AgdaPkt 2018-12-17 Joint Special

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6.G. - Pagf Redwood 187 City Notes to the Basic Financial Statements For the fiscal year ended June 30, 2018 NOTE 15 - LITIGATION AND CONTINGENT LIABILITIES (CONTINUED) The City is involved in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of management and legal counsel, that the resolution of these matters will not have a material adverse effect on the City's financial statements. In the opinion of the City Attorney, the City has adequate legal defenses and/or reserves to cover such liability if it does arise. The City has received various state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursement will not be material. NOTE 16 - CONSTRUCTION, OTHER SIGNIFICANT COMMITMENTS AND ENCUMBRANCES As of June 30, 2018, the City has the following significant commitments: $ 713,785 - Professional services related to Planning Cost Recovery $ 5,577,449 - Professional services related to 101/84 Highway Interchange $ 593,206 - Professional services related to Safe Routes to School $ 1,354,451 - Professional services related to Storm Drain Collection System Construction Purchase orders are issued throughout the fiscal year to encumber the budgets in the governmental funds. Following are the outstanding encumbrances as of June 30, 2018: Major Funds: $ General Fund 1,228,794 Capital Outlay Fund 3,545,425 Total Major Funds 4,774,219 Non -Major Funds 9,496,785 Total Encumbrances 14,271,004 NOTE 17 - SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY The City is a member of the South Bayside Waste Management Authority (SBWMA), a joint powers authority established to purchase the solid waste transfer station located in San Carlos, California from Browning-Ferris Industries. Currently there are 12 public entities that are members of this organization. Each of these members also, by individual and separate legislative action, has entered into a franchise agreement with Recology for solid waste collection within their respective jurisdictions. The SBWMA issued $20 million in bonds in 1999 to provide funds for the purchase of the transfer station. The debt issued by the SBWMA is not an obligation of any of the member entities. During FY 2009-10, SBWMA issued $58.5 million in bonds to finance improvements at the solid waste transfer station, and the remaining balance of the 1999 bonds were retired. The SBWMA also serves as a regional forum for member entities to collectively pursue other solid waste management matters such as rate setting, solid waste reduction, and meeting recycling goals as required by state law. 90 296