Town of Mammoth Lakes Response to the Final Report of the 2017-2018 Mono County*

- The Town agrees in part with this finding. While the Town has not performed an audit of the calculations during the last few years, the Town has established an expected budget process that confirms total revenue. With no variance to this revenue stream, staff had a degree of confidence in the revenue calculation.

- The Town agrees with this finding. The contract states the agreed upon charge of $.32 per gallon at the time of contract (5/26/2004). This rate was to be charged to all suppliers using the backbone system. Furthermore, this transport fee was to be adjusted once each three years based on two-thirds of the inflation rate realized in the consumer price index since last adjustment. The Town has not been actively monitoring the franchise agreement and corresponding elements.

- The Town agrees with this finding. The agreement calls for an emergency response plan to be developed in form of and meeting the requirements of Federal and State law and the Mammoth Lakes Fire Protection District and be submitted to the Town on an annual basis. While some work was initiated for the purpose, it has not been completed to our satisfaction, as the Town staff's efforts to elicit an appropriate response from AmeriGas have not been successful. The Town has not been actively monitoring the franchise agreement and corresponding elements in as aggressive a manner that is apparently necessary.

– The Town does not agree with this finding. The Town is unable to determine if AmeriGas provided updated as-built plans for utility lines they acquired during their purchase of the infrastructure. According to the contract, these plans were to be submitted by the Grantee after the completion of permitted work. Since this requirement would have occurred in 2004, we are unable to determine if it was satisfied. Since it was part of the newly minted agreement and a requirement to sign off on completion of the permit, the Town assumes it was completed. The Town does note that regular updates to as-built plans have not been provided to our satisfaction in recent years. 4

- The Town agrees in part with this finding. There is no requirement in the franchise agreement for the Grantee to annually submit changes to plans and/or reports of their inventory of facilities to the Town Engineer. As noted above, Town staff has been working to get regular updates to as-built plans, which have not been provided to our satisfaction in recent years. Town staff's efforts to elicit an appropriate response from AmeriGas have not been successful. The Town has established communication with AmeriGas Assistant Area Director to establish quarterly meetings between AmeriGas and the Town to resolve these discrepancies.

- The Town agrees in part with this finding. The Town has previously acknowledged under Finding #2 that it has not monitored the charges imposed by AmeriGas on other suppliers who may utilize the system backbone. The Town also contends that the nature of this franchise agreement and its requirements has a positive benefit to the town and other franchisees to utilize one system and prevent redundancy in our underground systems.