Waterford City Council Regular Meeting – June 18, 2015 - 6:30 Pm

Home , Tony Marshall (actor)

AGENDA WATERFORD CITY COUNCIL - REGULAR MEETING WATERFORD CITY HALL, CITY COUNCIL CHAMBERS 101 “E” STREET, WATERFORD, CA

WATERFORD CITY COUNCIL REGULAR MEETING – JUNE 18, 2015 - 6:30 PM

CALL TO ORDER: Mayor Van Winkle FLAG SALUTE: Mayor Van Winkle INVOCATION: Greg Pace ROLL CALL: Mayor: Michael Van Winkle Vice Mayor: Jose Aldaco Council Members: Ken Krause, Joshua Whitfield, John Gothan

ADOPTION OF AGENDA: A member of the City Council motions to accept the items on the agenda for consideration as presented, or motions for any additions, including emergency items, or items pulled from consideration.

CONFLICT OF INTEREST DECLARATION: Declaration by City Council members who may have a direct Conflict of Interest on any scheduled agenda item to be considered.

ADOPTION OF CONSENT CALENDAR: All Matters listed under the Consent Calendar are considered routine by the Council and will be adopted by one action of the Council unless any Council Member desires to discuss any item or items separately. In that event, the Mayor will remove that item from the Consent Calendar and action will be considered separately.

1. CONSENT CALENDAR

1a: Waive Readings - All readings of Ordinances and Resolutions, except by title, are waived 1b: RESOLUTION 2015-45: Warrant Register 1c: Minutes of the Regular City Council Meeting held on June 4, 2015 1d: Amendment to Professional Services Contract for Engineering Services 1e: Approve Pay Schedules for Fiscal Years 11-12, 12-13, 13-14, 14-15 and 15-16

2. PRESENTATIONS

2a: Introduction: New Employee – Kyle Perry

2b: Howard Training Center Update – Executive Director Carla Strong

3. COMMUNICATIONS FROM THE AUDIENCE

This is the portion of the meeting specifically set aside to invite public comments regarding any matters not appearing on the agenda and within the jurisdiction of the City Council or the Successor Agency. Individual audience participation is limited to a maximum of 5 minutes and you will be asked to state your name and city of residence. Please complete and submit a speaker card to the City Clerk.

4. PUBLIC HEARING

4a: SECOND READING AND ADOPTION: ORDINANCE 2015-03: Amending WMC Chapter 10.24, “Speed Limits”, Section 10.24.010, “Decrease of State Law Max Speed”

4b: SECOND READING AND ADOPTION: ORDINANCE 2015-04: Repealing WMC 4.00.070 and Adding Chapter 4.00, “Regulations for the Control of Backflow Prevention Devices and Cross- Connections”

4c: FIRST READING AND INTRODUCTION: ORDINANCE 2015-05: Amending WMC 15.42 “Public Nuisance”, Section 15.42.120, “Boarding Building – Defined”

5. GENERAL BUSINESS

5a: RESOLUTION 2015-49: Approve the Fiscal Year 2015-2016 Operational Budget

5b: RESOLUTION 2015-52: Approve a Resolution of the City Council of the City of Waterford Authorizing Execution and Delivery of an Installment Purchase Agreement to Provide Funds in the Maximum Principal amount of $3,100,000 to Finance the Acquisition of Domestic Water Systems and Additional System Improvements, and Approving Related Document and Actions.

5c: RESOLUTION 2015-53: Approve a Short Term Operations and Maintenance Services for the Waterford and Hickman Water Systems Agreement with City of Waterford

5d: RESOLUTION 2015-48: Authorize San Joaquin Valley Air Pollution Control District Grant Submittal of $16,802.90 for GEM EM 1400 LSV Electric Vehicle

5e: RESOLUTION 2015-50: Approve the 2015-2016 Appropriations Limit

5f: RESOLUTION 2015-51: Authorize the Advertisement of Bids for the Bentley/Tim Bell Road Overlay Project

6. SUCCESSOR AGENCY TO THE FORMER WATERFORD REDEVELOPMENT AGENCY

7. INFORMATIONAL ITEMS

7a: Business License Reports – May 2015 7b: Building Permit Reports – May 2015 7c: Parks and Recreation Minutes April 14, 2015 7d: Community Calendar – June and July 2015

8. STAFF/COUNCIL COMMENTS AND MEETING REPORTS

8a: City Staff 8b: City Council

9. ADJOURNMENT / RECESS

Recess to Closed Session. Reconvene to regular City Council meeting and report on any actions taken. Adjourn regular meeting.

10. CLOSED SESSION

Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day.

______Lori Martin, City Clerk

NOTICE

REPORTS: Copies of the staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the office of the City Clerk. Any writings or documents provided to a majority of the City Council regarding any item on this agenda (other than writings legally exempt from public disclosure) will be made available for public inspection at the front counter at City Hall during normal business hours.

COMMUNICATIONS FROM THE AUDIENCE: If you wish to address the City Council or the Successor Agency on any item not on the printed agenda, prior to the start of the meeting, or prior to addressing the City Council or the Successor Agency, complete and submit a speaker card and deliver it to the City Clerk. (Please note, speaker cards are not required, however completing a speaker card enables staff to better follow up with you later, if necessary and attribute your comments to you in the minutes of the meeting). When the Mayor calls for “Communications from the Audience,” stand or raise your hand and the Mayor will ask you to approach the podium and state your name and city of residence. It is the policy of the City Council that they will not act on any matter not appearing on the posted agenda. The purpose of the discussion is to permit a member of the public to raise an issue or problem and to permit the City Council to ask questions for clarification of the issue or problem, provide information to the public, provide direction of the City Staff, or schedule the matter for a future meeting. Please hold all comments to five (5) minutes.

PUBLIC COMMENTS RELATED TO AN ITEM ON THE PRINTED AGENDA: Members of the public are entitled to directly address the City Council or the Successor Agency concerning any item that is described on the agenda during consideration of that item. If during a public hearing, the Mayor will direct when the hearing has opened for public comment. If you wish to address the City Council or the Successor Agency on any item listed on this agenda, please complete a speaker card and deliver it to the City Clerk prior to discussion of that item. (Please note, speaker cards are not required, however completing a speaker card enables staff to better follow up with you later, if necessary and attribute your comments to you in the minutes of the meeting.) When your name is called proceed to the podium and state your name and city of residence.

WRITTEN MATERIAL INTRODUCED INTO THE RECORD: Citizens wishing to introduce written material into the record at the public hearing on any item are requested to provide a copy of the written material to the City Clerk prior to the public hearing date and/or prior to the opening of the public hearing so that the material may be distributed to the City Council prior to the public hearing.

NOTICE REGARDING CHALLENGES TO DECISIONS: Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.

LIVE AND ON-DEMAND VIDEO RECORDINGS OF THE CITY COUNCIL/SUCCESSOR AGENCY: The meeting of the Waterford City Council/Successor Agency can be watched live and on-demand from the City’s website at www.cityofwaterford.org.

AMERICANS WITH DISABILITIES ACT (ADA): In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (209) 874-2328 ext. 109 or email: [email protected]. Requests must be made as early as possible and at least two-full business days before the start of the meeting.

General Information: The Waterford City Council meets on the 1st and 3rd Thursday’s of each month at 6:30PM., unless otherwise noticed.

Council Agenda’s: Copies of City Council Agenda and agenda related writings or documents will be made available for public inspection at the front counter at City Hall located at 101 “E” Street, Waterford, CA 72 hours prior to the meeting, or at the time of the scheduled meeting.

DATE & TIME OF POSTING

Council Meeting Date: 06/18 /15

Post Date: 06/12/15 Time: at or before 5:00PM

Verified by: Patricia Krause Title: Deputy City Clerk Consent 1a June 18, 2015 Patricia Krause, Deputy City Clerk City Council Staff Report

Waive Readings

SUMMARY: N/A

FISCAL IMPACT: N/A

ANALYSIS: All readings of Ordinances and Resolutions, except by title, are waived.

ATTACHMENTS: N/A Consent 1b June 18, 2015 Lori Martin, City Clerk City Council Staff Report

Warrant Register

SUMMARY: N/A

FISCAL IMPACT: N/A

ANALYSIS: Approve Warrant Register

ATTACHMENTS:  Resolution #2015-45  Check Register Report

WATERFORD CITY COUNCIL

RESOLUTION # 2015-45

DATE TOTALS______

PAYROLL 06/11/2015 $26,650.84

ACCOUNTS PAYABLE 06/02/2015 $108,404.58

06/08/2015 $19,354.26

06/10/2015 $13,808.23

06/11/2015 $2,254.01

06/12/2015 $12,284.85

TOTAL $182,756.77

The City of Waterford does hereby reserve, determine and order as follows:

SECTION 1: That in accordance with Section 37202 of the Government Code that the City Manager hereby certifies to the accuracy of the following demands and the availability of funds for the payment thereof.

SECTION 2: That the following claims and demands are subject to audit as required by law, and that the same are hereby set forth.

Passed and adopted by the City Council of Waterford at a regular meeting held on June 18, 2015 By the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

______

Lori Martin, MMC, City Clerk Michael Van Winkle, Mayor

Consent 1c June 18, 2015 Lori Martin, City Clerk City Council Staff Report

City Council Regular Meeting Minutes – June 4, 2015

SUMMARY: N/A

FISCAL IMPACT: N/A

ANALYSIS: Approve Minutes of the City Council Goal Setting Workshop and Regular City Council Meeting held on June 4, 2015.

ATTACHMENTS:  City Council Goal Setting Workshop and Regular Meeting Minutes of June 4, 2015

MINUTES WATERFORD CITY COUNCIL - REGULAR MEETING WATERFORD CITY HALL, CITY COUNCIL CHAMBERS 101 “E” STREET, WATERFORD, CA

CITY COUNCIL REGULAR MEETING – JUNE 4, 2015 – 6:30 PM

MEETING CALLED TO ORDER BY MAYOR VAN WINKLE AT 6:29 PM

FLAG SALUTE: Led by Mayor Van Winkle

INVOCATION: Pastor Dave McGaffee, Assembly of God

ROLL CALL: Vice-Mayor - Aldaco: Absent Mayor - Van Winkle: Absent Council Member - Krause: Present Council Member - Whitfield: Present Council Member - Gothan: Present

STAFF PRESENT: Tim Ogden, City Manager Lori Martin, City Clerk Richard Marchini, Deputy City Attorney Matt Erickson, Public Works Director Mike Radford, Police Chief

Motion by CM/Krause, seconded by CM/Gothan to adopt the agenda.

Council Member - Krause: Motion Council Member - Gothan: 2nd Vice-Mayor - Aldaco: Absent Mayor - Van Winkle: Absent Council Member - Krause: Approve Council Member - Whitfield: Approve Council Member - Gothan: Approve

Motion passed.

CONFLICT OF INTEREST DECLARATION: Declaration by City Council members who may have a direct Conflict of Interest on any scheduled agenda item to be considered. None.

Motion by CM/Krause, seconded by CM/Gothan to adopt the consent calendar.

Motion passed.

1. CONSENT CALENDAR

1a: Waive Readings - All readings of Ordinances and Resolutions, except by title, are waived 1b: RESOLUTION 2015-42: Warrant Register 1c: Minutes of the Regular City Council Meeting held on May 21, 2015 1d: RESOLUTION 2015-45: Approving the Annual HOME Funding Allocation Agreement for FY 2015-16

2. PRESENTATIONS

2a: Stanislaus County Transit Presentation: Eunice Lovi, Stanislaus County Transit Manager gave a presentation which identified transportation improvements and the restructure of current fares for FY 15-16.

2b: Proclaiming the Month of June as Disability Awareness Month: Mayor Pro Tem Whitfield read aloud the Proclamation designating the month of June as Disability Month.

3. COMMUNICATIONS FROM THE AUDIENCE

. 4. PUBLIC HEARING

Members of the public may comment when the item is opened for public hearing.

4a: FIRST READING AND INTRODUCTION: ORDINANCE 2015-03: Amending WMC Chapter 10.24, “Speed Limits”, Section 10.24.010, “Decrease of State Law Max Speed”

Public Works Director Erickson gave an oral staff report and identified the changes to speed limits on certain streets and roadways in the city limits.

Mayor Pro Tem Whitfield opened the public hearing at 6:48 PM.

Waterford Resident, Claire Warthan spoke in opposition of the 45 mph speed limit and pointed out a dangerous intersection on SR 132 that she has concerns with.

Mayor Pro Tem Whitfield closed the Public Hearing at 6:50 PM with no other comments offered from the public.

Motion by CM/Krause, seconded by CM/Gothan to approve the First Reading and Introduction by Title Only of Ordinance 2015-03.

Motion passed.

4b: FIRST READING AND INTRODUCTION: ORDINANCE 2015-04: Repealing WMC 4.00.070 and Adding Chapter 4.00, “Regulations for the Control of Backflow Prevention Devices and Cross- Connections”

Public Works Director Erickson gave an oral staff report.

Mayor Pro Tem Whitfield opened the public hearing at 6:55 PM. Mayor Pro Tem Whitfield closed the public hearing at 6:55 PM with no comments offered from the public.

Motion by CM/Gothan, seconded by CM/Krause to approve the First Reading and Introduction by Title Only of Ordinance 2015-04.

Council Member - Gothan: Motion Council Member - Krause: 2nd Vice-Mayor - Aldaco: Absent Mayor - Van Winkle: Absent Council Member - Krause: Approve Council Member - Whitfield: Approve Council Member - Gothan: Approve

Motion passed.

5. GENERAL BUSINESS

5a: RESOLUTION 2015-43: Intent to Levy and Confirming the Engineer’s Report for the FY 2015-16 Waterford Lighting Assessment District (LAD):

City Clerk Martin gave an oral staff report.

Motion by CM/Gothan, seconded by CM/Krause, to adopt Resolution 2015-43 and set a public hearing date for July 2, 2015 to confirm the assessments and order the levy.

Motion passed.

5b: RESOLUTION 2015-44: Intent to Levy and Confirming the Engineer’s Report for the FY 2015-16 Waterford Landscape & Lighting Assessment District (LLAD)

City Clerk Martin gave an oral staff report.

Motion by CM/Gothan, seconded by CM/Krause, to adopt Resolution 2015-44 and set a public hearing date for July 2, 2015 to confirm the assessments and order the levy.

Motion passed.

5c: DISCUSSION: La Gallina Senior Residential Housing Discussion:

City Manager Ogden asked Council for their vision and ideas of the building style for an affordable senior living complex at the triangle park parcel.

Cornerstone Construction CEO Jeff Sales participated in the question/answer period to obtain understanding of the type of building City Council envisions.

Waterford resident, Claire Warthan inquired if the Council envisioned kitchens in each unit or a community dining room and inquired who would be maintaining the property, also inquired if a nurse would be available with easy access to emergency services.

6. ITEMS FOR CONSIDERATION BY THE CITY COUNCIL ACTING SOLELY AS SUCCESSOR AGENCY TO THE FORMER WATERFORD REDEVELOPMENT AGENCY

None.

7. INFORMATIONAL ITEMS

7a: Police Calls for Service Summary Reports 7b: Waste Management CPI Adjustment for FY 2015-16 7c: Community Calendar – June and July 2015

8. 9. STAFF/COUNCIL COMMENTS AND MEETING REPORTS

8a: City Staff Comments (Information Only – No Action) 8b: City Council Comments (Information Only – No Action)

9. ADJOURNMENT / RECESS

Motion to adjourn by CM/Gothan, seconded by CM/Krause to adjourn the City Council meeting at 7:38 PM.

Motion passed.

10. CITY ATTORNEY REPORT FROM CLOSED SESSION

None.

PASSED AND ADOPTED by the Waterford City Council at a regular meeting held on June 18, 2015, by the following vote:

AYES: NOES: ABSTAIN: ABSENT:

CITY OF WATERFORD

Michael Van Winkle, Mayor

ATTEST:

Lori Martin, MMC, City Clerk Consent 1d June 18, 2015 Matt Erickson, Public Works Director City Council Staff Report

Amendment to Professional Services Contract for Engineering Services- MCR Engineering

SUMMARY: The City Council will consider approving an amendment to the current professional services contract for city engineering services with MCR Engineering.

FISCAL IMPACT: None

ANALYSIS: The California Department of Transportation (CALTRANS) recently reviewed our current professional services contract for city engineering services with MCR Engineering. As a result of that review, city staff and our city engineer were notified that the necessary and required information for addressing Disadvantaged Business Enterprise (DBE) participation was missing. After determining what was missing, the necessary wording was determined and ultimately included at the end of the contract under #34 Disadvantaged Business Enterprise (DBE) Participation (see attached).

Caltrans staff has said that the proposed amendment will be sufficient and the City Engineer concurs with the amendment. City staff recommends approval.

ATTACHMENTS:  Resolution 2015-46  Professional Services Contract MCR Engineering

WATERFORD CITY COUNCIL RESOLUTON # 2015-46

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD APPROVING AN AMENDMENT TO THE CONTRACT WITH MCR CONSULTING FOR PROFESSIONAL SERVICES AND REPEALING THE PRIOR AGREEMENT ADOPTED BY CITY COUNCIL RESOLUTION 2012-97

WHEREAS, the City of Waterford, (hereinafter "CITY") and MCR Consulting, (hereinafter, "CONTRACTOR"), are desirous of entering into an agreement for services to be performed by CONTRACTOR; and

WHEREAS, the City Engineer Agreement adopted by Resolution #2012-97 on September 6, 2012 is hereby repealed.

WHEREAS, the City Engineer Agreement is amended to include Item Number 34, “A-K” related to Disadvantaged Business Enterprises (DBE) Participation; and,

WHEREAS, CONTRACTOR and CITY agree to the terms contained in the attached Contract, in the form attached hereto as Exhibit "A"; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATERFORD DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council approves the attached Agreement with CONTRACTOR, and authorizes the City Manager of the City of Waterford to execute same on their behalf.

The foregoing Resolution was passed and adopted by the City Council of the City of Waterford, County of Stanislaus, State of California, at a regular meeting thereof held on the 18th day of June, 2015, by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

City of Waterford,

Michael Van Winkle, Mayor

ATTEST: APPROVED AS TO FORM:

Lori Martin, City Clerk Corbett J. Browning City Attorney

CITY OF WATERFORD CITY ENGINEER AGREEMENT

THIS AGREEMENT, by and between the CITY OF WATERFORD, a municipal corporation, hereinafter referred to as "City", and TONY MARSHALL, of MCR ENGINEERING, a partnership, ("MCR"), hereinafter referred to as "Engineer", provides for TONY MARSHALL to be appointed city engineer for the City of Waterford in accordance with the authority of Government Code Sections 37103 and 53060 for the City.

The City specifically designates Tony Marshall, of MCR Engineering, License Number C51015, as the City Engineer.

The engineer and other engineers at MCR ENGINEERING are duly licensed under the laws of the State of California and are fully qualified to perform the duties of City Engineer and to provide the services contemplated by this Agreement.

The parties do mutually agree to be bound and obligated to terms and conditions as follows:

1. Term. The term for performance of the services hereunder by the Engineer as City Engineer will commence September 1, 2012. The Agreement shall be for a (5) five year period unless either party gives written notice to the other of its intent to renegotiate the terms of the Agreement. Such notice must be given not less than three (3) months before the end of the pending term.

2. Termination of the Agreement. This Agreement may be canceled by either party hereto by the giving of thirty (30) days written notice to the other party of their wishes to terminate the Agreement.

3. Scope of Services. The Engineer shall perform the duties of the office of the City Engineer of the City and shall use his best effort to provide engineering services in a competent and professional manner. The Engineer shall provide all engineering services to the City of the kind and nature typically provided by an in-house City Engineer's Office to a municipality unless specifically exempted by this Agreement. Engineer shall attend City Council meetings when requested at no charge to the City.

4. Time and Performance. The services performed hereunder by Engineer shall be undertaken and completed in such sequence as to insure their expeditious completion and to best carry out the purpose of the Agreement.

5. Compensation. City shall pay Engineer on an hourly rate basis as prescribed by the Rate Schedule in Exhibit “B” for performance of engineering services. Engineering services include those services listed on Exhibit "A". Engineer shall attend City Council meetings when requested at no charge to the City. For all other engineering services not listed in Exhibit "A", the City agrees to pay the Engineer at the rates as set forth in Exhibit "B". In addition to paying the engineering fees as set forth in Exhibit "B", City shall reimburse the Engineer for customary and reasonable costs and expenses incurred by the Engineer as set forth in Exhibit "B".

6. Billing Procedures and Monthly Statements. The Engineer shall submit to the City, within 30 days after the end of each calendar month, an itemized statement of the professional services by project or funding source provided in the time expended providing those services in the form customarily submitted by the Engineer to clients which are billed on an hourly basis. The Engineer shall include in the monthly statement cost and expense items, and project details. The parties acknowledge that the payment of all monthly statements is expected to be made within 30 days of the billing date.

7. Work Performed. No work shall be performed by Engineer except general engineering and related services, unless directed to do so by the City Manager or the City Council. Engineer agrees that an engineer of MCR Engineering (MCR), must be already versed in the facets of the Grant Funding process for public works projects for a General Law City, federal, state and local. Engineer, must already be familiar with the CAL TRANS process regarding acquiring encroachment permits and construction by the City in State Rights of Ways.

8. Additional Services. Additional services beyond those set forth in Exhibit “A” and subject to the engineer rates set forth in Exhibit "B" include, but are not limited to, the following areas: a. Planning; b. Administration; c. Construction Management; d. Surveying.

9. Cost Principles. MCR agrees that the Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31,000 et seq., shall be used to determine the allowability of cost individual items.

MCR also agrees to comply with federal procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.

Any costs for which payment has been made to MCR that are determined by subsequent audit to be unallowable under 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31.000 et seq., are subject to repayment by MCR to City.

Subcontracts in excess of $25,000.00 shall contain this provision.

10. Amendments. This Agreement may be amended at any time by mutual written agreement of the parties hereto.

11. Return of File and Client Property. After Engineer's services are completed, Engineer will, upon City's request in writing, deliver the file(s) to the City, along with any property of the City in Engineer's possession. City's file(s) and property include correspondence, transcripts, engineering documents, exhibits, maps, and other items reasonably necessary to City's business and to its continued and future engineering service

2 needs, whether City has paid for them or not. City's file(s) and property include all work performed by the Engineer on behalf of the City or its continued engineering needs.

12. Retention of Records/Audit. For the purposes of determining compliance with Public Contract Code 10115, et seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq., when applicable and other matters connected with the performance of the contract pursuant to Government Code 8546.7; MCR, subcontractors, and City shall maintain all books, documents, papers, accounting records, and other evidence pertaining to the performance of the contract, including but not limited to, the costs of administering the contract. All parties shall make such materials available at their respective offices at all reasonable times during the contract period and for three years from the date of final payment under the contact. The state, the State Auditor, any books, records, and documents of MCR that are pertinent to the contract for audit, examinations, excerpts, and transactions, and copies thereof shall be furnished if requested.

Subcontracts in excess of $25,000 shall contain this provision.

13. Independent Contract. Engineer is an independent contractor. Engineer is engaged on a part-time basis. Engineer is responsible for providing and maintaining its own staff, facilities, resources, and benefits. It is the Engineer's sole responsibility to assure the City that the Engineer's professional and administrative staff are adequately trained and the City shall have no obligation to pay for training of the Engineer or staff or the provisions of professional resources or material. The Engineer shall stand ready, willing and able to perform the duties for the City pursuant to this Agreement as called upon by the City Council or the City's designated representative. It is understood, however, that the Engineer is otherwise free to engage in the private practice of engineering so long as its practice does not put it in conflict with the City. In addition to the proscriptions regarding conflicts of interest imposed on the Engineer, the Engineer represents that no member of the firm shall appear before any council, commission, committee, or agency of the City for a period of six (6) months from the date of termination of the Engineer's employment as City Engineer for the purpose of representing any other client of the Engineer's before such City Council, commission, committee, or other agency.

14. Licensed Engineer. Tony Marshall is a licensed engineer in the State of California, License No. C51015. Any other employees or officers of Engineer providing services for the City of Waterford in connection with this Agreement shall be duly licensed under the laws of the State of California and shall be qualified to perform the duties and provide the services by this Agreement.

15. Assignment and Delegation. This Agreement contemplates the personal professional services of the Engineer and this Agreement, or any portion thereof, shall not be assigned or delegated without the prior written consent of the City.

16. Insurance. The Engineer represents and discloses to the City that he maintains professional, general liability insurance, including errors and omissions coverage, in excess of $1,000,000 per occurrence and $1,000,000 per policy term. The insurance maintenance by the Engineer shall be consistent with the requirements set forth in Exhibit

"C" attached hereto. The Engineer is required to provide the City with certificates of insurance certifying the aforementioned insurance coverage.

17. Inspection. Engineer shall furnish City with every reasonable opportunity for City to ascertain that the Services of Engineer are being performed in accordance with the requirements and intentions of this Agreement. All work done and all materials furnished, if any shall be subject to the Project Manager's inspection and approval. The inspection of such work shall not relieve Engineer of any of its obligations to fulfill the Agreement as prescribed.

Engineer and any subcontractor shall permit the City, the State, and the FHWA if federal participating funds are used in this contract; to review and inspect the project activities and files at all reasonable times during the performance period of this contract including review and inspection on a daily basis.

18. Conflict of Interest. A. Engineer covenants and represents that neither it, nor any officer or principal of its firm, has, or shall acquire any investment, income, business entity, interest in real property, or other interest, directly or indirectly, which would conflict in any manner with the interests of City hinder Engineer's performance of the Services. Engineer further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of City. Engineer agrees at all times to avoid conflicts of interest, or the appearance of any conflicts of interest in the performance of the Agreement.

B. Engineer is not a designated employee within the meaning of the Political Reform Act because Engineer:

1. Will conduct research and arrive at conclusions with respect to its rendition of information, advice, recommendation, or counsel independent of the control and direction of City or of any City official; and

2. Possesses no authority with respect to any City decision beyond the rendition of information, advice, recommendation, or counsel. (2 Cal. Code Regs. § 18700(a)(2).)

19. General. Engineer shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. Engineer represents and warrants to City that it has and shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance and approvals which are legally required for Engineer to practice its profession. Engineer shall maintain a City business license.

20. Prevailing Wage. Engineer and Engineer's sub-consultants (if any) shall, to the extent required by the California Labor Code, pay not less than the latest prevailing wage rates to workers and professionals as determined by the Director of Industrial Relations of the State of California pursuant to California Labor Code, Part 7, Chapter I, Article 2. Copies of the applicable wage determination are on file at City's Public Works Department.

21. Equal Employment Opportunity. Engineer is an equal opportunity employer and agrees to comply with all applicable state and federal regulations governing equal employment opportunity. Engineer will not discriminate against any employee or applicant for employment because of race, age, sex, creed, color, sexual orientation, marital status or national origin. Engineer will take affirmative action to ensure that applicants are treated during such employment without regard to race, age, sex, creed, color, sexual orientation, marital status, or national origin. Such action shall include, but shall not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; lay-offs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

22. Covenant Against Contingent Fees. The Engineer warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the engineer; to solicit or secure this agreement; and that he/she has not paid or agreed to pay any company or person other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration, contingent upon or resulting from the award, or formation of this agreement. For breach or violation of this warranty, the local agency shall have the right to annul this agreement without liability, or at its discretion; to deduct from the agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee.

23. Safety. A. Engineer shall comply with OSHA regulations applicable to Engineer regarding necessary safety equipment or procedures. The Engineer shall comply with safety instructions issued by City representatives. Engineer personnel shall wear hard hats and safety vests at all times while working on the construction project site.

B. Pursuant to the authority contained in Section 591 of the Vehicle Code, the City has determined that construction areas may be located in areas open to public traffic. The City shall comply with all of the requirements set forth in Divisions 11, 12, 13, 14, and 15 of the Vehicle Code. The Engineer shall take all reasonably necessary precautions for safe operation of its vehicles and the protection of the traveling public from injury and damage from such vehicles.

B. Any subcontract entered into as a result of this contract, shall contain all of the provisions of this Article.

24. Statement of Compliance. Engineer’s signature affixed herein, and dated, shall constitute a certification under penalty of perjury under the laws of the State of California that the Engineer has, unless exempt, complied with, the nondiscrimination program requirements of Government Code Section 12990 and Title 2, California Administrative Code, Section 8103.

25. Debarment and Suspension Certification. A. The Engineer's signature affixed herein, shall constitute a certification under penalty of perjury under the laws of the State of California, that the Engineer has complied with Title 49, Code of Federal Regulations, Part 29, Debarment and Suspension Certificate, which certifies that he/she or any person associated therewith in the capacity of owner, partner, director, officer, or manager, is not currently under suspension, debarment, voluntary exclusion, or

5 determination of ineligibility by any federal agency; has not been suspended, debarred, voluntarily excluded, or determined ineligible by any federal agency within the past three (3) years; does not have a proposed debarment pending; and has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years. Any exceptions to this certification must be disclosed to the City.

B. Exceptions will not necessarily result in denial of recommendation for award, but will be considered in determining Engineer responsibility. Disclosures must indicate to whom exceptions apply, initiating agency, and dates of action.

26. Rebates, Kickbacks, or Other Unlawful Consideration. The Engineer warrants that this contract was not obtained or secured through rebates kickbacks or other unlawful consideration, either promised or paid to any City employee. For breach or violation of this warranty, City shall have the right in its discretion; to terminate the contract without liability; to pay only for the value of the work actually performed; or to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.

27. Indemnity. MCR agrees to indemnify and hold harmless the City, its officers, agents and employees from any and all claims, demands, costs, or liability arising from or connected with the services provided hereunder due to negligent acts, errors, or omissions of MCR. The fees, incurred by City in defendant against claims ultimately determined to be due to negligent acts, errors, or omissions of the MCR.

28. Nonexclusive Agreement. The City may contract with other individuals or entities to provide engineering services. This is a nonexclusive agreement.

29. Notices. Notices regarding this Agreement shall be given to the parties at the following addresses:

City: City of Waterford P. O. Box 199 Waterford, CA 95386

Engineer: Tony Marshall MCR ENGINEERING 1242 Dupont Court Manteca, CA 95336

30. Severability. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances.

31. Entire Agreement. This Agreement contains the entire understanding of the parties regarding their rights and obligations hereunder. Any alleged oral representations or modifications concerning this Agreement and the subjects thereof shall have no force or

6 effect unless reduced to a writing signed by both parties. This Agreement supersedes any previous agreements between the parties for the provision of Interim City Engineer services.

32. Goodwill. The parties hereto agree that it is in their best interests to maintain harmonious relations in the fulfillment of the engineering requirements and that every effort will be made to provide timely, efficient and courteous service to those who require engineering services.

33. Captions. The captions of each paragraph in this Agreement are inserted as a matter of convenience and reference only, and in no way define, limit, or describe the scope or intent of the Agreement or its terms, or in any way affect it.

34. Disadvantaged Business Enterprises (DBE) Participation. A. This contract is subject to 49 CFR, Part 26 entitled “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs”. Consultants who obtain DBE participation on this contract will assist Caltrans in meeting its federally mandated statewide overall DBE goal. B. Participation by DBE consultant or sub-consultants shall be in accordance with information contained in the Consultant Proposal DBE Commitment (Exhibit 10- O1), or in the Consultant Contract DBE Information (Exhibit 10-O2) attached hereto and incorporated as part of the Contract. If a DBE sub-consultant is unable to perform, CONSULTANT must make a good faith effort to replace him/her with another DBE sub-consultant, if the goal is not otherwise met. C. DBEs and other small businesses, as defined in 49 CFR, Part 26 are encouraged to participate in the performance of contracts financed in whole or in part with federal funds. CONSULTANT or sub-consultant shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. CONSULTANT shall carry out applicable requirements of 49 CFR, Part 26 in the award and administration of US DOT-assisted agreements. Failure by CONSULTANT to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as LOCAL AGENCY deems appropriate. D. Any subcontract entered into as a result of this contract shall contain all of the provisions of this section. E. A DBE firm may be terminated only with prior written approval from LOCAL AGENCY and only for the reasons specified in 49 CFR 26.53(f). Prior to requesting LOCAL AGENCY consent for the termination, CONSULTANT must meet the procedural requirements specified in 49 CFR 26.53(f). F. A DBE performs a Commercially Useful Function (CUF) when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable) and paying for the

material itself. To determine whether a DBE is performing a CUF, evaluate the amount of work subcontracted, industry practices, whether the amount the firm is to be paid under the, contract is commensurate with the work it is actually performing, and other relevant factors. G. A DBE does not perform a CUF if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, examine similar transactions, particularly those in which DBEs do not participate. H. If a DBE does not perform or exercise responsibility for at least thirty percent (30%) of the total cost of its contract with its own work force, or the DBE subcontracts a greater portion of the work of the contract than would be expected on the basis of normal industry practice for the type of work involved, it will be presumed that it is not performing a CUF. I. CONSULTANT shall maintain records of materials purchased or supplied from all subcontracts entered into with certified DBEs. The records shall show the name and business address of each DBE or vendor and the total dollar amount actually paid each DBE or vendor, regardless of tier. The records shall show the date of payment and the total dollar figure paid to all firms. DBE prime consultants shall also show the date of work performed by their own forces along with the corresponding dollar value of the work. J. Upon completion of the Contract, a summary of these records shall be prepared and submitted on the form entitled, “Final Report-Utilization of Disadvantaged Business Enterprise (DBE), First-Tier Sub-consultants” CEM-2402F [Exhibit 17- F, of the LAPM], certified correct by CONSULTANT or CONSULTANT’s authorized representative and shall be furnished to the Contract Administrator with the final invoice. Failure to provide the summary of DBE payments with the final invoice will result in twenty-five percent (25%) of the dollar value of the invoice being withheld from payment until the form is submitted. The amount will be returned to CONSULTANT when a satisfactory “Final Report-Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Sub-consultants” is submitted to the Contract Administrator. K. If a DBE sub-consultant is decertified during the life of the contract, the decertified sub-consultant shall notify CONSULTANT in writing with the date of decertification. If a sub-consultant becomes a certified DBE during the life of the Contract, the sub-consultant shall notify CONSULTANT in writing with the date of certification. Any changes should be reported to LOCAL AGENCY’s Contract Administrator within 30 days.

IN WITNESS WHEREOF, the parties have hereunto set their hands this 18th day of June 2015.

"CITY" "ENGINEER"

CITY OF WATERFORD MCR ENGINEERING

By: ______Tim Ogden Tony Marshall City Manager Engineer

ATTEST:

______Lori Martin, City Clerk

APPROVED AS TO FORM:

______Corbett J. Browning, City Attorney

EXHIBIT "A"

CITY ENGINEER SERVICES – SCOPE OF WORK

MCR Engineering will provide on-call consulting City Engineer services to the City of Waterford to include (but not limited to) the following:

1. Review correspondence from state and federal permitting agencies that require response or action from City Engineer or Public Works staff.

2. Assist City staff in processing paperwork with StanCOG and Caltrans Local Assistance regarding state and federal grant programs such as CMAQ, RSTP, SR2S, TEA, HSIP, EEMP etc.

3. Provide input to City Staff and City Council regarding the City’s master plans, capital improvement program, and maintenance needs.

4. Prepare Plans, Specifications and Estimates for capital improvement projects. Assist City staff and City contract consultants in preparation of Request for Proposal packets.

5. Provide Bid Administration, Construction Management, and Inspection services for capital improvement projects.

6. Provide plan review and approval of all proposed private development projects within the City. This shall include reviewing and proposing conditions of approval for all entitlement projects (tentative maps, site plans, etc) and reviewing and approving all encroachment permits, parcel maps, final maps, improvement plans etc.

7. Attend City Council and/or Planning Commission meetings when requested.

8. Provide all other City Engineer functions as requested by City staff and council.

The services above will be provided on an “as needed” basis, as directed by the City Manager, and billed monthly at Time & Materials.

EXHIBIT "B"

JOB DESCRIPTION HOURLY RATE

Planning: PLANNER $ 100.00

Engineering: PRINCIPAL $ 125.00 CIVIL ENGINEER $ 110.00 PROJECT MANAGER $ 100.00 DESIGNER $ 90.00 SENIOR DRAFTER / CADD $ 80.00 DRAFTER / CADD $ 60.00 EXPERT WITNESS $ 200.00

Administration: CLERICAL $ 45.00 ADMINISTRATIVE ASSISTANT $ 55.00 OFFICE MANAGER $ 60.00

Construction Management: CONSTRUCTION MANAGER $ 110.00 CONSTRUCTION INSPECTOR $ 90.00

Surveying: OFFICE SURVEYOR $ 110.00 ASSISTANT OFFICE SURVEYOR $ 80.00 TWO-MAN SURVEY CREW $ 180.00 PUBLIC WORKS SURVEY CREW $ 220.00

Materials: The following services are billed at our cost plus 10% • Sub-consultant fees • Commercial delivery services (Fed Ex, California Overnight, messenger services etc) • Copies and blue prints of plans beyond those required by city or county for plan review.

Consent 1e June 18, 2015 Lori Martin, City Clerk City Council Staff Report

Approve Pay Schedules for Fiscal Years 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16

SUMMARY: Approve the attached pay schedules for Fiscal Years 2011-12, 2012-13, 2013-14 and 2014-15 (July through December), 2014-15 (January through June) and 2015-16. Once approved these schedules will be made publicly available and used by CalPERS for purposes of determining the amount of compensation earnable and will comply with CCR Section 570.5.

FISCAL IMPACT: There is no fiscal impact.

ANALYSIS: CalPERS conducted a public agency review in August 2014 and issued a draft report of findings in February 2016. The City provided responses to the draft findings on March 9, 2016 and a final report was issued by CalPERS in March 2016. After working closely with CalPERS Compensation Review Unit, minor amendments were made to the attached salary schedules to comply with Government Code Section 20636 and CCR Section 570.5. The minor amendments included adding City Council Member salary and some minor amendments to the Contracted Services titles, rates/fees. No adjustments were made to employee salaries. With Council approval of the attached salary schedules it will clear findings #1 & #2 of the final public agency review and provide a good working template going forward. Note: there are two schedules for FY 2014-15 due to a city pay schedule change from semi-monthly to bi-weekly starting January 1, 2015.

ATTACHMENTS:  Salary Schedule for FY 2011-12  Salary Schedule for FY 2012-13  Salary Schedule for FY 2013-14  Salary Schedule for FY 2014-15 – Effective July 1, 2015 through December 30, 2015  Salary Schedule for FY 2014-15 – Effective January 1, 2015 through June 30, 2015  Salary Schedule for FY 2015-16

CITY OF WATERFORD SALARY SCHEDULE Effective: July 1, 2011 - June 30, 2012

ADMINISTRATION / FINANCE STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS City Manager $10,333.33 Budgeted -Filled City Administrator $12,945.28 Budgeted -Filled City Clerk / Ass't to the City Administrator $6,380.24 $6,716.04 $7,069.51 $7,441.59 $7,833.26 Budgeted -Filled Accounting Technician III / Deputy City Clerk $3,472.60 $3,646.23 $3,828.54 $4,019.97 $4,220.97 Budgeted -Filled Account Technician II / Deputy City Clerk $2,984.16 $3,133.36 $3,290.03 $3,454.53 $3,627.26 Budgeted -Filled Accounting Technician I $2,512.11 $2,637.72 $2,769.61 $2,908.09 $3,053.49 Not Filled PUBLIC WORKS STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Public Works Director $7,175.47 $7,553.13 $7,950.66 $8,369.12 $8,809.60 Budgeted - Filled Public Works Supervisor $4,136.96 $4,343.80 $4,560.99 $4,789.04 $5,028.50 Budgeted - Filled Maintenance Worker III $3,283.35 $3,447.52 $3,619.90 $3,800.89 $3,990.94 Budgeted - Filled Maintenance Worker II $2,995.76 $3,145.55 $3,302.83 $3,467.97 $3,641.37 Budgeted - Filled Maintenance Worker I $2,564.89 $2,693.13 $2,827.79 $2,969.18 $3,117.64 Budgeted - Filled PLANNING & COMMUNITY DEVELOPMENT STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Community Development Specialist $3,964.82 $4,173.49 $4,393.15 $4,624.37 $4,867.76 Position not filled CITY COUNCIL - ELECTED POSITION FIXED - Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS POSITION FIXED - Hourly POSITION STATUS Part-Time Finance Manager / Treasurer $45.00/hr Budgeted - Filled Water & WWTP Chief of Operations $35.00/hr Budgeted - Filled Seasonal Sports Official - (Soccer) $25.00/game Budgeted - Filled Sports Official - (Soccer) - In Training $15.00/game Budgeted - Filled Sports Official - (Basketball) $8.00/game Budgeted - Filled CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES POSITION FIXED POSITION STATUS City Attorney (Monthly Retainer) $2,000.00/monthly Contracted Services City Attorney (City General Legal Svcs) $125.00/hr Contracted Services City Attorney (WPFA & RDA General Legal Svcs) $150.00/hr Contracted Services City Attorney (All Litigation Svcs) $150.00/hr Contracted Services City Attorney (Financing/Foreclosure Issues) $200.00/hr Contracted Services Legal Assistant $60.00/hr Contracted Services ENGINEERING FIXED - EFFECTIVE FIXED - EFFECTIVE POSITION 01/01/11 01/01/12 POSITION STATUS Principal $125.00 /hr $125.00 /hr Contracted Services Planner $100.00/hr $100.00/hr Contracted Services Civil Engineer $110.00/hr $110.00/hr Contracted Services City Engineer $110.00/hr $110.00/hr Contracted Services Project Manager $100.00/hr $100.00/hr Contracted Services Designer $90.00/hr $90.00/hr Contracted Services Senior Drafter / CADD $80.00/hr $80.00/hr Contracted Services Drafter / CADD $60.00/hr $60.00/hr Contracted Services Expert Witness $200.00/hr $200.00/hr Contracted Services Clerical $45.00/hr $45.00/hr Contracted Services Administrative Assistant $55.00/hr $55.00/hr Contracted Services Office Manager $60.00/hr $60.00/hr Contracted Services Construction Manager $110.00/hr $110.00/hr Contracted Services Construction Inspector $90.00/hr $90.00/hr Contracted Services Office Surveyor $110.00/hr $110.00/hr Contracted Services Assistant Office Surveyor $80.00/hr $80.00/hr Contracted Services Two-Man Survey Crew $180.00/hr $180.00/hr Contracted Services Public Works Survey Crew $220.00/hr $220.00/hr Contracted Services PLANNING & COMMUNITY DEVELOPMENT POSITION STEP A STEP B STEP C STEP D STEP E FIXED POSITION STATUS Planning Director (General Planning Svcs) $65.00 /hr Contracted Services Planning Director (Special Projects) $85.00/hr Contracted Services BUILDING POSITION STEP A STEP B STEP C STEP D STEP E FIXED POSITION STATUS Chief Building Official $40.00/hr Contracted Services LAW ENFORCEMENT SERVICES POSITION STEP A STEP B STEP C STEP D STEP E FIXED - Annual POSITION STATUS Total Budgeted Cost of Contract with Stan County $1,394,066.00 Contracted Services + true up at end of FY CITY OF WATERFORD SALARY SCHEDULE Effective: July 1, 2012 - June 30, 2013

ADMINISTRATION / FINANCE STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS City Manager $10,333.33 Budgeted -Filled City Clerk / Ass't to the City Manager $6,380.24 $6,716.04 $7,069.51 $7,441.59 $7,833.26 Budgeted -Filled Accounting Technician III / Deputy City Clerk $3,573.31 $3,751.97 $3,939.57 $4,136.55 $4,343.38 Budgeted -Filled Accounting Technician II / Deputy City Clerk $3,070.70 $3,224.23 $3,385.44 $3,554.71 $3,732.45 Budgeted -Filled Accounting Technician I $2,584.97 $2,714.21 $2,849.92 $2,992.42 $3,142.04 Not Filled PUBLIC WORKS STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Public Works Director $7,175.47 $7,553.13 $7,950.66 $8,369.12 $8,809.60 Budgeted - Filled Public Works Supervisor $4,256.93 $4,469.78 $4,693.26 $4,927.93 $5,174.32 Budgeted - Filled Maintenance Worker III $3,378.57 $3,547.50 $3,724.88 $3,911.12 $4,106.67 Budgeted - Filled Maintenance Worker II $3,082.64 $3,236.77 $3,398.61 $3,568.54 $3,746.97 Budgeted - Filled Maintenance Worker I $2,639.27 $2,771.23 $2,909.80 $3,055.29 $3,208.05 Budgeted - Filled PLANNING & COMMUNITY DEVELOPMENT STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Community Development Specialist $3,964.82 $4,173.49 $4,393.15 $4,624.37 $4,867.76 Position not filled CITY COUNCIL - ELECTED STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS POSITION FIXED POSITION STATUS Part-Time Finance Manager / Treasurer $45.00/hr Budgeted - Filled Code Enforcement Officer / Planning Technician $21.38/hr Budgeted - Filled Water & WWTP Chief of Operations $35.00/hr Budgeted - Filled Seasonal Sports Official - (Soccer) $25.00/game Budgeted - Filled Sports Official - (Soccer) - In Training $15.00/game Budgeted - Filled Sports Official - (Basketball) $8.00/game Budgeted - Filled

CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES POSITION FIXED POSITION STATUS City Attorney (Monthly Retainer) $2,000.00 Contracted Services City Attorney (City General Legal Svcs) $125.00/hr Contracted Services City Attorney (WPFA & RDA General Legal Svcs) $150.00/hr Contracted Services City Attorney (All Litigation Svcs) $150.00/hr Contracted Services City Attorney (Financing/Foreclosure Issues) $200.00/hr Contracted Services Legal Assistant $60.00/hr Contracted Services ENGINEERING FIXED 2012 Effective FIXED 2013 Effective POSITION 1/1/12 1/1/13 POSITION STATUS Principal $125.00 /hr $150.00/hr Contracted Services Planner $100.00/hr n/a Contracted Services Civil Engineer $110.00/hr $125.00/hr Contracted Services City Engineer $110.00/hr $110.00/hr Contracted Services Project Manager $100.00/hr $110.00/hr Contracted Services Senior Designer n/a $100.00/hr Contracted Services Designer $90.00/hr $85.00/hr Contracted Services Senior Drafter / CADD $80.00/hr n/a Contracted Services Drafter / CADD $60.00/hr $70.00/hr Contracted Services Expert Witness $200.00/hr $200.00/hr Contracted Services Clerical $45.00/hr $45.00/hr Contracted Services Administrative Assistant $55.00/hr $60.00/hr Contracted Services Office Manager $60.00/hr n/a Contracted Services Construction Manager $110.00/hr $125.00/hr Contracted Services Construction Inspector $90.00/hr $100.00/hr Contracted Services Qualified SWPPP Developer (QSD) n/a $125.00/hr Contracted Services Qualified SWPPP Practitioner (QSP) n/a $100.00/hr Contracted Services Office Surveyor $110.00/hr $125.00/hr Contracted Services Assistant Office Surveyor $80.00/hr $100.00/hr Contracted Services Two-Man Survey Crew $180.00/hr $220.00/hr Contracted Services Public Works Survey Crew $220.00/hr n/a Contracted Services PLANNING & COMMUNITY DEVELOPMENT POSITION FIXED POSITION STATUS Planning Director (General Planning Svcs) $65.00 /hr Contracted Services Planning Director (Special Projects) $85.00/hr Contracted Services BUILDING POSITION FIXED POSITION STATUS Chief Building Official $40.00/hr Contracted Services LAW ENFORCEMENT SERVICES POSITION FIXED - Annual POSITION STATUS Total Budgeted Cost of Contract with Stan County $1,399,714.00/annually Contracted Services + true up at end of FY CITY OF WATERFORD SALARY SCHEDULE Effective: July 1, 2013 - June 30, 2014

ADMINISTRATION / FINANCE STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS City Manager $11,071.67 Budgeted -Filled City Clerk / Ass't to the City Manager $6,520.60 $6,863.79 $7,225.04 $7,605.31 $8,005.59 Budgeted -Filled Accounting Technician III / Deputy City Clerk $3,651.92 $3,834.52 $4,026.24 $4,227.55 $4,688.34 Budgeted -Filled Accounting Technician II / Deputy City Clerk $3,139.04 $3,295.99 $3,460.79 $3,633.83 $3,908.17 Not Filled Accounting Technician I $2,641.84 $2,773.93 $2,912.62 $3,058.25 $3,211.17 Budgeted -Filled PUBLIC WORKS STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Public Works Director $7,333.33 $7,719.30 $8,125.57 $8,553.24 $9,003.41 Budgeted - Filled Public Works Supervisor $4,350.58 $4,568.11 $4,796.52 $5,036.34 $5,446.64 Budgeted - Filled Maintenance Worker III $3,452.90 $3,625.55 $3,806.82 $3,997.16 $4,199.82 Budgeted - Filled Maintenance Worker II $3,150.46 $3,307.98 $3,474.33 $3,649.32 $3,829.40 Budgeted - Filled Maintenance Worker I $2,697.33 $2,832.20 $2,973.81 $3,120.70 $3,277.46 Budgeted - Filled PLANNING & COMMUNITY DEVELOPMENT STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Community Development Specialist $3,964.82 $4,173.49 $4,393.15 $4,624.37 $4,867.76 Budgeted - Filled CITY COUNCIL - ELECTED STEP A - STEP B - STEP C - STEP D - STEP E - POSITION Monthly Monthly Monthly Monthly Monthly FIXED - Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS POSITION FIXED POSITION STATUS Part-Time Finance Manager / Treasurer $57.00/hr Budgeted - Filled Code Enforcement Officer / Planning Technician $21.38/hr Budgeted - Filled Water & WWTP Chief of Operations $35.00/hr Budgeted - Filled CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES POSITION FIXED POSITION STATUS City Attorney (Monthly Retainer) $2,000.00 Contracted Services City Attorney (City General Legal Svcs) $125.00/hr Contracted Services City Attorney (WPFA & RDA General Legal Svcs) $150.00/hr Contracted Services City Attorney (All Litigation Svcs) $150.00/hr Contracted Services City Attorney (Financing/Foreclosure Issues) $200.00/hr Contracted Services Legal Assistant $60.00/hr Contracted Services ENGINEERING FIXED 2013 Effective FIXED 2014 Effective POSITION 1/1/13 1/1/14 POSITION STATUS Principal $150.00/hr $150.00/hr Contracted Services Civil Engineer $125.00/hr $125.00/hr Contracted Services City Engineer $110.00/hr $110.00/hr Contracted Services Project Manager $110.00/hr $110.00/hr Contracted Services Senior Designer $100.00/hr $100.00/hr Contracted Services Designer $85.00/hr $85.00/hr Contracted Services Drafter / CADD $70.00/hr $70.00/hr Contracted Services Expert Witness $200.00/hr $200.00/hr Contracted Services Clerical $45.00/hr $45.00/hr Contracted Services Administrative Assistant $60.00/hr $60.00/hr Contracted Services Construction Manager $125.00/hr $125.00/hr Contracted Services Construction Inspector $100.00/hr $100.00/hr Contracted Services Qualified SWPPP Developer (QSD) $125.00/hr $125.00/hr Contracted Services Qualified SWPPP Practitioner (QSP) $100.00/hr $100.00/hr Contracted Services Office Surveyor $125.00/hr $125.00/hr Contracted Services Assistant Office Surveyor $100.00/hr $100.00/hr Contracted Services Two-Man Survey Crew $220.00/hr $220.00/hr Contracted Services PLANNING & COMMUNITY DEVELOPMENT FIXED 2013 Effective FIXED 2014 Effective POSITION 1/1/13 1/1/14 POSITION STATUS Planning Director (General Planning Svcs) $65.00 /hr $65.00 /hr Contracted Services Planning Director (Special Projects) $85.00/hr $85.00/hr Contracted Services Planning Manager - Contracted 4/4/13 $1650.00/monthly Contracted Services Planning Manager (M. Niskanen) - Special Projects $100.00/hr Contracted Services Planning Assistant Manager (D.Niskanen) - Spec Proj $50.00/hr Contracted Services Planning Administrative Assistant $48.00/hr Contracted Services BUILDING POSITION FIXED POSITION STATUS Chief Building Official $40.00/hr Contracted Services LAW ENFORCEMENT SERVICES POSITION FIXED - Annual POSITION STATUS Total Budgeted Cost of Contract with Stan County $1,399,714.00 Contracted Services + true up at end of FY CITY OF WATERFORD SALARY SCHEDULE Effective: July 1, 2014 - December 31, 2014 - Monthly/Hourly Salary Schedule *January 1, 2015 - June 30, 2015 - Bi-Weekly/Hourly Salary Schedule *(Bi-Weekly/Hourly Salary Schedule will be posted prior to January 1, 2015)

ADMINISTRATION / FINANCE STEP A - STEP B - STEP C - STEP D - FIXED - POSITION Monthly Monthly Monthly Monthly STEP E - Monthly Monthly POSITION STATUS City Manager $11,358.64 Budgeted -Filled City Clerk / Ass't to the City Manager $6,690.14 $7,042.25 $7,412.89 $7,803.05 $8,217.72 Budgeted -Filled Accounting Technician III / Deputy City Clerk $3,746.87 $3,934.21 $4,130.92 $4,337.47 $4,810.24 Budgeted -Filled Accounting Technician II $3,220.65 $3,381.69 $3,550.77 $3,728.31 $4,009.78 Position not filled Accounting Technician I $2,710.52 $2,846.05 $2,988.35 $3,137.77 $3,294.66 Budgeted -Filled PUBLIC WORKS STEP A - STEP B - STEP C - STEP D - FIXED - POSITION Monthly Monthly Monthly Monthly STEP E - Monthly Monthly POSITION STATUS Public Works Director $7,524.00 $7,920.00 $8,336.84 $8,775.62 $9,237.50 Budgeted - Filled Public Works Supervisor $4,463.70 $4,686.88 $4,921.22 $5,167.29 $5,588.26 Budgeted - Filled Maintenance Worker III $3,542.68 $3,719.81 $3,905.80 $4,101.09 $4,309.02 Budgeted - Filled Maintenance Worker II $3,232.37 $3,393.99 $3,564.66 $3,744.21 $3,928.97 Budgeted - Filled Maintenance Worker I $2,767.47 $2,905.84 $3,051.13 $3,201.84 $3,362.68 Position not filled PLANNING & COMMUNITY DEVELOPMENT STEP A - STEP B - STEP C - STEP D - FIXED - POSITION Monthly Monthly Monthly Monthly STEP E - Monthly Monthly POSITION STATUS Community Development Specialist $4,067.90 $4,282.00 $4,507.37 $4,744.60 $4,994.32 Budgeted -Filled CITY COUNCIL - ELECTED POSITION FIXED - Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS POSITION FIXED - Hourly POSITION STATUS Part-Time Finance Manager / Treasurer $57.00 Budgeted - Filled Water & WWTP Chief of Operations $35.00 Budgeted - Filled

CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES

POSITION FIXED - Monthly FIXED - Hourly POSITION STATUS City Attorney (Monthly Retainer) $2,000.00 Contracted Services City Attorney (City General Legal Svcs) $125.00 Contracted Services City Attorney (WPFA & RDA General Legal Svcs) $150.00 Contracted Services City Attorney (All Litigation Svcs) $150.00 Contracted Services City Attorney (Financing/Foreclosure Issues) $200.00 Contracted Services Legal Assistant $60.00 Contracted Services ENGINEERING FIXED 2014 Effective FIXED 2015 POSITION 1/1/14 Effective 1/1/15 POSITION STATUS Principal $150.00/hr $150.00/hr Contracted Services Civil Engineer $125.00/hr $125.00/hr Contracted Services City Engineer $110.00/hr $110.00/hr Contracted Services Project Manager $110.00/hr $110.00/hr Contracted Services Senior Designer $100.00/hr $100.00/hr Contracted Services Designer $85.00/hr $85.00/hr Contracted Services Drafter / CADD $70.00/hr $70.00/hr Contracted Services Expert Witness $200.00/hr $200.00/hr Contracted Services Clerical $45.00/hr $45.00/hr Contracted Services Administrative Assistant $60.00/hr $60.00/hr Contracted Services Construction Manager $125.00/hr $125.00/hr Contracted Services Construction Inspector $100.00/hr $100.00/hr Contracted Services Qualified SWPPP Developer (QSD) $125.00/hr $125.00/hr Contracted Services Qualified SWPPP Practitioner (QSP) $100.00/hr $100.00/hr Contracted Services Office Surveyor $125.00/hr $125.00/hr Contracted Services Assistant Office Surveyor $100.00/hr $100.00/hr Contracted Services Two-Man Survey Crew $220.00/hr $220.00/hr Contracted Services PLANNING & COMMUNITY DEVELOPMENT FIXED 2014 Effective FIXED 2015 POSITION 1/1/14 Effective 1/1/15 POSITION STATUS

Planning Director (General Planning Svcs) $65.00 /hr Contracted Services

Planning Director (Special Projects) $85.00/hr Contracted Services

Planning Monthly Retainer - Contracted 4/4/13 $1650.00/mo $1848.00/mo Contracted Services

Planning Manager (M. Niskanen) - Special Projects $100.00/hr $110.00/hr Contracted Services

Planning Assistant Manager (D.Niskanen) - Spec Proj $50.00/hr $65.00/hr Contracted Services Planning Administrative Assistant $48.00/hr $48.00/hr Contracted Services BUILDING POSITION FIXED - Hourly POSITION STATUS Chief Building Official $40.00 Contracted Services LAW ENFORCEMENT SERVICES FIXED - POSITION Annual POSITION STATUS Total Budgeted Cost of Contract with Stan County $1,496,136.00 Contracted Services + true up at end of FY CITY OF WATERFORD SALARY SCHEDULE Effective: January 1, 2015 - June 30, 2015 - Bi-Weekly/Hourly Salary Schedule Note: Bi-Weekly Pay Schedule = 26 Pay Periods ADMINISTRATION / FINANCE STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS City Manager $5,242.45 Budgeted -Filled City Clerk / Ass't to the City Manager $3,087.76 $3,250.27 $3,421.34 $3,601.41 $3,790.95 Budgeted -Filled Accounting Technician III / Deputy City Clerk $1,729.32 $1,815.79 $1,906.58 $2,001.91 $2,220.11 Budgeted -Filled Accounting Technician II $1,486.46 $1,560.78 $1,638.82 $1,720.76 $1,850.67 Position not filled Accounting Technician I / Deputy City Clerk $1,251.01 $1,313.56 $1,379.24 $1,448.20 $1,520.61 Budgeted -Filled PUBLIC WORKS STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS Public Works Director $3,472.61 $3,655.38 $3,847.77 $4,050.29 $4,263.46 Budgeted - Filled Public Works Supervisor $2,060.17 $2,163.18 $2,271.33 $2,384.90 $2,579.20 Budgeted - Filled Maintenance Worker III $1,635.08 $1,716.84 $1,802.68 $1,892.81 $1,988.78 Budgeted - Filled Maintenance Worker II $1,491.86 $1,566.46 $1,645.23 $1,728.10 $1,813.37 Budgeted - Filled Maintenance Worker I $1,277.29 $1,341.16 $1,408.21 $1,477.77 $1,552.01 Position not filled Wastewater Treatment Plant OIT $1,229.64 $1,294.35 $1,362.48 $1,434.19 $1,509.67 Position Filled PLANNING & COMMUNITY DEVELOPMENT STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS Community Development Specialist $1,877.49 $1,976.31 $2,080.33 $2,189.82 $2,305.07 Budgeted -Filled CITY COUNCIL - ELECTED FIXED - POSITION Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS FIXED - POSITION Hourly POSITION STATUS Part-Time Finance Manager / Treasurer $57.00 Budgeted - Filled Water & WWTP Chief of Operations $35.00 Budgeted - Filled CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES FIXED - FIXED - POSITION Monthly Hourly POSITION STATUS City Attorney (Monthly Retainer) $2,000.00 Contracted Services City Attorney (City General Legal Svcs) $125.00 Contracted Services City Attorney (WPFA & RDA General Legal Svcs) $150.00 Contracted Services City Attorney (All Litigation Svcs) $150.00 Contracted Services City Attorney (Financing/Foreclosure Issues) $200.00 Contracted Services Legal Assistant $60.00 Contracted Services ENGINEERING FIXED 2014 Effective FIXED 2015 POSITION 1/1/14 Effective 1/1/15 POSITION STATUS Principal $150.00/hr $150.00/hr Contracted Services Civil Engineer $125.00/hr $125.00/hr Contracted Services City Engineer $110.00/hr $110.00/hr Contracted Services Project Manager $110.00/hr $110.00/hr Contracted Services Senior Designer $100.00/hr $100.00/hr Contracted Services Designer $85.00/hr $85.00/hr Contracted Services Drafter / CADD $70.00/hr $70.00/hr Contracted Services Expert Witness $200.00/hr $200.00/hr Contracted Services Clerical $45.00/hr $45.00/hr Contracted Services Administrative Assistant $60.00/hr $60.00/hr Contracted Services Construction Manager $125.00/hr $125.00/hr Contracted Services Construction Inspector $100.00/hr $100.00/hr Contracted Services Qualified SWPPP Developer (QSD) $125.00/hr $125.00/hr Contracted Services Qualified SWPPP Practitioner (QSP) $100.00/hr $100.00/hr Contracted Services Office Surveyor $125.00/hr $125.00/hr Contracted Services Assistant Office Surveyor $100.00/hr $100.00/hr Contracted Services Two-Man Survey Crew $220.00/hr $220.00/hr Contracted Services Public Works Survey Crew $220.00 Contracted Services PLANNING & COMMUNITY DEVELOPMENT FIXED 2014 Effective FIXED 2015 POSITION 1/1/14 Effective 1/1/15 POSITION STATUS Planning Monthly Retainer - Contracted 4/4/13 $1650.00/mo $1848.00/mo Contracted Services Planning Manager (M. Niskanen) - Special Projects $100.00/hr $110.00/hr Contracted Services Planning Assistant Manager (D.Niskanen) - Spec Proj $50.00/hr $65.00/hr Contracted Services Planning Administrative Assistant $48.00/hr $48.00/hr Contracted Services BUILDING FIXED - POSITION Hourly POSITION STATUS Chief Building Official $40.00 Contracted Services LAW ENFORCEMENT SERVICES FIXED - POSITION Annual POSITION STATUS Total Budgeted Cost of Contract with Stan County $1,356,551.00 Contracted Services + true up at end of FY CITY OF WATERFORD SALARY SCHEDULE Effective: July 1, 2015 - June 30, 2016 - Bi-Weekly/Hourly Salary Schedule Note: Bi-Weekly Pay Schedule = 26 Pay Periods ADMINISTRATION / FINANCE STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS City Manager $5,384.00 Budgeted -Filled City Clerk / Ass't to the City Manager $3,171.12 $3,338.03 $3,513.71 $3,698.64 $3,893.31 Budgeted -Filled Accounting Technician III / Deputy City Clerk $1,776.02 $1,864.82 $1,958.06 $2,055.96 $2,280.05 Budgeted -Filled Accounting Technician II $1,526.59 $1,602.92 $1,683.07 $1,767.22 $1,900.64 Position not filled Accounting Technician I / Deputy City Clerk $1,284.79 $1,349.03 $1,416.48 $1,487.30 $1,561.67 Budgeted -Filled PUBLIC WORKS STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS Public Works Director $3,566.38 $3,754.08 $3,951.66 $4,159.64 $4,378.57 Budgeted - Filled Public Works Supervisor $2,115.79 $2,221.58 $2,332.66 $2,449.29 $2,648.83 Budgeted - Filled Maintenance Worker III $1,679.23 $1,763.19 $1,851.35 $1,943.92 $2,042.47 Budgeted - Filled Maintenance Worker II $1,532.14 $1,608.75 $1,689.65 $1,774.75 $1,862.33 Budgeted - Filled Maintenance Worker I $1,311.78 $1,377.37 $1,446.24 $1,517.67 $1,593.91 Budgeted - Filled Wastewater Treatment Plant OIT $1,262.84 $1,329.30 $1,399.27 $1,472.91 $1,550.43 Budgeted - Filled PLANNING & COMMUNITY DEVELOPMENT STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS Community Development Specialist $1,928.19 $2,029.67 $2,136.49 $2,248.94 $2,367.31 Budgeted -Filled CITY COUNCIL - ELECTED FIXED - POSITION Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS FIXED - POSITION Hourly POSITION STATUS Part-Time Finance Manager / Treasurer $57.00 Budgeted - Filled CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES FIXED - FIXED - POSITION Monthly Hourly POSITION STATUS

City Attorney (Monthly Retainer) $2,000.00 Contracted Services City Attorney (City General Legal Svcs) $125.00 Contracted Services City Attorney (WPFA & RDA General Legal Svcs) $150.00 Contracted Services City Attorney (All Litigation Svcs) $150.00 Contracted Services City Attorney (Financing/Foreclosure Issues) $200.00 Contracted Services Legal Assistant $60.00 Contracted Services ENGINEERING FIXED 2015 Effective FIXED 2016 Effective 1/1/15 1/1/16 POSITION Hourly Hourly POSITION STATUS Principal $150.00 Contracted Services Planner $100.00 Contracted Services Civil Engineer $125.00 Contracted Services City Engineer $110.00 Contracted Services Project Manager $110.00 Contracted Services Designer $100.00 Contracted Services Senior Drafter / CADD $80.00 Contracted Services Drafter / CADD $70.00 Contracted Services Expert Witness $200.00 Contracted Services Clerical $45.00 Contracted Services Administrative Assistant $60.00 Contracted Services Office Manager $60.00 Contracted Services Construction Manager $125.00 Contracted Services Construction Inspector $100.00 Contracted Services Office Surveyor $125.00 Contracted Services Assistant Office Surveyor $100.00 Contracted Services Two-Man Survey Crew $220.00 Contracted Services Public Works Survey Crew $220.00 Contracted Services PLANNING & COMMUNITY DEVELOPMENT FIXED 2015 Effective FIXED 2016 Effective 1/1/15 1/1/16 POSITION Hourly Hourly POSITION STATUS Planning Monthly Retainer - Contracted 4/4/14 $1848.00/mo Contracted Services Planning Manager (M. Niskanen) - Special Projects $110.00/hr Contracted Services Planning Assistant Manager (D.Niskanen) - Spec Proj $65.00/hr Contracted Services Planning Administrative Assistant $48.00/hr Contracted Services BUILDING FIXED - POSITION Hourly POSITION STATUS Chief Building Official $40.00 Contracted Services LAW ENFORCEMENT SERVICES FIXED - POSITION Annual POSITION STATUS Total Budgeted Cost of Contract with Stan County $1,587,246.00 Contracted Services + true up at end of FY Presentation 2a June 18, 2015 Matt Erickson, Public Works Director City Council Staff Report

Public Works Director Matt Erickson to Introduce New Wastewater Treatment Department Personnel

SUMMARY: Public Works Director Matt Erickson to introduce the new Wastewater Treatment Plant OIT, Kyle Perry hired on June 1, 2015.

FISCAL IMPACT: N/A

ANALYSIS: N/A

ATTACHMENTS: N/A Presentations 2b June 18, 2015 Lori Martin, City Clerk City Council Staff Report

Howard Training Center Update

SUMMARY: Executive Director Carla Strong to give an update on the Howard Training Center.

FISCAL IMPACT: N/A

ANALYSIS: N/A

ATTACHMENTS: N/A Public Hearing 4a June 18, 2015 Matt Erickson, Public Works Director City Council Staff Report

An Ordinance Amendment to Establish Special Speed Zones for Specific City Streets

SUMMARY: The City Council will consider amending the ordinance establishing speed zones on F Street (Oakdale- Waterford Highway) and Tim Bell Road.

FISCAL IMPACT: Adoption of the ordinance amendment will maintain the existing signed speed limit on a major portion of F Street. Existing speed limit signs will be replaced and added as needed to increase motorist's awareness of the speed limit and to give Waterford Police Services the rights of speed radar enforcement. The cost of the additional signs is included in the current Public Works Department operations budget.

ANALYSIS: The California Vehicle Code (CVC) requires that all speed limits in excess of 25 miles per hour be established on the basis of an engineering and traffic survey, conducted in accordance with procedures adopted by the State Department of Transportation (Caltrans), if they are to be enforceable by the use of radar. These speed zone surveys are required to be updated every seven (7) years in order to continue the use of radar enforcement.

The city contacted and hired K.D. Anderson & Associates to conduct a survey of the F St (Oakdale- Waterford Highway) corridor. The limits of the survey were from the north city limits to the intersection of Highway 132.The recommended speed limits shown in the proposed amendment are based on the analysis of the traffic survey data and engineering and traffic studies conducted. In addition, the recommended speed limits reflect the change in traffic patterns and city limit boundaries that have occurred during the past several years. All traffic surveys used for development of the traffic study were prepared in accordance with the standards adopted by Caltrans.

If approved, a copy of the survey, along with a copy of the approving ordinance amendment, will be maintained in the Public Works files, with a copy delivered to the Waterford Police Services c/o Stanislaus County Sheriff’s Department.

Adoption of the amendment will approve the recommendations and establish current speed limit boundaries and the speed limits on the listed streets consistent with the California Vehicle Code and the City's Municipal Code. Staff recommends that the City Council approve the ordinance amendment establishing the prima facie speed limit, within the limits outlined, on the city streets listed.

PROCESS: Ordinance 2015-03 was introduced for a first reading by title only at the June 4, 2015 City Council meeting as a public hearing item. City Council took action to approve the introduction and first reading by title only at the June 4, 2015 City Council meeting and thereafter a summary of Ordinance 2015-03 was published in the Waterford News.

Ordinance 2015-03 is before the City Council tonight as a public hearing item to consider the 2nd reading and adoption by title only. After adoption and within 14 days of passage the Ordinance Summary will be published in the Waterford News together with the names of the members of the City Council voting for and against same. This Ordinance will become effective and be in full force on and after thirty (30) days of its adoption.

ENVIRONMENTAL REVIEW: N/A

ATTACHMENTS:  Ordinance 2015-03  Ordinance Summary  Speed Survey  Public Hearing Notice CITY OF WATERFORD ORDINANCE 2015-03

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WATERFORD AMENDING WATERFORD MUNICIPAL CODE TITLE 10, “VEHICLES AND TRAFFIC”, CHAPTER 10.24, ENTITLED “SPEED LIMITS”

WHEREAS, the City of Waterford is amending Title 10, Chapter 10.24 entitled “Speed Limits” by amending various sections of Waterford Municipal Code Section 10.24.010 entitled “Decrease of state law maximum speed”.

THE CITY COUNCIL OF THE CITY OF WATERFORD, COUNTY OF STANISLAUS, STATE OF CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. Waterford Municipal Code Section 10.24.010 is amended to read as follows:

Stricken through text represents deletions to the Waterford Municipal Code, highlighted/underlined text represents additions to the Waterford Municipal Code.

Title 10 VEHICLES AND TRAFFIC

Chapter 10.24 SPEED LIMITS

10.24.010 Decrease of state law maximum speed.

It is determined upon the basis of an engineering and traffic investigation that the speed permitted by state law outside of business and residence districts as applicable upon the following streets is greater than is reasonable or safe under the conditions found to exist upon such streets, and it is declared that the prima facie speed limit shall be as herein set forth on those streets or parts of streets herein designated when signs are erected giving notice thereof:

Declared Prima Facie Name of Street or Portion Affected Speed Limit On Hickman Road, Oakdale-Waterford Highway (“F” Street) from 35 miles per hour the north side of the intersection of Highway 132 (“Yosemite Blvd.”)south city limits to 100 feet north of to the center line northern most curb line of Bonnie Brae Avenue On Oakdale-Waterford Highway (“F Street”) from the northern 45 miles per hour most curb line of Bonnie Brae Avenue to the north city limits

On Tim Bell Road from Highway No. 132 to the north city limitsMID Main Canal 25 miles per hour On Reinway Avenue from south city limits to the north city limits 25 miles per hour On Pasadena Avenue from Washington Road to Kadota Avenue 25 miles per hour On Bentley Street from Tim Bell Road to Skyline Boulevard 25 miles per hour On Welch Street from Oakdale-Waterford Highway (“F” Street) to 25 miles per hour Bentley Street On Skyline Boulevard from Highway No. 132 to Welch Street 25 miles per hour On Western Avenue from Riverside Road to Oakdale-Waterford 25 miles per hour Highway (“F” Street) On Riverside Road from Western Avenue to Highway No. 132 25 miles per hour On Bonnie Brae Avenue from Oakdale Waterford Highway to Tim 25 miles per hour Bell Road On “E” Street from Highway No. 132 to Oden Drive 25 miles per hour On Main Street from Oakdale-Waterford Highway (“F” Street) to 25 miles per hour Tim Bell Road On Kadota Avenue from Reinway Avenue to Church Street 25 miles per hour On Pecan Avenue from Reinway Avenue to Church Street 25 miles per hour On Church Street from Highway No. 132 to Kadota Avenue 25 miles per hour On Bentley Avenue from Highway 132 to “F” Street 35 miles per hour

(Ord. 79-18 §1, 1979; Ord. 71-6 §14, 1971).

SECTION 2. Validity: If any section, subsection, sentence, clause, word, or phrase of this ordinance is held to be unconstitutional or otherwise invalid for any reason, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause, word, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, words, or phrases be declared invalid or unconstitutional.

SECTION 3. Enactment: This ordinance shall become effective and be in full force on and after thirty (30) days of its passage and adoption, and prior to the expiration of fifteen (15) days from the passage and adoption thereof, shall be published in the City of Waterford, County of Stanislaus, State of California, together with the names of the members of the City Council voting for and against the same.

The foregoing ordinance was passed and adopted by the City Council of the City of Waterford, County of Stanislaus, State of California, at a regular meeting thereof held on the 18th day of June, 2015.

AYES: NOES: ABSTAIN: ABSENT: CITY OF WATERFORD

MICHAEL VAN WINKLE, Mayor

ATTEST: APPROVED AS TO FORM:

LORI MARTIN CORBETT J. BROWNING City Clerk City Attorney SUMMARY OF ORDINANCE 2015-03

Ordinance 2015-03 amending Title 10, “Vehicles and Traffic”, by amending Chapter 10.24 entitled “Speed Limits” of the Waterford Municipal Code. The proposed ordinance makes minor amendments to the language of Waterford Municipal Code Section 10.24.010 entitled “Decrease of state law maximum speed.”

Adoption of Ordinance 2015-03 incorporates recommendations of the Engineering and Traffic Survey conducted and prepared by KD Anderson & Associates, Inc. and will establish current speed limit boundaries and the speed limits on the listed streets consistent with the California Vehicle Code and the Waterford Municipal Code.

A certified copy of the full text is posted in the office of the City Clerk. Copies and the complete text of the ordinance are available at Waterford City Hall, 101 E Street, Waterford, CA for review.

This ordinance is scheduled for an introduction and first reading at a public hearing on June 4, 2015 and scheduled for 2nd reading and adoption by the Waterford City Council on June 18, 2015. This ordinance will become effective thirty (30) days from the date of adoption.

AYES: NOES: ABSENT: ABSTAIN:

CITY OF WATERFORD

______MICHAEL VAN WINKLE, Mayor

ATTEST:

______LORI MARTIN, City Clerk

APPROVED AS TO FORM:

______CORBETT J. BROWNING, City Attorney

ENGINEERING AND TRAFFIC SURVEY FOR

F STREET SPEED LIMITS

Waterford, CA

Prepared By:

KD Anderson & Associates, Inc. 3853 Taylor Road, Suite G Loomis, CA 95650 (916) 660-1555

April 30, 2015

4585-23

Transportation Engineers

INTRODUCTION

The following provides an Engineering and Traffic Survey to establish speed limits on F Street within the City of Waterford. Once established, the City intends to enforce the speed limits with the use of radar.

Speed limits in California are governed by the California Vehicle Code, and the California MUTCD outlines Standards, Guidance and Options for establishing speed limits which can be legally enforced using radar. CVC Section 627 defines the term “Engineering and traffic survey” and lists its requirements.

Standard: An engineering and traffic survey (E&TS) shall include, among other requirements deemed necessary , consideration of all of the following:

A. Prevailing speeds as determined by traffic engineering measurements. B. Collision records. C. Highway, traffic, and roadside conditions not readily apparent to the driver.

The E&TS should contain sufficient information to document that the required three elements identified above are provided and that any other conditions not readily apparent to the driver are properly identified.

Standard: Speed zones (other than statutory speed limits) shall only be established on the basis of an engineering and traffic survey (E&TS) that has been performed in accordance with traffic engineering practices. The engineering study shall include an analysis of the current speed distribution of free-flowing vehicles.

The Speed Limit (R2-1) sign shall display the limit established by law, ordinance, regulation, or as adopted by the authorized agency based on the engineering study. The speed limits displayed shall be in multiples of 5 mph.

Standard: When a speed limit is to be posted, it shall be established at the nearest 5 mph increment of the 85th-percentile speed of free-flowing traffic, except as shown in the two Options below.

Option:

1. The posted speed may be reduced by 5 mph from the nearest 5 mph increment of the 85th- percentile speed, in compliance with CVC Sections 627 and 22358.5.

2. For cases in which the nearest 5 mph increment of the 85th-percentile speed would require a rounding up, then the speed limit may be rounded down to the nearest 5 mph increment below the 85th-percentile speed, if no further reduction is used. Refer to CVC Section 21400(b).

Engineering & Traffic Survey for Page 1 F Street Speed Limits, Waterford, CA Standard: If the speed limit to be posted has had the 5 mph reduction applied, then an E&TS shall document in writing the conditions and justification for the lower speed limit and be approved by a registered Civil or Traffic Engineer. The reasons for the lower speed limit shall be in compliance with CVC Sections 627 and 22358.5.

Option:

Other factors that may be considered when establishing or reevaluating speed limits are the following: A. Road characteristics, shoulder condition, grade, alignment, and sight distance; B. The pace; C. Roadside development and environment; D. Parking practices and pedestrian activity; and E. Reported crash experience for at least a 12-month period.

EXISTING CONDITIONS

F Street is a north-south roadway which extends through Waterford from Yosemite Ave (SR 132) in the south to the irrigation canal on the north side of town, a distance of approximately 4,600 feet. The roadway continues into agricultural lands to the north and south and is designated as Oakdale-Waterman Highway to the north and Hickman Road to the south of the City of Waterford. The majority of F Street provides a 62' street section with one travel lane in each direction and a 12' shoulder designated for bicycle traffic and parking. There are ten (10) intersecting side streets along the roadway segment and left turn lane channelization is provided at six of the ten side street intersections. One intersection at Bentley Street is controlled by a 4- way stop, with side street stop sign control at the other nine intersections. The posted speed limit is 35 mph. The attached Existing Conditions exhibit displays the existing roadway features.

Adjacent land uses are primarily residential, with commercial uses on the south end of the road along the one block segment from Yosemite Avenue to Bentley Street. The majority of the west side of the street has no direct driveway access, with a number of driveways located on the east side of the street along the six block segment from Yosemite Avenue to 1st Street. North of 1st Street, there are no driveways on the east or west sides of the street.

Available sight distances are good along the length of the roadway and there are no significantly deficient roadway features that are judged to justify establishing a speed limit below the 85th percentile speed.

Radar Speed Surveys. Radar speed surveys were conducted at three (3) locations along F Street. These locations are also displayed on the attached existing conditions exhibit, as are the 85th percentile speeds established from the surveys. A sample size of 100 or more vehicles was surveyed at each location, which is consistent with requirements outlined in the CA MUTCD. This speed survey information has been compiled using the vehicle speed data worksheet contained in the CA MUTCD to identify the 85th percentile critical speed.

As shown in the attached exhibit, an 85th percentile speed of 43 mph was surveyed on the north end of F Street near Blaney Drive, a 38 mph 85th percentile speed south of Summers Street and a

Engineering & Traffic Survey for Page 2 F Street Speed Limits, Waterford, CA 36 mph 85th percentile speed along the southerly segment of F Street. The speed surveys are appended to this report.

Collision Records. Accident records for F Street have been reviewed for the five year period from 2010 through 2014. This information is summarized in Table 1 and records are presented in the Appendix. Individual accident records were reviewed to identify the type of accident and determine if the accident was speed related. As shown in Table 1, a total of six (6) accidents occurred over the five year period and only one incident was identified as speed related by the reporting officer.

This accident history does not justify establishing a speed limit below the 85th percentile speed.

TABLE 1 F STREET COLLISION REPORTS

Number of Collisions Involvement Conditions # of Persons Year Fatal Injury PDO Total Single Multi Ped. Day Night Wet Ice Killed Injury 2010 1 1 2 1 1 1 1 2 1 2011 1 1 2 1 1 1 1 1 2012 0 2013 0 2014 1 1 2 2 1 1 1 Total 3 3 6 2 4 3 3 3

CONCLUSIONS AND RECOMMENDATIONS

Establishing speed zones along F Street consistent with the 85th percentile speed survey data is recommended. A posted speed of 45 mph is recommended from the north limits of town south to Bonnie Brae Avenue as a transitional zone into town, with a 35 mph posted speed along the balance of F Street south to Yosemite Avenue. This is illustrated in the attached Recommended Speed Zones exhibit.

Engineering & Traffic Survey for Page 3 F Street Speed Limits, Waterford, CA

Appendix

Speed Surveys Accident Records

Engineering & Traffic Survey for Page 6 F Street Speed Limits, Waterford, CA

TO: Lisa Freitas - Mid Valley Publications – Legal Ads

From: Lori Martin, City Clerk, City of Waterford

Date: May 19, 2015

Re: Public Hearing Notice to be published on Tues 06/02/15

NOTICE OF PUBLIC HEARING

Notice is hereby given that a public hearing will be held by the City Council of the City of Waterford in the Council Chambers at a regular meeting thereof on June 4, 2015 and June 18, 2015 at or about 6:30pm.

The City Council will consider an amendment to Chapter 10.24, “Speed Limits” of the Waterford Municipal Code. The proposed ordinance amends the language in Waterford Municipal Code Section 10.24.010 “Decrease of state law maximum speed.”

The City Council will consider repealing Waterford Municipal Code section 4.00.070, entitled “State Connection Regulations-Backflow Control Devices” and adding Chapter 4.01, entitled “Regulations for the Control of Backflow Prevention Devices and Cross-Connections” to the Waterford Municipal Code.

Copies and a complete text of the Ordinance are available at City Hall, 101 E Street, Waterford, CA for review.

The Waterford City Council Chambers are located inside Waterford City Hall located at 101 E Street, Waterford, CA. For further information, please contact Lori Martin, City Clerk, at (209) 874-2328 ext. 109.

Public Hearing 4b June 18, 2015 Matt Erickson, Public Works Director City Council Staff Report

An Ordinance Repealing Waterford Municipal Code Section 4.00.070, entitled “State Connection Regulations- Backflow Control Devices” and Adding Chapter 4.01, entitled “Regulations for the Control of Backflow Prevention Devices and Cross Connections”

SUMMARY: The Water System chapter of the Municipal Code governs the water distribution and treatment services provided to customers by the City. The city council will consider repealing a section of the code and replacing it with another entirely new section to bring it in line with current practices and requirements that are currently in place. . FISCAL IMPACT: N/A

ANALYSIS: Staff is continuously looking for ways to improve our municipal code. As we apply our code to various projects and situations and as we prepare for our anticipated acquisition of the Modesto System, we find areas we need to amend. Varying ways to clarify, make more user friendly, and improve the code are discussed internally and eventually brought forward to the various commissions and City Council for consideration of amending.

Although periodic revisions and additions have been made to specific sections of the Water System Code, it has been a number of years since it has been comprehensively reviewed. With the anticipated acquisition of the Modesto Water System, staff has recently begun to review the Water Code to research what changes will possibly need to be made. One of the areas found in our research was found in the current cross connection control ordinance.

In summary, the primary objective of a Cross Connection Control Program is to protect the public potable water system at the service connection by containing within the consumer’s premises any actual or potential pollution or contamination which may result from backflow through cross- connections.

A typical Cross Connection Control Ordinance should assure that there is adequate oversight and monitoring of the installation, testing and maintenance of backflow prevention assemblies that exist within the Water Services area.

Upon review of the current ordinance and comparing it to other municipalities, it was found that this section was one that could be greatly improved upon. In light of the nature of the current ordinance and the need to update its lack of detail, staff decided to completely rewrite the ordinance and further suggest it be given its own section in the water code.

Staff has prepared the attached ordinance for council consideration. It was prepared using an ordinance from another California municipality as a guide. Staff believes the proposed ordinance reflects a more complete and comprehensive ordinance that will better serve our current and future needs.

Staff recommends adoption of the proposed ordinance.

PROCESS: Ordinance 2015-04 was introduced for a first reading by title only at the June 4, 2015 City Council meeting as a public hearing item. City Council took action to approve the introduction and first reading by title only at the June 4, 2015 City Council meeting and thereafter a summary of Ordinance 2015-04 was published in the Waterford News.

Ordinance 2015-04 is before the City Council tonight as a public hearing item to consider the 2nd reading and adoption by title only. After adoption and within 14 days of passage the Ordinance Summary will be published in the Waterford News together with the names of the members of the City Council voting for and against same. This Ordinance will become effective and be in full force on and after thirty (30) days of its adoption.

ENVIRONMENTAL REVIEW: N/A

ATTACHMENTS:  Ordinance 2015-04  Ordinance Summary  Public Hearing Notice

CITY OF WATERFORD ORDINANCE 2015-04

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WATERFORD REPEALING WATERFORD MUNICIPAL CODE SECTION 4.00.070, ENTITLED “STATE CONNECTION REGULATIONS–BACKFLOW CONTROL DEVICES” AND ADDING CHAPTER 4.01, TITLED “REGULATIONS FOR THE CONTROL OF BACKFLOW PREVENTION DEVICES AND CROSS-CONNECTIONS” TO THE WATERFORD MUNICIPAL CODE

WHEREAS, the City of Waterford is repealing Waterford Municipal Code Section 4.00.070 “State connection regulations-Backflow control devices” and adding Chapter 4.01 “Regulations for the control of backflow prevention devices and cross-connections” to Title 4 “Water System” of the Waterford Municipal Code.

THE CITY COUNCIL OF THE CITY OF WATERFORD, COUNTY OF STANISLAUS, STATE OF CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. Waterford Municipal Code Section 4.00.070 is hereby repealed.

Stricken through text represents deletions to the Waterford Municipal Code, highlighted/underlined text represents additions to the Waterford Municipal Code.

Title 4 WATER SYSTEM Chapter 4.00 REGULATION AND BILLING 4.00.070 State connection regulations—Backflow control devices.

A. In making plumbing connections, the consumer shall comply with the regulations of the state and county departments of public health.

1. In addition to the applicable state and county regulations, the following is prohibited, unlawful and a misdemeanor subject to punishment in accordance with Chapter 1.12 of this code, because of the threat to the public health:

a. Unprotected cross connections between a public supply and any unapproved source of water; and

b. Water service to premises where there is a possibility of contaminated water backflowing into the public water system.

2. In addition, approved reduced pressure valves (back flow protectors) shall be installed on water services when:

a. Another source of water, whether cross connected or not, is in use or is available for use; or b. Containing liquid substances of any kind are used, produced, or processed.

B. The director shall determine the type, design and layout of backflow control devices required at each premises, and the devices shall be installed at the expense of the consumer. The control devices shall be inspected, tested, and approved by the director as a condition of services to the premises. (Ord. 05-01 §2).

SECTION 2. Waterford Municipal Code Chapter 4.01, entitled “Regulations for the control of backflow prevention devices and cross-connections” is hereby added to Title 4 Water System of the Waterford Municipal Code as follows:

Stricken through text represents deletions to the Waterford Municipal Code, highlighted/underlined text represents additions to the Waterford Municipal Code.

Title 4 WATER SYSTEM Chapter 4.01 Regulations for the control of backflow prevention devices and cross- connections 4.01.010 Authority. 4.01.020 Findings and purpose. 4.01.030 Definitions. 4.01.040 Determination of need for backflow prevention. 4.01.050 Water system. 4.01.060 Backflow prevention assembly requirement. 4.01.070 Type of backflow prevention assembly required. 4.01.080 Backflow prevention assembly required for specific uses. 4.01.090 Backflow prevention assemblies required for fire protection systems. 4.01.100 Application to install a backflow prevention assembly. 4.01.110 Installation of an approved backflow prevention assembly. 4.01.120 Approval of backflow prevention assemblies. 4.01.130 Inspection, testing, and maintenance of backflow prevention assemblies. 4.01.140 Test Failure 4.01.150 Notice of Testing Due 4.01.160 Backflow Prevention Device Removal 4.01.170 Conditions for terminating water service. 4.01.180 Procedure for terminating water service. 4.01.190 Penalties for noncompliance. 4.01.200 Records

4.01.010 Authority. Under the terms of the city’s water supply permit issued by the California Department of Public Health, the city is required to comply with Title 17 of the California Code of Regulations (“CCR Title 17”) and California Health and Safety Code Section 4017 regarding cross-connection control. The state regulations imposed by the Department of Public Health are necessary to ensure that the city’s water supply is protected from harmful contaminants and pollutants resulting from backflow.

4.01.020 Findings and purpose. The purposes of this chapter are:

A. To protect the city’s municipal water system from contaminants or pollutants by isolating sources of contaminants or pollutants within a customer’s internal water distribution system which could backflow or back-siphon into the city’s water system; B. To eliminate and control cross-connections that exist between a customer’s potable water system and non-potable water systems; and C. To evaluate and reduce the following potential hazards to the city’s potable water supply: 1. Health hazard: any actual or potential threat of contamination of a physical or toxic nature to the city’s water system or the consumer’s potable water system that would create or, in the judgement of the director, may create a danger to health; 2. Plumbing hazard: any internal or plumbing type of cross-connection in a customer’s potable water system that may be either a pollutant or contamination-type hazard. The term “plumbing hazard” includes, but is not limited to, cross-connections to toilets, sinks, lavatories, wash trays, washing machines or lawn sprinkling systems. Plumbing-type cross-connections may be located in many types of structures, including homes, apartment houses, hotels and commercial and industrial establishments. An appropriate type of cross-connection control assembly, if permitted, must properly protect such a connection; 3. Pollution hazard: any actual or potential threat to the physical properties of the water system or to the potability of the city’s or the consumer’s potable water system, but which would not constitute a health or system hazard, as defined; 4. System hazard: any actual or potential threat of severe damage to the physical properties of the city’s water system or the consumer’s potable water system or of a pollutant or contaminant that may have a protractive effect on the quality of the potable water in the system; 5. Industrial fluids system hazard: any fluid or solution that may be chemically, biologically or otherwise contaminated or polluted in a form or concentration such as to constitute a health, water system, pollution or plumbing hazard if introduced into an approved water supply. This type of contamination includes but is not limited to polluted waters; all types of process waters and used waters; chemicals in fluid form; plating acids and alkalies; circulated cooling tower waters (open or closed) that may be chemically or biologically treated or stabilized with toxic substances; contaminated natural waters, such as from wells, springs, streams, rivers, harbors or irrigation canals; oils; gases; glycerin; caustic and acidic solutions; and all other solutions which may be used for industrial or fire-fighting purposes; D. The city council finds that adoption of the ordinance codified in this chapter is necessary to ensure renewal of the city’s water supply permit and to protect the public health, safety and general welfare.

4.01.030 Definitions. In this chapter, unless the context requires otherwise:

“Air gap separation (AG)” means the physical separation between the free-flowing discharge end of a potable water supply pipeline and an open or nonpressurized receiving vessel.

An “approved air gap separation” shall be at least double the inside diameter of the supply pipe measured vertically above the top rim of the vessel, but shall in no case be less than one inch.

“Approved backflow prevention assembly” means an assembly approved by the director of public works that has been manufactured in full conformance with the standards established by the American Water Works Association (AWWA) entitled “AWWA C506-69 Standards for Reduced Pressure Principle and Double Check Valve Backflow Assemblies,” and that has completely met the laboratory and field performance specifications of the Foundation of Cross- Connection Control and Hydraulic Research (FCCCHR) of the University of Southern California, established in the “Specifications of Backflow Prevention Assemblies.”

“Approved potable water supply” means water from any source that has been investigated by the health agency and approved for human consumption.

“Approved testing laboratory” means the FCCCHR of the University of Southern California; or the director approves another independent laboratory having equivalent facilities for both laboratory and field evaluation of backflow prevention assemblies.

“Approved water supply” means the source, well or plant whose potability is regulated and monitored by the health agency. This supply includes all sources, wells, pumps, tanks, equipment and appurtenances used to produce, treat or store water for public consumption or use.

“Auxiliary water supply” means any water supply on or available to the premises other than the city’s water supply. Auxiliary waters may include water from another purveyor’s potable water system or any natural source(s), e.g., a well, spring, river, harbor, irrigation canal, pipeline; used water; or industrial fluids. These waters may be contaminated, polluted, and objectionable or constitute an unacceptable water source over which the city does not have sanitary control.

“AWWA” means the American Water Works Association. “Backflow” means the undesirable reversal of the flow of water, liquids, gases, mixtures or other substances into or towards the city’s water system from any source other than the city’s water system.

“Backflow prevention assembly” means an assembly or means used to prevent backflow or back-siphonage into a potable water system.

“Backpressure” means a form of backflow that occurs when any elevation of pressure in the downstream piping system (by pump, elevation of piping, steam and/or air pressure) above the supply pressure at the point of consideration would cause or tend to cause a reversal of the normal flow.

“Back-siphonage” means the form of backflow due to a reduction in system pressure that causes a negative or sub atmospheric pressure to exist at a site in the water system.

“CCR Title 17” means the California Code of Regulations, Administrative Code, Title 17, Public Health, which requires the establishment of a cross-connection control and backflow prevention program.

“City” means the City of Waterford.

“City’s water system” means the city-owned water mains operated as a public utility to furnish water for domestic purposes. The system includes all facilities and appurtenances between the approved water supply and the point of service such as valves, pumps, pipes, conduits, tanks, receptacles, fixtures, equipment and appurtenances used to convey water for public consumption or use.

“Contaminant” or “contamination” means an impairment or degradation of the quality of water by the introduction of sewage, industrial fluid, used water, foreign material or auxiliary water from an unapproved source to a degree that creates an actual hazard to the public health through poisoning, the spread of disease or which may impair the usefulness or quality of the water.

“Control by containment cross-connection” means the installation of an approved backflow prevention assembly at the water service connection to any customer’s premises, where it is physically and economically impracticable to find and permanently eliminate or control all actual or potential cross-connections within the customer’s water system. It shall also mean the installation of an approved backflow prevention assembly on the service line leading to and supplying a portion of a customer’s water system where there are actual or potential cross- connections that cannot be effectively eliminated or controlled at the point of the cross- connection.

“Controlled cross-connection” means a connection between a potable water system and a nonpotable water system with an approved backflow prevention assembly properly installed and maintained so that it will continuously afford the protection commensurate with the degree of hazard.

“Cross-connection” means any unprotected actual or potential connection or structural arrangement between the city’s or a consumer’s potable water system and any other source, supply or system through which it is possible to introduce into any part of the public potable system any used water, industrial fluid(s), gases, liquids, materials or substances other than the intended potable water. A bypass arrangement, jumper connection, removable section, swivel or change-over assembly and any other temporary or permanent assembly through which, or because of which, backflow can or may occur shall be considered a cross-connection.

“Customer,” “consumer” or “user” means the owner or operator of a private water system served by the city’s water system.

“Customer’s potable water system” means that portion of the privately owned potable water system lying between the point of service and the point of use, including all pipes, conduits, tanks, receptacles, fixtures, equipment and appurtenances used to produce, convey, store or use potable water.

“Customer’s water system” means any water system located on the consumer’s premises, whether supplied by the city’s water system or an auxiliary water supply. The customer’s water system may be either a potable water system or an industrial piping system.

“Degree of hazard” means the hazard derived from an evaluation of the conditions within a system that may be classified as either a pollution (nonhealth) or contamination (health) hazard.

“Designate” means a public works employee with a current certificate in cross-connection control and who meets all of the requirements set forth in CCR Title 17.

“Director” means the director of the public works department and the city engineer.

“Double check – detector check (DCDC) valve assembly” means a specifically designed assembly composed of two independently operating, approved check valves installed as a unit between two tightly closing, resilient-seated shut-off valves and fittings with properly located test cocks for testing each check valve, along with a specific bypass water meter in series with a double check valve (DCV). The meter shall register accurately for only very low rates of flow in cubic feet and shall show a registration for all rates of flow.

“Double check valve (DCV) assembly” means an assembly composed of two independently operating, approved check valves, including tightly closing shut-off valves attached on each end of the assembly and fitted with properly located test cocks for testing that each check valve is watertight. DCV assemblies shall be installed to protect against a nonhealth hazard (e.g., a pollutant). “Fire marshal” means that member of the fire department designated by the fire chief under Section 2.104 of the most recent edition of the Uniform Fire Code.

“Foundation” means the Foundation for Cross-Connection Control and Hydraulic Research (FCCCHR).

“Hazardous substances” means any hazardous waste or hazardous substance as defined in any federal or state law or local ordinance, rule or regulation including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (Title 42 United States Code Section 9601, et seq.); the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health and Safety Code Section 25300, et seq.); and the Hazardous Waste Control Law (California Health and Safety Code Section 25100, et seq.). Hazardous substances shall also include asbestos or asbestos-containing materials, radon gas, and petroleum or petroleum fractions, whether or not defined as a hazardous substance in any such statute, ordinance, rule or regulation.

“Health agency” means either the state of California Department of Health Services or the Stanislaus County Department of Public Health Services.

“Hospital” means any institution, place, building or agency that maintains and operates facilities for one or more persons for the diagnosis, care and treatment of human illness, including convalescence and care during and after pregnancy or which maintains and operates organized facilities for any such purposes, and to which persons may be admitted for overnight stay or longer.

“Industrial fluids” means any fluid or solution that may be chemically, biologically or otherwise contaminated or polluted in a form or concentration such as to constitute a health, water system, pollution or plumbing hazard if introduced into an approved water supply. Industrial fluids include, but are not limited to, polluted or contaminated waters; all types of process waters and used waters; chemicals in fluid form; plating acids and alkalis; circulating cooling tower waters (open or closed) that may be chemically or biologically treated or stabilized with toxic substances; contaminated natural waters, such as from wells, springs, streams, rivers, harbors or irrigation canals; oils; gases; glycerin; caustic and acid solutions; and all other liquids and gaseous fluids and solutions that are intended for industrial or fire-fighting purposes.

“Objectionable substance” means a substance introduced into the city’s water supply that may not necessarily pose a threat to public health, but adversely affects the taste, appearance or other aesthetic qualities of the potable water supply.

“Point of service” means the terminal end of the city’s water system where the city loses jurisdiction and sanitary control over the water at its point of delivery to the consumer’s water system. In general, the point of service is the downstream side of the service connection or the municipal shut-off valve. “Pollutant” or “pollution” means any foreign substance (organic, inorganic or biological) present in water that tends to degrade its quality so as to constitute a nonhealth hazard or may impair the usefulness or quality of the water to a degree that does not create an actual hazard to the public health but which adversely and unreasonably affects such waters for domestic use.

“Premises” means any and all areas on a customer’s property which are served or have the potential to be served by the city’s water system.

“Public Works” means the department in charge of the city’s municipal potable water operations.

“Reduced pressure principle (RPP) assembly” means an assembly containing two independently operating approved check valves together with a hydraulically operating, mechanically independent pressure differential relief valve located between the check valves and at the same time below the first check valve. The unit shall include properly located test cocks and tightly closing, resilient-seated shut-off valves at each end of the assembly. The assembly shall operate to maintain the pressure in the zone between the two check valves at a level less than the pressure on the public water supply side of the assembly. At cessation of normal flow, the pressure between the two check valves shall be less than the pressure on the public water supply side of the assembly. In case of leakage of either of the check valves, the differential relief valve shall operate to maintain this reduced pressure by discharging to the atmosphere.

“Service connection” means the city’s water pipe and appurtenances from the city’s water main to the service connection; in particular, the point where the water purveyor loses jurisdiction and sanitary control over the water and its point of delivery to the customer’s water system. If a meter is installed at the end of the service connection, then “service connection” shall mean the downstream end of the meter. There shall be no unprotected take-offs from the service line ahead of any meter or backflow prevention assembly located at the point of delivery to the customer’s water system. The term “service connection” shall also include a water service connection from a fire hydrant and all other temporary or emergency water service connections from the city’s potable water system.

“Unapproved water supply” means any water that has not been approved for human consumption by a health agency.

“Used water” means any water that has been supplied by the city from the public potable water system to a customer’s water system, but which has passed through the point of delivery and is no longer under the sanitary control of the water purveyor.

“Water purveyor” means the City of Waterford.

4.01.040 Determination of need for backflow prevention. A. The director shall be responsible for protecting the city’s water system from contamination or pollution due to backflow or back-siphonage of contaminates or pollutants through the water service connection. If, in the sole judgment of the director, an approved backflow prevention assembly is required at the point where the city’s water service connects to a customer’s premises for the health and safety of the water system, the director or the director’s agent shall give notice to the customer directing the customer to install an approved backflow prevention assembly at each service connection. Such notice shall be in writing and shall specify a reasonable time frame, as deemed appropriate by the director, for compliance. The city shall not be responsible for the abatement of cross-connections which may exist within a user’s premises. B. The customer shall install an approved backflow prevention assembly at the customer’s own expense within the time frame specified in the written notice. The customer’s failure, refusal or inability to install such assembly shall constitute grounds for the city to discontinue water service to the premises until the appropriate assembly has been properly installed, as required by this chapter. Prior to discontinuing water service, the city shall follow the procedures set forth in WMC 4.01.160 and any other applicable law. 4.01.050 Water system. A. The city’s water system includes all of the source and distribution facilities which are under the complete control of the city from the source of the water supply up to the point where the customer’s water system begins. The city’s water system ends at the point where the customer’s water system begins. A source includes all components of the facilities utilized in the production, treatment, storage and delivery of water to the distribution system. The distribution system includes the network of conduits used for the delivery of water from the source to the customer’s system. B. The customer’s water system includes those parts of the facilities beyond the point where the city’s water system ends that are utilized in conveying city-delivered potable water to a point of use. 4.01.060 Backflow prevention assembly requirement. A. No water service connection to any premises shall be installed or maintained by the city’s public works department unless the water supply is protected as required by state law and this chapter. Service of water to any premises shall be discontinued by the director if: 1. A backflow prevention assembly required by state law or this chapter is not installed, tested or maintained; 2. It is found that a backflow prevention assembly has been removed or bypassed; or 3. An unprotected cross-connection exists on the premises. Service shall not be restored until the customer is in full compliance with this chapter.

B. The customer’s premises and water system shall be open for survey and inspection at all reasonable times to an authorized representative of the following city departments: public works, building and planning, code enforcement and the city manager’s office, to determine whether cross-connections or violations of this chapter exist. When such a violation or condition becomes known, the director shall deny or immediately discontinue service to the customer’s premises by providing a physical break in the service line until the customer has corrected condition(s) in conformance with state and city regulations adopted pursuant thereto.

C. An approved backflow prevention assembly shall be installed and maintained on each service line to a customer’s water system at or near the property line or immediately outside the building being served, and shall be installed before the first branch line leading off of the service line.

4.01.070 Type of backflow prevention assembly required. A. The type of backflow prevention that shall be required to prevent backflow into the city’s water system shall be commensurate with the degree of hazard that exists on the consumer’s premises. The type of approved backflow prevention assembly that may be required (listed in increasing levels of protection) includes: an approved double check valve (DCV) assembly, an approved double check – detector check (DCDC) valve assembly, an approved reduced pressure principle (RPP) assembly, or an approved air gap separation (AG). B. The customer may install a higher level of backflow protection than is required by this chapter. Uses not covered by this chapter shall be evaluated on a case-by-case basis and the director shall have sole discretion to determine which type of backflow prevention assembly shall be required. C. Where a premises has an auxiliary water supply that is not otherwise subject to the provisions of this chapter, the city’s water system shall be protected against backflow by an approved air gap (AG) separation or by installation and maintenance of an approved reduced pressure principle (RPP) backflow prevention assembly. D. Where a premises has any water or substance(s) that would be considered objectionable, but not hazardous, to public health if introduced into the water system, the city’s water system shall be protected by installation and maintenance of an approved double check valve (DCV) assembly. E. Where a premises has any material dangerous to health that is handled in such a fashion as to create an actual or potential hazard to the city’s water system (e.g., sewage treatment plants, sewage pumping stations, plating plants, chemical plants, hospitals, and mortuaries), the city’s water system shall be protected by an approved air gap (AG) separation or by installation and maintenance of an approved reduced pressure principle (RPP) backflow prevention assembly. F. In the case of any premises where there is an uncontrolled cross-connection, either actual or potential, the city’s water system shall be protected by an approved air gap (AG) separation or by installation and maintenance of an approved reduced pressure principle (RPP) backflow prevention assembly at the service connection. G. In the case of a premises with security requirements or other restrictions that make it impossible or impracticable to conduct a complete on-site cross-connection survey, the city’s water system shall be protected against backflow by the installation and maintenance of either an air gap (AG) separation or reduced pressure principle (RPP) backflow prevention assembly at each service connection to the premises. H. Where a premises has any internal cross-connection that cannot be permanently corrected and controlled, intricate plumbing and piping arrangements, or where all portions of the premises are not readily accessible for inspection purposes, and it is impracticable or impossible to ascertain whether or not a dangerous cross-connection exists, the city’s water system shall be protected against backflow by the installation and maintenance of an approved air gap (AG) separation or reduced pressure principle (RPP) backflow prevention assembly at each service connection to the premises.

4.01.080 Backflow prevention assembly required for specific uses. The following facilities and uses shall be required to install and maintain the minimum approved backflow prevention assembly type indicated below in parentheses:

1. Aircraft, automotive, rail transit or missile plant (RPP);

2. Animal clinic, animal grooming shop and animal boarding facility (RPP);

3. Apartment or office complex with a pond, lake or fountain (RPP);

4. Automobile repair shop with steam cleaner, acid cleaning or solvent equipment (RPP);

5. Auxiliary water system with no known cross-connection (RPP);

6. Auxiliary water system or a source with a known cross-connection (e.g., a well, river, harbor, irrigation canal) (RPP);

7. Autopsy facility (RPP);

8. Bottling plant (beverage or chemical) (RPP);

9. Brewery (RPP);

10. Buildings:

a. Hotel, apartment house, public and private building or other structure, where a sewage pump has been installed (RPP);

b. Any nonresidential structure in which the specific business activity cannot be ascertained by the director or his designee (RPP);

c. A multi-storied (three stories and higher) building that uses booster pumps or elevated storage tanks to distribute potable water within the premises (RPP); d. Any building that exceeds 40 feet in height as measured from the service connection to the highest water outlet (RPP);

11. Cannery, packing house or reduction plant (RPP);

12. Chemical facility – Any premises served from the city’s water system where there is a facility requiring the use of water in the industrial process of manufacturing, sorting, compounding or processing chemicals. This use includes facilities where chemicals are used as additives to the water supply or in the processing of products (RPP);

13. Chemically contaminated water systems – Any premises served from the city’s water system, where chemicals are used as additives to the water supply, where the water supply is used for the transmission or distribution of chemicals, or where chemicals are used with water in the compounding or processing of products (RPP);

14. Church, with or without baptismal font (RPP);

15. Clinic – Dialysis or medical (RPP);

16. Cold storage plant (RPP);

17. Commercial meat cutting, packaging or rendering plant (RPP);

18. Concrete plant (RPP);

19. Convalescent home, nursing home, residential care, hospice and sanitarium (RPP);

20. Dairy and dairy processing facility (RPP);

21. Dental office (RPP);

22. Dock and portside facility, including pier hydrants, fisheries, fish hatcheries, and fish/shellfish processing facilities (RPP);

23. Dry cleaner and dye works (RPP);

24. Film processing or manufacturing facility (RPP);

25. Food processing facility using nontoxic materials (RPP);

26. Food processing facility using toxic materials (RPP);

27. Hospital (RPP);

28. Ice manufacturing plant (RPP); 29. Irrigation system:

a. Premises where facilities have been installed for pumping, injecting, or spreading fertilizers, pesticides or other hazardous substances (RPP);

b. Premises having a separate service connection for irrigation purposes (RPP);

30. Laboratory – Including but not limited to teaching institution, experimental, diagnostic, biological or analytical (RPP);

31. Landscaping with elevated areas or drip irrigation except for landscaping of a single-family dwelling (RPP);

32. Laundry – Commercial (Standard Industrial Code Classification 7218) (RPP);

33. Machine shop (RPP);

34. Marina and boat repair (RPP);

35. Medical office (RPP);

36. Metal manufacturing, processing, stripping and fabrication facility (RPP);

37. Mobile home park or recreational vehicle camp (RPP);

38. Mortuary and morgue (RPP);

39. Multiple services, including two or more interconnected services provided by one or more water purveyors to a single consumer complex. Minimum backflow protection required at each service connection (RPP);

40. Office or shopping center with lease space (RPP);

41. Painting shop using water in any process (RPP);

42. Paper processing and production facility (RPP);

43. Pest control business (AG, RPP);

44. Petroleum and gas bulk production, transmission, and storage facility (RPP);

45. Plastic and fiberglass manufacturing, extruding and injection molding facility (RPP);

46. Plating works (RPP);

47. Portable spray or cleaning tank that may be connected to the city’s water system (AG, RPP); 48. Radioactive materials or substances – Plant or facility that processes, handles or stores radioactive material or substance (RPP);

49. Radiator shop – Repair or back flushing (RPP);

50. Reclaimed water distribution systems:

a. Any premises where the city’s water system is used to supplement the reclaimed water system (AG);

b. Any premises where reclaimed water is used and there is no interconnection with the potable water system (RPP);

51. Restaurant or building with commercial kitchen (RPP);

52. Restricted, classified or other closed facility (RPP);

53. Rubber manufacturing plant – Natural or synthetic (RPP);

54. Sand or gravel plant (RPP);

55. School, college, and university with kitchen, chemistry lab, boiler, and/or irrigation system (RPP);

56. Sewage and storm water pumping facility (AG);

57. Solar heating systems:

a. Solar collector system which contains any hazardous substance and where there is a direct make-up connection to the city’s water system (RPP);

b. Protection of the city’s water system is not required for “once through” solar heating systems including but not limited to domestic hot water systems;

58. Tank truck filling from fire hydrant (AG, RPP);

59. Vehicle washing facility (RPP);

60. Veterinary clinic and animal shelter (RPP).

The category of uses and facilities designated above are adopted from a model ordinance. Nothing in this section authorizes a use or facility in the city which is otherwise prohibited in the Waterford Municipal Code.

4.01.090 Backflow prevention assemblies required for fire protection systems. The following subsections describe six classes of fire protection systems and specify the minimal backflow prevention assembly required for connection of the fire protection systems to the city’s water system. The director may require an additional backflow prevention assembly to prevent contamination of the city’s water system.

A. A Class I system is directly connected only to the city’s public water mains. All sprinkler drains discharge to the atmosphere, dry wells or other safe outlets. A Class I system has no physical connection to other water supplies and contains no antifreeze or other additives. No backflow prevention assembly shall be required for connection of a Class I system to the city’s water system unless special conditions exist as determined by the director and the fire marshal. B. A Class II system is the same as a Class I system, except that a booster pump may be installed in the service line from the street main. No backflow prevention assembly shall be required for connection of a Class II system to the city’s water system unless special conditions exist as determined by the director and the fire marshal. C. A Class III system is directly connected to the city’s main water supply and includes one or more of the following features: (1) an elevated storage tank; (2) a fire pump taking suction from an aboveground reservoir or tank; and (3) a pressure tank. All storage facilities may only be filled by or connected to the city’s water supply and water in the facilities must be maintained in a potable condition. An approved DCDC backflow prevention assembly shall be required for connection of a Class III system to the city’s water system between the post-indicator valve and the on-site fire system. The DCDC shall be installed aboveground to allow a minimum of 18 inches of clearance around the valve. D. A Class IV system is directly supplied from the city’s main water supply in the same manner as a Class I or Class II system. In addition, a Class IV system includes an unapproved auxiliary water supply on or available to the premises, or an auxiliary supply located within 1,500 feet of a pumper connection. An RPP backflow prevention assembly shall be installed for connection of a Class IV system to the city’s water system. The RPP shall be installed aboveground as closely as possible to the city’s water system. E. A Class V system is directly supplied from the city’s main water system and is interconnected with an unapproved auxiliary water supply from a harbor, river, pond, well or other water supply where industrial fluids, additives, antifreeze and other contaminants or pollutants may be used. An RPP backflow prevention assembly shall be required for connection of a Class V system to the city’s water system. The RPP shall be installed aboveground as closely as possible to the city’s water system. F. A Class VI system contains combined industrial and fire protection systems supplied from the city’s water mains, with or without gravity storage or pump suction tanks. The public works director and fire marshal shall determine the appropriate backflow prevention assembly required for connection of a Class VI system to the city’s water system after they have made a complete survey of the premises for fire protection requirements.

4.01.100 Application to install a backflow prevention assembly. Prior to the installation of any backflow prevention assembly between the city’s water system and the owner’s facility, the owner shall apply for and receive the necessary plumbing and encroachment permits from the building and planning department.

4.01.110 Installation of an approved backflow prevention assembly. The installation of all backflow and cross-connection prevention devices shall be in accordance with the city’s standard details, as adopted by city council resolution, and all provisions of this chapter.

A. An approved air gap separation assembly (AG) shall be installed as follows: 1. The AG shall be located on the water customer’s side of and as close to the point of service as is practicable.

2. All piping from the point of service or the meter to the receiving tank shall be above grade and visible. Unless otherwise approved by the director, the director’s designate, or the health agency, the receiving tank shall be located on the customer’s side no further than five feet from the point of service or the meter.

3. There shall be no outlet, tee, tap, take-off or connection of any sort, to or from the service connection or the customer’s water system, between the city’s water main and the AG.

B. An approved reduced pressure principle (RPP) assembly shall be installed as follows: 1. Aboveground in a horizontal and level position. Unless otherwise approved by the director, the director’s designate or the health agency, the RPP shall be located on the customer’s side no further than five feet from the point of service or the meter.

2. A minimum of 12 inches above finished grade but not more than 36 inches above finished grade as measured from the bottom of the RPP. The RPP shall be readily accessible for maintenance and testing.

3. There shall be no outlet, tee, tap, take-off or connection of any sort, to or from the service connection or the customer’s water system, between the city’s water main and the RPP.

4. No part of the RPP shall be submerged during normal operation and weather conditions. C. An approved double check valve (DCV) assembly shall be installed as follows: 1. Unless otherwise approved by the director, director’s designate or the health agency, the DCV shall be installed aboveground, in a horizontal and level position and shall be located on the customer’s side no further than five feet from the point of service or the meter.

2. Unless otherwise approved by the director, the director’s designate or the health agency, the DCV shall be installed a minimum of 12 inches above finished grade and not more than 36 inches above finished grade as measured from the bottom of the DCV. The DCV shall be readily accessible for maintenance and testing.

D. An approved double check – detector check (DCDC) valve assembly shall be installed as follows: 1. Unless otherwise approved by the director, the director’s designate or the health agency, the DCDC shall be installed aboveground, in a horizontal and level position and shall be located on the customer’s side no further than five feet from the point of service or the meter.

2. Unless otherwise approved by the director, the director’s designate or the health agency, the DCDC shall be installed a minimum of 12 inches above finished grade but not more than 36 inches above finished grade as measured from the bottom of the DCDC. The DCDC shall be readily accessible for maintenance and testing.

3. There shall be no outlet, tee, tap, take-off or connection of any sort, to or from the service connection or the customer’s water system, between the city’s water main and the DCDC.

E. An approved backflow assembly shall have at least the same size diameter as the existing or proposed water meter unless otherwise approved in writing by the director. F. Upon installation, the backflow prevention assembly shall be tested by certified personnel of the city’s public works department or designee. Such testing shall be at the customer’s expense and as set by city council resolution. 4.01.120 Approval of backflow prevention assemblies. All backflow prevention assemblies, whether installed by the city or the customer, shall be assemblies of a model and size approved by the director. Final approval of any assembly proposed for installation under the terms of this chapter shall be evidenced by a certificate of approval issued by an approved testing laboratory certifying full compliance with AWWA standards and FCCCHR specifications. The following testing laboratory has been qualified by the director to test and certify backflow prevention assemblies:

Foundation for Cross-Connection Control and Hydraulic Research University of Southern California, University Park, Los Angeles, CA 90089

Backflow prevention assemblies that may be subject to backpressure or back-siphonage that have been fully tested and granted a certificate of approval by said qualified laboratory and are listed on the laboratory’s current list of approved backflow prevention assemblies may be used without further pretesting or qualification. Testing laboratories other than the laboratory listed above will be added to an approved list as they are deemed qualified by the director

4.01.130 Inspection, testing, and maintenance of backflow prevention assemblies. A. It shall be the duty of the water user on any premises on which reduced pressure principle backflow prevention devices, double check valve assemblies and/or pressure type vacuum breakers are installed to have competent inspections made of these devices to verify effective operation on an annual basis. The City, or it’s designee, may perform the tests and charge a fee to the water user in accordance with a resolution adopted from time-to-time by the city council.

All testing of devices and completion of backflow prevention device test and maintenance reports shall be restricted to those persons that have been certified by the Department of Health Services and are in possession of a current valid backflow prevention device tester identification card. No person shall test or shall make reports on backflow prevention assemblies as required in Title 17 of the California Administrative Code and this Article unless such person is a Qualified Tester pursuant to this Article.

The device shall be tested immediately upon being put into operation and at least once each year thereafter should the device continue in service. A backflow prevention device test and maintenance report must be filed for each test performance. Additional and/or more frequent testing shall be required because of, but not limited to, the following conditions:

1. Relocation. If a device is relocated, a test shall be made prior to putting the device back into service.

2. Re-piping. If the supply line is changed, the device shall be tested prior to being put back into service.

3. Repair or Overhaul. If repaired, the device shall be tested prior to being put back into service. The device may be required to be tested again in three months. Cleaning is considered to represent repair.

Devices or assemblies that are not commensurate with the degree of hazard involved shall be tested at least every three months. Devices or assemblies in this category shall be replaced with approved devices either upon successive inspections indicating repeated mechanical failure (excluding cleaning) or as directed by the city.

At the Director's discretion and as necessary, required operational tests may also be performed by properly certified City staff or contractors hired by the Director.

All backflow prevention devices, installation, tests, re-tests, repairs, overhaul and/or replacement shall be at the expense of the water user.

4.01.140 Test Failure.

For backflow prevention assemblies which fail to pass certified inspection or operational testing, the customer-user shall, immediately after notification of test results, provide for maintenance and repair of the assembly at their own expense and have the assembly retested.

4.01.150 Notice of Testing Due.

A. The Director shall notify each affected customer-user when it is time for the backflow preventer installed on the customer-user system to be tested. This written notice shall give the customer-user thirty (30) days to have the backflow preventer tested by a Qualified Tester and to submit the results to the Director.

B. The Director shall send a second notice to each customer-user who does not submit their test results as prescribed in the first notice within the thirty (30) day period allowed. The second notice shall give the customer-user a two (2) week period to have their backflow preventer tested and to submit the test results to the City.

C. Failure to submit required test results within the time required by the notice is a violation of this Article subjecting the customer-user to the remedies and penalties provided herein.

4.01.160 Backflow prevention device removal.

Approval must be obtained from the city before a backflow prevention device is removed, relocated or replaced.

A. Removal. The use of a device may be discontinued and the device removed from service upon presentation of sufficient evidence to the city to verify that a hazard no longer exists or is likely to be created in the future.

B. Relocation. A device may be relocated following confirmation by the city that the relocation will continue to provide the required protection and satisfy installation requirements. A retest will be required.

C. Repair. A device may be removed for repair, provided the water use is either discontinued until repair is completed and the device is returned to service, or the water use is equipped with other backflow protection approved by the city. A retest will be required.

D. Replacement. A device may be removed and replaced provided the water use is discontinued until the replacement device is installed. All replacement devices must be approved and must be commensurate with the degree of hazard involved. Note: Non- approved devices (assemblies) and/or approved devices (assemblies) that are not commensurate with the degree of hazard involved shall be replaced immediately. 4.01.170 Conditions for terminating water service. If the director finds that a customer’s system poses a clear and immediate hazard to the city’s water system and the hazardous condition cannot be immediately abated, the director may authorize the public works department to initiate the procedure for terminating a customer’s water service. The conditions that create a basis for terminating service shall include, but not be limited to, the following:

A. The presence of a direct or indirect connection between a potable water system and a sewer system; B. The presence of an unprotected direct or indirect connection between a potable water system and a system or equipment containing toxic chemicals or sewage; C. The presence of an unprotected direct or indirect connection between a potable water system and an auxiliary water system; D. The presence of an unprotected connection between a potable water system and a nonpotable nonpressure system; E. The refusal to install an approved backflow prevention assembly within the time frame specified by the director; F. The refusal to test a backflow prevention assembly within the time frame specified by the director; G. The refusal to repair or replace a faulty backflow prevention assembly; H. The refusal to correct a violation; or I. Any other situation which presents an immediate health and safety hazard to the city’s water system. 4.01.180 Procedure for terminating water service. Where it is necessary to terminate a customer’s water service, the director shall take the steps indicated below depending upon the degree of hazard to public health.

A. If in the director’s judgement the condition poses an immediate public health hazard, the director or the director’s designate shall: 1. Attempt to verbally notify the customer;

2. Immediately discontinue the customer’s service;

3. Immediately notify the state and county health departments of the public health hazard; and

4. Send a certified letter to the customer specifying the corrections to be taken prior to service being restored. B. If the customer refuses to comply with the terms and conditions of this chapter and the condition does not create an immediate public health hazard, the director or the director’s designate shall: 1. Send a certified letter to the customer specifying the corrective action needed, the time period by which it must be completed and the director’s intention to terminate service if the customer fails to comply;

2. Attempt to verbally notify the customer 24 hours prior to terminating water service; and

3. Upon termination, notify the state and county health departments.

C. If the customer is unable to comply with the terms and conditions required under this chapter, the customer may request a hearing with the city manager or his designated representative. The city manager or his representative shall afford the customer an opportunity to be heard, either in writing or orally, as to why the customer’s water service should not be disconnected. 4.01.190 Penalties for noncompliance. A. No person shall violate a provision of this chapter or fail to comply with a requirement of this chapter. A person who violates a provision of this chapter or fails to comply with a mandatory requirement of this chapter is guilty of an infraction unless the violation is stated to be a misdemeanor. B. An offense which would otherwise be an infraction is a misdemeanor if a person has been convicted of two or more violations of the same offense within the 12-month period preceding the commission of the offense. C. Under Government Code Section 36900, the penalty by fine for an infraction or misdemeanor shall be consistent with the Waterford Municipal Code. D. The remedies provided under this chapter are cumulative, not exclusive. 4.01.200 Records. A. Records of such tests, repairs, overhaul, relocation and/or replacement shall be filed with the city. The city shall provide forms for this purpose. A copy of this report shall be submitted to the water user as follows: 1. Upon notification of a newly installed device (new or replacement); 2. Annually: to comply with the requirements set forth in Chapter 5, Subchapter 1, Group 4, of the California Administrative Code; 3. Three months following repair or overhaul (if deemed necessary). B. The report shall be accompanied by correspondence directing the water user to have the necessary repairs made if necessary, and to return a card to the city within a thirty (30) day period. The time period shall be identified by a return date typed on the report form. In the event that there is need to exceed the return date, information explaining such delay shall be filed with the city in writing prior to expiration of said return date. If information is not received, a second notice will be sent. Noncompliance with the second notice will be followed by a city council hearing to discuss discontinuance of water service. SECTION 3. Validity: If any section, subsection, sentence, clause, word, or phrase of this ordinance is held to be unconstitutional or otherwise invalid for any reason, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause, word, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, words, or phrases be declared invalid or unconstitutional.

SECTION 4. Enactment: This ordinance shall become effective and be in full force on and after thirty (30) days of its passage and adoption, and prior to the expiration of fifteen (15) days from the passage and adoption thereof, shall be published in the City of Waterford, County of Stanislaus, State of California, together with the names of the members of the City Council voting for and against the same.

AYES: NOES: ABSTAIN: ABSENT: CITY OF WATERFORD

MICHAEL VAN WINKLE, Mayor

ATTEST: APPROVED AS TO FORM:

LORI MARTIN CORBETT J. BROWNING City Clerk City Attorney

SUMMARY OF ORDINANCE 2015-04

Ordinance 2015-04 repeals Waterford Municipal Code Section 4.00.070, entitled “State Connection Regulations-Backflow Control Devices” and adds Chapter 4.01, entitled “Regulations for the Control of Backflow Prevention Devices and Cross Connections” to Title 4 of the Waterford Municipal Code.

Adoption of Ordinance 2015-04 incorporates a comprehensive cross connection control program to ensure protection of the public potable water system at the service connection by containing within the consumer’s premises any actual or potential pollution or contamination which may result from backflow through cross-connections.

This ordinance is scheduled for introduction and first reading at a public hearing on June 4, 2015 and scheduled for a second reading and adoption by the Waterford City Council on June 18, 2015. This ordinance will become effective thirty (30) days from the date of adoption.

AYES: NOES: ABSENT: ABSTAIN:

CITY OF WATERFORD

______MICHAEL VAN WINKLE, Mayor

ATTEST:

______LORI MARTIN, City Clerk

APPROVED AS TO FORM:

______CORBETT J. BROWNING, City Attorney

TO: Lisa Freitas - Mid Valley Publications – Legal Ads

From: Lori Martin, City Clerk, City of Waterford

Date: May 19, 2015

Re: Public Hearing Notice to be published on Tues 06/02/15

NOTICE OF PUBLIC HEARING

Copies and a complete text of the Ordinance are available at City Hall, 101 E Street, Waterford, CA for review.

Public Hearing Item 4c June 18, 2015 Carla Jauregui, Community Development Specialist City Council Staff Report

Approve Amendment to WMC 15.42, “Public Nuisance”, Section 15.42.120, “Boarded Building- Defined”

SUMMARY: Ordinance 2015-05 amends chapter 15.42,”Public Nuisance”, of the Waterford Municipal Code, section 15.42.120. This amendment amends the current code to include “Secured windows or door openings on an unoccupied structure requires polycarbonate material securement specifications on all openings.”

FISCAL IMPACT: The city currently expends resources monitoring and responding to vacant buildings, because of the numerous health, welfare, safety and economic problems caused by them. Although the City currently incurs minimal short term expenses to board up properties where property owners are negligent, the City does recoup the cost through the lien process as well as through the Vacant Building Monitoring Fee.

ANALYSIS: The City currently has at least 31 vacant buildings, most of which are within residential neighborhoods. Currently our municipal code requires these buildings be maintained, including landscaping, exterior maintenance, regular removal of all exterior trash, debris, graffiti and it requires them to be maintained in a safe orderly manner and not contribute to blight conditions. Although maintenance of the property is a key component to relieving blight in the neighborhood, the method of boarding has a large impact on the neighborhood as well.

Vacant buildings often attract transients and criminals; use of these buildings by the aforementioned creates a health and safety risk, especially if the buildings have been disconnected from utilities. Vacant buildings which are simply boarded up for a long period of time with plywood very often discourage economic development, disrupt neighborhood stability and promote visual blight conditions, all of which interfere with the rights of neighboring property owners and occupants to the full use and enjoyment of their property.

With the number of foreclosures and vacant buildings in the City, and those buildings being used to harbor illegal activity by providing an out of view safe haven for these activities, staff is proposing to revise the municipal code to include any and all windows and doors to be boarded with clear polycarbonate material to provide a clear view into the property, aiding law enforcement as a crime deterrent while preserving the quality of the neighborhood by providing a more aesthetically pleasing property.

The cost of such changes may range depending on if the owner is doing the work themselves or if a contractor is involved, prices range from $395 to $1200 per home, depending on the amount of openings meeting the requirement. For example a property with one door and two 60’x96’ windows will cost approximately $733. While this cost is approximately double the cost of plywood, the clear polycarbonate material lasts longer, is more durable and doesn’t have to be replaced like plywood. It can withstand prying, bricks and sledgehammers, as evidenced by numerous videos and news articles of cities and counties who already use the material on their vacant buildings.

Staff is recommending all current and future vacant buildings be converted to polycarbonate within 30 days from the adoption of the changes. Compliance will be implemented through the application of the Waterford Municipal Code chapter 1.18 “Administrative Penalties”.

PROCESS: Ordinance 2015-05 is before the City Council at the June 18, 2015 council meeting for a public hearing to consider approving the introduction and First Reading by title only. Thereafter, a summary of the Ordinance will be published in the Waterford News. The Ordinance is scheduled to come back to the City Council as a public hearing item at the July 2, 2015 council meeting to consider the second reading by title only and adoption of Ordinance 2015-05.

Thereafter, within 15 days of passage and adoption the Ordinance Summary will be published in the Waterford News together with the names of the members of the City Council voting for and against same. This ordinance will become effective and be in full force on and after thirty (30) days of its passage and adoption.

ATTACHMENTS:

 Ordinance 2015-05  Ordinance Summary  Public Hearing Notice  Before and After Photos

ORDINANCE NO. 2015-05

AN ORDINANCE OF THE WATERFORD CITY COUNCIL AMENDING WATERFORD MUNICIPAL CODE TITLE 15, CHAPTER 15.42 ENTITLED “PUBLIC NUISANCE”

WHEREAS, the City of Waterford is amending Title 15, Chapter 15.42. entitled “Public Nuisance” to the Waterford Municipal Code by amending WMC Section 15.42.140

THE CITY COUNCIL OF THE CITY OF WATERFORD, COUNTY OF STANISLAUS, STATE OF CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1: Title 15, Chapter 15.42 entitled “Public Nuisance” is amended to read as follows:

Stricken through text represents deletions to the Waterford Municipal Code, and underlined text represents additions to the Waterford Municipal Code.

TITLE 15

CHAPTER 15.42

15.42.140 Method of boarding. All windows, doors and openings shall be secured as per the board up specifications maintained by the city’s community development department. Secured window or door openings on an unoccupied Formatted: Font: (Default) Times New Roman, structure require polycarbonate material securement specifications on all openings. Other like materials 11 pt may be acceptable subject to staff’s discretion. Existing unoccupied structures shall comply with specifications within thirty (30) day’s notice, unless additional time is granted by the building official or designee. (Ord. 05-02 §1).

SECTION 2, Validity: If any section, subsection, sentence, clause, word, or phrase of this ordinance is held to be unconstitutional or otherwise invalid for any reason, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause, word, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, words, or phrases be declared invalid or unconstitutional.

SECTION 3, Enactment: This ordinance shall become effective and be in full force on and after thirty (30) days of its passage and adoption, and prior to the expiration of fifteen (15) days from the passage and adoption thereof, shall be published in the City of Waterford, County of Stanislaus, State of California, together with the names of the members of the City Council voting for and against the same.

The foregoing ordinance was passed and adopted by the City Council of the City of Waterford, County of Stanislaus, State of California, at a regular meeting thereof held on the

AYES: NOES: ABSTAIN: ABSENT:

CITY OF WATERFORD

MIKE VAN WINKLE, Mayor

ATTEST: APPROVED AS TO FORM:

LORI MARTIN CORBETT J. BROWNING City Clerk City Attorney

SUMMARY OF ORDINANCE 2015-05

Ordinance 2015-05 amending Title 15, “BUILDING AND CONSTRUCTION” by amending Chapter 15.42 titled “PUBLIC NUISANCE”, of the Waterford Municipal Code. The proposed ordinance amends the language of Waterford Municipal Code Sections 15.42.120 by amending language to reflect that secured window or door openings on an unoccupied structure requires polycarbonate material securement specifications on all openings.

A certified copy of the full text is posted in the office of the City Clerk. Copies and a complete text of the ordinance are available at Waterford City Hall, 101 E Street, Waterford, CA for review.

This ordinance was adopted by the Waterford City Council on . The ordinance will be in effect thirty (30) days from the date of adoption.

AYES: NOES: ABSENT: ABSTAIN:

CITY OF WATERFORD

______Mike Van Winkle, Mayor

ATTEST:

______LORI MARTIN, City Clerk

APPROVED AS TO FORM:

______CORBETT J. BROWNING, City Attorney

TO: Lisa Freitas - Mid Valley Publications – Legal Ads

From: Lori Martin, City Clerk, City of Waterford

Date: June 4, 2015

Re: Public Hearing Notice to be published on Tues 06/16/15

NOTICE OF PUBLIC HEARING

Notice is hereby given that a public hearing will be held by the City Council of the City of Waterford in the Council Chambers at a regular meeting thereof on June 18, 2015 and July 2, 2015 at or about 6:30pm.

The City Council will consider an amendment to Chapter 15.42, “Public Nuisance” of the Waterford Municipal Code. The proposed ordinance amends the language in Waterford Municipal Code Section 15.42.120 “Boarded building-Defined.”

The City Council will consider amending the language to reflect that secured window or door openings on an unoccupied structure requires polycarbonate material securement specifications on all openings.

Copies and a complete text of the Ordinance are available at City Hall, 101 E Street, Waterford, CA for review.

Polycarbonate vs. Plywood

Preserving our Neighborhoods

13519 Skyline Blvd. Waterford, CA Some Cities/Counties that currently have or are working on a Polycarbonate Ordinance:

 Fresno, CA  Phoenix, AZ  Cleveland, Ohio  Chicago, Illinois  Meadville, PA  Pittsford, NY  Citrus County, FL

Companies and Organizations that encourage polycarbonate on vacant buildings:

 Fannie Mae  Cyprexx Property Preservation  AACE-American Association of Code Enforcement  NAMFS-National Association of Mortgage Field Services  Mortgage Bankers Association Preserving Neighborhoods: The Community Speaks General Business 5a June 18, 2015 Tim Ogden, City Manager City Council Staff Report

Approve the Fiscal Year 2015-2016 Operating Budget

SUMMARY: After a public hearing on May 21, 2015 staff is prepared to submit to the City Council for approval the Operating Budget for Fiscal Year 2015-2016.

FISCAL IMPACT: The final budget reflects General Fund Revenues of $3,178,063 and expenses of $3,274,228. These estimates reflect an operating budget surplus of $13,181 that separate out for the first time operations versus non-operating (and financing charges) so as to better understand the use of funds.

The use of reserves for General Fund capital projects for non-operating expenses includes $290,000 for projects including: the citywide Transition Plan and related improvements ($50,000), City-wide Signage program ($25,000), Community Center upgrades ($40,000), and the River Parkway Project contingency account ($150,000). Additionally, $25,000 is budgeted for the S. Reinway Annexation of the River Parkway Project development, and is included in the operating budget. Certain budget reductions have been implemented overall, so the use of reserves will not result in any cash flow concerns, as the economy continues to recover.

Including the use of General Fund reserves for the capital projects, the budget reflects a FY deficit of ($96,165) and expects to end FY 2014/2015 with a deficit of ($26,918) when including the use of reserve for capital projects. The General Fund Reserves are expected to be $2,133,810 or 65% (the adopted reserve policy is 60%) of budgeted expenses at June 30, 2016.

Other City funds are tied to special or restricted revenue sources and are intended to be self-sufficient. New to this year’s budget are the water enterprise accounts for Waterford and Hickman pending the acquisition of both water systems anticipated to be effective June 30, 2015.

See the attached budget document for a complete listing of all funds and amounts, including a new high-level document summarizing all the funds.

ATTACHMENTS:  Resolution 2015-49  City of Waterford Operating Budget for FY 2015-2016

WATERFORD CITY COUNCIL RESOLUTION # 2015-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2015-2016

WHEREAS; the City Manager has worked with all departments in the preparation of the fiscal year 2015/2016 operating budget (“Operating Budget”) to present to the City Council for its approval; and,

WHEREAS; the City Council reviewed the proposed Operating Budget at a workshop on May 21st, 2015; and,

WHEREAS; the City Council has received the fiscal year 2015/2016 proposed Operating Budget for its consideration; and,

WHEREAS, the City Council has determined that it is necessary for the efficient management of the City that certain sums be appropriated to the various departments, offices, and activities of the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATERORD DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the fiscal year 2015/2016 Operating Budget, attached hereto is adopted.

SECTION 2. That the sums of money set forth in the Operating Budget are appropriated to the respective accounts and funds for expenditure during the 2015/2016 fiscal year for the items set forth in the Operating Budget.

SECTION 3. That the Classification and Compensation Index included in the 2015/2016 Operating Budget is approved.

SECTION 4. That the City Manager is authorized to move funds within a Fund in the Operating Budget without limitation, transfer between funds when less than $10,000, transfer of appropriations for capital items budgeted within the same fund, appropriation of any non-departmental revenues less than $5,000, increase appropriation where new or additional grant or non-economic based revenue is also increased, initiate professional service and maintenance contracts when budgeted and less than $25,000.

AYES: NOES: ABSTAIN: ABSENT:

CITY OF WATERFORD

______MICHAEL VAN WINKLE, MAYOR

ATTEST: APPROVED AS TO FORM:

LORI MARTIN, MMC CORBETT J. BROWNING City Clerk City Attorney

Well Site #244 at Welch St. & Tim Bell Rd.

Fiscal Year 2015 - 2016 Operating Budget

Adopted June 18, 2015 City of Waterford Fiscal Year 2015-2016 Budget Table of Contents

City Manager’s Message...... 3

Budget Guide...... 6

Financial Policies...... 10

Budget Summary By Fund...... 12

General Fund Budget...... 13

General Fund Forecast...... 18

Other Governmental Funds Budget...... 19

Capital Improvement Funds Budget...... 24

Enterprise Funds Budget...... 25

Fiduciary Funds Budget...... 30

Capital Improvement Project Program...... 31

Inter-Fund Transfers...... 32

Inter-Fund Loans ...... 33

Staffing Allocations...... 34

Investment Policy...... 35

City of Waterford 101 E STREET WATERFORD, CALIFORNIA 95386 (209) 874-2328

June 18, 2015

TO: Mayor and City Council FROM: Tim Ogden, City Manager SUBJECT: Operating Budget Transmittal Letter for FY 2015-2016

Overview Please accept the Fiscal Year (“FY”) 2015/2016 budget for your consideration and approval. This budget represents the continued efforts of the administration at City Hall, and the implementation of policy direction given over the last several years.

The financial capability of a city is directly related to the strength and capability of the local, state, and national economy. The economy appears to be rounding the recessionary corner, but it will yet be a few years before the pre-recession revenue peaks are again visible with our property tax revenue, although sales tax revenue is at an all-time high. The City’s financial condition is sound, with funds in reserves and key revenue sources climbing upward. Factors outside our control include national and state influences over our local control.

The City’s General Fund budget for FY 2015/2016 reflects a deficit of ($96,165) and expects to end 2014/2015 with a deficit of ($26,918) when including the use of reserve for capital projects, otherwise, the operating budgets would have surpluses of $13,181 for FY 2015/2016 and $10,335 for FY 2014/2015.

The use of reserves for capital projects includes $290,000 a variety of projects including the Transition Plan and related improvements, City-wide Signage, Community Center upgrades, and the River Parkway Project local match to a state grant. Certain budget reductions have been implemented, but the subsidy anticipated will not drive the reserves into a cash flow danger zone.

Management has been making diligent efforts to control expenses and attend to core city services, but control over revenue sources is very limited making both estimating and balancing the budget challenging. In fact, the reserves have grown significantly during the Great Recession, and appropriate use of those reserves for ongoing maintenance of facilities and one time projects are appropriate. Additionally, the estimated reserve fund balance at the end of FY 2015/2016 is 65% of budgeted expenses. This balance meets the 60% reserve policy proposed in the Financial Policies. Council Goals Through City Council direction, and community feedback, I have identified a set of policy areas that appear to embrace the priorities of the City and this budget attempts to align these priorities with implementation funding. The priority areas focus on: • Public safety – ensuring community visibility and transparency • Parks, trail and recreation development – with the construction project awarded seeing the completion of the River Parkways Project • City infrastructure maintenance – continuing efforts to maintain and upgrade the Wastewater Treatment Facility and provide for as many streets and roads projects as possible with grant funding and other available resources • Water System Acquisition – complete the acquisition of the Waterford Water System from the City of Modesto and begin infrastructure improvements

As part of the budget I have updated the long-term Financial Policies for the City. These Policy guidelines will provide staff with a set of future principles in key management areas, and serve as a financial plan, policy statement and communication device wherein City Council led goals will spread through the entire organization.

Budget Highlights The City’s General Fund is expected to end FY 2014/2015 with an anticipated reserve fund balance of approximately $2.2 million. We are estimating that the General Fund will end FY 2015/2016 with a reserve fund balance of approximately $2.1 million or approximately 65% of the estimated operating expenses (exceeding the goal of 60%).

General Fund Major highlights of the proposed $3.1 million revenue budget include secured property tax and sales tax estimated to increase by 5.2% and 9%, respectively.

Major expenses of the proposed $3.1 million budget include almost half for the contract with Stanislaus County for police services, and the balance for administration, streets, planning, engineering, building inspection, and parks. The total General Fund Operating Expenditure decrease is expected to be about 1.3% or a reduction of $40,347.

Enterprise Funds The Wastewater Treatment Fund is continuing to operate with reasonable profits to continue to cover the operational and capital needs of the system. We are anticipating major changes in our Water Enterprise with the anticipated acquisition of the Waterford Water System from the City of Modesto. The acquisition should cost $2.6 million and escrow close by July 1, 2015 and begin operations of the complete Waterford Water System in the new fiscal year. Proposed revenues and expenses are included in the budget and would considerably change Water operations in the City of Waterford for today’s and tomorrow’s citizens.

Capital Improvement Projects Funds Due in part to diligent federal and state grant acquisition efforts, much of the capital improvement projects (“CIP”) will occur in streets, parks and wastewater programs. The CIP Parks fund has $1,287,500 budgeted for the River Parkway trail improvement project and and another $150,000 included in the General Fund. Over $400,000 is budgeted on continuing work on overlay projects throughout the City. Approximately $595,000 is budgeted on wastewater improvements tied to the last rate adjustment for upgrading the sewer lines. And

finally, with CDBG funds, phased improvements along La Gallina Ave. of $495,000 will bring curbs, gutters, and sidewalks to this revitalized area.

Conclusion We are facing challenging times, but the future looks promising. Success in these uncertain times will require hard work, an unyielding focus, a sustainable level of energy by staff as well as Council over a multi-year period. Given these challenges I look forward to working with the City Council and the wonderful community of Waterford to ensure that the City’s future reflects the City Council’s vision.

I would also like to give my thanks to the skilled and hard-working city staff for their commitment to meeting the challenges and opportunities before us.

Respectfully submitted,

Tim Ogden City Manager City of Waterford

BUDGET GUIDE

The budget guide is provided as an overview of the various sections of the City of Waterford’s annual budget. It describes the structure of the City’s finances and the budget.

The budget is the City’s fundamental policy document. It describes the City’s goals and details how resources are allocated to achieve these goals. In addition, the budget serves as the annual financial plan, an operations guide and a communication tool.

THE BUDGET CONSISTS OF:

Budget Message: The Budget Message is the City Manager’s transmittal letter submitting the budget to the City Council. The Budget Message summarizes the City’s current and long-term financial position, highlights new programs and organizational changes addressed in the budget and outlines the financial challenges facing the City. Current City financial policies are also described, and an organization chart is included.

Revenue and Expenses By Fund: This section provides detailed revenue and expense projections for all City Funds. Revenue related accounts categorize the type of income received by the City and are specific to the specific source. Expenses are detailed by Fund and Department. Both revenues and expenses include historical data for the past 3 years and an estimate for the current fiscal year not yet completed. The City’s General Fund is organized into key operating functions including: • Administration • Building & Neighborhood Serv. • City Council • Planning • Police Services • Museum • Public Works Administration • Community Center • Streets/Drainage • Parks

The Special Revenue Funds include the budgets for Gas Tax, Grant Funding, Local Transportation, and a variety of budgets related to specific revenue sources.

The Enterprise Funds include the budgets for the Water Systems, Wastewater Treatment Plant, and the Waterford Public Financing Authority.

Other budgets included are the Capital Improvement Funds and the Fiduciary Funds.

Both expenditure and revenue accounts are closely tied with current practices used in governmental budgeting and accounting standards.

Departmental expenses and revenues are grouped into accounts. These detailed accounts provide the accounting and management structure for operations and monitoring throughout the Fiscal Year. BUDGET GUIDE

Payroll expenses include employee related accounts that include personnel costs for permanent full-time and part-time salaries, overtime, Standby and Special Duty pay, FICA, Retirement, Health Insurance and Worker’s Compensation.

Professional services accounts includes legal, accounting, finance, engineering and a variety of consulting and other professional services, contract repair and maintenance, utility charges, training and memberships, equipment rentals, insurance and employment services.

Supply accounts provide the means to purchase items for repair and maintenance, operational activities such as special department expenses, uniforms, and office supplies.

Intergovernmental charges include transfers in and out of funds, administrative charges, which represent inter-fund transfers for services rendered.

Debt Service includes principal and interest payments on outstanding debt.

Capital Outlay includes expenditures for tangible fixed assets including land, buildings, furniture, equipment and City vehicles.

Capital Improvement Program: These capital expenditures are budgeted as funds and stand as separate accounting and management entities. Departments organize these projects and the City Council approves funding on a yearly basis. The Capital Improvement Program is also a tool for planning future projects and proposed projects. This listing may change as it is often dependent on a funding source that may or may not be funded.

Staffing Allocation and Salary Table : The staffing allocation details the positions contained in the City’s budget and provides a listing of contracted services. The salary table reflects the current pay structure of the employees.

STRUCTURE OF THE CITY’S FINANCES

The City’s finances are structured in a variety of funds that are the basic accounting and reporting entities in governmental accounting. The funds that comprise the budget are grouped into two major categories, Governmental Funds and Proprietary Funds. The purpose of each of the various funds within these two categories is described below:

BUDGET GUIDE

Governmental Funds

Governmental Funds include Tax Supported Funds and Special Revenue Funds. They are accounted for under the modified accrual basis of accounting.

Tax Supported Funds includes the General Fund and the Maintenance Districts. The General Fund is the primary operating fund for governmental services, funding traditional tax-supported activities such as law enforcement and community development. The Maintenance Districts are funded through special assessments and provide storm drain facility maintenance, street lighting and in some cases continuing care of the landscaping in the common areas in the district.

Special Revenue funds include the Gas Tax, Local Transportation, Impact Fee Funds and the Lighting and Landscaping Districts. The use of Special Revenue Fund resources are legally restricted for specific purposes.

Proprietary Funds

Proprietary Funds include Enterprise Funds. They are accounted for under the full accrual basis of accounting.

Enterprise Funds, including the Water Systems, Wastewater Treatment Plant, and the Public Financing Authority are used to account for operations that are self-supporting with user fees covering expenditures.

BASIS OF ACCOUNTING

This budget is uniformly presented on a governmental-type (“modified accrual”) accounting basis, which focuses on the use of the City’s expendable resources, rather than determining net income. The City’s enterprise funds, which are financed and operated in a manner similar to business enterprises, are accounted for on an accrual accounting basis. Accrual accounting records revenues when they are earned, versus when cash is received and expenditures are recorded when goods and services are received.

THE ANNUAL BUDGET PROCESS

The City’s annual budget is prepared on a July 1 to June 30 fiscal year basis. The budget preparation is an ongoing process, which includes the phases of development, proposal, public workshop, adoption, monitoring, and mid-year adjustments, and occasional new or amended allocations at publicly noticed City Council meetings.

The budget development phase typically begins in March with the preparation of revenue estimates and budget needs. City Staff prepare budgets for which they BUDGET GUIDE

are responsible. The City Manager reviews the proposals with departmental managers and makes final adjustments. The proposed budget is then submitted to the City Council in May at a City Council workshop. At this time, the Council hears from the City Manager and department managers regarding budget requests and recommendations. Prior to June 30, the City Council holds public hearing(s) on the budget and then adopts the final budget by resolution. The adopted budget takes effect on July 1, the first day of the new fiscal year.

After the budget is adopted, the City enters the “budget monitoring” phase. The City’s line item budget is controlled throughout the year by the monitoring of all expenditures by City staff and department managers to ensure that funds are used in an approved manner. Adjustments to expenditures within or between departmental budgets are accomplished on an as-needed basis administratively throughout the year with the approval of the City Manager. City Council approval is required for additional appropriations from fund balances or for new revenue sources. A mid-year and year-end budget adjustment process is utilized should there be significant changes needing a comprehensive assessment.

City of Waterford Financial Policies

Effective June 18, 2015

1. General Fund Reserves : The Waterford City Council target for the General Fund reserve level is 60% of the total appropriations. This is to protect the General Fund against fluctuations in major revenue sources and provide time to adjust budget levels if adverse economic conditions arise.

2. Enterprise Funds : Each Enterprise and non-General Fund operations should be self- funding and should carry reserve levels and rate structures that are adequate to protect against fluctuating revenue levels, operational cost impacts, and long-term capital infrastructure requirements.

3. Enterprise Funds – Allowance for Doubtful Accounts: The City has established a policy for the allowance for doubtful accounts for the Enterprise Funds at 15% of accounts receivables, and will be adjusted as a part of the yearend close out process.

4. CIP Enterprise Funds Reserve Transfer : The Wastewater Treatment Plant Fund and the Water Enterprise Funds will retain in unrestricted fund balance only 25% of annual budgeted expenses. Any remaining amounts will be transferred to CIP Reserves for each fund type and held for capital improvement projects in that fund. This transfer will be computed and budgeted for each year in the funds with the actual transferred amount based on yearend actuals.

5. Inter-fund loans : Loans between funds or from fund reserves should be evaluated and considered in light of multi-year business plans that demonstrate a reasonable ability to repay. The annual budget should detail all inter-fund loans and their conditions of repayment. Inter-fund loans should be repaid as soon as financially feasible at an interest rate at least equal to what the advancing fund would earn if the loan were not made. Loans are to be recorded on the balance sheet and articulated in the financial statement notes section.

6. Inter-fund transfers and charges : Transfers between funds should be charged on the basis of actual costs, not on budget estimates to ensure proper cost allocation. Charges for Internal Service Funds may be charged at budget estimates because these internal operations have long range plans that may require the build- up of balances for infrastructure maintenance and long-term purposes.

7. Fees and changes for service : Fees and charges should reflect the fair and approximate cost of providing those services. They should be updated regularly and should reflect the impact of inflationary CPI cost increases, and not exceed the actual cost. General tax revenue should primarily support basic services to all members of the community. Fees and charges are not basic services and they should reflect the cost of providing those special services, which are generally not used by the typical citizen. City of Waterford Financial Policies

Effective June 18, 2015

8. Purchasing : The City will adhere to all Government Code requirements for Public Works projects which require a bid process for any contracts over $5,000. For all other items not dictated by code the City Manager will have authority to contract for any good or service that is in the adopted budget and less than $20,000. All other items in excess of $20,000 will require a request for proposal process unless the service or good is unique and enough vendors are not available to provide proposals, and City Council authorization.

9. Grant Management : Grant applications that need City Council authorization and resolutions will be agendized for approval; grants of less than $50,000 will be submitted as needed, and when the timing of application is critical. Budgets will reflect awarded grants only.

10. Budget items requiring City Council action : a. Appropriation from reserves b. Transfers between funds when greater than $10,000 c. Appropriation of any non-departmental revenues greater than $5,000 d. Inter-fund loans e. Creation of a new CIP project or changes to existing CIP appropriations

11. Budget items delegated to the City Manager : a. Transfer between budgeted activities or departments within a fund b. Transfer of appropriations for capital items budgeted within the same fund c. Increase appropriation where new or additional grant or non-economic based revenue is also increased d. Initiate professional service and maintenance contracts when budgeted and less than $25,000.

12. Budget items delegated to Department Managers : a. Allocation of appropriations within their department fund b. Monitoring and achieving departmental revenue and expenditure estimates c. Planning, recommending, and implementing long-range proposals for operations they are assigned to manage

13. Budget responsibilities delegated to Waterford Citizens: a. Get educated about public financing and participate in the city’s budgeting and auditing processes b. Be responsible citizens and honor financial obligations for city services c. Shop local to help preserve funding for city services d. Volunteer in civic activities and help minimize impacts the city budget

14. Investment Strategies: See attached Investment Policy adopted August 16, 2012. City of Waterford Budget Summary - By Fund 2015-2016 Budget

Fund Beginning Fund Budgeted Budgeted Budgeted Ending Fund Number Balance Revenues Expenses Fund Balance General Fund 1010 2,229,975 3,178,063 3,274,228 2,133,810 Abandoned Vehicle Abatement 2010 14,429 11,000 11,000 14,429 CDBG - Rehab 2030 125,825 1,800 127,625 0 Gas Tax 2050 12,278 193,554 205,000 832 Local Transportation 2270 0 142,000 142,000 0 Housing Rehab Revolving Loans 2060 31,110 450 0 31,560 HCD Home Program 2070 223,215 3,500 27,456 199,259 HOME Consortium 2072 0 0 0 0 CDBG Consortium 2080 1,183 495,000 495,000 1,183 Impact Fee Administration and Planning 2091 246 0 0 246 Impact Fee City Facilities 2092 269 0 0 269 Impact Fee Drainage 2110 5,434 0 0 5,434 Parkland Dedication In Lieu 2130 0 0 0 0 Impact Fee Police 2151 418 0 0 418 Impact Fee Public Works 2170 7,477 0 0 7,477 Impact Fee Traffic 2171 71,830 900 0 72,730 Impact Fee Wastewater 2191 0 0 0 0 Lighting and Landscaping District 2210 0 89,564 89,564 0 Lighting District 2230 38,612 28,600 60,338 6,874 CIP Streets 6310 61,409 400,000 400,000 61,409 CIP Parks 6580 (7,043) 1,287,500 1,287,500 (7,043) Wastewater Treatment Operations 5050 217,110 963,300 1,004,390 176,020 Wastewater Treatment CIP 4350 903,760 253,100 595,270 561,590 River Pointe Water System Operations 5070 3,420 155,000 135,892 22,528 Waterford Water System Operations 5071 0 1,169,505 1,056,228 113,277 Hickman Water System Operations 5072 0 106,725 81,820 24,905 Waterford Water System CIP 5075 0 3,266,000 3,262,019 3,981 Hickman Water System CIP 5076 0 529,000 528,920 80 Public Financing Authority 5090 30,566 466,564 445,346 51,784 RDA Successor 2330 251 95,000 94,706 545

All Funds Total 3,971,774 12,836,125 13,324,302 3,483,597 City of Waterford General Fund Budget 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Operating Revenues 1010-110-5020 Property Tax - secured 239,044 243,303 247,285 290,000 305,000 15,000 5.2% 1010-110-5030 Property Tax - unsecured 13,292 13,661 13,346 16,500 17,000 500 3.0% 1010-110-5040 Supplemental SB13 0 3,259 7,575 6,000 6,000 0 N/A 1010-110-5050 Prop 1A Securitization Revenue 0 0 2,762 0 0 0 0.0% 1010-110-5060 ERAF Contribution Adjustment 0 (14,430) 0 0 0 0 0.0% 1010-110-5065 Property Tax Admin Fees (17,274) 17,159 42,894 (5,100) (5,500) (400) 7.8% 1010-110-5080 Other Property Taxes 145 26 16 0 0 0 0.0% 1010-110-5081 RDA Housing Distribution 110,513 712 0 0 0 0 0.0% 1010-110-5110 Sales & Use Tax 318,484 324,612 380,975 390,000 425,000 35,000 9.0% 1010-110-5111 In-lieu Sales Tax 99,171 115,116 121,987 115,000 121,000 6,000 5.2% 1010-110-5120 Utility Users Tax 562,995 572,168 582,322 585,000 570,000 (15,000) -2.6% 1010-110-5130 Franchise Fees 114,223 144,474 105,048 104,000 102,000 (2,000) -1.9% 1010-110-5140 In-lieu Tax Payments 0 0 17,160 7,160 7,203 43 0.6% 1010-110-5160 Real Property Transfer Tax 14,085 4,971 8,142 7,700 8,000 300 3.9% 1010-110-5260 Business License Fees 17,160 17,018 17,242 17,500 17,500 0 N/A 1010-110-5590 Other Lic. & Permits Fees 1,870 1,585 2,836 1,500 1,300 (200) -13.3% 1010-110-5670 Homeowners Property Tax Relief 4,129 4,019 3,806 3,000 3,500 500 16.7% 1010-110-5730 Motor Vehicle In-lieu VLF 0 4,542 4,817 3,631 3,700 69 1.9% 1010-110-5731 Property Tax In-lieu of MVLF 478,506 454,558 484,221 564,000 567,887 3,887 0.7% 1010-110-5770 State Mandate Reimbursement 0 0 3,197 7,545 3,200 (4,345) -57.6% 1010-110-5800 Other Misc State Grants 6,575 2,671 6,959 0 0 0 0.0% 1010-110-6330 Allocated Interest Earnings 5,210 24,548 20,909 18,000 16,500 (1,500) -8.3% 1010-110-6480 Lien Release Fees (132) (219) 58 150 (200) (350) -233.3% 1010-110-6560 Other Misc Revenues 1,713 13,443 18,316 16,286 17,100 814 5.0% 1010-110-6561 Event Revenue 0 0 1,200 0 1,875 1,875 0.0% 1010-110-6910 Transfers In 391 0 44,172 40,000 0 (40,000) -100.0% 1010-110-6950 Admin Allocation Transfer In 244,605 311,068 281,602 307,004 345,263 38,259 12.5% 1010-130-6560 Other Misc Revenues 0 0 750 0 0 0 0.0% 1010-210-5150 Prop 172 Public Safety Tax 10,172 11,081 12,562 12,000 12,000 0 N/A 1010-210-5770 State Mandate Reimbursement 4,354 4,094 3,036 1,000 1,000 0 N/A 1010-210-5800 Other Misc State Grants 0 10,610 12,157 17,000 17,000 0 N/A 1010-210-5803 State COPS SLESF Grant 0 101,057 99,939 100,000 100,000 0 N/A 1010-210-6130 Police Report Fees 1,525 1,195 1,365 1,100 1,300 200 18.2% 1010-210-6140 Other Police Service Fees 504 251 212 500 500 0 N/A 1010-210-6220 Forfeitures 0 6,065 7,756 0 5,000 5,000 0.0% 1010-210-6240 Traffic Violators School 3,273 3,387 5,739 4,000 4,500 500 12.5% 1010-210-6250 Vehicle Code Fines 23,276 16,129 15,595 20,000 20,000 0 N/A 1010-210-6260 Other Fines, Forfeitures 1,771 1,966 1,389 1,000 1,000 0 N/A 1010-210-6910 Transfers In 106,857 6,745 0 15,000 10,000 (5,000) -33.3% 1010-300-5630 County Solid Waste Payments 1,077 2,141 2,463 4,449 2,950 (1,499) -33.7% 1010-300-6560 Other Misc Revenues 2,127 185 0 0 0 0 0.0% 1010-300-6910 Transfers In 0 0 5,549 0 0 0 0.0% 1010-310-6560 Other Misc Revenues 698 317 0 0 0 0 0.0% 1010-310-6910 Transfers In 365,060 327,741 378,548 396,286 347,000 (49,286) -12.4% 1010-410-5320 Building Fees - Residential 16,406 20,995 35,323 36,000 37,000 1,000 2.8% 1010-410-5340 State Fee 0 0 300 0 0 0 0.0% 1010-410-5350 Building Fees - Commercial 11,024 833 2,128 2,600 2,000 (600) -23.1% 1010-410-5420 SMIP Fee 168 113 193 15 140 125 833.3% 1010-410-5430 CBSC Fee 41 (23) 29 30 20 (10) -33.3% 1010-410-5590 Other Lic & Permit Fees 7,840 6,240 7,128 9,600 8,000 (1,600) -16.7% 1010-410-6260 Other Fines, Forfeitures 316 0 1,905 17,000 1,200 (15,800) -92.9% 1010-430-5590 Other Lic & Permit Fees 2,350 2,600 4,550 4,000 4,500 500 12.5% 1010-430-5800 Other Misc State Grants 11,437 47,653 18,543 0 0 0 0.0% 1010-430-6910 Transfers In 7,724 0 0 0 0 0 0.0% 1010-460-5080 Other Misc State Grants 11,717 8,619 9,760 10,000 10,000 0 N/A 1010-550-6560 Other Misc Revenues 472 0 1,000 9,000 0 (9,000) -100.0% 1010-560-6010 Rental Income 7,886 6,897 7,335 6,000 7,500 1,500 25.0% 1010-560-6560 Other Misc Revenues 0 0 0 20,475 25,475 5,000 24.4% 1010-580-5800 Other Misc State Grants 10,000 17,143 33,232 31,000 20,000 (11,000) -35.5% 1010-580-6560 Other Misc Revenues 459 9,450 7,753 8,325 6,650 (1,675) -20.1% 1010-580-6910 Transfers In 33,373 0 0 0 0 0 0.0% Total General Fund Operating Revenues 2,856,612 2,871,748 3,095,086 3,221,256 3,178,063 (43,193) -1.3% City of Waterford General Fund Budget 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Operating Expenses Administration 1010-110-7020 Payroll - Salary 156,335 163,526 175,695 171,111 173,144 2,033 1.2% 1010-110-7021 Payroll - Overtime 963 1,558 1,514 1,646 890 (756) -45.9% 1010-110-7025 Payroll - Part-time 13,882 11,876 11,684 15,390 32,916 17,526 113.9% 1010-110-7110 PERS Cost 48,662 30,539 26,275 29,472 25,946 (3,526) -12.0% 1010-110-7120 Insurance - Dental/Medical/Vision 49,413 20,540 27,308 24,546 24,919 373 1.5% 1010-110-7130 Payroll Taxes 5,545 3,969 3,529 3,172 4,974 1,802 56.8% 1010-110-7140 Workers Comp Insurance 31,959 46,912 53,111 57,000 68,441 11,441 20.1% 1010-110-7190 Professional Services - Other 54,960 45,093 54,066 48,894 85,100 36,206 74.0% 1010-110-7191 Professional Services - Acctg (975) 0 (505) 0 0 0 0.0% 1010-110-7192 Professional Services - Audit 44,305 48,761 29,018 26,350 28,079 1,729 6.6% 1010-110-7194 Professional Services - Legal 39,632 43,094 40,641 45,000 46,000 1,000 2.2% 1010-110-7200 Bank Fees and Service Charges 5,286 5,144 5,088 5,000 5,200 200 4.0% 1010-110-7260 Liability & Property Damage Insur 32,720 47,472 49,609 55,393 61,627 6,234 11.3% 1010-110-7300 Other Contracts/Services 630 0 0 0 0 0 0.0% 1010-110-7410 Property Maintenance 27 268 350 1,000 1,000 0 N/A 1010-110-7420 Equipment Maintenance 0 566 0 4,200 4,200 0 N/A 1010-110-7510 Operating Supplies 7,914 25,922 30,768 30,000 20,000 (10,000) -33.3% 1010-110-7520 Fuel 1,592 2,032 1,534 1,800 1,800 0 N/A 1010-110-7540 Postage & Mailing 2,842 3,153 2,842 3,000 3,000 0 N/A 1010-110-7580 Uniforms & Protective Clothing 30 30 30 30 0 (30) -100.0% 1010-110-7600 Leases and Rental 12,558 12,098 11,545 11,000 12,500 1,500 13.6% 1010-110-7610 ASP Software Fee 35,793 32,047 30,684 45,000 33,000 (12,000) -26.7% 1010-110-7710 Advertising & Legal Notices 2,225 2,540 4,709 8,000 7,500 (500) -6.3% 1010-110-7720 Dues & Publications 11,480 11,108 11,235 16,000 14,000 (2,000) -12.5% 1010-110-7730 Other Miscellaneous Services 9,264 7,914 5,404 5,200 1,000 (4,200) -80.8% 1010-110-7731 Community Events 0 3,182 6,736 4,000 4,000 0 N/A 1010-110-7735 Unabsorbed RDA Costs 17,374 0 0 0 0 0 0.0% 1010-110-7740 Training and Development 569 1,357 1,395 2,700 3,500 800 29.6% 1010-110-7750 Travel, Meetings, Etc. 2,525 2,635 1,057 3,000 2,500 (500) -16.7% 1010-110-7770 Cash Overages/shortages 20 (76) 0 0 0 0 0.0% 1010-110-7810 Communications/telephone 10,075 13,108 16,644 18,100 18,000 (100) -0.6% 1010-110-7820 Electric, Gas & Water 14,907 16,657 7,901 5,000 5,000 0 N/A 1010-110-7850 Refunds/reimb/write-offs 322 199 (50) 0 0 0 0.0% 1010-110-9010 Debt Service - Principal 0 0 0 0 5,287 5,287 0.0% 1010-110-9110 Debt Service - Interest 0 0 0 0 1,748 1,748 0.0% 1010-110-9250 Transfers Out 24,800 0 0 100,000 0 (100,000) -100.0% Total Administration Operating Expenses 637,634 603,224 609,817 741,004 695,271 (45,733) -6.2% City Council 1010-130-7020 Payroll-salary 8,550 9,750 8,285 10,800 10,800 0 N/A 1010-130-7130 Payroll Taxes 1,160 1,282 1,090 1,172 1,172 0 N/A 1010-130-7510 Operating Supplies 2,452 0 797 500 500 0 N/A 1010-130-7710 Advertising & Legal Notices 0 238 294 500 0 (500) -100.0% 1010-130-7720 Dues & Publications 1,770 1,950 1,909 2,150 2,150 0 N/A 1010-130-7750 Travel, Meeting, Etc. 1,907 1,533 1,556 1,500 2,000 500 33.3% 1010-130-7870 Election Costs 0 3,837 8,555 3,900 0 (3,900) -100.0% Total City Council Operating Expenses 15,839 18,590 22,486 20,522 16,622 (3,900) -19.0% Police Services 1010-210-7020 Payroll-salary 18,850 9,042 9,473 9,541 9,799 258 2.7% 1010-210-7025 Payroll Part-Time 0 3,934 0 0 3,120 3,120 0.0% 1010-210-7110 PERS Cost 3,733 1,567 1,396 1,537 1,312 (225) -14.6% 1010-210-7120 Insurance-Dental/Medical/Vision 1,287 1,011 1,318 1,107 1,105 (2) -0.2% 1010-210-7130 Payroll Taxes 319 574 153 154 333 179 116.2% 1010-210-7170 Law Enforcement Contract 1,196,596 1,235,212 1,359,465 1,326,551 1,370,000 43,449 3.3% 1010-210-7190 Professional Services-Stanislaus DEA 11,904 13,617 15,555 13,000 14,000 1,000 7.7% 1010-210-7191 Professional Services-Accounting 0 150 150 0 0 0 0.0% 1010-210-7410 Property Maintenance 337 0 0 0 0 0 0.0% 1010-210-7420 Equipment Maintenance 0 1,904 0 0 0 0 0.0% 1010-210-7430 Vehicle Maintenance 597 0 0 0 0 0 0.0% 1010-210-7510 Operating Supplies 141 1,075 213 0 0 0 0.0% 1010-210-7710 Advertising & Legal Notices 65 80 50 0 0 0 0.0% 1010-210-7730 Other Miscellaneous Services 282 282 929 1,100 1,100 0 N/A 1010-210-7750 Travel, Meetings, Etc. 0 25 0 0 0 0 0.0% 1010-210-7810 Communications/telephone 3,453 2,382 2,896 3,800 3,200 (600) -15.8% City of Waterford General Fund Budget 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change 1010-210-7820 Electric, Gas & Water 0 2,489 12,936 10,000 10,000 0 N/A 1010-210-9250 Transfers Out 0 0 0 0 0 0 0.0% 1010-210-9300 Admin Reimbursement 7,227 5,580 3,820 8,000 5,469 (2,531) -31.6% 1010-210-9402 AVA Admin Reimb Out 0 0 (6,938) 0 (4,200) (4,200) 0.0% Total Police Services Operating Expenses 1,244,791 1,278,924 1,401,416 1,374,790 1,415,238 40,448 2.9% Public Work Administration 1010-300-7020 Payroll-salary 35,570 42,286 35,294 28,984 29,766 782 2.7% 1010-300-7021 Payroll Overtime 10 79 93 0 0 0 0.0% 1010-300-7110 PERS cost 6,760 7,117 5,040 4,668 3,985 (683) -14.6% 1010-300-7120 Insurance-Dental/Medical/Vision 4,142 5,783 5,298 3,900 3,892 (8) -0.2% 1010-300-7130 Payroll Taxes 610 715 580 476 488 12 2.5% 1010-300-7190 Professional Services-other 9,641 0 0 46,000 30,000 (16,000) -34.8% 1010-300-7510 Operating Supplies 4,989 5,256 6,034 5,000 5,000 0 N/A 1010-300-9300 Admin Reimbursement 13,076 18,416 14,375 17,000 12,599 (4,401) -25.9% Total PW Administration Operating Expenses 74,798 79,652 66,714 106,028 85,730 (20,298) -19.1% Streets/Drainage 1010-310-7020 Payroll-salary 140,684 133,621 135,728 144,288 140,656 (3,632) -2.5% 1010-310-7021 Payroll Overtime 8,041 8,944 6,277 10,351 6,566 (3,785) -36.6% 1010-310-7110 PERS Cost 26,529 22,448 19,578 23,238 18,793 (4,445) -19.1% 1010-310-7120 Insurance-Dental/Medical/Vision 40,644 28,956 37,615 36,400 36,586 186 0.5% 1010-310-7130 Payroll Taxes 2,766 2,583 2,573 2,780 3,230 450 16.2% 1010-310-7190 Professional Services-Other 200 0 0 0 0 0 0.0% 1010-310-7196 Professional Services-Engineer 13,080 3,325 25,200 15,000 20,000 5,000 33.3% 1010-310-7420 Equipment Maintenance 0 0 0 1,500 1,500 0 N/A 1010-310-7430 Vehicle Maintenance 4,636 9,168 4,772 6,500 5,000 (1,500) -23.1% 1010-310-7510 Operating Supplies 18,962 26,791 27,771 25,000 26,000 1,000 4.0% 1010-310-7520 Fuel 9,138 8,815 9,153 9,200 9,500 300 3.3% 1010-310-7580 Uniforms & Protective Clothing 807 293 1,293 1,000 1,200 200 20.0% 1010-310-7710 Advertising & Legal Notices 1,398 0 0 500 500 0 N/A 1010-310-7720 Dues & Publications 30 0 0 150 150 0 N/A 1010-310-7730 Other Miscellaneous Services 1,925 1,136 2,984 1,393 1,750 357 25.6% 1010-310-7740 Training And Development 100 0 0 0 0 0 0.0% 1010-310-7810 Communications/telephone 1,224 1,347 1,459 2,000 1,600 (400) -20.0% 1010-310-7820 Electric, Gas & Water 13,524 9,734 10,298 16,000 16,000 0 N/A 1010-310-9250 Transfers Out 25,913 0 0 28,422 0 (28,422) -100.0% 1010-310-9300 Admin Reimbursement 55,457 62,221 57,358 73,104 59,536 (13,568) -18.6% Total Streets/Drainage Operating Expenses 365,058 319,382 342,059 396,826 348,567 (48,259) -12.2% Building & Neighborhood Services 1010-410-7020 Payroll-salary 5,861 2,462 26,727 21,880 23,727 1,847 8.4% 1010-410-7021 Payroll Overtime 46 26 31 468 472 4 0.9% 1010-410-7025 Payroll Part-Time 0 4,768 2,811 0 0 0 0.0% 1010-410-7110 PERS Cost 1,141 409 1,562 1,800 2,229 429 23.8% 1010-410-7120 Insurance-Dental/Medical/Vision 174 647 8,847 9,700 6,206 (3,494) -36.0% 1010-410-7130 Payroll Taxes 114 510 737 620 440 (180) -29.0% 1010-410-7160 Animal Control 52,133 37,982 54,148 41,187 25,258 (15,929) -38.7% 1010-410-7190 Professional Services-Other 29,540 32,080 31,761 32,000 30,000 (2,000) -6.3% 1010-410-7300 Other Contracts/services 85 157 265 0 0 0 0.0% 1010-410-7510 Operating Supplies 90 0 323 0 0 0 0.0% 1010-410-7850 Refunds/Reimbursements/Write-offs 0 0 450 0 0 0 0.0% 1010-410-9300 Admin Reimbursement 2,318 3,240 11,890 8,500 10,043 1,543 18.2% 1010-410-9402 AVA Admin Reimb Out (14,076) (14,270) 0 (11,000) (11,000) 0 N/A Total Building Services Operating Expenses 77,426 68,011 139,552 105,155 87,375 (17,780) -16.9% Planning 1010-430-7020 Payroll-salary 9,974 2,856 3,339 12,094 13,054 960 7.9% 1010-430-7021 Payroll Overtime 162 145 95 251 275 24 9.6% 1010-430-7110 PERS Cost 1,975 494 423 1,948 1,279 (669) -34.3% 1010-430-7120 Insurance-Dental/Medical/Vision 304 768 934 3,425 3,417 (8) -0.2% 1010-430-7130 Payroll Taxes 186 55 61 228 243 15 6.6% 1010-430-7195 Professional Services-Planning 38,253 76,626 37,143 40,000 65,000 25,000 62.5% 1010-430-7196 Professional Services-Engineer 1,210 940 1,350 0 0 0 0.0% 1010-430-7510 Operating Supplies 0 132 47 0 0 0 0.0% 1010-430-7710 Advertising & Legal Notices 535 0 622 0 0 0 0.0% 1010-430-7750 Travel, Meetings, Etc. 40 1,626 0 0 0 0 0.0% 1010-430-9300 Admin Reimbursement 4,020 1,296 1,414 1,200 5,525 4,325 360.4% City of Waterford General Fund Budget 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Total Planning Operating Expenses 56,659 84,938 45,428 59,146 88,793 29,647 50.1% Museum 1010-550-7020 Payroll-salary 0 0 322 3,800 927 (2,873) -75.6% 1010-550-7021 Payroll Overtime 0 0 18 179 111 (68) -38.0% 1010-550-7025 Payroll-Part time 0 0 0 0 2,487 2,487 0.0% 1010-550-7110 PERS Cost 0 0 38 455 139 (316) -69.5% 1010-550-7120 Insurance-Dental/Medical/Vision 0 0 1 750 311 (439) -58.5% 1010-550-7130 Payroll Taxes 0 0 4 57 189 132 231.6% 1010-550-7190 Professional Services - Other 0 0 4,200 0 0 0 0.0% 1010-550-7510 Operating Supplies 673 756 970 1,000 1,000 0 N/A 1010-550-7730 Other Miscellaneous Services 214 214 1,097 1,395 1,400 5 0.4% 1010-550-7820 Electric, Gas & Water 3,001 3,701 3,309 2,600 2,600 0 N/A 1010-550-9300 Admin Reimbursement 0 0 126 0 392 392 0.0% Total Museum Operating Expenses 3,888 4,671 10,085 10,236 9,556 (680) -6.6% Community Center 1010-560-7020 Payroll-salary 20,116 20,945 20,448 19,945 25,586 5,641 28.3% 1010-560-7021 Payroll Overtime 1,427 1,740 1,005 1,597 1,448 (149) -9.3% 1010-560-7025 Payroll-Part time 0 0 0 0 4,680 4,680 0.0% 1010-560-7110 PERS Cost 3,790 3,548 2,930 3,212 3,543 331 10.3% 1010-560-7120 Insurance-Dental/Medical/Vision 2,072 4,747 5,945 5,441 6,994 1,553 28.5% 1010-560-7130 Payroll Taxes 405 419 391 391 1,048 657 168.0% 1010-560-7190 Professional Services-Other 945 343 175 500 500 0 N/A 1010-560-7410 Property Maintenance 0 789 0 0 750 750 0.0% 1010-560-7420 Equipment Maintenance 500 0 0 0 500 500 0.0% 1010-560-7510 Operating Supplies 2,226 3,231 3,361 5,800 3,500 (2,300) -39.7% 1010-560-7580 Uniforms & Protective Clothing 50 52 53 100 500 400 400.0% 1010-560-7730 Other Miscellaneous Services 572 878 954 1,600 350 (1,250) -78.1% 1010-560-7810 Communications/telephone 189 70 70 150 150 0 N/A 1010-560-7820 Electric, Gas & Water 11,358 11,640 9,266 5,532 5,500 (32) -0.6% 1010-560-9010 Debt Service- Principal 0 0 0 939 8,688 7,749 825.2% 1010-560-9110 Debt Service-Interest 0 0 0 843 3,308 2,465 292.4% 1010-560-9300 Admin Reimbursement 7,962 9,931 8,742 7,600 12,811 5,211 68.6% Total Community Center Operating Expenses 51,612 58,333 53,340 53,650 79,856 26,206 48.8% Parks 1010-580-7020 Payroll-salary 84,613 74,409 66,832 49,952 49,131 (821) -1.6% 1010-580-7021 Payroll Overtime 5,341 6,557 3,984 4,178 4,205 27 0.6% 1010-580-7110 PERS Cost 15,903 12,542 9,610 8,045 6,988 (1,057) -13.1% 1010-580-7120 Insurance-Dental/Medical/Vision 20,190 14,920 17,842 14,603 15,259 656 4.5% 1010-580-7130 Payroll Taxes 1,718 1,531 1,371 1,085 1,088 3 0.3% 1010-580-7190 Professional Services-Other 750 0 587 0 0 0 0.0% 1010-580-7196 Professional Services-Engineer 4,420 1,554 0 2,000 1,000 (1,000) -50.0% 1010-580-7420 Equipment Maintenance 0 0 16,824 6,500 6,500 0 N/A 1010-580-7430 Vehicle Maintenance 2,113 343 114 2,000 2,000 0 N/A 1010-580-7510 Operating Supplies 7,815 7,841 20,016 15,000 9,000 (6,000) -40.0% 1010-580-7520 Fuel 5,838 5,125 4,935 3,500 6,000 2,500 71.4% 1010-580-7580 Uniforms & Protective Clothing 626 225 400 150 650 500 333.3% 1010-580-7600 Leases And Rentals 56,103 56,103 56,103 56,104 0 (56,104) -100.0% 1010-580-7710 Advertising & Legal Notices 50 0 90 0 0 0 0.0% 1010-580-7730 Other Miscellaneous Services 911 911 3,064 4,319 3,500 (819) -19.0% 1010-580-7810 Communications/telephone 315 488 300 500 500 0 N/A 1010-580-7820 Electric, Gas & Water 8,919 9,258 8,420 8,000 8,000 0 N/A 1010-580-9010 Debt Service- Principal 0 0 0 939 38,995 38,056 4052.8% 1010-580-9110 Debt Service-Interest 0 0 0 843 17,108 16,265 1929.4% 1010-580-9250 Transfers Out 59,031 26,540 0 129,000 150,000 21,000 16.3% 1010-580-9300 Admin Reimbursement 33,530 35,110 28,247 34,000 20,796 (13,204) -38.8% Total Parks Operating Expenses 308,186 253,457 238,739 340,718 340,720 2 0.0%

Total General Fund Operating Expenses 2,835,891 2,769,182 2,929,636 3,208,075 3,167,728 (40,347) -1.3%

General Fund Operating Surplus or (Deficit) 20,721 102,566 165,450 13,181 10,335 (2,846) -21.6% City of Waterford General Fund Budget 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Non-operating Capital Activity

Capital Expenses

Administration 1010-110-8020 Capital Purchases-Equip/furniture 6,627 5,369 85,584 11,800 30,000 18,200 154.2% Total Administration Capital Expenses 6,627 5,369 85,584 11,800 30,000 18,200 154.2%

Police Services 1010-210-8020 Capital Purchases-Equip/furniture 3,284 0 0 0 5,000 5,000 0.0% 1010-210-8060 Capital Assets - Police Modular 0 15,552 1,626 0 0 0 0.0% Total Police Services Capital Expenses 3,284 15,552 1,626 0 5,000 5,000 0.0%

Streets/Drainage 1010-310-8020 Capital Purchases-Equip/furniture 0 0 36,489 0 25,000 25,000 0.0% 1010-310-8290 Capital Purchases - street/drain 0 8,677 0 0 6,500 6,500 0.0% Total Streets/Drainage Capital Expenses 0 8,677 36,489 0 31,500 31,500 0.0%

Museum 1010-550-8060 Capital Assets - Buildings 0 0 0 24,600 0 (24,600) -100.0% Total Museum Capital Expenses 0 0 0 24,600 0 (24,600) -100.0%

Community Center 1010-560-8020 Capital Purchases-Equip/furniture 2,799 0 133,808 15,588 40,000 24,412 156.6% Total Community Center Capital Expenses 2,799 0 133,808 15,588 40,000 24,412 156.6%

Parks 1010-560-8020 Capital Purchases-Equip/furniture 0 12,143 620 11,000 0 (11,000) -100.0% Total Parks Capital Expenses 0 12,143 620 11,000 0 (11,000) -100.0%

Total Non-operating Capital Expenses 12,710 41,741 258,127 62,988 106,500 43,512 69.1%

Non-operating Capital Financing Sources

Administration 1010-110-9000 Proceeds from long term debt 0 0 81,421 13,464 0 (13,464) -100.0% 1010-560-9000 Proceeds from long term debt 0 0 140,136 9,425 0 (9,425) -100.0% Total Administration Capital Expenses 0 0 221,557 22,889 0 (22,889) -100.0%

Total Net Use of Fund Balance for Capital Expenses 12,710 41,741 36,570 40,099 106,500 66,401 165.6%

Total Surplus(Deficit) for the General Fund 8,011 60,825 128,880 (26,918) (96,165) (69,247) 257.3%

Beginning General Fund Balance 2,059,177 2,067,188 2,128,013 2,256,893 2,229,975 Ending General Fund Balance 2,067,188 2,128,013 2,256,893 2,229,975 2,133,810 (96,165) -4.3%

Total General Fund as a % of Budgeted Expenses 73% 76% 71% 68% 65% City of Waterford General Fund Forecast 2015-2016 Budget

Estimated Budget FY 2014-2015 FY 2015-2016 $ Change % Change

Beginning Fund Balance 2,256,893 2,229,975 (26,918) -1.2%

Revenues and Financing Sources (Note 1.) 3,244,145 3,178,063 (66,082) -2.0%

Expenditures and Capital Outlay (Note 2.) 3,271,063 3,274,228 3,165 0.1%

Net Increase (Decrease) (26,918) (96,165) (69,247) 257.3%

Ending Fund Balance 2,229,975 2,133,810 (96,165) -4.3%

Note 1: 2014-2015 Revenues included $221,557 in financing proceeds which were not expected to reoccur in 2015-2016.

Note 2: 2014-2015 had several large expenses which are not expected to reoccur including the completion of the OpTerra Solar/LED Project, funding of the Skate park, and deficits in the River Pointe water system which were subsidized by the General Fund. City of Waterford Other Governmental Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Abandoned Vehicle Abatement Revenues 2010-110-6330 Allocated Interest Earnings 37 136 199 0 0 0 0.0% 2010-210-5660 Abandoned Vehicle Abatement 12,590 12,842 12,896 11,000 11,000 0 N/A Total 2010 Revenues 12,627 12,978 13,095 11,000 11,000 0 N/A Expenses 2010-210-7191 Professional Services - Accounting 975 975 506 0 0 0 0.0% 2010-210-7192 Professional Services - Audit 870 1,625 850 0 0 0 0.0% 2010-210-9502 AVA Personnel Costs Reimb In 14,076 14,270 6,938 11,000 11,000 0 N/A Total 2010 Expenses 15,921 16,870 8,294 11,000 11,000 0 N/A Net of Revenues Over (Under) Expenses (3,294) (3,892) 4,801 0 0 Beginning Fund Balance 16814 13,520 9,628 14,429 14,429 Ending Fund Balance 13,520 9,628 14,429 14,429 14,429 CDBG - Rehab Grant Revenues 2030-110-6330 Allocated Interest Earnings 380 1,920 1,880 0 1,800 1,800 0.0% 2030-110-6430 CDBG Rehab Program Income 23,056 0 0 0 0 0 0.0% 2030-110-6910 Transfers In 0 0 0 0 0 0 0.0% Total 2030 Revenues 23,436 1,920 1,880 0 1,800 1,800 0.0% Expenses 0 2030-110-7020 Payroll-salary 0 0 0 0 0 0 0.0% 2030-110-7110 PERS Cost 0 0 0 0 0 0 0.0% 2030-110-7120 Insurance-Dental/Medical/Vision 554 0 0 0 0 0 0.0% 2030-110-7130 Payroll Taxes 0 0 0 0 0 0 0.0% 2030-110-7190 Professional Services - Other 265 205 155 0 0 0 0.0% 2030-110-7191 Professional Services - Accounting 0 0 0 0 0 0 0.0% 2030-110-7710 Advertising & Legal Notices 0 0 0 0 0 0 0.0% 2030-110-7881 Prog Income Disburs - Rehab 0 14,102 0 0 127,625 127,625 0.0% 2030-110-9250 Transfers Out 0 0 5,000 0 0 0 0.0% 2030-110-9300 Admin Reimbursement 0 0 0 0 0 0 0.0% Total 2030 Expenses 819 14,307 5,155 0 127,625 127,625 0.0% Net of Revenues Over (Under) Expenses 22,617 (12,387) (3,275) 0 (125,825) Beginning Fund Balance 118,870 141,487 129,100 125,825 125,825 Ending Fund Balance 141,487 129,100 125,825 125,825 0 Gas Tax Street Improvements Revenues 2050-110-6330 Allocated Interest Earnings 239 1,284 2,534 0 700 700 0.0% 2050-310-5680 Highway Users Gas Tax 2105/6/7 129,289 132,315 155,232 164,351 150,722 (13,629) -8.3% 2050-310-5710 Highway Users Gas Tax 2107.5 2,000 2,000 2,000 2,000 2,000 0 N/A 2050-310-5715 HUTA R&T 7360 119,143 69,607 122,320 92,027 40,132 (51,895) -56.4% Total 2050 Revenues 250,671 205,206 282,086 258,378 193,554 (64,824) -25.1% Expenses 0 2050-110-9250 Transfers Out 258,392 211,696 291,539 269,312 205,000 (64,312) -23.9% Total 2050 Expenses 258,392 211,696 291,539 269,312 205,000 (64,312) -23.9% Net of Revenues Over (Under) Expenses (7,721) (6,490) (9,453) (10,934) (11,446) Beginning Fund Balance 46,876 39,155 32,665 23,212 12,278 Ending Fund Balance 39,155 32,665 23,212 12,278 832 Local Transportation Revenues 2270-110-6330 Allocated Interest Earnings 8 537 835 0 0 0 0.0% 2270-310-5720 Local Transportation Fund 122,042 142,283 170,148 127,514 142,000 14,486 11.4% 2270-310-5791 Non-motorized Project Funds 0 0 8,842 24,448 0 (24,448) -100.0% Total 2270 Revenues 122,050 142,820 179,825 151,962 142,000 (9,962) -6.6% Expenses 0 2270-310-7192 Professional Services - Audit 0 875 0 0 0 0 0.0% 2270-310-9250 Transfers Out 122,050 141,945 179,825 151,962 142,000 (9,962) -6.6% Total 2270 Expenses 122,050 142,820 179,825 151,962 142,000 (9,962) -6.6% Net of Revenues Over (Under) Expenses 0 0 0 0 0 Beginning Fund Balance 0 0 0 0 0 Ending Fund Balance 0 0 0 0 0 Housing Rehab Revolving Loans Revenues 2060-110-6330 Allocated Interest Earnings 161 449 447 0 450 450 0.0% 2060-110-6430 HOME Rehab Program Income 0 0 0 0 0 0 0.0% Total 2060 Revenues 161 449 447 0 450 450 0.0% Expenses 0 2060-460-7190 Professional Services - Other 0 154 0 0 0 0 0.0% City of Waterford Other Governmental Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change 2060-460-7191 Professional Services - Accounting 0 0 0 0 0 0 0.0% 2060-460-7881 Program Income Disburs. Rehab 30,117 0 0 0 0 0 0.0% 2060-460-9250 Transfers Out 0 0 0 0 0 0 0.0% Total 2060 Expenses 30,117 154 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses (29,956) 295 447 0 450 Beginning Fund Balance 60,324 30,368 30,663 31,110 31,110 Ending Fund Balance 30,368 30,663 31,110 31,110 31,560 HCD Home Program Revenues 2070-110-6330 Allocated Interest Earnings 1,040 3,993 3,716 0 3,500 3,500 0.0% 2070-460-6310 Allocated Interest Earnings 0 0 3,552 0 0 0 0.0% 2070-460-5880 Home Program Loan Repayments 0 0 18,452 0 0 0 0.0% 2070-460-6910 Transfers In 0 0 0 0 0 0 0.0% Total 2070 Revenues 1,040 3,993 25,720 0 3,500 3,500 0.0% Expenses 2070-460-7020 Payroll - Salary 7,487 12,659 13,145 13,107 13,461 354 2.7% 2070-460-7025 Payroll Part-time 1,100 1,320 1,298 1,710 2,964 1,254 73.3% 2070-460-7110 PERS Cost 1,648 2,420 2,107 2,386 2,199 (187) -7.8% 2070-460-7120 Insurance-Dental/Medical/Vision 967 1,452 1,817 1,494 1,521 27 1.8% 2070-460-7130 Payroll Taxes 161 238 245 250 358 108 43.2% 2070-460-7190 Professional Services - Other 2,706 4,070 2,636 0 0 0 0.0% 2070-460-7192 Professional Services - Audit 0 0 0 0 0 0 0.0% 2070-460-7880 Home Program Disbursements 23,275 46,945 0 0 0 0 0.0% 2070-460-7881 Program Disb. Rehab 0 0 0 0 0 0 0.0% 2070-460-9300 Admin Reimbursement 2,949 6,056 5,766 6,100 6,953 853 14.0% Total 2070 Expenses 40,293 75,160 27,014 25,047 27,456 2,409 9.6% Net of Revenues Over (Under) Expenses (39,253) (71,167) (1,294) (25,047) (23,956) Beginning Fund Balance 359,976 320,723 249,556 248,262 223,215 Ending Fund Balance 320,723 249,556 248,262 223,215 199,259 HOME Consortium Revenues 2072-460-5870 Home Program Grant Receipts 0 0 0 0 0 0 0.0% Total 2072 Revenues 0 0 0 0 0 0 0.0% Expenses 2072-460-7880 Home Program Disbursements 0 0 0 0 0 0 0.0% Total 2072 Expenses 0 0 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses 0 0 0 0 0 Beginning Fund Balance 0 0 0 0 0 Ending Fund Balance 0 0 0 0 0 CDBG Consortium Revenues 2080-110-6330 Allocated Interest Earnings 60 207 4 0 0 0 0.0% 2080-460-5860 Community Development Block Grants 0 25,500 0 0 0 0 0.0% 2080-460-5821 State Construction Reimbursement 130,344 0 48,210 0 0 0 0.0% 2080-460-5890 Other Federal Revenue 128,102 147,429 0 125,000 495,000 370,000 296.0% 2080-460-6910 Transfers In 0 0 0 0 0 0 0.0% Total 2080 Revenues 258,506 173,136 48,214 125,000 495,000 370,000 296.0% Expenses 2080-460-7020 Payroll - Salary 0 0 0 0 0 0 0.0% 2080-460-7110 PERS Cost 0 0 0 0 0 0 0.0% 2080-460-7120 Insurance-Dental/Medical/Vision 0 0 0 0 0 0 0.0% 2080-460-7130 Payroll Taxes 0 0 0 0 0 0 0.0% 2080-460-7196 Professional Services - Engineer 24,970 15,155 1,925 0 0 0 0.0% 2080-460-7710 Advertising & Legal Notices 0 225 0 0 0 0 0.0% 2080-460-7880 Program Loan Disbursements 0 25,500 21,210 0 0 0 0.0% 2080-460-8290 Capital Proj - Street/Drain 101,922 133,699 45,000 125,000 495,000 370,000 296.0% 2080-460-9250 Transfers Out 0 0 0 0 0 0 0.0% 2080-460-9300 Admin Reimbursement 0 0 0 0 0 0 0.0% Total 2080 Expenses 126,892 174,579 68,135 125,000 495,000 370,000 296.0% Net of Revenues Over (Under) Expenses 131,614 (1,443) (19,921) 0 0 Beginning Fund Balance (109,067) 22,547 21,104 1,183 1,183 Ending Fund Balance 22,547 21,104 1,183 1,183 1,183 City of Waterford Other Governmental Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Impact Fee Administration and Planning Revenues 2091-110-5400 Impact Fees - Residential 7,136 242 0 0 0 0 0.0% 2091-110-6330 Allocated Interest Earnings 8 4 0 0 0 0 0.0% Total 2091 Revenues 7,144 246 0 0 0 0 0.0% Expenses 2091-110-9250 Transfers Out 7,724 0 0 0 0 0 0.0% Total 2091 Expenses 7,724 0 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses (580) 246 0 0 0 Beginning Fund Balance 580 0 246 246 246 Ending Fund Balance 0 246 246 246 246 Impact Fee City Facilities Revenues 2092-110-5400 Impact Fees - Residential 5,192 0 265 0 0 0 0.0% 2092-110-6330 Allocated Interest Earnings 8 49 4 0 0 0 0.0% Total 2092 Revenues 5,200 49 269 0 0 0 0.0% Expenses 2091-110-9250 Transfers Out 0 5,249 0 0 0 0 0.0% Total 2092 Expenses 0 5,249 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses 5,200 (5,200) 269 0 0 Beginning Fund Balance 0 5,200 0 269 269 Ending Fund Balance 5,200 0 269 269 269 Impact Fee Drainage Revenues 2110-110-6330 Allocated Interest Earnings 15 79 78 0 0 0 0.0% Total 2110 Revenues 15 79 78 0 0 0 0.0% Expenses 2110-310-8290 Capital Projects - Street/Drain 0 0 0 0 0 0 0.0% 2110-310-9250 Transfers Out 0 0 0 0 0 0 0.0% Total 2110 Expenses 0 0 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses 15 79 78 0 0 Beginning Fund Balance 5,262 5,277 5,356 5,434 5,434 Ending Fund Balance 5,277 5,356 5,434 5,434 5,434 Parkland Dedication In Lieu Revenues 2130-110-6330 Allocated Interest Earnings 0 0 0 0 0 0 0.0% 2130-580-6910 Transfers In 0 26,540 0 0 0 0 0.0% Total 2130 Revenues 0 26,540 0 0 0 0 0.0% Expenses 2130-580-7190 Professional Services - Other 1,540 0 0 0 0 0 0.0% 2130-580-9250 Transfers Out 25,000 0 0 0 0 0 0.0% Total 2130 Expenses 26,540 0 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses (26,540) 26,540 0 0 0 Beginning Fund Balance 0 (26,540) 0 0 0 Ending Fund Balance (26,540) 0 0 0 0 Impact Fee Police Revenues 2151-110-6330 Allocated Interest Earnings 17 135 7 0 0 0 0.0% 2151-210-5400 Impact Fees - Residential 9,141 0 372 0 0 0 0.0% Total 2151 Revenues 9,158 135 379 0 0 0 0.0% Expenses 2151-210-8060 Capital Assets - Police Modular 0 10,146 0 0 0 0 0.0% 2151-210-9250 Transfers Out 0 0 0 0 0 0 0.0% Total 2151 Expenses 0 10,146 0 0 0 0 0.0% Net of Revenues Over (Under) Expenses 9,158 (10,011) 379 0 0 Beginning Fund Balance 892 10,050 39 418 418 Ending Fund Balance 10,050 39 418 418 418 City of Waterford Other Governmental Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Impact Fee Public Works Revenues 2170-110-6330 Allocated Interest Earnings 163 773 762 0 0 0 0.0% 2170-300-5400 Impact Fees - Residential 3,044 5,942 0 0 0 0 0.0% Total 2170 Revenues 3,207 6,715 762 0 0 0 0.0% Expenses 2170-300-9250 Transfers Out 6,745 6,745 45,549 0 0 0 0.0% Total 2170 Expenses 6,745 6,745 45,549 0 0 0 0.0% Net of Revenues Over (Under) Expenses (3,538) (30) (44,787) 0 0 Beginning Fund Balance 55,832 52,294 52,264 7,477 7,477 Ending Fund Balance 52,294 52,264 7,477 7,477 7,477 Impact Fee Traffic Revenues 2171-110-6330 Allocated Interest Earnings 144 1,291 1,305 1,100 900 (200) -18.2% 2171-310-5400 Impact Fees - Residential 84,674 0 1,218 0 0 0 0.0% Total 2171 Revenues 84,818 1,291 2,523 1,100 900 (200) -18.2% Expenses 2171-310-7190 Professional Services - Other 0 0 0 20,000 0 (20,000) -100.0% 2171-310-7191 Professional Services - Accounting 822 0 0 0 0 0 0.0% Total 2171 Expenses 822 0 0 20,000 0 (20,000) -100.0% Net of Revenues Over (Under) Expenses 83,996 1,291 2,523 (18,900) 900 Beginning Fund Balance 2,920 86,916 88,207 90,730 71,830 Ending Fund Balance 86,916 88,207 90,730 71,830 72,730 Impact Fee Wastewater Revenues 2191-110-6330 Allocated Interest Earnings 11 55 55 0 0 0 0.0% 2191-700-5400 Impact Fees - Residential 3,044 0 0 0 0 0 0.0% Total 2191 Revenues 3,055 55 55 0 0 0 0.0% Expenses 2191-700-9250 Transfers Out 0 0 3,801 0 0 0 0.0% Total 2191 Expenses 0 0 3,801 0 0 0 0.0% Net of Revenues Over (Under) Expenses 3,055 55 (3,746) 0 0 Beginning Fund Balance 636 3,691 3,746 0 0 Ending Fund Balance 3,691 3,746 0 0 0 City of Waterford Other Governmental Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Lighting & Landscaping District Revenues 2210-110-6330 Allocated Interest Earnings 0 0 12 0 0 0 0.0% 2210-260-5080 Other Property Taxes 1,767 2,267 1,194 0 0 0 0.0% 2210-260-5210 Assessment: Light/Landscape Districts 65,646 68,044 66,930 67,000 67,000 0 N/A 2210-260-5213 Light/landscape Delinquent Assessments 0 0 0 0 0 0 0.0% 2210-260-6910 Transfer In 15,381 47,832 73,433 28,422 22,564 (5,858) -20.6% 2210-260-9000 Proceeds From Long Term Debt 0 0 136,989 0 0 0 0.0% Total 2210 Revenues 82,794 118,143 278,558 95,422 89,564 (5,858) -6.1% Expenses 2210-260-7020 Payroll - Salary 21,435 24,587 23,377 22,654 23,252 598 2.6% 2210-260-7021 Payroll Overtime 1,215 1,736 1,116 1,530 1,324 (206) -13.5% 2210-260-7025 Payroll Part-time 1,100 1,320 1,298 1,710 2,964 1,254 73.3% 2210-260-7110 PERS Cost 4,232 4,387 3,562 3,924 3,611 (313) -8.0% 2210-260-7120 Insurance-Dental/Medical/Vision 2,495 5,380 6,446 5,851 6,022 171 2.9% 2210-260-7130 Payroll Taxes 468 516 488 487 631 144 29.6% 2210-260-7190 Professional Services - Other 5,169 22,996 3,724 5,500 3,700 (1,800) -32.7% 2210-260-7194 Professional Services - Legal 0 1,238 0 0 0 0 0.0% 2210-260-7440 Infrastructure Maintenance 4,277 0 0 5,000 4,000 (1,000) -20.0% 2210-260-7510 Operating Supplies 647 828 3,151 1,000 3,180 2,180 218.0% 2210-260-7580 Uniforms & Protective Clothing 55 60 160 100 200 100 100.0% 2210-260-7710 Advertising & Legal Notices 0 284 80 700 300 (400) -57.1% 2210-260-7730 Other Miscellaneous Services 0 0 1,570 500 500 0 N/A 2210-260-7810 Communications/Telephone 73 80 80 250 300 50 20.0% 2210-260-7820 Electric, Gas, & Water 36,566 42,742 69,317 37,254 17,299 (19,955) -53.6% 2210-260-8020 Capital Purchases - Equipment/Furniture 0 0 140,623 0 0 0 0.0% 2210-260-9010 Debt Service: Principal 0 0 0 5,399 6,528 1,129 20.9% 2210-260-9110 Debt Service: Interest 0 0 0 4,847 4,656 (191) -3.9% 2210-260-9300 Admin Reimbursement 8,636 11,989 10,282 12,000 11,097 (903) -7.5% Total 2210 Expenses 86,368 118,143 265,274 108,706 89,564 (19,142) -17.6% Net of Revenues Over (Under) Expenses (3,574) 0 13,284 (13,284) 0 Beginning Fund Balance 3,574 0 0 13,284 0 Ending Fund Balance 0 0 13,284 0 0 Lighting District Revenues 2230-110-6330 Allocated Interest Earnings 76 269 404 0 0 0 0.0% 2230-260-5020 Property Tax Secured 16,038 16,578 17,398 16,500 17,800 1,300 7.9% 2230-260-5030 Property Tax Unsecured 856 916 893 1,000 1,000 0 N/A 2230-260-5040 Supplemental SB813 - Current 0 75 176 0 0 0 0.0% 2230-260-5080 Other Property Taxes 8 1,765 1 0 0 0 0.0% 2230-260-5220 Assessment: Light/Landscape Districts 8,708 9,040 8,914 9,700 9,800 100 1.0% 2230-260-5223 Light/landscape Delinquent Assessments 0 0 0 0 0 0 0.0% 2230-260-5670 Homeowner Property Tax Relief 271 131 252 250 0 (250) -100.0% 2230-260-6310 Interest Earned Escrow Funds 0 0 3 0 0 0 0.0% 2230-260-9960 Proceeds From Long Term Debt 0 0 136,989 0 0 0 0.0% Total 2230 Revenues 25,957 28,774 165,030 27,450 28,600 1,150 4.2% Expenses 2230-260-7190 Professional Services - Other 3,134 3,934 2,186 2,200 1,890 (310) -14.1% 2230-260-7196 Professional Services - Engineer 0 0 0 2,000 2,000 0 N/A 2230-260-7440 Infrastructure Maintenance 4,277 0 0 4,700 4,700 0 N/A 2230-260-7510 Operating Supplies 0 0 7 0 0 0 0.0% 2230-260-7710 Advertising & Legal Notices 99 283 0 0 0 0 0.0% 2230-260-7820 Electric, Gas, & Water 28,580 28,300 4,918 21,254 18,000 (3,254) -15.3% 2230-260-8020 Capital Purchases - Equipment/Furniture 0 0 123,623 0 0 0 0.0% 2230-260-9010 Debt Service: Principal 0 0 0 5,399 6,528 1,129 20.9% 2230-260-9110 Debt Service: Interest 0 0 0 4,847 4,656 (191) -3.9% 2230-260-9250 Transfers Out 0 0 0 0 22,564 22,564 0.0% Total 2230 Expenses 36,090 32,517 130,734 40,400 60,338 19,938 49.4% Net of Revenues Over (Under) Expenses (10,133) (3,743) 34,296 (12,950) (31,738) Beginning Fund Balance 31,142 21,009 17,266 51,562 38,612 Ending Fund Balance 21,009 17,266 51,562 38,612 6,874 City of Waterford Capital Improvement Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change CIP Streets Revenues 6310-310-5821 California DOT Overlays 0 153,077 27,542 200,000 400,000 200,000 100.0% 6310-310-5822 California DOT Safe Routes to School 0 2,088 189,742 0 0 0 0.0% 6310-310-5823 CMAQ E Street Grant 0 19,060 10,940 300,000 0 (300,000) -100.0% 6310-310-6910 Transfers In 277,103 25,900 59,383 24,448 0 (24,448) -100.0% Total 6310 Revenues 277,103 200,125 287,607 524,448 400,000 (124,448) -23.7% Expenses 6310-310-7196 Professional Services - Engineer 6,750 0 0 0 0 0 0.0% 6310-310-8290 Capital Project - Street/Drain 4,920 0 0 0 0 0 0.0% 6310-310-8291 Capital Project - Overlay Projects 1,730 173,413 31,110 225,000 400,000 175,000 77.8% 6310-310-8292 Capital Project - Safe Routes 0 22,993 221,297 0 0 0 0.0% 6310-310-8293 Capital Project - E Street Grant 0 13,199 10,195 300,000 0 (300,000) -100.0% 6310-310-9250 Transfers Out 217,267 0 0 0 0 0 0.0% Total 6310 Expenses 230,667 209,605 262,602 525,000 400,000 (125,000) -23.8% Net of Revenues Over (Under) Expenses 46,436 (9,480) 25,005 (552) 0 Beginning Fund Balance 0 46,436 36,956 61,961 61,409 Ending Fund Balance 46,436 36,956 61,961 61,409 61,409

CIP Parks Revenues 6580-580-5800 Other Miscellaneous State Grants 0 0 67,048 0 17,500 17,500 0.0% 6580-580-5801 River Parkways Prop 84 Grant 0 0 107,867 400,000 900,000 500,000 125.0% 6580-580-5802 Department of Boating and Waterways 0 0 0 45,000 0 (45,000) -100.0% 6580-580-5804 Prop 13 Reimbursement 0 49,292 0 0 0 0 0.0% 6580-580-5805 LWCF Grant - S. Reinway Trailhead 0 0 0 0 220,000 220,000 0.0% 6580-580-5900 Donations - Skate Park 0 1,379 9,065 0 0 0 0.0% 6580-580-6560 Other Miscellaneous Revenues 0 0 550 0 0 0 0.0% 6580-580-6910 Transfers In 0 71,065 25,000 129,000 150,000 21,000 16.3% Total 6580 Revenues 0 121,736 209,530 574,000 1,287,500 713,500 124.3% Expenses 6580-580-8280 Capital Project - Recycled Tire - Bark 0 0 53,270 0 17,500 17,500 0.0% 6580-580-8281 Capital Project - Skate Park 0 5,000 1,492 206,200 0 (206,200) -100.0% 6580-580-8282 Capital Project - River Parkway 0 42,250 76,538 400,000 1,050,000 650,000 162.5% 6580-580-8283 Capital Project - Boat Ramp 0 7,256 10,606 27,138 0 (27,138) -100.0% 6580-580-8284 River Trail Acquisition 0 1,161 0 0 0 0 0.0% 6580-580-8285 Capital Project - Prop 13 Trail Costs 0 42,226 0 0 0 0 0.0% 6580-580-8286 LWCF Grant - S. Reinway Trailhead 0 0 0 0 220,000 220,000 0.0% 6580-580-9250 Transfers Out 0 0 39,172 0 0 0 0.0% Total 6580 Expenses 0 97,893 181,078 633,338 1,287,500 654,162 103.3% Net of Revenues Over (Under) Expenses 0 23,843 28,452 (59,338) 0 Beginning Fund Balance 0 0 23,843 52,295 (7,043) Ending Fund Balance 0 23,843 52,295 (7,043) (7,043) City of Waterford Enterprise Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Wastewater Treatment System Wastewater Treatment Operations Revenues 5050-110-6330 Allocated Interest Earnings 148 2,904 5,435 3,000 3,300 300 10.0% 5050-700-5950 FOG Permit Fee 0 963 94 1,000 1,000 0 N/A 5050-700-5920 Sewer Monthly Service Charges 704,129 904,844 938,669 940,000 959,000 19,000 2.0% 5050-700-5930 Other Sewer Revenue 1,206 2,581 844 0 0 0 0.0% 5050-700-6560 Other Miscellaneous Revenues 0 0 631 0 0 0 0.0% 5050-700-6910 Transfers In 0 37,384 0 0 0 0 0.0% Total 5050 Revenues 705,483 948,676 945,673 944,000 963,300 19,300 2.0% Expenses 5050-700-7020 Payroll - Salary 146,902 188,717 195,123 214,558 192,578 (21,980) -10.2% 5050-700-7021 Payroll Overtime 4,449 8,107 8,606 13,347 11,101 (2,246) -16.8% 5050-700-7025 Payroll Part-time 23,150 21,284 23,110 20,130 8,892 (11,238) -55.8% 5050-700-7110 PERS Cost 28,779 31,603 27,076 35,059 25,234 (9,825) -28.0% 5050-700-7120 Insurance-Dental/Medical/Vision 38,622 47,808 51,046 53,316 49,782 (3,534) -6.6% 5050-700-7130 Payroll Taxes 4,791 5,100 5,506 5,604 4,151 (1,453) -25.9% 5050-700-7190 Professional Services - Other 15,562 16,166 11,899 5,500 7,500 2,000 36.4% 5050-700-7194 Professional Services - Legal 2,155 367 4,388 0 0 0 0.0% 5050-700-7196 Professional Services - Engineer 0 100 0 0 0 0 0.0% 5050-700-7300 Other Contract Services 2,585 0 0 10,000 7,500 (2,500) -25.0% 5050-700-7420 Equipment Maintenance 0 0 0 10,000 10,000 0 N/A 5050-700-7430 Vehicle Maintenance 4,865 513 311 4,500 11,500 7,000 155.6% 5050-700-7450 Depreciation Expense (Non-cash) 108,245 103,325 102,397 110,000 105,000 (5,000) -4.5% 5050-700-7510 Operating Supplies 19,939 25,014 27,679 35,000 35,000 0 N/A 5050-700-7520 Fuel 6,390 5,593 5,608 6,500 6,500 0 N/A 5050-700-7540 Postage & Mailing 5,053 7,221 4,414 7,500 7,500 0 N/A 5050-700-7580 Uniforms & Protective Clothing 626 297 1,047 750 750 0 N/A 5050-700-7600 Leases and Rentals 195,186 201,221 201,044 202,150 201,375 (775) -0.4% 5050-700-7710 Advertising & Legal Notices 325 0 279 750 500 (250) -33.3% 5050-700-7720 Dues & Publications 0 206 0 250 250 0 N/A 5050-700-7730 Other Miscellaneous Services 3,199 1,756 5,997 500 500 0 N/A 5050-700-7740 Training and Development 290 199 266 500 500 0 N/A 5050-700-7810 Communications/Telephone 2,074 3,481 5,875 4,000 4,000 0 N/A 5050-700-7820 Electric, Gas, & Water 84,942 87,156 84,982 68,000 65,000 (3,000) -4.4% 5050-700-7850 Refunds/Reimb/Write-offs 0 357 40 0 0 0 0.0% 5050-700-7900 Interest 4,791 0 0 0 0 0 0.0% 5050-700-7920 Outside Agency Charges 0 12,394 13,875 15,000 16,500 1,500 10.0% 5050-700-9150 Amortization Expense (Non-cash) 0 0 15,405 15,405 15,405 0 N/A 5050-700-9250 Transfers Out 0 0 249,442 155,000 252,500 97,500 62.9% 5050-700-9300 Admin Reimbursement 63,889 92,335 90,316 91,000 85,277 (5,723) -6.3% Total 5050 Expenses 766,809 860,320 1,135,731 1,084,319 1,124,795 40,476 3.7% Net of Revenues Over (Under) Expenses (61,326) 88,356 (190,058) (140,319) (161,495) Add Back - Non Cash Items 108,245 103,325 117,802 125,405 120,405 Net Increase (Decrease) to Cash 46,919 191,681 (72,256) (14,914) (41,090) Other Cash to Accrual Adjustments (17,699) (40,698) 35,938 0 0 Beginning Cash Balance 88,139 117,359 268,342 232,024 217,110 Ending Cash Balance 117,359 268,342 232,024 217,110 176,020

CIP Wastewater Revenues 4350-110-6330 Allocated Interest Earnings 2,951 12,340 6,130 4,800 3,100 (1,700) -35.4% 4350-700-5910 Sewer - Connect/Disconn. Fee 4,600 0 2,500 0 0 0 0.0% 4350-700-6910 Transfers In 3,732 0 253,243 140,000 250,000 110,000 78.6% 4350-700-9960 Proceeds From Long Term Debt 0 0 1,263,221 0 0 0 0.0% Total 4350 Revenues 11,283 12,340 1,525,094 144,800 253,100 108,300 74.8% Expenses 4350-700-7420 Equipment Maintenance 0 660 11,720 105,000 105,000 0 N/A 4350-700-7196 Professional Services - Engineering 0 440 330 0 0 0 0.0% 4350-700-8020 Capital Purchases - Furniture/Equipment 0 37,384 1,263,221 111,751 382,631 270,880 242.4% 4350-700-9010 Debt Service: Principal 0 0 0 11,738 76,785 65,047 554.2% 4350-700-9110 Debt Service: Interest 0 0 0 10,538 30,854 20,316 192.8% 4350-700-9250 Transfers Out 0 200,000 0 0 0 0 0.0% Total 4350 Expenses 0 238,484 1,275,271 239,027 595,270 356,243 149.0% Net of Revenues Over (Under) Expenses 11,283 (226,144) 249,823 (94,227) (342,170) Beginning Fund Balance 963,025 974,308 748,164 997,987 903,760 Ending Fund Balance 974,308 748,164 997,987 903,760 561,590 City of Waterford Enterprise Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Water System River Pointe Water Operations Revenues 5070-110-6330 Allocated Interest Earnings 0 382 45 0 0 0 0.0% 5070-800-5921 Water Monthly Service Charges 149,063 158,957 163,888 161,300 155,000 (6,300) -3.9% 5070-800-5931 Other Water Revenue 43,000 236 163 0 0 0 0.0% 5070-800-6580 Energy Efficient Block Grant 26,888 0 0 0 0 0 0.0% 5070-800-6910 Transfers In 0 200,000 51,598 100,000 0 (100,000) -100.0% Total 5070 Revenues 218,951 359,575 215,694 261,300 155,000 (106,300) -40.7% Expenses 5070-700-7020 Payroll - Salary 78,481 87,391 96,486 93,614 43,107 (50,507) -54.0% 5070-700-7021 Payroll Overtime 2,694 4,131 3,802 3,910 2,724 (1,186) -30.3% 5070-700-7025 Payroll Part-time 1,590 3,959 3,895 5,130 1,482 (3,648) -71.1% 5070-700-7110 PERS Cost 14,358 15,791 13,206 15,742 5,653 (10,089) -64.1% 5070-700-7120 Insurance-Dental/Medical/Vision 8,510 21,405 27,344 24,545 11,603 (12,942) -52.7% 5070-700-7130 Payroll Taxes 1,451 1,769 1,958 1,839 900 (939) -51.1% 5070-700-7190 Professional Services - Other 4,168 22,124 3,509 4,700 0 (4,700) -100.0% 5070-700-7194 Professional Services - Legal 868 1,579 2,915 7,000 1,000 (6,000) -85.7% 5070-700-7196 Professional Services - Engineer 385 0 0 0 0 0 0.0% 5070-700-7430 Vehicle Maintenance 3,117 602 1,299 1,500 500 (1,000) -66.7% 5070-700-7450 Depreciation Expense (Non-cash) 104,737 104,013 102,156 112,000 112,000 0 N/A 5070-700-7510 Operating Supplies 20,697 25,379 23,796 22,000 12,500 (9,500) -43.2% 5070-700-7520 Fuel 3,501 3,196 3,034 2,600 1,500 (1,100) -42.3% 5070-700-7540 Postage & Mailing 1,217 2,407 1,045 1,000 1,000 0 N/A 5070-700-7580 Uniforms & Protective Clothing 593 93 93 150 150 0 N/A 5070-700-7710 Advertising & Legal Notices 153 0 179 150 150 0 N/A 5070-700-7720 Dues & Publications 1,860 1,119 413 0 500 500 0.0% 5070-700-7730 Other Miscellaneous Services 707 126 315 500 500 0 N/A 5070-700-7740 Training and Development 500 577 805 1,000 500 (500) -50.0% 5070-800-7750 Travel, Meeting, Etc. 0 500 0 0 0 0 0.0% 5070-700-7810 Communications/Telephone 885 2,443 4,373 2,500 1,500 (1,000) -40.0% 5070-700-7820 Electric, Gas, & Water 30,505 31,523 32,029 28,000 28,000 0 N/A 5070-700-8020 Capital Purchases - Equip/Furniture 0 0 8,280 0 0 0 0.0% 5070-700-9250 Transfers Out 0 100,000 0 0 3,750 3,750 0.0% 5070-700-9300 Admin Reimbursement 28,218 42,606 41,879 42,000 18,873 (23,127) -55.1% Total 5070 Expenses 309,195 472,733 372,811 369,880 247,892 (121,988) -33.0% Net of Revenues Over (Under) Expenses (90,244) (113,158) (157,117) (108,580) (92,892) Add Back - Non Cash Items 104,737 104,013 102,156 112,000 112,000 Net Increase (Decrease) to Cash 14,493 (9,145) (54,961) 3,420 19,108 Other Cash to Accrual Adjustments (42,145) 118,381 6,516 0 0 Beginning Cash Balance (33,139) (60,791) 48,445 0 3,420 Ending Cash Balance (60,791) 48,445 0 3,420 22,528

Waterford Water System Operations Revenues 5071-110-6330 Allocated Interest Earnings 0 0 0 0 1,250 1,250 0.0% 5071-800-5921 Water Monthly Service Charges 0 0 0 0 1,168,255 1,168,255 0.0% 5071-800-5931 Other Water Revenue 0 0 0 0 0 0 0.0% 5071-800-6910 Transfers In 0 0 0 0 0 0 0.0% Total 5071 Revenues 0 0 0 0 1,169,505 1,169,505 0.0% Expenses 5071-800-7020 Payroll - Salary 0 0 0 0 172,818 172,818 0.0% 5071-800-7021 Payroll Overtime 0 0 0 0 12,641 12,641 0.0% 5071-800-7025 Payroll Part-time 0 0 0 0 5,928 5,928 0.0% 5071-800-7110 PERS Cost 0 0 0 0 23,053 23,053 0.0% 5071-800-7120 Insurance-Dental/Medical/Vision 0 0 0 0 45,658 45,658 0.0% 5071-800-7130 Payroll Taxes 0 0 0 0 3,621 3,621 0.0% 5071-800-7190 Professional Services - Other 0 0 0 0 0 0 0.0% 5071-800-7194 Professional Services - Legal 0 0 0 0 8,000 8,000 0.0% 5071-800-7196 Professional Services - Engineer 0 0 0 0 50,000 50,000 0.0% 5071-800-7198 Professional Services - Water System 0 0 0 0 10,000 10,000 0.0% 5071-800-7430 Vehicle Maintenance 0 0 0 0 3,000 3,000 0.0% 5071-800-7450 Depreciation Expense (Non-cash) 0 0 0 0 89,440 89,440 0.0% 5071-800-7510 Operating Supplies 0 0 0 0 20,000 20,000 0.0% 5071-800-7520 Fuel 0 0 0 0 1,800 1,800 0.0% 5071-800-7540 Postage & Mailing 0 0 0 0 3,000 3,000 0.0% 5071-800-7580 Uniforms & Protective Clothing 0 0 0 0 1,000 1,000 0.0% City of Waterford Enterprise Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change 5071-800-7710 Advertising & Legal Notices 0 0 0 0 2,500 2,500 0.0% 5071-800-7720 Dues & Publications 0 0 0 0 0 0 0.0% 5071-800-7730 Other Miscellaneous Services 0 0 0 0 15,000 15,000 0.0% 5071-800-7740 Training and Development 0 0 0 0 2,000 2,000 0.0% 5071-800-7750 Travel, Meeting, Etc. 0 0 0 0 0 0 0.0% 5071-800-7810 Communications/Telephone 0 0 0 0 800 800 0.0% 5071-800-7820 Electric, Gas, & Water 0 0 0 0 46,000 46,000 0.0% 5071-800-8020 Capital Purchases - Equip/Furniture 0 0 0 0 0 0 0.0% 5071-800-9250 Transfers Out 0 0 0 0 553,750 553,750 0.0% 5071-800-9300 Admin Reimbursement 0 0 0 0 75,659 75,659 0.0% Total 5071 Expenses 0 0 0 0 1,145,668 1,145,668 0.0% Net of Revenues Over (Under) Expenses 0 0 0 0 23,837 Add Back - Non Cash Items 0 0 0 0 89,440 Net Increase (Decrease) to Cash 0 0 0 0 113,277 Other Cash to Accrual Adjustments 0 0 0 0 0 Beginning Cash Balance 0 0 0 0 0 Ending Cash Balance 0 0 0 0 113,277

Hickman Water System Operations Revenues 5072-110-6330 Allocated Interest Earnings 0 0 0 0 0 0 0.0% 5072-800-5921 Water Monthly Service Charges 0 0 0 0 106,725 106,725 0.0% 5072-800-6910 Transfers In 0 0 0 0 0 0 0.0% Total 5072 Revenues 0 0 0 0 106,725 106,725 0.0% Expenses 5072-800-7020 Payroll - Salary 0 0 0 0 29,893 29,893 0.0% 5072-800-7021 Payroll Overtime 0 0 0 0 1,791 1,791 0.0% 5072-800-7025 Payroll Part-time 0 0 0 0 1,482 1,482 0.0% 5072-800-7110 PERS Cost 0 0 0 0 3,970 3,970 0.0% 5072-800-7120 Insurance-Dental/Medical/Vision 0 0 0 0 7,693 7,693 0.0% 5072-800-7130 Payroll Taxes 0 0 0 0 639 639 0.0% 5072-800-7190 Professional Services - Other 0 0 0 0 0 0 0.0% 5072-800-7194 Professional Services - Legal 0 0 0 0 0 0 0.0% 5072-800-7196 Professional Services - Engineer 0 0 0 0 0 0 0.0% 5072-800-7430 Vehicle Maintenance 0 0 0 0 572 572 0.0% 5072-800-7450 Depreciation Expense (Non-cash) 0 0 0 0 14,560 14,560 0.0% 5072-800-7510 Operating Supplies 0 0 0 0 3,500 3,500 0.0% 5072-800-7520 Fuel 0 0 0 0 500 500 0.0% 5072-800-7540 Postage & Mailing 0 0 0 0 500 500 0.0% 5072-800-7580 Uniforms & Protective Clothing 0 0 0 0 100 100 0.0% 5072-800-7710 Advertising & Legal Notices 0 0 0 0 100 100 0.0% 5072-800-7720 Dues & Publications 0 0 0 0 0 0 0.0% 5072-800-7730 Other Miscellaneous Services 0 0 0 0 0 0 0.0% 5072-800-7740 Training and Development 0 0 0 0 0 0 0.0% 5072-800-7750 Travel, Meeting, Etc. 0 0 0 0 0 0 0.0% 5072-800-7810 Communications/Telephone 0 0 0 0 0 0 0.0% 5072-800-7820 Electric, Gas, & Water 0 0 0 0 7,800 7,800 0.0% 5072-800-8020 Capital Purchases - Equip/Furniture 0 0 0 0 0 0 0.0% 5072-800-9250 Transfers Out 0 0 0 0 10,000 10,000 0.0% 5072-800-9300 Admin Reimbursement 0 0 0 0 13,280 13,280 0.0% Total 5072 Expenses 0 0 0 0 96,380 96,380 0.0% Net of Revenues Over (Under) Expenses 0 0 0 0 10,345 Add Back - Non Cash Items 0 0 0 0 14,560 Net Increase (Decrease) to Cash 0 0 0 0 24,905 Other Cash to Accrual Adjustments 0 0 0 0 0 Beginning Cash Balance 0 0 0 0 0 Ending Cash Balance 0 0 0 0 24,905 City of Waterford Enterprise Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change CIP Waterford Water Revenues 5075-110-6330 Allocated Interest Earnings 0 0 0 0 0 0 0.0% 5075-800-5910 Water - Connect/Disconn. Fee 0 0 0 0 50,000 50,000 0.0% 5075-800-6910 Transfers In 0 0 0 0 550,000 550,000 0.0% 5075-800-9960 Proceeds From Long Term Debt 0 0 0 0 2,666,000 2,666,000 0.0% Total 5075 Revenues 0 0 0 0 3,266,000 3,266,000 0.0% Expenses 5075-800-7420 Equipment Maintenance 0 0 0 0 0 0 0.0% 5075-800-7190 Professional Services - Other 0 0 0 0 25,000 25,000 0.0% 5075-800-7196 Professional Services - Engineering 0 0 0 0 0 0 0.0% 5075-800-8020 Capital Purchases - Furniture/Equipment 0 0 0 0 694,000 694,000 0.0% 5075-800-8021 Capital Purchases - System Acquisition 0 0 0 0 2,236,000 2,236,000 0.0% 5075-800-9010 Debt Service: Principal 0 0 0 0 143,105 143,105 0.0% 5075-800-9110 Debt Service: Interest 0 0 0 0 78,914 78,914 0.0% 5075-800-9250 Transfers Out 0 0 0 0 85,000 85,000 0.0% Total 5075 Expenses 0 0 0 0 3,262,019 3,262,019 0.0% Net of Revenues Over (Under) Expenses 0 0 0 0 3,981 Beginning Fund Balance 0 0 0 0 0 Ending Fund Balance 0 0 0 0 3,981

CIP Hickman Water Revenues 5076-110-6330 Allocated Interest Earnings 0 0 0 0 0 0 0.0% 5076-800-5910 Water - Connect/Disconn. Fee 0 0 0 0 0 0 0.0% 5076-800-6910 Transfers In 0 0 0 0 95,000 95,000 0.0% 5076-800-9960 Proceeds From Long Term Debt 0 0 0 0 434,000 434,000 0.0% Total 5076 Revenues 0 0 0 0 529,000 529,000 0.0% Expenses 5076-800-7420 Equipment Maintenance 0 0 0 0 0 0 0.0% 5076-800-7190 Professional Services - Other 0 0 0 0 0 0 0.0% 5076-800-7196 Professional Services - Engineering 0 0 0 0 0 0 0.0% 5076-800-8020 Capital Purchases - Furniture/Equipment 0 0 0 0 128,776 128,776 0.0% 5076-800-8021 Capital Purchases - System Acquisition 0 0 0 0 364,000 364,000 0.0% 5076-800-9010 Debt Service: Principal 0 0 0 0 23,297 23,297 0.0% 5076-800-9110 Debt Service: Interest 0 0 0 0 12,847 12,847 0.0% 5076-800-9250 Transfers Out 0 0 0 0 0 0 0.0% Total 5076 Expenses 0 0 0 0 528,920 528,920 0.0% Net of Revenues Over (Under) Expenses 0 0 0 0 80 Beginning Fund Balance 0 0 0 0 0 Ending Fund Balance 0 0 0 0 80 City of Waterford Enterprise Funds 2015-2016 Budget

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change Public Financing Authority Revenues 5090-110-6310 Interest Earned Cash & Investments 2,216 4,199 1,901 1,500 700 5090-110-6350 Charges - RDA Interest 38,150 36,750 35,175 33,425 31,675 5090 Information Only Charges - RDA Principal Revised Budget Presentation 25,000 5090-110-6360 Charges - WW Interest 220,763 132,650 127,575 122,150 116,375 5090 Information Only Charges - WW Principal Revised Budget Presentation 85,000 5090-110-6380 Charges - Assessment Dist. Interest 119,331 113,988 102,752 90,591 74,930 5090 Information Only Charges - Assess. Dist. Principal Revised Budget Presentation 122,884 122,884 0.0% 5090-110-6560 Transfers In 3,635 0 10,000 10,000 10,000 0 N/A Total 5090 Revenues 384,095 287,587 277,403 257,666 466,564 208,898 81.1% Expenses 5090-110-7020 Payroll - Salary 7,617 12,823 13,145 13,107 13,461 354 2.7% 5090-110-7021 Payroll Overtime 0 0 0 0 0 0 0.0% 5090-110-7025 Payroll Part-time 1,100 1,320 1,298 1,710 2,964 1,254 73.3% 5090-110-7110 PERS Cost 1,648 2,421 2,107 2,386 2,199 (187) -7.8% 5090-110-7120 Insurance-Dental/Medical/Vision 967 1,452 1,817 1,612 1,521 (91) -5.6% 5090-110-7130 Payroll Taxes 161 238 245 251 358 107 42.6% 5090-110-7190 Professional Services - Other 8,630 3,950 4,008 4,000 4,000 0 N/A 5090-110-7191 Professional Services - Accounting 0 0 0 0 0 0 0.0% 5090-110-7192 Professional Services - Audit 830 1,305 0 1,000 1,000 0 N/A 5090-110-7194 Professional Services - Legal 2,436 67 438 1,000 1,000 0 N/A 5090-110-9110 Debt Service: Interest 211,810 140,573 133,931 128,270 119,890 (8,380) -6.5% 5090 Information Only Debt Service: Principal Revised Budget Presentation 275,000 275,000 0.0% 5090-110-9150 Amortization Expense (Non-cash) 45,149 46,806 46,806 46,806 46,806 0 N/A 5090-110-9250 Transfers Out 100,000 154,529 25,000 57,310 17,000 (40,310) -70.3% 5090-110-9300 Admin Reimbursement 2,949 6,056 5,766 7,000 6,953 (47) -0.7% Total 5072 Expenses 383,297 371,540 234,561 264,452 492,152 227,700 86.1% Net of Revenues Over (Under) Expenses 798 (83,953) 42,842 (6,786) (25,588) Add Back - Non Cash Items 45,149 46,806 46,806 46,806 46,806 Net Increase (Decrease) to Cash 45,947 (37,147) 89,648 40,020 21,218 Other Cash to Accrual Adjustments (144,659) (29,276) (86,323) (62,026) 0 Beginning Cash Balance 214,382 115,670 49,247 52,572 30,566 Ending Cash Balance 115,670 49,247 52,572 30,566 51,784 City of Waterford Fiduciary Funds 2015-2016

2016 Budget vs. Actual Actual Actual Estimate Budget 2015 Estimate Account Description 2012 2013 2014 2015 2016 $ Change % Change RDA Successor Revenues 2330-110-5020 Property Tax - Secured 23,554 38,802 64,945 70,000 73,500 3,500 5.0% 2330-110-5030 Property Tax - Unsecured 0 0 0 6,000 4,500 (1,500) -25.0% 2330-110-6910 Transfers In 48,176 58,856 35,148 17,310 17,000 (310) -1.8% Total 2330 Revenues 71,730 97,658 100,093 93,310 95,000 1,690 1.8% Expenses 2330-110-702 Payroll-salary 8,161 21,865 22,445 22,493 23,108 615 2.7% 2330-110-7021 Payroll Overtime 21 87 60 25 59 34 136.0% 2330-110-7025 Payroll-Part time 1,060 2,639 2,597 3,420 5,928 2,508 73.3% 2330-110-7110 PERS Cost 1,828 4,242 3,650 4,173 3,896 (277) -6.6% 2330-110-7120 Insurance-Dental/Medical/Vision 1,871 2,902 3,463 2,828 2,882 54 1.9% 2330-110-7130 Payroll Taxes 149 426 432 446 658 212 47.5% 2330-110-7191 Professional Services - Accounting 0 3,400 0 0 0 0 0.0% 2330-110-7192 Professional Services - Audit 0 5,120 0 0 0 0 0.0% 2330-110-7194 Professional Services - Legal 1,888 2,582 3,293 1,500 1,500 0 N/A 2330-110-9020 Debt Service: Principal 20,000 25,000 25,000 25,000 25,000 0 N/A 2330-110-9110 Debt Service: Interest 18,725 36,750 45,179 33,425 31,675 (1,750) -5.2% 2330-110-9300 Admin Reimbursement 2,550 0 1,621 0 0 0 0.0% Total 2330 Expenses 56,253 105,013 107,740 93,310 94,706 1,396 1.5% Net of Revenues Over (Under) Expenses 15,477 (7,355) (7,647) 0 294 Beginning Cash Balance 0 5,489 0 251 251 Cash to Accrual Adjustments (9,988) 1,866 7,898 0 0 Ending Cash Balance 5,489 0 251 251 545

City of Waterford Capital Improvement Projects Budget Summary FY 2016-2018

Projection Projection Projection Fund Project Project Description Funding Source FY 15/16 FY 16/17 FY 17/18 2030 La Gallina Infrastructure Project Phase 1 Curb, Gutter, Sidewalk, Drainage Improvements F St to E St Rehab 127,625

2080 La Gallina Infrastructure Project Phase 2 Curb, Gutter, Sidewalk, Drainage Improvements E St to C St CDBG 370,000

4350 Wastewater Collection Maint Section 1 TV Lines, Root cutting, CIPP slip lining & repairs Wastewater Improvement Fund 487,631 487,631 487,631

5075 Water Projects - Waterford Wells, pumps, pipeline replacement, etc. Water CIP Fund 694,000 487,386 515,558 5076 Water Projects - Hickman Wells, pumps, pipeline replacement, etc. Hickman CIP Fund 128,776 183,864 291,942

6310 Waterford RSTP Overlay Project Overlay Bentley - I to F, Tim Bell from Vineyard to El Pomar, Various Other RSTP 400,000 6310 CMAQ - Yosemite Street/Sidewalk along N. Western to N. Pasadena CMAQ, LTF 335,000

6580 River Parkway Develop river front access and trail parkway Prop 84 Grant 1,050,000 6580 Boat Ramp Develop non-motorized boat ramp at River Park Department of Boating and Waterways Grant 540,000 6580 S. Reinway Trailhead S. Reinway Trailhead LWCF Grant 220,000 540,000 6580 Tire Derived Products Grant Purchase wheel stops, landscape bark, speed bumps, rubber pavers TDP Grant 17,500

Total Capital Projects 3,495,532 2,573,881 1,295,131 City of Waterford Schedule of Inter-Fund Transfers Fiscal Year 2015-2016

Transfer Transfer Fund Dept Account Fund Description Department Out In Description

5050 700 9250 Transfers Out Wastewater Treatment Plant Wastewater 2,500 Contribution for Public Safety 5070 800 9250 Transfers Out Water - River Pointe Water 3,750 Contribution for Public Safety 5071 800 9250 Transfers Out Water - Waterford Water 3,750 Contribution for Public Safety 1010 210 6910 Transfers In General Fund Police Services 10,000 Contribution for Public Safety

2050 310 9250 Transfer Out Gas Tax Street Improvements Streets/Drainage 205,000 Street Maintenance 1010 310 6910 Transfer In General Fund Streets/Drainage 205,000 (Based on revenues)

2270 310 9250 Transfer Out LTF Motorized and Nonmotorized Streets/Drainage 142,000 Street Maintenance 1010 310 6910 Transfer In General Fund Streets/Drainage 142,000 (Based on revenues)

2230 260 9250 Transfer Out Lighting District Streets/Drainage 22,564 Funds to cover deficit 2210 260 6910 Transfer In Lighting and Landscaping District Streets/Drainage 22,564 Funds to cover deficit (Estimate - use actual)

5090 110 9250 Transfers Out WPFA WPFA 17,000 Cover deficit in Successor 2330 110 6910 Transfers In Successor Agency Administration 17,000 Cover deficit in Successor (Accounted for as a loan)

1010 580 9250 Transfers Out General Fund Parks 150,000 River Parkway Contingency 6580 580 6910 Transfers In Parks CIP Parks 150,000 River Parkway Contingency

5050 700 9250 Transfers Out Wastewater Operations Wastewater 250,000 CIP Reserves 4350 700 6910 Transfers In Wastewater CIP Wastewater 250,000 CIP Reserves

5071 800 9250 Transfers Out Water Operations - Waterford Water 550,000 CIP Reserves 5075 800 6910 Transfers In Water CIP Water 550,000 CIP Reserves

5072 800 9250 Transfers Out Water Operations - Hickman Water 10,000 CIP Reserves 5075 800 9250 Transfers Out Water CIP - Waterford Water 85,000 CIP Reserves 5076 800 6910 Transfers In Water CIP - Hickman Water 95,000 CIP Reserves

Transfers 396,564 396,564 City of Waterford Schedule of Inter-Fund Loans Outstanding as of June 30, 2015 Date Loaned Loaned From: Loaned To: Purpose: Amount Interest Rate

October 18, 2012 General Fund 1010 River Pointe Water System Cover operating deficits 100,000 LAIF + 1.00% Fund 5070

June 30, 2014 General Fund 1010 River Pointe Water System Cover operating deficits 51,598 LAIF + 1.00% Fund 5070

April 4, 2013 CIP Wastewater Improvement River Pointe Water System Contribution for City Hall 100,000 LAIF + 1.00% Fund 4350 Fund 5070

June 30, 2015 General Fund 1010 River Pointe Water System Cover operating deficits 100,000 LAIF + 1.00% (Estimate) Fund 5070

Total Loaned to River Pointe Water System 251,598

June 30 2012 General Fund 1010 Redevelopment Obligation Cover operating deficits 48,176 LAIF + 1.00% Retirement Fund 2330 to 6/30/212

June 30, 2013 General Fund 1010 Redevelopment Obligation Cover operating deficits 58,856 LAIF + 1.00% Retirement Fund 2330 fiscal 6/30/2013

June 30, 2014 Waterford Public Financing Redevelopment Obligation Cover operating deficits 35,148 LAIF + 1.00% Authority Fund 5090 Retirement Fund 2330 fiscal 6/30/2014

June 30, 2015 Waterford Public Financing Redevelopment Obligation Cover operating deficits 17,310 LAIF + 1.00% (Estimate) Authority Fund 5090 Retirement Fund 2330 fiscal 6/30/2015

Total Loaned to Successor Agency 142,180 CITY OF WATERFORD SALARY SCHEDULE Effective: July 1, 2015 - June 30, 2016 - Bi-Weekly/Hourly Salary Schedule

ADMINISTRATION / FINANCE STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS City Manager $5,384.00 Budgeted -Filled City Clerk / Ass't to the City Manager $3,171.12 $3,338.03 $3,513.71 $3,698.64 $3,893.31 Budgeted -Filled Accounting Technician III / Deputy City Clerk $1,776.02 $1,864.82 $1,958.06 $2,055.96 $2,280.05 Budgeted -Filled Accounting Technician II $1,526.59 $1,602.92 $1,683.07 $1,767.22 $1,900.64 Position not filled Accounting Technician I / Deputy City Clerk $1,284.79 $1,349.03 $1,416.48 $1,487.30 $1,561.67 Budgeted -Filled PUBLIC WORKS STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS Public Works Director $3,566.38 $3,754.08 $3,951.66 $4,159.64 $4,378.57 Budgeted - Filled Public Works Supervisor $2,115.79 $2,221.58 $2,332.66 $2,449.29 $2,648.83 Budgeted - Filled Maintenance Worker III $1,679.23 $1,763.19 $1,851.35 $1,943.92 $2,042.47 Budgeted - Filled Maintenance Worker II $1,532.14 $1,608.75 $1,689.65 $1,774.75 $1,862.33 Budgeted - Filled Maintenance Worker I $1,311.78 $1,377.37 $1,446.24 $1,517.67 $1,593.91 Budgeted - Filled Wastewater Treatment Plant OIT $1,262.84 $1,329.30 $1,399.27 $1,472.91 $1,550.43 Budgeted - Filled PLANNING & COMMUNITY DEVELOPMENT STEP A - Bi- STEP B - Bi- STEP C - Bi- STEP D - Bi- STEP E - FIXED - POSITION Weekly Weekly Weekly Weekly Bi-Weekly Bi-Weekly POSITION STATUS Community Development Specialist $1,928.19 $2,029.67 $2,136.49 $2,248.94 $2,367.31 Budgeted -Filled CITY COUNCIL - ELECTED FIXED - POSITION Monthly POSITION STATUS Mayor & City Council Members $150.00 Elected PART-TIME / TEMPORARY / SEASONAL - HOURLY POSITIONS FIXED - POSITION Hourly POSITION STATUS Part-Time Finance Manager / Treasurer $57.00 Budgeted - Filled CONTRACTED EMPLOYEES - PROFESSIONAL AND EXECUTIVE MANAGEMENT SERVICES LEGAL SERVICES FIXED - FIXED - POSITION Monthly Hourly POSITION STATUS

City of Waterford Investment Policy

City of Waterford

312 E Street / P.O. Box 199

Waterford, CA 95386

(209) 874874----23282328

(209) 874874----96569656 Fax

August 2012

Table of Contents

I. Scope………………………………………...... Page 3 II. Philosophy………………………………………………..Page 3 III. Objectives and Safety…………………………………….Pages 3-4 A. Safety………………………………………………….Pages 3-4 B. Liquidity………………………………………………Page 4 C. Yield…………………………………………………..Page 4 IV. Prudence………………………………………………….Pages 4-5 A. Standards……………………………………………...Pages 4-5 B. Ethics and Conflicts of Interests………………...... Page 5 C. Delegation…………………………………………….Page 5 V. Investment Parameters…………………………………...Pages 5-9 A. Authorized Investments………………………………Pages 5-8 B. Prohibited Investments……………………………….Pages 8-9 C. Investment Policies…………………………………...Page 9 D. Definition for Lengths of Investment…………………Page 9 VI. Reporting………………………………………………....Pages 9-10 A. Monthly Reporting……………………………………Pages 9-10 B. Quarterly Reporting…………………………………...Page 10 VII. Investment Advisor……………………………………….Pages 10 A. Qualifications………………………………………….Page 10 B. Renewal………………………………………………..Page 10 VIII. Definitions………………………………………………...Pages 11-12

I. Scope

This policy applies to the investments of the City of Waterford to all funds accounted for in the annual budget. Funds of the City will be invested in compliance with the provisions of, but not necessarily limited to California Government Code Section 53601 et sec and other applicable statutes. Investments will be in accordance with these policies and written administrative procedures. This policy does not regulate the investment of bond proceeds.

II. Philosophy

The basic principles underlying Waterford's investment philosophy is to ensure the safety of public funds; provide that sufficient money is always available to meet current expenditures; and achieve a reasonable rate of return on its investments.

III. Objectives and Safety

The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:

A. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

Credit risk is the risk that an obligation will not be paid and a loss will result. The City will seek to minimize this risk by:

• Limiting investment to the safest types of securities as listed in the “Authorized Investment” section. • Diversifying its investments among the types of securities that are authorized under this investment policy.

Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investor’s portfolio. For example, an investor with large holdings in long-term bonds has assumed significant interest rate risk because the value of the bonds will fall if interest rates rise. The City can minimize this risk by: 4

• Buying and holding its securities until maturity. • Structuring the investment portfolio so that securities mature to meet cash flow requirements.

B. Liquidity: Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by maintaining a portion of the portfolio in liquid money market mutual funds or local government investment pools. In addition, the City will maintain one month’s cash needs in short term investments no more than 50% shall be maintained in securities maturing in more than two years. Since all possible cash demands cannot be anticipated, however, the portfolio will consist of securities with active secondary or resale markets should the need to sell a security prior to maturity arises.

C. Yield: Yield on the City’s portfolio is last in priority among investment objectives. The investment portfolio shall be designed to obtain a market rate of return that reflects the authorized investments, risk constraints, and liquidity needs outlined in the City’s investment policy. Compared to similar sized cities, the City of Waterford should be able to take advantage of its reserve balances to achieve higher yields through long-term investments. In addition, the City will strive to maintain the level of investment of idle funds as close to 100 percent as possible.

IV. Prudence

A) Standards

The City of Waterford adheres to the guidance provided by the “prudent investor” standard (CA 53600.3) to insure that:

“When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

This standard of prudence is to be used by all investment staff and will be applied in the context of managing an overall portfolio. 5

B) Ethics and Conflicts of Interest

Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

C) Delegation of Authority

The authority to invest City funds rests with the City Manager and designated staff, herein referred to as investment staff. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established. The City Manager shall be responsible for all transactions undertaken and will establish a system of controls to regulate the activities of subordinate officials.

The City may delegate its investment decision making and execution authority to an investment advisor. The advisor shall follow the policy and such other written instructions as are provided.

V. Investment Parameters

A. AUTHORIZED INVESTMENTS

The California Government Code (Sections 53600 et seq.) governs investment of City funds. The following investments are authorized:

1. U.S. Government Securities (e.g. Treasury notes, bonds and bills) that are backed by the full faith and credit of the United States

a) There is no limit on purchase of these securities.

b) Securities will not exceed 10 years maturity.

c) All purchased securities must have an explicit or a de facto backing of the full faith and credit of the U.S. Government. 6

2) U.S. Government Agency Securities – Obligations issued by the Federal Government agencies (e.g. Federal National Mortgage Association).

a) There is no limit on purchase of these securities except for:

• Callable and Multi-step-up securities provided that: • The potential call dates are known at the time of purchase; • The interest rates at which they “step-up” are known at the time of purchase • The entire face value of the security is redeemed at the call date. • No more than 25 percent of the par value of the portfolio. b) Securities will not exceed 10 years maturity.

3. Bonds of State of California Municipal Agencies

a) Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally recognized rating service (e.g. Moody’s and/or Standard and Poor’s).

b) May not exceed 10 percent of the par value of the portfolio.

4. Certificates of Deposit (CD) - A debt instrument issued by a bank for a specified period of time at a specified rate of interest.

a) May not exceed 20 percent of the par value of the portfolio.

b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution.

c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating service (e.g. Moody’s and/or Standard and Poor’s).

d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC).

5. Banker's Acceptance Notes (BA) – Bills of exchange or time drafts drawn on and accepted by commercial banks. Purchases of banker’s acceptances are limited to:

a) No more than 30 percent of the par value of the portfolio.

b) Not to exceed 180 days maturity.

6. Commercial Paper - Short-term unsecured obligations issued by banks, corporations, and other borrowers. Purchases of commercial paper are limited to:

a) Having highest letter or numerical rating as provided for by a nationally recognized rating service (e.g. Moody’s and/or Standard and Poor’s).

b) No more than 15 percent of the par value of the portfolio.

c) Not to exceed 270 days maturity.

d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser.

7. State Approved Investment Pools – Such as Local Agency Investment Fund (LAIF) – A State of California managed investment pool or the Central San Joaquin Valley RMA Pooled Investment, etc., may be used up to the maximum permitted by California State Law.

8. Short-Term Repurchase Agreements (REPO) – A contractual agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time.

a) Not to exceed 1 year.

b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities.

c) A Master Repurchase agreement must be signed with the bank or dealer.

9. Money Market Deposit Accounts – Liquid bank accounts which seek to maintain a net asset value of $1.00. 8

10. Mutual Funds which seek to maintain a net asset value of $1.00 and which are limited essentially to the above investments.

a) No more than 20 percent of the par value of the portfolio.

b) No more than 10 percent of the par value with any one institution.

11. Negotiable Certificates of Deposit (NCD) issued by nationally or state chartered banks and state or federal savings institutions and further defined in note 11 of Appendix A. Purchases of negotiable certificates of deposit:

a) May not exceed 10 percent of the par value of the portfolio.

12. Medium-Term Corporate Notes – Issued by corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating with the United States.

a) Not to exceed 5 years maturity.

b) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized rating service (e.g. Moody’s and/or Standard & Poor’s).

c) No more than 10 percent of the par value of the portfolio.

d) If securities owned by the City are downgraded by either Moody’s or Standard & Poor’s to a level below AA, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

B) PROHIBITED INVESTMENTS

Includes all investments not specified above, and in particular:

• Reverse repurchase agreements • Derivatives • Financial Futures and Financial Options also known as forward contracts for securities

C) Investment Policies

The following general criteria relating to portfolio diversification and credit worthiness will be used in selecting depositors and brokers/dealers (financial institutions) in the placement of city investments:

• The financial capacity and credit worthiness of the financial institution shall be considered before the placement of city investments • Current financial statements shall be maintained for each institution in which or through which cash is invested • No more than 25% of the city’s portfolio (exclusive of government agency issues and LAIF) shall be placed with any financial institution • No more than 10% of the portfolio value shall be invested in the corporate bonds of any single corporate entity (exclusive of government agency issues) • Certificates of deposit (negotiable and collateralized) placed by the city shall not constitute more than 15% of the total assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in excess of $200 million and maintain a ratio of equity to total assets of at least 5%.

D) Definitions of Lengths for Investments

DEFINITION OF SHORT-TERM INVESTMENTS Short-term investments are generally defined as those instruments maturing in one year or less. Short-term investments in repurchase agreements are defined as those investments maturing in less than five calendar days.

DEFINITION OF LONG-TERM INVESTMENTS- Investments considered long-term are generally defined as those instruments maturing in one year or longer. Repurchase agreements with maturities greater than five days are considered long-term.

VI. Reporting

A) Quarterly Reporting

The Finance Manager will provide to the City Council quarterly investment reports which provide a detailed summary of the status of the investment program. The quarterly report will contain the following: 10

•The type of investment, issuer, and date of maturity par and dollar amount invested on all securities, investments and moneys held by the local agency.

•A description of any of the local agency's funds, investments, or programs that are under the management of contracted parties, including lending programs.

•A current market value as of the date of the report and the source of this same valuation for all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund.

•A statement of compliance with the Government Code and this policy.

•A statement denoting the ability of the local agency to meet its pool's expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

VII. Investment Advisor

A) Qualifications

A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position. A dealer must have the following in order to be considered an acceptable dealer:

a) At least three years of experience operating with California municipalities;

b) Maintain an inventory of trading securities of at least $10 million; and

c) Be approved by the Finance Director and City Manager before being added to the City’s approved dealers. In addition, individual traders or agents representing a dealer:

A dealer will be removed from the approved dealers should there develop a history of problems to include: failure to deliver securities as promised, failure to honor transactions as quoted, or failure to provide accurate information.

B) Renewal

The performance if the city’s investment advisor and investment advisory firm shall be reviewed annually based on the following criteria:

•Understanding of the city’s overall investment program and the investment objectives and constraints unique to the city, and approach to management of the city’s portfolio.

•Experience, resources, and qualifications of the firm and individuals assigned to this account.

•Experience of the firm in managing state/local/district government reserve funds.

•Performance of the managed portion of the city’s portfolio.

•Reporting methodology and additional investment of financial services offered or available through affiliation.

•Fees, relative to services

VIII. Definitions

1. Bond proceeds- The money paid to the issuer by the purchaser for a new issue of municipal bonds, used to finance a project or purpose for which the bonds were issued and to pay certain costs of issuance. This is equal to the par amount of bonds, plus accrued interest, less original issue discount plus premium

2. Securities- An instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives).

3. Liquidity- The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity

4. Money market mutual funds- is an open-ended mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper

5. Local government investment pools-is a voluntary investment vehicle operated by the State Treasurer

6. Bonds- is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity

7. Secondary markets- is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold

8. Treasury Notes- a government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the United States federal government

9. Collateralized deposits- an instrument offered by a bank that guarantees the depositor a rate of return if they hand over their money to the bank for a set time period

10. Rollovers-the action taking place at end of day, where all open positions with value date equals SPOT (A foreign exchange transaction in which each party promises to pay a certain amount of currency to the other on the same day or within one or two days ), will be rolled over to the next business day

11. Master repurchase agreement-the sale of securities together with an agreement for the seller to buy back the securities at a later date

12. Mutual funds- a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities

13. Depository institutions- a financial institution in the United States (such as a savings bank, commercial bank, savings and loan association, or credit union) that is legally allowed to accept monetary deposits from consumers

14. Reverse repurchase agreements- The purchase of securities with the agreement to sell them at a higher price at a specific future date

15. Derivatives- a contract between two parties that specifies conditions (especially the dates, resulting values of the underlying variables, and notional amounts) under which payments, or payoffs, are to be made between the parties

16. Financial Options - a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price (the strike). [1] The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option derives from the difference between the reference price and the value of the underlying asset (commonly a stock, a bond, a currency or a futures contract) plus a premium based on the time remaining until the expiration of the option

17. Negotiable certificates of deposit-a time deposit, a financial product commonly offered to consumers in the United States by banks, thrift institutions, and credit unions

General Business 5b June 18, 2015 Tim Ogden, City Manager City Council Staff Report

Approve a Resolution of the City Council of the City of Waterford Authorizing Execution and Delivery of an Installment Purchase Agreement to Provide Funds in the Maximum Principal amount of $3,100,000 to Finance the Acquisition of Domestic Water Systems and Additional System Improvements, and Approving Related Document and Actions.

SUMMARY: The City of Waterford is acquiring the City of Modesto water systems in Waterford and Hickman for $2,600,000. To finance the acquisition and to fund needed capital improvements, the City is seeking to borrow a total of $3,100,000. $2,600,000 will be made immediately available to purchase the system and the balance of $500,000 will be available over the next year to draw down, as needed, for capital projects. The loan will be backed by a pledge of net revenues of the water systems only and is not a debt or obligation of the General Fund.

FISCAL IMPACT: The City of Waterford will borrow $3,100,000. The term of the loan is 15 years at a fixed interest rate of 3.13%, with a not-to-exceed of 3.3% should there be significant delays beyond July. The amount of $2,600,000 will be drawn immediately for the acquisition and will begin accruing interest upon closing of the loan. The balance of $500,000 will be available over the next year, as needed, and will begin accruing interest at the same interest rate but only when drawn down. The loan will be fully amortizing with interest payments every December 1 and June 1 with principal paid each year on June 1.

Cost of issuance is estimated at $29,000 which includes: $25,000 for Bond Counsel, $1,000 Umpqua Bank disbursement/processing fee, $465 estimated fee for the California Debt and Investment Advisory Commission and $2,500 for Del Rio Advisors, LLC acting as Municipal Advisor to the City.

ANALYSIS: The Waterford City Council approved to form the Purchase Sale Agreement for the acquisition of the water systems in Waterford and Hickman from the City of Modesto on April 16, 2015. As directed by the City Council, financing was sought for the purchase amount of $2,600,000, and an additional $500,000 for capital improvement costs for a total of $3,100,000. With the assistance of Municipal Advisor Ken Dieker of Del Rio Advisors, LLC, and the City Attorney, a financial arrangement has been made with Umpqua Bank with the following terms and conditions:

Credit Facility Purpose: Finance acquisition of Waterford and Hickman water systems from the City of Modesto and initial system improvements, as well as fund the costs of issuance estimated at $29,000.

Collateral: The Credit Facility will be secured by a pledge of Net Revenues of the City’s entire water system (including River Pointe).

Interest Rate: Tax-exempt bank-qualified fixed interest rate of 3.13%, with a not-to-exceed of 3.3%.

Redemption Features: The Credit Facility is callable at any time with a 5% call premium for the first five year, a 4% call premium in years 6-10 and callable with no call premium thereafter. Up to 10% of the outstanding Credit Facility principal amount can be repaid every year without the call premium, as long as the source of repayment is not refinancing with another lender.

Disbursements: $2,600,000 will be funded at the time that the water systems are acquired from the City of Modesto and the remaining $500,000 will be available for system improvement costs. All funds will be placed in an escrow account held by Chicago Title in Oakdale, CA pending receipt of State permits.

Repayment Terms: Interest will be payable semi-annually on December 1 and June 1 beginning December 1, 2015. Principal will be payable annually each June 1 beginning June 1, 2016. The annual debt service payments will be approximately $262,000 per year once the full $500,000 is drawn down for capital improvements. An estimated set of bonds numbers is included with this staff report.

Final Maturity Date: June 1, 2030

Default Terms: In an event of default, a default rate equal to 3% plus the Credit Facility interest rate will be required. The Borrower will be provided adequate notice and given opportunity to cure the default prior to the default rate going into effect. Upon an event of default and without cure, the entire amount of principal and any accrued interest then owing will be immediately due and payable.

Rate Covenant: The City covenants to maintain rates, fees and charges sufficient to generate net revenues (revenues less operations and maintenance costs) sufficient to provide debt service coverage each fiscal year at a minimum of 1.25 times (125%).

Additional Parity Debt: The City may issue additional indebtedness that is on parity or equal to the pledge of net revenues for this facility as long as net revenues for the most recent fiscal year or the preceding 12 months is equal to at least 1.25 times (125%) of maximum annual debt service on this credit facility and the proposed obligation.

Continuing Disclosure: The City agrees to furnish each year copies of the audited financial statements and approved City budget and any other information the Bank may reasonably request regarding the water system.

Bond Counsel: Kronick, Moskovitz, Tiedemann & Girard will act as the bond counsel and prepared the Credit Facility documents. The City will be responsible for all bond counsel costs (estimated not to exceed $25,000) upon formal bank credit approval regardless of whether or not the water system acquisition is approved by all applicable parties and the Credit Facility closes, as well as for any other third parties, including CDIAC fees, a one-time Bank wire/disbursement processing fee and fees of the Municipal Advisor.

With financing conditionally in place pending the City of Modesto considering the Purchase Sale Agreement on June 23, 2015, we are prepared to close by June 30 or shortly thereafter depending on State permits and title company processes. Staff have begun job shadowing the City of Modesto water staff, and prepared job recruitment announcements to be opened as soon as the purchase sale agreement is fully executed.

ATTACHMENTS:  Resolution 2015-52  Umpqua Bank Term Sheet  Installment Purchase Agreement  Draft Bond Numbers RESOLUTION NO. 2015-52

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD AUTHORIZING EXECUTION AND DELIVERY OF AN INSTALLMENT PURCHASE AGREEMENT TO PROVIDE FUNDS IN THE MAXIMUM PRINCIPAL AMOUNT OF $3,100,000 TO FINANCE THE ACQUISITION OF A DOMESTIC WATER SYSTEM AND ADDITIONAL SYSTEM IMPROVEMENTS, AND APPROVING RELATED DOCUMENTS AND ACTIONS

WHEREAS, the City of Waterford (the “City”) owns and operates a domestic water system within the service area of the City;

WHEREAS, the City wishes to purchase domestic water systems from the City of Modesto ("New Water Systems") in Waterford and Hickman and make some improvements to the New Water Systems ("Improvements");

WHEREAS, City has determined that it is in its best interests at this time to provide funds to finance the acquisition of the New Water Systems and the Improvements, and for that purpose the City has proposed to enter into an Installment Purchase Agreement ("Installment Purchase Agreement") with Umpqua Bank (the “Bank”), whereby the Bank will agree to provide funding for the foregoing purposes in consideration of the payment by the City of periodic installment payments;

WHEREAS, the obligations of the City under the Installment Purchase Agreement will be secured by a pledge of the net revenues from the existing water system and the New Water Systems; and

WHEREAS, the City Council wishes at this time to authorize and approve all proceedings relating to the financing the acquisition of the New Water Systems and the Improvements, and all related documents and actions, in furtherance of the public purposes of the City;

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Waterford as follows:

Section 1. Approval of Financing Plan and Related Documents. The City Council hereby approves the financing plan outlined above. To that end, the City Council hereby approves the Installment Purchase Agreement in substantially the form on file with the City Clerk and authorizes and directs the City Manager, for and in the name of and on behalf of the City, to execute and deliver the Installment Purchase Agreement in such form with such changes, insertions, revisions, corrections, or amendments as shall be approved by the officer executing it; provided that the total principal component of the City’s installment payments thereunder shall not exceed $3,100,000 and the interest component of the City’s installment payments shall be calculated at a rate not of not to exceed 3.3% per annum. The execution of the Installment Purchase Agreement by the City Manager (or his designee) shall constitute conclusive evidence of such officer’s and the City Council’s approval of any such changes, insertions, revisions, corrections, or amendments to the form of the Installment Purchase Agreement presented to this meeting.

1 Section 2. Official Actions. The Mayor, the City Manager, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, leases and other instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable.

Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

PASSED AND ADOPTED at a regular meeting of the City Council on the 18th day of June 2015, by the following called vote:

AYES: ______NOES: ______ABSENT: ______

Mayor

ATTEST:

City Clerk

APPROVED AS TO FORM:

City Attorney

Umpqua Bank Term Sheet for City of Waterford June 11, 2015

Mr. Tim Ogden City of Waterford 101 E. Street Waterford, CA 95386

Terms & Conditions

Umpqua Bank (“Umpqua”) would like to express its interest in underwriting and obtaining credit approval for the following Credit Facility for the City of Waterford (the “Borrower”) on the terms and conditions outlined below.

Preface: Umpqua’s expression of interest in underwriting and obtaining credit approval for the Credit Facility is for discussion purposes only and does not constitute a commitment from Umpqua. Any commitment to lend that we might make is subject to the fulfillment of a number of conditions that include, but are not limited to, our normal credit approval process, an in-depth investigation of the Credit Facility Purpose, Borrower, and Collateral the results of which are deemed satisfactory to Umpqua in our sole discretion.

Confidentiality: Except as required by law, neither this nor its contents will be disclosed publicly or privately except to those individuals who are your officers, employees or advisors who have a need to know as a result of being involved in the proposed financing. The foregoing confidentiality provisions shall not apply to the disclosure of the federal income tax structure or treatment of the proposed financing.

Borrower: City of Waterford

Water System Acquisition Credit Facility

Credit Facility Purpose: Finance acquisition of Waterford and Hickman water system from the City of Modesto and initial system improvements, as well as fund the costs of issuance.

Credit Facility Amount: approximately $3,100,000 (the final amount to be confirmed during the underwriting process)

Collateral: The Credit Facility will be secured by a pledge of Net Revenues of the City’s entire water system (including River Pointe) of the Borrower.

Interest Rate: Tax-exempt bank-qualified fixed interest rate of 3.13%. The Interest Rate is calculated on a 30/360 day basis. The Credit Facility is callable at any time during the term with 5- 5-5-5-5-4-4-4-4-4% call premium, corresponding to each year of the term during the first 10 years and then callable at par. Up to 10% of the outstanding Credit Facility principal amount can be

1-866-4UMPQUA (1-866-486-7782) www.umpquabank.com MEMBER FDIC EQUAL HOUSING LENDER SBA PREFERRED LENDER

repaid every year without the call premium, as long as the source of repayment is not refinancing with another lender. This proposal assumes that the average life of the Credit Facility does not exceed 8.5 years.

Disbursements: The Credit Facility will be funded through periodic disbursements. It is expected that approximately $2,600,000 will be funded at the time that the water systems are acquired from the City of Modesto and the remaining $500,000 will be available for system improvement costs. One disbursement per month will be allowed through June 30, 2016, with one additional disbursement for costs of issuance.

Maturity Date: June 1, 2030

Repayment Terms: Principal shall be payable annually on June 1 starting on June 1, 2016. Interest shall be payable semi-annually on June 1 and December 1, starting on December 30, 2015.

Additional Conditions

Periodic financial and Collateral reporting by the Borrower, as well as covenants and conditions that are appropriate for a Credit Facility of the scope and nature of proposed herein will be determined as part of Umpqua Bank’s normal underwriting and approval process.

The periodic reporting requirements are likely to include the audited financial statements and budget information. This reporting can be submitted directly to the Bank electronically.

In an event of default, a default rate equal to the Interest Rate on the Credit Facility + 3.00% will be required. The Borrower will be provided adequate notice and given opportunity to cure the default prior to the default rate going into effect.

KRONICK, MOSKOVITZ, TIEDEMANN & GIRARD will act as the bond counsel and prepare the Credit Facility documents. The Borrower will be responsible for all bond counsel costs (estimated not to exceed $25,000, assuming efficient process) regardless of whether or not the water system acquisition is approved by all applicable parties and the Credit Facility closes, as well as for any other third party fees, including CDIAC fees and title company fees, if applicable. Should Bank decline the credit request, the Borrower would not be responsible for the bond counsel costs. A one-time $1,000 wire / disbursement processing fee will be charged by Umpqua at loan origination.

By signing below, Borrower:  Acknowledges that Umpqua’s expression of interest in underwriting and obtaining credit approval for the described Credit Facility is for discussion purposes only and is a general, non-binding expression of interest on the part of Umpqua.

1-866-4UMPQUA (1-866-486-7782) www.umpquabank.com MEMBER FDIC EQUAL HOUSING LENDER SBA PREFERRED LENDER

 Certify that any and all information presented to Umpqua for its underwriting and obtaining credit approval for Credit Facility is and will be correct and complete.  Authorize Umpqua, either directly or through any agent, to investigate its credit and background status and to inspect and review the proposed Collateral. Umpqua may share this information with our affiliates unless you provide a written request to not share that information in accordance with Umpqua’s privacy procedures.

I look forward to your review and response. If you wish to have me pursue approval of the Credit Facility, please sign and return the enclosed copy of this letter to my attention by no later than June 16, 2015. Once we receive your authorization to proceed with the underwriting, we expect to be able to fund the Credit Facility by June 30, 2015, subject to timely provision of information by the Borrower and timely approval of the system acquisition by all applicable parties and receipt of all applicable permits by the Borrower.

Sincerely,

Dmitry A. Semenov VP, Commercial Relationship Manager 2998 Douglas Blvd, Suite 100 Roseville, CA 95765

Please pursue underwriting and approval of a commitment for the described Credit Facility.

Borrower

By: ______

Printed Name: ______

Title: ______

1-866-4UMPQUA (1-866-486-7782) www.umpquabank.com MEMBER FDIC EQUAL HOUSING LENDER SBA PREFERRED LENDER

KMTG DRAFT Circulated June 12, 2015

______

INSTALLMENT PURCHASE AGREEMENT

between the

CITY OF WATERFORD

and

UMPQUA BANK

Dated ______, 2015

(2015 Credit Facility)

______

1261708.3 11879-037 TABLE OF CONTENTS Page

ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICABILITY ...... 1 Section 1.1. Definitions...... 1 Section 1.2. Benefits of Installment Purchase Agreement Limited to Parties ...... 5 Section 1.3. Successor Is Deemed Included in all References to Predecessor ...... 6 Section 1.4. Waiver of Personal Liability ...... 6 Section 1.5. Article and Section Headings, Gender and References ...... 6 Section 1.6. Partial Invalidity...... 6 Section 1.7. California Law ...... 6 Section 1.8. Notices ...... 6 Section 1.9. Execution in Counterparts...... 7 ARTICLE II REPRESENTATIONS BY THE CITY AND THE BANK ...... 7 Section 2.1. Representations by the City ...... 7 Section 2.2. Representations by the Bank ...... 8 ARTICLE III ACQUISITION OF THE 2015 PROJECT; PURCHASE OF THE 2015 PROJECT; 2015 INSTALLMENT PAYMENTS ...... 8 Section 3.1. Acquisition of the 2015 Project ...... 8 Section 3.2. Purchase of the 2015 Project ...... 9 Section 3.3. Payment of Purchase Price...... 10 Section 3.4. Obligation to Pay ...... 10 Section 3.5. Net Contract ...... 11 ARTICLE IV PREPAYMENT OF 2015 INSTALLMENT PAYMENTS ...... 11 Section 4.1. Prepayment ...... 11 Section 4.2. Notice of Prepayment ...... 12 ARTICLE V DISCHARGE OF OBLIGATIONS ...... 12 Section 5.1. Discharge of Obligations ...... 12 ARTICLE VI SECURITY ...... 13 Section 6.1. Pledge of Net Revenues ...... 13 Section 6.2. Additional Debt ...... 13 ARTICLE VII COVENANTS OF THE CITY ...... 14 Section 7.1. Compliance with Installment Purchase Agreement and Resolution ...... 14

1261708.3 11879-037 i Section 7.2. Compliance with Law and Contracts; Preservation of Rights ...... 14 Section 7.3. Against Sale or Other Disposition of Property ...... 14 Section 7.4. Operation and Maintenance of the Water System ...... 14 Section 7.5. Payment of Claims ...... 15 Section 7.6. Insurance; Application of Net Proceeds...... 15 Section 7.7. Eminent Domain Proceeds ...... 16 Section 7.8. Rates, Fees and Charges ...... 17 Section 7.9. Rate Stabilization Fund ...... 17 Section 7.10. Protection of Security and Rights of the Bank...... 17 Section 7.11. Tax Covenant ...... 17 Section 7.12. Indemnification of the Bank ...... 18 Section 7.13. Additional Information ...... 18 Section 7.14. Further Assurances...... 18 Section 7.15. Opinion of City Attorney ...... 18 Section 7.16. Budget and Appropriation of 2015 Installment Payments; Certification to Bank ...... 19 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES OF THE BANK ...... 19 Section 8.1. Events of Default and Remedies...... 19 Section 8.2. Application of Funds Upon Acceleration ...... 20 Section 8.3. Other Remedies of the Bank ...... 21 Section 8.4. Non-Waiver...... 21 Section 8.5. Remedies Not Exclusive ...... 21 Section 8.6. Disclaimer of Warranties ...... 21 ARTICLE IX ASSIGNMENT; AMENDMENTS ...... 22 Section 9.1. Assignment...... 22 Section 9.2. Amendments Permitted...... 22

Exhibit A: Description of the Project ...... A-1 Exhibit B: 2015 Installment Payments ...... B-1 Exhibit C: Table of Disbursements...... C-1 Exhibit D: Form of Draw Request ...... D-1 Exhibit E: Form of Annual City Certification ...... E-1

1261708.3 11879-037 ii INSTALLMENT PURCHASE AGREEMENT

This INSTALLMENT PURCHASE AGREEMENT, dated ______, 2015, between the City of Waterford, a municipal corporation (the “City”), and Umpqua Bank, an Oregon state chartered bank organized and existing under and by virtue of the laws of the State of Oregon (the “Bank”),

W I T N E S S E T H:

WHEREAS, the City owns and operates an enterprise comprising property and facilities necessary to provide a domestic public water service (the “Existing Water System”);

WHEREAS, the City has determined to undertake the acquisition of domestic water systems in Waterford and Hickman from the City of Modesto (the “New Water Systems”) and provide for improvement of said system ("2015 Improvements") (the New Water Systems and the 2015 Improvements are collectively referred to herein as “2015 Project”) as more particularly described in Exhibit A, attached hereto and by this reference incorporated herein;

WHEREAS, the City and the Bank are entering into this Installment Purchase Agreement, pursuant to which the Bank will finance the acquisition of the 2015 Project and sell it to the City upon the terms and conditions set forth herein;

WHEREAS, the City and the Bank have duly authorized the execution of this Installment Purchase Agreement;

WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and delivery of this Installment Purchase Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Installment Purchase Agreement;

NOW, THEREFORE, in consideration of these premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the parties hereto do hereby agree as follows:

ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICABILITY

Section 1.1. Definitions. Unless the context otherwise requires, the terms defined in this section shall for all purposes hereof and of any amendment hereof or supplement hereto and of any report or other document mentioned herein or therein have the meanings defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein.

Accountant’s Report means a report signed by an Independent Certified Public Accountant.

1261708.3 11879-037 1 Installment Purchase Agreement Audited Financial Statements means the balance sheet of the City as of June 30 and the related statement of revenues and expenses and changes in financial position for the year then ended and the auditors’ reports with respect thereto, prepared in accordance with generally accepted accounting principles consistently applied, except as stated in the notes thereto.

Bank means Umpqua Bank, an Oregon state chartered bank organized and existing under and by virtue of the laws of the State of Oregon.

Bond Counsel means (a) Kronick, Moskovitz, Tiedemann & Girard, a Professional Corporation, or (b) any other attorney or firm of attorneys of experienced with legal matters relating to obligations the interest on which is excludable from gross income under Section 103 of the Tax Code.

CAFR means the City's Comprehensive Annual Financial Report, including such information as is required by applicable Government Accounting Standards Board Pronouncements and applicable State law.

City means the City of Waterford, a municipal corporation.

City Manager means the City Manager of the City, or any other person designated by the City Manager to act on behalf of the City Manager.

Debt Service Coverage Ratio means, for any Fiscal Year, the ratio of (a) Net Revenues to (b) the sum of the 2015 Installment Payments and all debt service and any additional payments required with respect to Parity Debt during such Fiscal Year.

Determination of Taxability means any determination, decision or decree by the Commissioner of Internal Revenue, or any District Director of Internal Revenue, or any court of competent jurisdiction, to the effect that an Event of Taxability shall have occurred; provided, however, that the City shall have the opportunity to take such remedial action necessary to restore the tax-exempt status of the interest component of the 2015 Installment Payments under this Installment Purchase Agreement. A Determination of Taxability also shall be deemed to have occurred on the first to occur of the following:

(a) the date when the City files any statement, supplemental statement, or other tax schedule, return or document that discloses that an Event of Taxability shall have occurred;

(b) the effective date of any federal legislation enacted after the date of this Installment Purchase Agreement or promulgation of any income tax regulation or ruling by the Internal Revenue Service that causes an Event of Taxability after the date of this Installment Purchase Agreement; or

(c) a sale or other deliberate action within the meaning of Treas. Reg. § 1.141 2(d) occurs with respect to all or a portion of the 2015 Project without the City’s furnishing the Bank with an opinion of Bond Counsel and reasonably acceptable to the Bank to the effect that such change in use (and accompanying remedial action, if any) will not cause the interest component of the 2015 Installment Payments to become includable in the gross income of the recipient.

1261708.3 11879-037 2 Installment Purchase Agreement Draw Request means a request from the City for the payment of a portion of the Purchase Price pursuant to a properly authorized and executed form of draw request in accordance with the terms of this Installment Purchase Agreement.

Effective Interest Rate means the rate of interest per annum specified in Exhibit B.

Engineer’s Report means a report signed by an Independent Engineer.

Event of Default means an event described in Section 8.1.

Event of Taxability means, with respect to this Installment Purchase Agreement: (a) the application of the funds disbursed by the Bank hereunder in such manner that this Installment Purchase Agreement becomes an “arbitrage bond” within the meaning of Tax Code Sections 103(b)(2) and 148, and with the result that the interest component of the 2015 Installment Payments is or becomes includable in a recipient’s gross income (as defined in Tax Code Section 61); or (b) if as the result of any act, failure to act or use of the funds disbursed by the Bank hereunder or any misrepresentation or inaccuracy in any of the representations, warranties or covenants contained in this Installment Purchase Agreement by the City or the enactment of any federal legislation or the promulgation of any federal rule or regulation after the date of this Installment Purchase Agreement, the interest component of the 2015 Installment Payments is or becomes includable in a recipient’s gross income (as defined in Tax Code Section 61); and (c) with respect to (a) and (b), the City does not undertake any remedial action afforded to it by the Internal Revenue Service.

Fiscal Year means the period beginning on July 1 of each year and ending on June 30 of the next succeeding year, or any other twelve-month period selected and designated as the official Fiscal Year of the City.

Closing Date means ______, 2015.

Gross-Up Rate means, an interest rate equal to the rate used to compute the interest components of the 2015 Installment Payments plus a rate sufficient such that the total interest to be paid on any Installment Payment Date would, after such interest was reduced by the amount of any federal income tax and state personal income tax (including any interest or penalties) actually payable thereon, equal the amount of interest due with respect to the Installment Purchase Agreement on such Installment Payment Date.

Independent Certified Public Accountant means any certified public accountant or firm of such accountants duly licensed and entitled to practice and practicing as such under the laws of the State or a comparable successor, appointed and paid by the City, and who, or each of whom:

(1) is in fact independent according to the Statement of Auditing Standards No. 1 and not under the domination of the City;

(2) does not have a substantial financial interest, direct or indirect, in the operations of the City; and

1261708.3 11879-037 3 Installment Purchase Agreement (3) is not connected with the City as a member, officer or employee of the City, but who may be regularly retained to audit the accounting records of and make reports thereon to the City.

Independent Engineer means a registered engineer or firm of registered engineers generally recognized to be well-qualified in engineering matters relating to water systems, appointed and paid by the City, and who:

(1) is in fact independent and not under the domination of the City or any member thereof;

(2) does not have a substantial financial interest, direct or indirect, in the operations of the City; and

(3) is not connected with the City as an officer or employee of the City or any member thereof, but who may be regularly retained to make reports to the City.

Installment Payment Dates mean June 1 and December 1 of each year commencing December 1, 2015.

2015 Installment Payments means the installment payments of interest and principal scheduled to be paid by the City under and pursuant to this Installment Purchase Agreement.

Installment Purchase Agreement means this Installment Purchase Agreement dated ______, 2015, between the City and the Bank, as originally executed and as it may from time to time be amended or supplemented in accordance herewith.

Material Adverse Effect means an event or occurrence that adversely affects in a material manner (a) the assets, liabilities, condition (financial or otherwise), business, facilities or operations of the City, (b) the ability of the City to carry out its business in the manner conducted as of the date of this Installment Purchase Agreement or to meet or perform its obligations under this Installment Purchase Agreement on a timely basis, (c) the validity or enforceability of this Installment Purchase Agreement, or (d) the exclusion of the interest component of the 2015 Installment Payments from gross income for federal income tax purposes or the exemption of such interest for state income tax purposes.

Net Proceeds means, when used with respect to any casualty insurance or condemnation award, the proceeds from such insurance or condemnation award remaining after payment of all expenses (including attorneys’ fees) incurred in the collection of such proceeds.

Net Revenues means, for any Fiscal Year, the Revenues during such Fiscal Year less the Operation and Maintenance Costs during such Fiscal Year.

Operation and Maintenance Costs means all expenses and costs of management, operation, maintenance and repair of the Water System and all incidental costs, fees and expenses properly chargeable to the Water System (but excluding debt service or other similar payments on Parity Debt or other obligations and depreciation and obsolescence charges or reserves therefor and amortization of intangibles and inter-fund transfers or other bookkeeping entries of a similar nature).

1261708.3 11879-037 4 Installment Purchase Agreement Parity Debt means the payments made pursuant to any other indebtedness or other obligations (including leases and installment sale agreements) hereafter issued or incurred and secured by a pledge of and lien on Net Revenues equally and ratably with the 2015 Installment Payments.

Prior Installment Payments means a payment of interest component of 2015 Installment Payments made on or prior to the date of any Determination of Taxability.

Purchase Price means the principal amount plus interest thereon owed by the City to the Bank under the terms hereof as provided in Section 3.3.

Rate Stabilization Fund means a fund by that name established pursuant to Section 7.9.

Resolution means the resolution adopted by the City Council on June 18, 2015, approving this Installment Purchase Agreement, approving the financing, and approving related documents.

Revenues means (a) all gross income and revenue received by the City from the ownership and operation of the Water System, including, without limiting the generality of the foregoing,

(1) all income, rents, rates, fees, charges or other moneys derived from the Water Service, but excluding customers' deposits or any other deposits subject to refund until such deposits have become the property of the City;

(2) the earnings on and income derived from the investment of such income, rents, rates, fees, charges or other moneys to the extent that the use of such earnings and income is limited by or pursuant to the law to the Water System;

(3) the proceeds derived by the City directly or indirectly from the sale, lease or other disposition of a part of the Water System; and

(4) deposits from time to time in the revenue fund from the Rate Stabilization Fund but only in an amount to maintain any required Debt Service Coverage Ratio.

Tax Code means the Internal Revenue Code of 1986 as in effect on the date of delivery of this Installment Purchase Agreement or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on that date, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, thereunder.

Water Service means the water furnished, made available, or provided by the Water System.

Water System consists of both the New Water Systems and the Existing Water System and means the whole and each and every part of the water supply, treatment, and delivery system owned and operated by the City, including all additions, betterments, extensions and improvements to the Water System or any part thereof hereafter acquired or constructed.

Section 1.2. Benefits of Installment Purchase Agreement Limited to Parties. Nothing contained herein, expressed or implied, is intended to give to any person other than the City or the Bank any right, remedy or claim under or pursuant hereto, and any agreement or covenant required

1261708.3 11879-037 5 Installment Purchase Agreement herein to be performed by or on behalf of the City or the Bank shall be for the sole and exclusive benefit of the other party.

Section 1.3. Successor Is Deemed Included in all References to Predecessor. Whenever either the City or the Bank is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the City or the Bank, and all agreements and covenants required hereby to be performed by or on behalf of the City or the Bank shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.

Section 1.4. Waiver of Personal Liability. No director, officer or employee of the City shall be individually or personally liable for the payment of the 2015 Installment Payments, but nothing contained herein shall relieve any director, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.

Section 1.5. Article and Section Headings, Gender and References. The headings or titles of the several articles and sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to include all genders. All references herein to “Articles,” “Sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof; and the words “hereby,” “herein,” “hereof,” “hereto,” “herewith” and other words of similar import refer to the Installment Purchase Agreement as a whole and not to any particular article, section, subdivision or clause hereof.

Section 1.6. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the City or the Bank shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof. The City and the Bank hereby declare that they would have executed this Installment Purchase Agreement, and each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof irrespective of the fact that any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.

Section 1.7. California Law. This Installment Purchase Agreement shall be construed and governed in accordance with the laws of the State of California.

Section 1.8. Notices. All written notices to be given hereunder shall be given by mail to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other party in writing from time to time, namely:

If to the City: City of Waterford 101 E Street Waterford, CA 95386 Attention: City Manager

1261708.3 11879-037 6 Installment Purchase Agreement If to the Bank: Umpqua Bank 2998 Douglas Blvd, Suite 100 Roseville, CA 95661 Attention: Melody Stricklin

Section 1.9. Execution in Counterparts. This Installment Purchase Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.

ARTICLE II REPRESENTATIONS BY THE CITY AND THE BANK

Section 2.1. Representations by the City. The City makes the following representations:

(a) The City is a municipal corporation;

(b) The City has full legal right, power and authority to enter into this Installment Purchase Agreement and to carry out its obligations hereunder;

(c) With the exception of the pledge of the Net Revenues hereunder, the Net Revenues have not otherwise been pledged and there are no other liens against the Net Revenues;

(d) The City is not currently, and has not been at any time, in default under any long- term debt obligations;

(e) The City’s audited financial statements for the period ended June 30, 2014, present fairly the financial condition of the City and the Water System as of the date thereof and the results of operation for the period covered thereby. Except as has been disclosed to the Bank, there has been no change in the financial condition of the City or the Water System since June 30, 2014, that will in the reasonable opinion of the City materially impair its ability to perform its obligations under this Installment Purchase Agreement. All information provided by the City to the Bank with respect to the financial performance of the Water System is accurate in all material respects as of its respective date and does not omit any information necessary to make the information provided not misleading.

(f) As currently conducted, the City’s activities with respect to the Water System are in all material respects in compliance with all applicable laws, administrative regulations of the State and of the United States and any agency or instrumentality of either, and any judgment or decree to which the City is subject; and

(g) By proper action, the City has duly authorized the execution, delivery and due performance of this Installment Purchase Agreement.

(h) All information, reports and other papers and data furnished by the City to the Bank were, at the time the same were so furnished, complete and accurate in all material respects and insofar as necessary to give the Bank a true and accurate knowledge of

1261708.3 11879-037 7 Installment Purchase Agreement the subject matter and were provided in expectation of the Bank’s reliance thereon in entering into the transactions contemplated by this Installment Purchase Agreement. No fact is known to the City which has had or, so far as the City can now reasonably foresee, may in the future have a Material Adverse Effect, which has not been set forth in the financial statements previously furnished to the Bank or in other such information, reports, papers and data or otherwise disclosed in writing to the Bank prior to the Closing Date. Any financial, budget and other projections furnished to the Bank by the City or its or their agents were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair and reasonable in light of the conditions existing at the time of delivery of such financial, budget or other projections, and represented, and as of the date of this representation, represent the City’s best estimate of its future financial performance. No document furnished nor any representation, warranty or other written statement made to the Bank in connection with the negotiation, preparation or execution of this Installment Purchase Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state (as of the date made or furnished) any material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were or will be made, not misleading.

Section 2.2. Representations by the Bank. The Bank makes the following representations and warranties:

(a) The Bank is an Oregon state chartered bank organized and existing under the laws of the State of Oregon.

(b) The Bank has full legal right, power and authority to enter into this Installment Purchase Agreement and to carry out its obligations hereunder.

(c) By proper action, the Bank has duly authorized the execution, delivery and due performance of this Installment Purchase Agreement.

ARTICLE III ACQUISITION OF THE 2015 PROJECT; PURCHASE OF THE 2015 PROJECT; 2015 INSTALLMENT PAYMENTS

Section 3.1. Acquisition of the 2015 Project.

(a) Funding. To fund the acquisition of the 2015 Project and associated financing costs, the Bank hereby agrees to:

(i) Project Cost: disburse funds to the City for the payment of the costs of the 2015 Project, pursuant to receipt of a duly executed Draw Request in the form attached hereto as Exhibit D, up to a total of $3,100,000, such disbursements to be made no more than once a month through June 30, 2016, and

(ii) Costs of Issuance: make one disbursement of funds for the payment of costs associated with the delivery of this Installment Purchase Agreement up to a total of $29,000, pursuant to receipt of a duly executed Draw Request. The Bank shall be under no obligation

1261708.3 11879-037 8 Installment Purchase Agreement to pay, and the City shall pay or cause to be paid, all the expenses incident to the performance of the obligations of the City hereunder, including but not limited to (i) all legal fees and the $1,000 Bank fee associated with this Installment Purchase Agreement; (ii) the California Debt and Investment Advisory Commission (fee estimated to be $465), (iii) costs incurred by the Bank in updating the tables found in Exhibit B and Exhibit C, and (iv) fees and expenses of the Municipal Advisor estimated at $2,500. In the event there are costs of issuance that are in excess of $29,000, the City agrees that it is responsible for the payment of all such costs.

All funds disbursed pursuant to this Section 3.1(a) shall be deposited in a checking account to be held in the name of the City at the Bank. City shall use this account to pay costs of issuance and 2015 Project costs.

(b) Acquisition Process. The City hereby sells the New Water Systems to the Bank and agrees to acquire the New Water Systems and the 2015 Improvements from the Bank. The Bank hereby agrees to cause the 2015 Project to be acquired by the City as its agent. The City shall enter into contracts and provide for, as agent for the Bank, the complete acquisition of the 2015 Project. The City hereby agrees that it will cause the acquisition of the 2015 Project to be diligently performed and that it will use its best efforts to cause the acquisition of the 2015 Project to be completed by June 30, 2016, unforeseeable events or delays beyond the reasonable control of the City excepted. It is hereby expressly understood and agreed that the Bank shall be under no liability of any kind whatsoever for the payment of any cost of the 2015 Project and that all such costs and expenses shall be paid by the City.

(c) Changes to the 2015 Project. The City may delete capital facilities that are portions of the 2015 Project described in Exhibit A hereto and substitute other facilities therefor, provided that the following conditions are met:

(i) the City provides written notice to the Bank of the capital facilities of the 2015 Project to be deleted and substituted, which notice shall include a statement that the estimated costs of acquisition of any substituted capital facilities are not less than such costs for the capital facilities deleted; and

(ii) the City shall deliver an opinion of Bond Counsel to the effect that the substitution will not adversely affect the exclusion by the recipients of the 2015 Installment Payments of the interest portion thereof from gross income for federal income tax purposes.

(d) Title. All right, title, and interest in each component of the 2015 Project shall vest in the City immediately upon acquisition or construction thereof. Such vesting shall occur automatically without further action by the Bank or the City, but the Bank shall, if requested by the City or if necessary to assure vesting of title to each component of the 2015 Project in the City, deliver any documents required to assure vesting of title to each component of the 2015 Project in the City.

Section 3.2. Purchase of the 2015 Project. The Bank hereby transfers its interest in and title to the 2015 Project to the City, and the City hereby purchases the 2015 Project from the Bank at the Purchase Price set forth in Section 3.3 (Payment of Purchase Price) herein.

1261708.3 11879-037 9 Installment Purchase Agreement Section 3.3. Payment of Purchase Price.

(a) Aggregate Purchase Price. The Purchase Price to be paid by the City is the sum of all the disbursements made by the Bank pursuant to the Installment Purchase Agreement plus the interest to accrue on the unpaid balance of such disbursements, calculated from the date of each disbursement, over the term hereof, subject to prepayment as provided in Article 4 (Prepayment of 2015 Installment Payments).

(b) 2015 Installment Payments. The City shall, subject to any rights of prepayment provided in Article 4 (Prepayment of 2015 Installment Payments), pay the Purchase Price in 2015 Installment Payments, which comprise principal and interest components, on the dates and in the amounts set forth in Exhibit B. The principal components of the 2015 Installment Payments total the amount of all the disbursements made by the Bank pursuant to the Installment Purchase Agreement. The interest components of the 2015 Installment Payments are paid as, and constitute, interest on the unpaid balance of the principal components, which accrues on the amount of each disbursement from its actual date as shown on the Table of Disbursements attached in Exhibit C.

(c) Updates to Tables. The Bank shall update the information concerning disbursements, any amount not disbursed, and prepayments in the tables included in Exhibit C. The Bank shall also make updates (if any) to the amounts shown as the principal and interest components of the 2015 Installment Payments in Exhibit B and deliver to the City an updated Exhibit B not later than fifteen (15) days before each Installment Payment Date. The City shall be responsible for all legal fees associated with the updates contemplated by this subsection.

(d) Manner of Payment. Each 2015 Installment Payment shall be paid to the Bank in lawful money of the United States of America by check or wire transfer of immediately available funds. If the City fails to make any of the payments required to be made by it under this section, such payment shall continue as an obligation of the City until such amount shall have been fully paid, and the City agrees to pay the same plus interest thereon at the Effective Interest Rate.

(e) Determination of Taxability. Upon the occurrence of a Determination of Taxability, the City shall, with respect to future payments of the 2015 Installment Payments, begin making 2015 Installment Payments with interest components calculated at the Gross-Up Rate. In addition, immediately upon demand of the Bank, the City shall make a payment to the Bank equal to the difference between the amount of the Prior Installment Payments and the amount of such payments with interest components calculated at the Gross-Up Rate. Such payment obligation shall survive the termination of this Installment Purchase Agreement.

Section 3.4. Obligation to Pay.

(a) Obligation Limited to Net Revenues. Notwithstanding any other provisions contained herein, the obligation of the City to make the 2015 Installment Payments is a special obligation of the City payable solely from Net Revenues and does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction.

The City shall not be required to advance any moneys derived from any source of income other than the Net Revenues for the payment of the 2015 Installment Payments or for the

1261708.3 11879-037 10 Installment Purchase Agreement performance of any agreements or covenants required to be performed by it contained herein. The City may, however, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.

(b) Obligation Otherwise Unconditional. The obligation of the City to make the 2015 Installment Payments from the Net Revenues is absolute and unconditional; and, until such time as the Purchase Price shall have been paid in full (or provision for the payment thereof shall have been made pursuant to Article 5 (Discharge of Obligations) herein), the City will not abate, discontinue, or suspend any 2015 Installment Payments required to be made by it under this Installment Purchase Agreement when due, whether or not the 2015 Project or any part thereof is operating or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, whether by reason of material damage to, material destruction of, taking under the power of eminent domain (or sale to any entity threatening the use of such power), material title defect, or other reason. The 2015 Installment Payments shall not be subject to reduction whether by offset or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement for any cause whatsoever.

Section 3.5. Net Contract. The Installment Purchase Agreement shall be deemed and construed to be a net contract, and the City shall pay absolutely net during the term hereof the 2015 Installment Payments and all other payments required hereunder, free of any deductions and without any abatement, diminution, or set-off whatsoever.

ARTICLE IV PREPAYMENT OF 2015 INSTALLMENT PAYMENTS

Section 4.1. Prepayment.

(a) Extraordinary Prepayment. The City may or shall, as the case may be, prepay principal components of the unpaid 2015 Installment Payments as a whole or in part (such that the remaining 2015 Installment Payments after such partial prepayment are substantially equal) on any date from the Net Proceeds as provided herein at a prepayment price equal to the sum of the principal components prepaid plus accrued interest thereon to the date of prepayment.

(b) Optional Prepayment:

(i) On any date, the City may prepay in whole the unpaid principal components of the 2015 Installment Payment, at the following prepayment prices (expressed as percentages of the principal amount prepaid), together with accrued interest to the date fixed for prepayment, provided that the City also pay the amount of any 2015 Installment Payments then in default:

1261708.3 11879-037 11 Installment Purchase Agreement Prepayment Period Prepayment Price (dates inclusive)

Through May 31, 2020 105% June 1, 2020, through May 31, 2025 104 June 1, 2025, and thereafter 100

(ii) Once each Fiscal Year, on any date, the City may prepay up to 10% of the unpaid principal components of the 2015 Installment Payments and the interest accrued thereon to the date fixed for prepayment, without premium, provided that the City also pay the amount of any 2015 Installment Payments then in default. Such prepaid amount shall be allocated to the then unpaid principal components in inverse order of due date. At no time, shall the City use any funds derived from any public or private borrowing for the purposes of making the prepayment contemplated by this subsection.

Section 4.2. Notice of Prepayment. Before making any prepayment pursuant to Article 4 (Prepayment of 2015 Installment Payments) herein, the City shall give written notice to the Bank not less than thirty (30) calendar days prior to the date of prepayment, or such shorter time as is consented to by the Bank.

ARTICLE V DISCHARGE OF OBLIGATIONS

Section 5.1. Discharge of Obligations.

(a) Payment of All 2015 Installment Payments. If the City shall pay or cause to be paid all the 2015 Installment Payments at the times and in the manner provided herein and also pay or cause to be paid all other sums payable hereunder by the City, then the right, title, and interest of the Bank herein shall cease, terminate, become void, and be completely discharged and satisfied. Notwithstanding the satisfaction and discharge of this Installment Purchase Agreement, the covenants of the City to preserve the exclusion of the interest component of the 2015 Installment Payments from gross income for federal income tax purposes contained in Section 7.11 (Tax Covenant) shall survive.

(b) Prepayment Escrow. All or any portion of unpaid 2015 Installment Payments shall, prior to their scheduled payment dates, be deemed to have been paid within the meaning and with the effect expressed in subsection (a) of this Section 5.1 (except that the City shall remain liable for the 2015 Installment Payments, but only out of the money or securities deposited as described below for their payment), if there shall have been irrevocably deposited with an escrow agent or other fiduciary sufficient moneys and securities guaranteed by the full faith and credit of the United States the principal of and interest on which when due will provide money sufficient to pay such 2015 Installment Payments when due or prepay such 2015 Installment Payments in accordance with Section 4.1(b) (Optional Prepayment) herein.

1261708.3 11879-037 12 Installment Purchase Agreement ARTICLE VI SECURITY

Section 6.1. Pledge of Net Revenues. The City hereby irrevocably pledges all of the Net Revenues to the payment of the 2015 Installment Payments. This pledge shall constitute a first lien on the Net Revenues for the payment of the 2015 Installment Payments.

Section 6.2. Additional Debt.

(a) No Superior Obligations. The City shall not issue or incur any obligations secured by a pledge of Revenues or Net Revenues that is superior to the pledge securing the 2015 Installment Payments.

(b) Additional Parity Debt. The City shall not incur additional Parity Debt unless:

(1) the City is not in default under the terms of this Installment Purchase Agreement, and

(2) the Net Revenues for the latest Fiscal Year or any more recent 12- month period selected by the City ending not more than 60 days prior to the adoption of the resolution approving the instrument pursuant to which such proposed Parity Debt is to be issued or incurred, plus, at the option of the City, the additional allowance described below, shall have amounted to at least 1.25 times the sum of (i) the amount of 2015 Installment Payments and (ii) debt service on all Parity Debt outstanding immediately subsequent to the incurring of such additional obligations, in the Fiscal Year in which the calculation is made or any subsequent Fiscal Year in which that sum is at its maximum, as evidenced by both a calculation prepared by the City and an Accountant’s Report on such calculation on file with the City.

Either or both of the following items may be added to Net Revenues for the purpose of applying the restriction in Subsection (b)(2) above:

(1) An allowance for revenues from any additions to or improvements or extensions of the Water System to be constructed with the proceeds of such additional obligations, and also for net revenues from any such additions, improvements or extensions, but that, during all or any part of such Fiscal Year, were not in service, all in an amount equal to 100% of the estimated additional average annual Net Revenues to be derived from such additions, improvements and extensions for the first 36-month period following closing of the proposed Parity Debt, all as shown by the certificate or opinion of a qualified independent consultant employed by the City and deemed acceptable by the Bank; and/or

(2) An allowance for earnings arising from any increase in the charges made for service from the Water System that has become effective prior to the incurring of such additional obligations but that, during all or any part of such Fiscal Year, was not in effect, in an amount equal to 100% of the amount by which the Net Revenues would have been increased if such increase in charges had been in effect during the whole of such Fiscal Year and any period prior to the incurring of such

1261708.3 11879-037 13 Installment Purchase Agreement additional obligations, as shown by the certificate or opinion of an Independent Engineer deemed acceptable by the Bank.

(c) Refundings. The City may incur obligations secured by the Net Revenues to discharge or defease any Parity Debt, if the City either meets the requirements of subsection (b) above or an Accountant’s Report is filed with the Bank to the effect that the Debt Service for each future Fiscal Year following such discharge or defeasance shall be less than or equal to the Debt Service for that Fiscal Year if such discharge or defeasance did not occur.

(d) Subordinate Obligations. The City may incur obligations secured by the Net Revenues on a junior or subordinate basis, if the City meets the requirements of subsection (b) above.

ARTICLE VII COVENANTS OF THE CITY

Section 7.1. Compliance with Installment Purchase Agreement and Resolution. The City will punctually pay the 2015 Installment Payments in strict conformity with the terms hereof, and will faithfully observe and perform all the agreements, conditions, covenants and terms contained herein required to be observed and performed by it, and will not terminate the Installment Purchase Agreement for any cause. The City will faithfully observe and perform all the agreements, conditions, covenants and terms contained in the Resolution resolved therein to be observed and performed by it.

Section 7.2. Compliance with Law and Contracts; Preservation of Rights. The City will faithfully comply with, keep, observe, and perform all valid and lawful obligations or regulations now or hereafter imposed on its operation of the Water System by contract, or prescribed by any law of the United States of America or of the State of California, or by any officer, board, or commission having jurisdiction or control, as a condition of the continued enjoyment of each and every franchise, right, or privilege now owned or hereafter acquired by it, including its right to exist and carry on its business, to the end that such franchises, rights, and privileges shall be maintained and preserved and shall not become abandoned, forfeited, or in any manner impaired.

Section 7.3. Against Sale or Other Disposition of Property. The City will not sell, lease, encumber, or otherwise dispose of the Water System, any part thereof, or interest therein essential to the proper operation of the Water System or to the maintenance of the Revenues. The City will not enter into any agreement or lease that impairs the operation of the Water System or any part thereof necessary to secure adequate Revenues for the payment of the 2015 Installment Payments or that would otherwise impair the rights of the Bank with respect to the Revenues or the operation of the Water System. The City may sell or otherwise dispose of any real or personal property that has become nonoperative or that is not needed for the efficient and proper operation of the Water System or any material or equipment that has become worn out.

Section 7.4. Operation and Maintenance of the Water System. The City will maintain and preserve the Water System in good repair and working order at all times and will operate the Water System in an efficient and economical manner and will pay all Operation and Maintenance Costs of the Water System as they become due and payable.

1261708.3 11879-037 14 Installment Purchase Agreement Section 7.5. Payment of Claims. The City will pay and discharge any and all lawful claims for labor, materials or supplies that, if unpaid, might become a lien on the Revenues or any part thereof or on any funds in the hands of the City prior or superior to the lien of the 2015 Installment Payments or that might impair the security of the 2015 Installment Payments.

Section 7.6. Insurance; Application of Net Proceeds.

(a) Casualty Insurance. The City will procure and maintain or cause to be procured and maintained insurance on the Water System with responsible insurers in such amounts and against such risks (including accident to or destruction of the Water System, malicious mischief and vandalism) as are usually covered in connection with water systems similar to the Water System so long as such insurance is available from reputable insurance companies. In the event of any damage to or destruction of the Water System caused by the perils covered by such insurance, the Net Proceeds thereof shall be applied to the reconstruction, repair, or replacement of the damaged or destroyed portion of the Water System. The City shall begin such reconstruction, repair, or replacement promptly after such damage or destruction shall occur; shall continue and properly complete such reconstruction, repair, or replacement as expeditiously as possible; and shall pay out of such Net Proceeds all costs and expenses in connection with such reconstruction, repair, or replacement so that the same shall be completed and the Water System shall be free and clear of all claims and liens. If such Net Proceeds exceed the costs of such reconstruction, repair, or replacement, then the excess Net Proceeds shall be applied in part to the prepayment of 2015 Installment Payments as provided in Article 4 (Prepayment of 2015 Installment Payments) and in part to such other fund or account as may be appropriate and used for the retirement of Parity Debt in the same proportion that the aggregate unpaid principal balance of 2015 Installment Payments then bears to the aggregate unpaid principal amount of such Parity Debt. If such Net Proceeds are sufficient to enable the City to retire the entire obligation evidenced hereby prior to the final due date of the 2015 Installment Payments as well as the entire obligations evidenced by Parity Debt contracts then remaining unpaid prior to their final respective due dates, the City may elect not to reconstruct, repair, or replace the damaged or destroyed portion of the Water System, and thereupon such Net Proceeds shall be applied to the prepayment of 2015 Installment Payments as provided in Article 4 (Prepayment of 2015 Installment Payments) and to the retirement of such Parity Debt. The insurance policy required by this subsection and provided by third party insurance carriers shall name the City and the Bank as insured parties and the Bank as loss payee and shall include a lender’s loss payable endorsement for the benefit of the Bank.

(b) Public Liability Insurance. The City shall maintain or cause to be maintained throughout the term of this Installment Purchase Agreement a standard comprehensive general liability insurance policy or policies in protection of the City, the Bank and their respective members, officers, agents, employees and assigns. Said policy or policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by reason of the operation of the Water System. Such policy or policies must provide coverage with limits of at least $3,000,000 per occurrence, $5,000,000 in the aggregate, for bodily injury and property damage coverage, and excess liability umbrella coverage of at least $5,000,000, and in all events in form and amount (including any deductibles) satisfactory to the Bank. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City (including, with Bank’s prior written consent, a self-insurance program), and may be maintained in whole or in part in the form of

1261708.3 11879-037 15 Installment Purchase Agreement the participation by the City in a joint powers authority or other program providing pooled insurance. The City will apply the proceeds of such liability insurance toward extinguishment or satisfaction of the liability with respect to which such proceeds have been paid. For coverage pursuant to this subsection, the Bank shall be added as an additional insured.

(c) Other Insurance. The City will procure and maintain such other insurance that it deems advisable or necessary to protect its interests and the interests of the Bank, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with water systems similar to the Water System.

(d) Self Insurance. Any insurance required to be maintained pursuant to paragraph (a) above and any insurance maintained pursuant to paragraph (b) above may be maintained under a self-insurance or pooled risk program so long as such self-insurance or pooled risk program is maintained in the amounts and manner usually maintained in connection with water systems similar to the Water System.

(e) Notice of Cancellation. All policies of insurance required to be maintained herein shall provide that the Bank shall be given thirty (30) days’ written notice of any intended cancellation thereof or reduction of coverage provided thereby.

Section 7.7. Eminent Domain Proceeds. If all or any part of the Water System shall be taken by eminent domain proceedings, the Net Proceeds thereof shall be applied as follows:

(a) If (1) the City obtains and files with the Bank an Engineer’s Report or Accountant’s Report showing (i) the estimated loss of annual Net Revenues, if any, suffered or to be suffered by the City by reason of such eminent domain proceedings, (ii) a general description of the additions, betterments, extensions, or improvements to the Water System proposed to be acquired and constructed by the City from such Net Proceeds, and (iii) an estimate of the additional annual Net Revenues to be derived from such additions, betterments, extensions, or improvements, and (2) the City, on the basis of such Engineer’s Report or Accountant’s Report filed with the Bank, determines that the estimated additional annual Net Revenues will sufficiently offset the estimated loss of annual Net Revenues resulting from such eminent domain proceedings so that the ability of the City to meet its obligations hereunder will not be substantially impaired (which determination shall be final and conclusive) then the City shall promptly proceed with the acquisition and construction of such additions, betterments, extensions, or improvements substantially in accordance with such Engineer’s Report or Accountant’s Report and such Net Proceeds shall be applied for the payment of the costs of such acquisition and construction, and any balance of such Net Proceeds not required by the City for such purpose shall be deposited in the City’s water enterprise fund. If the Equipment is taken along with real property in an eminent domain proceeding, the City shall provide the Bank with a security interest in any new equipment or facilities of at least the same value as the Equipment.

(b) If (1) the City obtains and files with the Bank an Engineer’s Report or Accountant’s Report containing an estimate of annual Net Revenues after the taking by eminent domain and (2) the City, on the basis of such Engineer’s Report or Accountant’s Report, determines that Net Revenues will equal at least one hundred twenty per cent (120%) of the 2015 Installment Payments

1261708.3 11879-037 16 Installment Purchase Agreement and debt service on all Parity Debt outstanding for each Fiscal Year in which 2015 Installment Payments are due, then the City may use such Net Proceeds for any lawful purpose.

(c) If the conditions of neither of the foregoing subsections are met, then such Net Proceeds shall be applied in part to the prepayment of 2015 Installment Payments as provided in Article 4 (Prepayment of 2015 Installment Payments) and in part to such other fund or account as may be appropriate and used for the retirement of Parity Debt in the same proportion as the aggregate unpaid principal balance of 2015 Installment Payments then bears to the aggregate unpaid principal amount of such Parity Debt.

Section 7.8. Rates, Fees and Charges.

(a) The City covenants that it shall prescribe, revise and collect such charges for the Water Service that, after allowances for contingencies and error in the estimates, shall produce Revenues sufficient in each Fiscal Year to provide Net Revenues equal to at least 1.25 times the sum of: (1) the 2015 Installment Payments becoming due and payable in such Fiscal Year, and (2) all debt service and any additional payments required with respect to Parity Debt for such Fiscal Year.

(b) The City will have in effect at all times rules and regulations requiring each customer located on any premises connected with the Water System to pay the rates, fees and charges applicable to the Water Service to such premises and providing for the billing thereof and for a due date and a delinquency date for each bill. The City will not permit any part of the Water System or any facility thereof to be used or taken advantage of free of charge by any corporation, firm or person, or by any public agency (including the United States of America, the State of California and any city, county, district, political subdivision, public corporation or agency of any thereof); provided, that the City may without charge use the Water Service.

Section 7.9. Rate Stabilization Fund. The City may, but is not required to, establish a fund designated as the “Rate Stabilization Fund.” From time to time, the City may deposit in the Rate Stabilization Fund any available funds, including such Net Revenues as the City shall determine are not needed to pay the 2015 Installment Payments. Deposits for each Fiscal Year may be made until (but not after) the date that is one hundred twenty (120) days after the end of such Fiscal Year. The City may withdraw amounts from the Rate Stabilization Fund only for inclusion in Revenues, such withdrawals to be made until (but not after) the date that is one hundred twenty (120) days after the end of such Fiscal Year. All interest or other earnings upon deposits in the Rate Stabilization Fund shall be withdrawn therefrom and accounted for as Revenues. Notwithstanding the foregoing, no deposit of Revenues to the Rate Stabilization Fund may be made if such Revenues were included in the Engineer’s Report or Accountant’s Report submitted pursuant to Section 7.7 (Eminent Domain Proceeds) hereof.

Section 7.10. Protection of Security and Rights of the Bank. The City will preserve and protect the security hereof and the rights of the Bank to the 2015 Installment Payments hereunder and will warrant and defend such rights against all claims and demands of all persons.

Section 7.11. Tax Covenant. The City shall at all times do and perform all acts and things permitted by law that are necessary and desirable in order to assure that interest paid with respect to the 2015 Installment Payments will be excluded from gross income for federal income tax purposes

1261708.3 11879-037 17 Installment Purchase Agreement and shall take no action that would result in such interest not being so excluded. This covenant shall survive the payment in full of the 2015 Installment Payments.

Section 7.12. Indemnification of the Bank. The City shall, to the full extent then permitted by law, indemnify, protect, hold harmless, save, and keep harmless the Bank and its directors, officers, and employees from and against any and all liability, obligations, losses, claims, and damages whatsoever, and expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest, arising out of or as the result of the entering into of this Installment Purchase Agreement or any other agreement entered into in connection herewith or therewith, the design or ownership of the 2015 Project, the ordering, acquisition, use, operation, condition, purchase, delivery, rejection, storage, or return of any part of the 2015 Project, or any accident in connection with the operation, use, condition, possession, storage, or return of any item of the 2015 Project resulting in damage to property or injury to or death to any person including, without limitation, any claim alleging latent and other defects, whether or not discoverable by the City or the Bank; any claim for patent, trademark, or copyright infringement; and any claim arising out of strict liability in tort. Notwithstanding the forgoing, this indemnification and hold harmless shall not include any liability arising out of or resulting from the negligence, willful misconduct, or wrongful acts of the Bank, its directors, officers, employees, or agents. The indemnification arising under this section shall continue in full force and effect notwithstanding the full payment of all obligations under this Installment Purchase Agreement or the termination of the term of this Installment Purchase Agreement for any reason. The City and the Bank mutually agree to promptly give notice to each other of any claim or liability hereby indemnified against following either’s learning thereof.

Section 7.13. Additional Information. The City agrees to furnish to the Bank (i) its Audited Financial Statements or, if one is prepared, its CAFR within two hundred seventy days (270) of the end of the Fiscal Year, together with a certificate that the City is in compliance with the covenant contained herein, and (ii) promptly, from time to time, such information regarding the operations, financial condition and property of the City and the Water System as the Bank may reasonably request. Any audited financial statements furnished to the Bank shall be prepared in accordance with generally accepted accounting principles, consistently applied, and shall fairly present the City’s financial condition as of the date of the statements. Within 15 days of adoption by the City Council, the City will provide the Bank with a copy of its annual budget and any interim updates or modifications to such budget.

Section 7.14. Further Assurances. The City will adopt, deliver, execute and make any and all further assurances, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the performance hereof and for the better assuring and confirming unto the Bank of the rights and benefits provided to it herein.

Section 7.15. Opinion of City Attorney . The City will cause to be delivered an opinion of the City Attorney dated the Closing Date and addressed to the Bank to the effect that:

(i) the City is a municipal corporation;

1261708.3 11879-037 18 Installment Purchase Agreement (ii) the Resolution was duly adopted at a meeting of the City Council that was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout;

(iii) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or, to the best knowledge of such counsel after reasonable investigation, threatened against or affecting the City, to restrain or enjoin the payment of the 2015 Installment Payments under this Installment Purchase Agreement, or in any way contesting or affecting the validity of the Resolution or this Installment Purchase Agreement, and

(iv) the execution of this Installment Purchase Agreement, the adoption of the Resolution and compliance by the City with the provisions of the foregoing, under the circumstances contemplated thereby, do not and will not constitute on the part of the City a breach or default under any agreement or other instrument to which the City is a party or by which it is bound (that are known to the City Attorney) or any existing law, regulation, court order or consent decree to which the City is subject.

Section 7.16. Budget and Appropriation of 2015 Installment Payments; Certification to Bank. The City covenants to take such action as may be necessary to include in each of its annual budgets the payments required to be made by the City under Sections 3.3 (Payment of Purchase Price) and 3.4 (Obligation to Pay), and to make the necessary annual appropriations for all such payments. If any payment of 2015 Installment Payments requires the adoption by the City of a supplemental budget or appropriation, the City will promptly adopt the same. The covenants on the part of the City herein contained constitute duties imposed by law and it is the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Installment Purchase Agreement agreed to be carried out and performed by the City.

Promptly following the adoption of an annual budget which includes the appropriations required by this Section, but in any event not later than September 15 in each Fiscal Year, the City shall execute and deliver to the Bank a certificate of the City in substantially the form attached hereto as Exhibit E, which shall evidence the compliance by the City with the covenants set forth in this Section 7.16 with respect to such Fiscal Year.

ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES OF THE BANK

Section 8.1. Events of Default and Remedies.

(a) Events of Default. The following shall be Events of Default hereunder:

(1) Failure by the City to pay any 2015 Installment Payment or debt service on any Parity Debt at the time specified herein.

(2) Failure by the City to observe and perform any covenant (including, but not limited to, the provision of financial reports), condition or agreement on its

1261708.3 11879-037 19 Installment Purchase Agreement part contained herein or in agreement or instrument pursuant to which Parity Debt is issued, other than in clause (1) of this subsection, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied has been given to the City by the Bank; provided, however, that the Bank and the City may agree that action by the City to cure such failure may be extended beyond such thirty-day period.

(b) Remedies on Default. Whenever any Event of Default shall have happened and be continuing, the Bank shall have the right, at its option upon notice to the City, to:

(1) declare the entire principal amount of the unpaid 2015 Installment Payments and the accrued interest thereon to be immediately due and payable, whereupon the same shall immediately become due and payable; and/or

(2) for the account of the City, incur and pay reasonable expenses for repair, maintenance, and operation of the Water System and such other reasonable expenses as may be necessary to cure the cause of default.

(3) impose a default rate on the outstanding 2015 Installment Payments, from the date of default to the date the cause of default has been cured at the rate of Effective Interest Rate plus 3.00% per annum.

The provisions of the preceding clause (1) are subject to the condition that if, at any time after the principal amount of the unpaid 2015 Installment Payments shall have been so declared due and payable pursuant to the preceding clause (1), and before any judgment or decree for the payment of the moneys due shall have been obtained or entered, the City shall deposit with the Bank a sum sufficient to pay the unpaid principal amount of the 2015 Installment Payments coming due prior to such declaration, and the reasonable expenses of the Bank, and any and all other defaults known to the Bank (other than in the payment of the entire principal amount of the unpaid 2015 Installment Payments and the accrued interest thereon due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Bank or provision deemed by the Bank to be adequate shall have been made therefor, then and in every such case the Bank, by written notice to the City, may rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right or power consequent thereon.

Section 8.2. Application of Funds Upon Acceleration. Upon the date of the declaration of acceleration as provided in Section 8.1, all Revenues thereafter received by the City shall be applied in the following order:

First, to the payment, without preference or priority, and in the event of any insufficiency of such Revenues ratably without any discrimination or preference, of the fees, costs and expenses of the Bank if any, in carrying out the provisions of this article, including reasonable compensation to their respective accountants and counsel;

Second, to the payment of the Operation and Maintenance Costs; and

1261708.3 11879-037 20 Installment Purchase Agreement Third, to the payment of the entire principal amount of the unpaid 2015 Installment Payments and the unpaid principal amount of any other obligations secured by the Net Revenues and the accrued interest thereon, with interest on the overdue installments at the rate or rates of interest applicable to the 2015 Installment Payments and such other obligations if paid in accordance with their respective terms.

Section 8.3. Other Remedies of the Bank. The Bank shall have the right:

(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the City or any director, officer or employee thereof, and to compel the City or any such director, officer or employee to perform and carry out its or his duties under the agreements and covenants required to be performed by it or him contained herein;

(b) by suit in equity to enjoin any acts or things that are unlawful or violate the rights of the Bank; or

(c) by suit in equity upon the happening of an Event of Default to require the City and its council, officers and employees to account as the trustee of an express trust.

Section 8.4. Non-Waiver. Nothing in this article or in any other provision hereof shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the 2015 Installment Payments to the Bank at the respective due dates or upon prepayment, or shall affect or impair the right of the Bank, which is also absolute and unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein.

A waiver of any default or breach of duty or contract by the Bank shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Bank to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or shall be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy conferred upon the Bank by the Law or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Bank.

If any action, proceeding or suit to enforce any right or exercise any remedy is abandoned or determined adversely to the Bank, the City and the Bank shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.

Section 8.5. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Bank is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by the law.

Section 8.6. Disclaimer of Warranties. The City represents that it has determined the 2015 Project prior to having requested Bank to finance the 2015 Project. The City agrees that Bank has not made any, and makes no, representations or warranties of any kind or nature, directly or indirectly, express or implied, as to the 2015 Project, including (without limitation) the suitability of

1261708.3 11879-037 21 Installment Purchase Agreement the 2015 Project, its durability, fitness for any particular purpose, condition, their capacity, their operation, their performance, their design, their materials, their workmanship and/or their quality. The City acknowledges that Bank has not constructed the 2015 Project and that the City acquires the 2015 Project AS-IS, it being agreed that all of the aforementioned risks are to be borne by the City.

ARTICLE IX ASSIGNMENT; AMENDMENTS

Section 9.1. Assignment.

(a) The Bank may further assign its right, title and interest in this Installment Purchase Agreement, the 2015 Installment Payments and other amounts due hereunder and its interest in the Water System in whole to one or more assignees or subassignees at any time, without the consent of the City. Upon such assignment the assignee of such assignment shall be entitled to all rights of the Bank set forth herein and shall be entitled to all notices required to be sent to the Bank pursuant to this Installment Purchase Agreement. The City shall cooperate with the Bank either now or hereafter by acknowledging any agreement relating thereto which in no way will alter or affect the terms and conditions of this Installment Purchase Agreement and the assignment of this Installment Purchase Agreement by the Bank. No such assignment shall be effective as against the City unless and until the entity or person making the assignment shall have filed with the City written notice thereof. During the term of this Installment Purchase Agreement, the City shall keep a complete and accurate record of all such notices of assignment as a register of all assignees and shall make payments to the assignee designated in such register. Subject always to the foregoing, this Installment Purchase Agreement inures to the benefit of, and is binding upon the successors and assigns of the parties hereto.

Section 9.2. Amendments Permitted.

This Installment Purchase Agreement and the rights and obligations of the Bank and the City may be modified or amended at any time but only with the written consent of the Bank.

[Signature Page Follows]

1261708.3 11879-037 22 Installment Purchase Agreement IN WITNESS WHEREOF, the parties hereto have executed this Installment Purchase Agreement by their officers thereunto duly authorized as of the day and year first written above.

CITY:

City of Waterford

By: Tim Ogden, City Manager

BANK:

Umpqua Bank

By: Name: Title:

1261708.3 11879-037 23 Installment Purchase Agreement EXHIBIT A

DESCRIPTION OF THE 2015 PROJECT

The 2015 Project consists of the following:

1261708.3 11879-037 A-1 Installment Purchase Agreement EXHIBIT B

2015 INSTALLMENT PAYMENTS

Scheduled Adjusted Installment Principal Principal Interest Payment Dates Component1 Component2 Component3 Total4 12/1/2015 6/1/2016 12/1/2016 6/1/2017 12/1/2017 6/1/2018 12/1/2018 6/1/2019 12/1/2019 6/1/2020 12/1/2020 6/1/2021 12/1/2021 6/1/2022 12/1/2022 6/1/2023 12/1/2023 6/1/2024 12/1/2024 6/1/2025 12/1/2025 6/1/2026 12/1/2026 6/1/2027 12/1/2027 6/1/2028 12/1/2028 6/1/2029 12/1/2029 6/1/2030

1. The amounts shown in column 1 are based on the assumption of full funding on ______, 2015.

2. The Bank shall adjust the amount of each Scheduled Principal Component to reflect any amount not disbursed pursuant to the Installment Purchase Agreement by June 30, 2016, and any prepayments made (as recorded in the Table of Undisbursed Amount and Prepayments below) and shall note the adjusted amounts in the table not later than 15 days before an Installment Payment Date.

1261708.3 11879-037 B-1 Installment Purchase Agreement 3. The Bank shall calculate the interest component due on any Installment Payment Date as the product of the Effective Interest Rate and the total unpaid disbursements calculated from the later of the date of each disbursement and the immediately preceding Installment Payment Date, on the basis of a 360-day year comprising twelve 30-day months. The Bank shall note the interest component in the table not later than 15 days before an Installment Payment Date.

4. The Bank shall total the Adjusted Principal Component and the Interest Component for each Installment Payment Date and record it in this column.

Effective Interest Rate: [3.13]% per annum.

1261708.3 11879-037 B-2 Installment Purchase Agreement EXHIBIT C

TABLE OF DISBURSEMENTS

The Bank shall note the amount of each disbursement made pursuant to the Installment Purchase Agreement in the table below: Disbursement Total Disbursements Signature of Date Amount Made to Date Bank Officer

TABLE OF UNDISBURSED AMOUNT AND PREPAYMENTS If less than all of the amount available for disbursement pursuant to the Installment Purchase Agreement is disbursed at June 30, 2016, the Bank shall record the amount not disbursed in the table below. If the City prepays any portion of the principal component of the 2015 Installment Payments, the Bank shall record the date and the amount of such prepayment in the table below. The Bank shall also record the amount of principal that remains unpaid after such non-disbursement or prepayment. Amount not Remaining Unpaid Signature of Date Disbursed or Prepaid Principal Amount Bank Officer

1261708.3 11879-037 C-1 Installment Purchase Agreement EXHIBIT D

FORM OF DRAW REQUEST

PROJECT COST

DRAW CERTIFICATE NO.

To: Umpqua Bank 2998 Douglas Blvd., Suite 100 Roseville, CA 95661 Attn: ______

[Insert wire instructions, if any]

On behalf of the City of Waterford (the “City”), I hereby certify that:

1. I am the City Manager of the City, and that I am authorized to request this Draw under the Installment Purchase Agreement which is dated as of ______, 2015 (the “Installment Purchase Agreement”) and to make the representations on behalf of the City set forth herein.

2. The amount of this Draw is $______. The aggregate amount of Draws under the Installment Purchase Agreement, including this Draw, does not exceed $3,100,000.

3. The Draw will be expended to pay costs of the 2015 Project.

4. No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an Event of Default (as such term is defined in the Installment Purchase Agreement) exists at the date hereof. The representations of the City in the Installment Purchase Agreement are true and correct on this date.

[5. The City intends that this will be the final Draw under the Installment Purchase Agreement. Attached is the Certificate of Completion for the 2015 Project. The City has drawn the full amount of the Purchase Price of [$______]. OR The City has drawn the total amount of $______and requests a revised schedule of 2015 Installment Payments showing the components of principal and interest due on each Payment Date.]

Dated: ______

CITY OF WATERFORD

By: Authorized Representative

1261708.3 11879-037 D-1 Installment Purchase Agreement EXHIBIT E

FORM OF ANNUAL CITY CERTIFICATION REGARDING BUDGET AND APPROPRIATION OF 2015 INSTALLMENT PAYMENTS

The undersigned hereby states and certifies that:

(i) I am the duly appointed, qualified and acting ______of the City of Waterford, a municipal corporation (the “Borrower”), and as such, I am familiar with the facts herein certified and am authorized and qualified to certify the same;

(ii) the City has previously received proceeds in the aggregate principal amount of $[______] (the “Obligation”) under an Installment Purchase Agreement dated ______, 2015 (the “Installment Purchase Agreement”), between the City and Umpqua Bank, as Lender;

(iii) during the fiscal year commencing ______(the “Ensuing Fiscal Year”), the aggregate amount of 2015 Installment Payments coming due on the Obligation is $______;

(iv) on ______, 20____, the City Council of the City duly approved by resolution or minute order at a meeting that was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting at the time of adoption, a budget for the City (the “Adopted Budget”) with respect to the Ensuing Fiscal Year;

(v) pursuant to the Adopted Budget, the City has budgeted the payment of the 2015 Installment Payments coming due during the Ensuing Fiscal Year on the Obligation; and

(vi) attached hereto is an extract from the Adopted Budget showing a line item for payment of the 2015 Installment Payments coming due during the Ensuing Fiscal Year on the Obligation.

Capitalized terms used herein and not otherwise defined have the meanings given them in the Installment Purchase Agreement.

Dated: ______. CITY OF WATERFORD

By: ______Name: ______Title: ______

1261708.3 11879-037 E-1 Installment Purchase Agreement City of Waterford Installment Purchase Agreement (2015 Credit Facility) Sources and Uses of Funds

Sources of Funds

Par Amount of Bonds 3,100,000.00 Plus: Accrued Interest - Less: (OID) / Plus: OIP - Less: Underwriter's Discount - - Net Proceeds 3,100,000.00 Other Source of Funds - Other Source of Funds -

Total Sources 3,100,000.00

Uses of Funds

Project Fund Deposit 3,071,000.00 Less: Interest Earnings - Net Funds 3,071,000.00 Capitalized Interest Fund - Less: Interest Earnings - Less: Reserve Fund Earnings - Net Funds - Reserve Fund - Costs of Issuance 29,000.00 Surety Bond Premium - - Bond Insurance - - L/C Fees (Upfront) - - Accrued Interest - Other Use of Funds - Other Use of Funds -

Total Uses 3,100,000.00

Rounding Adjustment -

Run Date June 12, 2015 Run Time 7:25 AM

MuniSoft Version 2.0 6/12/2015, 7:25 AM City of Waterford Installment Purchase Agreement (2015 Credit Facility) Summary Calculations

Arbitrage Yield 3.13023 % True Interest Cost (TIC) 3.13023 % "All-In" True Interest Cost (AIC) 3.26133 %

Average Coupon 3.13000 % Net Interest Cost (NIC) 3.13000 %

Average Life 8.490 Years

MuniSoft Version 2.0 6/12/2015, 7:25 AM City of Waterford Installment Purchase Agreement (2015 Credit Facility) Gross Debt Service Schedule

Periodic Annual Date Principal Rate Interest Debt Service Debt Service

07/01/15 12/01/15 40,429.17 40,429.17 06/01/16 165,100.00 3.130 48,515.00 213,615.00 254,044.17 12/01/16 45,931.19 45,931.19 06/01/17 170,300.00 3.130 45,931.19 216,231.19 262,162.37 12/01/17 43,265.99 43,265.99 06/01/18 175,600.00 3.130 43,265.99 218,865.99 262,131.98 12/01/18 40,517.85 40,517.85 06/01/19 181,100.00 3.130 40,517.85 221,617.85 262,135.70 12/01/19 37,683.64 37,683.64 06/01/20 186,700.00 3.130 37,683.64 224,383.64 262,067.27 12/01/20 34,761.78 34,761.78 06/01/21 192,600.00 3.130 34,761.78 227,361.78 262,123.56 12/01/21 31,747.59 31,747.59 06/01/22 198,600.00 3.130 31,747.59 230,347.59 262,095.18 12/01/22 28,639.50 28,639.50 06/01/23 204,800.00 3.130 28,639.50 233,439.50 262,079.00 12/01/23 25,434.38 25,434.38 06/01/24 211,300.00 3.130 25,434.38 236,734.38 262,168.76 12/01/24 22,127.54 22,127.54 06/01/25 217,900.00 3.130 22,127.54 240,027.54 262,155.07 12/01/25 18,717.40 18,717.40 06/01/26 224,700.00 3.130 18,717.40 243,417.40 262,134.80 12/01/26 15,200.85 15,200.85 06/01/27 231,700.00 3.130 15,200.85 246,900.85 262,101.69 12/01/27 11,574.74 11,574.74 06/01/28 239,000.00 3.130 11,574.74 250,574.74 262,149.48 12/01/28 7,834.39 7,834.39 06/01/29 246,400.00 3.130 7,834.39 254,234.39 262,068.78 12/01/29 3,978.23 3,978.23 06/01/30 254,200.00 3.130 3,978.23 258,178.23 262,156.46

Subtotal 3,100,000.00 823,774.27 3,923,774.27 3,923,774.27 Accrued - - - Total 3,100,000.00 823,774.27 3,923,774.27 3,923,774.27

MuniSoft Version 2.0 6/12/2015, 7:25 AM City of Waterford Installment Purchase Agreement (2015 Credit Facility) Sources and Uses of Funds

Sources of Funds

Par Amount of Bonds 2,629,000.00 Plus: Accrued Interest - Less: (OID) / Plus: OIP - Less: Underwriter's Discount - - Net Proceeds 2,629,000.00 Other Source of Funds - Other Source of Funds -

Total Sources 2,629,000.00

Uses of Funds

Project Fund Deposit 2,600,000.00 Less: Interest Earnings - Net Funds 2,600,000.00 Capitalized Interest Fund - Less: Interest Earnings - Less: Reserve Fund Earnings - Net Funds - Reserve Fund - Costs of Issuance 29,000.00 Surety Bond Premium - - Bond Insurance - - L/C Fees (Upfront) - - Accrued Interest - Other Use of Funds - Other Use of Funds -

Total Uses 2,629,000.00

Rounding Adjustment -

Run Date June 12, 2015 Run Time 9:04 AM

MuniSoft Version 2.0 6/12/2015, 9:04 AM City of Waterford Installment Purchase Agreement (2015 Credit Facility) Summary Calculations

Arbitrage Yield 3.13023 % True Interest Cost (TIC) 3.13023 % "All-In" True Interest Cost (AIC) 3.28500 %

Average Coupon 3.13000 % Net Interest Cost (NIC) 3.13000 %

Average Life 8.490 Years

MuniSoft Version 2.0 6/12/2015, 9:04 AM City of Waterford Installment Purchase Agreement (2015 Credit Facility) Gross Debt Service Schedule

Periodic Annual Date Principal Rate Interest Debt Service Debt Service

07/01/15 12/01/15 34,286.54 34,286.54 06/01/16 140,000.00 3.130 41,143.85 181,143.85 215,430.39 12/01/16 38,952.85 38,952.85 06/01/17 144,400.00 3.130 38,952.85 183,352.85 222,305.70 12/01/17 36,692.99 36,692.99 06/01/18 148,900.00 3.130 36,692.99 185,592.99 222,285.98 12/01/18 34,362.71 34,362.71 06/01/19 153,600.00 3.130 34,362.71 187,962.71 222,325.41 12/01/19 31,958.87 31,958.87 06/01/20 158,400.00 3.130 31,958.87 190,358.87 222,317.73 12/01/20 29,479.91 29,479.91 06/01/21 163,300.00 3.130 29,479.91 192,779.91 222,259.81 12/01/21 26,924.26 26,924.26 06/01/22 168,400.00 3.130 26,924.26 195,324.26 222,248.52 12/01/22 24,288.80 24,288.80 06/01/23 173,700.00 3.130 24,288.80 197,988.80 222,277.60 12/01/23 21,570.40 21,570.40 06/01/24 179,200.00 3.130 21,570.40 200,770.40 222,340.79 12/01/24 18,765.92 18,765.92 06/01/25 184,800.00 3.130 18,765.92 203,565.92 222,331.83 12/01/25 15,873.80 15,873.80 06/01/26 190,500.00 3.130 15,873.80 206,373.80 222,247.59 12/01/26 12,892.47 12,892.47 06/01/27 196,500.00 3.130 12,892.47 209,392.47 222,284.94 12/01/27 9,817.25 9,817.25 06/01/28 202,700.00 3.130 9,817.25 212,517.25 222,334.49 12/01/28 6,644.99 6,644.99 06/01/29 209,000.00 3.130 6,644.99 215,644.99 222,289.98 12/01/29 3,374.14 3,374.14 06/01/30 215,600.00 3.130 3,374.14 218,974.14 222,348.28

Subtotal 2,629,000.00 698,629.04 3,327,629.04 3,327,629.04 Accrued - - - Total 2,629,000.00 698,629.04 3,327,629.04 3,327,629.04

MuniSoft Version 2.0 6/12/2015, 9:04 AM General Business 5c June 18, 2015 Tim Ogden, City Manager City Council Staff Report

Approve the Short Term Operations and Maintenance Services for the Waterford and Hickman Water Systems with City of Modesto

SUMMARY: The operations and maintenance agreement with the City of Modesto will provide Waterford their consulting services and technical support, as well as labor, if needed, as Waterford acquires the water systems in Waterford and Hickman.

FISCAL IMPACT: The first six months of operations and maintenance consulting services and technical support assistance is at no cost. An additional six months of services after acquisition will be at-cost as reflected in Exhibit A. Additionally, operations and maintenance labor costs for up to three months would be at-cost as well, if utilized.

ANALYSIS: The Waterford City Council approved to form the Purchase Sale Agreement for the acquisition of the water systems in Waterford and Hickman from the City of Modesto on April 16, 2015, and the City of Modesto will be considering its approval of the agreement on June 23, 2015, as well as this agreement. The acquisition will cost $2,600,000, and the financial arrangements include the purchase price and an additional $500,000 for capital improvements as needed.

As the City of Waterford takes ownership of the water systems, and as cash flow allows, staff will purchase needed equipment, ensure sufficiently hired and trained personnel, and become fully acquainted with the water systems. During this transition, staff has prepared an agreement with the City of Modesto for operations and maintenance consulting services as well as labor to ensure high quality service continuity to the citizens till the City of Waterford is fully self-sufficient.

The operations and maintenance agreements spells out the following agreements: 1. Modesto will provide Waterford up to 12 months at a maximum of 16 hours a month of consulting services and technical support (on or off site, including whether via telephone or email) for both water systems with 24 hour notice. 2. The first six months of consulting services will be at no cost, with the following six months of consulting services, if utilized, reimbursed at Modesto’s full cost recovery rates. 3. Modesto will provide up to three months of labor, if utilized, reimbursed at Modesto’s full cost recovery rates. 4. In this agreement, Waterford agrees to indemnify and hold harmless Modesto for any losses as a result of their consulting or labor services in Waterford.

Waterford, is also seeking to secure similar agreements with other agencies utilizing the Central San Joaquin Valley Risk Management Authority, or private sector firms to mitigate our risk exposure. However, this agreement with Modesto will satisfy the State, and our lender, as well as staff ensuring maximum preparation for this ownership transition of the water systems.

ATTACHMENTS:  Resolution 2015-53 WATERFORD CITY COUNCIL RESOLUTION 2015-53

A RESOLUTION APPROVING THE SHORT TERM OPERATIONS AND MAINTENANCE SERVICES FOR THE WATERFORD AND HICKMAN WATER SYSTEMS WITH THE CITY OF MODESTO

WHEREAS, the operations and maintenance agreement with the City of Modesto will provide Waterford consulting services and technical support, as well as labor, if needed, as Waterford acquires the water systems in Waterford and Hickman.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATERFORD DOES HEREBY RESOLVE AS FOLLOWS:

1. Modesto will provide Waterford up to 12 months at a maximum of 16 hours a month of consulting services and technical support (on or off site, including whether via telephone or email) for both water systems with 24 hour notice. 2. The first six months of consulting services will be at no cost, with the following six months of consulting services, if utilized, reimbursed at Modesto’s full cost recovery rates. 3. Modesto will provide up to three months of labor, if utilized, reimbursed at Modesto’s full cost recovery rates. 4. In this agreement, Waterford agrees to indemnify and hold harmless Modesto for any losses as a result of their consulting or labor services in Waterford.

AYES: NOES: ABSTAIN: ABSENT:

CITY OF WATERFORD,

Mike Van Winkle, MAYOR ATTEST:

Lori Martin, City Clerk

APPROVED AS TO FORM:

Corbett J. Browning, City Attorney AGREEMENT for SHORT TERM OPERATIONS and MAINTENANCE SERVICES WATERFORD AND HICKMAN WATER SYSTEMS

THIS AGREEMENT (“O&M Agreement” herein) is made on this ____ day of ______2015, between the City of Modesto (hereinafter "Modesto"), and the City of Waterford, (hereinafter "Waterford"). This O&M Agreement is intended to supplement and clarify O&M provisions set forth in section 6(y) of the “Waterford-Hickman Water Systems Asset Purchase Agreement” (“Purchase Agreement”) entered into by the parties and dated ______2015. All capitalized terms used in this O&M Agreement and not otherwise defined herein are as set forth in the Purchase Agreement. Except to the extent any provision of the Purchase Agreement is specifically modified by this O&M Agreement, the provisions of the Purchase Agreement shall apply to and control this O&M Agreement.

Modesto and Waterford agree as follows: 1) a) So long as Modesto remains the state licensed operator of the Water Systems, Modesto agrees to allow Waterford’s staff to work shadow Modesto’s work on the Systems while laboring in Waterford or Hickman. Beginning upon the Closing Date and continuing for up to 12 months following the Closing Date, Modesto will provide Waterford with a maximum of sixteen hours per month of Operations and Maintenance Consulting Services and technical support for both Water Systems with 24 hour notice. During the three months following the Closing Date, Modesto shall also provide Waterford with O&M Labor on an as needed and as requested basis. b) During the six months immediately following the Closing Date, Modesto shall provide the above described maximum of sixteen hours per month of Operations and Maintenance Consulting Services at no cost to Waterford. Beginning six months following the Closing Date, and continuing for the following six months, Waterford shall reimburse Modesto for all Operations and Maintenance Consulting Services at Modesto’s full cost recovery rate set forth in Exhibit A to this O&M Agreement. c) “Operations and Maintenance Consulting Services” shall include all work performed by Modesto staff engaged in the work described in this section, whether on or off site, including whether via telephone, or email. Except when Waterford requests Modesto staff to provide O&M Labor, beginning upon and continuing after the Closing Date, actual O&M labor will be performed solely by Waterford’s staff and shall be Waterford’s sole responsibility. In the event that after the Closing Date Waterford requests Modesto staff to undertake and perform O&M Labor, Waterford shall reimburse Modesto for all Operations and Maintenance Labor performed by Modesto staff at Modesto’s full cost recovery rate set forth in Exhibit A.

2) In addition to the Buyer’s Indemnification provisions set forth in Section 15 of the Purchase Agreement, Waterford agrees to indemnify and hold harmless Modesto and its officials, directors, officers, employees, agents, consultants, attorney(ies), and assigns from and against any and all losses, directly or indirectly, as a result of, or based upon or arising from Modesto’s

1 provision of Operations and Maintenance Consulting Services and/or Operations and Maintenance Labor pursuant to the provisions of this O&M Agreement.

Both parties indicate their approval of this Agreement by their signatures below.

CITY OF MODESTO CITY OF WATERFORD

______Name: Name: Title:

Date: ______Date: ______

Approved as to Form: Approved as to Form:

______Name: Name: Title: Title:

Date: ______Date:______

2 General Business 5d June 18, 2015 Matt Erickson, Public Works Director City Council Staff Report

Authorize San Joaquin Valley Air Pollution Control District Grant Submittal of $16,802.90 for GEM EM 1400 LSV Electric Vehicle

SUMMARY: The San Joaquin Valley Air Pollution Control District (“SJVAPCD”) is offering a Public Benefit Grant Program for new alternative vehicle purchases. The City is applying for the grant for one electric vehicle to be used for water meter reading, public events, education, and other purposes.

FISCAL IMPACT: The SJVAPCD grant covers up to $20,000 for each electric vehicle. The grant submittal is for $16,802.90. No local match is required.

ANALYSIS: The SJVAPCD is offering a Public Benefit Grant Program for new alternative vehicle purchases and the procedures established by the SJVAPCD require the applicant to certify by resolution the approval of application submittal. If successful, the city will enter into a contract with the SJVAPCD to complete the purchase.

The City has been awarded this grant in the past for the electric Gator vehicle and the two Zero Police motorcycles. If approved, the Waterford City Council authorizes the filing of an application for one (1) electric GEM EM 1400 LSV vehicle to be used as a pool vehicle and authorizes the City Manager to execute all related documentation. The grant is a first come first served and could possibly be awarded by the end of the year.

ENVIRONMENTAL REVIEW: N/A

ATTACHMENTS:

 Resolution 2015-48  SJVUAPCD Grant Application  GEM EM 1400 LSV Brochure  GEM EM 1400 LSV Vehicle Quote

WATERFORD CITY COUNCIL RESOLUTION #2015-48

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD, STANISLAUS COUNTY, APPROVING THE APPLICATION FOR THE SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT PUBLIC BENEFIT GRANT PROGRAM – NEW ALTERNATIVE FUEL VEHICLE PURCHASE

WHEREAS, the San Joaquin Valley Air Pollution Control District (SJVAPCD) is offering a Public Benefit Grant Program for new alternative vehicle purchases; and

WHEREAS, the procedures established by the SJVAPCD require the applicant to certify by resolution the approval of application to the Public Benefit Grant Program; and

WHEREAS, the applicant will enter into a contract with the SJVAPCD to complete the purchase of alternative fuel vehicles;

THEREFORE, BE IT RESOLVED, that the Waterford City Council hereby approved the filing of an application for one (1) GEM EM 1400 LSV electric vehicle.

1. Certifies that said applicant has or will have available prior to commencement of any purchases included in this application, the sufficient funds to complete the project; and 2. Certifies that the applicant has or will have sufficient funds to maintain the purchased vehicles; and 3. Certifies that the applicant has reviewed, understands and agrees to the General Provisions contained in the contract shown in the grant administration guidelines; and 4. Delegates authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but now limited to applications, agreements, amendments, and payment requests, which may be necessary for completion of the grant scope; and 5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations, and guidelines.

The foregoing Resolution was approved and adopted the 18th day of June, 2015 by the Waterford City Council by the following vote:

AYES: NOES: ABSTAIN: ABSENT: CITY OF WATERFORD

Mike Van Winkle, Mayor

ATTEST: APPROVED AS TO FORM:

LORI MARTIN CORBETT J. BROWNING City Clerk City Attorney

General Business 5e June 18, 2015 Tina Envia, Finance Manager City Council Staff Report

Approve the 2015-2016 Appropriations Limit

SUMMARY:

Approve the attached calculation of the Appropriations Limit for Fiscal Year 2015-2016.

FISCAL IMPACT:

N/A

ATTACHMENTS  Resolution 2015-50  Calculation of the Appropriations Limit for FY 2015-2016 WATERFORD CITY COUNCIL RESOLUTION #2015-50

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2015-2016

WHEREAS, Article XIII (B) of the California Constitution provides that the Appropriations limit for the 2015-2016 Fiscal Year is calculated by adjusting the Appropriations limit for the 2014-2015 Fiscal Year, by the changes in both the Nonresidential Assessed Valuation of California Per Capita Personal Income, and changes in Population for the City of Waterford; and,

WHEREAS, the State of California’s Department of Finance has established a 3.82% increase in Per Capita Personal Income, and a .54% increase in the City of Waterford’s Population; and,

WHEREAS, the Appropriations limit for Fiscal Year 2015-2016 has been calculated by the Finance Department to be $2,250,469; and,

WHEREAS, the City of Waterford has complied with all the provisions of Article XIII (B) in determining the Appropriations Limit for Fiscal Year 2015-2016.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Waterford hereby finds, declares, and establishes the Appropriations Limit for the City of Waterford for Fiscal Year 2015-2016, pursuant to Article XIII (B) of the Constitution of the State of California, to be $2,250,469.

AYES: NOES: ABSENT: ABSTAIN:

City of Waterford,

Michael Van Winkle, Mayor

ATTEST: APPROVED AS TO FORM:

Lori Martin, MMC, City Clerk Corbett J. Browning, City Attorney

City of Waterford Calculation of the Appropriation Limit

Per Capita Personal Per Population Income Capita Population Change Change ratio Change ratio Factor Limit

from Dept of from Dept of Finance letter Finance letter

FY00 Obtained from State Controller's website 1,007,483 FY01 4.91 1.0491 1.77 1.0177 1.067669 1,075,658 FY02 7.82 1.0782 1.97 1.0197 1.099441 1,182,622 FY03 -1.27 0.9873 2.57 1.0257 1.012674 1,197,611 FY04 2.31 1.0231 6.94 1.0694 1.094103 1,310,310 FY05 3.28 1.0328 2.31 1.0231 1.056658 1,384,549 FY06 5.26 1.0526 1.95 1.0195 1.073126 1,485,795 FY07 3.96 1.0396 3.86 1.0386 1.079729 1,604,255 FY08 4.42 1.0442 4.74 1.0474 1.093695 1,754,566 FY09 4.29 1.0429 2.53 1.0253 1.069285 1,876,131 FY10 0.62 1.0062 1.3 1.0130 1.019281 1,912,304 FY11 -2.54 0.9746 1.05 1.0105 0.984833 1,883,301 FY12 2.51 1.0251 0.59 1.0059 1.031148 1,941,962 FY13 3.77 1.0377 0.65 1.0065 1.044445 2,028,273 FY14 5.12 1.0512 0.88 1.0088 1.060451 2,150,883 FY15 -0.23 0.9977 0.47 1.0047 1.002389 2,156,022 FY16 3.82 1.0382 0.54 1.0054 1.043806 2,250,469 County percent change as is higher than City of Waterford City percent change as is higher than the County

Subject to Appropriation Limit Secured and Unsecured Property Taxes 305,000.00 Supplemental Secured and Unsecured 23,000.00 Other property taxes 11,500.00 Sales and Use Tax 425,000.00 Sales Tax in-lieu 121,000.00 Business License Taxes 17,500.00 Utility Users Taxes 570,000.00 Property taxes in lieu of motor vehicle 567,887.00 Total subject to the appropriations limit 2,040,887.00

Appropriations limit 2,150,883

$ Difference 109,996.17

% Difference 5% General Business 5f June 18, 2015 Matt Erickson, Public Works Director City Council Staff Report

Authorize the Advertisement of Bids for the Bentley/Tim Bell Road Overlay Project

SUMMARY: The council will consider authorizing the advertisement of bids for the Bentley, F Street, and Tim Bell Road Overlay project.

FISCAL IMPACT: The Engineers estimate for construction is $ 400,000. Regional Surface Transportation Program (RSTP) funding $400,000.

ANALYSIS: The city has received an allocation of Regional Surface Transportation Program (RSTP) funding for the Bentley, F Street, and Tim Bell Road Overlay Project. The necessary construction plans and specifications have been finalized and the project is at the stage where it is appropriate to send out a notice to contractors soliciting bids.

This project is scheduled to begin construction in the summer of 2015 and will bring curb ramp improvements as well as a street overlay to Bentley St from I St to F St, F St from Yosemite to Bentley, and Tim Bell Road from Vineyard Rd to El Pomar Rd.

ENVIRONMENTAL REVIEW: Completed NEPA Categorical Exemption signed May 11, 2015.

ATTACHMENTS:  Resolution 2015-51  Bid Summary  Project Location Map  Project Contract

WATERFORD CITY COUNCIL RESOLUTION 2015-51

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD APPROVING PROJECT PLANS AND CONTRACT AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE F STREET, BENTLEY STREET AND TIM BELL ROAD OVERLAY PROJECT

WHEREAS, project summary has been prepared under the direction of the City Engineer for the F Street, Bentley Street and Tim Bell Road Overlay Project; and,

WHEREAS, the City Council of the City of Waterford finds it to be in the public interest to approve said project summary, and authorize the advertisement of bids.

NOW, THEREFORE BE IT RESOLVED, THAT THE CITY COUNCIL OF THE CITY OF WATERFORD, HEREBY RESOLVES AS FOLLOWS:

Section 1. That the project summary prepared under the direction of the City Engineer is attached hereto as Exhibit “A”; and Contract attached hereto as Exhibit “B” regarding the F Street, Bentley Street and Tim Bell Road Overlay Project, which has been placed on file in the office of the City Clerk, referenced as E Street Project is hereby approved.

Section 2. That the City Engineer is hereby authorized to advertise for bids for the F Street, Bentley Street and Tim Bell Road Overlay Project in accordance with applicable state law.

PASSED AND ADOPTED by the Waterford City Council at a regular meeting held on the 18th day of June, 2015 by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

City of Waterford,

Michael Van Winkle, Mayor

ATTEST: APPROVED AS TO FORM:

Lori Martin, City Clerk Corbett J. Browning, City Attorney

BID AUTHORIZATION REQUEST SUMMARY

Project Name: BENTLEY STREET, F STREET AND TIM BELL ROAD PAVEMENT REHABILITATION

Proposed Advertisement Date: July 1, 2015

Proposed Bid Date: July 30, 2015

Estimated Construction Schedule: September – October 2015

Engineer’s Estimate: $300,000

Funding Sources: Regional Surface Transportation Program (RSTP)

Project Location: Bentley Street (from I St. to F St.), F Street (from Bentley St. to Yosemite Blvd.), and Tim Bell Road (from Bonnie Brae Ave. to El Pomar Ave.)

Project Description: Full reconstruction of roadway to include:  Fiberized micro‐surface overlay  Install or replace curb ramps and valley gutters  Pavement leveling and 2” overlay

InformationaI Items 7 June 18, 2015 Patricia Krause, Deputy City Clerk City Council Staff Report

Informational Items

SUMMARY: N/A

FISCAL IMPACT: N/A

ANALYSIS: All items under this category are considered for informational purpose only.

ATTACHMENTS:

 Item 7a – Business License Report - May 2015  Item 7b – Building Permit Reports – May 2015  Item 7c - Parks and Recreations Minutes  Item 7d – Community Calendar – June and July 2015

BUSINESS LICENSE REPORT - MAY 2015

BUSINESS NAME TYPE OF BUSINESS NO LONGER IN LOCATION ADDRESS LOCATION FEE AMT PAID BUSINESS CATEGORY BUSINESS CITY DATE

APPLEGATE TEEPLES DRILLING, CONSTRUCTION EXTERNAL 4221 BREWMASTER DR. #12 CERES $50.00 5/18/2015 CO. INC. SERVICES BUSINESS

CALIFORNIA BUILDING GENERAL CONSTRUCTION/C P.O.BOX 1684 MODESTO $63.50 5/18/2015 STRUCTURES CONTRACTOR ONTRACTOR/MAN UFACTURING

COMCAST BUSINESS PROVIDING EXTERNAL 1701 J.F.K. BOULEVARD, 32ND PHILADELPHIA $51.00 5/5/2015 COMMUNICATIONS, LLC BUSINESS BUSINESS COMMUNICATION SERVICES

MANN ELECTRIC ELECTRICAL EXTERNAL 454 S. CENTER ST. TURLOCK $51.00 5/18/2015 CONTRACTING BUSINESS

MCM PLUMBING PLUMBING EXTERNAL 790 Marian Ct. Merced $37.50 5/15/2015 BUSINESS

W.C. MALONEY, INC. WRECKING AND EXTERNAL 4020 NEWTON RD. STOCKTON $51.00 5/18/2015 SITE CLEARING BUSINESS CONTRACTOR

WATERFORD HIGH SCHOOL FIREWORKS BOOTH MISC 195 N. PASADENA WATERFORD $200.00 5/28/2015 BOOSTERS

Tuesday, June 09, 2015 Page 1 of 2 BUSINESS NAME TYPE OF BUSINESS NO LONGER IN LOCATION ADDRESS LOCATION FEE AMT PAID BUSINESS CATEGORY BUSINESS CITY DATE

WATERFORD JR. WILDCATS FIREWORKS BOOTH MISC 424 F STREET WATERFORD $200.00 5/28/2015 WRESTLING CLUB

WATERFORD SABERCATS FIREWORKS BOOTH MISC 12173 YOSEMITE BLVD WATERFORD $200.00 5/28/2015

Tuesday, June 09, 2015 Page 2 of 2 City of Waterford - Building Permits Issued for MAY 2015

Permit # 3944 Work Address: 13381 Welch St. Paid: 5/11/2015 Work Performed: Stucco exterior of house Project Value: $2,500.00 Total Fees: $195.00

Owner Info Contractor Info David Alvarez Self 13381 Welch St. Waterford, CA 95386

License #

Permit # 3972 Work Address: 409 A St. Paid: 5/4/2015 Work Performed: 10x20 Green house Project Value: $2,000.00 Total Fees: $125.00

Owner Info Contractor Info Steve Welch Self 409 A St. Waterford, CA 95386

License #

Permit # 3973 Work Address: 13818 Skyline Blv. Paid: 5/21/2015 Work Performed: Replace water heater Project Value: $750.00 Total Fees: $125.00

Owner Info Contractor Info James Muellerleile All Valley Plumbing 13818 Skyline Blv. 3345 Seldon Ct., Unit B Waterford, CA 95386 Fremont, CA 94539

License # 794890

Permit # 3974 Work Address: 13367 Yosemite Blv. Paid: 5/18/2015 Work Performed: Tractor & Implement storage & Tower antenna Project Value: $4,800.00 Total Fees: $497.75

Owner Info Contractor Info James Ude Self 13367 Yosemite Blv. Waterford, CA 95386

License #

Tuesday, June 09, 2015 Page 1 of 6 City of Waterford - Building Permits Issued for MAY 2015

Permit # 3976 Work Address: 13702 Brook Way Paid: 5/15/2015 Work Performed: Residential 7.02 kwDC, roof mounted solar Project Value: $15,514.00 Total Fees: $398.00

Owner Info Contractor Info William Vanoy Solar City 13702 Brook Way 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Permit # 3977 Work Address: 12174 Chad Lane Paid: 5/12/2015 Work Performed: Re Roof Project Value: $4,000.00 Total Fees: $125.00

Owner Info Contractor Info Tricia Hopper-Higle Self 12174 Chad Lane Waterford, CA 95386

License #

Permit # 3978 Work Address: 12106 Pecan Ave. Paid: 5/11/2015 Work Performed: Install new gas line Project Value: $2,000.00 Total Fees: $125.00

Owner Info Contractor Info Martha Haro MCM Plumbing 12106 Pecan Ave. 790 Marina Ct. Waterford, CA 95386 Merced, CA 95341

License # 1002279

Permit # 3979 Work Address: 13324 Bentley St. Paid: 5/15/2015 Work Performed: Residential 3.12 kw DC, roof munted solar Project Value: $6,805.00 Total Fees: $398.00

Owner Info Contractor Info Gustavo Jimenez Solar City 13324 Bentley St. 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Tuesday, June 09, 2015 Page 2 of 6 City of Waterford - Building Permits Issued for MAY 2015

Permit # 3980 Work Address: 12749 Goldmine Ave. Paid: 5/15/2015 Work Performed: Residential 5.46 kwDC roof mounted solar Project Value: $12,067.00 Total Fees: $398.00

Owner Info Contractor Info Maria Ibarra Solar City 12749 Goldmine Ave. 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Permit # 3981 Work Address: 12145 Washburn Ave. Paid: 5/15/2015 Work Performed: Residential 3.9 kw DC, roof mounted solar Project Value: $8,619.00 Total Fees: $398.00

Owner Info Contractor Info Ramon Galaviz Solar City 12145 Washburn Ave. 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Permit # 3982 Work Address: 12168 CHAD LN. Paid: 5/18/2015 Work Performed: ROOF - CHANGE OLD SHINGLES TO NEW ASPHALT Project Value: $7,500.00 SHINGLES Total Fees: $125.00

Owner Info Contractor Info PAUL CODY SELF 2029 WATERFALL CT. MODESTO, CA 95355

License #

Permit # 3983 Work Address: 516 E STREET Paid: 5/15/2015 Work Performed: RESIDENTIAL 7.28 KW DC, ROOF MOUNTED SOLAR Project Value: $16,088.00 Total Fees: $398.00

Owner Info Contractor Info MANUEL HERNANDEZ SOLAR CITY 516 E STREET 3055 CLEARVIEW WAY WATERFORD CA 95386 SAN MATEO CA 94402

License # 888104

Tuesday, June 09, 2015 Page 3 of 6 City of Waterford - Building Permits Issued for MAY 2015

Permit # 3984 Work Address: 12509 MAIN ST. Paid: 5/15/2015 Work Performed: RESIDENTIAL 9.36 KW DC, ROOF MOUNTED SOLAR Project Value: $20,686.00 Total Fees: $398.00

Owner Info Contractor Info JAY A. MEDLOCK SOLAR CITY 12509 MAIN ST. 3055 CLEARVIEW WAY WATERFORD CA 95386 SAM MATEO CA 94402

License # 888104

Permit # 3985 Work Address: 330 AMY LN. Paid: 5/15/2015 Work Performed: RESIDENTIAL 7.28 KW DC, ROOF MOUNTED SOLAR Project Value: $16,088.00 Total Fees: $398.00

Owner Info Contractor Info MARIA J. MENDOZA SOLAR CITY 330 AMY LN. 3055 CLEARVIEW WAY WATERFORD CA 95386 SAN MATEO CA 94402

License # 888104

Permit # 3986 Work Address: 12215 QUICKSILVER ST. Paid: 5/15/2015 Work Performed: RESIDENTIAL 5.2 KW DC, ROOF MOUNTED SOLAR Project Value: $11,492.00 Total Fees: $398.00

Owner Info Contractor Info GERARDO GONZALEZ SOLAR CITY 12215 QUICKSILVER ST. 3055 CLEARVIEW WAY WATERFORD CA 95386 SAN MATEO CA 94402

License # 888104

Permit # 3988 Work Address: 121 CENTER ST. Paid: 5/18/2015 Work Performed: TEAR OFF WOOD SHAKE ROOF, SOLID SHEET & RE-ROOF Project Value: $9,250.00 WITH GAF LIFETIME COMP Total Fees: $125.00

Owner Info Contractor Info JOYCE RORABOUGH NUSHAKE INC. 121 CENTER ST. 319 S. PARALLEL AVE. WATERFORD CA 95386 RIPON CA 95366

License # 420175

Tuesday, June 09, 2015 Page 4 of 6 City of Waterford - Building Permits Issued for MAY 2015

Permit # 3989 Work Address: 110 H STREET Paid: 5/20/2015 Work Performed: MODULAR SET ON CONCRETE PILLARS, ELECTRICAL TO Project Value: $5,000.00 BE CONNECTED TO WATERFORD AUTO REPAIR Total Fees: $195.00

Owner Info Contractor Info FELIPE CHAVEZ 2433 MERLE AVE. MODESTO CA 95355

License #

Permit # 3991 Work Address: 324 C STREET Paid: 5/20/2015 Work Performed: RESIDENTIAL 4.42 KW DC, ROOF MOUNTED SOLAR Project Value: $9,768.00 Total Fees: $398.00

Owner Info Contractor Info NICOLA VANDYKE SOLAR CITY 324 C STREET 3055 CLEARVIEW WAY WATERFORD CA 95386 SAN MATEO CA 94402

License # 888104

Permit # 3992 Work Address: 201 COASTAL LN. Paid: 5/27/2015 Work Performed: 4.050 KW DC ROOF MOUNT SOLAR SYSTEM (15) Project Value: $31,500.00 MODULES & (15) INVERTERS Total Fees: $398.00

Owner Info Contractor Info CAMILLE & DORIS COLBY SYNTROL PLUMBING HEATING 201 COASTAL LN. 2120 MARCH RD. #A WATERFORD CA 95386 ROSEVILLE CA 95747

License # 728304

Permit # 3993 Work Address: 296 Day Flower Paid: 5/22/2015 Work Performed: Solar Project Value: $15,000.00 Total Fees: $398.00

Owner Info Contractor Info Brian Main Cliff Acosta 296 Day Flower 3812 Green Jade Ct. Waterford, CA Modesto, CA 95355

License # 991352

Tuesday, June 09, 2015 Page 5 of 6 City of Waterford - Building Permits Issued for MAY 2015

Permit # 3996 Work Address: 12106 HERNANDEZ Paid: 5/22/2015 Work Performed: REMOVE AND REPLACE ROOF Project Value: $4,000.00 Total Fees: $125.00

Owner Info Contractor Info RODNEY MORRIS L&S ROOFING 12106 HERNANDEZ 2001 6TH STREET WATERFORD CA 95386 CERES CA 95307

License #

Permit # 3998 Work Address: 206 River Pointe Dr. Paid: 5/28/2015 Work Performed: in ground pool Project Value: $30,000.00 Total Fees: $398.00

Owner Info Contractor Info Lois Rice Self 206 River Pointe Dr. Waterford, CA 95386

License #

Totals $235,427.00

Misc Permits 12 Multiples: 0 Comm Multiples: 0 New Dwelling 0 Commercial: 0 Building Permit Fee: $6,400.00 Plumbing Price Fee: $0.00 Electrical Fee: $0.00 Plan Check Fee: $98.75 SMIP Fee: $40.00 Sewer Fee: $0.00 Park Land : $0.00 Admin Fee: $0.00 County Impact $0.00 City Impact $0.00 CBSC: $26.00

Tuesday, June 09, 2015 Page 6 of 6 City of Waterford - May 2015 Finalized Permits

Permit # 3672 Work Address: 13100 SNOWFLOWER RD Finaled: 5/26/2015 Work Performed: REROOF Project Value: $8,000.00 Total Fees: $125.00

Owner Info Contractor Info MARVIN BITZER OAKDALE ROOFING INC 13100 SNOWFLOWER RD PO BOX 2524 WATERFORD/CA/95316 TURLOCK/CA/95381

License # 664526

Permit # 3852 Work Address: 513 N. WESTERN Finaled: 5/12/2015 Work Performed: REPLACE FURNACE AND A/C WITH NEW SYSTEM Project Value: $5,000.00 Total Fees: $250.00

Owner Info Contractor Info JANELLE WILLIAMS DEREK SAWYERS SMART ENE 513 N. WESTERN 1120 DOKER DR. STE 2 WATERFORD CA 95386 MODESTO CA 95351

License # 967903

Permit # 3907 Work Address: 12013 YOSEMITE Finaled: 5/22/2015 Work Performed: REPLACING ELECTRICAL PANEL Project Value: $850.00 Total Fees: $125.00

Owner Info Contractor Info RAFAEL CASTILLO BRAN HOMES 1418 J STREET 1418 J STREET MODESTO CA 95354 MODESTO CA 95354

License #

Permit # 3913 Work Address: 12013 YOSEMITE BLVD Finaled: 5/22/2015 Work Performed: REPLACING WATER HEATER PLUMBING, HOTWIERE Project Value: $1,000.00 SMOKE DETECTORS Total Fees: $125.00

Owner Info Contractor Info CENTRAL CAL INVESTMENTS BRAN HOMES 1418 J STREET 1418 J STREET MODESTO CA 95354 MODESTO CA 95354

License # 996768

Tuesday, June 09, 2015 Page 1 of 4 City of Waterford - May 2015 Finalized Permits

Permit # 3914 Work Address: 13367 YOSEMITE BLVD Finaled: 5/18/2015 Work Performed: ROOF MOUNT RESIDENTIAL PV SOLAR 3KW Project Value: $10,500.00 Total Fees: $398.00

Owner Info Contractor Info JAMES UDE SKYLINE ENERGY SERVICES 13367 YOSEMITE BLVD 2611 HIGHLAND HILLS DR. WATERFORD CA 95386 EL DORADO HILLS CA 95762

License # 549017

Permit # 3942 Work Address: 13100 SNOW FLOWER DR. Finaled: 5/26/2015 Work Performed: REPLACING 2.5 TON CONDENSER Project Value: $2,300.00 Total Fees: $125.00

Owner Info Contractor Info MARVIN BITZER JOHN DECKER CONSTRUCTIO 13100 SNOWFLOWER DR. 3867 E. SERVICE ST. WATERFORD, CA 95386 CERES, CA 95307

License # 617711

Permit # 3945 Work Address: 13184 Heather Dr. Finaled: 5/15/2015 Work Performed: Residential 4.16 kw roof mounted solar Project Value: $9,193.00 Total Fees: $398.00

Owner Info Contractor Info Steve Miranda Solar City 13184 Heather Dr. 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Permit # 3947 Work Address: 12301 1st Street Finaled: 5/18/2015 Work Performed: Residential 6.75 kw DC roof mounted solar Project Value: $14,917.00 Total Fees: $398.00

Owner Info Contractor Info James Mc Cullough Solar City 3055 Clearview Way Waterford, CA 95386 San Mateo,CA 94402

License # 888104

Tuesday, June 09, 2015 Page 2 of 4 City of Waterford - May 2015 Finalized Permits

Permit # 3951 Work Address: 415 Tisdell Dr. Finaled: 5/19/2015 Work Performed: 5.46 kw DC, roof mount solar Project Value: $12,066.00 Total Fees: $398.00

Owner Info Contractor Info Sandra Anglin Solar City 415 Tisdell Dr. 821 Oates Ct, Suite 300 Waterford, CA 95386 Modesto, CA 95358

License # 888104

Permit # 3953 Work Address: 224 Becky Way Finaled: 5/5/2015 Work Performed: 2.6 kw pv array roof moounted Solar Project Value: $5,746.00 Total Fees: $398.00

Owner Info Contractor Info Martha Alvarado Solar City 224 Becky Way 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Permit # 3956 Work Address: 1000 Brigadoon Ln. Finaled: 5/5/2015 Work Performed: Residential roof mounted solar Project Value: $5,746.00 Total Fees: $398.00

Owner Info Contractor Info Salvador Lozano Solar City 1000 Brigadoon Ln. 3055 Clearview Way Waterford, CA 95386 San Mateo, CA 94402

License # 888104

Permit # 3967 Work Address: 12077 Hildreth Drive Finaled: 5/19/2015 Work Performed: Replace 2-ton HVAC Split System Project Value: $4,500.00 Total Fees: $125.00

Owner Info Contractor Info Keith Wingo Grupe Home Star 12077 Hildreth Drive 3255 W. March Lane Waterford, CA 95386 Stockton, CA 95219

License #

Tuesday, June 09, 2015 Page 3 of 4 City of Waterford - May 2015 Finalized Permits

Permit # 3988 Work Address: 121 CENTER ST. Finaled: 5/26/2015 Work Performed: TEAR OFF WOOD SHAKE ROOF, SOLID SHEET & RE-ROOF Project Value: $9,250.00 WITH GAF LIFETIME COMP Total Fees: $125.00

Owner Info Contractor Info JOYCE RORABOUGH NUSHAKE INC. 121 CENTER ST. 319 S. PARALLEL AVE. WATERFORD CA 95386 RIPON CA 95366

License # 420175

Permit # 3993 Work Address: 296 Day Flower Finaled: 5/22/2015 Work Performed: Solar Project Value: $15,000.00 Total Fees: $398.00

Owner Info Contractor Info Brian Main Cliff Acosta 296 Day Flower 3812 Green Jade Ct. Waterford, CA Modesto, CA 95355

License # 991352

Permit # 3996 Work Address: 12106 HERNANDEZ Finaled: 5/28/2015 Work Performed: REMOVE AND REPLACE ROOF Project Value: $4,000.00 Total Fees: $125.00

Owner Info Contractor Info RODNEY MORRIS L&S ROOFING 12106 HERNANDEZ 2001 6TH STREET WATERFORD CA 95386 CERES CA 95307

License #

Totals

Misc Permits 13 Multiples: 0 Comm Multiples: 0 New Dwelling 0 Commercial: 0

Tuesday, June 09, 2015 Page 4 of 4

6/12/2015 Events for June 2015 | City Of Waterford

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Lions Club City Council Board Meeting Meeting

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Waterford 4H Ministerial WUSD School Meeting Society Board

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Movie Night at Lions Club VFW #9679 City Council Waterford River the Museum Board Meeting Meeting Meeting Park Committee

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