City Council - Regular Meeting

TWENTYNINE PALMS CITY COUNCIL REGULAR MEETING AGENDA 6136 Adobe Road Twentynine Palms, CA 92277 www.29palms.org Tuesday, January 5, 2021 NOTICE IS HEREBY GIVEN, that the City Council will hold a Regular Meeting on Tuesday, January 5, 2021 at City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277 to consider the following: REGULAR SESSION AGENDA 6:00 P.M. SAFETY ALERT AS A RESULT OF THE COVID-19 VIRUS, AND RESULTING ORDERS AND DIRECTION FROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OF CALIFORNIA, AND THE SAN BERNARDINO COUNTY HEALTH CARE AGENCY, AS WELL AS THE CITY OF TWENTYNINE PALMS EMERGENCY PROCLAMATION, THE PUBLIC WILL NOT BE PERMITTED TO PHYSICALLY ATTEND THE TWENTYNINE PALMS CITY COUNCIL MEETING TO WHICH THIS AGENDA APPLIES.YOU MAY SUBMIT COMMENTS ON ANY AGENDA ITEM OR ON ANY ITEM NOT ON THE AGENDA IN WRITING VIA MAIL TO “CITY COUNCIL” 6136 ADOBE ROAD TWENTYNINE PALMS, CA 92277 OR BY EMAIL TO info@29palms.org.YOU MAY VIEW THE MEETING LIVE ON ONLINE ON THE CITY OF TWENTYNINE PALMS' WEBSITE. PLEASE NOTE THAT THE CITY COUNCIL IS MAKING EVERY EFFORT TO FOLLOW THE SPIRIT AND INTENT OF THE BROWN ACT AND OTHER APPLICABLE LAWS REGULATING THE CONDUCT OF PUBLIC MEETINGS, IN ORDER TO MAXIMIZE TRANSPARENCY AND PUBLIC ACCESS. IT WOULD BE APPRECIATED IF COMMUNICATIONS OF PUBLIC COMMENTS RELATED TO ITEMS ON THE AGENDA, OR ITEMS NOT ON THE AGENDA, ARE PROVIDED TO info@29palms.org PRIOR TO THE COMMENCEMENT OF THE MEETING. IF THAT IS NOT POSSIBLE, AND TO ACCOMMODATE COMMENTS TO ITEMS THAT MAY BE ADDED TO THE AGENDA AFTER ITS INITIAL POSTING DURING THIS TIME OF EMERGENCY, EVERY EFFORT WILL BE MADE TO ATTEMPT TO REVIEW EMAILS DURING THE COURSE OF THE MEETING. TOWARDS THE END, THE MAYOR WILL ENDEAVOR TO TAKE A BRIEF PAUSE BEFORE ACTION IS TAKEN ON ANY AGENDA ITEM TO ALLOW THE CLERK TO REVIEW EMAILS, AND SHARE ANY PUBLIC COMMENTS RECEIVED DURING THE MEETING. IF YOU WOULD LIKE TO PARTICIPATE IN THE LIVE SESSION DECEMBER 5, 2021 CITY COUNCIL MEETING PLEASE REGISTER AT THE FOLLOWING LINK: https://attendee.gotowebinar.com/register/8413192907721452046 CALL TO ORDER Pledge of Allegiance. Invocation - TBD. Page 1 of 50  Roll Call. Closed Session Announcements. Changes to the Agenda. ANNOUNCEMENTS These proceedings may be viewed on demand on the City of Twentynine Palms website at www.29palms.org. You may also Live Stream this meeting by going on our website and clicking on the "Meeting Agendas" link. AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED CONSENT CALENDAR All matters listed under the Consent Calendar are to be considered routine by the City Council/ City Council in its Capacity as Successor Agency to the Former Twentynine Palms Redevelopment Agency and will be enacted by one motion in the form listed. Any item may be removed from the Consent Calendar and considered separately by the City Council. The public will be given an opportunity to comment on Consent Calendar items prior to the City Council action. 1. Waive the Reading of Ordinance and Approve the Reading by Title Only. ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION PUBLIC HEARING - NONE DISCUSSION AND POTENTIAL ACTION ITEMS 2. Sewer Rate Fee Study and Rate-Setting Process 5 - 47 RECOMMENDATION: The City Council comment on the report regarding the sewer rate fee study and rate-setting process with a potential action of approving the study, authorizing the mailings, and call a Public Hearing for February 23, 2021. Sewer Rate Fee Study and Rate-Setting Process - Pdf 3. City Council Regional Organizational Assignments. 49 - 50 RECOMMENDATION: The City Council review Council assignments for Regional Organizations and make appointments as appropriate. City Council Regional Organizational Assignments. - Pdf FUTURE COUNCIL INITIATED ITEMS 1. Discussion on Adding Sidewalk and Additional Picnic Tables in Veterans' Park. 2. Cannabis. PUBLIC COMMENTS This is the time for the public to address the City Council on issues within the jurisdiction of the City Council that are NOT on this agenda. All comments are to be directed to the City Council and shall not consist of any personal attacks. Members of the public are expected to maintain a professional, courteous decorum during their comments. There is a time limitation of three minutes per person. If you haven’t already done so, please fill out name and address slips and give them to the City Clerk. The City Council is prohibited by State law from taking action or discussing items not included on the printed agenda. Public comments on specific agenda items will be deferred until consideration of the item on the agenda. CITY MANAGER UPDATE Page 2 of 50 ADJOURNMENT It is the intention of the City of Twentynine Palms to comply with the Americans with Disabilities Act in all respects. If you are a person with a disability who requires a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, please request such modification or accommodation from the City Clerk at (760) 367-4890 (facsimile). Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting. Please advise us at the time whether you will require accommodations to participate in meetings on a regular basis. Any person affected by any application on this agenda may submit their concerns in writing prior to the meeting or appear in person and be heard in support or opposition to the proposal at the time the matter is considered on the agenda. The staff reports, applications and environmental documents may be viewed at either the office of Community Development or the office of the City Clerk, 6136 Adobe Road, from 7:00 a.m. until 6:00 p.m. Monday through Thursday, except legal holidays. The Invocation is given per Policy 10-01, and does not reflect the views of the City but rather is an expression of speech by a private citizen making the presentation. Telephone inquiries may be made at (760) 367-6799. If you challenge any agenda issue in court, you may be limited to raising only those issues that you or someone else raised at the public meeting described in this notice, or in written correspondence delivered to the City of Twentynine Palms at, or prior to, the public meeting. This notice of agenda is hereby certified to have been posted on or before 12:00 p.m., December 23, 2020. Cindy Villescas CMC, City Clerk Time/Date Page 3 of 50 Page 4 of 50  STAFF REPORT TO: City Council FROM: City Manager FOR MEETING: Jan 05 2021 SUBJECT: Sewer Rate Fee Study and Rate-Setting Process RECOMMENDATION: The City Council comment on the report regarding the sewer rate fee study and rate-setting process with a potential action of approving the study, authorizing the mailings, and call a Public Hearing for February 23, 2021. ORDER OF PROCEDURE: ATTACHMENTS: Request Staff Report (City Manager Presenting) Council Questions of Staff • Sewer Rate Study Council Discussion Motion/Second Discussion of Motion • Prop 218 Notice_Sewer Call the Question • County Special Districts_Fee Proposal_Project Phoenix Maintenance • County Special Districts_Technical Proposal_Project Phoenix Mainenance BACKGROUND: The City of Twentynine Palms (City) is anticipated to begin providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2019‐20. This project is unique in that it has a limited number of customers and will have its own package treatment plant serving only those customers within the new development. The City’s proposed Phoenix Project sewer rates identified in this report are intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The main objective of this study was to a develop five‐year financial plan that identifies the costs associated with operating the Phoenix Project and provide recommended rates for the initial five years of the sewer treatment services. These are discussed in further detail in the body of this report. The City of Twentynine Palms (City) is anticipated to begin providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2019‐20. This project is unique in that it has a limited number of customers and will have its own package treatment plant serving only those customers within the new development. The City’s proposed Phoenix Project sewer rates identified in this report are intended to fund Page 5 of 50 operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The main objective of this study was to a develop five‐year financial plan that identifies the costs associated with operating the Phoenix Project and provide recommended rates for the initial five years of the sewer treatment services. These are discussed in further detail in the body of this report. The City of Twentynine Palms (City) is anticipated to begin providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2019‐20. This project is unique in that it has a limited number of customers and will have its own package treatment plant serving only those customers within the new development. The City’s proposed Phoenix Project sewer rates identified in this report are intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The main objective of this study was to a develop five‐year financial plan that identifies the costs associated with operating the Phoenix Project and provide recommended rates for the initial five years of the sewer treatment services. These are discussed in further detail in the body of this repo The City of Twentynine Palms (City) is anticipated to begin providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2020‐21, beginning in March 2021. This project is unique in that it has a limited number of customers and will have a centralized septic tank serving the private businesses, multi-purpose facility, and Joshua Tree National Park Visitor/Cultural Center. The City’s proposed Project Phoenix sewer rates identified in this report are intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The main objective of this study was to a develop five‐year financial plan that identifies the costs associated with operating Project Phoenix and provide recommended rates for the initial five years of the sewer treatment services; however with a new system, staff is only recommending approving a one year rate. These are discussed in further detail in the body of this report. ts assoc The City has been working together with the Project Phoenix development team and our Sewer Rate consultants to ensure the system is sustainable with operation costs and infrastructure replacement. Wildan Financial Services is an industry leader in the development of rates to support enterprise funds for cities and special districts. Project Phoenix will be a brand new sewer system. The system initially will be a sewer collection system with a septic tank disposal system, along with two monitoring wells to ensure water quality. Approximately every five years, government entities should go through a rate setting process to ensure operational sustainability and infrastructure replacement, however the City will review this process again in approximately one year, or once the package treatment plant is funded and put into operation. The City had an outreach meeting on February 20th, 2020 to discuss the rates and methodology. Staff felt after the meeting that most of the businesses and/or owners were comfortable with the rates as proposed comparing to the Hi-Desert Water District (HDWD) rates. Staff also explained compared to HDWD, the City of Twentynine Palms was NOT going to ask the businesses for connection fees or private property connection costs; Project Phoenix was absorbing those costs. To ensure the rates were comparable to HDWD rates, the City of Twentynine Palms General Fund will have to subsidize the sewer enterprise fund. ENVIRONMENTAL: The City approved a Mitigative Negative Declaration for the entire Project Phoenix project, which included the sewer and water pipeline installation, on February 12, 2019. ALTERNATIVES: The City Council could choose to make adjustments to the rates, reject the report, or give policy direction to return to the Council. FISCAL IMPACT: As presented, the rates will need a General Fund Subsidy of up to $67,500 annually due to the small number of connections. Page 6 of 50 CITY OF TWENTYNINE PALMS Sewer Rate Study December 2020 Page 7 of 50 TABLE OF CONTENTS TABLE OF CONTENTS ...................................................................................................................................... i Section 1 – Executive Summary ..................................................................................................................... 1 1.1 Study Overview ....................................................................................................................................... 1 1.2 Financial Plans ........................................................................................................................................ 1 1.3 Cash Reserve Targets .............................................................................................................................. 1 1.4 Findings and Recommendations ............................................................................................................ 2 Section 2 ‐ Introduction................................................................................................................................. 3 2.1 Introduction ............................................................................................................................................ 3 2.2 Goals and Objectives .............................................................................................................................. 3 2.3 Overview of the Rate Study Process ....................................................................................................... 3 2.4 Organization of this Report .................................................................................................................... 4 2.5. Reliance on Data .......................................................................................................................................... 4 Section 3 – Overview of Financial Planning Principles, Processes and Issues .................................................. 5 3.1 Introduction ............................................................................................................................................ 5 3.2 Discussion of General Financial Planning Principles ............................................................................... 5 3.3 The Revenue Sufficiency Process............................................................................................................ 6 3.3.1 Determination of the Revenue Requirements ............................................................................... 6 3.4 Financial Management Goals of the City ................................................................................................ 7 3.4.1 Cash Reserve Targets ...................................................................................................................... 7 Section 4 – Financial Plan Development and Results ..................................................................................... 8 4.1 Revenue Sufficiency Analysis .................................................................................................................. 8 4.1.1 General Methodology .................................................................................................................... 8 4.1.2 Data Items ...................................................................................................................................... 8 4.1.3 FY 2020‐21 Beginning of Year Cash Balance................................................................................... 8 4.1.4 FY 2020‐21 Estimated Costs ........................................................................................................... 8 4.1.7 General Assumptions ..................................................................................................................... 9 4.2 Rate Design Analysis ................................................................................................................................... 11 4.2.1 General Methodology .................................................................................................................. 11 4.2.3 Cost of Service Principles and Analysis ................................................................................................ 11 i Rate Study ‐ Final Report December 22, 2020 Page 8 of 50  4.2.4 Proposed Rates .................................................................................................................................... 12 Section 5 – Conclusions and Recommendations .......................................................................................... 14 5.1 Conclusions ................................................................................................................................... 14 5.2 Recommendations........................................................................................................................ 14 ii Rate Study ‐ Final Report December 22, 2020 Page 9 of 50 Section 1 – Executive Summary The City of Twentynine Palms (City) is anticipated to begin providing sewer service to customers in a new relatively small downtown project (Phoenix Project) in Fiscal Year (FY) 2020‐21. This project is unique in that it has a limited number of customers and will have its own package treatment plant serving only those customers within the new development. The City’s proposed Phoenix Project sewer rates identified in this report are intended to fund operations and maintenance (O&M) costs and capital maintenance costs for this specific system. The main objective of this study was to a develop five‐year financial plan that identifies the costs associated with operating the Phoenix Project and provide recommended rates for the initial five years of the sewer treatment services. These are discussed in further detail in the body of this report. 1.1 Study Overview The City contracted with Willdan Financial Services (“Willdan”), to complete a sewer rate study comprised of the following objectives:  Five‐Year Financial Plan: Identify the revenues required by the utility to meet the respective annual costs of operation and maintenance.  Rate Development: Develop initial rates reflecting the City’s cost of providing Phoenix Project sewer treatment services. 1.2 Financial Plans The five‐year Phoenix Project sewer financial plan was developed based on projected revenues, expenditures and system growth. The projections reflect the best available information and assessments developed and refined through numerous teleconferences between Willdan and City staff. It should be noted that while a five‐year plan was developed the focus was on the initial year of the treatment service, and the financial plan will be refined in the future as additional data is acquired. 1.3 Cash Reserve Targets Through the study process Willdan worked with City staff to identify and recommended financially prudent cash reserve targets for the utility to help ensure the financial viability of the Phoenix Project. The cash reserve target included: 1|Page Page 10 of 50   Operating Reserve: Cash reserve equivalent to 90 days of annual operations and maintenance expenses. It is anticipated that this reserve will be achieved over time with an incremental build up of reserves over time rather than immediately upon initial operation of the plant. 1.4 Findings and Recommendations It is recommended that the City update the cashflow portion of this study each year to ensure projected revenue is sufficient to fund projected expenses going forward as assumptions made during this analysis may change and have a material impact on the analysis. The proposed revenue targets and rates are illustrated in Tables 1‐1 and 1‐2. Table 1‐1 Projected Revenue Target Fiscal Years Ending June 30 Phoenix Project Description Sewer Revenue Target 2020‐21 $30,000 2021‐22 80,000 2022‐23 127,000 2023‐24 165,000 2024‐25 180,000 Table 1‐2 Proposed Phoenix Project Sewer Rates Fiscal Years 2020‐21 through FY 2024‐25 Billing Category Existing 20‐21 21‐22 (2) 22‐23 (2) 23‐24 (2) 24‐25 (2) All Customer (per Equivalent Dwelling Unit1) $0.00 $35.09 $35.66 $61.58 $61.58 $61.58 (1) An equivalent dwelling unit represents 175 gallons per day, the assumed flow of a single family residential development (2) Effective July 1 2|Page Page 11 of 50 Section 2 - Introduction 2.1 Introduction Willdan Financial Services (“Willdan”) was retained by the City of Twentynine Palms, California (“City”) to conduct a Sewer Rate Study (“Rate Study”) for the City’s new Phoenix Project. This report details the results of the Rate Study analysis for the forecast period, fiscal year (FY) 2019‐20 through FY 2024‐25, the results of which are presented in this Rate Study Report. The results of the Rate Study presented herein are a financial plan and suggested rate adjustments designed to provide revenues sufficient to fund the ongoing operating, maintenance and capital costs necessary to operate the City’s sewer treatment facility serving the new Phoenix Project, while striving to meet the financial requirements and goals set forth by the City’s for the Phoenix Project. Based on discussion with City staff, this report presents the recommended financial plan and adjustments to meet the City’s objectives. 2.2 Goals and Objectives The primary goal of the Rate Study was to develop a financial plan that identified the necessary revenue streams to meet ongoing costs (operations & maintenance and capital maintenance), and to maintain industry standard financially prudent cash reserves. More specifically the Rate Study was undertaken to:  Conduct the analysis in accordance with industry standards consistent Water Environment Federation (“WEF”) guidelines;  Develop a financial plan consistent with industry standards and best practices while recognizing the needs specific to the City; and  Recommend rates that adhere to and meet Proposition 218 requirements which requires a matching between the fees being assessed to customers and the cost they place on the system. 2.3 Overview of the Rate Study Process The rate study process consists of two primary study components. First, the identification of revenues required to meet system expenses during the study forecast period must be made. The result of this analysis, known as the Revenue Sufficiency Analysis, is an assessment of the ability of the revenue stream to meet the projected financial requirements of the system during the forecast period and, to the extent required, the identification of the magnitude and timing of any required revenue adjustments. 3|Page Page 12 of 50 Next, a determination of the user rates and charges that will meet the City’s goals and objective. 2.4 Organization of this Report This Rate Study presents an overview of the financial planning concepts employed in the development of the analysis contained here. The analysis is followed by a discussion of the data, assumptions and results associated with each component of the analysis. Finally, appendices with detailed schedules are presented for further investigation and insight into the data, assumptions and calculations which drive the results presented in this Rate Study. The report is organized as follows: • Section 1 – Executive Summary • Section 2 – Introduction • Section 3 – Overview of Financial Planning Principles, Processes and Issues • Section 4 – Financial Plan Development and Results • Section 5 – Conclusions and Recommendations • Appendix A – Phoenix Project Sewer System Financial Plan and Rate Design 2.5. Reliance on Data During this project the City (and/or its representatives) provided Willdan with a variety of technical information, including operational cost and customer data. This data was used by Willdan in the process of developing the financial plans and recommended rates adjustments. Willdan did not independently assess or test for the accuracy of such data, historic or projected, but worked with City staff to better understand the data and its sources and believe it to be the best available information at the time of the study. 4|Page Page 13 of 50 Section 3 – Overview of Financial Planning Principles, Processes and Issues 3.1 Introduction The scope of this study included the development of a Phoenix Project sewer financial plan for the planning period FY 2020‐21 through FY 2024‐25, for the package treatment plant serving the new development in the downtown area. The scope of this study also included the development of sewer user rates for treatment services the City will begin providing to this project in FY 2020‐21. Utility rates must be set at a level where operating, maintenance and capital maintenance expenses are met with the revenues received from customers; that revenues generated from utility rates are used only for this purpose; and that revenues generated do not exceed the cost of providing the service. This is a significant point, as failure to achieve this level could lead to insufficient funds being available to adequately maintain the system. This Rate Study utilized generally accepted rate‐making principles and standards established by the industry’s governing body the Water Environment Federation (WEF) in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27 (2004)”. The principles used resulted in the update of rates and charges which are projected to: 1) generate sufficient revenue to meet the financial requirements of the sewer utility, and 2) address the need to recover costs from users in a manner which is proportionate to the cost of providing service on a fair and equitable basis relative to the service provided, and which does not exceed the cost of providing the service. 3.2 Discussion of General Financial Planning Principles While the individual rates vary based on a variety of factors, rates should be consistent with general rate‐ making principles set forth in utility rate‐making practice and literature. The principles by which rate practitioners are guided is that rates designed for any utility should strike a reasonable balance between several key factors. In general, rates designed should:  Generate a stable rate revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the utility;  Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service, as required by Proposition 218; 5|Page Page 14 of 50   Be fair and equitable – that is, they should generate revenue from customer classes which is reasonably in proportion to the cost to provide service to that customer class;  Be easy to understand by customers; and  Be easy to administer by the utility. Striking the appropriate balance between the principles of rate‐making is the result of a detailed process of evaluation of revenue requirements and how those translate into the rate design alternatives which meet legal requirements and the specific objectives of the utility under the circumstances in which it operates. 3.3 The Revenue Sufficiency Process In order to evaluate whether rates and charges which will generate sufficient revenue to meet the fiscal requirements of the Phoenix Project sewer utility, a determination of the annual rate revenue required must be completed. The first step in the process is the Revenue Sufficiency Analysis. The Revenue Sufficiency Analysis compares the forecasted revenues of the utility under proposed rate alternatives to its forecasted operations and maintenance, capital, and reserve costs to determine the adequacy of the rates to recover the utility’s costs. The process employed in the Revenue Sufficiency Analysis involves a rigorous review of operating, maintenance and capital budgets for the utility, and results in the identification of revenue requirements of the system, such as operating expenses, capital expenses (minor and major), transfers in and out, and the maintenance of both restricted and unrestricted reserves at appropriate levels. These revenue requirements are then compared to the total sources of funds available during each year of the forecast period to determine the adequacy of projected revenues to meet projected revenue requirements. Rates are calculated which if enacted, would provide revenue sufficient to meet those needs. 3.3.1 Determination of the Revenue Requirements Considerations in Setting Revenue Requirements Realities There are a multitude of considerations, ranging from financial to political to legal Principles that must be analyzed or discussed during the revenue requirements process of a Policies rate analysis. This section provides an overview of the considerations that are Bond (Legal) Covenants reviewed during this process. Laws/Regulations 6|Page Page 15 of 50 Financial Planning In the development of the revenue requirements, certain parameters are utilized to project future expenditures, growth in customers and necessary revenue needs. The City’s cost estimates were used as the baseline, which were then projected over the planning horizon to account for fluctuations in costs from year to year. Growth assumptions and prudent financial planning were fundamental in ensuring adequate rate revenue to promote financial stability. 3.4 Financial Management Goals of the City The establishment of specific financial management goals of a utility is a key step in developing financial plans which will ensure the financial health of the utility remains strong. The financial management goals of the City are described below. 3.4.1 Cash Reserve Targets In order to maintain financially stable and sustainable utilities, the City has identified a reserve target that it will strive to achieve and maintain over time. The reserve target is identified in Table 3‐1. Table 3‐1 Reserve Target Minimum Reserve Purpose Balance Manage timing differences Phoenix Project Sewer 90 days of between revenue receipt and Operating Reserves O&M expense payments While it is not essential that the City meet the operating reserve on annual basis (it is not a legal requirement), prudent financial planning suggests that the City should strive to achieve and maintain the reserve target and should not dip below the minimum balance on a continuous basis once the target reserve has been achieved. 7|Page Page 16 of 50 Section 4 – Financial Plan Development and Results 4.1 Revenue Sufficiency Analysis 4.1.1 General Methodology In order to develop rates and charges which generate sufficient revenue to meet the fiscal requirements of the City, a determination of the annual required revenue from rates which, when combined with other sources of funds, will provide sufficient funds to meet those fiscal requirements must first be completed. This process is typically referred to as a Revenue Sufficiency Analysis. The process employed in the Revenue Sufficiency Analysis resulted in the identification of revenue requirements of the system, such as operating expenses, capital maintenance expenses and the maintenance of both restricted and unrestricted reserves at appropriate levels. These revenue requirements were then compared to the total sources of funds during each year of the forecast period to determine the adequacy of projected revenues to meet requirements. 4.1.2 Data Items Key data items reviewed, discussed and incorporated into the Revenue Sufficiency Analysis were:  Financial management goals of the City  FY 2020‐21 Beginning of Year Fund Balances;  FY 2020‐21 Estimated Costs;  General assumptions related to:  Customer growth;  Cost escalation factors; A discussion of the use of each of the above data items is presented below. 4.1.3 FY 2020-21 Beginning of Year Cash Balance The City’s Phoenix Project sewer utility does not have any cash on hand since as of the timing of this report the City has not yet begun providing sewer treatment service utilizing this new Phoenix Project. 4.1.4 FY 2020-21 Estimated Costs Staff provided Willdan with the FY 2020‐21 estimated costs to provide Phoenix Project sewer treatment, including associated line‐item detail, as the basis for the financial projections for the forecast period. The line‐ 8|Page Page 17 of 50 item projected expenses for FY 2020‐21 were used as the basis for the projection of future budgetary line‐ items for the remainder of the forecast period. Cost escalation factors were reviewed by staff and were used to project increases in line‐item costs beyond the FY 2020‐21 estimates. Those factors were applied based on line‐item cost classifications. A summary of the FY 2020‐21 estimated costs, and subsequent projected expenses are presented below in Table 4‐1. A more detailed presentation of the line‐item projected revenues and expenses is presented in Schedules A‐2 through A‐3, in the Appendix. Table 4‐1 Operating Budget Fiscal Years Ending June 30 Description 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 O&M $27,342 $78,843 $111,168 $153,918 $158,536 Capital Outlay 0 0 14,444 14,733 15,028 Total Expenses $27,342 $78,843 $125,612 $168,651 $173,564 4.1.7 General Assumptions In order to develop the financial and rate projections, certain assumptions were made with regard to elements of the revenue sufficiency analysis. A summary of those assumptions is presented below. 4.1.7.1. System Growth The City’s anticipated customer base has been converted to an equivalent dwelling unit basis, based on the assumed flows of single family residential customer. A single family customer is assumed to contribute 175 gallons of discharge per day. The projected discharge in gallons per day (GPD) for all other customers are divided by 175 to determine their equivalent EDUs. The City anticipates that 29 EDUs will be served annually through FY 2021‐22. In FY 2022‐23 an additional 26 EDUs are anticipated to come online, followed by an additional 41 EDUs in FY 2023‐24 bringing the total EDUs to 96. 4.1.7.2. O&M Escalation Factors Willdan worked with City staff to identify reasonable cost escalation factors to be applied to operations and maintenance expenses in recognition of increasing costs over time. It was determined that a 3.0% inflationary factor represented a reasonable estimate of annual cost increases for O&M costs during the study period. There are some line items, however, that are projected to increase at the rate of growth plus inflation. Those line items include:  Plant washdown and field work 9|Page Page 18 of 50   Sludge disposal  Annual maintenance and inspection 4.1.7.2. Revenue Requirements Based on the anticipated costs of providing Phoenix Project sewer treatment service, our analysis has identified the annual revenue requirements to operate the system. Table 4‐2 summarizes the annual revenue targets for the study period. Table 4‐2 Projected Revenue Target Fiscal Years Ending June 30 Phoenix Project Description Sewer Revenue Target 2020‐21 $30,000 2021‐22 80,000 2022‐23 127,000 2023‐24 165,000 2024‐25 180,000 A more detailed presentation of the pro forma is presented in Schedule A‐1 of the appendix. 4.1.7.3. Summary of Revenue Sufficiency Analysis The proposed financial plan, including identified revenue needs is presented in Table 4‐3 which provides for funding of projected revenue requirements during the forecast period. 10 | P a g e Page 19 of 50  Table 4‐3 Projected Net Operating Fund Results Fiscal Years 2019‐20 to 2024‐25 Description 20‐21 21‐22 22‐23 23‐24 24‐25 Beginning Cash Balance $0 $2,658 $3,815 $5,202 $1,551 Total Revenue 30,000 80,000 127,000 165,000 180,000 Operating & Maintenance Expenses 27,342 78,843 111,168 153,918 158.536 Capital Outlay 0 0 14,444 14,733 15,028 Net Cash Flow 2,658 1,157 1,388 (3,651) 6,436 Ending Cash Balance $2,658 $3,815 $5,202 $1,551 $7,988 Target Cash Reserve $6,742 $19,441 $30,973 $41,585 $42,796 4.2 Rate Design Analysis 4.2.1 General Methodology With the rate revenue requirement determined in the Revenue Sufficiency Analysis, the development of specific rates and charges was completed as described below. First, the rate design goals of the City were reviewed to identify areas the City wanted to address over the forecast period included in this Rate Study. In addition to the City’s goals, rate design should seek to achieve the following industry standard objectives:  Generate a stable rate revenue stream which, when combined with other sources of funds, is sufficient to meet the financial requirements and goals of the utility;  Be fair and equitable – that is, they should generate revenue from customer classes which is reasonably in proportion to the cost to provide service to that customer class;  Be easy to understand by customers;  Be easy to administer by the utility; and  Be compliant with California State law, specifically Proposition 218, whereby the rates must be based upon the proportionate cost of providing sewer service. 4.2.3 Cost of Service Principles and Analysis In conducting a cost of service analysis, sewer costs are allocated based on their need to meet general capacity requirements associated with the collection, transmission and treatment of flows, as well as customer related costs such as billing and customer service. As mentioned in Section 4.1.7.1, through an analysis of assumed 11 | P a g e Page 20 of 50 flows, it was determined that the average daily discharge for a single family residential home will be 175 gallons per day (GPD). This value represents the flows of an equivalent dwelling unit or EDU. Initially the City is only proposing to provide service to non‐residential customers and does not have discharge strength sampling data to justify assessing fees based on the type of non‐residential development. In anticipation of serving residential customers in the future, a rate is proposed to be charged to all customers based on the amount discharged on an EDU basis. Table 4‐4 illustrates the non‐residential customer categories flows and associated EDUs. Table 4‐4 Phoenix Project Sewer System Customer Classifications Customer Flows (GPD) EDUs (1) Residential 7,100 40.57 Public Building 4,500 25.71 Restaurant/Store 832 4.75 Hair/Nail Salon 156 0.89 Restaurant 664 3.79 Papa Johns Pizza 318 1.82 Real Estate Office 27 0.15 Nail Salon/Tattoo 379 2.17 Stores 43 0.25 Restaurant 705 4.03 Furniture Store 157 0.90 Restaurant 937 5.35 Store 12 0.07 Bar 883 5.05 Total 16,712 95.50 (1) An EDU represents the average daily discharge for a single family residential home estimated at 175 gallons per day 4.2.4 Proposed Rates The rate design analysis used the identified revenue requirements by year and associated EDUs to identify the monthly rate per EDU. As the Phoenix Project sewer utility is a new startup the City has indicated that it will be using funds from outside the Phoenix Project revenue stream to subsidize the monthly rates until the system becomes more mature. Table 4‐5 summarizes the rates prior to the subsidy as well as the revised (proposed) rates as a result of the subsidy. The anticipated charges by customer for the initial year of service are summarized in Table 4‐6. 12 | P a g e Page 21 of 50 Table 4‐5 Proposed Phoenix Project Sewer Rates Fiscal Years 2020‐21 through FY 2024‐25 Billing Category 20‐21 21‐22 (1) 22‐23 (1) 23‐24 (1) 24‐25 (1) Annual Revenue Requirement $30,000 $80,000 $127,000 $165,000 $180,000 Number of EDUs 29 29 55 95 95 Months Effective 4 12 12 12 12 Rate per EDU per Month $256.76 $228.23 $191.69 $142.92 $155.91 Annual Rate Subsidy 25,900 67,700 86,202 93,905 108,905 Revised (Proposed) Rate per EDU $35.09 $35.09 $61.58 $61.58 $61.58 (1) Effective each July 1 Table 4‐6 Phoenix Project Sewer System Customer Charges – FY 2020 Customer Flows (GPD) EDUs (1) Rate per EDU (2) Charge (2) Restaurant/Store 832 4.75 $35.09 $166.84 Hair/Nail Salon 156 0.89 35.09 31.23 Restaurant 664 3.79 35.09 133.14 Papa Johns Pizza 318 1.82 35.09 63.69 Real Estate Office 27 0.15 35.09 5.34 Nail Salon/Tattoo 379 2.17 35.09 76.02 Stores 43 0.25 35.09 8.63 Restaurant 705 4.03 35.09 141.36 Furniture Store 157 0.90 35.09 31.44 Restaurant 937 5.35 35.09 187.79 Store 12 0.07 35.09 2.47 Bar 883 5.05 35.09 177.06 (1) An EDU represents the average daily discharge for a single family residential home estimated at 175 gallons per day (2) Per Month 13 | P a g e Page 22 of 50 Section 5 – Conclusions and Recommendations 5.1 Conclusions  Projected operating revenues and operating expenses for the forecast period were developed by, and/or in consultation with, City staff and are based upon reasonable projections;  The projected capital maintenance expenses have been developed by City staff, to address anticipated Phoenix Project sewer system needs;  Based on Conclusions 1 and 2 above, we are of the opinion that the financial projections presented herein address the Phoenix Project’s ability to meet its ongoing obligations with regard to:  Operating and maintenance expenses, including maintenance of system components; and  Provision for key financial policies, including: o Over time achieving and maintenance of at least 90 days of operating reserve balances.  The proposed rates presented herein are in conformance with industry standard rate‐making practices, Proposition 218 and/or the City’s rate policies with respect to:  The fair and equitable recovery of costs through Phoenix Project sewer rates; and  Generation of sufficient revenue to recover system revenue requirements and reserve requirements. 5.2 Recommendations  It is recommended that the City implement the proposed rates and charges presented in this Report for FY 2020‐21.  It is recommended that the City update the revenue sufficiency analysis portion of this study each year to ensure projected revenue continues to be sufficient to fund projected expenses going forward as assumptions made during this analysis may change and have a material impact upon the analysis. 14 | P a g e Page 23 of 50 APPENDIX A Page 24 of 50  City of Twentynine Palms Projected Operating Results - Sewer System Fiscal Years 2021 - 2025 Line No. Description 2021 2022 2023 2024 2025 Sources of Funds 1 Beginning-of-Year Cash $0 $2,658 $3,815 $5,202 $1,551 Operating Revenues 2 Operating Revenue $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 3 Other Revenues - - - - - 4 Total Operating Revenues $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 Non-Operating Revenue 5 Interest Income - - - - - 6 Total Non-Operating Revenue $ - $ - $ - $ - $ - 7 Total Operating Revenues $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 Operating Expenses 8 Services and Supplies $ 27,342 $ 78,843 $ 111,168 $ 153,918 $ 158,536 9 Capital Outlay - - 14,444 14,733 15,028 10 Total Operating Expenses $ 27,342 $ 78,843 $ 125,612 $ 168,651 $ 173,564 11 Net Result of Operations $ 2,658 $ 1,157 $ 1,388 $ (3,651) $ 6,436 Non-Operating Expenses 12 Capital Improvements $ - $ - $ - $ - $ - 13 Existing Debt Service - - - - - 14 Other Miscellaneous - - - - - 15 Total Non-Operating Expenses $ - $ - $ - $ - $ - 16 Net Available After Operations $ 2,658 $ 1,157 $ 1,388 $ (3,651) $ 6,436 Other Uses New Debt Service $ - $ - $ - $ - $ - Additional Capital Improvements - - - - - 17 Total Other Uses $ - $ - $ - $ - $ - 18 Net Available After Other Uses $ 2,658 $ 1,157 $ 1,388 $ (3,651) $ 6,436 19 End-of-Year Cash $2,658 $3,815 $5,202 $1,551 $7,988 20 Target Cash $6,742 $19,441 $30,973 $41,585 $42,796 Page 25 of 50 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-1  City of Twentynine Palms Revenues - Sewer System Sewer Financial Model Line No. Description 2021 2022 2023 2024 2025 Operating Revenues Sewer 1 Operating Revenue $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 2 Other Revenues - - - - - 3 Total Operating Revenues $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 Non-Operating Revenue 4 Non-Utility Income $ - $ - $ - $ - $ - 5 Interest Income - - - - - 6 Total Non-Operating Revenue $ - $ - $ - $ - $ - 7 Total Revenues $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 OPERATING REVENUES 8 Rate Revenue $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 9 Growth 0.00% 0.00% 0.00% 0.00% 0.00% Revenues Adjusted for Growth $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 10 Revenue Increase 0.0% 0.0% 0.0% 0.0% 0.0% 11 Percent of Year w/Rate Increase 100.0% 100.0% 100.0% 100.0% 100.0% 12 Revenues under old rates $ - $ - $ - $ - $ - 13 Revenues under new rates 30,000 80,000 127,000 165,000 180,000 14 Total Charges for Services - After Revenue Increase $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 Other Sewer Revenue 15 Sewer Connection - - - - - 16 Miscellaneous Revenue - - - - - Interest Income 17 Interest Income - - - - - 18 Total Operating Revenues $ 30,000 $ 80,000 $ 127,000 $ 165,000 $ 180,000 Page 26 of 50 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-2  City of Twentynine Palms Estimated & Projected Uses of Funds - Sewer System Sewer Financial Model Line No. Description 2021 2022 2023 2024 2025 OPERATING EXPENSES 1 Services and Supplies $27,342 $78,843 $111,168 $153,918 $158,536 2 Capital Outlay - - 14,444 14,733 15,028 3 Total OPERATING EXPENSES $ 27,342 $ 78,843 $ 125,612 $ 168,651 $ 173,564 OPERATING EXPENSES Services and Supplies 4 Lift Station $0 $0 $0 $0 $0 5 Effluent Sampling 4,167 12,500 12,875 13,261 13,659 6 Building/Yard Maintaince - - - - - 7 Plant Washdown and Field Work - - - - - 8 Emergency Call Outs - As Needed 5,000 15,000 15,450 15,914 16,391 9 State Reporting - - - - - 10 Backup Genset Service - - - - - 11 Insurance and Annual Permit - - - - - 12 Effluent Resue/ Sub-Surface Drip Sys. - - - - - 13 Sluge Disposal - - - - - 14 Oversight of Package Plant - - - - - 15 Water Quality Control Permit - - - - - 16 General Liability - - - - - 17 Electricity - Not in first phase - - - - - 18 RWCQCB Permitting 2,300 2,369 2,440 2,513 2,589 19 Annual Insurance - - - - - 20 Monthly Inspection 7,548 22,644 23,323 24,023 24,744 21 Quarterly Inspection 1,347 5,388 5,550 5,716 5,888 22 Annual Maintenance & Inspection 6,981 20,942 51,530 92,491 95,266 Capital Outlay 23 Process Blowers - - 1,428 1,457 1,486 24 Blower Motors - - 326 333 340 25 Lift Station Pumps - - 612 624 637 26 EQ Blowers - - 92 94 96 27 Mixers - - 339 345 352 28 Surge Pumps - - 82 83 85 29 Additional Mixers - - 592 603 616 30 Internal Air Mechanism - - 92 94 96 31 Epoxy - - 184 187 191 32 Main Process Plant - - 10,026 10,226 10,431 33 Yard Piping and Hose Bibs - - 408 416 424 34 Electrical System - - 265 271 276 35 Capital Replacement - - - - - TOTAL OPERATING EXPENSES $ 27,342 $ 78,843 $ 125,612 $ 168,651 $ 173,564 Page 27 of 50 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-3  2021 2022 2023 2024 2025 Total EDUs 29 29 55 96 96 Increase in EDUs 0 0 26 41 0 Growth in Customers and Flow: Rate Revenue 1 RR1 - Growth 0.00% 0.00% 89.01% 74.26% 0.00% Page 28 of 50 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-4  Wastewater Demand by Land Use - Flow Flow Generation Building Sqft Land Use Type (GPD) Total Flow % Factors % Residential Low/Mod Housing 7,100 42% 42.72% Public Building Public Space 1,500 9% 19.07% Kitchen Space 3,000 18% 3.81% Nonresidential - Commercial Fronting Highway 62 South Vacant/Hair Salon 0.00% 3.20% Video Rental 0.00% 1.10% Curves Fitness 0.00% 1.37% Hair Salon 0.00% 1.14% Church 0.00% 1.60% Restaurant/Nail Salon 0.00% 3.94% Restaurant /Store 832 4.98% 2.85% Hair/Nail Salon 156 0.93% 1.37% Restaurant 664 3.97% 1.79% Pool & Spa Supplies - 0.00% 0.00% Papa Johns Pizza 318 1.90% 0.84% Real Estate Office 27 0.16% 2.67% Nail Salon/Tattoo 379 2.27% 2.06% Stores 43 0.26% 2.06% Restaurant 705 4.22% 0.55% Furniture Store 157 0.94% 4.04% Restaurant 937 5.60% 1.63% Store 12 0.07% 0.99% Bar 883 5.28% 1.18% Totals GPD per EDU EDUs Total Average Gallons Per Day Residential/Fair Share 7,100 175 40.57 Total Average Gallons Per Day - Public Building/Fair Share 4,500 175 25.71 Total Average Gallons Per Day Non-Residential/Fair Share 5,112 175 29.21 Page 29 of 50 Grand Total 16,712 95 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-5  Metrics 2021 2022 2023 2024 2025 Charge per EDU Annual Revenue Requirement $30,000 $80,000 $127,000 $165,000 $180,000 Number of EDUs 29 29 55 96 96 Months Effective 4 12 12 12 12 Rate per EDU per Month $256.76 $228.23 $191.69 $142.92 $155.91 Annual Rate Subsidy 25,900 67,700 86,202 93,905 108,905 Revised Rate per EDU $35.09 $35.09 $61.58 $61.58 $61.58 Non-Residential and public building only through 2023, Residential beginning in 2024 Page 30 of 50 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-6  Nonresidential - Commercial Fronting Highway 62 South Flows (GPD) EDUs Rate/EDU/Month Monthly Charge Restaurant /Store 832 4.75 $35.09 $166.84 Hair/Nail Salon 156 0.89 35.09 31.23 Restaurant 664 3.79 35.09 133.14 Papa Johns Pizza 318 1.82 35.09 63.69 Real Estate Office 27 0.15 35.09 5.34 Nail Salon/Tattoo 379 2.17 35.09 76.02 Stores 43 0.25 35.09 8.63 Restaurant 705 4.03 35.09 141.36 Furniture Store 157 0.90 35.09 31.44 Restaurant 937 5.35 35.09 187.79 Store 12 0.07 35.09 2.47 Bar 883 5.05 35.09 177.06 Page 31 of 50 City of Twentynine Palms, CA Phoenix Project Financial Plan and rate Design A-7  27368 Via Industria, Suite 200 Temecula, California 92590‐4856 800.755.6864 | Fax: 888.326.6864 951.587.3500 | Fax: 951.587.3510 www.willdan.com Page 32 of 50  NOTICE TO PROPERTY OWNERS OF PUBLIC HEARING REGARDING PROPOSED SEWER RATES Hearing Date & Time: February 23rd, 2021 at 6:00 PM Hearing Location: City Hall Council Chambers 6136 Adobe Rd, Twentynine Palms, CA Why are you receiving this notice? The City of Twentynine Palms (“City”) is mailing this notice to you because you will be a City sewer customer or are the owner of record of a property that will receive City sewer service. This notice describes proposed City sewer rates and provides information about a Public Hearing to be held on February 23rd, 2021 at 6:00 p.m. in the City Hall Council Chambers, 6136 Adobe Rd, Twentynine Palms, CA 92277 regarding these proposed changes. What do sewer rates fund? The City is anticipated to provide sewer service to commercial customers in association with a new downtown mixed-use development served by a dedicated sewer treatment facility. Monthly sewer rates charged to system users (customers) are used to operate the sewer system and are used solely for this purpose. Sewer rate revenue provides funding for costs related to system operations and capital maintenance, as well as costs related to prudent long-term operational or financial management of the utility, such as maintaining adequate fund reserves. The proposed rates are based on a comprehensive rate study and financial plan. The City will annually review revenues and expenditures for the sewer fund to ensure that sufficient and appropriate revenues are collected to effectively provide for the short and long-term sewer service needs of the community. Why are rate increases needed? During the Fall and Winter of 2019 and Spring of 2020, an independent consultant conducted a financial rate study, which evaluated the financials of the proposed sewer utility, and the sewer rates that would be needed to provide for ongoing funding needs. The proposed rates have been calculated based on the City’s cost to provide sewer service to users. Required revenue for the sewer system is based on projected expenses for operations, capital maintenance, and maintenance of prudent financial reserves. Rates have been developed on a per equivalent dwelling unit (EDU) basis, where one EDU equates to 175 gallons of sewer discharge per day. The rate structure was designed so that each system user will be charged an amount that is proportional to the cost of serving that user based on their respective flows and which does not exceed the cost of serving that customer. A healthy reserve fund is critical to the ability of the City to serve its customers by smoothing out timing differences between the collection of revenue through rates and payment of necessary costs, and by providing funds to respond to unforeseen and unpredictable expenses associated with the sewer system. The reserve fund, like all elements of the sewer charges, may only be used to fund costs associated with the sewer system. New sewer rates In order to provide necessary funding for the sewer system, the City is proposing to implement new sewer rates in March of 2021. The proposed charges will go into effect and remain in effect until superseded by Council action. Page 33 of 50  Table 1 Proposed Sewer Rate Monthly Charge - $ Existing 19-20 Per Equivalent Dwelling Unit $0.00 $35.09 How do you file a protest or participate in the public hearing? The City will consider the new rate at a public hearing on Tuesday, February 23rd, 2020 at 6:00 p.m. in the City Hall Council Chambers, 6136 Adobe Rd, Twentynine Palms, CA 92277. You are invited to present oral or written testimony at the public hearing. Any owner or customer of record of a parcel subject to the proposed rates may submit a written protest against the proposed rate revisions. If written protests are filed for a majority of the affected parcels, the proposed rate revisions will not be adopted. A written protest must include the following to be counted: • A statement indicating that the identified property owner or customer of record is in opposition to the proposed rate changes; • The street address or Assessor's Parcel Number (APN) for the parcel(s) with respect to which the protest is made; • The name and signature of the owner or customer. Protests may be mailed to 6136 Adobe Rd, Twentynine Palms, CA 92277. Protests may also be delivered to the City Clerk at the Public Hearing. To be valid, a signed written protest must be received by the City Clerk before the conclusion of the Public Hearing. Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the City Clerk, that the enclosed protest is for the Public Hearing on the Proposed Rate Changes - Sewer Service Fees. The City Council will hear and consider all written and oral protests to the proposed rate changes at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, there will be no more written protests accepted and no more testimony taken, and the City Council will consider adoption of the proposed rates for sewer service described in this notice. If written protests as outlined above, are not presented by a majority of property owners or customers of record, the City Council will be authorized to implement the proposed rates. If adopted, the rates for sewer service will be in effect beginning May 2020. Page 34 of 50 Page 35 of 50  < !;D>0.EM ,;/M :=;5E=AM (0>E6.M ),;7M 5;M ,..=A/,;.0M I5E4M (+'M $B/0AM +&   +&MEE,.4:0;EM < %G:>ME40MD0>E6.ME,;7DM,;/ =BM>5EDM 51M;00/0/M ,;/M,DM A0@G6B0/M-JM(+' $A/0AM+&M  +&MEE,.4:0;EM < ,G8M028G0;EME=M,>>A=H0/MD6E0M1=AM/5D>=D,8 < !/0;E61JM ,;/M B0>=BEM ,;JM /016.50;.50DM I6E46;M E40M D0I0AM DJDE0:M E=M ,99=IM 1=A A0H60IM,;/ =AMA0>,6AD < %A0>,A0M;;G,9M'0>=BEM6;M,..=A/,;.0MI6E4M(+'M$A/0BM+&M  +&MEE,.4:0;EMM/=0DM;=EM5;.9G/0M !E0:MM A=G;/I,E0AM#=;5E=A6;3 < ;;G,9M =DEDM ,9D=M 5;.8G/0M E40M ,;;G,9M 100M 1=BM 5;.9GD5=;M 5;M E40M =; .,89 >A=3B,: DE5:,E0/M"G:>M(G:M=DEM;;G,9M#,6;E0;,;.0M,;/M!;D>0.E6=;M
?0AMK0,BM L    6;.9G/5;3M(($
DM,;/M,1F0AM4=GADMI6E4M M4=GAMA0D>=;D0ME5:0 < G88ME0,:M0:0A30;.JMB0D>=;D0M6DM.=H0B0/MG;/0BME46DM>A=>=D,9 M .EG,9M4=GAD I688M -0M .4,A30/M >0BM 0:0B30;.JM 5;.6/0;EM ,EM E40M =G;EJM =,B/M ,>>B=H0/ >B=/G.E5H09JM 4=GB8JM A,E0DM ,EM,;M=H0C5:0M 80H09 M )40M >A=/G.E5H0M 4=GA9JMB,E0 D.40/G80M5DM0;.8=D0/ M)40M9G:>MDG:M5;.8G/0D
",-=B D
*046.90 DM6;.8G/5;3M*,.E=BMEBG.7 DE6:,E0/M"G:>M(G:M=DEM;;G,9M:0A30;.JM'0D>=;D0M
?0AMK0,BM $',!''!3*(*&3-&&*.3 1)!3 ''-%3(+,3 (&&!',+3 &%.!35%-'. &%5 5
 
 5 5$&%.-5 0,.+"45%-(. &%5 5
   3 5*0+/+-5 %%0"5 %.%%5%5%-). &%5 5
   3 %5%%0""35 $+% -52 #"55+5-5 &%5.0"5&0+-5'+5.5'+&0/ 15 -5 $+%45-(&%-5 5
 
5 &0+"45+.5-0"5 3
  (,!3'3''-%3%'"%,(*3("3
30$%%3!3%-%,! 3"(*3!#3 $,$('%32!*3("3+!*/$! ;JM(,;6E,AJM(0I0AM$H0B19=IDM (($DMI598M.=:>8JMI5E4M(E,E0M+,E0BM'0D=GA.0DM =;EA=9M=,B/M (+'MA0@G6A0:0;EDM,;/MB0>=AE0/M,..=A/6;39JM (G-:5EE0/M-K (,;M0A;,A/5;<M<G;EK 0>,AE:0;EM<1M%G-85.M+<A7D (>0.5,8M5DEA5.EDM+,E0AM,;/M(,;5E,E5<;M5H5D5<; Page 36 of 50 Page 37 of 50 Page 38 of 50 Page 39 of 50 Page 40 of 50 Page 41 of 50 <o1.m_.m U:mo8? mamqmm _m:mmm« zn 3 Page 42 of 50  Page 43 of 50 _< Page 44 of 50 r11 3 2 m '1 Page 45 of 50 m.  Page 46 of 50 o:m_  Page 47 of 50 __< Page 48 of 50  STAFF REPORT TO: City Council FROM: City Manager FOR MEETING: Jan 05 2021 SUBJECT: City Council Regional Organizational Assignments. RECOMMENDATION: The City Council review Council assignments for Regional Organizations and make appointments as appropriate. ORDER OF PROCEDURE: ATTACHMENTS: Request Staff Report (City Manager Presenting) Council Questions of Staff • Council Reorganizational Council Discussion Assigments 2020 Motion/Second Discussion of Motion Call the Question (Roll Call Vote) BACKGROUND: Members of the City Council are assigned to represent the City on various public agencies as board members, members of committees, or delegates. Council action is required to appoint members to these organizations. The amount of required participation varies depending on the assignment. Although attendance is not always convenient, it is important that the City have continuing representation on these boards and committees because much of the work affects the City fiscally and otherwise. As a consequence, most of the appointments have an alternate delegate who attends if the primary representative is not available. Due to the value of networking and establishing alliances, which can positively affect the City's ability to obtain grants and other revenues, long-term (multi-year) participation in these positions can be beneficial. ALTERNATIVES: N/A FISCAL IMPACT: N/A Page 49 of 50  COUNCIL ORGANIZATIONAL ASSIGNMENTS 2020 Council Officers Mayor Joel A. Klink — Mayor Pro Tem Daniel L. Mintz Sr. — San Bernardino County Transportation Authority (SBCTA) Meets 15‘Wednesday at 10:00 a.m. in San Bernardino Council Representative: Joel Klink Alternate: Daniel L. Mintz, Sr. SBCTA Measure I Committee Meets 3rd Friday at 9:30 a.m. in Vlctorville Council Representative: Joel Klink Alternate: Daniel L. Mintz, Sr. DesertIMountain Division of the League of California Cities Meets quarterly on 4th Friday at 10 a.m. to 2 p.m. at various locations Council Representative: Daniel L. Mintz, Sr. Alternate: McArthur Wright Morongo Basin Transit Authority (MBTA) Meets 3rd Thursday at 4:30 p.m. in Joshua Tree Council Representative: Karmolette O'Gilvie Council Representative: McArthur Wright Alternate: Daniel L. Mintz, Sr. San Bernardino County Solid Waste Task Force (2x/year) Mojave Desert/Mountain Recycling Authority Meets quarterly on 2nd Thursday at 10 a.m. in Victorville Council Representative: McArthur Wright Alternate: Steven Bilderain Mojave Desert Air Quality Management District (MDAQMD) Meets 4th Monday at 10:00 a.m. in Victorville Council Representative: Daniel L. Mintz, Sr. Alternate: Steven Bilderain These entities meet quarterly, or on call of the chairperson. Mojave Desert Air Quality Management District (MDA QMD) The MDAQMD is charged with oversight of airquality issues. Meetings are held monthly or more often depending on business before the District. Subcommittee of City Council: Thefollowing are assignments onthe subcommittees, which are formed by the City Council via appointment of the Mayor. They meet infrequently butas needed. Economic Development Subcommittee Personnel Subcommittee Community Block Grant (CDBG) Daniel L. Mintz Sr. Daniel L. Mintz, Sr. Karmolette O'Gilvie McArthur Wright Joel A. Klink Steven Bilderain Project Phoenix Legislative B"d_9°t 3"?‘Audit Dame‘ l-- Mmtzi3’- Joel Klink Steven Bilderain McArthur Wright Karmolette O’Gilvie Steve“ Bilderain Page 50 of 50