 2019 Q1 2018 Q1 2017 Q1 2016 Q1 2015 Q1 2014Q1 2013 Q1 2012Q1 2011Q1

Accommodation and Food Services 259,945 277,599 252,927 226,310 203,407 196,677 199,572 191,030 185,309

Administrative and Support and Waste

Management and Remediation Services 772 1,883 1,938 2,019 2,168 1,929 877 768 637

Agriculture, Forestry, Fishing and Hunting 456 0 334 0 1,430 1,903 1,975 2,129 1,992

Arts, Entertainment, and Recreation 229 270 357 109 250 81 1,777

Construction 25,359 16,848 16,135 16,763 15,393 15,545 14,419 12,722 10,369

Health Care and Social Assistance 3,140 9,154 8,666 8,992 8,604 8,927 4,282 2,823 2,324

Information 1,265 1,161 1,197 1,221 1,094 1,202 1,335 1,234 1,324

Manufacturing 41,956 31,268 27,828 24,279 7,461 7,676 8,457 11,295 9,401

Other Services (except Public Administration) 32,360 31,901 32,372 31,146 29,595 28,275 28,846 28,930 28,610

Professional, Scientific, and Technical Services 2,974 2,979 3,376 3,581 3,342 3,467 4,831 5,845 10,806

Real Estate and Rental and Leasing 8,341 8,080 9,150 8,757 8,970 9,268 10,743 10,468 7,491

Retail Trade 1,078,184 1,102,517 983,204 970,199 943,204 923,380 910,002 920,497 910,158

Wholesale Trade 75,225 57,138 82,519 91,530 113,557 134,042 162,177 163,331 107,318All Other Sectors 14,083 1,854 5,268 8,344 20,230 5,032 4,731 1,059 1,084

Grand Total 1,544,288 1,542,653 1,425,272 1,393,140 1,358,564 1,337,572 1,352,248 1,352,213 1,278,598


City of Fort Bragg, California Assessed Value and Estimated Actual Value of Taxable Property, City Wide Last Ten Fiscal Years (In Thousands) a a

143

Fiscal Year

End Secured Property* Unsecured Property

Taxable Assessed

Value % Change

Total

Direct Tax

Rate (1)

Estimated Actual

Taxable Value (2)

Factor of Taxable

Assessed Value

(2)

2009-10 660,917$ 30,217$ 691,134$ 2.3% 1.082000 - -

2010-11 609,153$ 29,654$ 638,807$ -7.6% 1.102000 - -

2011-12 603,272$ 29,066$ 632,338$ -1.0% 1.123000 710,404 1.123456

2012-13 579,450$ 31,513$ 610,963$ -3.4% 1.113100 611,333 1.000606

2013-14 585,992$ 29,641$ 615,633$ 0.8% 1.125000 624,469 1.014352

2014-15 590,079$ 31,347$ 621,426$ 0.9% 1.127000 689,061 1.108838

2015-16 607,137$ 31,275$ 638,412$ 2.7% 1.132000 702,975 1.101131

2016-17 626,121$ 32,889$ 659,009$ 3.2% 1.133000 852,603 1.293765

2017-18 646,586$ 32,288$ 678,874$ 3.0% 1.133000 902,380 1.329231

2018-19 671,692$ 31,556$ 703,249$ 6.7% 1.133000 918,610 1.306238

( - ) Indicates Data unavailable.

1.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median

sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

Source: Mendocino County Assessor data, MuniServices, LLC.

Source: 2010-11 and prior: previously published CAFR Report.

*Secured Property is net of exemptions and includes Unitary value.

$560,000

$580,000

$600,000

$620,000

$640,000

$660,000

$680,000

$700,000

$720,000

Assessed Value Of Taxable Property

City of Fort Bragg, California Assessed Value of Property by Use Code, City Wide Last Seven Fiscal Years (In Thousands) In thousands In thousands

144

Category 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Residential 361,278 347,694 351,259 357,224 369,852 393,470 375,474 395,888

Commercial 161,784 164,165 165,103 163,032 167,141 150,666 153,767 156,832

Industrial 43,763 30,593 36,342 36,807 37,595 37,908 38,037 39,021

Vacant 21,468 21,552 18,931 18,682 18,963 21,162 21,817 31,187

Professional - - - - 179 9,804 19,769 23,423

Recreation 8,962 9,119 7,905 7,593 6,391 7,101 2,676 20,036

Institution 3,826 3,931 4,024 4,285 4,513 4,515 3,761 2,691

Miscellaneous 477 689 698 701 735 1,120 31,285 2,613

Unitary 670 543 542 543 543 340 - -

Agriculture - 34 33 34 34 34 - -

Unknown 1,044 1,130 1,149 1,178 1,192 - - -

Net Secured Value 240,950 230,626 233,578 590,079 607,137 626,121 646,586 671,692

Unsecured 29,066 31,513 29,641 31,347 31,275 32,889 32,288 31,556

Net Taxable Value 270,016 262,139 263,219 621,426 638,412 659,009 678,874 703,249

Source: Mendocino County Assessor data, MuniServices, LLC

Use code categories are based on Mendocino County Assessor's data

395,888 156,832

39,021

31,187

23,423

20,036 2,691 2,613

-

- -

FY 2018-19

Residential Commercial Industrial Vacant Professional Recreation

Institution Miscellaneous Unitary Agriculture Unknown

145


City of Fort Bragg, California Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (In Thousands) (In Thousands) (In Thousands)

146

2009-10 2010-11 2011-12 2012-13 2013-14

COUNTY GENERAL FUND 0.000000 0.000000 0.745000 0.745000 0.745000

CITY OF FORT BRAGG 0.000000 0.000000 0.255000 0.255000 0.255000

TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000

Override Assessments

LOCAL SPECIAL DISTRICSTS 0.010000 0.013000 0.012000 0.012000 0.011000

SCHOOLS 0.072000 0.089000 0.111000 0.119000 0.114000

TOTAL 0.082000 0.102000 0.123000 0.131000 0.125000

TOTAL TAX RATE 1.082000 1.102000 1.123000 1.131000 1.125000

Source: Mendocino County Auditor/Controller data, MuniServices, LLC

Source: 2010-11 and prior, previously published CAFR Report

TRA 001-001 is represented for this report

Rates are not adjusted for ERAF

City of Fort Bragg, California Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (In Thousands) (In Thousands) (In Thousands)

147

2014-15 2015-16 2016-17 2017-18 2018-19

0.745000 0.745000 0.745000 0.745000 0.745000

0.255000 0.255000 0.255000 0.255000 0.255000

1.000000 1.000000 1.000000 1.000000 1.000000

0.026000 0.025000 0.018000 0.026000 0.024000

0.101000 0.107000 0.115000 0.107000 0.114000

0.127000 0.132000 0.133000 0.133000 0.138000

1.127000 1.132000 1.133000 1.133000 1.138000

City of Fort Bragg, California Principal Property Tax Payers Last Fiscal Year and Nine Years Ago (In Thousands) (In Thousands) (In Thousands)

148

Taxpayer Taxable Value ($)

Percent of

Total City

Taxable

Value (%)

Taxable Value

($)

Percent of

Total City

Taxable

Value (%)

Georgia Pacific Corporation 32,764,583 4.66% 78,468,023 11.38%

Rap Investors Lp 11,310,057 1.61%

Boatyard Associates Phase Ii T 10,252,613 1.46% 9,059,269 1.31%

Safeway Inc 7,019,345 1.00% 7,292,298 1.06%

North Coast Brewery 6,791,705 0.97%

Colombi Jeanette Succttee 4,927,010 0.70%

Hurst Jason S 4,805,115 0.68%

Tanti Family Ii Llc 4,631,843 0.66%

Kao Kuami 4,519,747 0.64% 3,989,822 0.58%

Ansari Ghulam Murtaza & Tenzil 4,373,416 0.62%

Kashi Keshav Investments Llc 4,295,717 0.61% 4,260,164 0.62%

Grosvenor Van Ness Associates 4,200,720 0.60% 3,711,792 0.54%

Longs Drug Stores California L 3,973,732 0.57% 3,846,632 0.56%

Ray Ronald R Ttee 3,867,529 0.55%

Fort Bragg Hotel Llc 3,646,087 0.52%

Keaton Richard J & Julie 3,251,899 0.46% 2,866,486 0.42%

Noyo Vista Inc 3,228,608 0.46% 2,824,002 0.41%

Moura Senior Housing 2,722,397 0.39% 2,390,780 0.35%

Rbj & Associates Llc 2,656,944 0.38% 2,421,990 0.35%

Taubold Timothy E Ttee 2,589,496 0.37%

Miller Helen Centeno 2,588,016 0.37%

Kemppe Liquid Gas Corporation 2,559,161 0.36% 3,860,012 0.56%

Lee Michael V & Dona H Ttees 2,477,021 0.35%

Brashear Ronald & Lola L Ttees 2,474,180 0.35%

Mendocino Coast Hotel Llc 2,474,024 0.35%

Tradewinds Lodge 7,124,191 1.03%

Feil Scott E & Diana E 6,400,800 0.93%

Colombi Robert Ttee 5,522,202 0.80%

Rap Investors 5,386,761 0.78%

Hurst James C & Barbara J Ttee 4,330,252 0.63%

Bell Charles H & Ila Lynn Ttee 4,226,038 0.61%

Anderson Logging 3,724,368 0.54%

North Otown Industrial Center 3,417,346 0.50%

Braxton Senior Living Property 3,334,125 0.48%

Affinito Dominic J & Juliette 3,205,124 0.47%

Reddy Govind & Sarojini 3,061,955 0.44%

Baxman Charles E Ttee 2,516,159 0.37%

Comcast 2,367,861 0.34%

Total Top 25 Taxpayers 138,400,965 19.68% 179,608,452 26.06%

Total Taxable Value 703,248,523 100.00% 689,266,475 100.00%

Source: Mendocino County Assessor data, MuniServices, LLC

2018-19 2009-10

City of Fort Bragg, California Property Tax Levies and Collections For the Last Ten Fiscal Years (In Thousands) (In Thousands) (In Thousands)

149

Fiscal

Year Taxes Levied

Ended for the Percentage

June 30, Fiscal Year Amount of Levy

2009 288,495 274,649 95.2%

2010 293,999 279,753 95.2%

2011 299,429 287,121 95.9%

2012 294,235 283,594 96.4%

2013 251,307 243,397 96.9%

2014 253,017 245,915 97.2%

2015 257,387 250,358 97.3%

2016 265,826 258,276 97.2%

2017 268,987 264,012 98.2%

2019 275,316 267,695 97.2%

Note: Mendocino County does not track collections of delinquent taxes by year in subsequent years.

Source: Mendocino County Auditor-Controller's Office

Fiscal Year of the Levy

Collected within the

-

50,000

100,000

150,000

200,000

250,000

300,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2019

Total Tax Levy Collected

City of Fort Bragg, California Ratios of Outstanding Debt by Type Last Ten Fiscal Years (In Thousands, Except Per Capita Amount) (In Thousands) (In Thousands)

150

Fiscal

Year Total Total

Ended Certificates of Capital Governmental Certificates of Notes Capital Business-type

June 30, Participation Leases Activities Participation Payable Leases Activities

2010 5,702 98 5,800 4,360 1,874 878 7,112

2011 5,533 32 5,565 4,130 1,767 769 6,666

2012 (2) 943 - 943 3,237 1,481 626 5,344

2013 842 - 842 3,013 1,375 457 4,845

2014 777 - 777 3,217 1,314 367 4,898

2015 660 - 660 2,896 1,207 240 4,343

2016 539 - 539 2,578 1,102 123 3,803

2017 412 - 412 2,252 975 - 3,227

2018 280 - 280 1,913 846 - 2,759

2019 143 - 143 6,568 741 - 7,309

N/A indicates information is not available

(1) See Schedule of Demographic and Economic Statistics for personal and per capita data.


(2) RDA bonds included from 2006 to 2011 are not included in 2012 and after due to the dissolution of the

Redevelopment Agency.

Governmental Activities Business-type Activities

City of Fort Bragg, California Ratios of Outstanding Debt by Type Last Ten Fiscal Years (In Thousands, Except Per Capita Amount) (In Thousands) (In Thousands)

151

Total Percentage

Primary of Personal Per

Government Income (1) Capita (1)

12,912 8.9% 1,884

12,231 N/A 1,779

6,287 4.4% 867

5,687 3.9% 778

5,675 3.7% 772

5,003 3.2% 681

4,342 2.7% 566

3,639 2.1% 474

3,039 1.7% 405

7,452 4.2% 992

City of Fort Bragg, California Legal Debt Margin Information Last Ten Fiscal Years (Fiscal Year-ended June 30) (In Thousands) (In Thousands)

152

2010 2011 2012

Assessed Value 660,917$ 609,153$ 603,272$

Conversion Percentage 25% 25% 25%

Adjusted Assessed Value 165,229 152,288 150,818

Debt Limit Percentage 15% 15% 15%

Debt limit 24,784 22,843 22,623

Total net debt applicable to limit - - -

Legal debt margin 24,784$ 22,843$ 22,623$

Total net debt applicable to the limit

as a percentage of debt l imit 0% 0% 0%

Notes: The Government Code of the State of California

provides for a legal debt limit of 15% of gross assessed

secured tax valuation. However, this provision was enacted

when assessed valuation was based upon 25% of market

value. Effective with the 1981-82 fiscal year, each parcel is

now assessed at 100% of market value (as of the most recent

change in ownership for that parcel). The computations

shown above reflect a conversion of the assessed value for

each fiscal year from the current full valuation perspective The City does not have any outstanding general obligation

debt subject to the limit.

City of Fort Bragg, California Legal Debt Margin Information Last Ten Fiscal Years (Fiscal Year-ended June 30) (In Thousands) (In Thousands)

153

2013 2014 2015 2016 2017 2018 2019

579,450$ 585,992$ 590,079$ 607,137$ 626,121$ 646,586$ 671,692$

25% 25% 25% 25% 25% 25% 25%

144,863 146,498 147,520 151,784 156,530 161,646 167,923

15% 15% 15% 15% 15% 15% 15%

21,729 21,975 22,128 22,768 23,480 24,247 25,188

- - - - - - -

21,729$ 21,975$ 22,128$ 22,768$ 23,480$ 24,247$ 25,188$

0% 0% 0% 0% 0% 0% 0%

City of Fort Bragg, California Direct and Overlapping Debt Current Year June 30, 2019 (In Thousands) (In Thousands)

154

2018-19 Assessed Valuation: $703,298,469 Total Debt City’s Share of DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/19 % Applicable (1)Debt 6/30/19 Redwoods Joint Community College District $27,005,000 3.733% $ 1,008,097 Fort Bragg Unified School District 30,762,163 37.843 11,641,325 Mendocino Coast Hospital District 4,389,114 20.589 903,675 City of Fort Bragg 0 100. 0 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $13,553,097 OVERLAPPING GENERAL FUND DEBT: Mendocino County Certificates of Participation $17,130,000 5.945% $1,018,379 Mendocino County Pension Obligation Bonds 50,250,000 5.945 2,987,363 TOTAL OVERLAPPING GENERAL FUND DEBT $4,005,742 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $3,495,000 100. % $3,495,000 DIRECT DEBT $0 TOTAL OVERLAPPING DEBT $21,053,839 COMBINED TOTAL DEBT $21,053,839 (2) (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property

value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2018-19 Assessed Valuation: Direct Debt .............................................................. 0.00% Total Direct and Overlapping Tax and Assessment Debt1.93% Combined Total Debt .................................................... 2.99% Ratios to Redevelopment Successor Agency Incremental Valuation ($210,045,138): Total Overlapping Tax Increment Debt ......................... 1.66% AB:($500)

155


City of Fort Bragg, California Pledged Revenue Coverage For the Last Ten Fiscal Years (Dollars in Thousands) (In Thousands) (In Thousands)

156

Fiscal

Year Less: Net Total

Ended Operating Operating Available Debt

June 30, Revenues Expenses 1 Revenue Principal Interest Service Coverage Ratio

2010 2,058 1,792 266 322 293 615 0.4

2011 2,159 1,632 527 365 245 610 0.9

2012 2,044 1,585 459 360 158 518 0.9

2013 2,420 1,623 797 327 151 478 1.7

2014 2,172 1,953 219 369 171 540 0.4

2015 2,595 1,806 789 493 147 640 1.2

2016 3,085 1,834 1,251 490 132 622 2.0

2017 3,534 1,378 2,156 505 75 580 3.7

2018 2,909 1,592 1,317 390 62 452 2.9

2019 3,077 1,480 1,597 396 53 449 3.6

1 Operating expenses exclude depreciation


Debt Service

Business-type Activities

Water Fund Debt

City of Fort Bragg, California Pledged Revenue Coverage For the Last Ten Fiscal Years (Dollars in Thousands) (In Thousands) (In Thousands)

157

Less: Net Total

Operating Operating Available Debt

Revenues Expenses 1 Revenue Principal Interest Service Coverage Ratio

2,517 2,116 401 35 12 47 8.5

3,152 2,078 1,074 40 21 61 17.6

2,943 2,637 306 40 19 59 5.2

3,263 2,733 530 40 17 57 9.3

2,985 2,633 352 45 17 62 5.7

3,184 2,470 714 45 16 61 11.7

3,322 2,568 754 50 12 62 12.2

4,457 2,189 2,268 50 9 59 38.4

3,495 2,270 1,225 55 6 61 20.1

5,938 2,321 3,617 55 13 68 53.2

Debt Service

Business-type Activities

Sewer Fund Debt

City of Fort Bragg, California Demographic and Economic Statistics For the Last Ten Fiscal Years (Dollars in Thousands) (In Thousands) (In Thousands)

158

Fiscal Year Population (1)

Personal Income

(in thousands)

Per Capita Personal

Income (2) Median Age (3)

Public School

Enrollment

City Unemployment

Rate (%) (4)

2009-10 6,855 144,629 17,513 38.4 1,886 12.7%

2010-11 6,875 - 18,247 40.9 1,885 12.6%

2011-12 7,255 143,775 19,817 40.5 1,904 10.8%

2012-13 7,311 146,997 20,106 37.4 1,917 10.8%

2013-14 7,350 153,410 20,872 36.8 1,870 8.7%

2014-15 7,343 154,002 20,973 38.2 1,873 4.2%

2015-16 7,672 160,798 20,959 38.5 1,934 4.5%

2016-17 7,772 170,733 21,968 36.6 1,891 4.0%

2017-18 7,512 175,523 23,366 40.0 1,920 3.0%

2018-19 7,478 184,300 24,646 39.2 1,884 2.4%

3.) Public School Enrollment is for the .

4.) Unemployment Data are provided by the EDD's Bureau of Labor Statistics Department.


2010-11 and prior, previously published CAFR Report

Source: The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark

( - ) Indicates data unavailable

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.

6,8306,9507,0707,1907,3107,4307,5507,6707,790

Population

2.0%4.0%6.0%8.0%

10.0%12.0%14.0%

Average Unemployment Rate

$16,500

$18,500

$20,500

$22,500

$24,500

Per Capita Personal Income

1,860

1,880

1,900

1,920

1,940

K-12 Public School Enrollment

City of Fort Bragg, California Principal Employers Last Fiscal Years and Seven Years Ago (Dollars in Thousands) (In Thousands) (In Thousands)

159

Business Name

Number of

Employees

Percent of Total

Employment (%)

Number of

Employees

Percent of Total

Employment (%)

Mendocino Coast District Hospital 329 9.68% 350 11.70%

Fort Bragg Unified School District* 231 6.79%

Parents & Friends Inc 167 4.91%

Safeway 131 3.85%

Mendocino Coast Clinics Inc 122 3.59% 114 3.80%

North Coast Brewing CO Inc (1) 121 3.56% 85 2.90%

Mendocino County** 93 2.74%

Anderson Logging Inc 92 2.71% 87 2.90%

Sherwood Oaks Health Ctr 76 2.24% 92 3.10%

Silvers At the Wharf (Anchor Lodge) 62 1.82% 55 1.80%

Caito Fisheries 90 3.00%

Ocean Fresh Seafood Products 90 3.00%

City of Fort Bragg 53 1.80%

Skunk Train 44 1.50%

Total Top Employers 1,424 41.88% 1,060 -

Total City Employment (2) 3,400 -

Results based on direct correspondence with city’s local businesses.

(1) Includes summer and seasonal employees

(2) Total City Labor Force provided by EDD Labor Force Data

*Excludes non bargaining on call subs or sports coaches

**Includes satellite offices of county departments


2018-19 2011-12

City of Fort Bragg, California Full-time and Part-time Employees by Function (Full Time Equivalent) Last Ten Fiscal Years (Fiscal Year-ended June 30) (In Thousands) (In Thousands)

160

Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

General Government

Administrative Services 5.00 4.80 4.80 6.00 6.00 6.00 6.50 6.50 7.00 7.00

Finance 5.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00

Public Safety

Police 23.00 21.00 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00

Community Services

Community Development 4.75 3.80 3.80 3.80 4.30 4.00 4.30 4.50 4.80 4.80

Public works 14.50 12.60 12.60 12.60 13.60 12.60 12.80 12.80 14.00 14.00

Enterprise Funds 8.00 7.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00

Total 60.25 53.20 54.20 55.40 57.90 56.60 57.60 57.80 59.80 59.80


Administrative Services

7.00

12%Finance

4.00 7%

Police22.00 37%

Community Development

4.80

8%

Public works14.00 23%

Enterprise Funds8.00 13%

Full-time and Part-time City Employees by Function (Full Time Equivalent) FY 2019

City of Fort Bragg, California Operating Indicators by Function Last Ten Fiscal Years (Fiscal Year-ended June 30) (In Thousands) (In Thousands)

161

Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Building Permits Issued 204 204 210 125 272 192 141 122 162 194

New Construction 5 6 3 27 2 7 6 4 9 12

Single Family Residential 2 3 2 0 0 0 2 0 5 4

Second Unit 2 1 1 1 1 1 3 4 4 8

Mixed Use, Commercial & Residential 1 0 0 0 0 2 1 0 0 4

Multi-Family Residential 0 0 1 0 0 0 0 2

Low Income Residential 2 0 26 0 4 0 0 0 0

City Clerk

Council/Agency Resolutions Passed 112 93 108 93 87 127 98 122 121 92

Number of Ordinances Passed 3 9 9 2 4 3 5 6 8 9

Number of Contracts Approved 9 13 32 29 31 30 69 74 105 71

Number of PRA Requests Processed 40 28 33 26 35 74 73 79 146 145

Public Safety

Traffic Accidents 116 112 139 163 174 172 221 160 145 147

Traffic Violations - DUI 42 37 33 62 45 26 28 45 49 40

Bookings 501 621 608 744 689 737 668 619 795 625

Moving Cites 550 514 841 1,001 1,614 949 498 344 428 368

Parking Cites 405 374 355 833 484 835 842 941 869

Field Interviews and Information Cases 1,450 2,211 1,301 1,217 1,403 1,936 1,289

Crime Reports 1,150 1,274 1,454 1,610 1,576 1,317 1,501 1,496 1,554 1,262

Fire 1

Total Number of Calls 504 601 632 500 525 617 579 665 626 752

Structure Fires 35 30 27 29 29 21 29 38 10 37

Vehicle Fires 7 9 9 9 17 9 3 16 5 4

Vegetation Fires 33 15 29 25 41 40 31 33 23 40

Misc Fires (Chimney, Debris, Electronically, etc.) 17 24 17 36 18 81 80

Medical Aid 102 186 209 110 142 163 150 199 197 248

Rescue 114 112 129 11 13 10 22 16 11 7

Hazardous Condition/Materials Calls 53 37 46 73 48 41 70 75 58 73

Mutual Aid/Agency Assist 6 3 9 12 18 23 18

Traffic Accidents 88 89 98 133 98 115 100

Services Call 100 161 115 128 117 96 91 80 99 126

Other Calls & Incidents 60 81 68 4 2 113 2 74 4 19

Water

Number of customer accounts billed 33,771 33,521 32,523 33,924 32,300 33,716 33,671 33,873 34,146 33,339

Water annual demand in thousand gallons 223,300 217,600 231,200 225,500 224,500 204,400 189,500 197,600 210,200 208,015

Available supply of water in thousand gallons 2,524 2,442 3,066 2,574 2,490 2,398 20,800 21,300 21,300 22,400

total Customer service calls 1,421 1,531 1,448 1,439 1,254 1,177 1,253 1,253 1,193 1,488

Meter installs/removals/change outs 36 49 40 2 11 14 16 14 24 13

Meter repairs 1 3 2 44 1 8 1 34 5 23

Leak investigations 15 15 16 21 3 6 11 34 29 61

Service profiles 98 131 81 93 52 57 65 31 63 61

Turn on/off 1,244 1,255 1,267 1,248 139 508 669 878 891 1,099

Manual Reads 556 555 565 527 513 453 416 444 126 111

Misc. 26 27 36 33 49 60 75 53 55 68

Wastewater

Customer service calls, wastewater 38 39 37 52 71 41 52 43 33 36

New customer sewer lines installed 2 2 0 2 2 3 1 4 0 2

Sewer mains cleaned/flushed in miles 15 19 19 18 14 15.5 15 17.38 16 18

Sewer mains and laterals repaired in number of jobs 38 39 34 0 8 16 11 12 9 8

Sewer manholes inspected 370 371 373 371 362 363 363 374 374 374

Sewer manholes installed 1 3 1 0 0 0 0 0 0 -

Sewer spill responses 3 4 1 3 7 7 5 1 1 2

2 In some categories historical information is not available

Source: Operating indicators were provided by the various operating departments.

City of Fort Bragg, California Capital Asset Statistics by Function Last Ten Fiscal Years (Fiscal Year-ended June 30) (In Thousands) (In Thousands)

162

Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Police :

Stations 1 1 1 1 1 1 1 1 1 1

Public works

Streets (miles) 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 27.2 27.2

Alleys (miles) 19 19 19 19 19 19 19 19 19 19

Storm drains (miles) 10 10 10 10 10 10 10 10 10 10

Streetlights 725 725 725 725 725 725 725 725 744 744

Sidewalks 40 40 40 40 40 40 40 40 40 40

Water

Water treatment plant 1 1 1 1 1 1 1 1 1 1

Water mains (miles) 30 30 30 30 30 30 30 30 30.5 30.5

Raw water transmission line (miles) 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.85 5.85

Wastewater

Wastewater treatment plant 1 1 1 1 1 1 1 1 1 1

Sanitary sewers (miles) 27 27 27 27 27 27 27 27 27 27

Parks and Facilities

Parks 3 3 3 3 3 4 4 4 5 5

Recreational/Guest Facilities 2 2 3 3 3 3 3 3 3 3

Government Facilities 2 2 2 2 2 2 2 2 2 2

City of fort Bragg

CaliforniaComprehensive

annualfinanCial report -

presentation

fisCal year ended June 30, 2019

independent auditor’s report

Presented by Joe Arch, President/CEO JJACPA, Inc.

City-Wide results

FY 18- 19: Revenue; $22.2M Expense; $18.1M Change in Net Position; $4.1M

Charges for Services, $10,313 ,

46%

Capital Grants,

$765 , 3%

Transient Occupancy Tax,

$3,296 , 15%

Sales & Use Tax, $1,324 ,

6%

Property Taxes,

$2,607 , 12%

Other, $2,640 , 12%

Operating Grants,

$1,276 , 6%

City-wide Revenue; (in thousands)

General Government

, $2,384 , 13%

Public Safety,

$4,338 , 24%

Public Works, $2,979 ,

16%

Community Development,

$1,056 , 6%

Interest& Fiscal Charges, $47 , 0%

Water Enterprise,

$1,920 , 11%Wastewater Enterprise,

$2,674 , 15%

C.V. Starr Center Enterprise,

$2,722 , 15%

City-wide Expense; (in thousands)

City-Wide net position

FY 18-19: Total; $86.2, Net Capital Assets; $79.2M, Restricted; $1.4M, Unrestricted; $5.6M

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19

City-wide Net Position - 10 Years; (In thousands)

Net Investment in Capital Assets Restricted Unrestricted Total Net Position

general fund results

FY 18- 19: Revenue; $9.4M Expenditure; $9.2M Transfers; <$14k>, Change in Fund Balance; $182k

Taxes & Assesments, $6,206 , 66%

Reimbursement, $2,453 , 26%Use Of

Money & Property, $261 , 3%

Other, $317 , 3%

Operating Grants,

$145 , 1%

Transfers In, $84 , 1%

General Fund Revenue; (in thousands)

General Government, $2,511 , 27%

Public Safety,

$3,949 , 43%

Public Works,

$1,765 , 19%Community

Development, $773 , 8%

Other, $186 , 2%

Transfers Out, $98 ,

1%

General Fund Expenditures; (in thousands)

general fund varianCes vs. Budget

REVENUE:•Sales tax $65k, TOT $119k, Property tax $20k

EXPENDITURE:•PD $230k, PW $157k, Administration $15k

Non-departmental $16k, Finance $18k

general fund BalanCe

FY 18-19: Committed; $1.7M Unassigned; $1.5M, Non-spendable; $9k, Total; $3.1M

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19

General Fund Fund Balance- 10 Years; (In thousands)

Committed Unassigned Assigned Non-spendable Total Fund Balance

Water enterprise

FY 18- 19: Revenue; $3.2M, Expense; $1.9M, Net Transfers; $1M, Change in Net Position; $2.3M

Total Net Position; $10M

Other nonoperating , $19 , 0%

Other Operating, $30 , 1%

Interest revenues, $91 , 2%

Net Transfers In,

$1,032 , 25% Charges for

Services, $3,046 ,

72%

Water Enterprise Revenue; (in thousands)


Repairs & Maintenance,

$56 , 3%

Interest expense, $83 , 4%

Utilities, $117 , 6%

Materials & Supplies-

Enterprise, $176 , 9%

Administration, $274 , 14%

Depreciation, $357 , 19%

Personnel Services,

$772 , 40%

Water Enterprise Expense; (in thousands)

WasteWater enterprise

FY 18- 19: Revenue; $6.1M, Expense; $2.6M, Net Transfers; <$3k>, Change in Net Position; $3.4M


Other nonoperating ,

$58 , 1%

Capital Grants, $2,339 ,

39%

Interest revenues, $59 , 1% Charges for

Services, $3,599 ,

59%

Wastewater Enterprise Revenue; (in thousands)


Contractual Services, $144 , 6%



$161 , 7%


Personnel Services, $1,252 ,

52%

Materials & Supplies-

Enterprise, $334 , 14%

Wastewater Enterprise Expense; (in thousands)

C.v. starr Center enterprise

Other operating , $8 , 0%

Property Tax, $249 ,

14%

Sales Tax, $879 , 47%

Interest revenues, $18 , 1%

Charges for Services,

$703 , 38%

C.V. Starr Center Enterprise Revenue; (in thousands)


Contractual Services, $17 , 1%


Insurance, $40 , 1%


$83 , 3%


Personnel Services,

$995 , 37%

Materials & Supplies, $1 , 0%

Administration, $24 , 1%

C.V. Starr Center Enterprise Expense; (in thousands)

FY 18- 19: Revenue; $1.9M, Expense; $2.7M, Change in Net Position; <$965k>


summary•City-wide; Net position continues to grow (Grants)•General Fund; Revenues have flattened out,

expenditures are down but not sustainable. •Water; Continues to generate $1M+ in capital

reserves per year plus grant funding. Net position increasing.

•Wastewater; Continues to generate $1M+ in capital reserves per year plus grant funding. Net position increasing.

•C.V. Starr; Net position continues to decrease. Long term capital needs require full rate study.

on the horizon• Jan. 13th Q1 2020 report• Jan. 13th budget amendment for PD salary

increases (budget will fall back to deficit status)• Jan. 13th budget amendment for Vac Truck and 1

PD vehicle; USDA grant opportunity for significant long term savings in fleet

•March 2020 Mid-year budget review•May 2020 FY 2020/2021 Budget workshop;

headwinds include –PD salary increases and Pension cost increases coupled with flattening revenues

finanCe direCtor; viCtor damianiphone; 961-2825

Questions?

CITY OF FORT BRAGG

COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS

JUNE 30, 2019

7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (510) 217-5930 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325

www.jjacpa.com

November 25, 2019 City Council City of Fort Bragg Fort Bragg, California We have audited the financial statements of City of Fort Bragg (City) as of and for the year ended June 30, 2019 and have issued our report thereon dated November 25, 2019. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 7, 2019, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2018-19. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”).

Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g. infrastructure) as well as industry standards, when applicable (i.e. buildings). We evaluated the key factors and assumptions used to develop the useful lives and determined that it is reasonable in relation to the basic financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies. Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely adjustments identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected adjustments related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified adjustments. In addition, professional standards require us to communicate to you all material, corrected adjustments that were brought to the attention of management as a result of our audit procedures. The following material adjustments were known by management and communicated to us in the form of request for assistance:

To update pension disclosures for GASB 68 management made entries of $408,384 for deferred outflows of resources, $260,963 for the pension expense adjustment, $72,595 for the net pension obligation, and $74,826 for the deferred inflows of resources.

To update other post-employment benefit (OPEB) disclosures for GASB 75 management made entries of $200,345 for deferred outflows of resources, $175,552 for the net pension obligation, $9,319 for the deferred inflows of resources, and $34,112 for OPEB expense

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in the attached letter dated November 25, 2019.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Findings or Issues

In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.

Communication of Internal Control Related Matters

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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 may exist that have not been identified.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours,

]ÉáxÑ{ ]A TÜv{ JOSEPH J ARCH, CPA President/CEO JJACPA, INC.

CITY OF FORT BRAGG, CALIFORNIA

SINGLE AUDIT REPORTS

FOR THE YEAR ENDED JUNE 30, 2019

City of Fort Bragg, California Single Audit Reports For the year ended June 30, 2019 Table of Contents

Page(s) Schedule of Expenditures of Federal Awards ....................................................................................... 1 Notes to Schedule of Expenditures of Federal Awards ......................................................................... 2 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 .................................................................................................. 3-4

Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................ 5-6 Schedule of Findings and Questioned Costs ..................................................................................... 7-8

City of Fort Bragg, California Schedule of Expenditures of Federal Awards For the year ended June 30, 2019

1

Pass-throughFederal Entity

Federal Grantor/Pass-through CFDA Identification Expenditures Expenditures TotalGrantor/Program or Cluster Title Number Number ARRA* Non-ARRA Expenditures

U.S Department of Agriculture

Direct Program:Water and Waste Disposal Systems for Rural Communities 10.760 -$ 4,842,237$ 4,842,237$

Total U.S . Department of Transportation - 4,842,237 4,842,237

U.S. Department of Housing and Urban Development

Pass through programs from:

State of California Department of Housing and Community Development

Community Development Block Grant 14.228 2016-CDBG-11140 - 92,027 92,027 Community Development Block Grant 14.228 2017-CDBG-11140 - 41,340 41,340

Total U.S . Department of Housing andUrban Development - 133,367 133,367

Total Federal Expenditures -$ 4,975,604$ 4,975,604$

* ARRA indicates American Recovery and Reinvestment Act of 2009.

Federal

The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this supplementary information.

City of Fort Bragg, California Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2019

2

1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 2. DESCRIPTION OF MAJOR PROGRAMS Water and Waste Disposal Systems for Rural Communities (CFDA # 10.760) The program provides loans and grant funds for water and waste projects serving the most financially needy communities. Funds may be used for the installation, repair, improvement, or expansion of a rural water facility including distribution lines, well pumping facilities and costs related thereto, and the installation, repair, improvement, or expansion of a rural waste disposal facility including the collection, and treatment of sanitary, storm, and solid wastes. 3. INDIRECT COST ELECTION The City has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.


www.jjacpa.com

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Independent Auditor’s Report

The Honorable City Council City of Fort Bragg Fort Bragg, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fort Bragg, California (City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 25, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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 may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

]]TVcT? \ÇvA November 25, 2019 JJACPA, Inc. Dublin, CA


www.jjacpa.com

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE

Independent Auditor’s Report

The Honorable City Council City of Fort Bragg Fort Bragg, California

Report on Compliance for Each Major Federal Program

We have audited the City of Fort Bragg, California’s (City) compliance with the types of compliance requirements

described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2019. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, is-sued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance re-quire that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019.

Report on Internal Control Over Compliance

Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Fort Bragg, California (City) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated November 25, 2019, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 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 auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

]]TVcT? \ÇvA November 25, 2019 JJACPA, Inc. Dublin, CA

City of Fort Bragg, California Schedule of Findings and Questioned Costs For the year ended June 30, 2019

7

Section I – Summary of Auditor’s Results Financial Statements

Type of auditor’s report issued Unmodified Internal control over financial reporting:

Material weakness(es) identified? No

Significant deficiency(ies) identified? None reported

Is any noncompliance material to financial statements noted? No Federal Awards

Internal control over major programs:

Material weakness(es) identified? No Significant deficiency(ies) identified? None reported

Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No Identification of major federal programs: CFDA Number Name of Federal Program or Cluster 10.760 Water and Waste Disposal Systems for Rural Communities Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes

City of Fort Bragg, California Schedule of Findings and Questioned Costs, Continued For the year ended June 30, 2019

8

Section II – Financial Statement Findings No matters were reported. Section III – Federal Awards Findings No matters were reported. Section IV – Status of Prior Year Audit Findings No matters were reported. Section V – Corrective Action Plan There were neither current year findings nor questioned costs (see Section III above).

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-527


File Type: ResolutionIn Control: City Council

Agenda Number: 8D.

Receive Report on Limited Term Permit and Consider Adoption of City Council Resolution

Approving a Short-term Bridge Loan to Mendocino Coast Hospitality Center for Initial Opening

and Operations of Winter Shelter and Authorizing City Manager to Execute Loan Agreement and

Promissory Note


AGENDA ITEM SUMMARY

AGENDA ITEM NO. 8D



DEPARTMENT: City Manager/CDD

PRESENTED BY: T. Miller/S. Perkins


TITLE:Receive Report on Draft Limited Term Permit and Consider Adoption of City Council Resolution Approving a Short-term Bridge Loan to Mendocino Coast Hospitality Center for Initial Opening and Operations of Winter Shelter and Authorizing City Manager to Execute Loan Agreement and Promissory Note

ISSUE:The Mendocino Coast Hospitality Center (MCHC) applied for a Limited Term Permit to operate a Winter Shelter from December 15, 2019 to April 1, 2020, depending on funding and need. Unlike prior years, the shelter will operate every night and will not be weather dependent as it was in prior years. The Limited Term Permit is processed at the administrative level and is presented here for informational purposes only.

A contract between Mendocino County and MCHC is tentatively scheduled for approval by the County Board of Supervisors on December 10, 2019 in the amount of approximately $66,516. If approved, the funding will support the Winter Shelter for approximately 90 days.In order for the Winter Shelter to open by December 15, MCHC must expend funds in advance of receiving the County’s financial support. MCHC is a nonprofit organization which,like most nonprofits, struggles to support ongoing operations and has very limited cash reserves that can be used to prefund programs. The MCHC Board has requested a short-term bridge loan from the City to provide the cash necessary to set up and operate the Winter Shelter prior to receiving the County funds, which is expected to take 30-45 days.

ANALYSIS:With the exception of being open continuously from December 15, 2019 up to April 1, 2020, or when funding runs out, the Winter Shelter (WS) will operate much as it has the last two years (see Attachment 4 – Draft Limited Term Permit). Local faith-based organizations will take turns hosting the WS for no more than fourteen (14) consecutive days at a time. Guestswill be processed for intake during regular business hours at the MCHC facility at 101 N. Franklin. Eligible guests will check in at the Fort Bragg Food Bank and be transported by van to the hosting shelter between 4:30 and 5:00 PM each afternoon. Guests will be provided an evening meal at the hosting shelter and unlike last year’s shelter, will not participate in the meals provided in the late afternoon at the Hospitality House located at 237 N. McPherson St. The next day, guests will be transferred by van from the shelter location to the MCHC property at 101 N. Franklin no later than 8:00 AM.

Families and children will not be housed at the WS but instead will receive motel or camping vouchers. Intake and eligibility requirements must meet the terms provided for in MCHC’s contract with the County (see Attachment 5, Definition of Services). In an effort to implement the recommendations of the Marbut Report, the County sets forth certain eligibility

requirements and priorities. Mendocino residents are given priority. Individuals or families not established in Mendocino County may only receive one (1) night of services at the WS, unless they meet additional requirements and then they are limited to receive up to four (4) nights of services.

Although the City, County and MCHC have been discussing this year’s Winter Shelter and operations, a contract for funding is not yet in place. It is tentatively scheduled for approval at the County Board of Supervisors’ December 10, 2019 meeting. MCHC must provide the cash up front to get the WS up and running but does not expect to receive reimbursement from the County until sometime in January. The MCHC Board has respectfully asked the City for a short-term bridge loan to help them with the cash flow required to initially set up and operate the WS.

Attached is a proposed Loan Agreement and Promissory Note drafted by the City Attorney.If approved by City Council as drafted, it provides for a loan of up to $25,000, with annualized interest of 3% to be repaid by January 31, 2020 or within a week of MCHC receiving reimbursement, whichever is sooner. The short-term loan is contingent on the County and MCHC executing the Funding Agreement that the Board of Supervisors will review on December 10, 2019.

RECOMMENDED ACTION:Adopt Resolution approving a short-term bridge loan to Mendocino Coast Hospitality Center for initial opening and operating of a Winter Shelter and authorizing the City Manager to execute the same.

ALTERNATIVE ACTION(S):1. Do not approve the Resolution, which will not approve the short-term bridge loan to

MCHC.2. Provide additional direction to staff regarding the short-term bridge loan.

FISCAL IMPACT:The short-term bridge loan will reduce the City’s available General Fund cash by up to $20,000. The City will earn interest at a rate slightly higher than it is currently earning in the Local Agency Investment Fund (LAIF) operated by the California State Treasurer. The LAIF had an average monthly yield in October, 2019 of 2.19%. At 3% interest, the City would earnapproximately $107 if the full $25,000 loan is outstanding from December 10 to January 31.

GREENHOUSE GAS EMISSIONS IMPACT:The loan by itself will not impact greenhouse gas emissions but operation of the shelter will add several local van trips each day from the Food Bank to the shelter facility and then from the shelter facility to the MCHC facility at 101 N. Franklin in the morning. This additional traffic could last ninety (90) days or more.

CONSISTENCY:The current City Council does not have a goal specific to shelters or homelessness but historically the City Council has supported the work of MCHC and the work of the Homelessness Ad Hoc Council Committee.

IMPLEMENTATION/TIMEFRAMES:MCHC anticipates opening the WS on December 15, 2019 and operating it nightly until March 15, 2020, or longer if funding allows.

ATTACHMENTS:1. Resolution2. Proposed Loan Agreement3. Proposed Note 4. Draft Limited Term Permit for Winter Shelter5. Proposed Services for Mendocino County and MCHC funding Agreement

NOTIFICATION:1. Carla Harris Executive Director MCHC2. Homeless, Notify Me subscriber list

- 1 -

RESOLUTION NO. ___-2019

RESOLUTION OF THE FORT BRAGG CITY COUNCIL APPROVING A SHORT-TERM BRIDGE LOAN TO MENDOCINO COAST HOSPITALITY

CENTER FOR INITIAL OPENING AND OPERATIONS OF WINTER SHELTER AND AUTHORIZING THE CITY MANAGER TO EXECUTE LOAN

AGREEMENT AND PROMISSORY NOTE

WHEREAS, the Mendocino Coast Hospitality Center has applied for a Limited Term Permit to operate a Winter Shelter from December 15, 2019 to April 1, 2020, depending on funding and need; and

WHEREAS, Mendocino County Board of Supervisors and the Mendocino Coast Hospitality Center anticipate executing a contract for funding the Winter Shelter from approximately December 15, 2019 to April 1, 2020, dependent on funding and need, in the amount of $66,516; and

WHEREAS, the Mendocino Coast Hospitality Center must expend funds prior to the execution of the contract for funding the Winter Shelter and expend funds in the period before the County will be able to pay the Mendocino Coast Hospitality Center for costs associated directly with operating the Winter Shelter; and

WHEREAS, the Mendocino Coast Hospitality Center is a non-profit organization which provides shelter and other services to homeless individuals in and around Fort Bragg; and

WHEREAS, the Mendocino Coast Hospitality Center does not have sufficient cash reserves to pay these initial costs of operating the Winter Shelter and has requested a short-term bridge loan in an amount not to exceed Twenty-five Thousand dollars ($25,000) from the City of Fort Bragg; and


1. The City Council has sufficient cash balances in its General Fund to loan the Mendocino Coast Hospitality Center up to Twenty-five Thousand dollars ($25,000) for a period of time not to exceed fifty-three (53) days at an interest rate equal to three percent (3%) annualized interest.

2. The operations of the Winter Shelter are vital to the health, safety and welfare of some of the City’s more vulnerable residents and visitors.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fort Bragg does hereby approve a short-term bridge loan for Mendocino Coast Hospitality Center in an amount not to exceed Twenty-five Thousand dollars ($25,000) and authorizes the City Manager to Execute the same.

The above and foregoing Resolution was introduced by Councilmember ________, seconded by Councilmember ________, and passed and adopted at a regular meeting of the City Council of the City of Fort Bragg held on the 9th day of December, 2019, by the following vote:

- 2 -


WILLIAM V. LEEMayor

ATTEST:


1

LOAN AGREEMENT

This Loan Agreement (this “Agreement”) is entered into effective as of ___________ (“Effective Date”) by and between the City of Fort Bragg, a public body, corporate and politic (the "City") and Mendocino Coast Hospitality Center, a California nonprofit mutual benefit corporation (the "Borrower"). City and Borrower are hereinafter collectively referred to as the “Parties.”

WHEREAS, the Borrower is a 501(c)(___) nonprofit corporation organized and established to provide homeless services within the City of Fort Bragg at various locations. (the “Properties”); and

WHEREAS, Borrower receives funding from Mendocino County, but this funding will be delayed causing a short period of time where Borrower will not be able to pay for necessary services to homeless individuals in the City; and

WHEREAS, Borrower has requested a short-term loan of $25,000 from the City in order to fund services currently being offered to homeless individuals in the City to sustain Borrower until such time as funding from the County is received; and

WHEREAS, the City agrees to loan the funds necessary for Borrower to continue to operate its facility at the Properties; and

WHEREAS, the loan proceeds will be disbursed from the City’s General Fund (the “Fund”), andthe use of the loan proceeds pursuant to this Agreement will serve the public purpose of providing shelter and related services to homeless individuals within the City.

NOW THEREFORE, in consideration of their mutual undertakings and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.

Section 1. The Loan and Disbursement of Loan Proceeds.

A. The Loan. Subject to the terms and conditions of this Agreement and for the purposes described herein, City agrees to make a loan to Borrower in the amount of up to Twenty-five Thousand Dollars ($25,000) (the "Loan"). The outstanding principal balance of the Loan shall bear simple interest at the rate of three percent (3%) per annum until paid in full. The Loan shall be evidenced by a promissory note substantially in the form attached hereto as Exhibit A (the "Promissory Note"). The outstanding principal balance of the Loan, including accrued interest, shall be payable in one lump sum on January 31, 2020 or at regular intervals, not more than a week after reimbursement by Mendocino County to the Borrower, whichever occurs first (the “Maturity Date”). Any other waiver by the City of any obligation set forth in this Agreement or in the Promissory Note must be in writing. No waiver shall be implied from any failure by the City to take any action on any breach or default by the Borrower or to pursue any remedy allowed under this Agreement, the Promissory Note or applicable law. Any extension of time granted to the Borrower to perform any obligation under this Note shall not operate as a waiver or release from any of its obligations under this Note.

B. Use of Loan Proceeds. The proceeds of the Loan (the “Loan Proceeds”) shall be used

2

solely and exclusively to provide shelter and related services to homeless individuals within the City as set forth in this Agreement.

C. Disbursement of Proceeds. Upon Borrower’s execution and delivery to the City of this Agreement and the Promissory Note, and final execution of the funding contract between Borrower and Mendocino County to provide emergency winter shelter from approximately November 15, 2019 to March 31, 2020, the City shall disburse the Loan Proceeds on a biweekly basis as requested by Borrower, not to exceed Twenty-five Thousand Dollars ($25,000).

Notwithstanding any other provision of this Agreement, the City shall have no obligation to disburse any portion of the Loan Proceeds following termination of this Agreement by mutual agreement of the Parties.

Section 2. [reserved]

Section 3. Covenants, Representations and Warranties of Borrower.

Borrower covenants, represents and warrants to the City as follows:

A. Organization of the Borrower. Borrower is a duly organized nonprofit _____________, validly existing and in good standing under the laws of the State of California. Borrower has all requisite power and authority in the State of California to be a party to this Loan Agreement and perform its obligations under this Agreement and the Promissory Note.

B. Authorization of the Loan; No Violation. The execution, delivery and performance of this Agreement and the Promissory Note have been duly authorized by Borrower, and this Agreement and the Promissory Note, when duly executed and delivered will constitute the valid and binding obligations of Borrower enforceable in accordance with their respective terms. Borrower’s execution of this Agreement and the Promissory Note and performance thereunder will not result in a breach of or constitute a default under any agreement, indenture or other instrument to which Borrower is a party or by which Borrower may be bound.

C. Hazardous Materials. (1) Borrower agrees not to release, use, manufacture, handle, generate, store, treat, discharge, bury or dispose of any Hazardous Materials on, under, in or about the Property, or transport to or from the Property any Hazardous Materials. Borrower agrees to indemnify and hold the City, its officers, employees and agents, harmless from and against any and all loss, claim, liability, damage, injunctive relief, injuries to person, property or natural resources, cost, expense (including reasonable fees of attorneys, expert witnesses, and other professionals advising or assisting the City), action or cause of action, arising in connection with the actual or alleged release or presence of any Hazardous Materials on, under, in or about the Property, whether foreseeable or unforeseeable, regardless of the source of such release or when such release occurred or such presence is discovered. The foregoing indemnity includes, without limitation, all costs in law or in equity of investigation, assessment, containment, removal, remediation of any kind, and disposal of such Hazardous Materials, all cost of determining whether the Property is in compliance, and causing the Property to be in compliance, with all applicable Hazardous Materials Laws, all costs associated with claims for damages to persons, property,

3

or natural resources and court costs.

(2) The term "Hazardous Materials Law" means all federal, state, and local laws, ordinances and regulations and standards, rules, policies and other governmental requirements and any court judgments applicable to Borrower or to the Property, relating to industrial hygiene, environmental or unsafe conditions, or human health, including, but not limited to, those relating to the generation, manufacture, storage, handling, transportation, disposal, release, emission or discharge of Hazardous Materials. The term "Hazardous Materials" includes petroleum and petroleum products, flammable explosives, radioactive materials (excluding radioactive materials in smoke detectors), polychlorinated biphenyls, lead, asbestos in any form that is or could become friable, hazardous waste, toxic or hazardous substances or other related materials regulated by Hazardous Materials Law in any manner whatsoever. The term shall not, however, apply to those materials commonly used in accordance with all applicable laws in the operations of a mobile home park.

D. Indemnification. Borrower shall indemnify, defend and hold the City, its elected and appointed officials, employees, contractors and agents (collectively “Indemnitees”) harmless from and against any and all demands, claims, suits, costs (including reasonable attorneys’ fees), losses, damage, causes of action, fines, judgments, or liabilities of any kind arising directly or indirectly in any manner in connection with or resulting from (a) any and all activities conducted in connection with the Property, including without limitation, site investigations conducted by or for Borrower, (b) any failure of any representation by Borrower to be correct in all material respects when made, (c) injury or death to persons or damage to property or other loss occurring on the Property or in connection with Borrower’s operations, whether caused by the negligence or any other act or omission of Borrower or any other person or by negligent, faulty, inadequate or defective design, building, construction or maintenance or any other condition or otherwise, (d) any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not, brought or asserted against any Indemnitee which relates to or arises out of the Property, the Loan, the Promissory Note or any transaction contemplated thereby, or the relationship between Borrower and City. Borrower’s obligations under this Section shall survive the making and repayment of the Loan and the expiration or termination of this Agreement. Borrower's indemnity obligations shall not apply to any costs, losses, claims, or liability caused solely by the willful misconduct or gross negligence of the City, its officers, employees or agents.

E. Books and Records; Publicity. The City shall have the right, during business hours and after reasonable notice to Borrower, to inspect and copy Borrower's books and records with respect to the Property and the Loan. Upon City's request, Borrower shall use its best efforts to identify the City in publicity concerning the Property.

F. Litigation. There are no pending or threatened actions or proceedings before any court or administrative agency which may adversely affect the financial condition or operation of Borrower other than those heretofore disclosed by Borrower to City in writing.

Section 4. Default and Remedies.

A. Events of Default. Provided that City has provided written notice to Borrower specifying the nature of such default, the occurrence of any of the following events shall, at the option of the City, constitute an event of default by Borrower under this Agreement, if such default remains uncured 15 days

4

following delivery of notice of monetary default or 30 days following delivery of notice of non-monetary default.

(1) Borrower fails to comply with or fully and timely perform any of Borrower's obligations under this Agreement;

(2) Unless approved in writing by the City and subject to Section 5.1, the Borrower voluntarily or involuntarily sells, transfers, disposes of or further encumbers all or any portion of its interest in the Property;

(3) Any representation or warranty contained in, or made in connection with the execution and delivery of this Agreement, or in any certificate or statement furnished pursuant hereto, shall prove to have been incorrect when made in any material respect;

(4) Borrower defaults in the performance of any other term, covenant, or agreement contained in this Agreement or the Promissory Note;

(5) Pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law relating to insolvency or relief of debtors ("Bankruptcy Law"): (A) Borrower (i) commences a voluntary case or proceeding, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) applies for or consents to the appointment of a trustee, receiver, assignee, liquidator or similar official, (iv) makes an assignment for the benefit of its creditors, or (v) admits in writing its inability to pay its debts as they become due; or (B) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (a) is for relief against Borrower in an involuntary case, (b) appoints a trustee, receiver, assignee, liquidator or similar official for Borrower or substantially all of Borrower’s assets, (c) orders the liquidation of Borrower, or (d) issues or levies a judgment, writ, warrant of attachment or similar process against the Property or any other property of Borrower, and in each case the order or decree is not released, vacated, dismissed or fully bonded within 60 days after its issuance; and

(6) Any final judgment for the payment of money that is not fully covered by liability insurance is rendered against Borrower and is not discharged within thirty (30) days, or if the execution of such judgment is stayed pending appeal but is affirmed on such appeal, such judgment is not discharged within thirty (30) days following such affirmation.

B. Remedies of the City upon Default. Upon the occurrence of an event of default by the Borrower in the performance of this Agreement or the Promissory Note, the City shall have the following rights, in addition to the City's other rights and remedies provided by law:

(1) The City may declare the entire outstanding principal balance of the Loan, including interest accrued, immediately due and payable;

(2) The City shall have full power to exercise any and all rights and powers granted to the City pursuant to the Promissory Note and this Agreement in the event of a default; and

(3) The City may terminate this Agreement.

Each of the remedies provided herein is cumulative and not exclusive of, and shall not prejudice any other

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remedy provided herein or in the Promissory Note. The City may exercise from time to time any rights and remedies available to it under applicable law, in addition to, and not in lieu of, any rights and remedies expressly granted in this Agreement or in any other instrument or notice, demand or legal process of any kind.

C. No Waiver. No failure or delay by City at any time to require performance by Borrower of any provision of this Agreement or to exercise any right, power or remedy hereunder shall be construed as a waiver of any other provision or any succeeding breach of the same or any other provision hereof. The failure of City to insist upon the strict performance of any provision of this Agreement, or to exercise any election contained herein shall not be construed as a waiver or relinquishment for the future of such provision or election nor shall it constitute a waiver of the City’s right to assert any future remedy provided for in this Agreement or the Promissory Note on the basis of the same or a similar breach of a covenant or warranty or other event of default.

Section 5. General Provisions.

A. Assignment, Transfer, and Encumbrance. The Loan shall not be assigned nor shall Borrower transfer or encumber its interest in the Property without the prior written consent of the City.

B. Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:

(1) personal delivery, in which case notice is effective upon delivery;

(2) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or

(3) facsimile transmission, in which case notice shall be deemed delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first-class or certified mail or by overnight delivery, or (b) a transmission report is generated reflecting the accurate transmission thereof. Any notice given by facsimile shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient’s time or on a nonbusiness day.

CITY:

City of Fort Bragg416 N. Franklin StreetFort Bragg, CA 95437

BORROWER:

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C. Amendments. This Agreement may be modified only by a written instrument signed by both Parties.

D. Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.

E. Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the City is required or permitted under this Agreement, such action shall be in writing, and such action may be given, made or taken by the City Manager or by any person who shall have been designated by the City Manager, without further approval by the City Council.

F. Non-Liability of City and City Officials, Employees and Agents. No member, official, employee or agent of the City shall be personally liable to Borrower, or any successor in interest, in the event of any default or breach by the City, or for any amount of money which may become due to Borrower or its successor or for any obligation of City under this Agreement.

G. No Third Party Beneficiaries. There shall be no third party beneficiaries to this Agreement.

H. Headings; Construction. The headings of the sections and paragraphs of this Agreement have been inserted for convenience only and shall not be used to construe this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. Time is of the essence in the performance of this Agreement.

I. Governing Law. This Agreement and the Promissory Note shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.

J. Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties are materially altered or abridged by such invalidation, voiding or unenforceability.

K. Entire Agreement; Exhibits. This Agreement, together with the Promissory Note, contains the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. Exhibits A and B attached hereto are incorporated herein by this reference.

L. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

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[BORROWER]

By: ________________________[name][title]

CITY OF FORT BRAGG

By: _______________________

City Manager

Approved as to form:

___________________________City Attorney

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Exhibit A

FORM OF PROMISSORY NOTE

Exhibit “A”

PROMISSORY NOTE

$25,000.00 December ___, 2019

Fort Bragg, California

FOR VALUE RECEIVED, Mendocino Coast Hospitality Center, Incorporated, a _________ nonprofit corporation (the “Borrower”), whose address is 101 N. Franklin St., Fort Bragg, California 95437, hereby promises to pay to the order of the City Fort Bragg, a public body corporate and politic (the “City”), whose address is 416 N. Franklin Street, Fort Bragg California, 95437, the principal amount equal to Twenty-five Thousand Dollars ($25,000), together with interest thereon, as set forth below.

1. BORROWER’S OBLIGATION. This promissory note (this “Note”) evidences the Borrower’s obligation to pay the City the principal amount of Twenty-five Thousand Dollars ($25,000) (“Loan Proceeds”) for the funds loaned to the Borrower by the City to pay for costs associated with providing shelter and related homeless services to individuals within the City.

2. INTEREST. Beginning on the first day of the first month after the execution of that certain Loan Agreement between the City and the Borrower of even date herewith and continuing until the Note is repaid in full, the Note shall bear interest at the rate of three percent (3%), compounded annually on the principal amount outstanding, including accrued unpaid interest, if any.

3. AMOUNT AND TIME OF PAYMENT. The principal of this Note and all accrued interest thereon shall be due and payable on January 31, 2020 or at regular intervals, not more than a week after reimbursement by Mendocino County to the Borrower, whichever occurs first.

4. PLACE AND MANNER OF PAYMENT. All amounts due and payable under this Note are payable at the office of the City at the address set forth above, or at such other place as the City may designate to the Borrower in writing from time to time, in any coin or currency of the United States that on the date of payment thereof shall be legal tender for the payment of public and private debts.

5. APPLICATION OF PAYMENTS. The payments made by the Borrower shall be applied first to pay outstanding interest due, and then to reduce the principal amount of the Note.

6. NO OFFSET. Borrower hereby waives any rights of offset it now has or may hereafter have against the City, its successors and assigns, and agrees to make the payments called for herein in accordance with the terms of this Note.

7. WAIVERS. Presentment, notice of dishonor, and protest are waived by all makers, sureties, guarantors, and endorsers of this Note.

8. NOTICES. Except as may be otherwise specifically provided herein, any approval, notice, direction, consent, request, or other action by the City shall be in writing and may be communicated to the Borrower at the address set forth above in this Note, or at such other places as the Borrower shall designate in writing, from time to time, for the receipt of communications from the City.

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9. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-in-interest, transferees, and assigns of the Borrower and the City.

10. GOVERNING LAW. This Note shall be interpreted under and governed by the laws of the State of California, except for those provisions relating to the choice of law and those provisions preempted by federal law.

11. SEVERABILITY. Every provision of this Note is intended to be severable. If any provision of this Note shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provision shall not in any way be affected or impaired.

12. TIME. Time is of the essence in this Note.

13. ATTORNEYS’ FEES AND COSTS. In the event any legal action is commenced to interpret or to enforce the terms of this Note, the prevailing party in any such action shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action.

14. WAIVER OF REPAYMENT OBLIGATION. Except as provided in Section 7 above, any other waiver by the City of any obligation in this Note must be in writing. No waiver shall be implied from any failure by the City to take any action on any breach or default by the Borrower or to pursue any remedy allowed under this Note or applicable law. Any extension of time granted to the Borrower to perform any obligation under this Note shall not operate as a waiver or release from any of its obligations under this Note.

15. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Note must be in writing, and shall be made only if executed by both the Borrower and the City.

Borrower:

By:[NAME]

By:[NAME]

CITY OF FORT BRAGG COMMUNITY DEVELOPMENT DEPARTMENT 416 North Franklin Street Fort Bragg, CA 95437 Tel: (707) 961-2827 Fax: (707) 961-2802 www.city.fortbragg.com

Hearing/decision date(s) December 10, 2019 City appeal period ended Prior-to-issuance conditions met

LIMITED TERM PERMIT ACTION NOTIFICATION

This document provides notification of the decision as indicated below. If you have any questions, please contact the Community Development Department at City Hall. APPLICATION NO.: Limited Term Permit 33-19 (LTP 33-19)

PROPERTY OWNER: Multiple, see list below AGENT/APPLICANT: Mendocino Coast Hospitality Center REQUEST: Limited Term Permit to authorize temporary Emergency Weather

Shelters (EWS) at five faith-based organizations in the City, with staging at either 101 N. Franklin Street (Hospitality Center) or 910 N. Franklin Street (Food Bank).

LOCATION AND ASSESSOR’S PARCEL NUMBER: Fort Bragg First Presbyterian Church

367 S. Sanderson Way Fort Bragg 008-332-10

Trinity Lutheran Church 620 E. Redwood Avenue Fort Bragg 008-221-01 and -02 St. Michaels Episcopal Church 210 E. Fir Street Fort Bragg 008-082-06 Grace Community Church 1450 E. Oak Street Fort Bragg 020-510-07 Coast Christian Center 1004 E. Chestnut Street Fort Bragg 018-281-01

Hospitality Center 101 N. Franklin Street Fort Bragg 008-162-15

Food Bank 910 N. Franklin

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Fort Bragg 008-060-02

DATE OF ACTION: December 10, 2019 ACTION BY: XX Community Development Director ACTION TAKEN: XX Approved (See attached Findings and Conditions) EFFECTIVE DATE OF ACTION: December 11, 2019 LOCAL APPEAL PROCESS AND FEE: Decisions of the Community Development Director shall be final unless appealed to the Planning Commission in writing within 10 days of the decision date with a filing fee of $300 to be filed with the Community Development Department. This project is: XX Not appealable to the Coastal Commission.

Appealable to the Coastal Commission pursuant to Chapter 17.92.040 of the City of Fort Bragg Coastal Land Use and Development Code

NOTIFICATION MAILED TO: Mendocino Coast Hospitality Center, P.O. Box 2168, Fort Bragg, CA

95437 DATE OF MAILING: December 10, 2019 CONDITIONS OF APPROVAL: See attached findings and conditions Community Development Department Statement: I hereby certify that all conditions which must be met prior to issuance of this permit have been met and that this permit is deemed by the City of Fort Bragg Community Development Department to be a valid permit subject to all conditions of approval. _____________________________ _________________ Community Development Director Date Statement of Responsible Party: I am responsible for assuring the temporary event is carried out in compliance with all applicable regulatory requirements, and I hereby certify that I have reviewed the conditions of approval and the project will be carried out in conformance with the specified conditions as attached. _____________________________ _________________ Responsible Party Date

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Notice: This permit must be signed and returned to the Community Development Department. Attachment: Findings and Conditions FINDINGS AND CONDITIONS:

LTP 33-19 has been approved based on the findings and conditions cited below:

FINDINGS

1. The proposed temporary use as described in the application and supplemental materials, as modified by any conditions of approval, is in conformity with the City of Fort Bragg’s Inland Land Use and Development Code (ILUDC) and will not adversely affect the environment;

2. As conditioned, the proposed temporary use is consistent with the purposes of the zoning districts in which the sites are located;

3. The proposed temporary use is a temporary use for a limited term and is compatible with existing uses on the property;

4. For the purposes of the environmental determination, this proposed temporary use has been determined to be exempt from further environmental review pursuant to the CEQA Guidelines, Section 15304(e), minor temporary use of land; and

5. The proposed location of the temporary use and conditions under which it may operate will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.

SPECIAL CONDITIONS

The following Special Conditions will be required as part of the Limited Term Permit:

1. This permit is valid for a limited term only. The temporary operation of the Winter Shelter (WS) may only occur between December 15, 2019 and April 1, 2020.

2. The WS may open daily. Daily hours of the winter shelter operation will be from 5:00p.m. - 8:00am the following morning.

3. The WS program shall operate in the following manner: i. Housing homeless individuals at the WS designated site, or provide motel or

camping vouchers as appropriate. ii. Provide motel vouchers as necessary to shelter families with children under 16,

the elderly or severely disabled individuals who would be prioritized for shelter, but for whom the facility is not appropriate: a. Link these families and individuals to additional services, care and case-

management within forty-eight hours of initial contact iii. Maximize use of all existing shelter beds, as practicable.

4. Families and children will not be housed at the WS (see 3(ii) above). 5. Mendocino Coast Hospitality Center (MCHC) will comply with the Program Eligibility and

engage with sheltered individuals and families as outlined in MCHC’s Coast Winter Shelter contract with Mendocino County by:

i. Providing case management support, tracking and reporting individual’s progress towards stabilization and permanent housing, etc.

ii. Develop a case plan to include goals of safe and stable permanent housing. iii. Limiting services to individuals choosing not to actively participate in case-

management to a maximum of two bed nights per season, dependent on availability.

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iv. Coordinate with other agencies by collecting and inputting Homeless Management Information System (HMIS) by completing in-take forms including HMIS required components and enter into the HMIS within first 24 hours of contact with an individual; and complete the Vulnerability Index – Service Prioritization Decision Assistance Tool (VI-SPDAT)

6. MCHC staff shall input the above data for each winter shelter guests during the intake process at MCHC between 8:30am – 12:00pm or 1:00pm – 3:00pm Monday through Friday and develop a daily “Shelter Eligibility List.”

7. Winter Shelter individuals on the “Shelter Eligibility List” are required to check in at the Food Bank at 910 N. Franklin Street between the hours of 4:30pm-5:00pm.

a. A restroom or portable toilet and trash receptacle shall be accessible at the Food Bank facility during 4:30pm-5:00pm

b. The WS operation at the Food Bank shall be managed by paid employees of MCHC at all times and will be on-site while this site is in use.

c. Trash and debris will be removed from the Food Bank site and public right of way in front of the Food Bank each day.

d. WS clients shall park their vehicles on the street; parking in off-street private parking lots shall be monitored and prohibited by the WS Administrator.

8. Guests shall arrive at the WS, via van, no earlier than 5:00pm and shall vacate the shelter facility no later than 8:00am the following morning.

9. Dinner will be provided to shelter guests between 5:30pm and 6:00pm at the WS each evening.

10. WS guests shall be transported back to MCHC no later than 8:00am each morning. 11. MCHC paid and trained employees shall be on-site for security and supervision during

WS operating hours. At least one employee shall be present if there are fewer than twelve (12) guests, two employees shall be present if there are twelve (12) or more guests.

12. WS guests must remain in the shelter overnight; guests who leave the shelter shall not be permitted to return to the shelter that night.

13. The WS shall not be operated at a single location for more than fourteen (14) consecutive days. The shelter shall be limited to the locations listed in this Limited Term Permit. Additional locations may be requested for consideration by the Community Development Director subject to a permit amendment.

14. MCHC and WS staff shall work with the F.B. Police Department and deny individuals banned from MCHC Ban List from the WS.

15. Loitering by WS guests on City sidewalks or alleyways will disqualify guests from staying at the WS.

16. The WS manager shall provide a contact phone number to surrounding residents, merchants and business owners and shall endeavor to resolve issues related to shelter guests loitering and parking on private property.

17. MCHC shall maintain and update a ban list that is shared with the Police Department. MCHC staff shall ban people from the WS who engage in any of the following behaviors: loitering in the neighborhood prior to or after winter shelter hours, substance abuse at the winter shelter, and/or violence or verbally abusive language prior to or during the operation of the shelter.

18. All Client pets shall be kenneled and abide by the pet rules and regulations during the shelter operating hours.

19. Only one guest at a time shall be allowed outside of the shelter for the purposes of relieving pets, smoking, etc. Any guest outside of the shelter shall remain on the property where the shelter is being hosted.

STANDARD CONDITIONS

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1. This action shall become final on the 11th day following the decision unless an appeal to the Planning Commission is filed pursuant to Chapter 18.92.030;

2. The use and occupancy of the premises shall be established and maintained in conformance with the requirements of this permit and all applicable provisions of the ILUDC;

3. The application, along with supplemental exhibits and related material, shall be considered elements of this permit, and compliance therewith is mandatory, unless an amendment has been approved by the City;

4. This permit shall be subject to the securing of all necessary permits for the proposed development from City, County, State and Federal agencies having jurisdiction. All plans submitted with required permit applications shall be consistent with this approval;

5. This permit shall be subject to revocation or modification upon a finding of any one or more of the following:

(a) That such permit was obtained or extended by fraud. (b) That one or more of the conditions upon which such permit was granted have

been violated. (c) That the use for which the permit was granted is so conducted as to be

detrimental to the public health, welfare or safety or as to be a nuisance. (d) A final judgment of a court of competent jurisdiction has declared one or more

conditions to be void or ineffective, or has enjoined or otherwise prohibited the enforcement or operation of one or more conditions; and

6. This permit is issued without a legal determination having been made upon the number, size or shape of parcels encompassed within the permit described boundaries. Should, at any time, a legal determination be made that the number, size or shape of parcels within the permit described boundaries are different than that which is legally required by this permit, this permit shall become null and void.

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-537


File Type: OrdinanceIn Control: City Council

Agenda Number: 8E.

Receive Report and Consider Introducing by Title Only and Waiving the First Reading of

Ordinance No. 956-2019 Repealing and Replacing Chapter 15.04 (Construction Codes -

Adopted by Reference) and Chapter 15.05 (California Fire Code) of Title 15 (Buildings and

Construction) of the Fort Bragg Municipal Code


AGENDA ITEM SUMMARY

AGENDA ITEM NO. 8E



DEPARTMENT: City Manager

PRESENTED BY: Tabatha Miller


TITLE:Receive Report and Consider Introducing by Title Only and Waiving the First Reading of Ordinance No. 956-2019 Repealing and Replacing Chapter 15.04(Construction Codes – Adopted by Reference) and Chapter 15.05 (California Fire Code) of Title 15 (Buildings and Construction) of the Fort Bragg Municipal Code

ISSUE:The State of California updates the California Building Standards Code (Building Code) every three years. The Building Code provides a uniform standard for the construction and maintenance of buildings, electric systems, plumbing systems, mechanical systems and fire safety systems. The California Building Standards Commission adopted the 2019 edition of the Building Code on July 1, 2019. The new edition becomes effective at the local level on January 1, 2020 and replaces the 2016 edition.

Local jurisdictions may amend the Building Code, under certain circumstances. Sections 17958.5 and 17958.7 of the California Health and Safety Code allow amendments when an express finding and determination is made that the amendments are reasonably necessary because of local climatic, geological, or topographical conditions in the local jurisdiction.Additionally, amendments that clarify local administration of the Building Code and that do not change the Building Standards may be enacted without the required findings and determinations.

The proposed amendments to the Building Code are consistent with those proposed by the Mendocino County Chief Building Official. The City contracts with the County to provide building inspection services.

ANALYSIS:Government Code Section 50022 et seq. provides a procedure for the adoption of codes by reference. Unlike the typical Ordinance adoption process, after first reading of the title of the adopting ordinance and the title of the code to be adopted and the title of the secondary codes therein adopted by reference, the City Council sets the time and date of the public hearing. That hearing must be advertised at least fourteen (14) days prior to consideration and at least fifteen (15) days must lapse between the first and second reading or waiver of the full reading. After the hearing, and at that same meeting the City Council may amend, adopt or reject the adoption by reference ordinance. If introduced this evening, a public hearing can be set for January 13, 2020 and adoption considered immediately after that by the Council.

State law permits jurisdictions to amend the codes in certain circumstances. The proposed Ordinance provides mostly administrative amendments relating to plan check, issuance of

permits, fees, time limits for application and expiration of permits. The administrative amendments track with those proposed by the Mendocino County Chief Building Official, so that administration of those permits is consistent with the County. Life and safety amendments relate to signs, sidewalks and curbs, and defined fire zones and carry forward amendments from the prior City and/or County Code.

The proposed Ordinance adopts the Building Code with amendments and other codes related to the construction and maintenance of buildings. These include:

A. CALIFORNIA ADMINISTRATIVE CODE, 2019 Edition, Part 1, as published by the International Code Council.

B. CALIFORNIA BUILDING CODE, 2019 Edition, Part 2, Volumes I and II, together with Appendix C (Agricultural Buildings); Appendix G (Flood Resistant Construction); Appendix H (Signs); and Appendix I (Patio Covers).

C. CALIFORNIA RESIDENTIAL CODE, 2019 Edition, Part 2.5, together with Appendix H (Patio Covers); Appendix J (Existing Building and Structures); Appendix K (Sound Transmission); Appendix R (Light Straw-Clay Construction); Appendix S (Strawbale Construction); and Appendix V (Swimming Pool Safety Act).

D. CALIFORNIA ELECTRICAL CODE, 2019 Edition, Part 3, together withAnnex H (Administration and Enforcement).

E. CALIFORNIA MECHANICAL CODE, 2019 Edition, Part 4, as published by the International Association of Plumbing and Mechanical Officials.

F. CALIFORNIA PLUMBING CODE, 2019 Edition, Part 5, together withAppendix A (Recommended Rules for Sizing the Water Supply System); Appendix B (Explanatory Notes on Combination Waste and Vent Systems); Appendix D (Sizing Storm Water Drainage Systems); Appendix I (Installation Standard); Appendix J (Combination of Indoor and Outdoor Combustion and Ventilation Opening Design).

G. CALIFORNIA ENERGY CODE, 2019 Edition, Part 6.H. CALIFORNIA HISTORICAL BUILDING CODE, 2019 Edition, Part 8.I. CALIFORNIA EXISTING BUILDING CODE, 2019 Edition, Part 10.J. CALIFORNIA GREEN BUILDING STANDARDS CODE, 2019 Edition,

Part 11, as published by International Code Council.K. CALIFORNIA REFERENCED STANDARDS CODE, 2019 Edition, Part

12, as published by the International Code Council.

RECOMMENDED ACTION:Introduce by title only and waive the first reading of Ordinance No. 956-2019 and direct staff to schedule a public hearing for January 13, 2020, for the purpose of providing second reading and adopting the ordinance.

ALTERNATIVE ACTION(S):1. Provide staff alternative direction on the text of the proposed change to the City

Code.2. Do not introduce the Ordinance.3. The Building Code is effective January 1, 2020, whether the City Council adopts the

codes by reference or not.

FISCAL IMPACT:Adoption of the 2019 Building Code will not directly impact the City’s budget. However, on average the California Energy Commission estimates that the cost to construct a new home will increase by $9,500 but will save $19,000 in energy and maintenance costs.

GREENHOUSE GAS EMISSIONS IMPACT:In 2008 the State started working on a net zero emissions standard for houses by 2020 and for non-residential buildings by 2030. To further that goal, some of the state mandated changes include:

All new residential projects of three or less stories must have Photovoltaic panels (solar panels) as required by 2019 Title 24, Part 6, Energy Code.

Windows must be more energy efficient – U factor went from .32 to .30, Solar Heat Gain Coefficient (SHGC) from .25 to .23.

Added insulation and quality installation inspections for better building envelope performance.

According to the California Energy Commission, a single family home built with the 2019 energy efficiency standards will use about 7% less energy and when you figure in the rooftop solar generation, that figure is 53% less energy than the 2016 standards. Nonresidential buildings will use about 30% less due primarily to lighting upgrades.

CONSISTENCY:N/A

IMPLEMENTATION/TIMEFRAMES:Assuming the Ordinance is introduced on December 9, 2019 and adopted on January 13, 2020, it will become effective February 12, 2020.

ATTACHMENTS:1. Proposed Ordinance

NOTIFICATION:N/A

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AN ORDINANCE REPEALING AND REPLACING CHAPTER 15.04 (CONSTRUCTION CODES – ADOPTED BY REFERENCE) AND CHAPTER 15.05 (CALIFORNIA FIRE CODE) OF TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE FORT BRAGG MUNICIPAL CODE;ADOPTING AND INCORPORATING THE CALIFORNIA ADMINISTRATIVE CODE, CALIFORNIA BUILDING CODE, CALIFORNIA RESIDENTIAL CODE, CALIFORNIA ELECTRICAL CODE, CALIFORNIA MECHANICAL CODE, CALIFORNIA PLUMBING CODE, CALIFORNIA ENERGY CODE, CALIFORNIA HISTORICAL BUILDING CODE, CALIFORNIA EXISTING BUILDING CODE, CALIFORNIA GREEN BUILDING STANDARDS CODE, CALIFORNIA REFERENCED STANDARDS CODE AND CALIFORNIA FIRE CODE; ADOPTING LOCAL FINDINGS; AND MAKING OTHER TECHNICAL AND ADMINISTRATIVE REVISIONS TO TITLE 15


WHEREAS, the 2019 California Building Standards Code has been amended and adopted by the California Building Standards Commission in order to establish uniform standards for the construction and maintenance of buildings, electrical systems, plumbing systems, mechanical systems and fire and life safety systems; and

WHEREAS, the City of Fort Bragg (City) has adopted the 2016 Editions of the California Building Standards Code, California Plumbing Code, California Mechanical Code, California Uniform Housing Code, California Electric Code, California Administrative Code, and the California Energy Code; and

WHEREAS, Government Code § 50022 et seq. and California Health & Safety Code § 17922 authorizes cities to enact ordinances adopting any code by reference; and

WHEREAS, in accordance with Government Code § 50022.3, a properly noticed public hearing concerning adoption of the Codes referenced above has been held prior to adoption of this Ordinance; and

WHEREAS, California Health & Safety Code § 17958.5 authorizes cities and counties to modify the California Building Standards Codes by adopting more restrictive standards and

modifications if such standards and modifications are accompanied by express findings that they are reasonably necessary because of local climatic, geologic and topographic conditions; and

WHEREAS, cities and counties may adopt amendments to clarify local administration of the 2019 California Building Standards Code, so long as those modifications do not change the building standards without required findings; and

WHEREAS, prior to the effective date of this Ordinance, the City Clerk shall file a copy of the Ordinance, with the California Building Standards Commission.

NOW, THEREFORE, the City Council ordains as follows:


1. The City of Fort Bragg’s Municipal Code Chapters 15.04 and 15.05 have undergone a review by staff to identify inconsistencies and inaccuracies as well as consistency with the 2019 California Building Standards Code.

2. The Code should represent the current state of all legislative actions taken by the City Council.

3. The Code should reflect current legislative actions of the City Council and the means by which the City is being operated and must be accurate and consistent to aid staff, residents and various other persons in making determinations on Code related issues.

4. Pursuant to §§ 17958.5 and 17958.7 of the California Health and Safety Code, the City Council makes the express finding that each of the modifications and changes to building standards set forth herein is needed and is reasonably necessary because of local climatic, geological and topographical conditions. Fort Bragg is a rural coastal city located between approximately 39 and 40 degrees latitude. It has a moderate climate. It is subject to severe rainstorms or windstorms that have and could result in localized flooding and flood hazards. The City has potentially active seismic hazards in close proximity. Its location creates some degree of isolation and some difficulty in the transportation of building materials and in obtaining skilled and expert assistance for the construction or rehabilitation of rural dwellings.

5. There is no possibility that the adoption of this ordinance will have a significant impact on the environment, and therefore, the adoption of this ordinance is exempt from the California Environmental Quality Act (“CEQA”), pursuant to Section 15061(b)(3) of the California Code of Regulations (CEQA Guidelines) by the general rule that CEQA only applies to “projects” that may have a significant effect on the environment. The proposed Ordinance would amend the Municipal Code related to building standards necessary to protect health and safety. In this case, there is no possibility that the proposed Ordinance would have a significant impact on the environment.

Section 2.

TITLE 15 – BUILDINGS AND CONSTRUCTION

Chapter 15.04 entitled CONSTRUCTION CODES – ADOPTED BY REFERENCE is herebyrepealed in its entirety and replaced with the following:

CHAPTER 15.04: CONSTRUCTION CODES – ADOPTED BY REFERENCE

Section15.04.010 Purpose15.04.020 Incorporation of reference material15.04.030 Definitions15.04.040 Modifications to the California Building Code15.04.050 Modifications to California Residential Code15.04.060 Modifications to the California Electrical Code15.04.070 Modifications to the California Mechanical Code15.04.080 Modifications to the California Plumbing Code15.04.090 Curbs and Sidewalks15.04.100 Construction and Applicability15.04.110 Construction Permits and Inspection Fees 15.04.120 Fire zone defined15.04.130 Fees for permits and inspection15.04.140 Penal provisions

§ 15.04.010 PURPOSE.

The purpose of this chapter is to provide minimum standards to safeguard life, health, property and public welfare by regulating and controlling building, plumbing, heating and electrical installations of all buildings and structures within the City.

§ 15.04.020 INCORPORATION OF REFERENCE MATERIAL.

Subject to applicable sections of this title, the following primary and secondary codes are hereby adopted and incorporated into the Fort Bragg City Code by reference and as having the full legaleffect as if their respective contents were set forth verbatim herein:

A. CALIFORNIA ADMINISTRATIVE CODE, 2019 Edition, Part 1, as published by the International Code Council.

B. CALIFORNIA BUILDING CODE, 2019 Edition, Part 2, Volumes I and II, together with Appendix C (Agricultural Buildings); Appendix G (Flood Resistant Construction); Appendix H (Signs); and Appendix I (Patio Covers)as published by the International Code Conference subject to the changes and modifications set forth in Section 15.04.040 and other provisions of thisTitle.

C. CALIFORNIA RESIDENTIAL CODE, 2019 Edition, Part 2.5, together with Appendix H (Patio Covers); Appendix J (Existing Building and Structures); Appendix K (Sound Transmission); Appendix R (Light Straw-Clay Construction); Appendix S (Strawbale Construction); and Appendix V (Swimming Pool Safety Act), as published by the International Code Council, subject to the changes and modifications set forth in Section 15.04.050 andother provisions of this Title.

D. CALIFORNIA ELECTRICAL CODE, 2019 Edition, Part 3, together with Annex

H (Administration and Enforcement) as published by the National Fire Protection Association subject to changes and modifications set forth in Section 15.04.060 and other provisionsof this Title.

E. CALIFORNIA MECHANICAL CODE, 2019 Edition, Part 4, as published by the International Association of Plumbing and Mechanical Officials subject to the changes and modifications set forth in Section 15.04.070 and other provisions of this Title.

F. CALIFORNIA PLUMBING CODE, 2019 Edition, Part 5, together withAppendix A (Recommended Rules for Sizing the Water Supply System); Appendix B (Explanatory Notes on Combination Waste and Vent Systems); Appendix D (Sizing Storm Water Drainage Systems); Appendix I (Installation Standard); Appendix J (Combination of Indoor and Outdoor Combustion and Ventilation Opening Design), as published by the International Association of Plumbing and Mechanical Officials, subject to the changes and modifications set forth in Section 15.04.080 and other provisionsof this Title.

G. CALIFORNIA ENERGY CODE, 2019 Edition, Part 6, as published by the International Code Council.

H. CALIFORNIA HISTORICAL BUILDING CODE, 2019 Edition, Part 8, as published by the International Code Council.

I. CALIFORNIA EXISTING BUILDING CODE, 2019 Edition, Part 10, as published by the International Code Council.

J. CALIFORNIA GREEN BUILDING STANDARDS CODE, 2019 Edition, Part 11, as published by International Code Council.

K. CALIFORNIA REFERENCED STANDARDS CODE, 2019 Edition, Part 12, as published by the International Code Council.

§ 15.04.030 DEFINITIONS.

Whenever any of the following names or terms are used in any of the compilations adopted by reference by this chapter such names or terms shall have the following meanings:

BUILDING OFFICIAL refers to the Community Development Director of the City or his or her contracted official or designee;

ENFORCEMENT AGENCY shall refer to the Building Inspection Department of the City or designated department or entity.

§ 15.04.040 MODIFICATIONS TO THE CALIFORNIA BUILDING CODE.

The California Building Code, 2019 Edition, as adopted in § 15.04.020 (B) is adopted with the following changes and modifications:

Section 105.3.2 shall be amended to read as follows:

Time limitation of application. An application for a permit for any proposed workshall be deemed to have been abandoned one (1) year after the date of filing, unless such application has been pursued in good faith as determined by the Building Official. The applicant must request an extension in writing, and demonstrate justifiable cause. The Building Official may grant one or more extensions in time, for periods of not more than 180 days each. Each extensionrequires payment of a fee established by the City Council.

Section 105.5 shall be amended to read as follows:

Expiration: Every permit issued shall become invalid if the work on the site authorized by such permit is not commenced within one (1) year (365 calendardays) after the issuance of said permit and an inspection resulting in an approval of the work has not been obtained; or if after the first inspection approval the workdoes not receive an inspection resulting in an approval every year (365 calendar days). However, this provision will not apply if the permit was issued to legalize previously unpermitted construction. In those cases, the timelines for the permit toremain valid will correspond with any timelines the Department has set for compliance. Extensions may be granted as indicated in this section. The submittal of revisions to issued permits, if pursued in good faith as determined by the Building Official, shall extend the building permit 180 calendar days from the submittal of the revisions.

For permits which have not expired, the Building Official is authorized to grant one or more extensions of time for periods not more than 180 days each. The extension shall be requested in writing, and will only be granted upon demonstration of justifiable cause, as determined by the Building Official.

Permits may be renewed if they have been expired for less than five (5) years,and/or have a vested interest, as determined by the Building Official. In order torenew action on an expired permit, the permit holder shall pay a reinstatement fee established by the City Council.

Section 109.6 shall be amended to read as follows:

Refunds.

1. The Building Official may authorize the refunding of any fee paid hereunder which was erroneously paid or collected.

2. The Building Official may authorize the refunding of not more than 80 percent of the permit fee paid when no work had been done under a permit issued in accordance with this code provided that the request for refund is made by written

application by the original permittee not later than one year after the date of issuance of the permit.

3. The Building Official may authorize the refunding of not more than 80 percent of the plan review fee paid when an applicationfor a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done.

4. The Building Official shall not authorize the refunding of the planreview fee paid except upon written application filed by the original permittee no later than one year after the date of feepayment.

Appendix H: Signs: Section H101.1 shall be amended to include the following as a second paragraph:

Notwithstanding any other provision of this appendix, all external lighting forsigns shall be designed to be shielded or downcast in order to minimize the illumination of the nighttime sky.

Appendix H: Signs: Section H101.2 shall be amended to read as follows:

Signs exempt from permits. The following signs are exempt from the requirements to obtain a permit before erection:

1. Non-illuminated signs painted on exterior surface of existing permitted or legal nonconforming buildings or structures.

2. Temporary signs announcing the sale or rent of property.

3. Signs erected by transportation authorities.

4. Projecting signs not exceeding 2.5 square feet (0.23 m 2).

5. The changing of moveable parts of an approved sign that is designed for such changes, or the repainting or repositioning of display matter shall not be deemed an alteration.

6. Temporary signs on grade that are no higher than 7 feet in height above grade and no more than 32 square feet in size.

Exemption from the permit requirements of this Section shall not be deemedto grant authorization for any work done in any manner in violation of the provisions of Titles 17 or 18 of the Fort Bragg Municipal Code, or any other laws or ordinances of this jurisdiction.


Wind load. Signs shall be designed and constructed to withstand wind pressure as provided for in Chapter 16. Exception: The Building Official may waive the engineering design requirements for signs if he/she finds that the signs will not create a hazard to private or public property due to the type, size, location or placement of the sign.


Seismic load. Signs designed to withstand wind pressures shall be considered capable of withstanding earthquake loads, except as provided for in Chapter 16. Exception: The Building Official may waive the engineeringdesign requirements for signs if he/she finds that the signs will not create a hazard to private or public property due to the type, size, location or placement of the sign.

§ 15.04.050 MODIFICATIONS TO THE CALIFORNIA RESIDENTIAL CODE.

The California Residential Code, 2019 Edition as adopted in Section 15.04.020 (C) of this Chapter, is adopted with the following changes and modifications.

Section R105.3.2 shall be amended to read as follows:

Time limitation of application. A permit application for any proposed work shall be deemed to have been abandoned one (1) year after the date of filing, unless such application has been pursued in good faith as determined by the Building Official. The applicant must request an extension in writing and demonstrate justifiablecause. The Building Official may grant one or more extensions in time, for periodsof not more than 180 days each. Each extension requires payment of a fee established by the City Council.

Section R105.5 shall be amended to read as follows:

Expiration: Every permit issued shall become invalid if the work on the site authorized by such permit is not commenced within one (1) year (365 calendardays) after the issuance of said permit and an inspection resulting in an approval of the work has not been obtained; or if after the first inspection approval the workdoes not receive an inspection resulting in an approval every year (365 calendar days). However, this provision will not apply if the permit was issued to legalize previously unpermitted construction. In those cases, the timelines for the permit toremain valid will correspond with any timelines the Department has set for compliance. Extensions may be granted as indicated in this section. The submittal of revisions to issued permits, if pursued in good faith as determined by the Building Official, shall extend the building permit 180 calendar days from the submittal of the revisions.

For permits which have not expired, the Building Official is authorized to grant one or more extensions of time, for periods not more than 180 days each. The

extension shall be requested in writing, and will only be granted upon demonstration of justifiable cause, as determined by the Building Official.


Section R108.5 shall be amended to read as follows:

Refunds.


2. The Building Official may authorize the refunding of not more than 80 percent of the permit fee paid when no work had been done under a permit issued in accordance with this code provided that the request for refund is made by written application by the original permittee not later than one year after the date of issuance of the permit.

3. The Building Official may authorize the refunding of not more than 80 percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done.

4. The Building Official shall not authorize the refunding of the plan review fee paid except upon written application filed by the original permittee no later than one year after the date of fee payment.

§ 15.04.060 MODIFICATIONS TO THE CALIFORNIA ELECTRICAL CODE.

The California Electrical Code, 2019 Edition, as adopted in Section 15.04.020 (D) of this Chapter, is adopted with the following changes and modifications.

Annex H, Section 80.15 Electrical Board is deleted.

Annex H, Section 80.19(E) shall be amended to read as follows:

(E) Fees and Fee Refunds.

(1) Any political subdivision that has been provided for electrical inspection in accordance with the provisions of Article 80 may establish fees that shall be paid by the applicant for a permit before the permit is issued.

(2) The Building Official may authorize the refunding of any fee paid hereunder which was erroneously paid or collected.

(3) The Building Official may authorize the refunding of not more than 80 percent of the permit fee paid when no work had been done under a permit issued in accordance with this code provided that the request for refund is made by written application by the original permittee not later than one year after the date of issuance of thepermit.

(4) The Building Official may authorize the refunding of not more than 80 percent of the plan review fee paid when an application for apermit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done.

(5) The Building Official shall not authorize the refunding of the planreview fee paid except upon written application filed by the original permittee no later than one year after the date of fee payment.

Annex H, Section 80.19(H) shall be amended to include the following as a new paragraph (4):

(4) Time limitation of application. A permit application for any proposed work shall be deemed to have been abandoned one (1) year after the date offiling, unless such application has been pursued in good faith as determined by the Building Official. The applicant must request an extension in writing, and demonstrate justifiable cause. The Building Official may grant one or more extensions in time, for periods of not more than 180 days each. Each extension requires payment of a fee established by the City Council.

Annex H, Section 80.19(H)(7) shall be amended to include the following new paragraph (5):

(5) Expiration: Every permit issued shall become invalid if the work on the siteauthorized by such permit is not commenced within one (1) year (365 calendar days) after the issuance of said permit and an inspection resulting in an approval of the work has not been obtained; or if after the first inspection approval the work does not receive an inspection resulting in an approval every year (365 calendar days). However, this provision will not apply if the permit was issued to legalize previously unpermittedconstruction. In those cases, the timelines for the permit to remain valid will correspond with any timelines the Department has set for compliance. Extensions may be granted as indicated in this section. The submittal of revisions to issued permits, if pursued in good faith as determined by the Building Official, shall extend the building permit 180 calendar days from the submittal of the revisions.

For permits which have not expired, the Building Official is authorized to grant one or more extensions of time, for periods not more than 180 days each. The extension shall be requested in writing, and will only be granted

upon demonstration of justifiable cause, as determined by the Building Official.

Permits may be renewed if they have been expired for less than five (5) years, and/or have a vested interest, as determined by the Building Official. In order to renew action on an expired permit, the permit holder shall pay a reinstatement fee established by the City Council.

Annex H, Section 80.23, Notices of Violations, Penalties: Subsection (B)(3) isdeleted.

Annex H, Section 80.27 Inspector Qualifications is deleted.

§ 15.04.070 MODIFICATIONS TO THE CALIFORNIA MECHANICAL CODE.

The California Mechanical Code, 2019 Edition, as adopted in Section 15.04.020 (E) of this Chapter, is adopted with the following changes and modifications.


Section 104.3.3 Time Limitation of Application. A permit application for any proposed work shall be deemed to have been abandoned one (1) year after the date of filing, unless such application has been pursued in good faith as determined by the Building Official. The applicant must request an extension in writing, and demonstrate justifiable cause. The Building Official may grant one or more extensions in any time, for periods of not more than 180 calendar days each. Each extension required payment of a fee as established by the City Council.


Expiration: Every permit issued shall become invalid if the work on the site authorized by such permit is not commenced within one (1) year (365 calendardays) after the issuance of said permit and an inspection resulting in an approval of the work has not been obtained; or if after the first inspectionapproval the work does not receive an inspection resulting in an approval every year (365 calendar days). However, this provision will not apply if the permit was issued to legalize previously unpermitted construction. In those cases, thetimelines for the permit to remain valid will correspond with any timelines the Department has set for compliance. Extensions may be granted as indicated in this section. The submittal of revisions to issued permits, if pursued in good faith as determined by the Building Official, shall extend the building permit 180 calendar days from the submittal of the revisions.

For permits which have not expired, the Building Official is authorized to grant one or more extensions of time, for periods not more than 180 days each. The extension shall be requested in writing, and will only be granted upon demonstration of justifiable cause, as determined by the Building Official.

Permits may be renewed if they have been expired for less than five (5) years,and/or have a vested interest, as determined by the Building Official.

In order to renew action on an expired permit, the permit holder shall pay a reinstatement fee established by the City Council.

Expiration of Plan Review. A permit application for any proposed work shall be deemed to have been abandoned one (1) year after the date of filing, unless such application has been pursued in good faith as determined by the Building Official. The applicant must request an extension in writing, and demonstrate justifiable cause. The Building Official may grant one or more extensions intime, for periods of not more than 180 days each. Each extension requires payment of a fee established by the City Council.

Section 104.5, Subsection 104.5.3 Fee Refunds shall be amended to read as follows:

Fee Refunds.





§ 15.04.080 MODIFICATIONS TO THE CALIFORNIA PLUMBING CODE.

The California Plumbing Code, 2019 Edition, as adopted in Section 15.04.020 (F) of this Chapter, is adopted with the following changes and modifications:


Expiration: Every permit issued shall become invalid if the work on the site authorized by such permit is not commenced within one (1) year (365 calendardays) after the issuance of said permit and an inspection resulting in an approvalof the work has not been obtained; or if after the first inspection approval

the work does not receive an inspection resulting in an approval every year (365 calendar days). However, this provision will not apply if the permit was issued to legalize previously unpermitted construction. In those cases, the timelines for thepermit to remain valid will correspond with any timelines the Department has set for compliance. Extensions may be granted as indicated in this section. The submittal of revisions to issued permits, if pursued in good faith as determined by the Building Official, shall extend the building permit 180 calendar days from the submittal of the revisions.

For permits which have not expired, the Building Official is authorized to grant one or more extensions of time, for periods not more than 180 days each. The extension shall be requested in writing, and will only be granted upon demonstration of justifiable cause, as determined by the Building Official.


Expiration of Plan Review. A permit application for any proposed work shall be deemed to have been abandoned one (1) year after the date of filing, unless such application has been pursued in good faith as determined by the Building Official. The applicant must request an extension in writing, and demonstrate justifiable cause. The Building Official may grant one or more extensions in time,for periods of not more than 180 days each. Each extension requires payment of a fee established by the City Council.


Fee Refunds.






Outlets with Hose Attachments. Potable water outlets with hose attachments, other than water heater drains, boiler drains, and clothes washer connections,shall be protected by a nonremovable hose bibb-type backflow preventer, anonremovable hose bibb-type vacuum breaker, or by an atmospheric vacuum breaker installed not less than 6 inches (152 mm) above the highest point of usage located on the discharge side of the last valve. In climates wherefreezing temperatures occur, a listed self-draining frost-proof hose bibb with an integral backflow preventer or vacuum breaker shall be used. One exterior hose bibb supplied by potable water shall be installed on each structure containing a Group R, Division 3 or Division 1 Occupancy.

§ 15.04.090 CURBS AND SIDEWALKS.

A. Curbs and sidewalks shall be required and constructed along the frontage of any public street, upon any lot, parcel or piece of ground upon which any new construction in excess of 250 square feet of floor space is being built; or upon which any alteration or improvements are being made the cost of which exceeds 50% of the value of the existing structure prior to the construction of said alterations or improvements.

B. The construction of the sidewalk and curb shall be in conformance with the California Building Code referred to in § 15.04.020 and in conformance with the standards set forth in Chapter 12.04.

C. Curb cuts are to be utilized such that road or parking lot runoff drains to a landscaped feature.

§ 15.04.100 CONSTRUCTION AND APPLICABILITY.

The regulations and provisions contained in the body of this title shall prevail over any inconsistent provision contained in any primary or secondary code adopted hereby; provided, however, that in the case of inconsistent regulations, no regulation shall prevail which is less stringent than the regulations established by the State of California.

§ 15.04.110 CONSTRUCTION PERMITS AND INSPECTION FEES.

Except as otherwise exempted by the California Building Code and/or other City ordinances, no person, firm, or corporation shall erect, construct, enlarge, alter, repair, move, improve, occupy, remove, convert, or demolish any building or structure in the area of the City or cause the same to be done without first obtaining a separate building permit for each such building or structure as required by this title. Permits shall be issued and fees collected by the Building Official or his or her designee. The schedule of fees collected are set by resolution by the City Council as may be amended from time to time.

§ 15.04.120 FIRE ZONE DEFINED.

For the purpose of this chapter the entire City is Fire Zone Three.

§ 15.04.130 FEES FOR PERMITS AND INSPECTION.

Except as otherwise exempted by the California Building Code or City ordinance, no person, firm or corporation shall erect, construct, enlarge, alter, repair, move, improve, occupy, remove, convert or demolish any building or structure, or install, alter or repair any plumbing, heating or electrical items, without first obtaining a permit or combination of any such permits for each such building or structure. Any person filing applications for permits shall, at the time of filing an application therefore, pay to the Building Department the fee set forth by the City as the fee schedule is amended and adopted from time to time. A copy of the latest fee schedule in effect is on file with the City Clerk.

§ 15.04.140 PENAL PROVISIONS.

A. The Building Official of the City or the Acting Building Inspector as designated by the City Manager shall have the authority to issue citations for violations of the following chapters of this code:

1. Chapter 15.04 (Construction Codes – Adopted by Reference);

2. Chapter 15.08 (Building and Fire Department Permits);

3. Chapter 15.12 (House Numbering);

4. Title 17 (Chapters 17.10 through 17.98);

5. Title 18 (Chapters 18.10 through 18.98).

B. The persons designated in subsection (A) of this section (hereinafter referred to as Building Official) shall have the power to issue citations within the City pursuant to those sections of this code set forth in subsection (A) of this section. The Building Official is authorized by the ordinance codified in this section to arrest persons, without a warrant, whenever the Building Official has reasonable cause to believe that the person to be arrested has committed a misdemeanor in his or her presence which is a violation of state statute or City ordinance which the Building Official has a duty to enforce.

C. In any case in which a person is arrested pursuant to subsection (A) or (B) of this section, and the person arrested does not demand to be taken before a magistrate, the Building Official making the arrest shall prepare a written notice to appear and release the person on his or her promise to appear, as prescribed by Chapter 5C (commencing with Section 853.6) of the California State Penal Code. The provisions of such chapter (5C of the Penal Code) shall thereafter apply with reference to any proceeding based upon the issuance of a written notice to appear pursuant to this authority.

D. Violations of Chapters 15.04, 15.08, 15.12, Title 17, and Title 18 are declared to be infractions, and upon conviction thereof are punishable as provided in Chapter 1.12.

Section 3.

Chapter 15.05 entitled CALIFORNIA FIRE CODE is hereby repealed in its entirety and replaced with the following:

CHAPTER 15.05: CALIFORNIA FIRE CODE

Section15.05.010 Edition adopted15.05.020 Application of chapter15.05.030 Appeals

§ 15.05.010 EDITION ADOPTED.

Subject to applicable sections of this title, the following primary and secondary codes are hereby adopted and incorporated into the Fort Bragg City Code by reference and as having the full legaleffect as if their respective contents were set forth verbatim herein:

A. The California Fire Code, California Code of Regulations, Title 24, Part 9, 2019Edition, and its appendices, subject to amendments, changes or modifications as set forth in this chapter, or otherwise in the Fort Bragg Municipal Code. This chapter shall be known as the “Fort Bragg Fire Code” and shall be referred to in this chapter as “the code.”

B. Where no applicable standards or requirements are set forth in the above-mentioned code, or contained within other laws, codes, regulations or ordinances adopted by the City, compliance with applicable standards of the National Fire Protection Association (NFPA) or other nationally recognized fire safety standards as are approved shall be deemed as prima facie evidence of compliance with the intent of this chapter.

C. A copy of the code referenced above, in its latest form, is on file in the office of the Fire Chief.

§ 15.05.020 APPLICATION OF CHAPTER.

This chapter shall apply to all buildings, structures, areas, and occupancies within the City of Fort Bragg. Pursuant to Cal. Health and Safety Code §§ 13145 and 13146, the Fire Chief, or his or her authorized representative, shall enforce the provisions of this chapter and all other building standards and regulations relating to fire and panic safety that have been formally adopted by the State Fire Marshal for the prevention of fire and for the protection of life and property against fire or panic.

§ 15.05.030 APPEALS.

Whenever the Fire Chief or his or her authorized representative refuses to grant a permit applied for, or when it is claimed that certain provisions of the International Fire Code, the California Fire Code and/or Fort Bragg Municipal Code do not apply, the applicant may appeal the decisions to the Fire Appeals Board no later than 15 days of the refusal or claim. The Fire Appeals Board shall be appointed by the Fort Bragg Fire Protection Authority.

Section 4. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council of the City of Fort Bragg hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.


The foregoing Ordinance was introduced by Councilmember _________at a regular meeting of the City Council of the City of Fort Bragg held on December 9, 2019, and adopted at a regular meeting of the City of Fort Bragg held on January 13, 2020, by the following vote:

AYES:NOES:ABSENT:ABSTAIN:RECUSE:

___________________________WILLIAM V. LEEMayor

ATTEST:____________________________June Lemos, CMCCity Clerk

PUBLISH: December 12, 2019 and January 23, 2020 (by summary).EFFECTIVE DATE: February 12, 2020.

Text File



Phone: (707) 961-2823

Fax: (707) 961-2802

File Number: 19-539



Agenda Number: 8F.

Receive Report and Consider Adoption of City Council Resolution Adopting Legislative Findings

Supporting Amendments and Changes to the California State Building Standards Code as

Contained in the Fort Bragg International Fire Code and California Fire Code, Chapter 15.05 of

the Fort Bragg Municipal Code; and Consider Introducing by Title Only and Waiving the First

Reading of Ordinance No. 957-2019 Repealing and Replacing Chapter 15.06 (Automatic Fire

Sprinkler and Alarm Systems) of Title 15 (Buildings and Construction) of the Fort Bragg Municipal

Code


AGENDA ITEM SUMMARY

AGENDA ITEM NO. 8F



DEPARTMENT: City Manager

PRESENTED BY: Tabatha Miller


TITLE:Receive Report and Consider Adoption of City Council Resolution Adopting Legislative Findings Supporting Amendments and Changes to the California State Building Standards Code as Contained in the Fort Bragg International Fire Code and California Fire Code, Chapter 15.05 of the Fort Bragg Municipal Code; and Consider Introducing by Title Only and Waiving the First Reading of Ordinance No. 957-2019 Repealing and Replacing Chapter 15.06 (Automatic Fire Sprinkler and Alarm Systems) of Title 15 (Buildings and Construction) of the Fort Bragg Municipal Code

ISSUE:On September 9, 2019, the City Council adopted Resolution 4197-2019 which set forth the findings that allowed the Council to depart from the California Fire Code, California Code of Regulations, Title 24, Part 9, 2016 Edition, as adopted by reference in the City’s Municipal Code as Chapter 15.05 (California Fire Code) and introduced Ordinance No. 951-2019, which amended the requirements for automatic Fire Sprinkler and Alarm Systems in the City of Fort Bragg.

The State of California updates the California Building Standards Code (Building Code) every three years. The California Building Standards Commission adopted the 2019 edition of the Building Code on July 1, 2019. This includes the California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition. The new edition becomes effective at the local level on January 1, 2020 and replaces the 2016 edition.

Local jurisdictions may amend the Building Code, under certain circumstances. Sections 17958.5, 17958.7 and 13143.5 of the California Health and Safety Code allow amendments when an express finding and determination is made that the amendments are reasonably necessary because of local climatic, geological, or topographical conditions in the local jurisdiction. Every three years when the Building Code is updated a local jurisdiction must readopt any local amendments that it desires to continue to apply to the Building Code.

The proposed Resolution and Ordinance maintain the updates to the Sprinkler Ordinance adopted by City Council on September 23, 2019 and effective October 23, 2019, with theexception of reference to the 2019 Edition of the California Fire Code instead of the 2016 Edition.

ANALYSIS:The issue of fire suppression is important for the City of Fort Bragg and the Fort Bragg Fire Department. The Fort Bragg Fire Department is a volunteer organization whose members risk their lives to fight fires and as a result the Fire Department has consistently pushed to reduce risk both to their volunteers and to our community. Fire suppression and prevention

is extremely important, as a volunteer department response time to a fire may be delayed, as volunteers commute from work, family and personal activities to the site of a fire.

The Central Business District is especially vulnerable to fire as these structures are generally older, constructed from wood and positioned very close together. The use and design of a commercial structure also plays a role in how vulnerable the building is to fire and the risk of life and financial loss.

The City of Fort Bragg first adopted an ordinance regulating fire sprinklers in 1985, which was later amended in 1997, 1999, 2003, 2007, 2014 and 2019. The purpose of the Ordinance is to ensure that new construction (now a State requirement) and significant remodels require the installation of automatic fire sprinklers.

Proposed OrdinanceWith each new edition of the Building Code, a local government must satisfy all the requirements of state law applying to local Building Code amendments. This means that the City must readopt the amendments to the California Fire Code that provide for the more stringent requirements for Automatic Fire Sprinkler and Alarm Systems. The proposed Ordinance readopts the Fire Sprinkler requirements approved by City Council in September.The only modification is reference to the 2019 edition of the Fire Code instead of the 2016 edition.

Proposed ResolutionThe City’s fire sprinkler and alarm system requirements deviate from the California Fire Code as adopted by reference in Chapter 15.05 of the City’s Municipal Code. In order for a jurisdiction to depart from the California Fire Code, the amendments or changes must be more restrictive and reasonably necessary because of local climatic, geologic and/or topographic conditions (California Health and Safety Code § 17958.7). The governing body of a city or county must make express findings as to each amendment for need, prior to adopting the amendments or changes. To clearly establish that those findings occurred prior to adopting the ordinance, the attached Resolution and Exhibit A set forth the findings and justifications for each amendment to the California Fire Code regarding fire sprinkler and fire alarm systems. The justifications and amendments must also be filed with the California Building Standards Commission to be valid.

RECOMMENDED ACTION:1. Adopt a resolution adopting legislative findings supporting amendments and changes to

the California State Building Standards Code as contained in the Fort Bragg International Fire Code and California Fire Code, Chapter 15.05 of the Fort Bragg Municipal Code.

2. Introduce by title only and waive the first reading of Ordinance No. 957-2019, repealing and replacing Chapter 15.06 (Automatic Fire Sprinkler and Alarm Systems.

ALTERNATIVE ACTION(S):1. Provide staff alternative direction on the text of the proposed Resolution or Ordinance.2. Do not adopt the Resolution or Ordinance and retain only the requirements of the

California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition.

FISCAL IMPACT:The revisions to the sprinkler requirements should have a nominal impact on the City’s financial state. The changes may reduce the number of commercial remodels in which automatic sprinkler systems are required but any reduction in building permit fees will be offset by a reduction in staff time reviewing, processing and approving the building permit and application.

GREENHOUSE GAS EMISSIONS IMPACT:Adoption of the Resolution by itself does not impact greenhouse gas emissions.

CONSISTENCY:The changes in the sprinkler requirements are consistent with the City Council Priority:

Jobs/IndustryGoal 1 – Become more business and customer service friendlyGoal 3 – Foster and help sustain local businesses

IMPLEMENTATION/TIMEFRAMES:The Resolution will be effective the same date as the corresponding Ordinance. Assuming the Ordinance is introduced on December 9, 2019 and adopted on January 13, 2020, it will become effective February 12, 2020.

ATTACHMENTS:1. Proposed Resolution2. Exhibit A3. Proposed Ordinance

NOTIFICATION:N/A

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RESOLUTION NO. ____-2019

RESOLUTION OF THE FORT BRAGG CITY COUNCILADOPTING LEGISLATIVE FINDINGS SUPPORTING AMENDMENTS AND

CHANGES TO THE CALIFORNIA STATE BUILDING STANDARDS CODE AS CONTAINED IN CHAPTER 15.05 (THE CALIFORNIA FIRE CODE) OF THE

FORT BRAGG MUNICIPAL CODE

WHEREAS, the 2019 California Building Standards Code has been amended and adopted by the California Building Standards Commission; and

WHEREAS, the California Fire Code, which is Part 9 of the California Building Standards Code, is part of the triennial amendment and adoption by the California Building Standards Commission; and

WHEREAS, the City of Fort Bragg (“City”) wishes to adopt fire code regulations in accordance with law and to use the most updated regulations for fire protection within the City; and

WHEREAS, Government Code § 50022 et seq. authorizes cities to enact ordinances adopting any code by reference; and

WHEREAS, the City will adopt the California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition on January 13, 2020, as set forth in Chapter 15.05 of the Fort Bragg Municipal Code (California Fire Code) after conducting a public hearing; and

WHEREAS, because of the City’s unique climatic, geologic, and topographic conditions, the City desires to make amendments and additions to the building and fire code regulations, as set forth in Ordinance 957-2019; and

WHEREAS, pursuant to California Health and Safety Code § 17958,13143.5, and 18941.5 the City Council of the City of Fort Bragg determined that a departure from the California Fire Code, Part 9 of the California Building Standards Code, 2019 Edition, is reasonably necessary because of local climatic, geologic and/or topographic conditions.


1. Modifications and changes to the California Fire Code, as set forth in Chapter 15.05 of the Fort Bragg Municipal Code, are required in order to provide specific and greater protections to the public health, safety and welfare than are afforded by the California Building Standards Code due to local climatic, geological, and topographical conditions. The legislative findings for such modifications and changes are made pursuant to California Health and Safety Code § 17958.7 as set forth in Exhibit A to this Resolution and by this reference incorporated herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Fort Bragg does hereby resolve that this Resolution shall become effective on the same date as Ordinance No. 957-2019, which amends the California Fire Code, California Code of Regulations, Title 24,

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Part 9, 2019 Edition, as adopted in Chapter 15.05 of the Fort Bragg Municipal Code (California Fire Code). The City Clerk is hereby authorized and directed to transmit a certified copy of this Resolution to the California Building Standards Commission of the State of California.

The above and foregoing Resolution was introduced by Councilmember _____________, seconded by Councilmember ____________, and passed and adopted at a regular meeting of the City Council of the City of Fort Bragg held on the 9th day ofDecember, 2019, by the following vote:


WILLIAM V. LEEMayor

ATTEST:


EXHIBIT ACITY OF FORT BRAGG

ANALYSIS OF AMENDMENTS TO THE CALIFORNIA FIRE CODE 2019 EDITION

§ 15.06.010 PURPOSE.This amendment sets forth the purpose of the changes to the California Building Standards Code as applicable to the California Fire Code. The only change from the prior chapter is the reference from the California Fire Code 2019 Edition instead of the California Fire Code 2016Edition.

(Justification: Topographical, Geologic and Climatic – See justification A, B and C)

§ 15.06.020 DEFINITIONS IN GENERAL.This amendment defines terms for the Automatic Fire Sprinkler System Requirements. The only change from the prior chapter is the reference from the California Fire Code 2019 Edition instead of the California Fire Code 2016 Edition.


§ 15.06.030 AUTOMATIC FIRE SPRINKLER SYSTEMS — REQUIRED.This amendment sets the requirement for Automatic Fire Sprinkler Systems in circumstances more restrictive than the California Fire Code 2019 Edition. There is no change from the prior chapter.


§ 15.06.050 EXEMPTIONS AND WAIVERS.This amendment sets the exceptions for Automatic Fire Sprinkler Systems required by § 15.06.030. There is no change from the prior chapter.


§ 15.06.060 ANNUAL INSPECTION AND MAINTENANCEThis amendment provides for annual inspections and maintenance. There is no change from the prior chapter.


§ 15.06.080 FIRE ALARM SYSTEMS DEFINED AND REQUIRED.This amendment defines the requirements for Fire Alarm System per NFPA 72. There is no change from the prior chapter.


§ 15.06.090 VIOLATIONS.This amendment provides for remedies and penalties for failure to comply with the requirements of the chapter. There is no change from the prior chapter.


JUSTIFICATION

A. Topographical. The Fort Bragg Fire Protection Authority District is an all-volunteer district that covers seventy-five square miles with elevations from zero to one thousand feet above sea level. The City of Fort Bragg includes many narrow and some dead-end roads causing maneuverability restrictions for fire equipment. Surrounding fire districts are all volunteer and the request for mutual aid requires as long as 30 minutes for the first engine to respond to the scene of a fire. The permanent population in the District is dramatically increased by tourism in the summer months causing an increased burden on fire department personnel and equipment. Heavily traveled State Highway One runs the length of the City and is the only continuous North/South route along the coast.

The City’s Central Business District (CBD) is a historical district containing wooden structures, many of which are more than 100 years old and generally two stories high in very close proximity. Because the Fire Protection District is voluntary, and may be delayed as fire fighters commute from work or home to respond to a fire, the risk that a fire would spread from building to building in the CBD and have a substantial impact on the City’s downtown businesses is increased.

B. Geologic. Fort Bragg, located on the northern California coast, has warm summer days and very wet winters. The City is located in a rural setting with rugged coastline forming its western boundary and rugged mountainous areas forming its eastern boundaries. The City has potentially active seismic hazards in close proximity.

The geological conditions of the City and surrounding rural community isolates the City and in the event of an emergency, including fires, could limit or even cut the City off from assistance from other jurisdictions.

C. Climatic. Fort Bragg has climatic conditions which are unique in character. The City is subject to year-round coastal winds including storm conditions. Winter storms with gale-force winds often cause trees to fall onto roadways used for access by emergency fire equipment and personnel. Average yearly rainfall for the district is 37 inches which occurs from October to April and results in lush vegetation growth. During summer months, the morning fog also spurs vegetation growth. Natural vegetation creates hazardous fuel conditions that cause grassland and brush land fires each year. Afternoon winds can move a fire quickly in any part of the City, particularly during times of high temperatures and low humidity. The City has suffered from drought conditions, which reduces available water for firefighting.

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AN ORDINANCE REPEALING AND REPLACING CHAPTER 15.06 (AUTOMATIC FIRE SPRINKLER AND ALARM SYSTEMS) OF TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE FORT BRAGG MUNICIPAL CODE


WHEREAS, the 2019 California Building Standards Code has been amended and adopted by the California Building Standards Commission; and

WHEREAS, the California Fire Code, which is Part 9 of the California Building Standards Code, was part of the triennial amendment and adoption by the California Building Standards Commission; and

WHEREAS, Government Code § 50022 et seq. authorizes cities to enact ordinances adopting any code by reference; and

WHEREAS, because of the City’s unique climatic, geologic, and topographic conditions, the City made amendments and additions to the California Fire Code, California Code of Regulations, Title 24, Part 9, 201 Edition; and

WHEREAS, the City of Fort Bragg (“City”) has determined that Chapter 15.06 (Automatic Fire Sprinkler and Alarm Systems) of the Fort Bragg Municipal Code (“Code”), as currently written reflects the modifications most beneficial to the health, safety and welfare of the City and the City Council desires the same modifications to the California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition; and

WHEREAS, pursuant to California Health and Safety Code sections 18941.5, 17958, and 13143.5 the City Council of the City of Fort Bragg hereby finds that the amendments adopted herein are reasonably necessary because of local climatic, geologic and topographic conditions; and

WHEREAS, in accordance with Health and Safety Code Section 17958.7, the City Council hereby concludes that the findings as set forth in Resolution No. XXXX-2019 and adopted on December 9, 2019 by the City Council are applicable to the modifications described in this Ordinance; and

WHEREAS, prior to the effective date of this Ordinance, the City Clerk shall file a copy of the Ordinance, including the findings as set forth in Resolution No. XXXX-2019, with the California Building Standards Commission.

NOW, THEREFORE, the City Council ordains as follows:


1. The Code should represent the current state of all legislative actions taken by the City Council.

2. Chapter 15.06 is used by City staff to determine when fire sprinklers and alarm systems are required as part of any project that requires a building permit.

3. The Code should reflect current legislative actions of the City Council and the means by which

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the City is being operated and must be accurate and consistent to aid staff, residents and various other persons in making determinations on Code related issues.

4. The City Council of the City of Fort Bragg set forth legislative findings pursuant to California Health and Safety Code § 17958.7 and 13143.5 in Resolution XXXX-2019, adopted on December 9, 2019 to substantiate the amendments to the California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition, as adopted in City of Fort Bragg’s Municipal Code Chapter 15.05.

5. There is no possibility that the adoption of this ordinance will have a significant impact on the environment, and therefore, the adoption of this ordinance is exempt from the California Environmental Quality Act (“CEQA”), pursuant to Section 15061(b)(3) of the CEQA Guidelines (Title 14, Chapter 3 of the California Code of Regulations). Enacting minor changes to the City’s Code pertaining to automatic fire sprinkler and alarm systems cannot have a significant effect on the environment. The changes to the City’s Municipal Code are minor in nature and do not create substantive changes to land use or the California Fire Code. Subsequent planning and building permit applications will be subject to environmental review at that time. Thus, there is no further environmental review necessary at this time.

Section 2.

TITLE 15 – BUILDINGS AND CONSTRUCTION

Chapter 15.06 entitled AUTOMATIC FIRE SPRINKLER AND ALARM SYSTEMS is hereby repealed in its entirety and replaced with the following:

CHAPTER 15.06: AUTOMATIC FIRE SPRINKLER AND ALARM SYSTEMSSection

15.06.010 Purpose15.06.020 Definitions in general15.06.030 Automatic fire sprinkler systems required15.06.050 Exemptions and waivers15.06.060 Annual inspection and maintenance15.06.070 Reserved15.06.080 Fire alarm systems defined and required15.06.090 Violations

§ 15.06.010 PURPOSE.A. The California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition, as

modified and amended from time to time, establishes certain standards for automatic fire extinguishing systems. A copy of the Code, in its latest form, is on file in the office of the Fire Chief.

B. The purpose of this chapter is to provide regulations establishing minimum standards for automatic fire sprinkler systems where the standards are not specifically covered by the California Fire Code. Where specific standards are provided by the California Fire Code and provide a greater degree of fire protection than the provisions of this chapter, those standards shall apply. In those cases where the California Fire Code, does not provide specific standards, the terms of this chapter shall apply.

C. The intent of this chapter is to apply those fire protection standards which will provide the residents and property owners of the City the greatest degree of fire protection which is reasonable under the circumstances. All buildings are subject to the provisions of this chapter.

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§ 15.06.020 DEFINITIONS IN GENERAL.Definitions contained in the California Fire Code, California Code of Regulations, Title 24, Part

9, 2019 Edition, shall apply to this chapter unless specifically amended. Whenever any of the following names or terms are used in any of the compilations adopted by reference by this chapter such names or terms shall have the following meanings:

APPEAL AUTHORITY. As defined in Municipal Code Chapter 1.06.BUILDING. Any building or group of buildings that requires a sprinkler under this ordinance or

the California Fire Code, California Code of Regulations, Title 24, Part 9, 2019 Edition.BUILDING PERMIT VALUATION. The value of repairs, maintenance and remodel work as

determined by the Mendocino County Planning and Building Department through their plan review process. The Building Permit Valuation will include the total of all active building permits for the Building at the same location, excluding separate permits to install automatic fire sprinkler systems.

§ 15.06.030 AUTOMATIC FIRE SPRINKLER SYSTEMS — REQUIRED.A. All new Buildings shall have an automatic fire sprinkler system installed, unless specifically

exempted in accordance with § 15.06.050.B. Buildings in existence prior to the adoption of this Code shall be subject to the requirements

for automatic fire sprinkler systems upon the change of occupancy to a higher hazard level as defined by the Fire Marshal.

C. Existing commercial and multi-family buildings which are remodeled, added to, or altered, including maintenance and repair activities, when the Building Permit Valuation cost of such exceeds $75,000, shall have an automatic fire sprinkler system installed. The sprinkler system shall be connected with water service as determined by the Director of Public Works. Roof replacement costs will not be calculated into the $75,000 limit. Determination of the Building Permit Valuation of work completed shall proceed as follows:

1. As determined by the Mendocino County Planning and Building Department through their plan review process and completed on the application for any building permit.

2. The Fire Marshal shall: 1) review the building permit, plans and Building Permit Valuation at the time of the building permit application submittal; and 2) review the building permit, any applicable building permit application and plans upon any change in scope of work or modification to the building permit application to determine if the Building Permit Valuation of the proposed work and all work completed on the Building for all active building permits exceeds the $75,000 threshold.

3. If the Building Permit Valuation exceeds the threshold, the Fire Marshal shall require installation of fire sprinklers per this chapter prior to approval of the building permit or final inspection.

§ 15.06.050 EXEMPTIONS AND WAIVERS.A. All 1- and 2-family dwellings and detached utility (“U” occupancy) buildings are exempted

from the requirement to install automatic fire sprinkler systems.B. The Fire Chief may grant exemptions for the automatic fire sprinkler system requirements

for new construction by placing such conditions upon construction and/or use of the building so as to reduce the fire risk to a diminished level and by making a finding that the use of structure would present low or no fire risk. Examples:

1. Portable fire extinguisher or Class 2 standpipe installation;2. Providing 1-hour resistive occupancy separation for equipment rooms;3. Sprinklers undesirable because of nature of the contents in the room/area, the items

being noncombustible or not exposed to other rooms/areas.

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§ 15.06.060 ANNUAL INSPECTION AND MAINTENANCEThe owner of any Building in which automatic fire alarm systems or fire sprinkler systems have

been installed shall have the systems inspected and maintained per NFPA 25 and shall provide a report of the inspection to the Fire Chief.

§ 15.06.070Reserved.

§ 15.06.080 FIRE ALARM SYSTEMS DEFINED AND REQUIRED.A. FIRE ALARM SYSTEM means all devices, controls, and circuits, together with the energy

necessary to sound the alarm, electrically supervise the system, and activate the alarm bells, trouble bells or trouble signals.

B. Every new Building shall have installed an approved, automatically-operated fire alarm system designed to warn all occupants simultaneously. In addition, the Fire Chief may require that this system be monitored in the manager’s quarters and/or by a supervising station as defined in NFPA 72. The Fire Chief may also require the installation of a manually-operated fire alarm system.

C. All required fire alarm systems shall be installed in accordance with NFPA 72.D. Exceptions to § 15.06.080 are all “U” occupancies. These exceptions do not apply to 1- and

2-family dwellings within a Building that otherwise requires an alarm system (i.e., commercial occupancy below a dwelling).

§ 15.06.090 VIOLATIONS.Failure to comply with the requirements of this chapter is hereby declared to be unlawful

and a public nuisance, and shall be subject to the remedies and penalties established by Municipal Code Chapter 6.12.

Section 4. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid orunconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council of the City of Fort Bragg hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.


The foregoing Ordinance was introduced by Councilmember _______at a regular meeting of the City Council of the City of Fort Bragg held on December 9, 2019, and adopted at a regular meeting of the City of Fort Bragg held on January 13,2020, by the following vote:

AYES:NOES:

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ABSENT:ABSTAIN:RECUSE:

____________________________WILLIAM V. LEE,Mayor

ATTEST:____________________________June Lemos, CMCCity Clerk

PUBLISH: December 12, 2019 and January 23, 2020 (by summary).EFFECTIVE DATE: February 12, 2020.

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